The Signal: The Week Highlights
1. “Invest in India” has successfully distanced itself from COVID cries
Indian economy set to welcome good times, as economy is expected to see its first shine of rebound in H2FY21. Catching the tide early, FIIs are betting big on the country with USD 20 billion in recent weeks, thus crossing the +USD 40 billion in CY21.
India continues to be the promise land for the foreseeable future, as is signaled by foreign interests including the likes of Facebook, Amazon, and Foxconn. With green-shoots gaining visibility, largest working age population, and business-friendly regulatory environment, India can itself doubles the economy ($5 Tn target) in this decade!
2. The Commodity Craze Continues
As central banks unfurl massive packages to stabilize economy, investors find comfort in commodities. Gold & Silver record their new all-time highs for the 6th day in a row crossing 50K and 60K levels respectively! Sentiments have followed suit outside domestic boundaries too, as the yellow metal hit a 9-year high!
Half year into the new decade, coronavirus continues to drive headlines. As Govt’s scramble for temporary solutions, investors sideline investment growth, limiting wealth erosion prospects. This trend may not only continue, but also amplify, if the hype around vaccines fails to deliver.
3. India Curb-stomps China investments
As India grows to be an investment heart-throb, it has exercised sanctions against china monies. Department of economic affairs (DEA) is lobbying to limit beneficial ownership of china interests in India and its output to 25%. Moreover, any coming in from north-east neighbors shall be subject to scrutiny from the Indian govt. bodies.
India has seen souring of its socio-economic relation with china in recent times for misbehavior at the border. Disguising punishment as banning popular applications, to limiting investment trust, India can now dwell as the new manufacturing hub of the world, thereby promoting its newfound ideologies of “AatmaNirbhar” and “Vocal for Local”
4. India misses to catch the FY21 Budget bus
7 months in, half the year has passed, but only half the work done, courtesy the severest worldwide lockdown. Constant monitoring of key economic indicators is signaling short-term pain. Short-changed tax collections, poor manufacturing data and expanding deficit, makes this a forgettable year, economically. Eyes are now set on the V-shaped recovery in next fiscal.
A half-cooked contingent relief package, coupled with inefficient execution has marred India into a year of learnings. With consumption at heart, and new normal normalizing, seeds for a sharp recovery are being sown, which is reflected in better-than-expected company results. Principles of market moat stand true even today.
5. Jio 5G aspirations – Make Local – Go Global
The future is here and it’s a “Made in India” product. Jio has joined giants such as Telstra (Australia) and Rakuten (Japan) and Verizon (USA) to broaden their broadband services, by welcoming the 5G network. As users become more pocket-pinched, Jio is in unique position to enable this shift. The opportunity also marks a rare coming together of company strategy, with geopolitical and macroeconomic tailwinds.
Jio has been an investor hotspot over the last 3 months, because of their ability to digitize and connect India. Onboarding investors such as Facebook, Google and Microsoft, can certainly catapult Jio into defining the technologies of the future. It can be said with optimism, that, Jio will play a key role in promoting India’s tech abilities.