Week 26

The Meta! 🔒

January 02, 2021

Good Morning,

Welcome! I hope you have your “Subah Kee Chai” ready and you're excited to read your weekly 10-minute digest. 

The first newsletter of 2021! I hope everyone enjoyed their New Year celebrations, and I hope everyone's new year resolutions are already in effect! This week saw positive market performances, a look back at the effect of COVID-19, key decisions made in the transport sector, and the F1 schedule! 

I hope you enjoy today's newsletter,

Now let’s get into the news.

Markets

Market News

Ahh, a new year, a fresh start, and a positive one for our equity markets! Both

continued a positive 8-day streak on Friday, after positive news about COVID-19 vaccine rollouts, and a completed Brexit deal. On Friday, ITC, TCS, M&M, SBI, and Sun Pharma were among the top gainers, with shares rising as much as 2.37%. On the contrary, ICICI Bank, Titan, Bajaj Finance, and HDFC Bank were the top losers at the end of the week falling by approximately 1.31%. Following the approval of the AstraZeneca and Oxford University COVID-19 vaccine for emergency use, both equity markets posted positive boosts, as investor certainty increased. 

In addition, on the 30th of December, the House of Commons, in the United Kingdom, approved the proposed trade deal with the European Union completing the long-awaited

referendum. The United Kingdom has finally left the European Union! The confirmed transition rallied global markets as well, as companies welcomed greater foreign investments. India will also seek greater collaboration with the United Kingdom seeing the country has finally become independent. 

Lastly, a notice for your accountants, the Indian Government extended the deadline to file your

for the financial year 2019-20 by 10 days to the 10th of January, 2021. So if you haven't yet completed your tax returns, you have some more time! 

COVID-19 

As mentioned earlier, the Drugs Controller General of India (DCGI), on Friday, granted the

, to be distributed by the Serum Institute of India (Covishield). The distribution process aims to be efficient and smooth, with over 96,000 vaccinators trained. In numbers, the Indian Government hopes to cover a population of 30 crores by July, with priority given to elderly citizens, and individuals with underlying health conditions. 

In addition, the Indian Government has further allowed

without any limits on the total value, to ensure the mass supply of COVID-19 vaccines without any regulatory hiccups. Global pharmaceutical companies are in advanced stages of bulk deployment of COVID-19 vaccines, and the road to defeating this pandemic is close to commencing! 

The 2020 Demon! 

Life-changing

While the world has entered 2021 with positive agendas, goals, aims, etc. our unwanted guest, COVID-19, is still present and in multiple new forms! If you have been living under a rock, this is the biggest catastrophe the world has faced since World War 2. The novel coronavirus has impacted individuals and businesses existentially, as our socially induced lives converted to home-forced lifestyles. While everyone hopes to return to the pre-COVID living, it can be concluded that a number of COVID-forced changes will remain permanent. As a summary, I have listed a few

, that are likely to remain permanent:

1. White-collar workers will get to stay at home more often, and working from home will begin to be accepted more normally. What will happen to all the empty offices?

2. Governments will play a larger role in the lives of citizens spending, owing, and development. Would this raise public debt, as a result, raise taxes? Would it also lead to greater inequality?

3. A rise in the closure of brick and mortar shops, and a greater shift to the digital world and online shopping.

4. A big positive, is the world finally realizing the importance of "going green" as a result of the pandemic. The grounding of flights, and the reduced oil consumption allowed the world to breathe and showcase its unpolluted beauty! As a result, what was initially environmentalists barking theories is now attracting global attention. Go Green, Stay Clean!

Approval

Positively,

are currently engaged with their Indian counterparts to commence the mass production of COVID-19 vaccines in India. Vaccine distribution has resulted in greater collaboration between countries, especially India and the United States of America. In addition, India and Mauritius are nearing the completion of a free trade agreement for the trade of goods and services. In commodities, India exports petroleum, pharmaceuticals, cotton, cereals, and electrical machinery to Mauritius. In return, the country imports iron, pearls, photographic instruments, and precious stones.

Transport Industry

Yeah, give me some more! 

is hiking its stake in AirAsia India from 51% to 83.67% for a deal worth USD 37.7 million. As a result, Tony Fernandes' AirAsia Group will have its share reduced from 49% to 16.33% accordingly. This agreement puts Tata Group in command of the budget airline carrier, and also in a prime position for their bid for Air India. Tata's dominance in the airline industry is significantly growing, as they are currently partnered with Singapore Airlines to run JV Vistara. The bid for Air India has been delayed, however, due to financial problems airlines are currently facing due to the COVID-19 pandemic. After the dissolution of Jet Airways two years ago, Air India is the only Indian carrier to fly to long-haul destinations, with Vistara recently commencing flights to the United Kingdom. If Tata Group successfully secures a deal for Air India, it will allow the greater expansion of Indian carriers to long-haul destinations. 

Call it off! 

At the close of 2020,

decided to call off their automotive joint venture due to global economic and business conditions caused by the global pandemic. Ford stated that it will continue to maintain its solo operations in India. Mahindra was to acquire Ford's business in India with both companies to produce new cars and SUVs, including electric vehicles. 

Tolls 

The Indian Government is set to make it mandatory for individuals to use the

on National Highways in an attempt to completely do away with any form of cash payments. 

Sports

The Sindhu Meta! 

World Badminton Champion,

, moved to the United Kingdom during the lockdown period to recommence her training program, and in a recent interview, she claimed that her decision was the "best decision she ever made"! With the new variant, is that true...? 

PV Sindhu, like other athletes, was forced to take a break from badminton due to COVID-19, resulting in the cancellation of a number of competitions, in particular the Olympic Games. After a long-induced break, but with regular training, she is set to make her comeback to professional badminton at two Thailand Open Tournaments on January 12th, 2021, and January 19th, 2021. Her praise for the United Kingdom stemmed from the high-intense training program, and the routine shift from her home country India. 

PV Sindhu, our Indian superstar, is currently ranked 7th in the world and is hoping to return to the top 5 before the postponed Olympic Games in 2021. 

Injury woes 

For the remaining two test games against Australia, Tamil Nadu's sensation, Thangarasu Natarajan, will replace

Umesh Yadav's injury adds to the growing list of injured Indian players, as Mohammed Shami left the pitch injured in the last test match. However, as a silver lining, injuries allow in-form youngsters such as Thangasuru to shine on the big stage! India's third Test will be played between the 7th and 11th of January, 2021 in Sydney, Australia. 

Let's get racing! 🏎️

On Friday,

, announced the start date for their 2021 season, hosting a total of 23 races. The first race will start in Australia on March 19th, 2021, and finish in Abu Dhabi in early December. F1 drivers will hit the track for the first-ever World Champion race in Saudi Arabia. With a total of 23 races, this schedule will be the longest in the history of the F1 World Championship. 

Other News

1. US President Donald Trump has extended the

along with other types of foreign work visas by an additional 3 months, impacting a large range of Indian job-seekers. The suspension will last till the 31st of March 2021. 

2. In December, the gross Goods and Services Tax (GST) collections reached a record high of

. 

3. The BMC, on Tuesday, announced that

will remain shut till the 15th of January, 2021. 

4. On Wednesday, the Civil Aviation Authority of India extended the

till the 31st of January, 2021. Only flights under specified Air Bubble Agreements will continue operations. Lastly, flights to and from the UK remain suspended till the 7th of January, 2021. 

5. Popular online game,

, crossed a total of 500 million downloads worldwide, making it the most popular Indian gaming app. 

Quiz

Starting off 2021 with another fun quiz! Let's get it! 

Put this on, 

And warm you'll be.

Take one-off,

And an emotion, you'll see.

What word am I? 🤔

See you next week!

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Quiz Answer: GLOVE (LOVE) 

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Written by: Adnan Bahrainwala (Founder of Subah Kee Chai)