Week 27

Bird 😷

January 09, 2021

Good Morning,

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

This week's shorter than usual newsletter features recent updates on the Bird Flu outbreak, the coincidental 7% decline in Indian GDP and the slamming of the digital service tax. It also saw India battle it out in their Third Test against Australia. 

I hope you enjoy today's newsletter,

Now let’s get into the news.

Markets

Market News 

Green Green Green!

scored high on Friday as investors shifted their focus on the third-quarter earnings season. Tech Mahindra, Maruti Suzuki, Infosys, M&M, HCL Tech, and Sun Pharma were among the top gainers at the end of the week. In addition, Tata Consultancy Services rose significantly by 5.86% on Friday. Asian markets cruised high followed by positive European and American markets as well. The price of gold and crude oil rose as well, as commercial markets steadily reopen under COVID-19 guidelines. 

COVID-19

In our fight against COVID-19,

shared positive news, as their vaccination program is set-up and ready, and government-declared clinics will start administering vaccines. The two vaccines approved by the Government are Covishield and Covaxin. Seeing that the UK is suffering from a new variant, is the government's decision to resume flights to the UK a good one? 

Bird Flu! 

Not a great start... 

With COVID-19 ruling the world and producing new variants, a competitor wants to dominate the Indian markets, as the Indian Government warned states to prepare for a

. Kerala, Rajasthan, Madhya Pradesh, and Himachal Pradesh are the only states so far to confirm Bird Flu cases. The State informed local authorities to continue the distribution of poultry and to inform the general public that it is safe to consume after boiling/cooking. Similar to COVID-19 precautions, continuous cleansing of your vegetables, meat, and fruits, and regularly wearing a mask to avoid any spread. 

Seeing what's happening at the Capitol Building in the United States of America, a missing flight in Jakarta, a mutating virus, and a Bird Flu outbreak...2021 isn't off to a great start! As always, however, stay strong, we will get through this! 💪🏽

Unlucky Number 7?

Fiscal 

According to Reuters, India's

for the year ending in March is likely to be over 7% of the GDP, due to reduced revenue collections as a result of increased spending during the ongoing COVID-19 pandemic. Initially, the Indian Government had projected a fiscal deficit of 3.5% of the GDP, however, the COVID-19 relief plan saw government borrowing increase from INR 7.8 lakh crores to 12 lakh crores. These figures are purely estimates conducted by financial experts and analysts. The official fiscal deficit estimates will be announced by Finance Minister Nirmala Sitharaman on the 1st of February, alongside the budget plan for the upcoming financial year. 

GDP 

The decline doesn't stop there, as India is set to face its biggest annual contraction since 1952.

will shrink 7.7% in the financial year ending March 2021. This statistic will see India be one of the top declining countries in the Southeast Asia region. India with the second-highest number of COVID-19 cases faced one of the toughest lockdown measures, however despite the relaxation, businesses are unable to return to pre-COVID sales. Positively economists forecast India to bounce back strongly in the next financial year starting on April 1st with new budget plans and monetary support. Where do you think the country is going this year? Up or Down? 

DST

A

(DST) is a levy on the revenues of search engines, social media services, and online marketplaces. It functions similarly to the Goods and Service Tax (GST) and based on research, it applies at a standard 3% rate. Recently, India's adoption of the DST was brought under scrutiny by the US Trade Representative on claims that it discriminated against American digital services companies such as Netflix and Amazon. The Indian Government has dismissed any allegations, defending the levy on the basis that it creates a level playing field for businesses.

Sports

The 3rd Test 

Ahh, another week, another test performance to review. India v Australia,

saw Australian veteran Steve Smith reach an incredible century, however, India's Jadeja picked up four wickets to end Australia's run at 338 total runs. On Friday, the second day of the test, India suspended play at 96/2. Australia currently leads 197 runs after the end of day 2 on Saturday. Will it be an embarrassment for India again? Or will they make us proud? 

  Hockey 

In other sports news,

will resume competitive play after nearly a year break due to COVID-19. The competition will see India tour Chile for six matches later in January. The competition will prove beneficial in preparation for the upcoming Junior Women's Hockey World Cup later this year. 

Other News

1.

is planning to invest an additional INR 500 crore, and hire 1000 employees. 

2. On Friday, the 8th of January,

finally resumed after being suspended for 16 days. 

3. A 4.8% increase in Tesla's share saw

become the richest person on the plant surpassing Amazon CEO, Jeff Bezos. 

4. Following the horrific incidents in Washington DC, US President Donald Trump's Instagram, Facebook, and Twitter accounts have been

for an indefinite period. 

5. Budget carrier

started the use of robotic technology to clean and disinfect aircraft interiors, proving beneficial in a pandemic driven world. 

Quiz

Quiz time! 

What can be driven yet has no wheels and can be sliced yet still remain whole?

Hmmm.....Get thinking! 

See you next week!

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See you next week!

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Quiz Answer: a golf ball! 

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