Maha Kumbh 2025: Faith Fuels ₹25,000 Crore Economy

The Maha Kumbh Mela in Prayagraj, Uttar Pradesh, is not only a grand religious gathering but also an economic powerhouse. With an estimated 40 crore visitors expected during the event starting January 13, this 45-day festival is set to generate significant business opportunities across sectors like hospitality, tourism, and retail.

Massive Budget and Infrastructure Investment

The Uttar Pradesh government, led by CM Yogi Adityanath, has allocated a ₹6,990 crore budget for the Mela, focusing on 549 projects for infrastructure and sanitation. This is nearly double the ₹3,700 crore spent on 700 projects during the 2019 Kumbh. Officials project the Mela to generate ₹25,000 crore in revenue and contribute ₹2 lakh crore to the state economy.

₹25,000 Crore Turnover Predicted

The Confederation of All India Traders (CAIT) anticipates a ₹25,000 crore turnover from the Mela. Key revenue drivers include:

  • Puja items: ₹5,000 crore
  • Dairy products: ₹4,000 crore
  • Flowers: ₹800 crore
    The hospitality sector alone is expected to contribute ₹6,000 crore, with luxury accommodations in high demand.

Luxury Tents and Hotels

Over 1.6 lakh tents have been set up, including 2,200 luxury tents with nightly rates between ₹18,000 and ₹20,000. Premium options, like Sangam Nivas, cost ₹1 lakh per night, offering amenities like private bathrooms, Wi-Fi, and butler services. The Uttar Pradesh State Tourism Development Corporation has also introduced budget-friendly dormitories starting at ₹1,500 per night.

Food and Hospitality Boom

RR Hospitality Pvt Ltd. has invested ₹12-13 crore to set up food courts in 14 of the Mela’s 25 sectors. The company expects a turnover of ₹100-200 crore, featuring brands like Starbucks, Coca-Cola, and Domino’s. Over 7,000 vendors are participating, with 2,000 trained in digital payments to cater to the vast influx of pilgrims.

Enhancing Tourism and Infrastructure

To manage crowds of 10,000-20,000 pilgrims at a time, special corridors, floating jetties, and temple tourism have been introduced. Hotel infrastructure has also improved, with 100 homestays now registered, up from just 15 last year.

Pop-Up Economy Drivers

The Mela offers opportunities for businesses of all sizes, from small vendors to luxury hotel chains. Experts estimate the event will generate ₹200 crore in temporary livelihoods for workers and small-scale vendors.

A Gathering of Faith and Commerce

The Maha Kumbh Mela combines devotion and commerce, creating a marketplace where spirituality meets economic growth. Its massive scale offers businesses a unique opportunity to thrive while catering to millions of pilgrims.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Federal Bank Increases FD Rates to 8% with Special Tenure

Federal Bank has updated its fixed deposit (FD) interest rates, now offering up to 8% for senior citizens. These changes, effective from January 10, include the launch of a new 444-day tenure with the highest interest rate. The updated rates apply to deposits below ₹3 crore.

For general customers, the interest rates range from 3% to 7.50%, while senior citizens benefit from rates between 3.5% and 8%. Previously, the highest rate was 7.40% for tenures of 777 days and 50 months, making this new tenure a notable enhancement.

Interest rates effective from 10-01-2025 (Rates in % p.a)

Period Single Deposit Less than Rs 3 Crore – General Public Single Deposit Less than Rs 3 Crore – Senior Citizen
7 days to 29 days 3.00% 3.50%
30 days to 45 days 3.50% 4.00%
46 days to 180 days 5.50% 6.00%
181 days 6.50% 7.00%
182 days to 270 days 6.25% 6.75%
271 days to less than 1 year 6.50% 7.00%
1 year 7.00% 7.50%
Above 1 year to 399 days 7.25% 7.75%
400 days 7.35% 7.85%
401 days to 443 days 7.25% 7.75%
444 days 7.50% 8.00%
445 days to less than 2 years 7.25% 7.75%
2 years to 776 days 7.15% 7.65%
777 days 7.40% 7.90%
778 days to less than 3 years 7.15% 7.65%
3 years to less than 50 months 7.10% 7.60%
50 Months 7.40% 7.90%
Above 50 months to 5 years 7.10% 7.60%
Above 5 years 6.60% 7.10%

Policy on Premature Withdrawals

Federal Bank has also revised its premature withdrawal rules for FDs. Depositors can withdraw funds without penalty within the first 15 days, offering flexibility for those needing immediate access. Withdrawals made after 15 days will incur a 1% penalty on the interest earned.

IDBI Bank’s New Super Senior Citizen FD

IDBI Bank has introduced a specialised FD scheme, “IDBI Chiranjeevi-Super Senior Citizen FD,” catering to customers aged 80 and above. This scheme offers:

  • 8.05% interest for a 555-day tenure.
  • 7.90% for 375 days.
  • 8.00% for 444 days.
  • 7.85% for 700 days.

Both banks aim to attract depositors with competitive interest rates and customer-friendly policies.

Federal Bank share price is trading at ₹191.80, up 2.17% (₹4.08) as of 12:15 PM on January 14. The stock opened at ₹189.00, reached a high of ₹193.59, and a low of ₹188.61 during the day. With a market capitalisation of ₹47,060 crore, the stock has a P/E ratio of 11.45 and a dividend yield of 0.63%. It is trading between its 52-week high of ₹217.00 and 52-week low of ₹139.40.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

IndusInd Bank Rises Over 3% on MSCI Index Rebalancing Optimism

IndusInd Bank share price rose by over 3% on January 14, trading at ₹973.90 on the BSE. Over the last 2 days, the stock has gained 4%, driven by reports of increased weight in the MSCI index during February’s rebalancing.

Foreign Holdings and Inflows

Foreign portfolio investor (FPI) holdings in the bank decreased from 55.53% in September 2024 to 46.63% in December 2024. The MSCI index rebalancing is expected to positively influence investor sentiment and could lead to a short-term valuation boost for the bank.

Recent Stock Performance

Despite the recent rise, IndusInd Bank has underperformed the market in the past 6 months, declining by 33% compared to a 5% drop in the BSE Sensex. The stock reached a 52-week low of ₹927 on December 20, 2024.

Q3FY25 Financial Performance

  • Deposits and Advances

Total deposits fell 1% quarter-on-quarter (QoQ) (+12% year-on-year (YoY)), while advances grew by 2.8% QoQ (+12.3% YoY), increasing the credit-deposit (CD) ratio to 89.6% from 86.5% in Q2FY25.

  • CASA Ratio Decline

The bank’s current account savings account (CASA) ratio dropped to 34.9%, compared to 35.9% in the previous quarter and 38.5% a year ago.

  • Deposit Challenges

The bank has struggled to build a strong deposit base, with the Bharat Financial acquisition yet to create the anticipated rural deposit network.

Challenges in Lending

IndusInd Bank has faced slow growth in retail lending due to:

  • MFI Segment Issues: Macroeconomic challenges impacting Bharat Financial’s microfinance portfolio.
  • Auto Finance Struggles: Weak demand in the auto sector.
  • Non-Vehicle Loans: Limited growth in personal loans and credit cards.

IndusInd Bank’s short-term performance is supported by the MSCI rebalancing, but its long-term growth will depend on overcoming deposit and lending challenges.

About IndusInd Bank Limited

IndusInd Bank Limited is a private-sector bank in India that provides banking and financial services. Headquartered in Mumbai, Maharashtra, it was established in April 1994 and inaugurated by the then Union Finance Minister, Manmohan Singh.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Budget 2025: 100% FDI and Big Insurance Reforms Ahead

The government is expected to introduce the Insurance (Amendment) Bill in the Budget 2025 session, aiming to allow 100% FDI (foreign direct investment) in the insurance sector. This follows the 2021 reform that raised the FDI limit from 49% to 74%.

Key Proposed Amendments

The Bill aims to bring significant changes to the insurance industry, including:

  1. 100% FDI Approval

Foreign insurers and financial firms will be allowed to operate independently in India.

2. Composite Licences

Insurers will be able to offer life and non-life policies through a single entity, streamlining operations.

3. Agent Flexibility

Insurance agents may be permitted to sell products from multiple companies.

4. Reduced Capital Requirements:

    • Foreign re-insurers: Minimum funds may decrease from ₹5,000 crore to ₹1,000 crore.
    • Micro insurance firms: Entry capital may be reduced to as low as ₹50 crore for underserved areas, subject to approval by the Insurance Regulatory and Development Authority (IRDA).

However, higher capital thresholds may apply for composite licences compared to separate licences for life and non-life insurance.

Addressing Market Challenges

The reforms aim to:

  • Enhance insurance accessibility and affordability.
  • Attract more capital to expand the industry.
  • Improve insurance penetration, which stood at just 4.2% in India in 2021, compared to a global average of 7%.

Diversification and Independence

India’s insurance market includes over 24 life insurers, 26 general insurers, 6 standalone health insurers, and 1 re-insurer (General Insurance Corporation). With the new amendments, some foreign players may exit partnerships with Indian companies and re-enter as independent entities, while others may diversify operations.

Boosting Market Competitiveness

The sector is currently dominated by life insurance, which constitutes 76% of the market. Globally, life insurance accounts for 43.7% of total premiums, with non-life insurance contributing 56.3%. The proposed reforms aim to balance these segments and foster industry growth.

Looking Ahead

Finance Minister Nirmala Sitharaman is likely to announce these amendments in the upcoming Budget speech, signalling a transformative era for India’s insurance sector.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Odisha Joins Ayushman Bharat-PMJAY Scheme, Signs MoU with Centre

Odisha has partnered with the central government to implement the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). The state government signed a MoU (Memorandum of Understanding) with the National Health Authority (NHA) to integrate this scheme with Odisha’s existing Gopabandhu Jan Arogya Yojana (GJAY).

Comprehensive Health Benefits

Under this initiative, families in Odisha will receive healthcare coverage of ₹5 lakh annually, with an additional ₹5 lakh specifically for women. The merged schemes aim to provide quality healthcare to approximately 10.3 million families in Odisha, covering around 45 million individuals.

Increased Access to Hospitals

Previously, under GJAY, Odisha residents accessed treatment at 900 empanelled hospitals. With the inclusion of PMJAY, they can now benefit from cashless treatments at over 29,000 empanelled hospitals nationwide, including government and private institutions.

Beneficiaries of the Scheme

The program will also cover families of accredited social health activists (ASHA) and Anganwadi workers in Odisha. Eligibility is based on deprivation and occupational criteria outlined in the 2011 Socio-Economic Caste Census (SECC).

Roles in Implementation

The NHA will handle operational guidelines, technical support, and capacity building, while Odisha’s State Health Assurance Society (SHAS) will manage card printing, distribution, and hospital empanelment. The funding for the scheme will follow the 60:40 cost-sharing model between the Centre and the state.

National Expansion Efforts

Odisha is the 34th state/union territory to join the AB-PMJAY scheme. Only West Bengal and Delhi have yet to adopt the initiative, though efforts are ongoing to include them.

Key Impact

This collaboration is expected to significantly enhance healthcare access for Odisha’s population, providing cashless, quality treatment to millions with a single health card.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Funds Raise ₹1.18 Trillion via NFOs in 2024: Thematic Funds Dominate

According to a report, asset management companies (AMCs) launched 239 new fund offerings (NFOs) in 2024, collecting ₹1.18 trillion. Sectoral and thematic equity funds emerged as investor favourites.

NFO Growth Over the Years

The NFO market has grown significantly in recent years. In comparison:

  • 2024: 239 NFOs raised ₹1.18 trillion.
  • 2023: 212 NFOs collected ₹63,854 crore.
  • 2022: 228 NFOs garnered ₹62,187 crore.

The market’s rise since 2020, when only 81 NFOs raised ₹53,703 crore, reflects strong growth and increasing investor confidence.

Market Sentiment Fuels Growth

NFOs typically gain traction during bullish markets when investor sentiment is high. In 2024, a strong stock market performance played a key role, with the Sensex gaining 8.16% (5,898.75 points) and the Nifty rising 8.80% (1,913.4 points).

Thematic and Sectoral Funds Lead

Sectoral and thematic equity funds captured the most attention in 2024:

  • 53 NFOs raised ₹79,109 crore, driven by their focused approach to sectors like manufacturing, technology, and ESG (Environmental, Social, and Governance).
  • The HDFC Manufacturing Fund NFO recorded the highest inflow, raising ₹12,500 crore in April 2024.

December: Peak NFO Activity

The highest number of NFO launches occurred in December 2024, highlighting strong year-end momentum.

Outlook for 2025: A Balanced Approach

The report suggests the mutual fund industry may recalibrate in 2025, shifting focus to stability and liquidity. While extraordinary returns may taper off, a balanced investment approach will help manage risks and maintain steady performance.

Key Takeaway

Thematic and sectoral funds led the charge in 2024’s NFO boom, but investors should prepare for a more stable and cautious market in 2025.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

 

80C Investments That Still Work Under the New Tax Regime

With the government encouraging the new tax regime by offering lower tax rates but removing popular exemptions like Section 80C, many taxpayers are rethinking their investment plans. Interestingly, 72% of taxpayers have already shifted to the new system, signalling a move away from traditional tax-saving strategies. However, some investments previously tied to Section 80C still provide excellent financial benefits, even without the tax breaks. Let’s explore 3 such options.

1. Equity Linked Saving Schemes (ELSS): High Returns with a Short Lock-In

ELSS is a mutual fund category that invests primarily in equities and comes with a mandatory lock-in period of 3 years. While its earlier charm was the tax deduction under Section 80C, it continues to be a solid choice for wealth creation.

Key Features

  • Encourages disciplined investing by restricting early withdrawals.
  • Provides market-linked returns with exposure to various sectors and market sizes.
  • Over the last decade, average ELSS funds have delivered returns of over 13%.

For new investors, ELSS offers an accessible way to benefit from the equity market’s long-term growth, making it a worthy addition to your portfolio.

2. Public Provident Fund (PPF): Safety with Guaranteed Returns

The PPF remains a popular option for risk-averse investors. Backed by the government, it offers attractive interest rates and compounding benefits over 15 years.

Key Features

  • Completely risk-free as the government backs it.
  • Earnings remain tax-free even under the new tax regime.
  • Ideal for long-term savings, ensuring portfolio stability.

Even without tax deductions, the PPF’s safety and consistent returns make it a cornerstone for financial security.

3. National Pension System (NPS): Secure Your Retirement

Designed for retirement planning, the NPS offers a mix of equity, corporate bonds, and government securities, allowing investors to tailor their asset allocation.

Key Features

  • Encourages retirement savings through withdrawal restrictions.
  • Balanced allocation between equity and debt for steady growth.
  • Employer contributions (up to 14% of basic salary) still receive tax benefits.

Although the direct 80C benefit is unavailable, the NPS is an excellent tool for building a retirement corpus while maintaining disciplined savings.

Summary of the 3 Options

Investment Returns Lock-In Risk Level Ideal For
ELSS High (13% avg. over 10 years) 3 years Moderate to High Growth-oriented investors
PPF Guaranteed (tax-free) 15 years Low Risk-averse investors
NPS Market-linked Till retirement Moderate Retirement planning

 

Final Takeaways

  • ELSS: Perfect for investors seeking high growth with a shorter lock-in.
  • PPF: A safe, stable option for long-term savings.
  • NPS: Ensures disciplined retirement planning with balanced returns.

These investments, despite the new tax regime, remain valuable tools for building a secure and profitable portfolio.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

 

UAN Activation Deadline for EPFO’s ELI Scheme Extended to January 15, 2025

The Employee Provident Fund Organisation (EPFO) has extended the deadline for activating Universal Account Numbers (UAN) and linking Aadhaar with bank accounts to January 15, 2025. This is mandatory to avail of benefits under the Employment Linked Incentive (ELI) Scheme. Initially set for November 30, 2024, the deadline was extended twice before the latest announcement.

What is the ELI Scheme?

The Employment Linked Incentive (ELI) Scheme was introduced in the Union Budget 2024 to promote job creation. It includes three components:

  1. Scheme A

Benefits first-time employees with a direct benefit transfer of one month’s wage (up to ₹15,000) in 3 instalments.

  1. Scheme B

Focuses on incentivising employment in manufacturing with support for EPFO contributions over 4 years.

  1. Scheme C

Supports employers by reimbursing up to ₹3,000 per month for 2 years for additional employees earning up to ₹1 lakh per month.

Steps to Activate UAN via Aadhaar OTP

Follow these steps to activate your UAN and link it with Aadhaar:

  1. Visit the EPFO Member Portal.
  2. Click on “Activate UAN” under the “Important Links” section.
  3. Provide your UAN, Aadhaar number, name, date of birth, and Aadhaar-linked mobile number.
  4. Verify the details and agree to Aadhaar’s OTP verification.
  5. Click “Get Authorisation PIN” to receive an OTP.
  6. Enter the OTP and submit.
  7. A password will be sent to your registered mobile number upon successful activation.

Read More About How to Activate UAN Online?

Why UAN Activation is Important

UAN activation and Aadhaar seeding are crucial as ELI scheme benefits will be disbursed through Direct Benefit Transfer (DBT) to employees’ accounts. Employers are urged to ensure all employees, especially new joiners, complete this process.

ELI Scheme Features

1.First-Time Employees

1-month salary (up to ₹15,000) for new workers entering formal jobs.

2. Manufacturing Job Creation

Incentives for hiring first-time employees, including EPFO contribution support.

3. Employer Support

Reimbursement of EPFO contributions for additional employees in all sectors.

While the ELI scheme was announced in the Union Budget 2024, its effective date and specific details are yet to be officially notified.

Act Now: Avoid last-minute hassles—activate your UAN and link Aadhaar before January 15, 2025, to enjoy the scheme’s benefits.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Closing Bell: Sensex Sinks 1,031 Points, Nifty Below 23,100 on January 13

The BSE Sensex plunged by 1,031.65 points (1.35%) on Monday, closing at 76,347.26. The 30-share index fluctuated between a high of 77,128.35 and a low of 76,249.72 during the session.

The NSE Nifty50 also ended the day lower, shedding 345.55 points (1.47%) to settle at 23,085.95. The index reached a high of 23,340.95 and a low of 23,047.25.

Top Gainers and Losers

The bears took control, with 46 out of 50 Nifty50 stocks closing in the red. Adani Enterprises, Trent, BPCL, Power Grid Corporation, and Bharat Electronics led the losses, falling by as much as 6.21%. However, 4 stocks—Axis Bank, TCS, Hindustan Unilever, and IndusInd Bank—managed to gain up to 0.78%.

The broader indices mirrored the benchmarks, with the Nifty Smallcap100 and Nifty Midcap100 each tumbling over 4%.

Sectoral Performance

Sectoral indices on the NSE platform painted a grim picture, as all sectors closed in negative territory, reflecting the widespread bearish sentiment.

Oil Prices

As of January 13, 2025, at 03:57 PM, Brent Crude was trading at $80.93, up by 1.47%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Budget 2025: CII Proposes 10-Point Plan to Simplify Business and Boost Transparency

The Confederation of Indian Industry (CII) has presented a 10-point agenda to the government ahead of Budget 2025. The recommendations focus on reducing the compliance burden, simplifying regulatory processes, and enhancing transparency to improve the ease of doing business in India.

Key Recommendations by CII

1. Streamlined Regulatory Approvals

CII suggests that all regulatory approvals across central, state, and local levels should be processed exclusively through the National Single Window System to simplify and speed up the process.

2. Faster Dispute Resolution

To address delays in legal proceedings, the capacity of courts should be enhanced, and greater emphasis should be placed on alternative dispute resolution (ADR) mechanisms for quicker outcomes.

3. Unified Environmental Compliance Framework

CII recommends creating a single, consolidated document for environmental compliance requirements to streamline processes and reduce complexities.

4. Better Land Access for Businesses

The industry body proposes incentivising states to establish an online integrated land authority that digitises land records, tracks disputes and improves land availability for new and expanding businesses. CII also suggests upgrading the India Industrial Land Bank (IILB) into a national-level land bank with central funding.

5. Timely Public Services Delivery

CII advises the government to pass a law mandating the timely processing of industry applications. If deadlines are missed, approvals should be automatically granted, ensuring accountability and efficiency in public services.

6. Enhanced Judicial Data and Tribunal Management

The scope of the National Judicial Data Grid (NJDG), currently tracking pending court cases, should include tribunal data, which forms a significant part of the backlog.

7. Simplified Labour Compliance

Labour laws remain cumbersome. CII urges the expansion of the Shram Suvidha Portal to cover all central and state labour law compliances, making it a one-stop solution for businesses.

8. Improved Trade Facilitation

The Authorised Economic Operator (AEO) programme, which provides faster customs clearance, should be made easier to access and more appealing to boost international trade.

9. Reduced Tax Disputes

CII highlights the need to minimise tax litigation by addressing case backlogs at the Commissioner of Income Tax (Appeals) level and strengthening mechanisms like Advance Pricing Agreements (APAs) and dispute resolution boards.

10. Focus on Ease of Doing Business

CII emphasises the importance of maintaining momentum in improving the ease of doing business by reducing compliance burdens related to land, labour, environment, and taxes.

CII’s Vision for Economic Growth

CII Director General Chandrajit Banerjee stated that simplifying regulations, reducing compliance, and improving transparency are critical to boosting competitiveness, driving growth, and generating employment. These reforms aim to create a more business-friendly environment, benefiting industries and the overall economy.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.