Is RBI ready to relook at environment of high liquidity and low rates?

7. August 2021 Sandeep Stock Market Research (0)

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Investors should allocate funds towards funds having a maturity of up to 3 years to prevent portfolio shocks from rising interest rate risks.

The Monetary Policy Committee (MPC) decided to keep policy repo rates and reverse repo rates unchanged at 4.00 percent and 3.35 percent respectively. The MPC also decided to continue with an accommodative stance for as long as necessary to revive and sustain growth on a durable basis. At the outset, it appears that MPC has maintained the 'status quo, but as one reads the statement in detail, the indications are clearly otherwise as reflected in the bond yields which were trading 5-10 bps higher post policy announcement.

The minutes of the earlier MPC in June 2021 had already reflected concerns on persistently high inflation readings and the fact that it was being overlooked primarily to combat the economic slowdown induced by Covid-19. The concern manifested itself in a dissenting vote in this MPC for maintaining the accommodative stance. However, the decision to keep rates unchanged was unanimous.

The MPC also outlined a sequentially increasing amount for the Variable Reverse Rate Repos from current Rs 2 lakh crore to Rs 4 lakh crore by September-end. The governor has reassured that this should not be read as reversal of the accommodative stance. However, reduction in liquidity is likely to result in overnight rates inching up slightly.

While high consumer price index (CPI) readings are still being considered transient and supply side driven, there is a clear concern on readings beyond the upper band 6 percent on RBI's inflation target. The MPC also did acknowledge that economic recovery is on expected lines. Thus, for the financial year 2021-22, while the GDP growth estimates were maintained at 9.50 percent, the inflation forecast was revised upwards from 5.1 percent to 5.7 percent, nearer to the upper tolerance band. It will be difficult for the central bank to justify its accommodative stance if the estimates were to be revised further upwards going ahead.

Markets have been concerned about the rising CPI for quite some time but the central bank was of an alternative opinion. This tussle was reflecting in the auction results on the 10-year benchmark instrument over the last few months. However, RBI did appear to relent a bit and acknowledge the concern on inflation as the 10-year benchmark was recently seen trading at 6.20 percent levels. Today's policy statement clearly acknowledged the market's concern on the rising CPI readings.

Covid-19 led economic slowdown had led RBI to take various measures to support economic growth and maintain an accommodative monetary policy in line with most central banks globally since March 2020. In today's policy, the central bank appears to be hinting, for the first time, that it is probably getting ready to relook at the environment of high liquidity and low rates which have been prevalent for almost a year and a half now.

There was a definite change in the tone of today's policy statement which, though subtle, was clearly indicative of things to come. The concern on growing CPI readings will continue to reflect on the benchmark going ahead - leading to heightened volatility on the longer end of the curve. Given the rate scenario, we believe that investors should allocate funds towards funds having a maturity of up to 3 years to prevent portfolio shocks from rising interest rate risks.

Job Advertisements: Time to come clean on salary to be offered?

7. August 2021 Sandeep Stock Market Research (0)

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Job seekers want recruiters to disclose approximate salaries for the roles advertised so that they can make better decisions while applying for these positions.

Vini Ahuja, a 34-year-old software professional from Bengaluru, has been job looking for the past two months. the most important hurdle that she is facing thus far is that the incontrovertible fact that job positions being advertised doesn't offer any details about the salary and it's disclosed just one occasion a candidate has cleared the last round of selection.

"I have appeared for five interviews thus far and each place has an equivalent policy. In three cases, I acknowledged that the salary being offered was 15 percent less than my current CTC (cost-to-company). once we need to disclose our current salary and provides proof, why won't they," she wonders.

There is a rising demand among job seekers in India to urge proper salary disclosures for the positions advertised by recruiters. The request here is that albeit the precise salary can't be revealed, a ballpark should tend out.

The justification is that since companies insist that candidates disclose their current salaries, why shouldn't they too? And eventually, the salary is one among the crucial factors to make a decision whether or to not accept employment role.

Currently what happens during job interviews is that the compensation is discussed at the previous stage. due to this, it becomes a troublesome decision-making process for candidates.

Hiring managers would state that compensation may be a 'trade secret'. Fair point but what's the harm in giving a range? rather than saying Rs 28.7 lakh CTC for a software developer with 10 years of labor experience just say provides a range between Rs 25 lakh-30 lakh once a year .

This makes the method far easier. A candidate who currently earns Rs 35 lakh wouldn't consider applying for the role. rather than them rejecting the work offer at the last round supported the pay, it's way better to state the compensation upfront.

It also helps save time and shut critical positions quicker. tons of back-and-forth on pay happens between the candidate and therefore the company HR occurs after the ultimate interview has been cleared only because the figure isn't shared beforehand .

Varun Bose, a tax consultant from Kolkata had three rounds of interviews at a consulting company between March and July 2021. He had a good idea of the industry salaries and had agreed to use for this position (where he was approached by the company).

However only within the last week of July was he told the pay, which was actually 20 percent less than his current salary.

"I didn't take up the work but i actually regret the very fact that I could have applied at other places had this information been given before," he says.

Giving an indicative CTC upfront means time are often dedicated to interviewing relevant candidates to guage whether or not they are fit the stress of the work role. With this, the 'salary bargaining time gets significantly hamper and vacant positions might be filled during a few months.

If you expect transparency from employment seeker, it's essential that you simply be transparent too.

RBI Policy: MPC keeps repo rate unchanged at 4%

6. August 2021 Sandeep Stock Market Research (0)

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The RBI MPC said it will continue with the accommodative stance as long as necessary to support a struggling economy hit by the COVID-19 pandemic.

The Federal Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC), on Transfiguration, kept the repo rate -- the key lending rate at which banks lend short-term rates to banks -- unchanged at 4 percent. The monetary policy stance has been retained at 'accommodative'. An accommodative stance means a rate hike is unlikely.

The MPC said it'll continue with the accommodative stance as long as necessary to support a struggling economy hit by the COVID-19 pandemic. The announcement came in line with what most economists predicted within the backdrop of a persistently high retail inflation and uncertainty surrounding the expansion.

Governor Shaktikanta Das cautioned against the threat of a possible third wave of the pandemic and guaranteed that the financial institution will remain vigilant. “The need of the hour isn't to drop out the guard and remain vigilant against any possibility of third-wave especially within the backdrop of rising infections in certain parts of the country,” RB Governor Shaktikanta Das said announcing the monetary policy.

The MPC has cut key lending rates by 250 basis points since February 2019 to support growth. The rate-setting panel said it'll closely watch the inflation-growth scenario going ahead while deciding the course of policy actions.

The RBI has increased the retail inflation estimate for the fiscal year 2021-22 to 5.7 percent from 5.1 percent projected earlier while retained the GDP growth target for the fiscal year at 9.5 percent.

Price pressures have stayed high within the recent months. The closely tracked Consumer Price Index-based inflation (CPI) for the month of June rose 6.26 percent, as food prices hardened further, and transportation costs rose thanks to higher petrol and diesel prices. The June print came slightly less than 6.30 percent for May, which was the very best in six months but continues to be above the MPC’s temperature of 2-6 percent.

Das said while the recent inflationary trend has evoked concerns, this is often more transitory in nature. Das emphasized that the conduct of MPC has been geared to rejuvenate growth. "Continued policy support is required to nurture a nascent economic recovery," Das said.

Buy Vinati Organics; target of Rs 2300: ICICI Direct

5. August 2021 Sandeep Stock Market Research (0)

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ICICI Direct is bullish on Vinati Organics has recommended a buy rating on the stock with a target price of Rs 2300 in its research report dated August 02, 2021.

ICICI Direct's research report on Vinati Organics

Vinati Organics may be a leading manufacturer of specialty chemical and organic intermediaries with global market leadership in its two key products- 2- Acrylamido 2 Methylpropane sulfonic acid (ATBS) and Isobutyl Benzene (IBB). Starting with IBB and subsequent forays into IB, ATBS, Butyl phenols, the corporate is now moving towards antioxidants. the corporate has two manufacturing facilities at Mahad and Lote In terms of revenue contribution, ATBS constitutes ~40-50% of overall revenue followed by IBB of 20-30% while the remainder is from other segments like IB, Butyl phenols, and derivatives

Outlook

We retain a BUY rating on the rear of a far better growth outlook from ATBS and newer products like Butyl phenols and antioxidants We value Vinati Organics at 50x P/E FY23E EPS to reach a revised target price of Rs 2300/share (earlier Rs 2220/share).

Coming soon: Offshore campuses of Indian institutes

4. August 2021 Sandeep Stock Market Research (0)

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The effort is part of a brand-building exercise by the Indian government to portray India as an international study destination

Education ministry estimates indicate that on the brink of 200,000 students travel abroad per annum for education, leading to an outflow of just about Rs 50,000 crore ($6.7 billion) per annum.

Don't be surprised if your favourite college or university sets up a campus within us or UK . the govt, under the University Grants Commission (UGC), will now allow colleges and universities to line up offshore campuses abroad.

Sources said that detailed guidelines on the category of institutes, supported academic history, batch size and courses, are going to be released by the govt within the coming weeks.

“This is a component of brand name building of Indian institutes. at the present, India isn't top-of-mind for international candidates, especially from the West, and that we want to vary that,” a politician said.

Once the rules are released, it's likely that an initial list of institutes is going to be involved to measure their interest in fixing campuses abroad.

What does this involve?

The internationalisation of India's education system has been a key focus of the National Education Policy (NEP) – 2020.

Addressing a virtual gathering on July 29, Prime Minister Narendra Modi had said an 'office of international education has been found out at 250-plus universities in India and this may enable them to draw in foreign students.

Education ministry estimates indicate that on the brink of 200,000 students travel abroad per annum for education, leading to an outflow of just about Rs 50,000 crore ($6.7 billion) per annum.

Conversely, it's estimated that 48,000 international students study in institutes across India.

Promoting 'Brand India'

The education ministry wants to market 'Brand India' as a study destination through a mixture of schemes, including global campuses, incentives to foreign institutes to line up Indian campuses, also as 'twinning programmes'.

“Many institutes in India have international alumni who are now employed in large corporations. The institutes are going to be asked to form use of this alumni network as a part of the brand-building exercise,” another government official said.

Once the Indian institutes found out about offshore campuses, they're going to be ready to give international students a teaser of what's on offer. These students would then be encouraged to require up other programmes at the Indian campuses.

Will it work?

While the Indian regulatory agency for universities, the University Grants Commission, will give the go-ahead to line up offshore campuses, the important test would dwell on getting approvals from country-specific regulators.

In us or UK, as an example, new institutes (even offshore campuses) would wish to line aside fixed capital for college kids and infrastructure. an in-depth verification of the institute's financial background, statement of purpose and safety standards is additionally administered .

Prashant Maheshwari, a foreign education consultant based in New Delhi, told Moneycontrol that albeit the Indian government is in a position to secure faster approvals through its diplomatic relations with a rustic, the initial students would primarily be Indian.

“If you check out the US for instance, students are very wary of latest entrants. albeit an Indian institute that features a 100-year legacy sets up an offshore campus within the US, say, in popular locations like NY, Boston, Texas or Atlanta, the initial batches could consist mostly of persons of Indian origin,” he said.

However, unlike former US President Donald Trump, current President Joe Biden is receptive to new educational institutes being found out.

President Joe Biden had stated in February 2021 that he plans to extend grants for brand spanking new and existing education institutes to enhance graduation rates and reduce income disparities.

Here, any educational institute helping improve career outcomes for low-income students, students of colour, first-generation students, and students with disabilities are going to be provided funding.

In the UK, the USP of an institute and whether it's needed within the country is assessed before approval is granted. it's not an easy statement, but 'evidence of need', because the UK government puts it.

This would mean that an Indian institute fixing a UK campus would wish historical evidence of how it's essential for UK residents and the way different its courses would be from those offered by existing higher-education institutes. Final approvals are supported by this data.

The West Africa and East Asia opportunity

Stephen Duraiswamy, the Managing Partner at study-abroad advisory BreakHigh Consulting, explained that rather than aiming for the standard Western markets, Indian institutes looking to expand via offshore campuses should target markets like West Africa and East Asia.

“Places like Ghana, Senegal, Nigeria, Taiwan and Mongolia are where Indian institutes should eye a presence. These regions would enjoy quality international education and that they also are home to an outsized ex-pat community, which can aid brand building for Indian institutes," he added.

Twinning programmes would be a precursor to the present offshore campus expansion. Here, students from India could study one semester at an institute abroad through a partnership and the other way around.

Once the offshore campuses are found out, Indian students in domestic campuses could also get a chance to pursue a neighbourhood of their degree programmes at these international locations.

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Global inflation on the rise. Why aren’t central banks worrying?

3. August 2021 Sandeep Stock Market Research (0)

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Central banks are under pressure from rising inflation but so far they have brushed it aside as ‘transitory.’

The COVID-19 pandemic continues to challenge central banks. When the pandemic struck and economies nosedived, the pressure was on central banks to rescue and sustain the economy. This led to a fast opening of liquidity floodgates to stay the economy humming. A year later fortunes have changed. And now an increase in inflation has put pressure on central banks to tighten the hosepipes they opened last year. How do central banks deal with this sudden change of events?

The accompanying graph pictures this turnaround of fortunes during a few selected advanced economies. We see that since the pandemic in February 2020, inflation in these economies which was already less than the target of two percent, started drifting even lower. The low inflation indicated low demand which was due to global a slowdown as policymakers imposed lockdowns that curtailed economic activity.

From Jan 2021 onwards, we see rise in inflation due to stronger recoveries in economies and partly due to the bottom effect. In its June 2020 outlook, the International fund had projected the planet economy and advanced economies to shrink 4.9 percent and eight percent respectively in 2020. Since then, IMF has upgraded its forecast in subsequent outlooks. within the recent July 2021 outlook, it said the planet economy and advanced economies contracted 3.2 percent and 4.6 percent in 2020.

Central banks have come struggling thanks to this sudden rise in inflation. However, thus far they need stayed faraway from tightening monetary policy. The catchword for central banks regarding inflation is ‘transitory’ as seen in recent monetary policy statements of Federal Reserve System , European financial institution and Bank of England. IMF’s July outlook also used an equivalent word.

Why aren’t central banks worried? There are multifold reasons.

First, central banks actually are going to be proud of inflation being above target. For nearly a decade now, the inflation in developed countries has been less than targeted resulting in criticism. This was obviously ironical as central banks are often criticized for higher inflation. The Federal Reserve System even tweaked its framework from inflation targeting to average inflation targeting (AIT). Under AIT, if inflation has been lower for a particular period, the Federal Reserve System will allow inflation to be higher in order that average inflation over the whole period to be 2 percent.

Second, there's still slack within the economy and growth and unemployment are still not at pre-pandemic levels. this needs continued support from central banks.

Third, inflation has risen thanks to supply chain disruptions which are gradually easing with rising vaccinations and normalcy.

Fourth, commodity prices have also played a task within the recent rise in inflation. Core inflation, which excludes fuel and food prices, is high only within the case of the US.

Fifth, high inflation is additionally on account of the bottom effect. The chart shows that inflation ebbed in Feb 20 then begins to rise in Feb 21 (For the Euroarea, in December). So, albeit the inflation index has increased marginally from Feb 2021, the change from last year are going to be magnified as index had dipped last year. this is often the bottom effect. As a result, IMF within the July 21 outlook notes “the current spikes in annual inflation partially are the results of mechanical base effects from last year’s low commodity price”.

Last but not least, is that the important factor of inflation expectations. If inflation expectations also go up, then central banks poise themselves for action. In the US, while survey-based inflation expectations have edged up, those tracked by financial markets have remained on the brink of the inflation target. In Europe and UK, inflation expectations are broadly anchored.

Having said that, if current inflation remains elevated, inflation expectations also will inch up creating concerns for central banks.

Coming to Emerging and Developing countries (EDCs), inflation has risen there too. Unlike developed countries, EDCs are never during a comfortable position on the inflation front as food prices have both higher weightage within the inflation basket and influence inflation expectations.

On the highest of it, EDCs also will be watching inflation trends in developed countries. If inflation continues to travel up in developed world, pushing central banks to tighten monetary policy before expectations, one could see capital outflows from the EDCs. this is often what we saw in 2013 when Fed chair Ben Bernanke just announced the likelihood of tapering policy resulting in tantrums and chaos in EDC markets.

To sum up, inflation seems to be back after being within the wilderness for quite a decade. Ever since the 2008 crisis, economists are divided inflation in two camps. The pessimists have constantly warned that inflation is round the corner. On the opposite hand, the optimists have suggested that central banks needn't worry about inflation and will instead specialize in growth.

When inflation had remained muted, the policy weight was towards the second camp. The virus shock has brought inflation back to the discussion. Developed country central banks might not be worried over inflation now, except for how long is yet to be seen.

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Share Market Closing Note

2. August 2021 Sandeep Stock Market Research (0)

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Benchmark indices ended higher with Nifty above 15,850 on August 2 led by the auto, realty, and oil & gas stocks.

At close, the Sensex was up 363.79 points or 0.69% at 52,950.63, and the Nifty was up 122.20 points or 0.78% at 15,885.20. About 2007 shares have advanced, 1071 shares declined, and 136 shares are unchanged.

Shree Cements, Titan Company, BPCL, Grasim Industries, and Eicher Motors were the top Nifty gainers. UPL, Tata Steel, Bajaj Finserv, Bajaj Finance, and NTPC were among the top losers.

All the sectoral indices ended in the green with auto, IT, oil & gas, and realty indices up 1-4.5 percent. The midcap and smallcap indices added 1 percent each.

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Topic :- Time:3.00 PM

Nifty spot if closes above 15900 level then expect some further up move in coming sessions and close below above-mentioned level will result in some sluggish movement. Avoid open positions for tomorrow.

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Topic :- Time:2.20 PM

Just In:

HDFC Q1 results: Net profit falls 1.7% to Rs 3,000.7 crore, NII up 22% at Rs 4,146.7 crore

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Topic :- Time:2.10 PM

15900 Nifty spot to act as an important level for further upmove and if it breaks and trade below 15860 levels then some decline can follow in the market.

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Topic :- Time:1.30 PM

COPPER Trading View:

COPPER is trading at 755. If it breaks and trades below the 754.60 level then expect some decline in it and if it manages to trade and sustain above the 755.20 level then some upmove can follow in it.

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Topic :- Time:1.00 PM

Nifty is going strong. Nifty spot if manages to trade and sustain above 15900 levels then expect some quick upmove and if it breaks and trade below 15860 levels then some decline can be seen in the market.

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Topic :- Time:12.30 PM

Just In:

Reliance Retail to buy out Subway India for Rs 1,488-1,860 crore.

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Topic :- Time:12.20 PM

Just In:

PolicyBazaar Files DRHP for IPO, Looks To Raise Up To Rs 6,017.5 Crore.

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Topic :- Time:12.00 PM

Nifty is still going strong. Nifty spot if manages to trade and sustain above 15900 levels then expect some further upmove and if it breaks and trade below 15860 levels then some decline can be seen in the market.

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Topic :- Time:11.30 AM

News Wrap Up:

1. Sensex up 350 pts; BSE Midcap & Smallcap indices hit record peaks

2. Realty shares in demand; Oberoi, IB Realty, Prestige Estates, Sobha up 5%

3. Factory growth rebounded in July, hiring resumed after 15 months

4. NSE seeks Sebis go-ahead for IPO amid pressure from shareholders

5. UltraTech Cement accounts for 77% of Aditya Birla Groups profit in FY21

6. Small business suffer as banks shut current accounts after RBI circular

7. Unacademy raises $440 million in fresh funding at $3.44 billion valuation

8. Covid-19 in numbers Cases 31,695,958 | Deaths 424,773 | Vaccination 472,223,639

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Topic :- Stocks under F&O ban on NSE

1. Sun TV Network

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Topic :- Stocks in News

Britannia Industries: The company reported lower profit at Rs 387 crore in Q1FY22 against Rs 542.7 crore in Q1FY21, revenue fell to Rs 3,403.5 crore from Rs 3,421 crore YoY.

Equitas Small Finance Bank: The company reported sharply lower profit at Rs 12 crore in Q1FY22 against Rs 58 crore in Q1FY21, net interest income increased to Rs 461 crore from Rs 404 crore YoY.

Cholamandalam Investment: Board approved raising up to Rs 28,000 crore via non-convertible debentures. The company reported lower standalone profit at Rs 326.80 crore in Q1FY22 against Rs 430.93 crore in Q1FY21, revenue from operations increased to Rs 2,466.89 crore from Rs 2,113.63 crore YoY.

Bandhan Bank: The bank reported sharply lower profit at Rs 373.1 crore in Q1FY22 against Rs 549.8 crore in Q1FY21, net interest income rose to Rs 2,114.1 crore from Rs 1,811.5 crore YoY.

UPL: The company reported higher profit at Rs 749 crore in Q1FY22 against Rs 653 crore in Q1FY21, revenue rose to Rs 8,515 crore from Rs 7,833 crore YoY.

Tata Motors: The companys sales in the domestic & international market for July 2021 stood at 54,119 vehicles, compared to 27,711 units during July 2020.

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Topic :- Results on August 2

HDFC, Punjab National Bank, Emami, Ajmera Realty & Infra, Balaji Amines, Carborundum Universal, Castrol India, CG Power and Industrial Solutions, Nahar Spinning Mills, Orient Cement, RBL Bank, Shree Renuka Sugars, and Varun Beverages will release quarterly earnings on August 2.

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Topic :- Nifty Opening Note

Indian Stock Market Trading View For 02 Aug,2021:

Nifty to turn volatile as the day progresses. Global cues to dictate trend. Stock specific action expected in the market. Use all decline as an opportunity to go long..

Nifty spot if manages to trade and sustain above 15800 level then expect some quick upmove and if it breaks and trade below 15720 level then some decline can be seen in the Nifty. Please note this is just opening view and should not be considered as the view for the whole day.

Please visit again this section for live stock market and commodity market updates.

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Inflation rising, MPC will have to tread a cautious path, says Upasna Bhardwaj of Kotak Mahindra Bank

2. August 2021 Sandeep Stock Market Research (0)

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Beyond August, we expect the onset of gradual monetary policy normalization, with liquidity management tools at the fore to reset the floor rate slowly within the policy corridor. For sure, the RBI will need to be more agile in using a variety of tools to calibrate the policy.

The Reserve Bank of India's monetary policy committee's (MPC) dilemma has worsened since it last met in June, with the two inflation readings released after the meeting shooting past the central bank's upper tolerance band of 6 percent.

The high-frequency data continues to improve, signalling that the worst is behind us. MPC’s statement and the minutes both had highlighted the upside risks to inflation, with adequate reference to the need for the government to take measures on the supply-side inflation.

However, we haven’t seen much traction on that front, which continues to keep upside risks to inflation intact. The progress of the monsoon has been tepid, weighing on kharif sowing, which remains about 8.9 percent lower than the last year.

The rains in the coming two months will be crucial to buffer from further supply shocks. More importantly, even before the inflation overshot, some MPC members in the June minutes were cautious on inflation, with one member noting that “clear signs of generalization in CPI (consumer price index) inflation setting in could be a tipping point where growth-inflation dynamics could alter”.

The members also highlighted that the “scope for accommodation existed since CPI inflation remained within the tolerance band”.

While we believe that inflation may trend below 6 percent from the next reading but upside risks remain amid weak monsoons and elevated global commodity prices.

Against this backdrop, MPC will have to tread carefully in managing the forward guidance, both on the policy and liquidity front. We believe that RBI’s room to ignore the inflationary risks is becoming increasingly difficult and it will soon have to get into action, though gradually.

In response to the inflationary threats, several emerging central banks have started to either hike policy rates or are tilting towards it. A few central banks in developed economies have started tapering or ending their pandemic relief asset purchase programmes.

There is already a growing debate on the timing, scale and pace of the RBI’s process of policy normalisation. Any guidance on the durability of the accommodative policy would bring in some sanity in the market.

Although as a lead signal, RBI is slowly letting lose its hold on bond yields and allowing a gradual settling on higher levels.

While in the upcoming policy we expect a status quo on rates and stance, the focus will be on the underlying tone of the statement, given the increasing risks of inflation.

We expect the RBI to revise its inflation outlook trajectory by 30-50bps across quarters, while the growth forecast of 9.5 percent may be only marginally tweaked accounting for the upside to their Q1FY22 projections— the central bank’s recent bulletin provides an estimate for Q1FY22 GDP of 22.1 percent compared to 18.5 percent mentioned in the June policy.

While near-term growth-related uncertainties will hold back MPC from changing the monetary policy stance in the August policy, it will be interesting to see any split in the voting pattern, given the improving growth momentum amid increasing inflationary risks.

Beyond August, we expect the onset of gradual monetary policy normalization, with liquidity management tools at the fore to reset the floor rate slowly within the policy corridor. For sure, the RBI will need to be more agile in using a variety of tools to calibrate policy.

Tools like the overnight voluntary retention route (VRR), increase in quantum of 14-day VRR and allowing non-bank participation in the VRR could be the playbook before a reverse repo hike in December.

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Break the stigma: Time to make mental health part of sick leaves

31. July 2021 Sandeep Stock Market Research (0)

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Employees are often forced to give excuses for taking time off for mental health. It is crucial that organizations make mental health leave a standard HR practice.

Polls are popular on social media lately . One such asked users about the justifications that they gave at workplaces to hunt day off for psychological state .

The answers range from headaches, indigestion , viral fever to even funerals of grandparents (who are dead).One thing is obvious . Employees are hesitant about admitting that they needed leaves for emotional health. And what option do they really have?

Sick leaves are restricted to about 10-12 days a year at the most companies unless there's hospitalization for a medical emergency. Amidst this, the concept of psychological state leaves is non-existent.

While it does appear to be psychological state awareness is rising at Indian workplaces, this is not true everywhere. invite a three-day psychological state leave from your employer and therefore the cold stares will follow.

"My company has psychological state awareness sessions often. But the truth is that the HR team itself isn't conscious of these issues. If you time interval off, they ask questions and even proof," said Megha Gonsalves, a technology professional from Mumbai.

The 'proof' that companies enforce refers to the doctors' certificate for sick leaves. But what about mental health? How will an employee be ready to produce such documents, unless he/she is hospitalised for further treatment?

Here, having a transparent policy for psychological state would help. as an example , why can't psychological state leaves be made a part of the regular sick leave? this is able to enable employees to require day off for anxiety/depression and allied issues without feeling guilty.

Companies could offer say upto five to seven days during a year as psychological state leaves. The key here is to trust the worker and not invite proof. No such proof exists except the medical bills for anti-depressants which isn't prescribed to everyone.

Corporate HR managers would say why have these leaves within the first place when individual employees can approach their team managers for specific time off? the solution here is stigma.

At a mean Indian workplace, psychological state issues would cause employees being termed 'unstable' and 'unreliable'.

Shaeeda Nigam, a 29-year-old human resource professional from Kolkata recounts how she was faraway from a key project overnight when she sought leave to ascertain a therapist.

"I are handling severe anxiety and panic attacks since 2019. I just needed two days leave to ascertain a psychologist and obtain some medical tests done. But this backfired and that i was faraway from a core project i used to be performing on ," says Nigam.

She has now switched jobs but remains not fully comfortable seeking leaves for psychological state . Nigam expains that while her team knows about her anxiety issues, there's still an inherent fear that her employer may consider her incapable.

"Often, I structure excuses of getting a fever. Because unfortunately fever is suitable but anxiety isn't ," admits Nigam.

While workplace stress is among the various reasons for deteriorating psychological state , having a conducive HR policy to permit psychological state leaves may be a must-have.

But, preconceived notions about employees 'faking it' continue at the workplaces. Also, what must be drilled down is that psychological state is simply like all other medical condition that's treatable with therapy and drugs .

Priyanuj Tyagi who heads talent management at an insurance broking firm in Hyderabad says that offering psychological state leaves may be a tricky situation because they would not want employees to misuse leaves.

When asked whether the organisation will take responsibility for a mental breakdown of a staffer within the office, he has no answers.

Corporates also got to realise that there's a transparent impact of psychological state on productivity. So if an employee turns up at work with a nasty psychological state , this might affect their daily tasks and eventually also cause financial losses.

The World Health Organization estimated that India will suffer economic losses amounting to a staggering 1.03 trillion dollars from psychological state conditions between 2012 and 2030.

Though India-specific information isn't available, data from the American Psychiatric Association showed that employees with unresolved depression experience a 35 percent reduction in productivity. this is able to contribute a whopping $210.5 billion loss a year in absenteeism, reduced productivity, and medical costs to the US economy.

The Indian economy and its corporations can certainly not afford these losses. the choice to supply psychological state sick leaves must be made soon; better late than never.

National Education Policy launches credit-based flexible courses for students, to reduce dropouts

30. July 2021 Sandeep Stock Market Research (0)

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After the first year of a UG degree, a certificate will be awarded. On completion of the second year, a diploma will be awarded while the three-year program completion will lead to a Bachelor's Degree.

Imagine this situation. A student realizes that he/she does not have the aptitude/interest in the engineering course they have enrolled into. Leaving midway would mean that they lose an entire year, including fees and academics. So, what is the alternative?

Rather than dropping out of the course, this student can now store credits earned in the year into an 'Academic Bank', and join any other program within seven years.

Lateral entry and exit from higher educational programs was a long-standing demand in India. As part of the National Education Policy (NEP) 2020, the government has now allowed this formally.

The NEP 2020 completed one year on July 29. On this occasion, Prime Minister Narendra Modi launched the Academic Bank of Credit (ABC) that will facilitate multiple entry/exit into courses.

To enable this, the University Grants Commission (Establishment and Operation of Academic Bank Of Credits in Higher Education) Regulations, 2021, have been notified. These guidelines will govern the entry and exit into all universities (including the deemed-to-be category) and autonomous colleges.

This will be applicable from the academic year 2021-22. So credits earned from this year onwards can be stored digitally.

Here is a look at how the new ABC system will work:

What is the credit system in a college education?

The regulations state 'credit' means the standard methodology for calculating one hour of theory or one hour of tutorial or two hours of laboratory work per week for a semester (13-15 weeks).

This leads to the award of one credit by the educational institution. In addition, credits for the internship will be one per week of internship, subject to a maximum of six credits. These credits are stored digitally using DigiLocker.

Where will these credits be stored?

The credits will be stored in an ABC or Academic Bank Account. This is similar to a regular savings bank account which an individual student can operate.

Once this account is opened, all academic credits will be deposited into it. These credits will be required to award degrees, diplomas, or certificates on completion of an academic course. Each student can store these credits for a maximum of seven years.

If a student switches from one course to another within the recognized universities/colleges under UGC, the credits in the academic bank can be redeemed.

But remember that your university/college has to first get registered with the UGC for enrolling into ABC. Students shall be required to earn at least 50 percent credits from the parent institution, where he/she is enrolled for a program.

Are all students eligible to enroll in this academic bank?

No. Eligible institutes are universities and autonomous colleges accredited by either the National Assessment and Accreditation Council (NAAC) with minimum ‘A’ grade, or by the National Board of Accreditation (NBA) for at least three program (s) with a minimum score of 675 individually.

However, if the number of program (s) being run by the institution is less than three, 675 or more marks should be secured in each of the programs.

An alternative is that they should be among the top 100 National Institutional Ranking Framework (NIRF). Similarly, Indian Higher Educational Institutions (HEIs), appearing in the top 1,000 world ranking of Quacquarelli Symons (QS)/ Times Higher Education (THE), or are declared Institutions of Eminence (IoE), are also eligible.

How does the credit system work?

There are five levels -- Level 5 to Level 10. After the completion of each level, which is typically two semesters, a student is eligible to get either a certificate, diploma, or degree.

For entry into level 5, the eligibility is a school leaving certificate after the completion of Class 12. Over and above this are the entry requirements specific to each university/HEI.

Once a student completes the first year in college with 36-40 credits, he/she is awarded a certificate.

Credit

In case he/she decides to exit the program, the ABC will store these credits that can be redeemed for rejoining this course or an allied course within seven years.

If the student continues to the second year and completes it with 72-80 credits, a diploma is awarded. Similar to the first year, he/she can exit at this stage with a diploma and can rejoin within seven years after redeeming the credits.

Once a student completes the third year of a UG degree program, he/she will be awarded a Bachelor's Degree. Here, 108-120 credits are required.

When it comes to the Master's level, a student can exit after one year, with a one-year diploma. Completion of the full two-year program will lead to a Master's Degree.

Over and above this is the doctoral degree for which the course work and the thesis will determine its completion. The MPhil program has been done away with.

Can anyone enter courses laterally?

While the ABC will store credits for a maximum duration of seven years, he will have to frame rules for lateral entry. This means that the entry of students directly into the second/third year of a course will depend on the rules set by each HEI.

Here, students who have pursued allied courses will be allowed lateral entry. So if you are an English literature student who wants to switch to engineering in the second/third year, that wouldn't be possible.

Also, the UGC guidelines have stated that a student can only enter at odd semesters and exit at even semesters. This means that you cannot enter/exit a program in the middle of an academic year and should have completed at least two semesters.

A similar glide path will be followed for entry/exit in the vocational education field as well.

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