Category: Personal Finance

5 Pharma Company Stocks Working On COVID-19 Vaccines

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5 Pharma Company Stocks Working on a Coronavirus Vaccine

Pharma Company Current Market Price Vaccine
Dr. Reddy’s Laboratories Rs 4,903 Sputnik V
Wockhardt Rs 419 Sputnik V
Panacea Biotec Rs 312 Sputnik V
Cadila Healthcare Rs 552 ZyCov-D
Cipla Rs 944 76. Moderna

Dr. Reddy's Laboratories

Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories stock is in the spotlight today as the pharma giant announced that it has reached an agreement to sell its rights to an anti-cancer medication to Citius Pharmaceuticals of the United States. Apart from that, the corporation has stated that it will launch the Sputnik V vaccine, which is made in India, in India between September and October of this year.

If the Sputnik V vaccine gains widespread approval, it will benefit the company in the medium term, especially if it becomes a big exporter this year.

Despite the fact that pricing pressure in the US markets has been easing, the incoming administration in the United States has a track record of lowering medicine prices. If this were to happen on a regular basis, export margins might be harmed. Because of the low margins in Q1-FY22, the price risk has resurfaced.

Dr. Reddy’s Laboratories exercised stock options and distributed 14,284 fully paid up equity shares worth Rs 7.28 crore to various workers. According to a regulatory filing, the ESOP consists of 6,774 equity shares of Rs 5 each under the Dr. Reddy’s Employees Stock Option Scheme and 7,510 equity shares of Rs 5 each under the ADR Stock Option Scheme.

The stock returned 86.74 percent over three years, compared to 48.94 percent for the Nifty 100. Over a three-year period, the stock achieved an 86.74 percent return, compared to 36.87 percent for Nifty Pharma.

Wockhardt

Wockhardt

Wockhardt previously announced that it had reached an agreement for the manufacture and supply of the Sputnik V/Sputnik Light vaccine against Covid-19 with Enso Healthcare DMCC (Enso), a company based in Dubai, UAE, and Human Vaccine LLC (HV), a wholly owned subsidiary of the Russian Federation’s sovereign wealth fund (RDIF).

The single-dose Sputnik Light Covid-19 vaccine is likely to launch shortly in India, according to Russian diplomat Nikolay Kudashev, as quoted by news agency ANI.

Only 4.14 percent of trading sessions in the last 16 years had intraday drops of more than 5%. In the fiscal year ended March 31, 2021, the company delivered a ROE of 20.31 percent, surpassing its five-year average of -2.56 percent. The company’s QoQ revenue increase was 34.67 percent, the greatest in the prior three years. Over a three-year period, the stock returned -37.79 percent, while Nifty Pharma returned 36.87 percent to investors.

Panacea Biotec

Panacea Biotec

Panacea Biotec’s stock jumped 5.74 percent to Rs 311.50 after the business announced the first shipment of 1 million doses of the second component of Panacea Biotec’s Russian Sputnik V coronavirus vaccine for sale in India.

This is the first batch of the company’s second component, which is manufactured and supplied in India. Panacea Biotec’s state-of-the-art vaccine manufacturing plant in Himachal Pradesh produced the doses for the second component of Sputnik V.

Stock returned 20.82 percent over three years, compared to 39.62 percent for the Nifty Smallcap 100. Over a three-year period, the stock returned 20.82 percent, while Nifty Pharma returned 36.87 percent to investors.

Cipla

Cipla

The Moderna vaccine will be available as a ready-to-use injectable vaccine starting in. After the vial is opened, it can be stored for seven months at a specified temperature and for 30 days at room temperature.

Nonetheless, the company’s Chief Monetary Officer has acknowledged that there is currently “nothing conclusive.”

Moderna and the Indian government are working together to determine the vaccine’s indemnification points. 14 days following the first dosage, the Moderna vaccine had a 94.1 percent efficacy rate.

Cipla’s web revenue increased by 24% year over year in the second quarter of 2021. The company’s revenue also increased by 27% year over year, thanks to a jump in demand for Covid-19 medications as a result of the pandemic’s second wave.

With Remdesivir, Favipiravir, and Toclizumab, the business has been aggressive in creating a Covid-care portfolio. As covid cases rise again, their influence should be noticeable until the first half of FY 22. The company has an opportunity to pursue because one of its primary advantages is its inexpensive price.

Cadila Healthcare

Cadila Healthcare

According to a health ministry official, Cadila Healthcare, a pharmaceutical business, would begin providing coronavirus vaccine to children aged 12 to 17 in October.

Before the Zydus Cadila vaccine is handed out in October, the details of the Covid-19 immunization for youngsters aged 12 to 17, including prioritizing those with health difficulties, will be announced, according to reports.

According to the Department of Biotechnology (DBT), ZyCoV-D is the world’s first DNA-based coronavirus vaccine, which when administered creates the SARS-CoV-2 virus’s spike protein and stimulates an immune response that aids in disease prevention and viral clearance.

The stock returned 30.73 percent over three years, compared to 48.94 percent for the Nifty 100.

Disclaimer

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only and is picked from the brokerage report of Sharekhan.



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Gold steadies below $1,800 as firm dollar, yields weigh, BFSI News, ET BFSI

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Gold prices steadied on Wednesday, after slipping 1.6% in the previous session when it breached the key psychological level of $1,800, as gains in the dollar and a rise in US Treasury yields hurt bullion’s appeal.

FUNDAMENTALS
Spot gold rose 0.1% to $1,796.03 per ounce by 0116 GMT, hovering slightly above the more than one-week low of $1,791.90 hit on Tuesday.

US gold futures were steady at $1,799.40.

The dollar hovered near a one-week peak against major peers.

The benchmark 10-year Treasury note rose as high as 1.385% on Tuesday for the first time since mid-July, increasing the opportunity cost of holding non-interest bearing bullion.

US President Joe Biden will present on Thursday a six-pronged strategy intended to fight the spread of the Delta coronavirus variant and increase vaccinations.

Japan’s economy grew faster than the initially estimated in the April-June quarter, helped by solid capital expenditure, although a resurgence in COVID-19 is undermining service-sector consumption and clouding the outlook.

Russia’s Nornickel, world’s largest producer of palladium and high-grade nickel, has extracted additional metals from waste products as part of new technology it tested to support its 2021 output from its Arctic mines that were hit by flooding, it said on Tuesday.

Venezuela’s gold reserves fell by three tonnes in the first half of 2021 to their lowest level in 50 years, central bank data showed on Tuesday, as President Nicolas Maduro’s cash-strapped government continues selling gold as a source of income.

Silver rose 0.1% to $24.32 per ounce, platinum edged 0.3% higher to $1,001.36 and palladium was up 0.2% to $2,376.37.



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SGX Nifty up 45 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

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Domestic indices look set to open on a positive note on Wednesday. But indecisiveness among market participants at highs may keep any such gains capped. Asian markets are largely mixed as the dollar hovered near a week’s high level. US stocks closed mostly lower in overnight trade. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a positive start
Nifty futures on Singapore Exchange traded 46.5 points, or 0.27 per cent, higher at 17,425.50, signaling that Dalal Street was headed for a positive start on Wednesday.

  • Tech View: Nifty50 on Tuesday snapped a three-day winning run and formed an indecisive candle on the daily scale, the second time in a row, suggesting a halt in the positive momentum.
  • India VIX: The fear gauge gained eased over a per cent to 14.90 level on Tuesday over its close at 15.10 on Monday.

Asian stocks mixed in early trade
Asian markets opened mixed on Wednesday as investors sought to lock in profits after recent rallies and US Stock settled mixed after an extended weekend. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.11 per cent.

  • Japan’s Nikkei gained 0.45%
  • Korea’s Kospi shed 0.17%
  • Australia’s ASX 200 tanked 0.31%
  • China’s Shanghai edged up 0.02%
  • Hong Kong’s Hang Seng added 0.29%

US stocks closed mostly lower
The S&P500 index closed lower while the Nasdaq Composite edged higher to a record high, as investors balanced worries about the slowing pace of economic recovery with expectations that the Federal Reserve will maintain its accommodative monetary policy.

  • Dow Jones declined 0.76% to 35,100
  • S&P 500 shed 0.34% to 4,520.03
  • Nasdaq added 0.07% to 15,374.33

Dollar near one-week high
The dollar hovered near a one-week peak on Wednesday against major peers, buoyed by higher Treasury yields and a weaker euro amid caution before a European Central Bank policy decision.

  • Dollar index held at 92.553
  • Euro flat at $1.1843
  • Pound slipped to $1.3783
  • Yen declined to 110.28 per dollar
  • Yuan depreciated to 6.463 against the greenback

FPIs sell shares worth Rs 145 crore
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 145.45 crore, data available with NSE suggested. DIIs were net sellers of Rs 136.57 crore worth equities, data suggests.

MONEY MARKETS
Rupee: The rupee plunged by 32 paise to close at a more than one-week low of 73.42 against the US currency on Tuesday due to dollar buying by corporates and importers and the greenback’s gain in overseas markets.

10-year bond: India 10-year bond yield jumped 0.36 per cent to 6.19 after trading in 6.17 – 6.20 range.

Call rates: The overnight call money rate weighted average stood at 3.15 per cent on Tuesday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • JP Current Account JUL (5:20 am)
  • JP GDP Growth Rate QoQ Final Q2 (5:20 am)
  • JP GDP Price Index YoY Final Q2 (5:20 am)
  • AU RBA Chart Pack (7 am)
  • AU RBA Debelle Speech (1:40 pm)
  • US MBA 30-Year Mortgage Rate 03/SEP (4:30 pm)
  • US MBA Mortgage Applications 03/SEP (4:30 pm)
  • US Redbook YoY 04/SEP (6:25 pm)
  • US 10-Year Note Auction (10:30 pm)

MACROS

DoT moots 4-yr moratorium on AGR, spectrum payments
The telecom department (DoT) has proposed a four-year moratorium on adjusted gross revenue (AGR) and spectrum payments apart from a reduction in spectrum usage charge (SUC) prospectively, among measures to improve the health of the debt-laden sector and retain a three-private player market.

Sebi wants T+1 settlement for trades
The Securities and Exchange Board of India has proposed a ‘trade-plus-one’ (T+1) settlement cycle from January 1, where the trades will get settled the day after the transaction. Initially, exchanges can pick stocks where they want to offer the next-day settlement. Under T+1, the buyer would get shares in the demat account and the seller the sale proceeds the day after the trade.

Cheaper smartphones could fire up Jio ARPU
After a sluggish movement since March, the stock of Reliance Industries (RIL) has gained nearly 18% within a month ahead of the company’s launch of affordable smartphones on September 10. Nearly a quarter of the total smartphones are priced below Rs 7,500 per unit. This may help the company to reach the 500 million subscriber base by FY24 and improve ARPU by 10-15%. India’s largest company by revenue and market capitalisation is slated to launch an entry level smartphone priced between Rs 5,000 and Rs 7,500 in partnership with Google.

Probe into PSB frauds on hold
Investigations into alleged fraud caused to public sector banks totalling over Rs 50,000 crore have been put in abeyance by the Central Bureau of Investigation (CBI) for want of general consent from states. Of these, complaints over Rs 20,000 crore are from Maharashtra alone, ET reported. Claiming vendetta by the Centre, eight states ruled by non-NDA parties including Maharashtra, West Bengal, Chhattisgarh, Mizoram, Kerala, Rajasthan and Punjab in the last one year have withdrawn general consent accorded to the CBI under the Delhi Special Police Establishment Act to probe cases in their jurisdictions.

Rocky start for Bitcoin as legal tender
El Salvador faced a rocky transition in its adoption of Bitcoin as legal tender on Tuesday. The government’s app for facilitating transactions — its “digital wallet” — went offline temporarily, protesters took to the streets of the capital to denounce the move, and the price of Bitcoin dropped sharply, demonstrating the volatility of the cryptocurrency market. The country is the first to use Bitcoin as an official currency, encouraging businesses and citizens to use it in everyday transactions, and authorities struggled to smooth out glitches in the new system.



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NPCI, Fiserv to open RuPay API platform, BFSI News, ET BFSI

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The National Payments Corporation of India (NPCI) has tied up with Nasdaq-listed fintech firm Fiserv to launch an application programming interface (API) platform for startups and banks looking to build credit card-based products on top of the RuPay rails, said senior company executives.

They said the collaboration will help faster and cheaper onboarding of customers and merchants by banks as well as enable fintech firms to build out new models of digital interfaces for customers launching RuPay credit card products.

“We are trying to expand the credit ecosystem in India, where a lot of great work has happened on the debit side,” Rishi Chhabra, head of India and Sri Lanka at Fiserv, told ET.

The Wisconsin-based firm, which has been operating in India for over a decade, works with seven of the top ten credit card issuing banks in India.

“While collaborating with NPCI one of the shared visions is to expand credit issuance in India,” said Chhabra. “Our tech stack on RuPay will support scalability from an onboarding perspective for both banks and fintechs. We have hundreds and thousands of micro-APIs for the fintech firms to code, consume and onboard and launch their services at scale.”

The collaboration comes at a time when card networks Mastercard and American Express have been barred by the Reserve Bank of India (RBI) from issuing any new cards owing to non-compliance with data localisation mandate resulting in a clutch of card-issuing banks migrating their networks to Visa and NPCI’s homegrown RuPay.

According to Nalin Bansal, the chief of corporate relationships and fintechs at NPCI, the collaboration with Fiserv will help RuPay build an ecosystem around its credit card products, thereby attracting more fintech firms to innovate and scale these offerings.

“In India what we have achieved on debit, we haven’t been able to emulate on credit. The need now is how to make credit more affordable for a larger set of customers,” said Bansal. “The platform will help onboard fintech firms at a fairly reasonable cost and speed. These need not be high-end, premium products. It could be a credit card with lower feature sets and limits to the broad-based credit market in India.”

The platform, called ‘nFiNi’, will power RuPay cards by offering access to services through the NPCI network and Fiserv’s microservices-based platform-as-a-service with a set of APIs. This stack, among other things, will support orchestration of the digital user experience, enable push alerts for in-app, mobile messaging app and SMS notifications, simplified integration options and instant digital card provisioning, allowing customers to transact immediately after being approved for a card.



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Should Senior Citizens Choose National Pension System (NPS) With New Rules?

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Investment

oi-Kuntala Sarkar

|

The National Pension System (NPS) rule has been changed by the Pension Fund Regulatory and Development Authority (PFRDA), stating the maximum age of joining NPS has been increased to 70 years, from the previous 65 years. Any Indian Citizen, resident or non-resident, and Overseas Citizen of India (OCI) can join NPS. Additionally, the maximum age can be 75 at the time of maturity. PFRDA, in an official statement, commented, “In response to the large number of requests received from the existing subscribers to remain invested under NPS beyond 60 years or beyond their superannuation, and the desire from citizens above 65 years to open NPS, it has been decided to increase the entry age of NPS in the interest of Subscribers and benefit them with the opportunity of creating a long term sustainable pension wealth.”

Should Senior Citizens Choose National Pension System (NPS)

Equity exposure

Additionally, PFRDA now said, “The Subscriber, joining NPS beyond the age of 65 years, can exercise the choice of PF and Asset Allocation with the maximum equity exposure of 15% and 50% under Auto and Active Choice respectively. The PF can be changed once per year whereas the asset allocation can be changed twice.” That means the authority has allowed subscribers to allocate up to 50% of the funds in equity who are joining NPS after 65 years, hence, it is a great opportunity for interested senior citizens.

Annuity and tax deduction

The pension scheme is observed by the account holder’s NPS corpus that can be used to buy an annuity – a pension plan. The current annuity rate is 9%-10%, and the pension will be activated till the senior citizen’s death. There is also a variant available where the person’s heirs get back the purchase price, but the annuity rate for this pension variant is lower at 5%-6%. So, as the corpus increases, the pension will increase eventually. One cannot defer the annuity by more than three years, but the non-annuity part (60% of corpus) can be deferred till the age of 75 which means if a subscriber enters at the age of 60, the annuity will have to be bought at the age of 63.

However, many senior citizens stay away from the NPS because of the mandated annuity. But it should be remembered that one needs to use only 40% corpus to buy an annuity, and the remaining 60% corpus will grow till the age of 75. This can be withdrawn free of tax on maturity in a lump sum or 10 installments, which is called phased withdrawal, making it a lucrative option for senior citizens. Along with this opportunity, one can get a tax deduction of up to Rs. 2 lakh each year on contributions to the NPS, and also before maturity no tax is counted on NPS, only on maturity, it will be partially taxed.

Exit from NPS

Additionally, subscribers, beyond the age of 65 years can exit after 3 years, ‘only at least 40% of the corpus should be utilized for the purchase of annuity and withdraw the remaining amount as a lump sum’. In case of premature exit, the subscriber should utilize at least 80% of the corpus for the purchase of the annuity. However, if an unfortunate death of the subscriber happens, the total corpus will be paid to the nominee.

However, senior citizens, who do not have any risk appetite, can invest in the senior citizen savings scheme or PMVVY with an assured rate of return, as it is less risky than NPS which does not offer guaranteed returns. Although regarding cost and taxation, mutual fund options are the closest competitors to NPS, but the latter is tax-free to the subscriber’s heirs on death.



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4 Stocks ICICI Securities Is Suggesting To Buy For Gains In One-Year

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Sunteck Realty

Sunteck Realty gets a buy call from ICICI Securities with a target price of Rs 475. Sunteck Realty Ltd. is currently trading at Rs 386.

When the price of Sunteck Realty Ltd. reaches the analyst’s target, the time period is one year.

Sunteck Realty Ltd., founded in 1981, is a Real Estate-focused Mid Cap business with a market capitalization of Rs 5533.71 crore.

Financials

The company reported a Consolidated Total Income of Rs 96.12 Crore for the quarter ended June 30, 2021, down -50.63 percent from the previous quarter’s Total Income of Rs 194.67 Crore but up 39.49 percent from the same quarter last year’s Total Income of Rs 68.91 Crore. In the most recent quarter, the company achieved a net profit after tax of Rs 4.39 crore.

Reasons for Investing

The brokerage expects Phase 1 of the project to generate Rs2.7 billion in revenue (1,000 units launched) and the total project to generate Rs12-13 billion in revenue, with a pre-tax operating surplus of over Rs5.0 billion and NAV accretion of Rs2.8 billion (Rs20 per share). It keeps SRIN as BUY, with a revised target price of Rs475/share (formerly Rs457), based on 1x NAV adjusted for project level revisions. The call is vulnerable to a slowdown in Mumbai property market volumes and a drop in residential/commercial property prices.

Jindal Stainless

Jindal Stainless

ICICI Securities has a buy call on Jindal Stainless with a target price of Rs 230. Jindal Stainless Ltd.’s current market price is Rs 160.

The expert estimates that Jindal Stainless Ltd.’s price will achieve its target in one year.

Jindal Stainless Ltd., founded in 1980, is a Small Cap business in the Metals – Ferrous sector with a market capitalization of Rs 7535.08 crore.

Financials

For the quarter ended June 30, 2021, the firm recorded consolidated total income of Rs 3930.49 crore, down -9.35 percent from the previous quarter’s total income of Rs 4335.94 crore but up 48.12 percent from the same period last year. In the most recent quarter, the company generated a net profit after tax of Rs 566.18 crore.

Reasons for Investing

With a BUY recommendation, the brokerage begins coverage on Jindal Stainless (JSL). It also includes Jindal Stainless and Jindal Stainless’s combined financials (Hisar). The brokerage values the merged organisation at Rs 230/share on 1.8x FY24E P/B, based on an assessment of >20 percent through cycle RoE and 40 percent YoY profit growth in FY24E as expansion kicks in, with an appointed date of Apr’20 and expected merger closing by Q4FY22 (according to the company). This indicates an EV/EBITDA ratio of 5x in FY24E.

HDFC Life Insurance

HDFC Life Insurance

With a target price of Rs 850, ICICI Direct has issued a buy call on HDFC Life Insurance Company. HDFC Life Insurance Company’s current market price is Rs 735.

When the price of HDFC Life Insurance Company Ltd. reaches the set target, the analyst estimates it will take one year.

HDFC Life Insurance Business Ltd., founded in the year 2000, is a Large Cap company in the Financial Services industry with a market capitalization of Rs 148505.98 crore.

Financials

For the quarter ended June 30, 2021, the firm reported a Consolidated Total Income of Rs 395.46 crore, down -32.38 percent from the previous quarter’s Total Income of Rs 584.85 crore and -12.61 percent from the same period last year. In the most recent quarter, the company generated a net profit after tax of Rs 269.55 crore.

Reasons for Investing

With the acquisition of Exide Life, the brokerage believes that expansion in terms of geographical (tier II and III regions), clients, and distribution (agency channel) will continue to be good. Preoverrun margin is favourable, similar to HDFC Life, however the focus will be on cost matrix and persistency. Given the company’s low market share, flattish revenue, and low persistency, the acquisition cost of Rs 6687 crore, or 2.5 times EV, is not inexpensive. Overall, the brokerage anticipates an 8% increase in EVPS in FY23E as a result of the transaction.

ACC

ACC

With a target price of Rs 2610, ICICI Securities has issued a buy call on ACC. ACC Ltd.’s current market price is Rs 2467.

The analyst specifies a one-year time frame in which the ACC price can achieve the set target.

ACC Ltd., founded in 1936, is a Large Cap business in the Cement sector with a market capitalization of Rs 46528.05 crore.

Financials

The company reported a Consolidated Total Income of Rs 3930.49 Crore for the quarter ended June 30, 2021, down -9.35 percent from the previous quarter’s Total Income of Rs 4335.94 Crore but up 48.12 percent from the same quarter last year’s Total Income of Rs 2653.52 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 566.18 crore.

Disclaimer

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article.



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3 Top Rated BNP Paribas Mutual Fund SIPs To Consider In 2021

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BNP Paribas Large Cap Fund

The Scheme invests primarily in high market capitalization companies in order to produce long-term capital growth from a diversified and actively managed portfolio of equities and equity-related instruments. The Value Research Rating has given a 5-star rating on the fund. A three-year SIP of Rs 10,000 would yield a profit of Rs 1.81 lakh.

The assets under management of BNP Paribas Large Cap Fund Direct-Growth are valued at Rs 1,129 crores (AUM). The fund charges a 1.0 percent expense ratio, which is more than most other Large Cap funds.

BNP Paribas Large Cap Fund Direct-Growth returns have been 50.34 percent over the last year. It has returned an average of 16.77 percent per year since its inception.

The majority of the money in the fund is invested in the financial, technology, construction, services, and energy industries. ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Reliance Industries Ltd., and Axis Bank Ltd. are the fund’s top five holdings.

BNP Paribas Arbitrage Fund

BNP Paribas Arbitrage Fund

The scheme aims to create income and capital appreciation through a diverse portfolio of equities and equity-related instruments, including the use of equity derivatives techniques and arbitrage opportunities, as well as exposure to debt and fixed income instruments. The Value Research has given 5 star rating on the fund. A three-year SIP of Rs 10,000 would yield a profit of Rs 29,370

The BNP Paribas Arbitrage Fund Direct – Growth manages assets worth 748 crores (AUM). The fund’s fee ratio is 0.3 percent, which is comparable to the expense ratios charged by most other Arbitrage funds. The fund currently has a -0.18 percent equity allocation and a 22.64 percent debt allocation.

The Financial, Metals, Services, Healthcare, and Chemicals sectors make up the majority of the fund’s equity holdings. Reserve Bank of India, Adani Ports and Special Economic Zone Ltd., NMDC Ltd., UPL Ltd., and ITC Ltd. are the fund’s top five holdings.

BNP Paribas Substantial Equity Hybrid Fund

BNP Paribas Substantial Equity Hybrid Fund

BNP Paribas Substantial Equity Hybrid Fund Direct-Growth had assets under management (AUM) of Rs.661 crores, making it a tiny fund in its category. The fund’s expense ratio is 0.57 percent, which is lower than the expense ratios charged by most other Aggressive Hybrid funds. The fund now has a 77.18 percent stock allocation and a 10.28 percent debt allocation.

BNP Paribas Substantial Equity Hybrid Fund Direct has generated growth returns of 43.79 percent during the last year. It has had an average yearly return of 16.64 percent since its inception.

The equity part of the fund is predominantly invested in the financial, technology, construction, healthcare, and fast-moving consumer goods sectors. ICICI Bank Ltd., Axis Bank Ltd., GOI, HDFC Bank Ltd., and State Bank of India are the fund’s top five holdings.

The Scheme invests in a diversified portfolio of equities and equity-related assets, as well as fixed income instruments, in order to create income and capital appreciation.

The Value Research and Morningstar has given 5 star rating on the fund. A three-year SIP of Rs 10,000 would yield a profit of Rs 1.72 lakh.

Disclaimer

Disclaimer

Investing in mutual funds poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article.



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10 Preferred Midcap Stocks To Buy From Motilal Oswal’s The Eagle Eye Report

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Solid rebound in the markets

According to the Motilal Oswal report from the lows in March of this year, global equities markets have increased by 75% in market capitalization to USD 119 trillion.

“While closely tracking the reduction in real yields, Bank Nifty has lagged Nifty. As top 100 firms gain from cost efficiency and pricing power to enhance EBITDA margins and profits, big corporations are getting bigger,” the brokerage has said.

The India Strategy- The Eagle Eye Report, has also noted that the first quarter of FY22 earnings season has broadly met expectations, with cyclicals leading the way. GDP- 1QFY22 Real/Nominal GDP increased by 20.1 percent /31.7 percent YoY, helped by a soft 1QFY21 base.

Private consumption contributes to growth

Private consumption contributes to growth

According to the Motilal Oswal report, the investment and private consumption were sharp contributors to economic growth. “Macro Trends- Government gross receipts as % of BE at multi-year high while fiscal deficit is at multi-year lows. In the months of July and August, the south west monsoon was in short supply. COVID-19 active cases fell to 387k in August of this year, with vaccination rates increasing to 6.1 million per day in August vs. 4.3 million in July,” the brokerage has said.

Top stocks to buy from the midcap space

Top stocks to buy from the midcap space

Motilal Oswal has listed 7 midcap stocks to buy in its India Strategy- The Eagle Eye Report.

Current market price
Cholamandalam Investment Rs 576.35
L&T Technology Services Rs 4316.40
Max Financial Rs 1,100
Deepak Nitrite Rs 2362
JK Cements Rs 3560
Endurance Technologies Rs 1587
Clean Science Rs 1612
Aditya Birla Fashion Rs 214.80
Orient Electric Rs 330.45
Solara Active Pharma Rs 1,702

Disclaimer

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only and has been taken from the report of Motilal Oswal Financial Services. Be careful while investing as the Sensex has now crossed 58,000 points. Remember, the Nifty moved from 16,000 points to 17,000 points within 19 trading days, one of the fastest 1000 point milestone in its journey. Investors can invest small amounts and avoid putting lumpsum.



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A Pension Plan With Life-Long Guaranteed Income For Your Retirement Days

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Benefits

Following are the benefits of Aviva Saral Pension Plan that you need to know about:

Survival Benefit: The plan offers two types of survival benefit i.e. single-life annuity and joint-life annuity. Under the single life annuity, option annuity payments will be provided in installments as long as the annuitant survives, according to the mode selected. Under the joint-life annuity option For as long as the primary and/or secondary annuitants are alive, annuity payments will be issued in installments according to the specified method.

Tax benefit: Under Section 80CCC and Section 10(10A)(iii) of the Income Tax Act of 1961, the premiums paid and claims filed are eligible for tax deductions.

Death benefit: Aviva Saral Pension Plan offers two types of death benefits i.e. single-life annuity and joint-life annuity. Under the single life annuity option, the annuity payments would be stopped immediately upon the annuitant’s death, and the nominees/legal heirs would get 100% of the purchase amount. Whereas under the joint-life annuity option as long as one of the annuitants remains alive after the first death of either of the covered lives, 100 percent of the annuity amount will be provided and annuity payments would stop immediately upon the death of the last survivor, and the purchase price would be paid to the nominee(s)/legal heirs.

Loan option: Loan can be availed at any time after six months from the date of commencement of the policy. The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on the loan should not surpass 50% of the annual annuity amount payable under the policy. Under the joint-life option, the loan can be availed by the primary annuitant and on the death of the primary annuitant, it can be availed by the secondary annuitant.

Payout options: Apart from regular life-long income through annuity payout and the possibility to cover yourself and your spouse the pension plan also allows the option to receive annuity payments on a monthly, quarterly, half-yearly, or annual basis.

Plan options

Plan options

Aviva Saral Pension Plan offers two types of plan options i.e. single life and joint life. Both the options have different types of premium benefits which are as follows:

Single Life: Under this option, the minimum entry age is 40 years and the maximum entry age is capped at 80 years. The purchase price of the annuity would be a single premium. For a minimum yearly annuity payment of Rs 12,000, the maximum single premium is Rs 264,959.

Joint life: Under this option, the minimum and maximum entry age are the same as single life. The annuity’s purchase price would be a single premium. The maximum single premium under this option is Rs 260,813; for a minimum annual annuity amount of Rs 12,000.

Surrender option: According to the announcement of Aviva Life Insurance Company the policy can be surrendered any time after six months from the date of commencement, if the annuitant or the spouse or any of the children of the annuitant is diagnosed as suffering from any of the critical illnesses specified in the Policy Document, based on the documents produced to the satisfaction of the medical examiner of the Insurer. The list of critical illnesses may be revised from time to time by the Authority as needed. On approval of surrender, 95% of the Purchase Price shall be paid to the annuitant, subject to deduction of outstanding loan amount and loan interest, if any. On payment of surrender value, the policy stands terminated.

Freelook period: Following receipt of the Policy Document, this is an option for reviewing the policy. The insured person has a 15-day (or 30-day in the case of electronic policies) free look period, which is permitted in line with the insurer’s issued disclosures.

Annuity Payout

Annuity Payout

This saral pension plan offers two types of annuity options i.e. Life Annuity with a 100% Return of Purchase Price (ROP) on the death of the last survivor, and Joint Life Last Survivor Annuity with a 100% Return of Purchase Price (ROP) on the death of the last survivor. An example of an Annuity Payout in Arrear for a Purchase Price of Rs. 10 Lakhs is shown below.

Annually:

Age (years) Annuity Payout (Rs.) Single Life Annuity Annuity Payout (Rs.) Joint Life Annuity
40 47,967 47,370
50 48,935 48,235
60 50,171 49,502
70 51,263 51,140
80 51,521 52,437

Half-yearly:

Age (years) Annuity Payout (Rs.) Single Life Annuity Annuity Payout (Rs.) Joint Life Annuity
40 23,635 23,340
50 24,112 23,766
60 24,721 24,391
70 25,259 25,198
80 25,385 25,837

Quarterly:

Age (years) Annuity Payout (Rs.) Single Life Annuity Annuity Payout (Rs.) Joint Life Annuity
40 11,701 11,555
50 11,937 11,766
60 12,239 12,075
70 12,505 12,475
80 12,568 12,791

Monthly:

Age (years) Annuity Payout (Rs.) Single Life Annuity Annuity Payout (Rs.) Joint Life Annuity
40 3,881 3,833
50 3,959 3,903
60 4,059 4,005
70 4,148 4,138
80 4,168 4,243

Minimum and maximum single premium

Minimum and maximum single premium

Annuity payment frequency Minimum purchase price for single life option in Rs Minimum purchase price for joint life option in Rs Minimum annuity amount in Rs
Yearly 260,813 264,959 12,000
Half-Yearly 264,667 268,877 6,000
Quarterly 267,320 271,555 3,000
Monthly 268,637 272,913 1,000



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Bidders make financial offers in the range of Rs 2,600-3,000 crore for Transco in UP, BFSI News, ET BFSI

Personal Finance

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Bidders have submitted financial offers in the range of Rs 2,600-3,000 crore for South East UP Power Transmission Company that is undergoing bankruptcy proceedings because of financial troubles of its majority shareholder, Madrid-based Grupo Isolux Corsan, according to sources..

All four offers will be taken up for negotiation simultaneously by lenders this week, according to the sources.

Four bidders—Tata Power, Adani, Power Grid Corporation of India and Sterlite—have submitted binding bids for the transmission company, ET had reported on August 23.

Tata Power has made a bid through its arm Resurgent Power Ventures.

The highest bidder amongst the contenders has submitted a conditional offer, which is why negotiations are being held with all the bidders, according to a person in the know. Typically, in bankruptcy cases, the creditors negotiate with the highest bidder, loosely termed H1 bidder, before talking to other contenders.

The lenders could recover upwards of 70% of their dues based on the range in which financial offers for the company have been made, the sources said.

Tata Power “doesn’t comment on specific projects or opportunities”, a spokesperson said. The company continues to explore and evaluate various growth opportunities including in the transmission space. “As indicated earlier, the Company is looking at both greenfield and M&A transmission opportunities directly as well as through its stressed asset platform, Resurgent Power Ventures Pte Ltd,” the spokesperson added.

Adani, Sterlite and Power Grid Corporation of India were yet to respond to ET’s emailed queries sent on Monday. Sterlite had declined to comment on whether they had bid for the company in response to a previous set of queries sent to them on August 20.

Grupo Isolux Corsan had won a 35 year concession to build a power transmission network in Uttar Pradesh in 2011. The company had taken on loans of around Rs 3,700 crore from local lenders to fund the construction of the transmission project. The construction stopped after GrupoIsolux Corsan filed for bankruptcy in Spain and the US.

The lenders left with few options, approached the National Company Law Tribunal to start bankruptcy proceedings against the Indian unit. Bank of India, Axis Bank, Power Finance Corporation and Rural Electrification Corporation are among the creditors of the transmission company.

As many as eight parties had shown interest in the preliminary bidding phase for the company. Torrent Power, Megha Engineering, REC Power Development and Consultancy Ltd (Recpdcl) and a sovereign wealth fund are also said to have submitted expressions of interest for the company in March. Not all of them finally made a bid.

The union government has earmarked electricity transmission lines amongst assets that it will monetize alongside ports, airports and sports stadiums in its budget announcements.

The private sector has been consistently demanding that more transmission lines be auctioned to them under the tariff-based competitive bidding process. So far, private players have only a 5% share in the power transmission sector. This contrasts sharply with the power generation sector where private players account for almost half of the capacity.



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