Mukesh : Master stroke with Mark during Corona

Mukesh : Master stroke with Mark during Corona

•Tatas & Ambanis- fit in the category of Most Innovative businessmen. Tatas,for obvious reason of diversification from Salt to Software; Dhiru & Mukesh Ambani, for diversification from Crude to Kirana.. Big Goals; small measured steps. Think Global; Act Local.-is nor mere words. Their Enterprise are like Angad’s feet- not to be shaken.

•Mukesh Ambani is gifted genetically with Mega vision and measured action. Jio-is the The Himalaya Parvat of Digital India. Fire, Wheel, Pencillin and Internet are the topmost product-based innovations which shaped Human Civilization on this Earth since its beginning The speed of change of civilization increased geometrically as we time passed. With this analogy, change in The last 20Years may be equaled to the change of last 1000 years, Internet is the undisputed change-maker.

• Mukesh Ambani bet his fortune on this “internet” 20 years ago. He kept on investing ; kept on creating capability silently with unflinching devotion, finally to create “Reliance Jio”- The “Lifeline” of modern India. This is unique “Visionary and Action Leadership” of Mukesh Bhai amongst the Indian Entrepreneurial class.

• This is called bringing Socialism via capitalism through the use of Technology “. Digital Payment; Online Education; Tele Medicine; Smooth and accountable Governance- endless simplification of Life style could be possible due to almost free gift ofJio to the 140 Cr Indian populace. His TV ads 20 Years ago –“Roti, Kapda, Makaan.(And Internet) speak volumes of his clear vision.

• Bill Gates, Elon Musk, Jef Bezoz, Google Brothers, Jack Ma etc are the most technology-Disruptors of current time and, therefore list in the richest persons also on the Planet, My estimate: Indian Mukesh Bhai , one day,shall overlap many; shall give tough competition for No.1 position.

• Jio+Facebook = Connecting unorganized sector of Kirana stores+ Supply Chain Management+ Controlling consumption pattern of 140 Cr Aspirational India via Riding the channel of popular Social Media facebook +Whatsapp.This is win-win for Consumer+kirana store owners and the Aggregator. A true example of Social Capitalism which helps create money for all the stakeholders.

• I clearly remember- 20Years ago, He had suggested the Government of India ,on similar pattern, to connect all 20,000 almost defunct Primary Health Centres ( PHC) of the country and make them truly functional. He had asked just Rs 10 per person per month as fee. The Pseudo- Social and confused-myopic India had no time for that. Oyo, Ola, Jio-are all private initiative to arrange and aggregate the services. Big aggregation is a daunting task in Healthcare sector. I would suggest –Adhaar,and enhanced version of Aarogya Setu be sinked together to create Unique Medical Id ( UMI) of every Individual. May be a little out of context, T N Sheshan,Verghese Kurien, Team ISRO, Nandan Nilekani were some big people contributing to India’s growth.

• Digital Education & Digital Healthcare remains top Priorities as of now.

• Ambanis are the need of the hour. Facilitators should refrain from the enticement of being the show-makers ( as our TV anchors do most of the talking in the Debates ) and sadistic pleasure-seeker.

Post Lock down Action

Corona seems a Bye-Bye. A Great Relief. Indian immunity and Prime Minister’s Unity of Command played a major role.

A New world order is to unfold- New villains; new Heroes ; New opportunities and new challenges would make the game exciting.

Gained: A 40-odd day lockdown recharged India’s soul. India got ample time to think within; self-dependence on house-hold work increased; Old serials helped pass on cultural legacy to millennial; Cleanliness, Personal hygiene, Yoga, Ayurveda, Digital payment; Online activities got prominence. India is roaring to unshackle itself from 3rd May.

Loss, if Any : 40-Days of India’s Productive contribution to GDP affected .In Numerical terms- Its around 120 Billion USD. We gained-40 Billion USD out of savings in crude ; 20 B USD is the reduction in Trade deficit. Net Affected= 60 Billion USD

Approx Gold Reserve with Indian Household =30000 Tonnes-an unofficial figure). The Price escalated from 30K per 10 gm to 45K per 10 gm. The Total appreciation that took place in India’s household Gold = ( 30k x 1000 x 15 L) = 600 Billion USD ( A mind boggling figure).Giving a gap-stimulus of a 60 Billion USD (a small amount from that standard) is not a big issue for Government of India. ( Gold monetization drive by a stable and strong Government should be done on a serious note. Existing “E-Gold scheme with 2.5% extra return apart from appreciation of Gold Prices” should be promoted in full throttle).

How to do this fiscal stimulus? –

· A zero-GST and Zero Income Tax Enterprise for upto a certain turnover and for a certain period ( say for 3 yrs) on loan interest rate of 4-5% per annum be introduced.

· Agricultural land lease to be allowed; Electricity rates to be reduced ; Contract enforcement to be strengthened; Cheque bounce case disposal timeline be reduced to 4 months with enough further deterrents like -surrender of PAN, DBT benefits; suspension of Ayushmaan facilities etc.

· P M Sahab ! Deepak Parekh; Aditya Puri; Nandan Nilekani etc be made the Central Think-Tank -cum-Executive Body. If Raghuram Agrees; he be just made the Finance Minister. With high energy, sharp intellect and precise guts ,He may prove your Yogi Aditya Nath of Finance sector.

( Just a day before, Indian Revenue Service(IRS) have given a proposal to Govt of –

· Introducing COVID cess;

· Higher income tax provisions for Individuals;

· a surcharge for Super rich etc.

Just wanted to give a figure :As per a study by Nomura Group on 56 companies shifting production out of China, only 03 relocated to India while 26 went to Vietnam, 11 to Taiwan & 08 to Thailand).

Hope we have got the answer. This is wonderful showcasing of Ease of doing Business .

The Drama of USA ,China and International currency is yet to start which would be thrilling to watch ; Smartly, India should play on the fence for its maximum gain .It should not make a mistake of siding with any International political Group.

Market on 3rd March, 2020

• Hindustan Unilever ( 2180) is Sell. Will drop like a stone to below the prior low of 1760. Markets does not pay for doing the obvious. Its overdone.
• Crude may see one more low . But that next low may have a very good chance of being the final low and then a sizzling move that may see crude at least double up QUICKLY. Stay tuned. ONGC ( 65) may be a good bet.
• 50PE@1.4 ( 4100 Lot size) ; 86K/6K
• 60 PE@ 3.5 = 1.08L/15K

02.04.2020

1. April and May 10000CE are trading at a decent premium.
2. Even 11000CE is trading at a good premium in May series.
3. If US death crosses 1 lakh, we might retest earlier low of 7500 at lest once.
4. So it will be good to buy some put options if there is any bounce in the markets.
5. You can finance the buy by selling weekly Puts.