Week 43

Mango! 🥭

May 15, 2021

Good Morning,

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

Before summarising the news, I want to wish a belated Eid Mubarak to all my Muslim readers! I also want to highlight the ongoing conflict in Palestine. Irrespective of which side you choose to support, it is important to remember the individuals who lost their lives in the conflict and to pray the situation is resolved soon. If you want further information on the ongoing dispute, check out my podcast (link below) where we dive into the facts of the conflict and present our opinions!

In India, COVID-19 cases are on the rise, big banks are pushing work out of India, and it's MANGO season! I hope you enjoy your Sunday! Have an amazing day :)

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Now let’s get into the news.

Markets

Markets

A dip! That's what

in India experienced this week as compared to last, as the second wave of fresh COVID-19 cases and the fear of a new Indian variant pushed India into extended lockdowns. The pace of vaccination and the slowdown in economic activity weighed significantly on investor sentiment. Thursday celebrated the end of the holy month of Ramadan, as Muslims across the world enjoyed the limited festivities of Eid amidst lockdown measures. Asian Paints, ITC, Nestle India, L&T, HUL, and Reliance Industries were the top gainers on Friday with shares rising as much as 8%. On the contrary, Induslnd Bank, M&M, Dr. Reddy's, SBI, and NTPC were among the top losers. According to market experts, the future of India's equity markets will follow the pace of vaccinations in the country, the trajectory of active COVID-19 cases, and the Government's management of resources to boost economic recovery in the country. In addition, the activity in global markets will also influence investor sentiment over the coming weeks. Lastly, the price of gold dropped by 0.13% while the price of crude oil shot up by over 2%. 

COVID-19

On Friday,

reported 3,43,144 new coronavirus cases, pushing India's total caseload past the 2.40 crore mark. The death toll rose to 2,62,317, on Friday, as India reported 4000 deaths in a single day! As a sign of hope, however, in the past 22 days, India's daily COVID-19 tally has plateaued over the three lakh mark, and over 3000 casualties for the fortnight. While I say a sign of hope, these numbers are extremely scary, and individuals should stay extremely safe! 

In other news, Dr. Reddy's Laboratories, the Indian partner of the Russian Direct Investment Fund (RDIF) stated that it has rolled out the

vaccine in Hyderabad, and across India as part of a limited pilot. The Sputnik V vaccine is a COVID-19 vaccine developed and manufactured in Russia. Dr.Reddy stated that the first consignment of the imported doses arrived in India on the 1st of May, and recieved regulatory clearance on the 13th of May by the Central Drugs Laboratory. A single dose of the Sputnik V vaccine will cost INR 955. Importing, manufacturing, enforcing and distributing the vaccine is India's biggest priority right now, and will prove extremely beneficial towards India's recovery from this second wave. 

As always, I hope everyone is keeping well, and if you haven't already been vaccinated, it is crucial to inquire into when a vaccine will be made available to you! Stay safe :) 

Shift 

Banks

As a result of the second wave, a number of

stationed in India were forced to move their work across the globe to other offices, as some of their Indian employees, unfortunately, suffered from COVID-19. Wall Street giant Morgan Stanley, which has 6000 employees in Mumbai and Bengaluru, highlighted that a small percentage of their employees were impacted due to the pandemic, however business was carrying on as usual. 

In addition, Goldman Sachs Bengaluru hosts 6000 employees, had a 48-hour impact as some of its employees were significantly affected by COVID-19 forcing work to quickly shift from the Indian offices to the London and Salt Lake City (Utah) offices. 

HSBC, one of the largest banks in the world, who employs 39,000 people in India stated that over 200 people in their Bengaluru office were affected by COVID-19 forcing work to be pushed to its China and Krakow offices. 

Lastly, Standard Chartered Bank that employs 25,000 people in India said that while some employees have been infected, the teams are working to meet client needs, and have provided support to ensure the smooth continuation of work from home. 

Royal Enfield

Popular two-wheeler manufacturer

has decided to temporarily halt production at its plants in Tamil Nadu due to the unprecedented situation arising due to COVID-19 and to ensure a safe working environment for all of its employees. In a statement, the company said that maintenance activity will take place at its manufacturing plants in Thiruvottiyur, Oragadam, and Vallam Vadagal. Given the local lockdown rules, the company understands that there will be a slowdown in retail operations, however, they are committed to cater to all the demands that arise.  

Mango!

Kisan Samman Nidhi Scheme 

On Friday, Prime Minister Narendra Modi released the 8th installment of over INR 20,000 crore to more than 9.5 crore beneficiaries under the Pradhan Mantri Kisan Samman Nidhi scheme, which is a scheme to support

across India through any financial difficulties they may be facing. Under the PM-Kisan scheme, a financial benefit of INR 6000 per year is provided to 14 crore eligible farmer families, payable in three equal 4-monthly installments of INR 2000 each. The money is transferred directly to the bank accounts of the farmer-beneficiaries. Due to COVID-19, the agriculture sector saw a major slowdown due to the risk of the virus spreading through crops and the massive drop in demand due to the lockdown measures in place. In addition, the farmer's protest against the new farmer's bill also highlighted a significant difficulty the farmers faced alongside the COVID-19 pandemic. Lastly, with the recent surge in cases and new lockdowns, farmers across India continue to struggle and battle through the pandemic. 

Alphonso

! Mango! Mango! It is that time of the year, it is mango season! India is the largest mango producer, and seeing that the fruit is one of the most popular fruits worldwide, India is looking to capitalize on mango exports this season! This year, India is looking to diversify the types of mangoes it exports, including varieties such as the classic Alphonso, Langda, Dussehri, Himsagar, and Zardalu. How many types of mangoes have you tried..? I didn't even know these many existed! India is also looking to expand its export market to reach countries such as the USA, EU, Nepal, Japan, South Korea, UAE, Australia, and Mauritius. While India is the largest producer of mangoes in the world, Pakistan and Mexico actually hold the largest shares of the export market, which India is trying to capture. Despite sales dropping last year due to the pandemic, a number of states across India including Utter Pradesh, Bihar, and Uttarakhand have stepped up efforts to ensure a successful mango season!

Do you like mangoes? I mean who doesn't...

😬

Other News

1. Japanese conglomerate

reported a record net profit of USD 37 billion in the fourth-quarter ending in March. 

2.

said it is looking to hire around 4000 experienced technologists in India this year. 

3. After 15 years, Wadia Group-owned Go Air is rebranding itself as

. 

4. Go Air has filed for an

(initial public offering) to raise INR 3600 crore. 

5. On Friday,

rose again by 29 paise (petrol) and 34 paise (diesel) accordingly. In Mumbai, petrol now costs INR 98.65 per liter, and diesel is INR 90.11 per liter. 

Quiz

Quiz time! Easy one for you... 

What two names of US capital cities rhyme but share no vowels?

Think think think! 

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Quiz Answer: Austin and Boston! 

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