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THE HINDU DELHI BUSINESS 15
SUNDAY, MARCH 3, 2019
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Tea loses flavour as prices remain flat four banks for
IN BRIEF RBI slaps fines on
‘violating norms’
Reduction in production due to early closure of season fails to have any impact on prices
Indrani Dutta riod and auction prices of the Press Trust of India
commodity were affected due to
KOLKATA New Delhi
Belying hopes of tea prices rising this for north Indian produce that The Reserve Bank of India (RBI)
due to the early closure of the tea accounts for about 75% of India’s has imposed a penalty of ₹3
season last year, prices have re tea crop. South Indian tea is tradi crore on Union Bank, ₹2 crore
mained flat till February 2019, ac tionally grown yearround with on Dena Bank and ₹1 crore each
Hyundai Motor India cording to market sources. out impacting quality. on IDBI Bank and the SBI for
February sales dip 1.6% Sources at the Tea Board as The Tea Board’s closure order noncompliance with various di
NEW DELHI well as in the industry said that covered manufacturers in West rections, regulatory filings said.
Hyundai Motor India Ltd. about 25 million kg of ‘bad teas’ Bengal, Bihar, Himachal Pradesh Union Bank and IDBI Bank
(HMIL) reported a 1.6% were sucked out of the market and Uttarakhand. For Assam, the said they were penalised for the
decline in total sales to delay in adherence to RBI’s di
54,518 units in February. The following a directive issued by deadline was December 10. The rectives on ‘timebound imple
automobile company had the board to tea manufacturers to Tea Board said that manufactur mentation and strengthening of
sold 55,422 units in February stop plucking and receiving ing tea during winter dormancy
last year, according to green tea leaves by midDecem resulted in madetea devoid of the SWIFT related controls’ con
company statement. ber 2018. Wrong timing: Harvesting tea crop during winter dormancy results in quality prescribed under the tained in the RBI circular of Fe
Domestic sales were at An upward trend noticed at madetea devoid of quality. * AFP Food Safety and Standards. The bruary 20, 2018.
43,110 units against 44,505 the tea auctions early in 2019, regulator felt that harvesting such Dena Bank said it was penal
units in the yearago month, was not sustained, trade sources availability of tea in the market teas to arrive in the market soon. a crop harmed exports of Indian ised for its noncompliance with
the statement added. said. At the Sale No. 9 of the Kol influenced the prices. However, prices are determined teas — known for their flavour, the RBI directions issued on Fe
Exports were, however, up kata Auction this week, prices of by demand and supply,” he aroma and briskness. bruary 20, 2018.
4.5% to 11,408 units CTC (crush, tear, curl) teas closed Move to improve quality observed. Based on appeals to resume SBI said the RBI has levied an
compared with 10,917 units at ₹112.9 per kg against ₹112.4 a Tea Board Chairman and Deputy For quite a few years now, tea production and acting on recom aggregate penalty of ₹1 crore on
in February 2018, the year ago. Chairman Arun Kumar Ray told plucking continued till endDe mendations of a committee of ex it for delayed implementation of
automaker said. PTI Orthodox tea prices at the The Hindu that the main objec cember, although earlier, the on perts, the Tea Board has allowed the daily reconciliation of SWIFT
same sale were marginally higher tive behind the move on early set of the winter signalled a clo leaf plucking from February 9 for transaction logs with effect from
SBI reports ₹7,951 crore at ₹171.3 per kg against ₹169.1 per closure was to improve quality. sure of tea plucking. Mostly, poor orthodox teas and from endFe February 20, 2018 at 226 “low in
fraud in AprilDecember kg. Sources said that sufficient “We are expecting good quality quality teas grow during this pe bruary for CTC teas. tensity branches” of the bank.
NEW DELHI
State Bank of India (SBI) has
said frauds amounting to JSW Steel,
₹7,951.29 crore were RCEP nations to intensify Reliance Industries arm to
reported during the first nine
months of 201819. All these talks to conclude trade pact Duferco ink
accounts became non acquire Grab, CSquare Info
performing assets much $700million pact
earlier and most of the Progress on market access seen as positive
portfolio was already Move to spur RIL’s e-com, logistics services
Press Trust of India
provided for with 100% Press Trust of India New Delhi
provision, the public lender November. Commerce and In Press Trust of India strengthen its logistics services,
New Delhi dustry Minister Suresh Prabhu JSW Steel on Saturday said it had New Delhi
said in a regulatory filing. catering to both B2B and B2C
“Moreover, we provide The 16 members of the RCEP attended the meeting. The state inked a 5year advance payment Reliance Industrial Investments segments,” RIL said.
additional provision on new group, including India and Chi ment added that all Ministers re and supply agreement with Du and Holdings Ltd. (RIIHL) has en In a separate filing, RIL said
frauds in each quarter to na, on Saturday agreed to inten solved to exert utmost effort to ferco International Trading tered into agreements to acquire RIIHL has agreed to acquire equi
cover the gap, if any,” the sify ongoing negotiations for a achieve the target of concluding Holding for $700 million. logistics services platform Grab ty shares of CSquare Info Solu
proposed mega trade agreement negotiations this year. The lead The pact, executed on Febru
lender said. PTI and software firm CSquare Info tions Private Limited for a cash
to resolve all issues and conclude ers commended the Trade Nego ary 27, entails a financing struc Solutions. consideration not exceeding
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LIC sells 2.18% stake in the talks this year. The progress tiating Committee for the pro ture that would provide “JSW Reliance Industries Ltd. (RIL), ₹22.04 crore.
Welspun Corporation of negotiations was reviewed at a gress made to date on both longterm funding to comple in a filing, said its wholly owned
NEW DELHI meeting of all the Trade Minis market access and textbased ne ment its plans for future growth subsidiary Reliance Industrial In Further investment
Stateowned Life Insurance ters of 16 countries in Cambodia, gotiations but also “recognised secured by committed exports of vestments and Holdings has en “RIIHL will further invest up to
Corporation has brought which concluded on Saturday. that more work needs to be done steel products to DITH,” JSW tered into an agreement for the ₹60 crore and is likely to be com
down its stake in Welspun “To ensure that progress is to advance both aspects of the Steel said in a statement. For Du acquisition of equity shares of pleted by March 2021. The total
Corporation to 5.54% by made towards meeting the target negotiations,” it said. ferco International Trading Grab A Grub Services Private Li investment will translate into
selling shares in the open for conclusion in 2019, the Minis Members of the Regional Holding (DITH), the transaction
market. According to a ters agreed to intensify engage Comprehensive Economic Part assures a captive supply of va mited for a cash consideration 82% of equity capital in C
regulatory filing by Welspun ment, including by convening nership want India to eliminate not exceeding ₹106 crore. Square,” RIL said.
Corp., LIC which held more intersessional meetings,” or reduce customs duties on rious steel products from JSW ov “RIIHL will further invest up CSquare provides software
2,04,82,544 shares, or er the term of the agreement. to ₹40 crore and is likely to be solutions for the pharma sector,
7.72%, sold 57,89,140 shares the Commerce Ministry said, qu maximum number of goods it “The deal is the largest trade completed by March 2021. The for various stakeholders includ
or 2.18% stake in the oting a joint statement. trades with them. But, lower le finance facility arranged in the total investment will translate in ing C&F, distributors, retailers,
company. Post the open The meeting, chaired by Chu vel of ambitions in services and Indian steel sector,” it said. In the to 83% of equity capital in Grab online ecommerce and sales
#70929
market sale, LIC’s stake in tima Bunyapraphasara, Acting investments, a key area of inter past, JSW and DITH have entered on a fullydiluted basis,” RIL said. force automation. “The invest
Welspun reduced to 5.54%, Minister of Commerce of Thai est for India, does not augur well into similar pacts on a smaller “The aforesaid investment ment will further enable the
or 1,46,93,404 shares, as per land, reviewed the develop for the pact that seeks to be com scale but for longer periods, all will further augment the group’s group’s digital commerce initia
ments since the RCEP Summit in prehensive. of which have been completed.
the filing. PTI digital commerce initiatives and tives,” RIL said.
INTERVIEW | VINAY KULKARNI
‘Large-cap stocks present an
opportunity for generating returns’
Risk appetite of retail investors strong: HDFC AMC’s senior fund manager
Oommen A. Ninan market outlook for the fiveyear periods? retail banking, oil and gas
There is merit in increas- upcoming fiscal? ■ HDFC TaxSaver has (both upstream and down
ing allocation to equities, ■ Nifty 50 is trading near maintained a significant stream), utilities, indus
especially in multi cap/ 16.6x earnings CY19 (ex large cap exposure, ave trials and IT services.
large cap funds in a pected) and 14.2x earnings raging at approximately
phased manner or in stay- CY20 (expected). These 77% of the portfolio for the How has the risk appetite
ing invested as the case are reasonable multiples, last three years. Large cap of investors changed in the
may be for those with a especially in view of im stocks have largely under last few months?
medium to long-term view proving profit growth out performed mid and small ■ FII/FPI flows have fallen
and in line with individual look. Markets thus hold cap stocks in the last five in the current financial
risk appetite, says Vinay promise over the medium years. This has been main year so far (net outflows in
Kulkarni, senior fund to longterm in our opi ly attributed to weak earn equities of approximately
manager, equities, HDFC nion. ings growth among large ₹33,600 crore until Febru
Asset Management Co. Adverse global events, caps. Nifty EPS grew at an ary 27, 2019). However, im
Ltd. Excerpts: rise in crude oil prices, annualised rate of only proved understanding of
sharp moderation in equi equities as an asset class
Why is it important to have tyoriented mutual fund <> SIP is a disciplined among retail investors has
taxsaving funds as a part flows and delays in NPA re way of investing resulted in steady flows
of investment portfolios? solution under NCLT are that helps in from them.
■ Tax saving funds, or the key risks in the near eliminating the The monthly SIP (sys
equity linked savings term. need to time the temic investment plan)
schemes (ELSS), play a sig In view of the above and markets collections in mutual
nificant role in our invest expected recovery in earn funds have stayed strong
ment portfolios as they al ings, there is merit in in 3.5% in the last five years. and grown from ₹6,690
so offer the benefit of creasing allocation to However, we believe the crore in the month of April
wealth creation in addi equities, especially in mul outlook for largecap 2018, to ₹8,063 crore in
tion to tax benefits under ti cap/large cap funds in a stocks, going forward, is the month of January
section 80C of the Income phased manner or in stay positive. This may be be 2019. Therefore, despite
Tax Act, 1961. ing invested as the case cause earnings growth is the recent volatility in
An ELSS invests at least may be (for those with a likely to come back strong equity markets, the risk
80% of its corpus in equity medium to longterm view ly. Nifty EPS is estimated appetite of retail investors
and equityrelated instru and in line with individual to grow at an annualised has remained strong.
ments, enabling investors risk appetite). rate of almost 18.7%
to build wealth in the long (source: Kotak Institution What kinds of investment
run. Being an equity Could you tell us about the al Equities) over financial do you recommend for
oriented mutual fund, an performance of HDFC years 201821. Largecaps, your investors?
ELSS offers investors a TaxSaver in therefore, present an ■ Normally, we suggest
higher potential return, al the last opportunity for gen SIPs from the start of the
beit at a higher risk. three erating returns, financial year to our inves
Its threeyear lockin pe and and we may con tors, as it can help with tax
riod (which is the least tinue to invest planning in advance.
among all taxsaving in in large caps in SIP is a disciplined way
vestment options such as the near future. of investing that helps in
PPF, NSC and taxsaving We have also eliminating the need to
FDs) also helps investors maintained a time the markets by ave
to tide over volatility, diversified port raging the cost of invest
which is an inherent cha folio with expo ments over time. Howev
racteristic of equity invest sure across sec er, since we are now in the
ments. We, therefore, en tors such as month of March and the fi
courage investors to invest corporate nancial year end is around
in ELSS with a long and the corner, lump sum in
term horizon vestments should be con
in mind. sidered in order to
achieve the taxsaving
What is goals for this financial
your year.
CM M ND-NDE
YK
