victorybull

Category: Uncategorized

  • Gold investment platform Jar raises $32 million led by Tiger Global

    Savings and investment management platform Jar has raised $32 million in a Series A funding round led by Tiger Global, the company has said .The round also saw participation from Rocketship.vc, Third

    Prime, Stonks, Force Ventures and existing investors including Arkam Ventures and WEH Ventures, the company said on February 3.

    Angel investors, including Klarna founder Victor Jacobsson, Suleman Ali of Ali Capital, Shamir Karkal, founder of Sila Money, Byron Ling of Cannan Partners, Joel John of Ledger Prime and Italic founder Jeremy Cai also participated in the round.

    “We are helping people get comfortable with the idea of investing,” founder Nishchay AG said in a statement. “What we have found is that once people build familiarity with investments, they build a habit to invest more. A habit and discipline is clearly being formed and we see a jump of 20 percent in investments month over month by users.”

    The funds will be used to expand the user base and eventually add offerings like savings and other financial services, including lending and insurance.

    The round comes after the company raised $4.5 million in seed funding in August 2021, with the backing of Arkam Ventures, Tribe Capital and WEH Ventures.Founded in June 2021 by Nishchay and Misbah Ashraf, the platform aims to encourage Indians to invest small amounts in gold and help them build their savings.

    The Jar app saves a small amount each time a user makes a transaction. The app, which can be allowed to look at the transaction history, rounds up an individual’s daily spendings and puts some money aside as investment.

    Users’ investments in digital gold is backed by physical gold of the same amount and they can choose to withdraw that much gold or liquidate their investments at any time. The company partners with Paytm and Safegold for helping users invest.

    “Hundreds of millions of Indians today don’t have any savings. This, unfortunately, continues to trap many of them in the world of bad debts that some take decades to get out of. We want to help Indians build a habit of saving so they have a financial cushion to fall back on in the time of dire need,” Ashraf said.

    The platform has four million users and the app sees over 100 transactions a minute.”Jar is bringing new users into the online investing space, starting with digital gold as the first product. We are bought into Jar’s mission of helping users build a daily savings habit, and we’re excited to partner with the team as they scale to millions of customers,” Alex Cook, Partner at Tiger Global, said.

  • The Monetary Policy Committee (MPC) may go for a hike of up to 0.25 per cent in the reverse repo rate at which the RBI absorbs excess liquidity and leave the repo rate at which it lends, to narrow the policy rate corridor, a British brokerage said on Thursday.

    “Growth concerns amid spread of the Omicron variant and relatively benign inflation out-turns provide the RBI with enough room to maintain its growth-supportive monetary policies,” analysts at Barclays said, ahead of the resolution announcement next week.The RBI will hike the reverse repo rate by 0.20-0.25 per cent, given its liquidity management actions, it said.

    The brokerage joins a growing list of watchers expecting a reverse repo hike.

    Other analysts also blame the surprising hike in the government borrowing announced in the budget for the RBI’s likely call for policy normalisation.

    Barclays said the budget’s focus on capital expenditure is expected to provide a back-loaded fiscal impulse to the economy and does not change the macro backdrop, which includes concerns on inflation.

    On the surging global oil prices, which generally play into domestic inflation through corresponding price hikes of fuels locally, the brokerage said the inflationary pressures are unlikely to rise before the state elections finish by March, hinting of no pass-through.

    Even though the inflation is benign lately, the RBI needs to be vigilant, it said, pointing to its own forecasts suggesting the headline number staying in the upper end of the 2-6 per cent band and also the crude prices moving higher.

    It said till now, the liquidity signals from the RBI have been mixed, which have included shelving of the bond purchasing programme GSAP, an increase in both the quantum and cut-offs for voluntary reverse repo rate auctions and some bond sales in the secondary market last month.

    The policy guidance will be dovish when compared to RBI’s global peers who have been guiding or announcing rates hikes as inflations become into a concern, it said, adding that inflation in India should trend lower through 2022.

  • Akhilesh Yadav in Noida today years after avoiding it due to ‘jinx’

    Samajwadi Party (SP) chief Akhilesh Yadav is scheduled to address a press conference in Noida on February 3 as part of his poll campaign in Western Uttar Pradesh.

    The seven-phase Uttar Pradesh election beginning February 10 is considered to be a fight between the incumbent Bharatiya Janata Party (BJP) and Yadav-led Samajwadi Party. Three seats of Gautam Buddh Nagar district – Noida, Jewar, and Dadri –  will go to the polls in the first phase on February 10.This will be Yadav’s first visit to the Noida Gautam Buddha Nagar district which he avoided as chief minister purportedly because of the ‘jinx’ associated with the town neighboring Delhi.

    The political superstition that has stuck to Noida, another name for Gautam Buddh Nagar, for long popular as ‘Noida jinx’ is that visiting the town brings bad luck to chief ministers and hence are not re-elected.

    Yadav’s visit comes after Uttar Pradesh Chief Minister Yogi Adityanath’s remark that he feared visiting the town because of the superstition. Adityanath has been trashing the jinx by his regular visits to the NCR town, even ahead of the Uttar Pradesh polls. During one his of visits earlier this month, Adityanath said that he would beat the “Noida jinx” and come back to power, unlike his predecessors.

    Prime Minister Narendra Modi also criticised leaaders believing in the jinx at his virtual rally addressing voters of western Uttar Pradesh earlier this week.

    Yadav stayed away from Noida as chief minister between 2012 and 2017. He even skipped the Asian Development Bank Summit held in Noida in May 2013. Then Prime Minister Manmohan Singh was the chief guest at the event. Yadav would often inaugurate projects in the town virtually. In April 2013, he launched the Rs 3,300-crore development projects, including access to the six-lane Yamuna Expressway, through a video link from Lucknow.

    Yadav even met family members of Dadri lynching victim Mohammad Akhlaq in Lucknow, instead of visiting the family in Dadri. Before him, other Uttar Pradesh Chief Ministers, including, Mulayam Singh Yadav, Kalyan Singh, ND Tiwari, and Rajnath Singh avoided going to Noida as well.

    After his defeat in 2017 assembly polls, Yadav, while on his way to Delhi, briefly stopped  in Noida for five minutes to greet party workers.

  • Sensex climbs 696 points, Nifty ends at 17,780 as Budget cheer continues; banks, financial stocks gain

    The frontline equity indices on the BSE and National Stock Exchange (NSE) settled higher for the third consecutive session, closing with over 1.1 per cent gains on Wednesday as the post-Budget rally continued for the second session with intense buying in banking and financial stocks amid supportive global cues.

    The S&P BSE Sensex surged 695.76 points (1.18 per cent) to end at 59,558.33 while the Nifty 50 rose 203.15 points (1.16 per cent) to settle at 17,780.00. Both the indices had opened over 0.5 per cent higher earlier in the day and extended their gains as the trade progressed.

    On the Sensex pack, IndusInd Bank and Bajaj Finserv were the top gainers of the day ending with over 5 per cent gains. They were followed by HCL Technologes, Bajaj Finance, Kotak Mahindra Bank, Axis Bank, Dr. Reddy’s Laboratories, HDFC Bank and Wipro. On the other hand, Tech Mahindra, Nestle India, Ultratech Cement, Maruti Suzuki India, Larsen & Toubro (L&T) and Sun Pharamaceutical Industries were the biggest laggards.

  • Dalal Street cheers Union Budget as Sensex climbs 848 points, Nifty settles at 17,577

    The benchmark equity indices on the BSE and National Stock Exchange (NSE) ended nearly 1.5 per cent higher following a volatile session of trade on the Budget day as market participants reacted positively to the big infrastructure boost in the Budget 2022 delivered by Finance Minister Nirmala Sitharaman.

    The S&P BSE Sensex rose 848.40 points (1.46 per cent) to settle at 58,862.57 while the Nifty 50 climbed 237.00 points (1.37 per cent) to end at 17,576.85. Earlier in the day both the indices opened over 0.8 per cent higher and rose around 1.7 per cent with the Sensex hitting a high of 59,032.20 and Nifty touching 17,622.40 during the FM’s budget speech.

  • Power consumption grows 2.6% in January

    India’s power consumption grew marginally at 2.6 per cent year-on-year in January to 112.67 billion units (BU), showing the impact of local restrictions imposed by states amid the third wave of COVID-19.

    Power consumption in the entire January last year was 109.76 BU, which was 4.4 per cent higher than 105.15 BU in January 2020, as per the power ministry data.According to the data, peak power demand met or highest supply in a day rose to 192.07GW in the month under review compared to 189.39 GW in January 2021, and 170.97 GW in January 2020.

    Experts are of the view that the slowdown in power consumption growth in the fortnight of January has shown the impact of local restrictions imposed by states amid the third wave of COVID-19.

    They opined that the local restriction had affected industrial and commercial demand. The third wave of the pandemic hit the country in January 2022, which has forced many states to impose local restrictions like night and weekend curfews.

    They have also taken measures like banning dining in bars and restaurants. The experts opined that the power demand and consumption would improve in the coming months as many states are now lifting local restrictions after a decline in the number of positive cases.

    Power consumption had grown by 3.3 per cent in December 2021 to 109.17 BU from 105.62 BU in the year-ago period. In November 2021, power consumption grew by 2.5 per cent to 99.32 BU from 96.88 BU a year ago.

    In November 2021, power consumption grew by 2.5 per cent to 99.32 BU from 96.88 BU a year ago. Many states had imposed lockdown restrictions after the second wave of the pandemic in April 2021, which affected the recovery in commercial and industrial power demand.

    Curbs were gradually lifted as the number of COVID cases fell. Curbs were gradually lifted as the number of COVID cases fell. Power consumption witnessed a 6.6 per cent year-on-year growth in May 2021 at 108.80 BU, from 102.08 BU in the same month of 2020.

    In June 2021, it grew nearly 9 per cent to 114.48 BU, compared to 105.08 BU in the same month in 2020. In June 2021, it grew nearly 9 per cent to 114.48 BU, compared to 105.08 BU in the same month in 2020.

    In July 2021, it rose to 123.72 BU from 112.14 BU year-on-year, while in August, power consumption surged by over 17 per cent to 127.88 BU compared to 109.21 BU in the same month a year back.Power consumption in September 2021 witnessed flat growth at 112.43 BU, mainly due to the delayed monsoon. In October 2021, power consumption grew at 3.3 per cent to 112.79 BU from 109.17 BU in the same month in 2020.

  • Not just IPO investors, even Warren Buffett is losing money in Paytm

    The collapse in the shares of Paytm following India’s largest initial public offering is proving an expensive lesson for the firm’s early backers.

    Paytm shares have tumbled 58% since the stock listed on Nov. 18. That’s cut the valuation of its parent One 97 Communications Ltd. to $7.8 billion from $20 billion.

    SoftBank Group Corp.’s 2017 investment valued the Indian company at about $7 billion, according to people familiar with the matter. Berkshire Hathaway Inc. invested in One 97 when the company was valued at more than $10 billion in 2018, and T. Rowe Price Group Inc. invested at a $16 billion valuation the following year, the people said.

    Paytm is struggling to convince investors and analysts alike of the potential for the digital payment giant’s business model. Losses widened to 4.74 billion rupees ($63 million) in the July-to-September quarter from a year ago amid rising expenses. The plunge in its shares amid a global equity selloff has also cast a shadow over the prospects for technology firms preparing to go public in the Indian market. More than 40% of firms that sold shares for the first time in India last year are under water.

    A representative for Paytm said by email that the effective cost of SoftBank’s 17.47% stake in the company is Rs 800 per share and for Ant Group it’s Rs 330 per share, declining to comment further on valuations. The stock closed at Rs 903.05 on Friday. Jack Ma’s Ant is the biggest shareholder with a 25% stake.

    SoftBank and T. Rowe Price declined to comment, while representatives at Berkshire Hathaway and Ant didn’t respond to requests for comment.

    Paytm raised $2.5 billion in its IPO, which was priced at the top of a marketed range. Its debut was one of the worst by a major technology firm since the dot-com bubble era of the late 1990s. Pre-IPO investors have a one-year lock-in that expires in November, according to its offer document. Paytm provides digital loans, insurance, wealth management and stockbroking services.

    Warren Buffett is losing money

  • India’s 2022 steel consumption seen strong amid muted prices, infra push

    The government’s thrust on infrastructure, coupled with an increase in demand from the construction, engineering, and other sectors, is expected to push up domestic steel consumption in 2022, according to brokerages and rating agencies.

    The country’s consumption is expected to jump to 111 million tonnes (mt) in calendar year 2022 (CY22) after a severely impacted CY20, which saw steel consumption falling to 89.3 mt, CARE Ratings said in a recent report.

    India’s steel consumption numbers for CY21 could be around 104 mt, which would mean a 17 per cent increase from last year. Between April-November 2021, the consumption was 66 mt, up from 55 mt in the corresponding period of 2020.

    The US recently announced a $1-trillion infrastructure spending, which could substantially boost the country’s steel consumption, thereby keeping steel prices firm in the US market, brokerages said.

    On the other hand, China, the world’s largest consumer and producer of steel, due to continued production curbs to curtail carbon emissions, has tapered exports, in turn keeping world export prices at elevated levels, they said.

    Apart from the production and consumption equation of steel, supply chain performance and logistical arrangements are expected to play a crucial role in 2022 amid the ongoing pandemic, industry officials pointed out.

    “Companies and countries across the globe have taken measures to strengthen their logistics but no one knows whether what has been done is enough. That would only be clear as we walk through 2022,” said a senior official with a primary steel producer on the condition of anonymity.

    Between financial years (FY) 22-25, a total crude steel capacity of about 25 mt is likely to be added to the domestic market. Of it, 7-8 mt would come in during FY22, while the remaining would take another 2-3 years to get commissioned. Due to this, though domestic consumption is likely to be stronger for 2022, compared to previous years, prices may remain slightly muted, brokerages said.

    In December, domestic hot-rolled-coil price in traders’ market slipped further (1 per cent week-on-week) to Rs 65,590 per tonne, mainly due to subdued domestic demand, particularly for flat products, an Edelweiss report said.

    “In Q3FY22, we have also seen increased pressure on domestic prices as export realisation is again at a discount and demand in the Southeast Asia region has remained lacklustre due to re-emergence of Covid cases. Alongside, the recent uptick in Chinese domestic prices raises hopes of a positive rub-off on the domestic market,” the report added.

  • West Bengal announces fresh curbs, restricts flights from Mumbai, Delhi

    The West Bengal government on Sunday said flights from Mumbai and Delhi were being restricted to twice a week from January 5 as new Covid cases in the state mounted to 6,153 from 1,089 on December 29.

    In a letter to the civil aviation ministry, the state government said that in view of the rising Covid cases it had decided that with effect from January 5, all incoming domestic flights from Mumbai and Delhi to West Bengal will be temporarily allowed only twice a week on Monday and Friday till further orders.

    This is among a set of fresh curbs announced by Chief Secretary H K Dwivedi after a panel of the state disaster management authority recommended review of the current restrictions and relaxations amid concerns of “high rate of infectivity” and multiple cases of the Omicron variant.

    The restrictions are effective Monday and will be in force till January 15.

    Dwivedi said direct flights from the UK were being temporarily suspended from tomorrow. The Civil Aviation Ministry had already been informed, the chief secretary said.

    Till January 1, 19 had tested positive for Omicron, and 15 were active. Dwivedi, however, reassured on hospital bed availability and said the total bed occupancy was around 1.5 per cent. Those who are asymptomatic or have mild symptoms can isolate at home, he said.

    The order includes an advisory to the management of industries, factories, mills, tea gardens, and other establishments to ensure strict compliance of Covid-appropriate norms and “only double vaccinated workers” to be allowed to enter the work sites.

    All academic activities in schools, colleges, and universities are to remain closed and only administrative activities will be permitted with 50 per cent employees at a time.

    Government offices, including public undertakings, will function with 50 per cent of employees at a time, and work from home is encouraged. The same holds for private offices and establishments.

    Swimming pools, spas, gyms, beauty parlors, saloons, wellness centres, entertainment parks, zoos, and tourist places will be closed.

    Shopping malls and market complexes will, however, function with capacity not exceeding 50 per cent and till 10 pm. Similarly, restaurants and bars have been allowed to operate with 50 per cent capacity and till 10 pm.

    Cinema halls and theatre halls, too, will operate with 50 per cent seating capacity and up to 10 pm.

    The maximum number of people at meetings and conferences has been limited to 200 people at a time or 50 per cent seating capacity of the hall. The number of people at social, religious and cultural gatherings has been capped at 50.

    As far as public transport is concerned, local trains will operate with 50 per cent seating capacity and up to 7 pm; metro services will operate with 50 per cent seating capacity and as per usual operational time.

    Further, the movement of people and vehicles and public gatherings is prohibited between 10 pm to 5 am and only essential and emergency services are permitted.

  • Capital investment to pick up in old economy; decent growth expected in FY23: Jayanth R Varma

    Varma, who is also a member of the Monetary Policy Committee (MPC) of the Reserve Bank, in an interview to PTI said that inflation is a matter of concern, but as of now it is the persistence of inflation rather than its level that is a matter of concern.

    According to Varma, the pre-pandemic level of economic activity has already been surpassed, and the rest of this financial year should also see further recovery.

    He noted that calendar year 2021 saw dozens of new economy companies receive large funding both in private and public equity markets and these companies would have positive spillover effects into the rest of the economy as well.

    “I am hopeful that in a few quarters from now, capital investment would also begin to pick up even in the old economy,” the eminent economist said.

    India is contemplating bringing a bill in Parliament to deal with the challenges posed by the unregulated cryptocurrencies. Currently, there are no particular regulations or any ban on use of cryptocurrencies in the country.

    Asked about the impact of ‘taper tantrum’ or withdrawal of monetary stimulus by the US Federal Reserve on India, he said the Indian economy is a lot more resilient on the external front than it was in 2013.

    Varma opined that in any case, using the interest rate to achieve an exchange rate objective would be inconsistent with the inflation targeting framework that is in place today.

    The taper tantrum had started in mid-2013 when the Fed hinted at reversing its easy monetary policy.