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The Liquor industry in India is one of the biggest alcohol industries across the globe stand behind the two major countries such as China and Russia.
The fast-growing demand for alcoholic beverages in India is majorly attributed to the huge population and young base and the consumption of alcohol by everyone & rising disposable income is strengthening the industry growth & Profits. With the vast population in India, it is one of the largest consumer markets.
Also demographically in India around 50% of its population below the age of 25 and around 65% below the age of 35. The major consumption of alcohol by volume is by the people aged between 18 and 40.
The demographic stats are expected to fuel the growth of the market over the forecast period at a rapid pace. Even the rapid urbanization of tier-II cities is further adding strength to the market growth.
Analyst forecasts that the Indian liquor market to grow at a CAGR of 7.4% during the period 2017-2030. The market is also anticipated to reach USD 39.7 billion by the end, As alcohol consumption is growing in urban areas.
Indian Made Foreign Liquor is accounted for the largest market share of 40% in 2016. Whereas the foreign liquor bottled in origin or imported alcohol shows fast growth in terms of its consumption in the last few years and which is likely to grow with a CAGR of 25% at a faster pace in the forecast period.
In India, the Southern part is accounted for the biggest market with a market share of more than 45% in terms of alcohol consumption, with a significant rise in urban areas and female alcohol consumers in that region.
North India and Western India are expected to be the new fast-growing markets with the growing number of urban cities.
According to the report, the major driver in the Indian market is the fastest-growing consumption of alcohol owing to fast urbanization in the country.
A huge population migrating towards developed cities and exposed to a variety of alcoholic beverages, including IMFL, and contributing to the market growth.
Although India is a young country, more than 55% of Indians are in the age group of 18-45. This is the target age group for the industry as potential customers.
One challenge in the Indian Liquor market is liquor licensing and sourcing.
For starting a new business and expansion, liquor licensing and sourcing is emerged as the major growth barrier for the industry, as it is the necessity to obtain mandatory licenses and regulation which is related to hours of operation and minimum age of consumption, which is different from state to state.
After the impact of Covid-19, the sales levels are showing sharp growth in this sector the sales reach the previous levels before Covid-19.
In the same manner Unlocking in the country will lead to a sharp increase in sales. Imposing extra taxes also not affected the consumption in the country.
This industry is an untouched segment in the country and is expected to grow at a faster pace. As the competition is very less with limited market players.
Whereas the consumption is increasing day by day. Even at the time of lockdown, the companies manufacture alcohol-based hand sanitizers which were in demand.
On March 13th, 2020 the Pharma index on National Stock Exchange made a low of 6242.85 since from that day the pharmaceutical stock has given a tremendous return. The pharma index made a high of 14282.90 an up move of 8040.05 points with almost 40% returns in 1 year and it has been assumed that the future outlook of the Indian Pharmaceutical industry will have a 3 times growth from till next decade. Indian domestic market is estimated to grow around US$ 41 billion by 2021 and may reach US$ 65 billion by 2024.These growth figures indicate that in long term the pharma sector can be a game-changer for the investors along with a great contribution to the countries economy. We are the major suppliers of generic medicines & drugs across the globe and with new PLI schemes and government intervention for 100% FDI the pharmaceutical industry will witness new growth ahead in the future. The contribution of around 1.72 % to the GDP of the country, makes a significant mark. Earlier it was only 1% in last decade. Lots of research& development programs, FDI inflow opens new avenues for the industry to grow further. The flow of $ 16.5 billion by FDI in April 2000-June 2020, due to 100% FDI is approval in greenfield projects via automatic route & 74 % FDI for brownfield projects. The efforts made by pharmaceutical companies to overcome the current Covid-19 crisis with the help of the Indian government show the robustness itself. We are the largest manufacturer of vaccines across the globe, and the fight against COVID-19 will not be successful without Indian vaccine manufacturers. We were the first to produce the vaccination for Covid-19.With this outperformance, many companies turned out to be multi-baggers for the investors.
The company manufactures a wide range of APIs for oral cephalosporins, beta-lactams formulation, Special nutraceuticals, etc. The company is also engaged in formulation development for various segments like anti-oxidants, oral anti-diabetics. The return given by the company is 25,770.64% in one year with 52 weekly low of Rs.17.15 & made a high of Rs.2654.25
The company engaged in the manufacturing of pharmaceutical formulations of Betalactum and Non-Betalactum productsThe return given by the company is 567.32% in one year with 52 weekly low of Rs.20.35 & made a high of Rs.233.55
The company engaged in the manufacturing and supplying of International Quality Formulations and Active Pharmaceutical Ingredients worldwide. The return given by the company is 562.09% in one year with 52 weekly low of Rs.27.05 & made a high of Rs.234
The company manufactures & markets drugs for domestic & international customers, Primarily engaged in the manufacturing of oncology products It includes anti-cancer tablets, Injections & lyophilized injections.The return given by the company is 520.00% in one year with 52 week low of Rs.47. & made a high of Rs.350.20
The company offers an integrated portfolio of API which includes intermediate, generic finished dosage forms and carries out contract research services. The return given by the company is 476.39% in one year with 52 weekly low of Rs.92.80. & made a high of Rs.544.95
The company engaged in the business of manufacturing of formulations Active Pharmaceutical Ingredient(API) and Contract Research and Manufacturing Services.The return given by the company is 425% in one year with 52 weekly low of Rs.19.05 & made a high of Rs.114.00
The Company is a leading manufacturer of active pharmaceutical ingredients & an end-to-end solution provider for the pharmaceutical industry.The return given by the company is 423.19% in one year with 52 weekly low of Rs.387.75 & made a high of Rs.2844.40
The company is pure play for API & engaged in the manufacturing & development of API. It also offers Contract Manufacturing & development services for foreign companies.The return given by the company is 215.97% in one year with 52 week low of Rs.516.35 & made a high of Rs. 1859.95
The company is one of the major pharmaceutical manufacturers in the country. It is engaged in the manufacturing of pharmaceuticals. It also operates in anti-diarrhoea, anti-inflammatory, and anti-biotic therapeutic segments.The return given by the company is 201.72% in one year with a 52 week low of Rs.227.75 & made a high of Rs. 1026.95
The second wave of Covid-19 is almost near to an end. Where the states had uplifted the lockdown with some major precautions, still in many states the number of cases are coming frequently though the number is in declining ratio.
Tough many states still have not lifted the lockdown rules and extended it till mid or end of June 2021, whereas in some states there are weekend restrictions and at some places, there are restrictions regarding the opening of necessity shops and so on.
The vaccination drive is also increased its pace and getting more & more candidates vaccinated as soon as possible. This show the sign of recovery.
The Economy had suffered huge losses since the rise of covid-19 cases across the nation the country suffers a lockdown in the first wave starting from March 24 2020 which leads to the first nationwide lockdown for the entire 21 days which later on continued till June 2020.
After that, the country started opening up stably and the economy was trying to get back on track again. Since then the economy is trying to recover, Last year we also posted negative GDP data which shows how badly our countries manufacturing & other business units got affected due to the pandemic.
Many startups, small businesses, & professionals lost their earning due to this. Even though some giant business firms confirmed they will pay some portion of salary to them but still that won’t be enough.
Some major steps were taken by big companies like Reliance, TATA sons as they said & agreed to pay to the person family those who lost earning members in this covid-19 cause. This is a great measure taken by these companies and help their family members.
The impact of the 2nd wave was still on and many businesses are still affected by it. The government is trying to overcome the situation and also provided some major monetary reliefs and incentive schemes which later on boost up the market and the economy will soon back on track.
Somehow the Indian government is mainly focusing on Atmanirbhar Bharat which usually wants our companies to produce more and more goods in the domestic market to avoid relying on the Import of it.
Somehow this condition will soon overcome and everything will begin to get normal sooner or later, along with that the vaccination drive is also getting faster which will also boost up to fight against this.
But after this 2nd wave of COVID-19, some sectors will perform well once the lockdown is been lifted totally from all the states and everyone will begin to live a normal & healthy life.
Last year IT and Pharma were the outperformers at the time of the pandemic, even after unlocking the nation the culture of work from home is in the run even the school and colleges are also not opened and all the sessions were conducted online via virtual lectures only.
Which shows the country is moving towards the digitization era. Everything is becoming easier with online mode and will remain continue till 2021-22.
1) Entertainment: Due to covid-19 and to avoid vast spreading among everyone the movie theatre was put on shut and will not be allowed to run due to adverse conditions. But now once everyone got vaccinated the sector will reopen again and will show some robust growth. Earlier this year many states started functioning with 50% capacity which actually turns into losses and later on it shut down again due to 2nd wave.
Stocks to Watch: Inox Leisure & PVR
2) Hotel & Restaurants: Once the lockdown is done the hotel industry will again see some good hope, due to the current situation there were no tourist and other persons are visiting or traveling across the nation, which affected the industry and from last 2 years, it is running under losses.
Even the specialty food chains & restaurants are only providing parcel services or take away service.
Stocks to Watch: Lemon Tree Hotels & Indian Hotels
3) Airlines: Once the lockdown is lifted the airline industry will again back into functioning, which shows some improvements & recovery in the economy.
Stocks to Watch: Intergolbe Aviation & Spice Jet
4) Tours & Travels: This sector also witnessed a huge impact during the pandemic but now conditions are getting better, this segment will see some robust change, the major reason is the psychological impact on every individual who is in lockdown will plan out to move and visit some new places for a change.
India is the biggest consumer of refined soybean oil and is one of the major importers of oil and oil complexes, contributing around 70% of which palm oil contributes around 80%. India is the third largest export destination for Malaysian palm oil. Over the months we have seen a huge surge in the prices of edible oil, and as per the government data, the retail prices of edible oil have risen over 62% in over a year adding woes to the consumers who are already suffering from the economic crisis induced by the COVID-19 pandemic.
Palm oil is edible oil which is extracted from the pulp of the fruit of oil palms. Commonly, it is combined or mixed with coconut oil to make highly saturated vegetable fat, which is also used for cooking purposes. Indonesia, Malaysia, Nigeria, and Columbia are the largest producers of CPO and even the major exporter of palm oil where as India is the net importer of CPO. Looking at the recent price changes in the CPO huge volatility has been noticed leading to the surge in its price and the reason for the same has been quoted as the bad weather in its producing countries because of that the output has also been lowered and also the shifting of edible oil from food to fuel basket. Adding to this, the continuous buying from China and export duties on CPO in Indonesia and Malaysia are also the key triggers for the rise in its price.
It is a vegetable oil extracted from the seeds of the soybean and is one of the most widely consumed cooking oil and the second most consumed vegetable oil. As per the Department of Consumer Affairs, there has been a rise in the price of edible oil between 20%-56% at all India levels within the last year. In fact, the monthly average retail prices of all six edible oils soared to an almost 11-year high on May 21 where already household incomes have been hit due to this pandemic. India meets 56% of its domestic demand through imports where the increase in domestic price of edible oil is just a reflection of international prices, which have jumped sharply in recent months due to various factors. Even the Food and Agriculture Organization (FAO) price index for vegetable oils, an indicator of movement of edible oil prices in the international market, soared to 162 in April 21, as compared to 81 in April 20.
After the huge surge in edible oil prices now we can see some cool-off as it is expected that China may reduce palm oil exports in 2021-22 which may result in reduced prices of palm oil as it is focusing on self-reliance on vegetable oil. On the other hand, we are expecting our government to lower import duties so that some drop can be seen in the prices of edible oil. Technically, we have seen some profit booking among most of the agricultural commodities on NCDEX as making the top such as Soybean, Rmseed and Refined Soy Oil. In the coming days refined soy oil may test the levels of 1330-1340 where as in soybean selling can be seen below 6800 as being the important support level.
Everyone who is looking for a haven investment that will last for generations to come should be investing in an SGB. In the long run, this yellow metal can be a superior investment choice to mutual funds. This is because if the bond is held till maturity, there are no capital gain taxes levied in this investment.
The fact that it is issued by the RBI also makes this investment vehicle investment-grade i.e., relatively immune to default. Another point to note is the natural liquidity of this vehicle.
An SGB can be traded on the stock exchange as the bond will be available in Demat form. However, if an investor wants to hold the bond in physical form they can do so as well.
Another noteworthy point to mention is the fact that the bond can be used as collateral for loans. There are also indexation benefits that allow you to lower your long-term capital gains, hence bringing down your taxable income. However, these benefits are only applicable if the bond is transferred before maturity.
Speaking of Gold itself several economic indicators indicate that gold prices are going to shoot up. Some of those indicators include sticky inflation and the negative real yield on bonds.
There is generally an inverse relationship between bond yields and gold prices. Increasing trade wars is also a factor that can lead to a shoot up in the price of Gold.
The aim of issuing an SGB was to reduce the purchase of physical gold which is technically a dead investment and shift domestic savings into financial savings. This is a step towards stimulating the economy of the country. It also relieves you of the hassle of storing physical gold.
SGB is an ideal choice for someone with a long-term horizon. The reason for this is that an SGB also provides a 2.5% interest on an annual basis. The interest is taxed at the applicable tax rates.
The tenor of the bond is 8 years with a lock-in of 5 years. However, if you’re a short-term investor, Gold ETFs and mutual funds might be the right choice. Investing in Gold can also provide diversification to your portfolio.
It is also a suitable investment choice during periods of economic instability, a situation we are facing right now. For an average investor, a minimum investment of 10% of their portfolio in Gold is the ideal choice.
Here at Swastika, we don’t recommend schemes based solely on their returns. We analyze an investor's belief and constraints before investing.
We genuinely believe that a Sovereign Gold bond will reduce the risk of your portfolio. In these turbulent times managing risk has become the need of the hour. A portfolio should be combined with both risky and riskless assets.
However, most investors just invest in stocks because of their popularity. Adding an SGB to your portfolio can immensely reduce the risk and provide diversification.
However, we would like to mention that this vehicle is not entirely risk-free. There is a risk of capital loss if the market price of gold declines due to some unforeseen circumstances.
But rest assured that the investor does not lose in terms of the units of gold that have been allotted to them. Noting the fact that there is a risk, it is minimal and negligible which is why we urge you to invest in Gold today.
The popularity and the increased inflow of investment in this vehicle have not stopped. It is increasing its pace with every tranche.
The Sovereign Gold bond scheme of 2021-22 will be issued in six tranches. The first three tranches are currently closed for the subscription. Don’t delay and miss this incredible investment opportunity. Invest in SGB today.
The term "share market" is something almost everyone has encountered at some point. However, alongside the word, many of us have also heard phrases like "the stock market is just gambling" or "it's a speculative market." These statements often overshadow the success stories of those who have made significant profits from the market. The reality is that while you may hear more about losses, the stories of those who have profited are equally true, albeit less frequently discussed.
The share market is a complex world where fortunes can be made or lost. But have you ever stopped to think about who exactly is talking about these losses? Are they experienced investors or people who dipped their toes in without sufficient knowledge? This brings us to an essential discussion about the common mistakes that over 90% of people make in the stock market, leading to losses.
Psychology plays a crucial role in our lives, influencing everything from our daily decisions to our financial choices. This is especially true in the stock market. The same psychological traits that can help some people climb the ladder of success can cause others to struggle. Our psychology is shaped by our thoughts and attitudes, which, in turn, are formed by the way we train our minds.
When you invest in the stock market, the thoughts that dominate your mind become your psychology. For example, if you're constantly worried about losses and are quick to sell at the slightest profit, your decisions are driven by fear rather than strategy. If you let external factors like market chatter influence your decisions, you're likely to fall into the same traps as the majority of investors who face losses.
It's true that many people lose money in the stock market, but it's equally true that a small percentage consistently make profits. This begs the question: What are these 10% of successful investors doing that the other 90% are not? The answer lies in understanding that trading setups, strategies, and tools contribute only about 20% to your success. The remaining 80% depends on your psychology, discipline, emotions, money management, and risk management.
Let's explore the critical reasons why so many people suffer losses in the stock market and how you can avoid making the same mistakes.
One of the biggest mistakes that new investors make is diving into the stock market without proper education. Think about it: you spend 12-15 years studying before starting a career, yet many people are unwilling to spend even a few weeks learning about investing. This lack of knowledge often leads to poor investment decisions and, ultimately, losses.
It's important to understand that just like any other profession, investing requires education and experience. You wouldn't start a job without training, so why would you invest your hard-earned money without understanding the basics? As Warren Buffett wisely said, "Never invest in anything that you don't understand."
In today's digital age, it's easy to come across free investment tips on social media platforms like Telegram, Facebook, and WhatsApp. However, these tips often come from people who lack real market knowledge. Following these tips can lead to significant losses because you're essentially trusting someone else's opinion without understanding the reasoning behind it.
Instead of chasing free tips, consider seeking advice from a professional trader who has a proven track record. A true professional will have their own money invested in the market and will take the same risks with their trades as they advise you to take. Before following anyone's advice, always check their knowledge, trading strategy, and performance history.
You've probably heard the saying, "Prevention is better than cure." This applies to risk management in the stock market as well. Proper risk management is essential to avoid financial problems. It involves setting clear rules for how much you're willing to risk on each trade and sticking to them.
Many investors make the mistake of holding onto losing trades, hoping that the market will turn in their favor. This approach can lead to significant losses and ruin your portfolio. Instead, you should be willing to cut your losses quickly and let your profits run. A disciplined approach to risk management is key to long-term success in the stock market.
Money management, or fund management, is another critical aspect of successful investing. It involves determining how much money to invest in different assets, understanding the risks involved, and deciding on the investment horizon. Many investors make the mistake of not setting a clear investment amount and end up investing most of their money in the stock market, leaving little for emergencies.
Before making any investment, ask yourself a few important questions:
Warren Buffett once said, "Never test the depth of the river with both feet." In other words, don't invest all your money in one go. Diversify your investments and keep some funds in safer, fixed-interest assets.
Overtrading is a common mistake that many investors make. It often stems from a lack of discipline and the desire to recover losses quickly. After a losing trade, some investors immediately take another trade without proper analysis, hoping to make up for the loss. This impulsive behavior can lead to even greater losses.
Successful traders set clear goals for each day, including how much profit they want to make and how much loss they're willing to tolerate. They know when to stop trading, whether they've reached their profit target or hit their loss limit. Overtrading, on the other hand, often results in paying high transaction costs and can quickly deplete your capital.
Timing is crucial in the stock market. Many investors make the mistake of buying stocks when the market is at its peak, driven by the fear of missing out on further gains. However, this often leads to buying overpriced stocks, which can result in losses when the market corrects.
A better strategy is to invest during market downturns when stocks are available at a discount. As Warren Buffett famously said, "Be fearful when others are greedy, and be greedy when others are fearful." By buying quality stocks during a market downturn, you can position yourself for significant gains when the market recovers.
Intraday trading, also known as day trading, is a popular yet risky form of trading. It involves buying and selling financial instruments within the same trading day, with the goal of profiting from short-term price movements. While intraday trading offers the potential for quick profits, it also comes with significant risks.
According to various studies, as much as 95% of day traders lose money in the market. This high failure rate is due to several factors, including the fast-paced nature of intraday trading, the need for constant monitoring, and the emotional stress involved. Many traders enter the market without sufficient knowledge or preparation, leading to costly mistakes.
The success and failure rates of intraday traders vary widely based on factors such as market conditions, individual strategies, and trader skill levels. Here are some key findings:
Several psychological factors contribute to the high failure rate among intraday traders:
Success in the stock market doesn't come from luck or chance; it comes from knowledge, discipline, and a well-thought-out strategy. By avoiding the common mistakes mentioned above and focusing on continuous learning, proper risk management, and disciplined trading, you can increase your chances of becoming one of the few who consistently make profits in the stock market.
Remember, the stock market is a tool for wealth creation, but only if used wisely. Invest the time to learn, understand the risks, and always trade with a clear plan in mind. The journey may be challenging, but with the right approach, it can also be rewarding.
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