Morning Scan: All the big stories to get you started for the day

A round-up of the biggest articles from newspapers.

A round-up of the biggest articles from newspapers.

Diamond industry faces huge labour shortage

The diamond industry is facing a huge shortage of labourers, reported The Economic Times.

Why it’s important: The diamond processing industry is reviving after the pandemic.
The exports are also rising after the lockdowns.
The main reason for the shortage of workers in Surat, the hub of the diamond industry, is that most of them are migrants.
They haven’t returned after lifting the lockdowns due to low wages.

Surat had around 600,000 workers and around 125,000 migrant workers had not come back yet.

SIP accounts see a record rise in August

The systematic investment planning is gaining back its momentum as in August it registered a record rise, reported The Economic Times.

Why it’s important: The addition is an extension of buoyancy in the stock market.
New SIP account registration hit a record
24.9 lakh new SIP accounts were added in August.
This is nearly 2.5 times the long-term average.

August was the third month in a row when new SIP additions were above 2 million.

Earnings will justify the valuations’

Mugunthan Siva, managing director at India Avenue Investment Management (Australia), in an interview with The Economic Times said India is still an attractive market for foreign investors.

What he says: One reason for the attractiveness of Indian markets is its diversity that it offers.
Earnings will justify the valuations.
The Indian technology space is still bullish.
Real estate is also good because not many asset managers have invested heavily in some of these companies.

Asset quality issues might arise in banks after COVID-19.

Supply-side issues hitting manufacturing sector as demand rises

Supply-side issues are hitting the manufacturing sector after the easing of COVID-19-induced lockdowns in the near term, reported Mint.

Why it’s important: The demand is rising along with the increasing mobility after the second wave.
This has brought buoyancy in businesses.

Major supply bottlenecks are hitting the auto sector as chip shortages are a big problem.

Jupiter wants to emerge from Rajeev Chandrasekhar’s shadow

Union Minister Rajeev Chandrasekhar-founded investment firm Jupiter Capital is gradually trying to move out of the shadow of its founder, reported Mint.

Why it’s important: David Abikzir, the executive director and chief investment officer of Jupiter Capital, wants to give a new identity.
In the first step, Jupiter Capital launched a $ 150 million fund.
The fund will focus on investments in B2B software-as-a-service startups.
The fund targets limited partners from the US and Europe and has already received soft commitments.
Jupiter Capital has also planned for a second fund of $ 350 million and a third fund of $ 500 million.
Abikzir says: “I am fed up with hearing that Jupiter Capital is equal to Rajeev. Even Rajeev wants us to build an institution and not stay as a family office anymore. That is the message we want to send to the market.”

“Rajeev today, inside Jupiter Capital, is just an adviser on the board. Nothing more, nothing less.”

Byju’s closing in on Tynker buyout

Byju’s is in advanced discussion to buy US-based coding platform for kids, Tynker, reported Mint.

Moneycontrol had first reported Byju’s plans for Tynker.

Why it’s important: Byju’s is planning big for ramping up its operations in North America.
The acquisition is in a cash-and-stock deal.
It would be Byju’s ninth acquisition this year and a third in the US.

Tynker is Byju’s second acquisition in the coding segment for kids after the $ 300 million WhiteHat Jr deal.

New textile PLI attracts Rs 10,000 crore plans

The newly-announced production-linked incentive scheme for the textile sector seems to be a big hit among companies, reported the Business Standard.

Why it’s important: Around 35 firms have already come up with new investment plans worth Rs 10,150 crore under the scheme.
Major companies include Reliance Industries, Bombay Dyeing, Welspun Global Brands, Arvind Group, IndoRama Synthetics, and Wellknown Polyesters.
The government is expected to get fresh investments of around Rs 20,000 crore in five years.

But companies have apprehension of some of the stringent rules in the scheme.

Not focused much on the short-term market movements: HDFC Life

Prasun Gajri, chief investment officer of HDFC Life, in an interview with the Business Standard said that they are not focused much on the short-term market movements.

What he says: The market has been supported by strong earnings upgrades and earnings expectations.
A market correction is likely to be triggered only by a liquidity reversal, driven by global events or any dent to the earnings expectations.
It will be better to get a little cautious in the portfolio construct compared to the past six months.
The market polarisation trend is likely to continue.
Not increasing allocation to cash.
Focusing mostly on large-cap stocks in our diversified portfolios, given that mid-caps are trading at a premium.Remain overweight on private banks, cement, and capital goods, and also positive on the IT and pharma sectors.