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Importance of Financial Literacy. Why it is a must have today

Importance of Financial Literacy.


One of the main concern is Financial literacy in this present situation, as it is directly affects the country’s economic development. India stands way behind in financial literacy level comparing to other countries. As per the media reports, India accounts for nearly 20% of the world’s population, but 76% of India’s adult population is not even mindful of the simple financial theories. It discloses that financial literacy is very low in India vs. the rest of the world.


Financial literacy, like other developed nations, has still not been a priority in India. The lack of basic financial knowledge contributes to deprived investment and decision-making. Thus a maximum of Indian people invest in plans which have short maturity and physical assets to achieve their personal goals, which offer fewer benefits and do not contribute to the country’s economic growth.


As per the media reports, nearly 76% of Indian adults do not grasp the fundamental financial principles and are thus financially illiterate. The studies suggest that India always had a low rate of financial literacy relative to the rest of the world. In fact, we are still far behind other countries and now is the time for developing countries like India to realize the value of financial literacy.


Why it is Important?

It is important because it will help us to know how money is to be invested and handled and how it can be used in ways that makes a person financially more secure in the future.

Justification for its importance is as follows:


Value of money:

Firstly, it is very imperative for all of us to know the value of money. This will help us to handle our finances efficiently. Financial literacy will teach us the importance of saving and appropriately budgeting the funds. We should not waste our money on unnecessary and expensive products. We can understand better, the difference between our wishes and needs and we should prioritize things in our daily lives according to our quintessence.


Keep the Debt in Control:

Being financially literate will help us to have a proper check-in our debt. Too much debt will make us profoundly troubled. If we are financially competent, we can decide how debt can be afforded and will be able to pay off timely, especially if we have mortgage and insurance bills. This will teach us to plan for the education and future needs of our children as well as medical and hospital expenses without the need to lend money.


Imparting financial Knowledge among Youngsters:

Being financially aware will enable us to protect the future of the coming generation. We should teach them how to make budgets and save for years to come. They will also understand how their parents work hard to fulfill all their needs, even at their young age. In making them understand the importance of financial literacy, responsibility and reverence for their parents will also be taught. This will also help them realize that they will be financially secure as soon as they age. Imparting financial knowledge will help them to be more responsible and street-smart.


To be ready for any kind of uncertainties and to add other income streams:

We face emergencies that need cash, or resources to sustain or overcome our financial and emotional crises. In times like these, being financially educated saves us the trouble of borrowing money, which only brings us more problems. Financial literacy will benefit us to invest in stocks and develop more income sources besides our salaries. The creation of multiple revenue streams gives us the buoyancy that financial crises can survive.


Assistance in old-age:

If you are financially literate at a young age, you will be stress-free for the rest of the life, as all the provisions to secure the future would be initiated earlier itself. An appropriate retirement and pension plan at the age to 30 will be rewarding for an entire life.


Works as a helping hand:

If we spend a certain amount of money for instance we invest in stocks, we assist the company’s business to expand. This will generate more jobs and will help the company to generate more profits. This results in improving jobs and helps to create a more progressive nation. Being financially stable gives us the opportunity to share our blessings with the poor. Helping others brings us an overwhelming feeling of fulfillment.



How co-working spaces can restart post lock down.

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Trends transforming the automotive industry.

Trends transforming the automotive industry.


The automobile market is undergoing a profound transition in terms of its far-reaching effect on business and its customers. This estimates the structural transformation of the automobile sector in terms of timescale, complexity, and quantity. One of the industries that has been under extreme stress over the past two years is heading for another turbulent year of falling revenue, growing costs, and ever-present government regulations. Driving is going to be convenient, simpler, cheaper, and safer. At the very same point, the revolution in personal transportation will push the automobile industry to redefine itself to some degree.



The move to emission-free transition will become a universal necessity. Electric power used to power cars will gradually come from renewable power to maintain carbon dioxide-free mobility. The shift to emission free human autonomy will not be feasible without the electrification of the running rail. Firstly, there is the problem of local materials. The reality is that vehicles are still producing very small amounts of toxic contaminants, noise, and air pollution. It also suggests that the emission-free effort will be a regional one. The energy used to power cars should come from green sources to guarantee CO2-neutral mobility. After all, the vehicles of tomorrow will not only be a subject of mutual and autonomous proportions but will also be wired and electrified. Owing to the accelerated growth of electric cars, it can be concluded that the overwhelming majority of automobiles will be e-vehicle.



The development of cars that do not need human interaction will reduce the usage of shared transportation systems and give personal transportation to different consumer groups. The exponential advances made in fields such as machine learning and artificial intelligence make it easier to accomplish that appeared impossible – i.e. the creation of automated cars, which do not need human interaction except in complicated traffic scenarios. This will redefine the usage of human mobility channels. It is probably attribute to the reality that the electrified and autonomous aspects are equally compatible. The proportion of shared and automated vehicles in the total road network will improve dramatically.


Car sharing:

Properly operated fleets of autonomous cars can lower the cost of transport dramatically by allowing more effective usage of costly mobile infrastructure. Over several years, many metropolitan areas have provided car-sharing services. Although, these are still mostly conducted as pilot projects or citizens’ programs. Exchanging ideas may become commercially feasible with the advent of automated vehicles. It will no longer be appropriate to look for a shared car in the local area. It will be possible to request vehicles anywhere the customer might be via a flexible on-demand platform. Although, station-based ride-sharing indicates that cars will only be obtained from predefined locations. The region of distribution for car-sharing represents the supplier’s market field. Ride-hailing is about taking a ride. This definition is increasing in prominence and will no longer be considered a fringe trend.


Demand for smaller cars:

Possible pay reductions, work shortages, declining wages, and no incentives will all cause Indian customers to be suspicious of investing mega-money on new cars. After the lock down is removed, the market for smaller cars like Tiago, Santro, Celerio, and WagonR, etc. will rise. Citizens will usually be suspicious of commuting through public transit if and when they are accessible to the public because of worries of being infected. They will like to drive in their automobiles and will opt to purchase a 2-wheeler or smaller vehicle without needing to pay so much on luxury SUVs, hatchbacks, or sedans. Maruti Suzuki will be the major winner of all of this and will undoubtedly improve its market share by new product releases and price cuts to target the middle-class community.


Used cars:

Used vehicles will be the kind of the post-COVID-19 world. A survey revealed that the inquiries for pre-own vehicles multiplied during the lock down time frame. Purchaser viewpoint appeared to be more rounded among the individuals who enquired about used vehicles. 77% of them were happy to proceed with their buy after the lock down. It was noticed that an impressive level of respondents liked to purchase old vehicles because of budget restrictions. The used car would profit most as people switching from a public vehicle to a private vehicle. With India’s auto industry is facing depression for more than a year and the Covid-19 shutdown now expected to deepen and the financial pressure of the mid-income class, used cars might end up being a go-to option.


Online portal:

The auto sector registered a major decrease in sales due to COVID-19 and BSVI. In the past few months, several automotive makers have switched to the online platform to improve demand. Hyundai, Honda, BMW, Maruti Suzuki, and others consider that this is an opportunity to reach out to potential customers as additional support to dealers. Automobile manufacturers are offering schemes to help customers easily buy their vehicle in the middle of the lock down. Auto OEMs try to concentrate further on the digital world to boost demand. Most dealerships and retailers will focus on expanding their digital presence, providing pick-up and delivery of cars for service and sale, and giving consumers a smooth shopping interface to achieve loyalty.



Importance of Financial Literacy.

Equity Right

How to invest in Insurance sector with tax planning.

How to invest in Insurance sector with tax planning.


Investment in insurance tools is a major part of everyone’s investment planning exercise. Although, it is important for people to be covered by certain risks, it is equally important that they buy insurance in which they accomplish their long term financial goals and helps them in tax planning. In recent years, the insurance sector has been at the forefront since the government opened it for private companies. Private insurers launched many new products and a healthy competition. This is good for investors because they have more options and a range of investments, but on the other hand it’s just as bad as it creates more uncertainty and the possibility of losing money occasionally.


All insurance products have their own pros and cons, so before making an investment decision investors should carefully understand all the aspects of the policy. Diversification and the development of a multi-product portfolio is one way to fix this challenging situation. Investors need to have knowledge of the various insurance products offered in the market and the positive or negative implications of these products. A stable insurance basket should contain Life Insurance cover, Medical Insurance cover, and Retirement/ Pension plans.


Life insurance:

The policy is available in 3 broad categories viz. endowment plans, life insurance plans, i.e. term plans and ULIPs. Endowment policies provide insurance and have some maturity returns. In this plan, maximum of the funds are invested in corporate bonds, Government securities, and various instruments from the money market. They deliver a healthy and stable return from 5% to 8%.


Term insurance is basically an insurance scheme. The premium covers the risk factor (mortality charges), revenue, and operating expenses in this package. This is why the premium paid for insurance policies is low as compared to the endowment plans. The premium charged in term insurance has no savings element and therefore no maturity benefits are paid to the individual.


Funds in the ULIPs scheme are mostly invested in the stock market and corporate bonds. The main distinction between ULIPs and standard insurance policies is the allocation of funds in stocks. These schemes pledge better maturity benefits, as stock markets have historically produced better returns over the long term. Nevertheless, investments in stocks are likely to lose money to a certain degree. Investors should opt for life insurance policies as soon as possible as age is one of the key determinants of the risk premium decision. As the income of an individual rises, they should increase their cover. It is normally said that the cover must be approximately 4 to 5 times of the annual income. An individual must fusion all three plans to limit the cash outflow and also to get the balance returns and reduce the risk.



Medical Insurance cover:

Medical compensation plans cover the massive medical expenses that occur in the care of an illness. As daily medical treatment is expensive, every person must have a medical insurance policy. Until accepting a policy, most health insurance plans do not cover chronic illnesses. It is therefore necessary to comprehend your medical policy in depth and invest early to offset the policy’s full grievances.



Future Provisions with Pension and retirement plans:

Insurance pension schemes offer life insurance to the investors when they are in the earning stage and monthly retirement benefits once they retire. ULPP is a type of pension plan where the funds are invested in market instruments. Investors can invest in ULPPs early, say at the age of 20, because they can afford to lose equity funds. Later, they can transfer their funds slowly into capital security schemes.



Tax planning:

While the majority think of tax planning as a process which reduces their tax liabilities, investing in the right instruments at the right time is also important in order to reach your financial goals as per your maturity period i.e. short, medium, and long. Basically, four different forms of tax planning exist.



Tax planning under Short Range:

It is a term used for tax preparation, which is used and conducted at the end of the financial year. Investors use this strategy to find ways to shrink their tax payments officially at the end of the financial year. Suppose if you decide at the end of the financial year that your taxes are high relative to the previous year, you might want to diminish it. Assessments can be done to get benefits under Section 88. Short-term tax planning does not require long-term obligations, though substantial tax savings can also be promoted.


Tax planning under Long Range:

The long range tax strategy is one that the taxpayer implements over the year. This policy does not provide immediate tax relief benefits as short-term plans do, but maybe beneficial in the long term. Typically you will begin investing at the start of the new financial year and continue to invest for a period of more than one year.


Tax planning under Permissive Measures:

Permissive tax planning means managing investments under different terms of India’s taxation legislation. There are various legal provisions in India that include exemptions, deductions, and benefits. Like Section 80C provides various types of exemption on tax savings investments.


Tax planning under Purposive Measures:

Purposive tax planning states planning of your investments for specific purposes thus ensuring that you can make the most of your investments. This includes the correct selection of investment instruments, the creation of an appropriate plan to substitute (if necessary), and Revenue and business assets diversification depending on your residential status.

In a nutshell, spending on Income tax is a moral and financial obligation which we all bear as citizens of India. The taxes we pay are used for our country’s growth. In a way, the taxes we pay are used for our benefit. According to the different income slabs, we each pay a different percentage of taxes, but all Indian people are entitled for the benefits equally.




Equity Right

Fertilizers, Steel, Cement, and Electricity. How these sectors performed in April 2020.

Fertilizers, Steel, Cement, and Electricity. How these sectors performed in April 2020.



The Fertilizers production observed a fall of 4.5% YoY to 2,748 thousand tones in April 2020. The price of UREA in April 2020 stood at USD $262/MT vs. at USD $248/MT in April 2019. Price of DAP in April 2020 stood at USD $393/MT vs. at USD $424/MT in April 2019. The price of MOP in April 2020 stood at USD $290/MT vs. at USD $240/MT in April 2019.The production of UREA in April 2020 stood at 18.25 LMT vs. 16.51 LMT in April 2019. The estimated target was 17.67 LMT. The imports in April 2020 was observed at 3.40 LMT vs. 1.75 LMT in April 2019. The availability of UREA in April 2020 stood at 25.89 LMT. However, the sales were observed at 20.24 LMT in April 2020 vs. 15.96 LMT in April 2019. The production of DAP in April 2020 stood at 2.60 LMT vs. 4.18 LMT in April 2019. The estimated target was 2.45 LMT. The import in April 2020 observed at 2.62 LMT vs. 5.38 LMT in April 2019. The availability of DAP in April 2020 stood at 12.09 LMT, however, the sales were observed at 6.95 LMT in April 2020 vs. 3.56 LMT in April 2019.



The Crude steel production stood at 2.752 MT in April 2020 vs. 9.021 MT in April 2019 with a fall of 69.5%. The Finished steel production stood at 1.346 MT in April 2020 vs. 8.753 MT in April 2019 with a fall of 84.6%. The consumption of steel witnessed a fall of 90.9% at 0.699 MT in April 2020 vs. 7.691 MT in April 2019. The Imports of Finished Steel stood at 407 thousand tones in April 2020 vs. 619 thousand tones in April 2019 with a decline of 34.3%. The Export of Finished Steel stood at 429 thousand tones in April 2020 vs. 516 thousand tones in April 2019 with a decline of 16.8%. The total sales turnover of steel from PSU unit in April 2020 from SAIL stood at 855 MT vs. 4537 MT with a fall of 81.2%. For RINL, in April 2020 it stood at 281 MT vs. 993 MT in April 2019 with a fall of 71.7%. For NMDC in April 2020, it stood at 400 MT vs. 750 MT in April 2019 with a fall of 46.7%. For MOIL in April 2020, it stood at 34.47 MT vs. 55.31 MT in April 2019 with a fall of 37.7%.



The cement sector production stood at 4,077 thousand tons with a decline of 86% in April 2020. It observed a fall of 25.08% compared to the preceding month. The yearly Index for fiscal year 2020 stood at 145.7 vs. 147 in FY19. Some insights of cement sectors is that India is on the 2nd position in production of cement all over the globe as of 31st December 2019. Cement production in FY20 amounted to 334.48 MT. The capacity of cement production is projected to reach 550 MT by 2020. 98% of the overall capacity is from the private sector and the rest from the public sector. Around 70% of India’s total cement output is produced by the top 20 firms. Forecast noted the cement industry will meet the demand of 550-600 MT annually by 2025 as a result of the growing demands from different divisions, such as residential, commercial, and industrial construction.



The Total Electricity generation in April 2020 stood at 81,538.34 GWH vs. 1,09,263.44 in April 2019 with a decline of 25%. In April 2020, electricity generation stood at 74% as compared to the same period in the previous year. The Electricity generation in April 2020 from nuclear category stood at 4,144.34 GWH vs. 3,287.32 GWH in April 2019 with an increase of 34.28%. In April 2020, electricity generation from nuclear category stood at 126% as compared to the same period in the previous year. The Electricity generation in April 2020 from the hydro category stood at 9,658.23 GWH vs. 11,072.61 GWH in April 2019 with a fall of 12.77%. In April 2020, electricity generation from the hydro category stood at 87.23% as compared to the same period in previous year.

The Electricity generation in April 2020 from Bhutan IMP category stood at 90.90 GWH vs. 239.70 GWH in April 2019 with a fall of 62.07%. In April 2020, electricity generation from the hydro category stood at 38% as compared to same period in previous year. The Electricity generation in April 2020 from Thermal category stood at 67,644.87 GWH vs. 94,663.81 GWH in April 2019 with a fall of 27.66%. In April 2020, electricity generation from Thermal category stood at 71% as compared to same period in previous year.


Core Data of Coal, Crude oil, Natural Gas and Refinery Products sector in April 2020.

Equity Right

How to choose the best mutual funds?

How to choose the best mutual funds?


Mutual fund is one of the best investment option for a regular investor, where investors can select and invest in a mutual fund scheme according to their financial goals and risk taking capability. However, an investor can directly invest or hire a mutual fund advisor. If an investor is investing directly, they will invest through direct plans of mutual fund scheme and if investor invests through a mutual fund advisor, they will invest in a regular plan of mutual fund scheme.


What are the various types of Mutual funds available to investors?


1. Equity mutual fund scheme – These funds are directly invested in stocks and returns depends on how these stocks perform over a period of time. These schemes give high returns but are very risky if invested for short term. Investors should invest for long term, at least for five to ten years. There are 10 types of equity mutual fund schemes available based on the capitalization and tenure such as Multi Cap funds, Large Cap funds, Large and Mid-cap funds, Mid Cap Funds, small cap funds, Dividend Yield Funds, Value Funds, Contra Funds, Focused Funds, Sectoral or thematic funds and Equity linked saving schemes (ELSS).


2. Debt mutual fund scheme – This MF scheme directly invests in Debt Securities. Investors who want to invest for short term i.e less than 5 years, should invest in these schemes. These schemes are less risky than equity schemes and provide modest returns. There are 16 debt mutual fund schemes based on tenure and returns such as Overnight Funds, Liquid Funds, Ultra short duration funds, low duration Funds, Money Market Funds, Short duration funds, Medium duration funds, Medium to long duration funds, Long duration Funds, Dynamic Bonds, Corporate bond funds, Credit Risk Funds, Banking and PSU funds, Gilt Funds, Gilt funds with ten years duration and Floater funds.


3. Hybrid mutual fund scheme – This scheme invests in debt and equity schemes. Investors can select these scheme based on their risk appetite. There are six hybrid mutual funds available based on the allocation and investment pattern such as Conservative hybrid Funds, Balanced Hybrid Funds, Aggressive hybrid Funds, Dynamic Asset Allocation, Multi Asset allocation, Arbitrage Funds and Equity Savings.


4. Solution oriented Scheme – These Schemes are especially for a particular solution or goal such as child’s education or retirement. However, they have mandatory lock in period of 5 years.



Mutual Fund Charges:

Total Expenses which a particular Mutual Fund incurred is known as Expense Ratio and this measures per unit cost of the funds managed. Generally, expense ratio is charged around 1.5 to 2.5 percent of the weekly (average) net asset of schemes.



How to select best Mutual Funds?


1. Know your financial goals and risk appetite – As an investor, one must first analyse his financial goals. Ask questions like, what they are looking for, short term or long term investment? Do they want to go for high risk, high return or low risk medium returns? For what purpose is money needed like retirement or any other specific purpose? Do they need money in near future? Or they want to invest for lock in period? By answering these questions, Investor will get a clear picture of their financial goals.


2. Compare the Expense RatioCost of owing some funds can be expensive so choose the lowest possible expense ratio. For example, if one fund has a cost of 0.50 percent while another has a cost of 1.5 percent as an expense ratio. Investors should choose according to the schemes and expense cost.


3. Avoid funds which have high turnoverIt is important to see turnover rate for funds, as it impacts the tax rate. It is basically a percentage of the portfolio that is brought and sold in a particular year. Usually, portfolio with more than 50 percent turnover carry higher tax rates.


4. Hire Disciplined Management Team – Fund manager should be selected on basis of the past record track and portfolio manager with high talent and experience team should be chosen.


5. Select No load Mutual FundThey are basically the fees, which are charged on assets (5% of assets usually). However, not all funds have charges. Investors should choose wisely, no load fund carry no charges and increases overall returns.


6. Check historical data and Diversify assets – investors should check historical data, reports and how they have evaluated them. Diversify whole portfolio, because in case an asset does not perform well due to some reasons, other asset class can balance them.



Some of the best mutual funds:

1. Nippon India US Equity Opportunities FundIt has an expense ratio of 1.5% and has given returns around 15% per annum in 5 years.

2. ICICI Prudential US Blue Chip Equity FundIts expense Ratio is 1.79% and returns of 13.81% Per annum in last 5 years.

3. DSP World Gold Fund – Expense Ratio 1.9% and Returns around 12.81% per annum.



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Coal, Crude oil, Natural Gas and Refinery Products. How these sectors performed in April 2020.

Coal, Crude oil, Natural Gas and Refinery Products. How these sectors performed in April 2020.



The production of coal in April stood at 47 MT with a fall of 15.46% vs 4% in March 2020. The imports of coal decreased by 29.1% at ₹18.65 MT in April 2020, whereas in April 2019 it stood at 26.34 MT. The fall in the month of April 2020 is due to rise of the pandemic. The coal imports observed a fall of 6.18% in April 2020 over the preceding month. Out of the total imports of coal in April 2020, the volume of non-coking coal stood at 13.05 MT vs. 13.6 MT in the preceding month whereas the volume of cooking imports coal stood at 3.3 MT in April 2020. The total coal import for FY20 stood at 247.1 MT vs. 235.35 MT in FY19, with an increase of 5%. The key coal consumption sector is struggling with poor demand as a result of the lock down and the low capacity of plants. This resulted in a decline of demand for coal. In order to raise coal demand, the government has announced a range of steps such as an expanded availability of dry fuel for linkage consumers. It has also announced a number of relief measures, including the power sector, for CIL consumers.


Crude oil:

The production of crude oil in April 2020 stood at 2.5 MT vs. 2.7 MT in April 2019 with a fall of 6.35%. The production in April was 1.44% less than the monthly target. The target was 2,583.03 TMT whereas production was of 2,545.81 TMT. Crude oil production by ONGC stood at 1,681.77 TMT in April 2020 vs. 1,690.78 TMT in April 2019 with a fall of 0.53%. It was less by 0.65% to achieve the monthly target of 1,692.83 TMT in April 2020. Crude oil production by Oil India Limited stood at 248.25 TMT in April 2020 vs. 250.52 TMT in April 2019 with a fall of 6.39%. It was less by 0.9% to achieve the monthly target of 250.52 TMT in April 2020. Crude oil production by PSC Fields stood at 615.80 TMT in April 2020 vs. 639.68 TMT in April 2019 with a fall of 19.25%. It was less by 3.73% to achieve the monthly target of 639.68 TMT in April 2020.


Natural Gas:

The production of Natural gas in April 2020 stood at 2,161.33 MMSCM vs. 2,655.89 MMSCM in April 2019 with a fall of 10.88%. The production in April was 10.88% less than the monthly target, the target was 2,425.32 MMSCM. Natural gas production by ONGC stood at 1,725.69 MMSCM in April 2020 vs. 2,037.71 MMSCM in April 2019 with a fall of 15.31%. It was less by 12.73% to achieve the monthly target of 1,977.42 MMSCM in April 2020. Natural gas production by Oil India Limited stood at 202.05 MMSCM in April 2020 vs. 224.49 MMSCM in April 2019 with a fall of 9.9%. It was less by 4.64% to achieve the monthly target of 211.88 MMSCM in April 2020. Natural gas production by PSC Fields stood at 233.59 MMSCM in April 2020 vs. 393.70 MMSCM in April 2019 with a fall of 40.67%. It was less by 1.03% to achieve the monthly target of 236.02 MMSCM in April 2020.


Refinery Products:

The production of Refinery products in April 2020 stood at 14,745.18 MT vs. 2,20,703.06 MT in April 2019 with a fall of 28.78%. The production in April was 22.01% less than the monthly target, the target was 18907.44 TMT. Refinery Products production by CPSE Refineries stood at 7,103.76 TMT in April 2020 vs. 11,263.33 TMT in April 2019 with a fall of 36.93%. It was less by 28.91% to achieve the monthly target of 9,992.36 TMT in April 2020. Refinery Products production by JV Refineries stood at 925.13 TMT in April 2020 vs. 1,721.66 TMT in April 2019 with a fall of 46.26%. It was less by 22.71% to achieve the monthly target of 1197 TMT in April 2020. Refinery Products production by Private Refineries stood at 6,716.28 TMT in April 2020 vs. 7,718.08 TMT in April 2019 with a fall of 12.98%. It was less by 12.98% to achieve the monthly target of 7,718 TMT in April 2020.



Weekly market update (26th May – 29th May).

Equity Right

Airport Authority of India provides new air travel guidelines.

Airport Authority of India provides new air travel guidelines.


The Minister of Civil Aviation has declared that domestic air operations will start in a structured format starting from 25th May. The Airport Authority of India (AAI) has released new guidance until the nation resumes air services. Stringent sanitation standards will be implemented at all airports while the airplanes restart all around the country. These instructions are provided by the Ministry of Aviation and is to be practiced by travelers beginning from 25th May during their journeys.


Guidelines to be followed:

1. Social distancing and minimal contact is to be maintained.

2. Sensitive individuals such as people with sickness, elderly, and pregnant women, are recommended to avoid traveling. A traveller should not travel if he/she is in containment zone. The traveller should not travel if he/she is tested positive for COVID-19. Passengers will have to wear a mask throughout the journey.

3. If a traveller is not allowed to air travel, he / she will be liable for penal charges.

4. Travellers should give the following declarations:

-I / we are not staying in a containment zone.

-I / we are not experiencing any coughing, fever or breathing difficulties.

-I / we are was never under quarantine.

-If I / we develop any of those mentioned symptoms, should notify the health department immediately.

-I / we have not tested positive for COVID-19.

-I / we are eligible to travel as per the extant standards.

-If needed, I / we should make the mobile number accessible to the airline.

-I agree that if I were to fly by air without satisfying the eligibility criteria, I will be subject to penal charges.

5. Airlines need to ensure that the border pass is provided only when the passenger has confirmed the above declarations.

6. Passengers should arrive at the airport according to the updated arrival period of 2 hours before departure.

7. All departing travellers should be registered with the ‘Aarogya Setu’ App on their cell phones and reviewed by CISFI Airport workers at the entrance gate. Also, Aarogya Setu is not compulsory for children under 14 years of age. If the app is not available, the passenger will be required to go to the counter at which the Aarogya Setu app is available for download.

8. For travellers and employees travelling from and to the airport, either private cars or selected approved taxi services with limited seating is allowed. Travellers must get down from the vehicles with mask, gloves and necessary documents.

9. Travelers will have to walk via the Thermal Scanning Zone at a particular location in the city side before accessing the terminals.

10. Travellers should test their temperature and show the status of the Aarogya Setu application to the employees at the entrance gate.

11. Traveller to display his / her identity, the boarding pass at the entry gate to the CIFS workers

12. The traveller should be given an electronic receipt.

13. Travellers to complete check-in and luggage drop at least 60 minutes prior to departure.

14. Passengers should follow the directions suggested by the authorities to remove all metals on the body to enable security checking.

15. To make sure that social distancing is followed, marks such as triangles, squares will be given across the cart selection of luggage to facilitate social distancing.

16. Limitation on baggage – Only one check-in luggage and one cabin suitcase is allowed.

17. Passengers should be responsible for their own protection by following the health and security directions. Hand sanitizers for travellers and airport personnel at different locations will be made available by the airport operators.

18. While waiting in the security hold zone, travellers must maintain social distancing and sanitization.

19. Usage of trolleys in departure and arrival field will not be allowed. Although, specifying a few travellers needing a trolley for a genuine reason, will be given on request.

20. Airport authorities should make sufficient provisions for the sanitation of luggages.

21. Plexiglass will be used for security test counters and check-in.

22. Passenger seats at airports should be configured in such a way as to preserve the social distancing measures between passengers by utilizing chairs and covering certain seats which will not be utilized, with appropriate identifying marks/tapes.

23. In compliance with the guidelines provided by the Ministry of Health and Family Welfare (MOHFW), all airport personnels managing the airplane should be supplied with hand sanitizers and other necessary safety equipment like face masks, etc.

24. Passengers will need to do a web check-in and then will get a boarding pass.

25. Travellers will have to download the luggage label, print it, and affix that to the luggage in a significant place. If the traveller is unable to print the luggage tag, he/she must note the PNR and the traveller name on paper and affix it to a strong string.

26. Magazines and newspapers will not be made available in lounges and terminal buildings.

27. Wherever feasible, open-air ventilation in airports will be used rather than air conditioning systems.

28. Chairs labelled “Not for use” should not be used

29. Travellers should be aware of social distancing and preserve hygiene when going to F&B, retail stores, etc.

30. The whole terminal disinfection with legally registered disinfectants should be done by spraying disinfectants or by physical cleanings at periodic times.

31. The airport operator must maintain cleanliness and hygiene in all buildings, nooks and corners and public spaces, like restrooms, railings, tables, shelves, escalators, walls, ramps, trolleys etc., to be completed prior the flight arrives and after the last person exits the terminal.

32. Travellers must dispose of all bio hazardous items such as used gloves, masks, tissues, etc, in a yellow disposable bin situated at a convenient place in the airport.

33. Travellers should be pay attention to the different communication materials shown at the airport on the numerous safety advisories related to pre-boarding and during flight precautions.

34. Throughout the aircraft, passengers will observe hygiene and sanitation. Face-to-face engagement should be limited.

35. Travellers to minimize the use of toilets and avoid any activity which is not necessary.

36. No queuing outside the bathroom and one person to aid the kids and seniors citizens will be allowed.

37. No food will be served on the airplane. Bottle of water will be made accessible in the galley area or on the chair.

38. When the traveller is feeling uneasy or suffering from renal distress, it should be immediately notified to the crew.

39. The airlines will disembark passengers in a sequential manner.

40. Trolley to be used sparingly in the arrival area.

41. Travellers to wait in the luggage hold area until the luggage arrives in batches.

42. Passenger travel will not be allowed to leave the transit zone.

43. Daily disinfection should be done at the pick-up taxi and drop off locations outside the airports.

44. Upon arrival at the airport, travellers must comply with the safety guidelines specified by the destination state / Union Terriority.



FPIs exit markets after economic package announcement.

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FPIs exit markets after economic package announcement.

FPIs exit markets after economic package announcement.


On 12th May 2020, Prime Minister Narendra Modi announced an economic package of ₹ 20 lakh crore under government’s Atma Nirbhar Bharat Abhiyan / Self-Reliant India. The national movement of Atma Nirbhar Bharat Abhiyan / Self-Reliant India initiated by Prime Minister Narendra Modi is to support India’s all small and local business. He emphasized on slogan viz. #VOCALFORLOCAL.


Scamper among FPIs:

Approximately 40% of FPI sales in cash and derivatives sectors were observed in second week of May. The data derived from stock exchange indicates some break up figures such as FPI’s sold stock worth ₹6,486 crore. Additionally, sales worth ₹2,869 crore and ₹737 crore were observed in index futures and stock futures respectively. These sales was executed in just 4 trading days in the second week of May 2020. The data further states that since the announcement of economic booster package of worth ₹20 lakh crore, FPIs buying activity has drastically declined.


Decline in NIFTY:

On 13th May 2020, Nifty observed its peak of 9,584 within the span of 2 days. Nifty abruptly fell by 534 points and on 15th May 2020 Nifty observed its low of 9,050. In the same time period, it has also been observed that there is a sudden decline in Nifty Bank. Nifty Bank dropped 1,440 points from 20,122 to 18,663.

If we compare between Indian stock market and global stock market, the sudden change is only observed in Indian stock market and not in global stock market. The Nifty and Nifty Bank indices are two of India’s largest traded derivatives, and both of these derivatives are struggling under pressure from FPI’s as they are selling their investment in a massive quantity since the announcement of economic booster package by Indian government. In second week of May 2020, the indices decreased by 5.6% and 7.15% respectively, compared to their respective highs.


Support from DII’s:

During the same period i.e. in the second week of May, there was no support from Domestic institutional investors (DIIs). Purchases from domestic institutional investors (DIIs) was also low, and they purchased stocks of only ₹1,896 crore in cash. There are several rules and restrictions on the companies who are doing business of mutual funds & insurance on derivative speculations. Therefore, they are virtually absent in the field of futures and options.


Massive sales by FPIs:

The media report noted that FPIs have been selling massively since the second week of May 2020 and have been slamming markets after the announcement of the financial package by Indian Government. In addition, the figures apart from second week of May 2020, the FPI’s net figures appear to be clearly positive, this is a bit misleading.


Loopholes while extracting data:

Exchanges will not adapt these facts when foreign companies sell shares and FPIs buy them This was the case on 7th May 2020, when a massive block of shares entered the market of Hindustan Unilever (HUL). Shares of HUL worth ₹26,300 crore were sold by international investors on 7th May 2020. The FPI’s bought a total worth ₹19,000 crore from the market in the same period, while DIIs bought stocks from the market in the same period worth ₹3,818 crore. Nearly all FPI’s and DIIs purchases were in HUL for that particular period.

When these ₹19,000 crore investments are removed from Hindustan Unilever shares, then FPI’s were net sellers in the cash and future segments. Sellers and major buyers of HUL were both international entities, but only those registered as FPIs are required to report their numbers to Securities and Exchange Board of India (SEBI) and stock exchanges viz. NSE & BSE. Meanwhile, net buying by DIIs in the month of May 2020 is just ₹1,056 crore after adjusting the activity of Hindustan Unilever.



Corporate bond funds: A mix of risks and returns.

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Fifth tranche of economic package covers MNREGA, Health and more.

Fifth tranche of economic package covers MNREGA, Health and more.


Finance Minister Nirmala Sitharaman, on May 17, 2020 announced the 5th and concluding tranche of the economic package. In order to make India “Atma Nirbhar”, the last tranche of the economic package emphasizes on land, labour, liquidity and laws. The focus is on 7 things including, Health and Education related sector, Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), businesses and COVID-19, ease of doing business, decriminalization of Companies Act, Public Sector Enterprises- related points and State Governments and related resources.

The 1st tranche was announced on May 13, 2020 following the 2nd, 3rd and 4th tranche on May 14, 15 and 16. All the 5 tranches sums up the detailed guidelines and strategy of allocation of total fund as announced earlier by Prime Minister Narendra Modi. This pool of the Rs 20 lakh crore package, that amounts to 10 percent of our GDP aims to help Nation survive the economic crisis that has arisen due to cross country lockdowns laid to curtail spread of COVID-19.


Let’s have a look at the 7 points as aired on May 17, 2020:

Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA):

The government has planned to increase the budgeted estimate by Rs 40,000 crore. Previously, the budgeted estimate for the same was Rs 61,000 crore. This increase is estimated to generate 300 crore additional labour days of work. Also, this will aid in provision of work for the returning migrants.


Health and Education Sector:

Since public expenditure on health will increase, Government has planned to ramp up investments in building health and wellness centers both in rural and urban regions. Further, every district will have special blocks in hospitals for treatment of infectious diseases.

The Finance minister announced about the technology driven education via “Diksha”. The government is soon planning to launch PM e-VIDYA programme. This programme will provide digital and online access to education. Also, there will be one earmarked channel on television catering to students of class 1 to 12. Adding further, the substantial use of community radio and podcasts will be made. Special online content will be made available for visually and hearing impaired students.

Further, top 100 universities have been granted authorization to start online courses by May 30. Apart from this, an initiative under the name “Manodarpan” will be launched soon. This programme will help in extending socio-psychological support to students and families regarding mental and emotional well-being.


Insolvency and Bankruptcy Code (IBC):

Under this, the debts related to corona cirus pandemic will be excluded from defaults under IBC. No new proceeding for insolvency to be carried out for the next one year. Special provisions will be notified under section 240-A of IBC for MSMEs. In order to insulate MSMEs, the minimum threshold limit to initiate proceedings of insolvency has been raised to Rs 1 crore from previous limit of Rs 1 lakh.


Companies Act:

Announcement as to decriminalize the companies Act was made in order to reduce the burden of criminal courts and the National Company Law Tribunal (NCLT).


Ease of Doing Business:

Public companies can go for direct listing of securities in permitted foreign jurisdictions. Private companies will be considered as unlisted even if they have debentures in the stock exchanges.


Public sector enterprise policy:

Under this policy, the government thinks that it is high time that India sees private sector participation in all the sectors while public sector still plays important role. Therefore, the government has planned to broadly categorize sectors into strategic and others. In strategic sector there will be minimum one to four public sector enterprises in order to safe guard public interest and others will be privatized or merged Whereas in other sectors, public sector enterprise will be privatized. List of the same will soon be notified.


State Governments:

The Central Government is facing steep fall in revenues in the same manner State Governments are also facing huge revenue losses. Around Rs 46,038 crore was delegated as tax revenue from the Centre to State Governments. Adding to this, nearly Rs 12,000 crore was also distributed on timely basis. In spite the borrowing limits of states raised, states have only borrowed 14 percent of the authorized limit, 86 percent still remains unused as of date. Government has now raised the borrowing limit of Gross State Domestic Product (GSDP) from 3 percent to 5 percent. This will result in availability of additional borrowing amount of Rs 4.28 lakh crore for the states.



Market update 18th May 2020. SENSEX crashes 1,069 points on a volatile day.

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Fourth tranche includes structural reforms in various sectors

Fourth tranche includes structural reforms in various sectors

In the 4th tranche of the economic package, Finance Minister Nirmala Sitharaman basically focuses on various sectors aiming towards growth stimulation and job creation. This time the utmost focus has been on sectors like coal, minerals, defence, aviation, power distribution, space and atomic energy sector. All the 4 tranches sums up the detailed guidelines and strategy of allocation of total fund as announced earlier by Prime Minister Narendra Modi. This pool of Rs 20 lakh crore package, that amounts to 10 percent of our GDP aims to help the nation survive the economic crisis that has risen due to cross country lockdowns laid to curtail spread of COVID-19.


Details of previous tranches:

The 1st tranche was announced on May 13, 2020 following the 2nd and 3rd tranche on May 14 and 15 respectively. The announcements in 3 tranches summed up to Rs 10.73 lakh crore. Similarly, 4th tranche has been aired on May 16, 2020 providing further details regarding the balance amount of fund dispersal strategy.

The 20 lakh crore package includes the amounts of earlier announcements made in March. Like the fund of Rs 1.7 lakh crore to take care of provision of free food grain and cash to poor for three months period, and monetary policy announced by RBI amounting to Rs 5.6 lakh crore. The First 3 tranches focuses on MSMEs, NBFCs, relief measures for poor migrant workers, street vendors, small businesses and farmers and agricultural sector.


Major announcements and reform in policies:

Investment upgradation:

States will be ranked on investment attractiveness to compete for new investments for industrial upgradation and infrastructure facilities and expansion of its reach. Major sectors in radar are Coal, Minerals, Defence, Airspace, Power distribution, Space and Atomic Energy. Let us consider them one by one.



Government removes its monopoly over coal and announces commercial mining of this black diamond. Emphasizing on reduction of imports and increasing “Atma Nirbharta”. She also announces that government will spend Rs. 50,000 crores to develop this sector and looks forward to transparent and healthy competition welcoming private sector participation. Adding further, she tells around 50 blocks of coal will be auctioned.



Similarly, she announces that the government is looking forward to enhance private investment in this sector. Open and transparent auctions will be held to offer around 500 mining blocks. In order to boost competition in Aluminium industry, joint auction will be arranged for Bauxite and coal ores.


Defence Production:

With the aim of reducing dependence and becoming Atma Nirbhar, Foreign Direct Investment (FDI) in manufacturing under automatic route has been raised to 74% as compared to 49% previously. For domestic production of imported spares, budget provisioning has been done. These steps are taken to enhance autonomy, accountability and improvise efficiency in this sector.


Civil Aviation:

Limitations levied on usage of Indian Air Space will be uplifted, in order to make flying more efficient. This liberation will earn an annual benefit of around Rs. 1,000 crores for this sector. She also mentions vision of building world-class airports via Public Private Partnerships (PPP). Adding further, she said Government is taking efforts to make our country an international hub for repairs and maintenance and overhaul for aircrafts under authorization of the Airports Authority of India. Untill now 3 out of 6 airports have been authorized for the same on PPP basis.



In accordance with the newly laid tariff policies, Government opens doors for private players to enter into power distribution sector in the Union Territories. This is supposed to strengthen, stabilize and improvise efficiency in this sector.


Stimulating investments:

A revival scheme amounting to Rs 8,100 crores, has been launched to stimulate social infrastructure. This will boost private sector investment in social infrastructure.



Government welcomes private sector to become part of journey in space, launching rockets, satellite services and others. This will stimulate private participation in this sector. The finance minister also mentions that the government is trying to liberalize geo-spatial policy.


Atomic Energy:

Government wishes to see new startups in the nuclear sector. For stimulating this vision, government will set up incubation centres. These incubators are termed as Technology Development cum Incubation Centres. The welcoming the PPP model will help in establishing research reactors and making of medical isotopes.

Lastly, the above mentioned strategic plans and reforms are built with a vision of creating opportunities for businesses and at the same time generating employment and contributing to economic upswing.



Third tranche of economic package to support farmers along with governance reforms