Will the equities party continue in 2022?

ET Prime/ Prime Vantage
Dear Reader,
The year 2022 may not see the market rewarding equity investors as much as 2021 and 2020 did. Ever since the Covid-19 outbreak rocked the world in early 2020, central banks across the globe have pumped trillions of dollars into the global financial system to keep interest rates low in the hope of keeping economies afloat and driving the growth higher.

In India, the Nifty 50 gained 15% in 2020, and is up 22% so far in 2021. From the lows of March 2020, the benchmark index has nearly doubled.

So, what is changing now? Just as we thought life was close to returning to normal, the Omicron variant has sent jitters across the globe. While we await more clarity, developments surrounding the virus’s spread are the most important concerns for the global markets as well.

India’s inflation, though high, remains well within the Reserve Bank of India’s (RBI) comfort zone. Unfortunately, global inflation is our headache too. The US Federal Reserve was serious about its ‘uncomfortably high’ pace of inflation and earlier this month, the central bank said it would end its pandemic-era bond purchases in March making way for three quarter-percentage-point interest rate hikes by the end of 2022 as the economy nears full employment.

Meanwhile, the 10-year bond yields have jumped to a new 20-month high amid concerns of higher fiscal borrowing. Earlier, they had spiked after RBI announced a surprise INR2 trillion variable rate reverse repo auction, hinting that the central bank may hike rates faster than earlier anticipated. This also implies that equities lose their relative attractiveness to bonds and money may flow into fixed-income assets.
Higher bond yield@2x
Nifty vs. Inflation @2x
Also, while retail investors and domestic institutional investors are bigger than before in Indian markets, foreign portfolio investors (FPIs) remain a dominant force. Their continued outflows from emerging-market equities such as India will exert pressure. Such outflows may most likely rise with the liquidity tap drying up and bond yields rising.

That said, is the party over? No, it is not. On a long-term basis, equities remain one of the best asset classes to deliver inflation-beating performance.

Maarten-Jan Bakkum, senior emerging market strategist at NNIP Investment Managers, acknowledged that 2022 will be a challenging year for EM equities, but pointed that India was a bright spot.

“India is one of the few EMs that will likely grow fast in 2022. It is encouraging that credit growth has started to pick up and that the government is keeping its reform momentum,” he says in an email from the Hague, Netherlands.

Ami Shah, senior assistant editor, Markets &
Varsha Santosh, correspondent, Markets
ET Prime

85975666.cms

  • In-depth reports on 4,000-plus stocks, worth INR 1,499.
  • Exclusively for ET Prime members

ExploreView Sample Report

85975434.cms

Popular among readers

Intermittent fasting: how eating after long gaps can fight lifestyle diseases and chart a long life
Pharma
Intermittent fasting: how eating after long gaps can fight lifestyle diseases and chart a long life
By Pravin Palande
As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?
Fintech + BFSI
As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?
By Anand J
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
Telecom + OTT
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
By Rishi Tejpal
PS: For any queries please drop an e-mail to care@etprime.com

If you do not want to receive this newsletter, please unsubscribe here. To make sure this newsletter does not land in your junk/spam folder, select the e-mail and add the sender to your address book.

Did you like today’s newsletter?

hate it meh love it
© 2021 Times Internet Limited.

Dawn of the new E(SG)ra

ET Prime/ Prime Vantage
Dear Reader,
In the last weeks of 2021, several listed companies were rushing to put up postal ballots for appointment of independent directors on their boards. At least some of them were trying to push through these appointments before December 31.

For, the new year will mean new rules for such appointments. In a notification in August 2021, Securities and Exchange Board of India (Sebi) said it has amended certain clauses of its Listing and Disclosure Requirements (LODR) Regulations relating to independent directors.

These changes, while increasing the obligations and responsibilities of independent directors, will also fundamentally alter the way these corporate sentinels are picked and appointed.

Come January, “The appointment, re-appointment or removal of an independent director of a listed entity, shall be subject to the approval of shareholders by way of a special resolution”.

The operational phrase here is special resolution, which means such appointments need 75% of the votes polled. Despite mitigating factors such as disinterest of retail shareholders in voting, this could lead to a more consultative approach in picking these sentinels.

At least in companies which have a larger public shareholding, promoters would have to reach out to institutional shareholders to get their support. Separately clear prescription in terms of qualifications and qualities would mean the era of drivers, gardeners and unqualified relatives finding their way to the boardrooms would soon be a thing of the past at least in some of these widely held companies.

We can hope that these changes could lead to better quality in composition of Indian boards. Performance is a separate matter though. Here too, the independent directors will find their hands fuller in the new year.

All related-party transactions (RPTs) above a certain threshold required approval of the audit committee. The following proviso will take effect from 2022. “Provided that only those members of the audit committee, who are independent directors, shall approve RPTs.”

Not just this, the threshold of the RPTs requiring such approval has been more clearly defined. Earlier a blanket threshold of 10% of assets or turnover was applied. This would mean that large companies which had huge turnovers could engage in large RPTs without audit committee clearance. But from April 2022, any RPT of over INR1000 crore would require clearance.

“Provided that a transaction with a related-party shall be considered material, if the transaction(s) to be entered into individually or taken together with previous transactions during a financial year, exceeds rupees one thousand crore or ten per cent of the annual consolidated turnover of the listed entity as per the last audited financial statements of the listed entity, whichever is lower.”

Further from April 2023, even indirect (using step-down subsidiaries) related-party deals will come under the independent directors’ eyes.

These changes along with a separation of chairman and managing director roles, which will play out over the next few months, will have a major impact in the way businesses are run in the country. Promoters will either have to clean up or spend substantially to create more complex structures to sustain their old habits.

Governance forms the core and remains the strongest element of the larger sustainability theme that is playing out in the investing space. Popularly known as ESG – Environment, Social and Governance – investing, the concept has caught the fancy of large investors and regulators around the globe as the globe grappled with the pandemic and climate change issues.

In November, IOSCO (International Organisation of Securities Commissions) published a set of recommendations for ESG ratings and data providers. It also called upon global regulators to begin a closer oversight of these ratings and data companies.

Sebi had published its Business Responsibility and Sustainability norms earlier this year. While filing was optional for this financial year, from 2022-23, it will become mandatory for top 1000 companies.

As more data floods the markets on these parameters, there are suggestions that neutral platforms, such as exchanges, capture these on a real-time basis and disseminate in an orderly fashion. Disruptive actions such as pulling out of fossil fuel companies and allocations to green themes have already been reported globally.

Some Indian giants have also quickly realigned their footwork to this new global tune. Get ready to tango with ESG in some form or other this new year. If you still don’t get ESG, Don’t worry. ESG will get you soon.

N Sundaresha Subramanian
Editor- Corporate and Regulatory Affairs
ET Prime

85975666.cms

  • In-depth reports on 4,000-plus stocks, worth INR 1,499.
  • Exclusively for ET Prime members

ExploreView Sample Report

85975434.cms

Popular among readers

Intermittent fasting: how eating after long gaps can fight lifestyle diseases and chart a long life
Pharma
Intermittent fasting: how eating after long gaps can fight lifestyle diseases and chart a long life
By Pravin Palande
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
Telecom + OTT
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
By Rishi Tejpal
As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?
Fintech + BFSI
As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?
By Anand J
PS: For any queries please drop an e-mail to care@etprime.com

If you do not want to receive this newsletter, please unsubscribe here. To make sure this newsletter does not land in your junk/spam folder, select the e-mail and add the sender to your address book.

Did you like today’s newsletter?

hate it meh love it
© 2021 Times Internet Limited.

Coping with a virus that keeps throwing challenges

ET Prime/ Prime Vantage
Dear Reader,
Year 2021 swung between hope and despair, and it’s time for a wrap-up and a look ahead.

The emergence of the Delta variant, its rapid spread, and gradual decline in India reinforced the destructive potential of the virus and showed how tough it can be to predict its ways.

If 2020 brought new waves of the outbreak, 2021 was about tsunamis. India went through its worst in April and May, with the virus claiming thousands of lives. However, the caseload started declining around the middle of the year, and by December, the seven-day average was consistently below 10,000 and deaths at roughly 600 a day.

However, in another part of the world, the virus continues its deadly run, having taken a toll of 800,000 lives in the US. What makes the situation worrisome is that this is playing out in a country that has an advanced healthcare infrastructure and 62% of its eligible population has been fully vaccinated.

Nonetheless, there was hope around the globe that the tide might be turning, when a new variant Omicron emerged, throwing the world into yet another phase of risk and uncertainty.

Even as Wall Street analysts were making forecasts about the end of the pandemic based on historical evidence, South Africa’s medical experts detected a rapidly transmissible variant that turned the country’s Gauteng province into a hotspot almost overnight. On November 26, the World Health Organization (WHO)declared Omicron a variant of concern, saying it had the potential to alter the course of the pandemic. It was a call to brace up for a new threat.

But then, crowded airports and marketplaces showed people were desperate to travel and go out. This stirred up debate around the risk of such actions, but one question would always come up: By when will the pandemic end?

It’s been two years and yet nobody can answer that. Here’s why.

As new information comes to light from studies, even experts are forced to change their views. Relying on data from genome sequencing of the virus, WHO faces a predicament of its own. If it flags a variant too early, it gets panned for basing its stance on insufficient data; if it is late with its alert, it draws equal criticism.

The world’s top virologists are baffled. Global epidemiology and genome experts cited preliminary data to interpret that Omicron may be four times more transmissible than Delta in the early stages. But so far, infections have been mild.

On the other hand, more information emerges every day that reins on optimism. A study by the London School of Hygiene & Tropical Medicine has predicted 25,000 to 75,000 deaths in the UK over the next five months. As a result, the UK has enforced restrictions, and more curbs are expected.

Omicron’s ability to evade the immunity provided by vaccines is indeed a matter of worry. Initial studies in real-world settings show that mRNA vaccines were only 30% effective against the variant and those based on the adenovirus platform, such as AstraZeneca’s Vaxzevria and Covishield, offered no protection. However, the variant itself being new, these results may change over time.

Here is a silver lining. Experts say booster shots after the first two doses can improve protection against Omicron.

India has announced precaution doses for frontline workers and those above the age of 60 years with known comorbidities. The vaccine coverage will now include children above the age of 15. These are important pre-emptive steps. Clarity is expected in the coming days on the vaccines to be used for precaution doses.

Heterologous doses — vaccines built on different platforms — have been found to be highly effective against the virus. Pfizer CEO Albert Bourla has even spoken about the need for a fourth booster dose. Indeed, among people with hybrid immunity — those who have had prior infection and have also taken the vaccines — the rate of reinfection has shown a significant drop.

Omicron cases have so far been mild, but how severe they may get is still being examined. Even though the variant has displaced Delta as the dominant variant in South Africa, no death from it has been reported. However, severe cases may increase, because the progress of the infection to the level of ICU admissions or ventilator-dependence comes after a lag.

The most important point to keep in mind is that the data till now is not based on robust clinical-trial settings and may have inherent shortcomings and observational biases. While sharing insights, experts have cautioned that their own interpretations may not hold as new trends emerge.

Omicron could unleash another wave of deaths across the world, but that may be less due to the lethal potential of the virus and more because it may push hospitals into chaos with its ability to infect more people.

By now, the world knows the best way to halt the spread of the virus. Making vaccines available to all nations, particularly to low-income and middle-income ones, is critical. Maintaining robust hospital infrastructure will be important too, as will be taking basic precautions such as mask-wearing and hygiene. In essence, the world will have to take the outbreak seriously and fight it as one unit.

The lesson from 2021: Science is yet to know enough about viruses, and people are only reacting to a transforming virus; they are not ahead of it. Predictions must be seen as a cue for caution than to panic. The pandemic will end only if people stop fooling around with the virus.

Vikas Dandekar,
Editor – pharma and healthcare,
ET Prime

85975666.cms

  • In-depth reports on 4,000-plus stocks, worth INR 1,499.
  • Exclusively for ET Prime members

ExploreView Sample Report

85975434.cms

Popular among readers

Intermittent fasting: how eating after long gaps can fight lifestyle diseases and chart a long life
Pharma
Intermittent fasting: how eating after long gaps can fight lifestyle diseases and chart a long life
By Pravin Palande
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
Telecom + OTT
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
By Rishi Tejpal
As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?
Fintech + BFSI
As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?
By Anand J
PS: For any queries please drop an e-mail to care@etprime.com

If you do not want to receive this newsletter, please unsubscribe here. To make sure this newsletter does not land in your junk/spam folder, select the e-mail and add the sender to your address book.

Did you like today’s newsletter?

hate it meh love it
© 2021 Times Internet Limited.

11 smart money moves investors can make to improve finances, make more money in 2021

The ET Wealth weekly newsletter covers personal finance topics ranging from stocks to property. Unsubscribe
The Economic Times
WEALTH NEWSLETTER
Tue, Dec 28, 2021 | 09:30 AM IST
51877181.cms
WHAT’S HOT #RERA,#sukanya samriddhi yojana calculator,#alternative investment returns monitor,#realty hot spot series,#stock pick of the week,#mf portfolio doctor,#family finance
11 smart money moves investors can make to improve finances, make more money in 2021 11 smart money moves investors can make to improve finances, make more money in 2021
As we enter the new year , equity markets are looking precarious and debt markets are expecting rate hikes. We reached out to experts to know what investors should do in such a scenario.
Will cryptocurrency market be volatile in 2022? What investors can expect, basic rules to follow Will cryptocurrency market be volatile in 2022? What investors can expect, basic rules to follow
Cryptocurrencies are a new investment class, with very little data for fundamental analysis. Here are some basic rules to keep in mind when entering this high-risk area.
ET Wealth Wisdom Ep 140: Should you invest in REITs? ET Wealth Wisdom Ep 140: Should you invest in REITs?
In this podcast Ramesh Nair of Colliers India tell us what REITs are, what the risks associated with these investment products and should one invest in REITs. Host: Tania Jaleel; Producer: Paramveer Singh
Why investing in property alone is not a good saving idea Why investing in property alone is not a good saving idea
Property as an asset is a large, indivisible investment. Since most of the needs are likely to be smaller in value than the property, you are unlikely to sell it to meet them.
From our Partners
Can cryptocurrencies and CBDCs coexist in this era-defining economic landscape? Can cryptocurrencies and CBDCs coexist in this era-defining economic landscape?
CBDCs, in their true form, will take centre stage when it comes to making payments simpler and quicker. Standard, decentralized crypto players with their on-chain cryptocurrencies will continue to function and thrive as a part of the crypto asset class.
From our Partners
How IIM Lucknow’s Senior Leadership Programme can help you become an effective leader and drive business success How IIM Lucknow’s Senior Leadership Programme can help you become an effective leader and drive business success
IIM Lucknow’s Senior Leadership Programme is an ideal choice to look beyond the ladder and leave a mark in the world of business.
Podcast | How India’s Polygon is helping Etherium scale
Polygon protocol is helping the Ethereum network to scale and why it became the favourite layer-2 scaling solution in the Ethereum community. At ET Markets Cryptologue, host Sidhartha Shukla of ET Online in conversation with Sandeep Nailwal, Co-founder and COO of Polygon. Listen in!
35192298.cms
High inflation in the US could mean some bad news for Indian equity investors High inflation in the US could mean some bad news for Indian equity investors
The strange thing is that Krugman is not alone in this sudden changed attitude towards inflation in the US. In recent weeks, this idea has been aired a lot in the US media.
35192298.cms
Many can't face their personal finance reality, here are 5 ways to help them tackle financial denial Many can’t face their personal finance reality, here are 5 ways to help them tackle financial denial
People don’t always solve their financial problems head on. Denial is the comfort the brain offers to deal with small setbacks. But many extend that soothing balm to deep rooted problems. Ignoring one’s financial distress won’t make it go away. A solution can be found.
35192298.cms
Top Mutual Funds
SCHEME NAME RATING 3 YRS(%) 1 YR(%) 6 M(%) 1 M(%)
Canara Robeco Bluechip Equity Fund Direct-Growth ★★★★★
22.49 26.52 8.31 0.76
Axis Bluechip Fund Direct Plan-Growth ★★★★★
20.79 22.20 8.91 0.34
BNP Paribas Large Cap Fund Direct-Growth ★★★★★
19.82 23.89 8.20 -0.01
Invesco India Largecap Fund Direct-Growth ★★★★★
19.72 33.80 14.50 -0.10
Mirae Asset Large Cap Fund Direct- Growth ★★★★★
18.77 28.38 8.63 0.57
How to update personal details for LIC policy How to update personal details for LIC policy
To be able to be eligible to apply for the shares in LIC’s IPO as an existing policyholder, it is important to make sure certain details are updated by the policyholder on the LIC portal.
35192298.cms
Steel prices, stronger operations and other factors make Tata Steel stock pick of the week Steel prices, stronger operations and other factors make Tata Steel stock pick of the week
Though prices have started correcting, they are still higher compared to a year back and should help Tata Steel report strong numbers. High steel prices are getting translated into profit and this is helping Tata Steel to turn around its European operations.
35192298.cms
FEATURED SLIDESHOWS
​5 signs that a lender may be a fraud
​5 signs that a lender may be a fraud
You are looking at property investing wrong if you are doing this
You are looking at property investing wrong if you are doing this
8 financial planning steps for an early retirement
8 financial planning steps for an early retirement
Five signs that you should look for a new job
Five signs that you should look for a new job
More Slideshows
35192298.cms

Financial Calculators

Old or new tax slab regime? Use this calculator to find out Old or new tax slab regime? Use this calculator to find out
This tax calculator will help you estimate your tax liability. Just input your personal income details and know how much you would be liable to pay.
35192298.cms
New LTCG tax calculator: Plan, compute your tax New LTCG tax calculator: Plan, compute your tax
Use this tool to calculate long-term capital gains (LTCG) and the corresponding LTCG tax for listed shares and units of equity-oriented mutual funds.
35192298.cms
Axis Bluechip mutual fund review: Superior risk-return profile This large-cap fund maintains a strict bias towards quality which sees it run a highly compact portfolio, almost packed with bluechip names.
Realty hot spot: A developed residential micro-market in Northern Ahmedabad ‘Chandkheda-Motera’ is located near the Sabarmati River in the Northern part of Ahmedabad. It boasts strong infrastructure, social as well as transport. Schools, hospitals, banks and malls dot this well-connected Ahmedabad locality.
Education loan: How to choose a lender to fund studies abroad The coverage of the loan is an important factor as some lenders cover the complete cost of education, while some lenders cover only a part of it
Family finance: This Mumbai-based couple can meet their financial goals with ease Besides real estate, their portfolio comprises equity worth Rs 67.5 lakh in the form of stocks and mutual funds, and debt worth Rs 15 lakh in the form of EPF corpus. Their goals include building an emergency corpus, buying a car, and saving for their retirement.
How gold, silver, platinum performed for week ending December 23, 2021 Don’t compare these with returns from traditional investments since the proportion and purpose of alternative investments is vastly different.
More Newsletters

ET Mutual Fund

A weekly round-up of the top news and views ET More Newsletter
35192298.cms

Markets Watch

Round up of stock, currency, bond, money and real estate market ET More Newsletter
35192298.cms

Daily Newsletter

Special stories that round up the major developments of the day ET More Newsletter
View All
Follow Us on ET:
Facebook Twitter YouTube LinkedIn
About us30234772.cms|30234772.cmsAdvertise with us30234772.cms|30234772.cmsFeedback30234772.cms|30234772.cmsSitemap30234772.cms|30234772.cmsCode of Ethics
© 2021 Times Internet Limited.
To ensure delivery directly to your inbox, please add etnotifications@indiatimes.com to your address book today.
If you are having trouble viewing this newsletter, please click here
To unsubscribe or edit your subscriptions please click here

How clean energy fared in 2021

ET Prime/ Today’s Edition
Dear Reader,
Ever since the onset of the pandemic early last year, schools and colleges have had to adapt quickly to the new normal. While it was a new learning curve for them, the year ahead brings with it more questions on the future of education. Though there is a lot of uncertainty with the new Covid-19 variant spreading fast, we can broadly imagine three possible scenarios in 2022.

Scenario #1: a repeat of 2021
In the first wave of the pandemic, schools and colleges across the country had to be closed and people got ready for the shift to digital education. That, however, brought in a frenzy of investments in a few companies that were already scaling in ed-tech. With that, top-funded startups started looking at acquisitions as well as launching new product categories. If there was a clear demarcation earlier between companies addressing K12 or higher education or continued learning segments, it got blurred with some of the largest companies building muscle across the segments.

More opportunity and need areas emerged — from foundational learning to B2B ed-tech in the K12 space to college counseling, education financing, continued learning, and enabling tools for ed-tech. And beyond funding, many companies continued to quietly build their enterprises and look for growth opportunities — both across for-profit and non-profit models.

This happened even as institutions tried to reimagine each step of the learning and assessment process. And the journey has been hard for many, with the lack of access and unforeseen changes.

As we step into 2022 with no signs of Covid-19 completely disappearing, the most likely scenario will be a repeat of 2021 which saw skewed investments in a few areas. This would mean a continued struggle with building hybrid learning models for institutions, changes in the pattern of board exams and college admissions, and a difficult journey for both students and teachers.

Scenario #2: ed-tech’s next big trend
Education has seen a few waves of development beyond what had been traditionally served by the institutions. Think about the mushrooming of computer education institutes a few decades back and the emergence of smart classes a few years down the line. They were followed by test-prep and after-school learning solutions. So, is it time for the next big trend in education?

Savvy investors and smart entrepreneurs have been closely watching these shifts over the last 12 months and are trying to identify the next big trend in education.

By now, it’s clear that education may not shift back completely to its pre-pandemic days. Schools and colleges will still remain the primary space for learning, but they will need to keep blending online and offline ways of learning. Meanwhile, regardless of the interest and funding levels, a critical success factor that ed-techs need to prioritise is building trust with students and their parents.

In this scenario, we expect that innovations in education will shift from pure content-driven ones to more enabling tools that could build the effectiveness of education — think creator tools, engagement tools, education financing, assessment solutions, and more.

Scenario #3: permanent trend shifts
Beyond the hasty changes that we saw during the first few months of the pandemic, there are deeper, more underlying, and perhaps permanent trend shifts that are underway. The sector can identify areas that really need to change and bring about innovation to drive that. For some, that’s the unreasonable pressure of qualifying examinations while for others that’s the link between education and employability.

The New Education Policy could usher in one such shift. Increased focus on foundational learning, vocational skills, and the Academic Bank of Credit to enable easier completion of higher education are already on the cards. These could bring far-reaching trend shifts in the country and move the focus away from just access to education to the quality of education and practical outcomes besides reducing the focus on test-prep.

Innovation here could come from any direction. For instance, using technology to bring in AI-driven education that is so personalised that each person can have their own educational journey instead of a grade-based model. It could also be a learning journey that is gamified in a metaverse.

Beyond technology, this could mean fundamental curriculum and assessment shifts bringing in practical educational aspects ranging from young entrepreneurship to climate action.

However, there is a long way to go for implementing this across the states with the changes that have been intensified with the pandemic. The biggest shift this could induce is the understanding that education is no longer a journey we take from school to college. It’s a continuous journey.

There are many points of entry and exit which intersect with the way we lead our lives. It stays with us throughout life. And it’s much beyond academic learning. It includes self-understanding, financial literacy, focus on both physical and mental health, and an understanding of our shifting environment.

Debleena Majumdar,
Contributor — education and M & A
ET Prime

85975666.cms

  • In-depth reports on 4,000-plus stocks, worth INR 1,499.
  • Exclusively for ET Prime members

ExploreView Sample Report

85975434.cms

Popular among readers

Intermittent fasting: how eating after long gaps can fight lifestyle diseases and chart a long life
Pharma
Intermittent fasting: how eating after long gaps can fight lifestyle diseases and chart a long life
By Pravin Palande
Ode to the pithy
Economy
Ode to the pithy
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
Telecom + OTT
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
By Rishi Tejpal
PS: For any queries please drop an e-mail to care@etprime.com

If you do not want to receive this newsletter, please unsubscribe here. To make sure this newsletter does not land in your junk/spam folder, select the e-mail and add the sender to your address book.

Did you like today’s newsletter?

hate it meh love it
© 2021 Times Internet Limited.

What VCs asked from the gods

ET Prime/ Prime Vantage
Dear Reader,
The year VC’s dream of. That was 2021.

Global capital looking for avenues of growth, accelerated shift to tech-based solutions during the pandemic, and maturing of the Indian startup ecosystem produced a celebratory year, full of unicorns.

Consider this: In the 10 years up to 2020, venture capital spawned 37 unicorns in India. As many as 42 new unicorns came out just in 2021. In other words, a single year produced more billion-dollar startups than all the previous years taken together.

In VC language, 2021 was truly an ‘inflection point’. On average, every 10 days, there was a party around the foosball table at an Indian startup.

Data platform Venture Intelligence estimated that USD49 billion worth of private capital flowed into India in the first nine months of 2021. For the full year, that rate could translate into nearly USD70 billion, up 75% from 2020, which itself was a stellar year. Other than the founders, it is the early-stage VCs who are basking in the glory. Let’s round it all up.
The Unicorn Land@2x
First the big daddies. Last year cemented the pre-eminence of Sequoia Capital, which has 27 unicorns in its portfolio. Accel Partners comes in second at 20. However, that is not exactly a pound-for-pound comparison, considering Sequoia putting more money to work, almost twice as much as Accel.

So let’s look deeper. According to figures from data platform Tracxn, Sequoia has an India portfolio of 268 startups against Accel’s 178. What is remarkable is how Accel edged past Sequoia in adding new unicorns this year — 15 to Sequoia’s 14.

Elevation Capital, formerly Saif Partners, is third, with a dozen billion-dollar startups. Lightspeed Venture Partners, Nexus Venture Partners, and Matrix Partners have seven each.
The additions@2x
But the success wasn’t limited to the top names. Many who were in the periphery of the Indian VC landscape tasted the sweetness of the bubbly. The high tide has lifted almost every boat.

At least 29 VC firms have a unicorn in their portfolio. That was a privilege of a mere handful until last year. Venture Highway, an under-the-radar seed fund, suddenly became a star with half a dozen unicorns. All in the past one year.

Beenext, a Singapore-based fund with Japanese roots, another VC firm that has swam below the surface, also found a place in the top tier with four bets from its portfolio — NoBroker, MPL, BharatPe, and Droom.

Even Helion, a VC firm which long stopped investing, has seen a unicorn pop up from the investment it made a while ago — Gupshup was the reason for the delayed gratification.

Omidyar Network, an impact fund, not usually the kind associated with delivering unicorns, added two in a year — Vedantu and Dailyhunt. Kalaari Capital, which has been through rough weather in recent years, also added one, in Curefit.

The question is if 2022 can surpass 2021.

The Indian startup ecosystem has gained more depth and breadth and emerged as a favourite destination of the global capital since the big VC meltdown of 2015. Now, the momentum shows no sign of abating. No, there aren’t dark clouds on the horizon.

One thing is sure: The list of VCs with at least one unicorn will only get longer. Stellaris has Mamaearth and Whatfix; Fireside Ventures has boAt and Mamaearth; and YourNest has Uniphore, all waiting in the wings.

However, public markets do not seem to share the same level of appetite for startups. Indeed Zomato and Nykaa had bumper IPOs. But from Paytm to Policybazaar to CarTrade, the going-public story isn’t going places.

Happy New Year!

Manu P Toms
Editor – Internet economy and venture capital,
ET Prime

85975666.cms

  • In-depth reports on 4,000-plus stocks, worth INR 1,499.
  • Exclusively for ET Prime members

ExploreView Sample Report

85975434.cms

Popular among readers

The eat map: how eating between long fasts can reverse lifestyle diseases and chart a long life
Pharma
The eat map: how eating between long fasts can reverse lifestyle diseases and chart a long life
By Pravin Palande
In a value vs. price face-off, New Age traders bet on technical trends over stock fundamentals
Markets
In a value vs. price face-off, New Age traders bet on technical trends over stock fundamentals
By Kanika Saxena
Flight plan 2022: after a stormy year, nervous airlines hope to fly high on first-time travellers
Auto + Aviation
Flight plan 2022: after a stormy year, nervous airlines hope to fly high on first-time travellers
By Tarun Shukla
PS: For any queries please drop an e-mail to care@etprime.com

If you do not want to receive this newsletter, please unsubscribe here. To make sure this newsletter does not land in your junk/spam folder, select the e-mail and add the sender to your address book.

Did you like today’s newsletter?

hate it meh love it
© 2021 Times Internet Limited.

On writing slim; the era of compressionists; and other exclusives

ET Prime/ Today’s Edition
Dear Reader,

Mark Twain once said: Writing is easy. All you have to do is cross out the wrong words. Yes, it is that easy. That’s what we do for our readers too at ET Prime. Serve just the right thing. Nothing more, nothing less. Also, why use four words when one can do the job? This is what writing slim is all about. In this spirit of festivities, we want to thank you for being with us. We have compiled a list — Prime Slims — that may help you communicate better. Please check out this list of slim words in today’s edition. And while you’re at it, don’t miss our blockbuster piece on great minds working at Netflix, Prime Video, MX Player and Hotstar. One of our most-read stories in the past week, it speaks about the compressionists and why you must thank them.

Economy

Prime Slims: Ode to the pithy

Prime Slims: Ode to the pithy

Time being of essence in our busy lives, and looking at the need to keep communications short and pithy (think tweets), we thought why not compile a list of short words — though no list can ever be complete — that can be used instead of longer ones. Hope you enjoy dipping into this miscellany.

read more »
Fintech + BFSI

As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?

As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?

India is home to many pathbreaking digital-payment innovations. But not all stakeholders are happy with the regulatory mandates. They say constant policy changes, and the strict deadlines to comply with them, do not favour any player by design but seem to help National Payments Corporation of India (NPCI) products such as RuPay and UPI on the ground.

read more »
Telecom + OTT

A raw take on caste conflict: how Jai Bhim overtook Shawshank Redemption, The Godfather on IMDb

A raw take on caste conflict: how Jai Bhim overtook Shawshank Redemption, The Godfather on IMDb

Jai Bhim becomes No.1 on IMDb with a 9.4 rating. Based on a true story, the film deals with the sensitive topic of police brutality against the minority. The subject has resonated well with the masses, both here and internationally. It has also bagged the Golden Globe nomination. Will this encourage mainstream filmmakers to touch upon hard-hitting social issues?

read more »
Tech

Spy Game: why your office laptop could be telling your employer more than what it should

Spy Game: why your office laptop could be telling your employer more than what it should

Data security is a major concern for companies across sectors in the era of work from home. While employers are using surveillance software to keep a close watch on how their employees use company hardware, they should take measures to ensure that it doesn’t amount to intrusion of privacy.

read more »
Telecom + OTT

You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.

You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.

Millions of people use various bandwidths to consume content on multiple devices and platforms simultaneously. Many would credit multiple servers and data centres working round the clock for making this possible. But the real deal here is software, and the men and women who work tirelessly to deliver a seamless viewing experience to you, the end user.

read more »
Economy

Security of energy, food, supply chains – China’s top economic planner sets out main tasks for 2022

Security of energy, food, supply chains – China’s top economic planner sets out main tasks for 2022

China’s economic development is facing pressure from demand contraction, supply shocks, and weakening expectations, and the external environment is becoming increasingly complicated, grim, and uncertain. Under these circumstances, the country’s planning body has zeroed in on half a dozen aspects that will receive priority.

read more »

Regards,
ET Prime Team

85975666.cms

  • In-depth reports on 4,000-plus stocks, worth INR 1,499.
  • Exclusively for ET Prime members

ExploreView Sample Report

85975434.cms

Popular among readers

The eat map: how eating between long fasts can reverse lifestyle diseases and chart a long life
Pharma
The eat map: how eating between long fasts can reverse lifestyle diseases and chart a long life
By Pravin Palande
In a value vs. price face-off, New Age traders bet on technical trends over stock fundamentals
Markets
In a value vs. price face-off, New Age traders bet on technical trends over stock fundamentals
By Kanika Saxena
Investing with sur, taal, and lay: the circle of fifths and how it plays out in the stock market
Markets
Investing with sur, taal, and lay: the circle of fifths and how it plays out in the stock market
By Prashant Mukherjee
PS: For any queries please drop an e-mail to care@etprime.com

If you do not want to receive this newsletter, please unsubscribe here. To make sure this newsletter does not land in your junk/spam folder, select the e-mail and add the sender to your address book.

Did you like today’s newsletter?

hate it meh love it
© 2021 Times Internet Limited.

Taxpayers who don’t have to pay late fee for missing ITR deadline, what happens if you don’t file on time & more

THE ECONOMIC TIMES Sat, Dec 25, 2021 | 11:47 AM IST ITR filing deadline
ITR filing penalty: These taxpayers don't have to pay late fee for missing deadline ITR filing penalty: These taxpayers don’t have to pay late fee for missing deadline
There are certain individuals who can file their ITR without paying a penalty even after the expiry of the deadline. Let us take a look who will not have to face penal consequences for missing the ITR filing deadline.
Why ITR filing deadline for FY 2020-21 may be extended beyond December 31, 2021 for individualsCompared to last year, i.e., FY2019-20, fewer number of taxpayers have filed their ITR this year in FY2020-21. It is yet to be seen whether the newly launched e-filing income tax portal can handle the load of many individuals filing their ITRs simultaneously within this short span of time.
Penalty for missing ITR filing deadline has been cut to half Penalty for missing ITR filing deadline has been cut to half
Earlier, an individual was allowed time till the end of the financial year, i.e., March 31 to file belated ITR by paying a maximum penalty of up to Rs 10,000. Here’s why the penalty this year is half that of last year if the ITR is filed after the expiry of the current deadline.
How to correct mistakes made while filing ITRA mistake made at the time of filing ITR can be corrected by filing revised ITR. Section 139(5) of the I-T Act states that after filing their return if someone discovers any omission or wrong statement, he can furnish a revised return.
What happens if you miss the ITR filing deadline What happens if you miss the ITR filing deadline
The rules regarding filing belated returns has been amended from FY 2020-21 (AY 2021-22). Read on to know what has changed and how will impact you if miss the ITR filing deadline.
Income tax refund of this amount will not be paid by tax deptSec 143 (1) notices sent by the income tax department to taxpayers after processing their returns also indicate the above in cases where there is a refund or tax demand of less than this amount.
How to claim credit of TDS deducted by employer but not paid to govt? How to claim credit of TDS deducted by employer but not paid to govt?
If any tax has been deducted at source and deposited with the central government, it shall be treated as a payment of tax on behalf of the person from whose income the deduction was made. In other words, the credit of TDS shall be allowed to the person from whose income tax has been deducted at source.
How to get errors in Annual Information Statement corrected for ITR filingAnnual Information Statement (AIS) contains pre-filled information shared by various financial entities such as banks, mutual funds, stockbrokers etc. and your employer (salary income details) and tax deducted during the year if any.
How to report cryptocurrency gains, losses in income tax return How to report cryptocurrency gains, losses in income tax return
While currently, there are no specific guidance/specific tax provisions on taxation of cryptos in the Income-tax Act, 1961 (the Act), one could draw inference from the general principles of taxation. One should keep in mind that not reporting transactions in cryptocurrencies in one’s ITR can lead to penal consequences, and in some cases, there could be a risk of prosecution.
New income tax portal errors resulting in reduced tax refund amounts for manyThe pre-filled data fetched on the new income tax portal is showing a mismatch with the total TDS amount mentioned in Form 26AS. Even after correcting the amount at the time of filing ITR, it seems tax department is taking pre-filled data into account.
More Newsletters

Daily Newsletter

Special stories that round up the major developments of the day ET More Newsletter

ET Mutual Fund

A weekly round-up of the top news and views from the mutual fund industry ET More Newsletter

ET Investment Opportunities

Property, Stocks, IPOs, NFOs, Mutual Funds and latest investment options in your inbox ET More Newsletter

Wealth

Weekly news on personal finance, stocks, property, gold, tax planning and more ET More Newsletter
FOLLOW US ON ET
FacebookTwitterlinkedinYoutTube
About us30234772.cms|30234772.cmsAdvertise with us30234772.cms|30234772.cmsFeedback30234772.cms|30234772.cmsSitemap30234772.cms|30234772.cmsCode of Ethics
© 2021 Times Internet Limited.
To ensure delivery directly to your inbox, please add newsletter@economictimesnews.com to your address book today.
If you are having trouble viewing this newsletter, please click here
To unsubscribe or edit your subscriptions please click here

Inside the stylish world of slim words

ET Prime/ Today’s Edition
Dear Reader,

Time is money, as we all know. Crisp, efficient communications can be a prelude to what’s coming. But poor communication can break a lot of things – from a relationship to a deal. In this era of character counts, one needs to be as pithy as possible. Why use four words when one can do the job? As the festive season is upon us, we want to thank you for being with us. To celebrate the stylish world of short words, we have compiled a list — Prime Slims — that may help you communicate better. Please visit today’s edition to unbox. Over to our Saturday edition, where we have an interesting mix of stories from a variety of sectors.

Markets

Why New Age traders bet on technical trends

Why New Age traders bet on technical trends

Technical analysis existed long before fundamental analysis came into the picture. But the former has been gaining unprecedented popularity among traders in recent times. Investors are betting high on statistical trends over the intrinsic value of a stock. What makes this investing pattern a hot ticket?

read more »
Auto + Aviation

Airlines hope to fly high on first-time travellers

Airlines hope to fly high on first-time travellers

As 2021 draws to an end, a new variant of coronavirus is giving airline promoters and employees sleepless nights. However, some airline executives are confident that the worst is behind us. They believe the next year will witness the opening up of new routes and creation of more jobs as debutant airlines take off with colourful liveries.

read more »
Tech

Can Blinkit do what Grofers couldn’t?

Can Blinkit do what Grofers couldn’t?

It took several years and hundreds of millions of dollars to build the Grofers brand. But the lure of quick commerce has prompted the founder to scrap the brand and start afresh with a new one. This is Albinder Dhindsa’s attempt to deal with competition and funding challenges in one stroke.

read more »
Economy

Why consumers are still acting pricey

Why consumers are still acting pricey

Last year, there was a distinct sense of optimism and relief as markets had gradually opened up. Due to the pent-up demand, the businesses optically looked good and seemed poised to grow. But the current situation is quite a contrast. Some pockets of the economy like real estate and infrastructure are seeing good traction. But is that enough?

read more »
Economy

Mumbai’s dabbawalas prep for a last stand

Mumbai’s dabbawalas prep for a last stand

For the first time in its 130-year run, Mumbai’s dabbawala business is showing its age. Delivery apps and the work-from-home regimen have been slowing it down. So, how does it still keep running in the city that never sleeps? By using an age-old hack: If you can’t beat them, join them.

read more »

Regards,
ET Prime Team

85975666.cms

  • In-depth reports on 4,000-plus stocks, worth INR 1,499.
  • Exclusively for ET Prime members

ExploreView Sample Report

85975434.cms

Popular among readers

Investing with sur, taal, and lay: the circle of fifths and how it plays out in the stock market
Markets
Investing with sur, taal, and lay: the circle of fifths and how it plays out in the stock market
By Prashant Mukherjee
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
Telecom + OTT
You love Netflix, Prime Video, MX Player, and Hotstar? Hail the compressionists.
By Rishi Tejpal
As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?
Fintech + BFSI
As card payment re-authorisation deadline nears, a key question: Is UPI the only winner?
By Anand J
PS: For any queries please drop an e-mail to care@etprime.com

If you do not want to receive this newsletter, please unsubscribe here. To make sure this newsletter does not land in your junk/spam folder, select the e-mail and add the sender to your address book.

Did you like today’s newsletter?

hate it meh love it
© 2021 Times Internet Limited.

What 2022 holds for tech; Ola’s EV ambitions hit a hurdle

As the pandemic took hold, technology played a bigger role in everyone’s lives this year, whether through work-from-home, online deliveries, crypto investments or the humble QR code. But what does next year hold in store?
et-logo.jpgDaily Top 5
A closer look at today’s biggest tech and startup stories and why they matter
Good evening Reader,
As the pandemic took hold, technology played a bigger role in everyone’s lives this year, whether through work-from-home, online deliveries, crypto investments or the humble QR code. But what does next year hold in store? While a lot will depend on the coronavirus’ plans for us, we’ve put together a list of tech trends that are expected to make headlines in 2022.

Also in this letter:
■ Ola’s dream of world’s biggest e-scooter factory hits hurdles
■ Mamaearth parent acquires content platform Mompresso
■ Google and others join retreat from CES over rising cases

The ETtech Top 5 team will be taking some time off as we wind down after what’s been a year of non-stop news in the technology sector. We’ll be back on January 3, Monday with a brand new edition. Happy holidays to you and your family.