Why we are obsessed with money

What a way to exist!

For most of us, practically the whole day all we are thinking is about money and more specifically how to have more money!

As if money was the only thing in life. Unfortunately for most of us, circumstances just do not permit any other thought!

We are running behind money most of the time which is almost akin to have become obsessed with money. Everything that we are doing in life is centred around money.

Unfortunately, this is because we need money for anything and everything that we do. There’s nothing wrong and what are you doing, however the problem is that over time, it becomes a compulsive habit to keep earning more.

That’s where the danger is. The problem is that there is a point where from we chase money as an addiction, we chase money because we like to do so. If we did not chase money we would not know what to chase now because we get out identity from money and the amount of money we have.

Another thing is that right from childhood we are always taught and our minds are conditioned that everything that we are doing is going to be for the sake of earning money.

There is no one who told you that money is just a means, and then there is something greater in life to achieve. Some examples are legacy; building something, charity; to giving something / helping someone, passion; pursuing something and living; simply to enjoy life and your money

We have got addicted to this and how!

There are three reasons for this:

First, we are what we do. It is the human behaviour. I know I should exercise and I don’t. I know I should eat healthy and I don’t. I know I should spend time with my kids and I don’t. I know that, yes, money isn’t going to make me happy and I still keep trying to make money.

We live by the laws of inertia, in a pattern which is hard to break. But we have to break it. For ourselves and for the sake of people and reasons for which we are chasing money.

Secondly, we need signals of progress. Money is a measure of how far you have progressed in life. The more the money you have the more you can make sure your progress. It’s simply the logic of evolution. People need validation of their success. Bigger house, bigger car, branded goods and list goes on.

Thirdly, it’s the easy way out. It’s only human to avoid difficult things. Important things are very difficult to measure.  Have I been a good father or husband? Have I groomed my child well?  Such things take years to measure and we still don’t have answers.

So, should we not be focused on creating money for ourselves?

I’m not saying that. Definitely create. Take care of yourself for sure!! Use it to the maximum to make yourself happy!!! You need a certain amount and beyond that is extra.

The definition of their certain amount is naturally different from one person to another. If that extra is going to happen easily, without stress and without your involvement, then its fine. Basically don’t kill yourself for that extra. Be Smart.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a certified financial planner, wealth manager and financial freedom coach.

How the RBI actually helps you

RBI

Most of us in Mumbai, see this huge structure called the Reserve Bank of India and wonder what it really does. It’s also a tourist attraction!! It has so many other offices and again one wonders why they need to have so many offices. I’m going to try and highlight a very interesting part of RBI’s work and how it helps us directly on a day-to-day basis.

The RBI does a review of the monetary policy of the country at frequent intervals during the year. So how does the monetary policy help us investors to take smart decisions?

Monetary policy is a tool by which the RBI decides to raise interest rates or reduce interest rates or keep them steady.

In our country, as we’re an oil importing nation, this decision is very closely linked to Oil. Oil to a large extent contributes to inflation. We all know what happens when inflation keeps rising. We in India unfortunately do not see too much of inflation falling and things becoming cheaper.

Oil is Not Well

So when oil prices rise i.e. we see a rise in crude oil prices almost instantly we can expect rising food prices. This is because there is going to be a rising cost pressure for manufacturing & services. This rise obviously gets passed onto the retail consumers.

When this happens RBI adopts a hawkish stance, tries to pull money out of the system by raising interest rates. Now when interest rates rise no one seems to be interested in borrowing. This immediately puts a brakes on money circulation.  Less money chasing goods decreases the demand for money. This way it controls inflation.

There is yet another tool that the RBI has and that is known as the CRR or the cash reserve ratio.  This ratio in simple words means the amount of cash that the bank must maintain with the RBI as the percentage of the total assets. So when this increases banks are forced to park more with the RBI and this is also a way to control inflation.

On the other hand when things look dull, when there is a recession of sorts, the RBI comes to the rescue and gets into action to kickstart growth in the country. It does this by lowering the interest rates. This we all will understand quite easily because we see a direct benefit of this happening. We see a fall of interest outgo in our EMI’s for the home loan that we are carrying. New loans become cheaper.

Individuals are motivated to go out and make purchases, whether it is for a washing machine or a piece of real estate. Businesses are motivated to go out and borrow to buy more machinery, to expand capacity, to hire more staff and manpower and basically do everything that will add to the growth of business.

Economic growth results as a result of all this. It is also during this time that stock market rises, we see a rally in stock prices and mutual fund NAV’s jumping higher and higher each day. There is prosperity all around.

Critical Role

As you can see that the central bank of the country has a very very important role to play.  If it makes a mistake, things can go really wrong.  Imagine like the USA or Japan if our interest rates were very low; everyone would run to borrow, they would borrow more than they require because it would be cheap and easy to borrow. And that is very individuals would run into what is known as the debt trap, because someday you’ll have to pay back.

Each day the central bank attempts to make sure that everything in our country remains stable and financially there’s nothing that goes wrong dramatically.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

The year of the bond, once again!

We are not talking of James Bond, we are talking of investment bonds.

We are in a situation where the fixed deposit rates are at a general low and there is a lot of discontent among depositors of fixed deposits.

Whenever we see a situation like this, one way or the other, the bond markets come to the rescue. It comes to the rescue of smart depositors, who are agile to move their money from fixed deposits to bond funds.

Let’s understand what is happening and why.

What Exactly is Happening in the Bond Markets?

It is likely that in this year, investors of bond funds will make handsome gains. Bond prices may rise and there may be capital gains. Investors of bond funds not only earn the rate of interest, but also earn capital gains. So that way, they make more than the return they would make on fixed deposits. The returns could be a high single digit or sometimes as high as double digits.

Over three years, this will become practically tax free or the tax would be a very small amount. So, basically, I am thinking that a rally will happen in the bond market. There are three main reasons for this — reduction in government borrowing (which is favourable), recovery of trading losses (which is favourable) and no change in monetary policy (which is neutral).

A word of caution, however, that such bond market investments are also subject to bond-market volatility and should be considered ideally with the help of a financial expert.

Before proceeding further, let us, therefore, quickly explain a bond, bond fund and bond market. We need to do this because few people understand the bond markets and even fewer invest in the bond markets.

Bond is nothing, but a commercial transaction where the borrower is issuing a bond to the lender and the lender will earn a certain rate of interest. When interest rates fall, everyone becomes interested in owning that bond.

As a result, the demand for the bond increases, the price of the bond increases and the bondholder makes capital gains.

A bond fund is a fund where ordinary investors pool in their money and a fund manager buys them a portfolio of bonds.

Moving onto the Reasons For a Rally in Bond Funds…

Now, the fundamental reason for a rally is reduction in interest rates as it stimulates economy and growth.

Firstly, the government is a massive borrower of funds. So a reduction in government borrowing reduces the demand for money in the economy. As a result, prices of bonds rise and this contributes to capital gains for bond holders.

Secondly, the Reserve Bank of India (RBI) recently announced that the commercial banks and RBI, which are the largest lenders to the government, will have another year to offset losses they have incurred on account of buying government bonds in the past. This action will lead to a rise in the price of bonds and this contributes to capital gains for bond holders.

Lastly, on one side due to the rise in oil prices, there is more inflation and thus more money is needed for circulation in the economy. On the other side, many government bonds are maturing, which will provide money supply. So, it is likely that we see a neutralising effect and thus RBI will take no action. This inaction here will support capital gains as explained above. Hence, this year might be a year of good gains for the bond investors.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Five new financial goals for you this summer

I am going to try and explain to you why the summer holidays of April and May are great months to get a lot of things started, financially speaking.

This time period in a way resets the financial clock. You also have the option to hit the reset button on everything you have done so far; financially speaking of course and hope to do better things better than you did last year.

Let’s look at some of the new and unusual things to do in April.

  • Make a learning budget

Learn something about money or anything you like. The best way to make money is to learn something about money. Just like if you wanted to learn cooking you will get into the cooking class. If you wanted to learn swimming you would enrol in the swimming class. If you find learning about money is too daunting task than learn something which is close at to your heart or related to your work. If you learn something new, there’s a possibility that you will use your new ideas to generate new income and in turn that will generate new wealth for you.  So make a budget, enrol somewhere and spend that budget. How about a % of your annual income? Spend it for sure!

  • Plan a unique holiday 

When you’re by yourself and without your mobile phone you will have the opportunity to think! When you have time to think, suddenly good ideas will come to your mind.  You may think this is silly but you can be sure that you will be amazed if your drivers experiment just once. So it might be a good idea to go for a holiday just by yourself. If you find that too intimidating, join a group of strangers. You can combine that with the adventures experience if you like.  Be extra careful if you’re going with your special buddies. Do this only if they are going to be in a position to help you discuss your idea and make it bigger. They must play the role of complimenting your thoughts. So make a schedule to do this holiday and obviously make a budget to make it happen. Think & create new ways of making wealth.

  • Make a prediction and make it happen

Be brave. Let’s aim to grow and multiply net worth by 50% by the time you come to the end of this financial year. This is not a joke and it is easier than you can imagine.  I’m speaking about NETWORTH and I’m not talking about return on investment. If your networth is Rs. 100 today, all I’m saying is that let’s aim to make this a 150 by the end of this year. This networth comprises of all your savings till date. This can be achieved by simply saving aggressively every month for the next twelve months. Just put this into a recurring deposit or liquid fund so you don’t spend it.  We just have to prove to ourselves that this is possible. Where and how we will invest this money will think about that later.

  • Eliminate a negative belief 

I want to give you an exercise here. Write down all your negative beliefs you have about money and wealth. Most people are not able to achieve the desired level of wealth because they think about wealth negatively. So even if you are earning a good amount of income you will never see yourself becoming wealthy. Examples are money causes problems, money causes a fight, managing money is complicated etc. Then for each negative thought, you have written down the positives i.e. the opposite for a few months. Soon negatively biased feelings will evaporate.

  • Make a new investment; something you have not done before

Again here you do not have to be a financial expert. The idea is to learn something new. There are hundreds of investment options. Our objective here is to learn something new. Talk to your advisor and seek his or her guidance. Just a word of caution here; don’t do anything which is speculative or is something that you just can’t understand. Do what do find easy you understand and do that then.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Seeking financial freedom? The time is NOW!

John Lewis famously remarked, “If not now, then when? If not us, then who?” This is so appropriate in the current financial world that we live in.

That statement will leave to rest every other argument that is conservative and against the idea of wealth creation. We are often faced with the situation where there is no option but to create wealth. Read on to know why!

Interest rates are painfully low. For all those diehard fans of guaranteed investment returns, there’s hardly any place to go to. Thinking of fixed deposits? Feeling happy with 7%? And fully taxable? That period is over. Period.

That doctrine of investing into pure fixed deposits and similar instruments is unfortunately standing challenged. There is no option but to sprinkle it with a combination of a little something that will add to the returns earned from fixed income type of securities. In fact this category of investors are in a way, best placed in terms of the current tax laws.

They can earn about 9-10% with minimal or near zero tax over about five years and more. Starting to generate rate of return above the inflation level of 7% is starting to create wealth. So there it is; there is no option but to move in the direction of creating wealth.

For more evolved investors, who invest in equities and who and still sitting on the sidelines tend to run out of patience every now and then. They are sometimes waiting for the right time, sometimes waiting for correction, sometimes waiting for valuation and sometimes waiting for just nothing. Sometimes, just too busy to take action!

I totally understand not wanting to lose hard-earned money. But if the money does not move it will stagnate. That’s the problem with money.

Hit the Ground Running

Inaction and inactivity kills it. Makes it costly to hold. Makes us lose opportunities, sometimes small and sometimes significant. I know of many people including my dad, who just kept investing into equities and holding forever. No doubt they were hugely (big HUGELY) better off then the people in the same time zone. I think they could have done far better with some smart lessons on asset allocation. This is because if they compare the growth rate of their holding over a period of 20 or maybe 30 years the compounded rate of return earned is often not impressive.

It is just marginally better or a few percentage points above the fixed deposit rate. Hence the need for asset allocation, which simply put is not to have all eggs in one basket at any given point in time. These sections of investors anyways create wealth, and, asset allocation is the tool that ensures that the process of wealth creation continues uninterrupted. So again there it is; even for this section there is not option but to start enhancing their wealth creation activities, else returns will continue to remain forever mediocre.

Then there are skeptics and there is nothing much for skeptics of everything, except that they need a serious dose of financial education. Perhaps what if needed is a proof of concept and for that, which better country to live in other than India where financial transparency in investments is so high that I sometimes feel, it comes from another planet.

 Your Money Needs Action

Today, there is a whole lot of variety to choose from and we have never been more spoilt for choice. But the most important thing in all this is to understand that your money needs action. It needs activity and for that the time is now!

And furthermore, if you asked me this question 10 years ago; I would have said that, the Time is NOW. If you ask this question 10 years hence, I will still say the Time is NOW. Any time is the right time to start the process of creating wealth. All that is important is that you take your first step; then continue it all the way with zeal and determination… till you have the level of wealth that you desire. And if you accumulate more than you need, still do it and share it with the world.

If you want your financial freedom; then the Time is NOW!

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager and Financial Freedom Coach.

Young Turks: Here’s the success story of venture fund Aspada

Venture fund Aspada was co-founded by Kartik Srivatsa and Thomas Hyland in 2012 and has made 17 investments so far across Fin-tech, agriculture, health and edu-tech startups.

Young Turks takes a look at their investment thesis, their differentiated VC model and meet three of their portfolio companies – Capital Float that underwrites unsecured loans to startups and SMEs; Dunzo, a hyper local concierge and delivery player that is also Google’s first direct startup investment in India; WayCool, a Chennai-based agriculture-tech startup.

Global growth ‘fragile’, ‘under threat’, says former IMF head Christine Lagarde

Christine Lagarde

Former head of the International Monetary Fund Christine Lagarde has warned that global growth is “fragile” and “under threat” and policymakers should work to reduce manmade vulnerabilities.

Policymakers should work together to “try to reduce the fragility and … resolve the uncertainty,” facing the global economy, she told AFP in an interview on Thursday.

Lagarde, who officially stepped down as IMF managing director last week, decried certain self-inflicted wounds, saying that issues like Brexit and trade frictions “are manmade and can be man-fixed.”

But Lagarde, who was the first woman to lead the crisis-lender and is set to become the first woman to take over the leadership of the European Central Bank later this year, said, “a bit of woman wouldn’t hurt.”

Her comments came on the day the OECD said trade tensions are eroding world growth, prompting it to cut its forecast for this year to the slowest rate since the start of the global financial crisis in 2008, just 2.9 percent down from the 3.2 percent expansion previously forecast.

President Donald Trump’s trade war with Beijing has undermined business investment and exports at a time when China’s economy already is shifting to slower growth.

“What we have at the moment is a rather mediocre growth” which is “fragile and it is under threat,” Lagarde said.

She said central banks have done much of the heavy lifting, preventing the financial crisis from becoming a depression, but officials handling government policies and purse strings now must step up.

“I think central bankers have done an awful lot and were for many years regarded as the only game in town,” she said.

In her new post leading the ECB, she said she would focus on job creation and stability, but stability alone may not be enough in the lives of real people.

If confirmed, she will step into her new post in an environment where Trump has maintained a relentless campaign against the US Federal Reserve for not cutting interest rates aggressively to stimulate growth.

Trump has also accused outgoing ECB President Mario Draghi of deliberately seeking to weaken the euro to gain unfair trade advantages, something Draghi has refuted.

Others in Europe have criticized Draghi for cutting rates further into negative territory to juice a sluggish EU economy.

But Lagarde said that experience shows that, in cases where politicians meddle with central bank independence, it “doesn’t pan out very well.” But she also said central bankers should strive to be “predictable.”

“There is enough uncertainty around the world, not to add the uncertainty of what a central banker is going to do.” Central bankers “should deliver on their mandate and,” she said, “they should stick to facts and data so that they could be predictable.”

Rising onion prices bring tears to eyes

Onion prices

Rising onion prices are once again bringing tears to the eyes of the people. In the last week, the price of this vegetable has increased by 40-50 percent.

In Delhi’s Azadpur Mandi, the wholesale price of onion on Thursday was between Rs 30-46. While in Maharashtra’s Nashik, onion was being sold at Rs 50-55.

According to traders, the onion prices have gone up due to the fall in its stock which in turn has affected the supply to wholesale markets.

Last week, in a bid to control the rising prices of onion, the government reduced the minimum export price of the vegetable to $850 per tonne.

Sources believe the government’s move has reduced the possibilities of onion export.

Rajendra Sharma, a trader of Azadpur Mandi and President of the Onion Merchant Association, said the recent rains in the southern states must have caused damage to the onion crop due to which prices are constantly increasing.

“The entire nation is facing shortage of onions. In such a scenario, exporting the vegetable is even more difficult,” a Nashik-based onion exporter said.

He said the stock of onion is quite less in southern states including Karnataka, Andhra Pradesh, Kerala, Tamil Nadu.

Traders said that currently, no wholesale market is receiving more than 1,000-1,500 onion-laden trucks, due to which the prices are going upwards.

Oil prices march to biggest weekly gain in months as Middle-East tensions dominate

Oil pump jacks work at sunset near Midland

Oil prices were on track for a more-than-7 percent jump this week, their biggest in months, as early trading on Friday saw gains extended on fresh tensions in the Middle East after a key Saudi Arabian supply hub was knocked out in an attack last weekend. Friday’s rises came after a Saudi-led coalition launched a military operation north of Yemen’s port city of Hodeidah, as the United States worked with Middle-East and European nations to build a coalition to deter Iranian threats after the Saudi attack.

Brent crude is on track to rise about 7.7 percent this week, the biggest weekly gain since January. The front-month November contract was at $64.96 a barrel, up 56 cents, by 0212 GMT.

US West Texas Intermediate (WTI) crude futures were up 66 cents to $58.79 a barrel, set to post a 7.1 percent gain for the week, the largest weekly rise since June.

“The forward curve remains ‘bid’ as traders are hedging that the initial estimates for the duration of repairs (at damaged Saudi facilities), given the complex nature, could well underestimate the time required,” said Stephen Innes, Asia Pacific market strategist at AxiTrader.

Saudi Arabia’s production dropped by almost half after an attack on Saturday crippled a major oil processing facility. Its oil minister has pledged to restore lost production by the end of this month, and bring capacity back to 12 million barrels per day by the end of November.

The United States and Saudi Arabia blames Iran for the assault on Saudi oil facilities. Tehran denies any involvement.

In the United States, meanwhile, torrential rain from Tropical Storm Imelda has forced a major refinery to cut production and shut a key oil pipeline, terminals and a ship channel in Texas.

Global markets are also keeping an eye on US-China trade negotiations in Washington, as officials from both sides resumed face-to-face talks for the first time in nearly two months on Thursday.

Top stock recommendations by Mitessh Thakkar, Prakash Gaba, Rajat Bose for Friday

Stock Market

Indian shares are likely to open in green on Friday after Reserve Bank of India governor Shaktikanta Das said there is room for more rate cuts. Global equities also edged up as economic stimulus around the world eased fears of economic deceleration. Moreover, hopes of a GST rate cut today to boost the ailing economy also support the shares.

Among brokerages, Mitessh Thakkar is bullish on Petronet LNG, and bearish on IndusInd Bank Ashok Leyland, and Bosch. Prakash Gaba has a ‘sell’ call on Cipla, Dish TV, Reliance Industries, and YES Bank. Rajat Bose is positive on UPL and negative on SBI and BEL.

Here are top buy-sell calls by market experts for Wednesday:

Mitessh Thakkar – mitesshthakkar.com

– Sell IndusInd Bank with a stop loss of Rs 1,310, target at Rs 1,245

– Buy Petronet LNG with a stop loss of Rs 249.90, target at Rs 266

– Sell Ashok Leyland with a stop loss of Rs 60, target at Rs 55

– Sell Bosch with a stop loss of Rs 13,550, target at Rs 12,800

Prakash Gaba – prakashgaba.com

– Sell Cipla with a stop loss of Rs 458, target at Rs 440

– Sell Dish TV with a stop loss of Rs 21, target at Rs 51

– Sell Reliance Industries with a stop loss of Rs 1,200, target at Rs 1,100

– Sell YES Bank with a stop loss of Rs 54, target at Rs 48

Rajat Bose – rajatkbose.com

– Sell SBI with a stop loss above Rs 281, target at Rs 263

– Buy UPL with a stop loss below Rs 556.80, target at Rs 573

– Sell BEL with a stop loss above Rs 106.50, target at Rs 101

Also, track all live market action on CNBC-TV18 Market Blog

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions

MarketBuzz Podcast With Mangalam Maloo: Sensex, Nifty likely to open higher; YES Bank, Axis Bank, PNB in focus

Marketbuzz

Benchmark indices BSE Sensex and NSE’s Nifty 50 are likely to open higher on Friday after Reserve Bank of India governor Shaktikanta Das said there is room for more rate cuts. Moreover, hopes of a GST rate cut today to boost the ailing economy also support the shares.

On the global markets front, Asian share prices inched higher on Friday as economic stimulus around the world eased fears of economic deceleration while crude oil prices climbed on concerns that last weekend’s attacks on Saudi Arabia’s oil facilities still pose supply risks.

On Thursday, the Sensex ended 470.41 points lower at 36,093.47, while the broader Nifty50 index lost 135.85  points to end the day at 10,704.80.

At 7:56 am, the SGX Nifty futures traded higher by 0.20 percent, or 21 points, at 10,725.50, indicating a positive start for the Sensex and the Nifty.

Stocks To Watch: YES Bank, Axis Bank, PNB, Oriental Bank of Commerce in focus. Click here to know more


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MarketBuzz is your daily morning briefing by CNBC-TV18 research analysts and anchors Sonia Shenoy, Ekta Batra, Anisha Jain, Nigel D’Souza and Mangalam Maloo to jumpstart your stock market investing.

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Top brokerage calls for September 20: CLSA retains ‘sell’ on Bajaj Auto, TVS Motor; Credit Suisse bullish on HDFC Bank

BSE sensex
Credit Suisse on HDFC Bank:
Credit Suisse on HDFC Bank: The brokerage maintained ‘an outperform’ rating on the stock, with a target price of Rs 1,350 per share. It said that the bank is well placed despite slowing macro environment, adding that the bank expects market share gains to accelerate as customer acquisition has picked up.
CLSA on 2-wheelers:
CLSA on 2-wheelers: Margin pressure should persist as companies may find tough to pass on full cost impact, the brokerage said. CLSA retains ‘sell’ on Bajaj Auto, Hero MotoCorp, and TVS Motor, while, it has an ‘outperform’ rating on Eicher Motors. It also cut price target of TVS Motor and Eicher Motors.
Nomura Model Portfolio Changes:
Nomura Model Portfolio Changes: The brokerage added AIA Engineering to their portfolio and raised their weightage in L&T. In Financials, they raised weightage in ICICI Bank and cut in SBI. The brokerage removed Shriram Transport Finance from its portfolio.
Morgan Stanley on Zee Entertainment: The brokerage was ‘underweight’ on the stock with a target of Rs 370 per share. The stock will remain volatile on any news flow with respect to debt obligations, the brokerage said. They also added that Essel Group’s debt could come down to Rs 6,700 crore by next week.
HSBC on Reliance Industries:
HSBC on Reliance Industries: The brokerage was bullish on the stock with the TP of Rs 1,475 per share. If zero IUC is delayed, it would be marginally negative for the company’s telecom business, the brokerage said, adding that rebound in refining margin and growth in retail and telecom support its FY20 outlook.

CNBC-TV18’s top stocks to watch out for on September 20

BSE Sensex
Yes Bank
Yes Bank: Morgan Credits, a promoter group firm of Yes Bank, said it has sold 2.3 percent shareholding in the private sector lender. Yes Bank promoter Rana Kapoor said: “With the sole intention of reducing debt of the promoter holding company – MCPL, owned by my three daughters, it was decided to bring down our family ownership in Yes Bank to 7.4 percent”. (Image: Reuters)
Tata Motors
Tata Motors: The company unveiled a new powertrain for its electric vehicles that will be deployed in a range of its upcoming models, including the one scheduled for launch early next year, which will help it lower cost by scaling up the volume. The new powertrain Ziptron will help it drive the economies of scale on one hand and make new EVs more affordable for consumers on the other, said Tata Motors. (Image: Reuters)
NMDC
NMDC: The state-run miner slashed prices of high grade iron ore or lumps by Rs 200 to Rs 2,700 per tonne. NMDC also cut the prices for iron ore fines, which is inferior grade ore, by Rs 200 to Rs 2,460 per tonne. The revised prices exclude royalty, DMF (District Mineral Fund), NMET (National Mineral Exploration Trust), cess, forest permit fee and other taxes.
Adani
Adani Transmission: The Adani Group firm has acquired Bikaner-Khetri transmission project in Rajasthan from PFC Consulting. Adani Transmission won the project linked to renewable power generation through a tariff-based competitive bidding process. The company will build, own, operate and maintain the transmission project for a period of 35 years. The project consists of approximately 480 circuit (ckt) kms of 765kV line along with associated transmission system. (Image: Reuters)
drugs
Morepen Laboratories: The company approved the issue and allotment up to 3.7 crore warrants for an aggregate amount of up to Rs 74 crore, convertible into 3.7 crore equity shares to promoter group entities on a preferential basis.
Godrej
Godrej Consumer Products: GCPL has increased stake in two Mauritius-based investment holding firms—Godrej West Africa Holdings and Darling Trading Company—by 5 percent, taking it to 95 percent each in both the companies. GCPL has paid $20.89 million cash consideration—$13.80 million to Godrej West Africa Holdings and $7 million for Darling Trading Company.
Oriental Bank of Commerce: OBC has launched new retail and micro and small enterprise (MSE) loan products linked to the Reserve Bank of India’s repo rate. The new products will be available to borrowers from October 1 onwards. Interest rates on these products will directly be linked to an external benchmark, which in this case is the repo rate. The bank added that the link will ensure fair and transparent transmission of the monetary policy rate immediately to the customers.
PNB
Punjab National Bank: PNB will raise up to Rs 3,000 crore by issuing Basel III compliant bonds in one or more tranches. The bank’s board of directors will meet on September 26 for approval to the fund raising proposal. It will raise funds through additional tier-I Basel III compliant perpetual bonds amounting up to Rs 3,000 crore in one or more tranches, PNB said. (Image: Reuters)
The logo of Axis Bank is seen on an advertisement at its branch in Mumbai
Axis Bank: The bank has set the floor Price for a qualified institutional placement at Rs 661.50 per share, with an option of discount upto 5 percent. The bank’s board of directors will consider and approve the issue price for QIP on September 25.

CNBCTV18 Market LIVE: Sensex, Nifty set for positive start on ebbing macro concerns, Yes Bank, IndiGo, OMCs shares in focus

BSE Sensex, NSE Nifty50, US Federal Reserve

Market LIVE: Indian shares are likely to open positive on Friday after Reserve Bank of India governor Shaktikanta Das said there is room for more rate cuts. Global equities also edged up as economic stimulus around the world eased fears of economic deceleration. Moreover, hopes of a GST rate cut today to boost the ailing economy also support the shares. However, rising oil prices may cap gains in the Indian stock market. At 7:20 am, the SGX Nifty futures traded 0.18 percent, or 19.5 points, up at 10,724, indicating a flat start for the Sensex and the Nifty. This blog will keep you posted on the latest updates and developments from the stock markets today:

10 things you need to know before the opening bell on September 20

BSE Sensex stocks trader
Global cues
1. Asia: Asian share prices inched higher on Friday as economic stimulus around the world eased fears of economic deceleration while crude oil prices climbed on concerns that last weekend’s attacks on Saudi Arabia’s oil facilities still pose supply risks. MSCI’s broadest index of Asia-Pacific shares outside Japan is on course to post its first weekly loss in five, although it rose 0.08 percent early on Friday. Japan’s Nikkei rose 0.34 percent to come within striking distance of its year-to-date peak. (Image: AP)
US markets
2. US: Wall Street ended mixed on Thursday, with a gain in Microsoft offsetting a dip in Apple, a day after the Federal Reserve cut interest rates as expected and left the door open for further monetary easing. The Dow Jones Industrial Average declined 0.19 percent to end at 27,094.79 points, while the Nasdaq Composite crept up 0.07 percent to 8,182.88. The S&P 500 stood at 3,006.79 points, up less than one point from Wednesday. (Image: AP)
stocks market bse nse walchandnagar industries share
3. Markets At Close On Thursday: Indian shares ended lower, down over 1.2 percent on Thursday amid huge selling in all sectors, while investors laid off heavy bets after the US Federal Reserve delivered mixed signals about its next move. The Sensex ended 470 points lower at 36,093, while the broader Nifty50 index lost 136 points to end the day at 10,705. Meanwhile, foreign institutional investors sold Rs 893 crore in the cash market while domestic institutional investors bought Rs 646 crore. The rupee dropped 10 paise to close at 71.34 against the US dollar on Thursday as heavy selling in domestic equities, unabated foreign fund outflows and rising crude oil prices kept investors edgy. (Image: Reuters)
North Dakota Wasting Gas
4. Crude Oil: Oil prices bounced back on continued worries about the stability of oil supply as tensions between Saudi Arabia and Iran showed little sign of abating after a weekend attack on Saudi oil installations. Brent crude futures added 0.81 percent to $64.92 per barrel while US WTI jumped 1.26 percent to $58.86 per barrel in the morning of Asian trading hours on Friday. (Image: AP)
Nirmala Sitharaman
5. Finance Minister On MSME Sector: Union Finance Minister Nirmala Sitharaman announced that stressed MSMEs would not be categorised as non-performing assets (NPAs) till FY20 (March 31, 2020) end. To give credit, public sector banks will hold meetings with NBFCs and retail borrowers in 400 districts beginning next week to provide credit to borrowers, including homebuyers and farmers. During the public meetings, the credit will be provided for retail, agriculture, MSME and housing sector, among others. (Image: Reuters)
6. Shaktikanta Das On Repo Rate Cut: The government has limited fiscal space to support growth, but low inflation can help the monetary authority ease policy rates further and help boost the economy that has badly lost its momentum, governor Shaktikanta Das said Thursday. Government measures to boost growth are more on the administrative side and it has been fiscally prudent in its moves, Das said, adding there can be more such off-balance- sheet measures from New Delhi in the offing. (Image: Reuters)
7. RBI Governor Warns Banks: Banks will have to take more haircuts while resolving the stressed loans extended to non- banking lenders who are found wanting on the corporate governance front, Reserve Bank governor Shaktikanta Das warned Thursday. On the government move to have merge 10 banks to four larger ones, Das said the amalgamations ought to be non- disruptive and affirmed the central bank’s support to ensure the same is achieved. (Image: Reuters)
8. GST Council Meeting: Amid the clamour for a rate cut by various industries, the all-powerful GST Council will hold a crucial meeting on Friday to decide on tax moderation, keeping in mind the revenue position and the need to boost sagging economic growth. The argument propagated has been to boost the consumption and domestic demand by reducing Goods and Services Tax (GST) rates further. However, many of the states are of the view that it would not be tax prudent to allow GST rate reduction at this stage, as the compensation cess fund, which is utilised to compensate the states under the GST Act in case the revenue is below the targeted growth rate, has turned negative. (Stock Image)
Oil pump jacks work at sunset near Midland
9. RBI Governor On Oil Crisis: Reserve Bank governor Shaktikanta Das Thursday expressed the hope that the ongoing crisis in Saudi Arabia that has spiked crude prices to multi-year highs will have limited impact on inflation and fiscal numbers. Addressing the Bloomberg India economic summit, Das said he expects the Saudi crisis to have only limited impact on inflation and the fiscal numbers given the lower subsidy outgo.
He, however, was quick to add that the developments emanating from drone strikes on Saudi oil facilities are still playing out. (Image: Reuters)
Sebi
10. SEBI Sets Up New Committee: Capital market regulator Sebi on Thursday set up a high-level panel to suggest possible structures and regulations for creating ‘social stock exchanges’ to facilitate listing and fund-raising by social enterprises as well as voluntary organisations. Securities and Exchange Board of India (Sebi) said in a statement it has decided to constitute a 15-member working group under the chairmanship of Ishaat Hussain (Director at SBI Foundation and former Finance Director at Tata Sons). The working group will examine and make recommendations with respect to possible structures and mechanisms within the securities market domain to facilitate the raising of funds by social enterprises and voluntary organizations, Sebi said. (Image: Reuters)

US Speaker Nancy Pelosi unveils drug price plan, Trump welcomes it

House Speaker Pelosi gavels the close of joint meeting of Congress after Stoltenberg address on Capitol Hill in Washington

US House Speaker Nancy Pelosi, a Democrat, proposed legislation on Thursday to let the federal government negotiate lower prices for costly prescription drugs, drawing praise from Republican President Donald Trump, who urged a bipartisan solution.

Initial reaction to Pelosi’s plan was negative from House and Senate Republicans, many of whom are not keen on letting the government negotiate prices, viewing it as price fixing.

After Pelosi unveiled her proposal, Trump said on Twitter he liked an alternative authored by Republican Senator Chuck Grassley “very much.” But Trump also said it was “great to see” Pelosi’s bill and he urged a bipartisan approach.

It was unclear how much support Pelosi’s proposal will receive ahead of the November 2020 presidential and congressional election. Healthcare costs are a top issue for Democrats campaigning for their party’s nomination.

“We hope to have White House buy-in, because that seems to be the root to getting any votes in the United States Senate, and we want as strong a bipartisan vote as we can in the House and the Senate,” Pelosi told a news conference.

Americans pay the highest prices for prescription drugs in the world. Most other developed nations have single-payer systems with their governments negotiating prices. Trump has slammed lower drug prices abroad as “global freeloading.”

Pelosi’s proposal would allow the US government every year to negotiate prices on at least 25 of the 250 most costly drugs that lack competition, a summary of the bill said. The lower prices would be available to all US consumers, not just the government’s Medicare programme for the elderly. Companies that refuse to negotiate would face monetary penalties.

Democrats promised to curb prescription drug prices during last year’s congressional election campaign, when they captured the majority in the House of Representatives.

Trump has also promised to lower prices but has been struggling to deliver on that before the 2020 election.

Senate Majority Leader Mitch McConnell, in an interview with Politico, ruled out any Senate action on Pelosi’s bill but the Republican said the chamber is still “looking at doing something on drug pricing.”

In the House, Republican Leader Kevin McCarthy labelled Pelosi’s plan “more socialism.” A drug industry trade group called it “radical” while some liberal House Democrats said it did not go far enough to bring down prices.

Pelosi, who consulted with the White House while developing the bill, said she hoped for a bipartisan effort – a rarity in Trump’s highly polarized Washington.

“My conversations with the president have been about making this a priority,” she said. “I believe that he considers it so and we can work together.”

The US government in 2016 spent around $29 billion on prescription drugs in Medicare’s Part B, which includes most injectable drugs, and nearly $100 billion in Part D, which covers pills and other drugs usually dispensed in pharmacies.

‘PAINFUL’ PENALTIES

Drug companies that refuse to negotiate would have to pay a “non-compliance fee starting at 65 percent of the gross sales of the drug in question,” the bill summary said. This would increase by 10 percent every quarter up to a maximum of 95 percent. Pelosi said penalties had to be “painful” in order to work.

The plan set an upper limit for negotiated prices as no more than 120 percent of the volume-weighted average of the prices paid in six other countries: Australia, Canada, France, Germany, Japan and Britain.

The price index provision could be aimed at getting White House support, since the Trump administration has said it is working on a similar rule on some Medicare drug prices.

Grassley urged senators to back the drug pricing bill he authored together with Democrat Ron Wyden as the “moderate” alternative to Pelosi’s approach.

The drug industry lobbying group PhRMA said Pelosi’s plan “would end the current market-based system that has made the United States the global leader in developing innovative, lifesaving treatments and cures.”

The Pelosi proposal threads the needle between moderate and more left-leaning Democrats in the House, but is too liberal for the Republican-led Senate, said Dan Mendelson, founder of healthcare consultancy Avalere Health.

Some progressive Democrats want changes in the bill.

Representative Lloyd Doggett, a Democrat, dislikes letting drug companies set a “launch” price for new drugs a year before price talks begin, and said negotiating over a minimum of 25 drugs a year is too few.

The New Democrats, a group of House moderates, voiced optimism after meeting Health and Human Services Secretary Alex Azar that the two parties could forge a bipartisan deal that Trump would sign into law.