Week 48

Lag! 🌱

July 10, 2021

Good Morning,

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

Wow! Despite this not being the 52nd Newsletter, exactly one year ago, today, I released my first ever newsletter for Subah Kee Chai! A lot has changed since then on this spinning rock, and in our proud Indian nation! Make a special kind of 'chai' for this one! This week covered the slowdown in crop yields, the new market entrants, and the boost in certain industries! I hope you have the best Sunday ever! 

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Markets

Markets

On Friday, both

tumbled into the red due to major losses in HDFC Bank, Reliance Industries, and TCS stocks. The 30-share BSE index ended 175 points lower, while the broader Nifty 50 dropped 28 points. Bajaj Auto was the top loser dropping approximately 2%, followed by TCS, HDFC Bank, Axis Bank, and Reliance Industries. On the positive, however, Tata Steel, Bajaj Finserv, Bharti Airtel, and NTPC were among the top gainers. Market experts stated that domestic equities traded on a weak note due to continued profit-booking by investors. The price of crude oil shot up almost 2.50%. 

The

took a turn on Thursday and dipped marginally from INR 47,989 per 10 gram to INR 47,810 per 10 gram. In the international market, gold was trading higher, while silver remained flat.

In the first week of July, India's

touched USD 8.4 billion, rising almost 63% as compared to the same period last year. At the same time, India's imports touched USD 11.5 billion in July, which is 95% more than the same period a year ago. India currently sits in a current account deficit at USD 3.1 billion.

Lastly, India's

rose by USD 1.013 billion to touch a lifetime high of USD 610.012 billion, as per the Reserve Bank of India (RBI). In addition, the country's reserve position with the IMF increased by USD 139 million to USD 5.105 billion.    

Crop Lag

Monsoon Rains

According to the Ministry of Agriculture & Farmers Welfare,

have planted 49.9 million hectares of crops, however, the crop yield dipped 10.43% from a year earlier. Experts claim that once monsoon rains taper off the percentage yield may dip even further. Farmers typically start planting summer-sown crops on the 1st of June, when monsoon rains usually reach India. Planting then continues until early August. 

Rice: The key summer crop. Farmers planted rice over 11.5 million hectares as of the 9th of July. Last year, the same number sat at 12.6 million hectares. 

Cotton: The area planted with cotton was at 8.6 million hectares versus 10.5 million hectares in the previous year. 

Sugarcane: the world's second bigger sugar producer remains unchanged at 5.3 million hectares. 

This year, India received 5% below average rainfall since the 1st of June, when the four-month rainy season began. Monsoon rains were 46% below average in the last week. India's top weather official, however, has predicted an increase in rainfall later next week. Farming is a key industry in India and accounts for almost 15% of India's 2.7 trillion dollar economy.   

Ignite

Zippo

The iconic American

lighters expect to ignite the Indian market, as they plan to commence business in the world's second most populated nation. The lighter's trademark 'click' sound has been part of countless Hollywood and even Bollywood movies! Seen as a distinct symbol of American manufacturing, Zippo wants to create a strong connection with its Indian consumers and establish a strong presence in the market. Zippo has sold over 60 crore lighters since it began operations nearly nine decades ago in 1932. Thousands of different styles and designs have been made over the years, and the company has also designed custom lighters for the NFL and the US Military. The company has been in India for some years, however only through certain distributors, forcing a limited presence. With the creation of a direct presence, the company now hopes to gain a wider market share in India. Its lighters are prices between INR 2149 and INR 9499. Zippo will be retailing its products through online channels, while also exploring opportunities to open brand stores. 

Upwards

IT Industry 

On Wednesday, the

posted an 11% revenue growth indicating a strong recovery following a slowdown in business due to the COVID-19 pandemic. An increase in outsourcing and the acceleration of digital transformation services in sectors such as banking, financial services, and insurance, were among the key reasons for the positive industry performance. In numbers, the IT services industry grew 2.7% to USD 99 billion in 2020-21. The pandemic has opened up additional opportunities in digital services due to the surge in remote working, e-commerce, and automated services. Apart from a rise in IT services, commercial IT product companies witnessed a rapid rise in sales, as individuals sought new laptops, desktops, phones, and other tech products to adjust to the work-from-home environment. Is this change in the working environment permanent? What do you think? 

Proctor & Gamble (P&G) 

On Tuesday, Haryana Health Minister, Anil Vij received a cheque worth INR 1 crore from

to support the state's fight against COVID-19. P&G's South Asia Corporate Affair Head, Sachin Saini shared that the amount being given to the state of Haryana is under the company's corporate social responsibility (CSR). In its simplest definition, CSR is a company's commitment to managing the social, economic, and environmental effects of its operations in line with the public's concerns. Have you ever considered a company's commitment to social issues before buying a product? 

Other News

1. Mumbai's International Airport registered an increase of approximately

in June 2021, as compared to May 2021. 

2. Over 45% of working individuals surveyed experienced a

due to the pandemic. 

3. The

six-match ODI Series against Sri Lanka is set to start on the 18th of July, after a COVID-19 outbreak in the home team camp forced a postponement. 

4. In the ongoing 2020-21 marketing year ending September, India's sugar mills exported

. 

5. On Wednesday,

said that he has resigned from the Union Cabinet ahead of the scheduled Cabinet reshuffle.  

Quiz

Quiz time! 

What has rivers but no water, cities but no buildings, forests but no trees, deserts but no sand, and mountains but no rocks?

Think :)

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Quiz Answer: A Map!

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