Archives May 2023

By Author: Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One Ltd

In 2022, although gold prices in the international markets were flat, the returns in the Indian markets were around 14.5 percent on account of rupee depreciation.

In 2023 YTD, gold prices have given returns of around 12.5 percent and 12 percent in the international markets as well as on the MCX respectively.

The reasons for the shining gold prices range from a different set of factors ranging from the Russia-Ukraine war, to recessionary headwinds in the US on account of rising interest rates in the US and the resultant banking crisis emulating out of it, rising interest rates in Europe, and slowdown across global economy and factors alike.

Banking crisis in the US favours gold investors

To tame inflationary pressures, the US Fed has done aggressive tightening for whole of 2022 and it continued its spree of raising interest rates in 2023 also.The Federal Reserve approved its 10th interest rate increase(in its meeting held on 2-3rd May 2023) in just a little over a year and dropped a tentative hint that the current tightening cycle is at an end.The widely expected decision, which takes the fed funds rate to a target range of 5%-5.25%, was unanimous.The post-meeting statement omitted a sentence present in the central bank’s March comments saying that “the Committee anticipates that some additional policy firming may be appropriate” for the Fed to achieve its 2% inflation goal.

Manufacturing has been in a contraction for the past six months, according to an Institute for Supply Management gauge. However, the services sector, which entails a broader slice of the $26.5 trillion U.S. economy, has been pointing to expansion.The labor market also has remained resilient. Payroll processing firm ADP reported Wednesday that hiring by private sector companies increased by 296,000 in April, well ahead of economists’ expectations.

Although, how long the FED will hold rates at elevated levels remains unknown, the interest of global investors in safe-haven asset especially gold has increased significantly in 2023.In addition, the banking crisis in the US, (collapse of Silicon Valley Bank, Signature Bank and Credit Suisse and the recent takeover of First Republic bank by banking giant JP Morgan) has generated interest of investors interest in to safe haven in the recent weeks. Gold is an asset class that has been looked upon as a safe haven, where money rushes to when things get a little difficult in the financial system.

Is de-dollarisation for real?

The direction of the dollar plays a significant role in defining the direction of commodities. YTD as on 28th March 2023, dollar index has fallen by 2 percent while gold prices have risen by 12.5 percent. In comparison, dollar index has risen by 8 percent in 2022 and gold had a lack lustre flat returns. The direction of the dollar will be defined by the stance of the US Fed in further interest rate hikes and other economic data sets that play a crucial role in how the dollar index moves ahead in 2023. The new theme that has set the global context is of De-dollarisation wherein the countries set their order of trade to deal with countries in their own currency rather than using dollar as a medium of trade. How this theme goes in 2023 will surely decide whether dollar index rises or falls for the remaining half of the year.

Gold price in 2023- will it rise further of fall ?

Unprecedented monetary tightening hasn’t dented the robust economy in the US and more tightening is needed to curb demand and control inflationary pressures. The strength and the weakness of the US dollar is of supreme importance moving ahead as it will clearly define how gold prices move in the remaining months of 2023.

The elevated geo-political risk, developed market economic slowdown, peak in interest rates and probable weakness in the US dollar, risks to equity valuations on account of bank crisis and last but not the least the central bank gold buying will ensure that gold will perform in 2023.

Since gold prices has rallied quite fast in 2023, it remains to be seen how long term investors accumulate gold in the rising market. In India, gold prices have reached lifetime highs of around Rs.61500/10 gms which will probably make a dent on the physical demand while gold investors postpone their purchases when price corrects. It will be safe to say, that gold prices have overstretched its price limit for Indian consumers and the best bargain price for Indian investors would be to accumulate around Rs.56000-58000/10 gms mark.

In 2023, we see gold prices making further highs in the Indian markets and very soon we might see Rs.64000/10 gms mark. Our advise to investors is to accumulate on dips and hold gold in their portfolio for a longer term.

Mumbai, May 10, 2023| The real estate private equity arm of the ASK Group, ASK Property Fund (“ASK”), has closed its latest fund, Real Estate Special Opportunities Fund IV (RESOF IV) with corpus of Rs. 1,500 crore including co-investments from investors.

This is the sixth real estate fund by ASK Property fund. The fund concentrates on the top five cities and primarily invests in mid and affordable residential development. The private equity firm is looking to deploy the fund raised in the established residential markets of Mumbai, Pune, NCR, Bengaluru, and Chennai. As per recent studies for CY 2021, India’s top seven cities added 522 Mn sq. ft. of new residential space, with 562 Mn sq. ft. sold in CY 2022. The inventory overhang has also declined to 13 months by end 2022. Affordable housing contributed around 16-20% in the total residential sales.

Mr. Amit Bhagat, CEO & MD, ASK Property Fund said, “As a private equity fund, we are glad to announce the successful close of our latest real estate fund. We are excited to continue partnering with customer focused developers who are committed to timely delivery of quality residential sustainable dwellings. Customer centric approach automatically ensures superior risk adjusted returns”.

“More than 60% of our investors are repeat investors from our previous funds ie domestic investors, offshore investors, and family offices and the average ticket size is approximately Rs. 10 crores,” he added.

The company also has an aggressive deployment plan and based on the current pipeline, it intends to deploy the entire RESOF IV fund in the current financial year.

New Delhi, May 10, 2023: 161th SLBC meeting was held on Friday, 5th May 2023 at meeting hall Vidhana Soudha, Bengaluru. The meeting was chaired by Smt. Vandita Sharma, Honorable Chief Secretary, Govt. of Karnataka, Sri. Hardeep Singh Ahluwalia, Executive Director of Canara Bank, Sri. Ramana Reddy E V, Addl. Chief Secretary & Development Commissioner, GoK, Sri N Raghunath, Chief General Manager and OIC, Reserve Bank of India, Ms. Sunanda Batra, General Manager, FIDD, Reserve Bank of India, Shri T Ramesh, Chief General Manager – NABARD, A Muralikrishna, SLBCC Convenor, General Manager, Canara Bank, State Controlling heads of all Banks and other dignitaries were attended the meeting.

Total Priority Sector Advances (PSA) achievement during the FY 2022-23 as on December quarter is Rs.2,95,769 crores (89.57%). Out of total Priority Sector Advances, under Agriculture Achievement is Rs.1,59,752 crores (113.40%) and MSE/MSMSE is Rs.1,17,835 crores (90.92%).

Mumbai: 10th May, 2023: CarDekho Group CEO, Amit Jain organized the first edition of the two-day Girnar Elevate Summit 23 to empower the Shark Tank Investee companies & others. The Summit, held on 1st & 2nd May ’23 in their Jaipur headquartered office, was a one-of-its-kind event that reflected Amit Jain’s deep interest in personally connecting and guiding the founders of the investee companies.

Shark Tank India has provided a platform for budding entrepreneurs to showcase their ideas and attract potential investors. Post the fund raiser at shark tank, the most important element sought after by these investee companies was mentorship and guidance to propel their businesses in hyper growth trajectory. To achieve this objective and empower the entrepreneurs, Girnar Elevate Summit was conceptualized. The summit is designed to curate bespoke sessions for these companies in various domains, enabling them to expand their horizons and acquire the necessary skills to reach greater heights.

More than 25 investee & other companies, including Dobiee Foods, Ekatra, Funngro, Sahayatha, Maisha, Pflow, Aadvik Foods among others, participated in the event with the objective of learning from the experts & gaining market insights.

The first day of the event was energizing, commencing with a participants introduction session “Breaking the Ice,” followed by an engaging “Shark Wisdom” connect by Amit Jain. Anurag Jain, the Co-founder, also shared his expertise on “Journey to Build a Unicorn.” The day progressed with various sessions, including “App Technology & product orientation” by Ajay Jangir, Tech Head at CarDekho Group.

In addition, the summit provided a platform for the companies to engage & gain knowledge from industry experts, such as a session by Google on “The Power of YouTube” and an insight on “The Insta-Strategy” by a Meta expert. Mohit Yadav, CEO of Minimalist shared his insights on “Product Differentiation and building a Brand and Community,” while Abhishek Shah, CEO Almo discussed “How to build a D2C stack – What Does It Take to Run It?” & “Fund Raising” session by Rama Bethmangalkar, Qualcomm partners & a session on “ESOP Dynamics” by Sharat Khurana, CEO, Carta. The first day concluded successfully with an “AMA session” called ” Shark Tale,” where Amit Jain answered attendees’ questions.

Following the success of Day 1, Day 2 of the event featured parallel sessions such as “Building a Process-Driven Organization in Finance & Accounts Function by Jitin Kapoor, CEO MMB and working capital management by Gaurav Arora, Head of Investor Relations, CarDekho Group & ‘Building an Effective SEO Strategy’ by Charu Kishnani, Executive Vice President Marketing at CarDekho Group followed by “Building Offline Distribution Network and “Building Community on App. Other sessions included “Building Brands on Insta, “Customer Support Tools & Automation,” “SEO Toolkit Demo,” and “Influencer Marketing ” respectively.

Sharing his thoughts, Amit Jain, CEO & CoFounder CarDekho Group, said, “The Indian startup ecosystem has seen exponential growth in the past few years. In 2022, India emerged as the 3rd largest ecosystem for startups globally. I firmly believe that merely investing in startups is insufficient to propel their growth. To achieve this, startups must be nurtured and supported with the appropriate resources and knowledge. Supporting startups not only creates significant employment opportunities but also helps boost the country’s overall economy. Our first Elevate Summit 23 was an excellent opportunity for us to provide a conducive environment and guide our investee companies in utilizing their resources effectively.”

The Summit has provided a valuable opportunity to cultivate the next wave of leaders who will drive India’s economic growth through technology and innovation. We eagerly anticipate future editions of the event.

Mumbai, May 10, 2023: Ambit, one of India’s premier providers of financial advice and capital, has today announced that Daiwa Securities Group Inc. (“Daiwa”), will acquire a minority stake in Ambit Private Limited.

Historically, Daiwa has been associated with Ambit to expand its business, which has led to establishing a strong, mutual foundation of the relationship. The investment, coupled with the steady growth of the Indian economy will set the stage for both businesses to further flourish in India.

Ambit will gain access to Daiwa’s global network, which is one of the largest regional broking houses in the Asia-Pacific region, and be able to further take its products and services to global markets. With its institutional broking expertise, Ambit will be able to boost its efforts to bring the India public equities opportunity to global clients.

Similarly, Daiwa’s enhanced presence in India with Ambit as its local partner, will allow for clients to access deep domain knowledge, showcase focused India equity research, and therefore build a strong India franchise through the Ambit network.

In the future, the association between Ambit and Daiwa, will entail a renewed business partnership, wherein to begin with, both firms will collaborate to service global clients for Institutional Equities, as also for the Equity Capital Markets (IPO, public fund-raising & other related) business, leveraging the Indo-Japan corridor.

The deal, which was signed on April 26, 2023 will be carried out subject to completion of customary conditions precedent and obtaining regulatory approvals, as may be required.

Ashok Wadhwa, Group CEO, Ambit said, “We are delighted to partner with Daiwa in this new avatar. Having built a strong and mutually beneficial foundation with Daiwa over the years, I am confident that this continued relationship will be fruitful, not only to our clients, but also to both firms. We see India’s growth story blossoming and with Daiwa on board, investment avenues for clients, further open up. This is certainly a milestone in our journey that we will celebrate.”

Seiji Nakata, President and CEO of Daiwa added, “Pan-Asia ex Japan is a key region where we have the biggest business operations other than Japan. Especially, we see India as a strategically important country, which is expected to grow in the long run. Ambit Group has dealt with securities businesses and NBFC businesses, which enables them to provide the most proper solution to various client segments. I’m pleased that Daiwa will be able to offer more investment opportunities to our clients with Ambit Group, thanks to this renewed business partnership.”

 India, 10th May 2023: Exciting news for filmmakers across India! Pratilipi, India’s largest publishing platform has inked a major deal with the Newcomers Initiative. Collective Artists Network has also joined the collaboration. With millions of successful stories in their digital repository, the endeavour is to create captivating content in various formats and multiple languages and offer exciting content from their treasure of literary bestsellers, to all filmmakers across the country.

Pratilipi, one of India’s largest digital storytelling community of readers and writers across 12 Indian languages, has announced a collaboration with Newcomers Initiative and Mahaveer Jain—most recently known for the Amitabh Bachchan starrer & Sooraj Barjatya directorial film Uunchai—to create & share content with other filmmakers across the country, in multiple formats across genres and languages. Securing a 21-month deal with the production house, Pratilipi will be foraying into the world of video storytelling format.

This partnership will add to Pratilipi’s exhaustive portfolio comprising e-books, podcasts, paperbacks.

Leading filmmakers across the nation have come together for the Newcomers initiative to bring forward fresh talent in the entertainment sector.

Collective Artists Network [CAN] is India’s leading talent management agency and marketplace for pop culture.

Ranjeet Pratap Singh, Co-founder and CEO, Pratilipi said, “With over 10 million stories published on Pratilipi till date, we can proudly state that we have access to the biggest library of quality content on our platform. We believe that everyone has the right to premium content in whichever format they want to consume. Our partnership with Mahaveer Jain Films is a testament to our unstoppable commitment of creating multi format content for a wide & varied audience. This partnership reiterates the strong hold we have when it comes to quality stories which can be re-created into audio, video, films, graphics and establishes Pratilipi as the home to some of the best stories.”

Commenting on this partnership, Mahaveer Jain, the force behind Newcomers Initiative said “Content is our backbone and we are excited to bring forward an ocean of fresh stories and new voices for all the storytellers to make best use of. This partnership will strengthen the entire creative ecosystem of our entertainment industry, everyone should check out the platform, www.pratilipi.com.”

Vijay Subramaniam, Founder and Group CEO, Collective Artists Network said, “We are excited to be a part of this association; it would bring forth many new writers with fresh stories and widen the landscape of the entertainment industry. We are extremely motivated to take these stories to maximum filmmakers across our country”

HLM Group of Institutions successfully conducted its Scholarship SCAT Aptitude Test on 8th May 2023, which witnessed the participation of more than 1300 students. The aptitude test was aimed at assessing the school-level knowledge and IQ of the students and rewarding them based on their merit and performance in the exam.

The test was open to students from all streams, Science, Arts, Commerce & Technology, who had passed their 12th standard board exams. The test was conducted to provide scholarship benefits to merit students to ensure that financial restrictions did not hinder students’ chances of creating a better future for themselves.

Tanvi Miglani, COO of HLM Group of Institutions, said, “The HLM SCAT Aptitude Test was conducted to recognise and reward students’ academic excellence and to provide financial aid to top students for further education. The first 100 toppers will get up to 100% scholarship, and the next batch of 100 best-scorers will get up to 50% scholarship, whichever stream they choose.”

The Scholarship SCAT Aptitude Test consisted of multiple-choice questions on different subjects, and the students had the opportunity to assess their preparation levels for the upcoming career programs with scholarships in the HLM.

The scholarship program benefits will be given to 200 intermediate young scholars based on a set of criteria such as academic merit, diversity and inclusion, and financial need. The HLM SCAT Aptitude Test has been created with the intent to reward students’ academic achievement in accordance with their upcoming educational progression.

Delhi, 10th May 2023: Second feather added for Pooja Khanna, senior HRBP Manager and legal advisor of K12 Techno Services. Once again, she has been awarded as ‘HR Rising Star’ in 2023 by the HR Distinction Award 2023, organised by HR Association India, VATS Consulting, World HR Federation and HR Distinction recently in New Delhi. Ms. Khanna was awarded for her spectacular initiatives at K12 and contribution to the HR industry.

While receiving the award, Ms Pooja Khanna said, “Dedication, confidence, loyalty, continuous learning, passion, and commitment towards HR & Legal concepts for the past 20 years of hard practice made me earn this award today. I would like to thank HR Association India, VATS Consulting, World HR Federation and HR Distinction for honoring me with this award.”

The HR Distinction Awards (HRD Awards) is a platform to recognize and honour Excellence in HR and Related fields/services. It aims to bring together the entire spectrum of HR professionals across the globe and give you a chance to witness what it takes to become an epitome of the industry. Accredited by The Human Resource Association India (HRAI), a national-level association representing human resource and people management professionals through their network of 22,000 members from India and across the globe.

Hyderabad/Jaipur, May 10th, 2023: AU Small Finance Bank has partnered with RuPay to introduce the Business Cashback RuPay credit card, an innovative solution tailored to meet the financial requirements of self-employed customers. This latest offering is aimed at providing a diverse range of benefits to small businesses. The Credit Card was launched in the esteemed presence of Mr. Dilip Asbe, CEO of National Payments Corporation of India and Mr. Sanjay Agarwal, MD & CEO of AU Small Finance Bank.

AU Small Finance Bank’s Business Cashback RuPay Credit Card simplifies financial operations for businesses with benefits like upto 2% cashback, 48 days interest-free credit, and instant loans. It also offers fire insurance, burglary, and housebreaking coverage, making it a one-stop solution for businesses.

“At AU Small Finance Bank, we understand that the small and medium-sized enterprises (MSMEs) are the backbone of Indian economy and we have been serving this segment since the last 28 years. We are committed to providing innovative financial solutions that cater to the unique needs of this segment and Business Cashback RuPay credit card is a testament to our commitment to the MSMEs. As the self-employed customer segment is at the heart of our bank, we are focused on adding value to these customers and promoting credit inclusion. Going forward, we shall work towards bringing customized benefits to MSMEs through our other Credit Card variants too,” said Mr. Sanjay Agarwal, MD & CEO of AU SFB.

The credit card also provides lifestyle and travel benefits. Their Silver Spoon Dining Program also offers cardholders up to 30% off at over 300 restaurants, 8 complimentary railway lounge access per annum, and 1%* fuel surcharge waiver.

“I am delighted to attend the launch event and witness the introduction of AU Small Finance Bank’s Business Cashback RuPay Credit Card. National Payments Corporation of India is committed to promoting innovation in the banking sector, and this credit card is a clear example of that. AU Small Finance Bank has consistently demonstrated their dedication to excellence and innovation in the banking industry. This credit card is a fantastic solution that empowers self-employed individuals and promotes financial inclusion. I’m confident that this credit card will be a great success and benefit numerous businesses. Congratulations to AU SFB, keep up the great work,” said Mr. Dilip Asbe, CEO, National Payments Corporation of India.

AU Small Finance Bank is one of the leading providers of innovative and reliable financial solutions for self-employed individuals and businesses. With an unwavering commitment to excellence and credit inclusion, the bank continuously improves and deepens its services, offering a comprehensive range of benefits. AU SFB is poised to bring unprecedented efficiencies to the banking and business ecosystem, contributing to the growth of the Indian economy and empowering the SME sector.

Mumbai / May 10, 2023: The C20 Summit on Technology and Security for One World is going to be held at Amrita Vishwa Vidyapeetham, Coimbatore, on May 12-14, 2023, hosted by an official Engagement Groups of the C20: Technology, Security and Transparency.

Several key dignitaries would be present during the inaugural ceremony. These include Shri RN Ravi, Hon’ble Governor of Tamil Nadu; Ltd Gen Dr. Rajesh Pant, National Cyber Security Coordinator, PMO, India; Swami Amritaswarupananda Puri, Vice Chairman, Mata Amritanandamayi Math and Troika Member C20; Vijay Nambiar, Sherpa C20 and Former UN Secretary Generals Special Advisor; Vilas Dhar, President and Trustee of the Patrick J. McGovern Foundation; Micha Weis, Strategic financial cyber-leader and advisor for the Israeli Ministry of Finance; Bharati Ghosh, National Spokesperson of BJP & Member of National Executive Committee of BJP; Dr. Venkat Rangan, Vice Chancellor of Amrita Vishwa Vidyapeetham. Virtual Participation includes Sonya Kilkenny, Member of Parliament, Victorian Government, Australia; and Ah Mafuthan, Troika member C20, Indonesia.

World-renowned spiritual leader and humanitarian Mata Amritanandamayi (Amma) is the Chair of C20. Amma said “Amma sees the world as a flower. Each country is a petal of the flower. The foundation of all positive change is true education. Along with knowledge about the world, we have to understand ourselves. Only then will our education be complete. Technology has truly revolutionized human life, but its negative aspects raise alarming concerns about the future of human kind.” Swami Amritaswarupananda Puri “The C20 Working Group on Technology, Security and Transparency is focused on access and affordability of innovative technologies for social impact, and the value the CSOs provide towards fostering consistency, accountability, and scale for technology development and diffusion. It is imperative that Civil Society Organizations have their voices represented, along with the private and governmental sectors. We are looking forward to this Summit to launch key initiatives that are essential for CSOs and NGOs to learn about key technology that help their business for additional impact to help society.”

Dr. Vint Cerf, Vice President and Chief Internet Evangelist, Google and co-founder of the internet and Nguyen Anh Tuan, CEO of the Boston Global Forum, and will address the delegates virtually.

Marco Teixeira, United Nations Representative on Drugs and Crime for South Asia; Marcele Frossard, Policy advisor, National Campaign for the Right to Education, Brazil; Dhayalan Matthew Chetty, Impact Area Manager, e-Government at Council for Scientific and Industrial Research (CSIR), South Africa; and Lindy Wafula, Village Ventures Kenya will also be speaking at the Summit.

Across two days of the Summit, hundreds of delegates from Civil Society Organisations (CSOs) and the technology landscape will participate in policy meetings, discussions, and workshops to formulate policies on the access and use of technology, enhanced security, and improved transparency for advancing societal wellbeing. The sessions would focus on four key areas, namely, Technology for Empowerment, Artificial Intelligence and Data for Society; Transparency, Trust & Disinformation; and Security, Safety and Resilience. The participants would identify the gaps in these areas and brainstorm innovative solutions which will directly impact the policy recommendations to be launched at the C20 Summit in July 2023.

Mr. Vijay Nambiar, Sherpa C20 said “Technology impacts all areas of society and each of the engagement groups of the C20. From education, healthcare, youth, women, environmental and sustainability issues, technology plays a key role for all of the population. Given the emergence of AI, cybersecurity, disinformation and the need for transparency, the C20 Summit on Technology and Security for One World, will be an important meeting of minds to develop policy for now and the future.”

Said Dr. Krishnashree Achuthan, National Coordinator of C20 Summit on Technology, Security and Transparency and Dean, Amrita Vishwa Vidyapeetham: “Technology has a huge role to play in society’s progress and prosperity, but over-reliance on it can lead to detrimental behavior, especially amongst children and youth. The C20 Working Group on Technology, Security and Transparency is focused on access and affordability of innovative technologies for social impact, and the value the CSOs provide towards fostering consistency, accountability, and scale for technology development and diffusion. The Working Group is deliberating issues like the security of susceptible communities, especially women, children, and the disabled, and the responsible use of Internet and media.

The Summit is aimed at furthering the civil society narrative to long-term solutions for building societies that are technology-empowered, secure, and held accountable by their transparency to their citizens.”

Organizations participating in the Summit include well-known names like Public Health Foundation of India (PHFI), Synergia Foundation, Women 20, Youth 20, Think Tank 20, ICANN, Genworks and many more.

The G20 (Group of 20) is a forum comprising 19 countries and the European Union. It works to address major issues related to the global economy. C20 provides a platform for Civil Society Organizations (CSO) around the world to voice people’s aspirations to the world leaders in G20.