Week 29

Vaccine 💉

January 23, 2021

Good Morning,

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

Lockdown has officially got me questioning the reality of life, as I sit here and write this newsletter. It feels like I am living in a simulation, as every day, I end up doing the same things...how's your lockdown going? Well, this week saw steady market performances, vaccine roll-outs, changes to policies, and a tech-driven controversy. This week, also, saw the US Presidential Inauguration which provided the funniest Bernie Sanders meme. I enjoyed scrolling through Twitter this week!  

I hope you enjoy today's newsletter,

Now let’s get into the news.

Markets

Market News

Despite edging the green zone for the week,

plummeted on Friday with BSE Sensex falling nearly 900 points due to a crumbling in bank and metal stocks. Axis Bank, Asian Paints, SBI, ICICI Bank, and Bajaj Finance were the top losers falling up to 4.63%. On the positive, however, Bajaj Auto, Infosys, Ultra Cemco, TCS, and HUL were the top gainers rising as much as 10.45%. After hitting all-time highs, stocks are bound to experience profit bookings and experience slight dips. Liquidation is strong and is a huge support for market performances. In addition, consumer demand levels are returning to pre-COVID levels, and the auto-sector is experiencing a significant demand surge. The price of gold rose 1.21%, while crude oil slumped 1.44%. 

COVID-19

After successfully rolling out the first vaccine last week, India has administered the COVID-19 vaccine to

, with more vaccinations conducted daily. The Government aims to have 50% of the population vaccinated by the end of April. Of the 3.81 lakh, 580 cases of adverse effects have been reported. 

In support,

are planning to buy COVID-19 vaccines for their employees to speed the process of vaccination, and ensure a smooth and healthy return to the workplace. Jindal Steel, Power Ltd, Mahindra Group, and ITC Ltd have begun initial checks on the availability of vaccines after the Government has vaccinated priority groups such as the elderly and healthcare heroes. India is currently rolling out the Oxford University-AstraZeneca vaccine (Covishield), which is being produced by the Serum Institute of India, and the Covaxin, produced by Bharat Biotech. 

On Tuesday, India announced that it will supply COVID-19 vaccines under

to Bhutan, Maldives, Bangladesh, Nepal, Myanmar, and Seychelles. The distribution will be in phased stages to ensure domestic requirements are met as well. Sri Lanka, Afghanistan, and Mauritius will also be on the list after necessary regulatory requirements are clear. 

Lastly, in other news,

is currently suspended from bringing passengers to Chennai until the 31st of January, after a passenger returning from Dubai tested positive for COVID-19. 

Time for a change...

LLP

A

 is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. In easier words, each partner is not responsible or liable for another partner's misconduct or negligence. The Limited Liability Partnership is set to be amended by the Indian government, with new propositions such as the decriminalization of various offenses, introducing a new concept called 'small LLP's', and permitting LLP's to issue non-convertible debentures. The corporate affairs ministry is seeking to amend the Act to improve the ease of doing business and to reduce any admin cluster. Any further comments or amendments can be submitted until the 2nd of February to the corporate affairs ministry.  

Against the change? 

Recently, the Health Ministry, Harsh Vardhan, proposed new

to the Cigarettes and Other Tobacco Products Act (COTPA) (2003. The amendments proposed disallows the retail sale of loose cigarettes, prohibits the sale of tobacco products to individuals below the age of 21, and limits the in-shop advertising and promotion of tobacco-related products. However, the proposed amendments were not welcomed nicely by the National Restaurant Association of India (NRAI), who feared the direct impact these amendments will have on the food and beverage sector. While restaurants can regulate the sale of tobacco products, it will be unfair to hold the restaurant liable if an individual guest lights a cigarette in violation of the rules. In addition, the new propositions will be an inconvenience for customers and reduce customer sentiments. What do you think? Physical wellbeing is a direct victim of the use of tobacco products, but will also rip a big hole in the pockets of tobacco-related companies. It's easy, health > wealth... 

Controversy

Whatsapp Controversy

The Indian Government recently asked

to withdraw its controversial privacy update and respect the information privacy and data security of Indian users. Recently, Facebook-owned Whatapp updated their data privacy policy, however, deferring policies for Europe and India made the Government question Whatsapp on discriminatory grounds. The update was more stringent in India than in Europe. On the other hand, however, the Indian Government also questioned the new update and whether data-sharing will expose Indian users to greater security risks and vulnerabilities. The growing discrimination, however, is of greater concern as India demands equal treatment from the tech giant.

Flipkart's SuperCoin Pay

India's own, Flipkart, recently introduced

to strengthen its pre-existing SuperCoin Rewards program. Ever used 'miles' to upgrade your flight ticket, or even purchase one? Flipkart's SuperCoin Rewards is similar, and its new Pay feature is designed to provide rewards and benefits to millions of customers who shop on the platform. Flipkart has partnered with over 5,000 retail outlets across India, where customers will be able to pay through SuperCoins (i.e. Reward points aka miles ;) Get shopping! It's always shopping season.

Molson Coors

One of North America's leading lager/beer makers has decided to put their India business on the market, signaling the company's intention of exiting the domestic market. Diminishing sales in India due to the pandemic plus inconsistent policies in states such as Bihar has forced

to exit the Indian beer market. At one point, the company had a 50% market share in the beer market in Bihar, however, the company's fortunes changed in 2016 when the Bihar Government banned the sale and consumption of all kinds of alcohol in the state. Molson Coors went from selling beer to happy Indian customers who scream "cheers", to a pandemic-driven fear, and now eagerly look for an Indian company to step in and steer...:(

Sports

Winner, Winner, Winner! 

India won! Despite being crippled with injuries, an impressive performance from our beloved athletes, India's Men's Cricket Team won the coveted

. In the fourth and final test match, India successfully chased an Australian-set 328-run target to win the series 2-1. Rishabh Pant, our home-grown hero, scored 89 runs in 138 balls (not-out) striking fear in the eyes of the Australian bowlers. As a sweet cherry on the top, India's win ended Australia's 32-year-old unbeaten run at the 'Fortress Gabba'. What a game, and what a day for our amazing nation! The Gabba dream, conquered by our Indian team. 

More cricket incoming...

After a few days of celebration, get the popcorn ready again as our Indian cricket team is set to

in an upcoming home Test series. While our young stars successfully dominated Australia, our veteran first team is scheduled to be back to face England. Virat Kohli, Hardik Pandya, and Ishant Sharma are set to bolster the Indian squad. Not a fan of the Test series? Don't worry, the four-Test series will be followed by a five-match T20I series and a three-match ODI contest that will conclude on the 28th of March, 2020. So much more cricket, to enjoy with tea and biscuit(s).   

Other News

1. India's top-wheeler maker,

, crossed a record 100-million units in production and is planning to launch 50 new products and upgrades over the next 5 years. 

2. India is set to produce a

for a fifth straight year in 2021/22, as farmers enjoyed surplus rains and government-backed export-incentives. 

3. French oil and gas giant,

is set to acquire a 20% stake in Adani Green Energy Ltd, the renewables subsidiary of Ahemdabad-based Adani Group. 

4. Five people, unfortunately, died after a

at a vaccine manufacture plant at Serum Institute of India. Luckily, however, no COVID-19 vaccines were affected. 

5. A positive from being stuck at home all day is a rise in India's

to USD 200 billion, which is a 20-year high. 

Quiz

Did you get last week's quiz? Hehe, well this is even tougher! 

I clean.

I protect.

My last four is seen in a connected series.

But my last three is usually seen on paper. 

What word am I? 

Get thinking! 

See you next week!

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See you next week!

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Quiz Answer: Blink 

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