Week 33

Motivation! 😤

February 20, 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, despite suffering poor market performances, saw a boom in the crypto world, COVID-19 vaccine rollouts, ease on regulations, and a call for greater investment! If you haven't already checked out my podcast, the link is below! Go check it out, and tell your friends to subscribe. February blew past! Time is moving, don't get left behind! Keep grinding, whatever you're working on is going to work 💪.

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Now let’s get into the news.

Markets

Markets

Red!

fell for the fifth day in a row on Friday, with BSE Sensex falling over 400 points due to stagnant banking and auto stocks amid negative cues from global markets. Similarly, Nifty 50 slipped 125 points on Friday as well. ONGC, Axis Bank, SBI, ICICI Bank, and Maruti were among the top losers this week falling as much as 5.06%. As a silver lining, however, Induslnd Bank, HUL, Dr. Reddy, Reliance, and TCS were the top gainers rising up to 2.15%. According to market analysts, the reason for poor market performances is the regular profit-booking by investors after previous bullish sessions. On the global front, US, European and Asian markets finished lower than usual forcing domestic market prices down. The price of gold and crude oil slumped as well due to falling demand. 

It isn't all negative, however, as

grew by 6.16% to USD 27.45 billion in January. With imports sitting at USD 42 billion, it reduces India's trade deficit to USD 14.54 billion. With how the past year has gone, it is positive seeing growing market performances on a domestic and global level.

Crypto

Flying high!

hit yet another record high on Friday, breaking through a market capitalization value of USD 1 trillion! Breathtakingly, the world's most popular cryptocurrency jumped 2.6% to an all-time high of USD 52,932. In comparison, the price of one Bitcoin one year ago was USD 9,500...🤯. Why the price increase? One of the main reasons fuelling Bitcoin's success is the wider acceptance by mainstream investors and companies such as Tesla, Mastercard, and BNY Mellon. The demand for Bitcoin is rapidly growing, and crypto-analysts believe the market is just getting started.

Don't have USD 52,000 to invest in Bitcoin? Popular types of

are picking up great attention, and our super cheap too!  Altcoins, or in simpler words, alternative cryptocurrencies are cheaper compared to Bitcoin, and buyers are regularly investing in new Altcoins hoping to see the same profits as Bitcoin. Popular Altcoins include Ethereum, Ripple (XRP), Stellar Lumens (XLM), Binance Coin (BNB), and Tron (TRX), all of which have witnessed a 4-5x growth in the last 30 days. Are you going to invest in any Altcoins? The key to success lies in the power of discussion...the more you become aware of the sentiment of the market (the vibe), the greater the success. If you do want to discuss cryptos, make sure you reply back to the email and we can chat!  

COVID-19

Despite suffering the world's second-largest COVID-19 outbreak, life in India is almost

...? Shopping malls, cinemas, gyms, restaurants, and hair salons are buzzing again. With a rapid vaccine roll-out programme, what fuelled India's low death and infection rate over the past month? New transmissions dropped by 90% from September, and the death rate fell from 1000 a day in September, to only a few 100 presently. Scientists are puzzled by the steady decline and have questioned whether the statistics are affected by low rates of testing in rural areas in India. However, the low number of patients in COVID wards is factual proof that maybe the country's COVID infection rate is actually dropping. Other epidemiologists also suggest the nation may have reached herd immunity. It is important to note, that while the nation may seem to return to normality, a number of individuals are still in need of the COVID-vaccine, and a majority of the population are still at risk of contracting new variants of the virus. Be safe! Stay Healthy!

Lastly, as of Friday evening, India has administered more than

in 34 days becoming the second-fastest nation in the world to cross the milestone in the fight against this ravaging global pandemic. The USA achieved this milestone in just under 31 days. Currently, India averages 10,000 vaccinations every day, however, the country is hoping to raise that number to 40,000-50,000 vaccinations every day. 

Ease...

The Indian Government, while criticized for a number of decisions, has taken multiple steps during a global pandemic to help stabilize the Indian economy and allow businesses to return back to a pre-COVID level. 

  Compensation 

One decision, in particular, has been the provision of GST compensation to states across India to help fund any requirements during the pandemic. In the past four months, the Government of India has released INR 1 lakh crore to states and union territories to meet the GST compensation shortfall. Arunachal Pradesh, Manipur, Mizoram, Nagaland, and Sikkim did not receive this compensation, however, as they did not suffer a gap in GST revenue. It is important to note, that to accommodate the GST compensation shortfall, the Central Government has borrowed INR 1 lakh crore through a special borrowing window at an average interest rate of 4.83%. In simpler terms, the government has borrowed money from bondholders and government stock to compensate for the low GST revenue during the pandemic.

Fare band! 

Civil Aviation Minister, Hardeep Singh Puri, in a recent meeting, stated that the Government may remove the previously imposed 'fare band' along with other restrictions currently placed on the aviation sector. The fare bands, including a floor and ceiling price, were introduced to protect consumers and airlines from dipping demand in the aviation sector when public air travel resumed. The decision comes after the domestic aviation sector witnessed a rapid rise in demand as lockdown rules were relaxed in major states across the country. In a statement, Hardeep Singh Puri said domestic air traffic reached about 3 lakh passengers a day and is continuing to rise. How many flights have you taken during the pandemic?

Motivation!  

In an attempt to further boost economic activity, the Indian Government along with other ministers have been motivating and encouraging investors and businesses. 

Animal spirit 🤑

On Saturday, Finance Minister Nirmala Sitharaman urged Indian businesses and companies to unleash

and bring in fresh investment to boost India's development and make it one of the fastest-growing economies in the world. She highlighted that the Government has taken several steps including a reduction in the corporate tax rate to encourage greater investment. The term 'animal investors' is actually a phrase developed by famous economist John Maynard Keynes to highlight investor's confidence in taking action in terms of investment. In regard to future development, is India rising too quickly? Will we have the resources to support such an advanced system for so many people? What about sectors that need revival? Will this call for greater investment support them?

Work Together

In addition, Prime Minister Narendra Modi called for greater

between the Central Government and State Governments to boost further economic growth. Virtually addressing the Niti Aayog governing council, the Prime Minister promoted the initiatives taken by the Central Government and promised it will provide an opportunity for everyone to participate in building the nation to its full potential. In his speech, PM Modi highlighted the close collaboration between states to handle the COVID-19 pandemic and the vaccine roll-out program. When understanding government systems, it is interesting to understand the divide between parties, the public, and individuals. Compromise is a powerful man's kryptonite, and forcing two opposing parties to agree can sometimes be difficult. Greater collaboration requires compromise, and as a fairly divided nation, can Indian states collaborate to boost economic growth?  

Sports 

India v England: Test 2 

The

between England and India is currently tied 1-1, as the players prepare for the third Test commencing on the 24th of February. What a second test, and what a performance from Indian all-rounder Ravichandran Ashwin. The veteran bowler first gave a lesson on how to bowl after picking up 8 wickets over two innings. This was followed by a batting masterclass, as Ashwin scored 106 runs in 148 balls. This marked the prime bowler's fifth Test century. In addition, it was the third time in Ashwin's Test career where he picked up five wickets and simultaneously scored a century. Only England legend, Ian Botham, stands ahead of him with five such efforts in his career. As mentioned earlier, the third Test is starting on the 24th of February until the 28th of February. A teeth-biting Test match awaits! Let's go India! 

IPL Auction 2021/22

On Thursday, the Indian Premier League held their annual

. An auction day where IPL teams meet and bid on players they want to buy to boost their squad! South African all-rounder Chris Morris became the most expensive player in IPL history as the Royal Challengers Bangalore paid INR 16.25 crore for him. The previous record was held by the Delhi Daredevils when they purchased Indian veteran Yuvraj Singh for INR 16 crore in 2015. England all-rounder Moeen Ali also went for an expensive price, INR 7 crore to the Chennai Super Kings. In contrast, however, Australian Steve Smith, who was released by the Rajasthan Royals, was bought by the Delhi Capitals for INR 2.20 crore, only 20 lakh more than his base price (INR 2 crore). 

Other News

1. On Friday, Ingka Group, which includes furniture giant

, invested INR 5,500 crore to build an Ikea mall in Noida, Uttar Pradesh. 

2.

prices have gone up again in Delhi and other cities across India. On Thursday, the price of petrol stood at INR 89.88 per litre. Similarly, the price of diesel stood at INR 80.27 per litre. 

3.

has emerged as the front-runner to secure a USD 1.5 billion deal with Pfizer to outsource any IT-related requirements for the pharmaceutical company. 

4.

, on Monday, stated that it will go 100% electric by 2039. 

5. Rising fuel and tyre prices resulted in a sharp increase in

. In the last six weeks, truck rentals have jumped 13%. 

Quiz

Quiz, Quiz, Quiz! It's a vintage one...let's see if you get it 

A dagger thrust at my own heart 

Dictates the way I'm swayed 

Left I stand, and right I yield 

To the twisting of the blade. 

What am I?

Get thinking! 

See you next week!

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Quiz Answer: A padlock! 

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