Why loan against securities is a better option

The consequences of rising Interest Rates
in the USA and India
Is India’s infrastructure ready or an EV Future
Accelerators As Catalysts Of Growth
Upcoming IPOs
Happy Clients
Topics Covered in the Issue
Your Monthly Stock Market Newsle�er
September | 2022
MARKET
THE
BULLETiN

Is India’s infrastructure ready or an
EV future?
Electric vehicles have disrupted the automo�ve industry and have become quite a buzzword. Even though the number of electric
vehicles on the road is s�ll small compared to the total produc�on, the growth trajectory is growing rapidly. It has become evident
that the future belongs to e-mobility through EVs. Some luxury car manufacturers, such as Audi, have announced that all the new
vehicles will be electric. Even in the more affordable segment, manufacturers such as Tata Motors, MG Motors, and Mahindra have
begun electric car manufacturing.
Tata Motors is currently the industry and market leader for electric vehicles (EVs), not just in the passenger car segment but also in
the trucks, buses, and defense vehicle segments. Tata holds an edge over others as it has the ability to access various resources from
its R&D centers across the globe.
This shi� from dependency on fossil fuels to electric cars has a lot of reasons. The main reasons are the push for clean energy and
the goal of reducing carbon emissions as a country. The reason which concerns most consumers is to reduce fuel costs, given the
recent high petrol and diesel prices. The opera�onal costs of EVs stand at a drama�cally lower level, but the capital investment is
more than in conven�onal fossil fuel-based vehicles.
Now that the passenger car industry is out of the COVID-era doldrums, EV sales have nearly matched the pre-pandemic 2019 levels
in the first quarter of 2022.
Due to the widespread nature of the EV industry, it is considered a bellwether for economic growth, especially in developing econo-
mies like India. A large number of ancillary industries related to it also hold immense employment poten�al. Therefore, it became a
concern when the sales dropped.
The situa�on eased with a be�er semiconductor supply. The sale recently crossed eight lakh units in the April-June period. Even
though the sales and interest by consumers are both on the rise, so are the infrastructural concerns regarding the charging sta�ons.
Unless it has a strong presence, driving across the length and breadth of the country in electric vehicles will not be possible. Consid-
ering this, the government has set a target to set up one charging sta�on every 25 kilometers on the highway, but it is up to city or
state transport hubs to set up the same in urban areas. There are also prospects for semi-public charging and ba�ery swapping to
eliminate problems with charging EV ba�eries and related infrastructure. This could be a braveThe situa�on eased with a be�er
semiconductor supply. The sale recently crossed eight lakh units in the April-June period. Even though the sales and interest by
consumers are both on the rise, so are the infrastructural concerns regarding the charging sta�ons. Unless it has a strong presence,
driving across the length and breadth of the country in electric vehicles will not be possible. Considering this, the government has
set a target to set up one charging sta�on every 25 kilometers on the highway, but it is up to city or state transport hubs to set up the
same in urban areas. There are also prospects for semi-public charging and ba�ery swapping to eliminate problems with charging EV
ba�eries and related infrastructure. This could be a brave new world for those new to electric vehicle technology, but it will only
reflect a global scenario in India. There will be much dependence on the global supply chain and the supply of semiconductor chips.
As things stand, interest in electric vehicles will con�nue to grow as long as the right outside infrastructure is built to meet the
sector's needs.
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Your Monthly Stock Market Newsletter

Whenever the Federal Reserve raises its policy rates, the interest rate difference between India and the USA narrows. This hurts
emerging economies like India and makes the currency carry trade less appealing. As India is impacted by US rates, it will lead to
a capital flow out of India, and the Indian Rupee value will keep on plumme�ng. Alongside depressing the Indian Rupee, it will
also prolong import infla�on and impend more domes�c rate hikes.
When India is undergoing a current account deficit, successive rate hikes by the Feds have made the RBI increase the interest
rates to make the interest rate differen�al a�rac�ve for the dollar. When the RBI raises the interest rate, the cost of borrowing
goes up, and stocks whose prices are affected by interest rates feel some margin pressure.
As interest rates hike in the US, it increases the rela�ve returns on dollar investments, leading to a strengthening of the US
currency. Thus, as the dollar gains more strength, India will witness a greater ou�low of foreign investment. The federal hikes
came amid cri�cism that the US Central Bank has fallen short of the infla�on curve. It has been commented that earlier this year,
Powell �ll now maintained a statement that infla�on is a temporary problem related to supply chain issues; he is now struggling
to curb it. Prices since then have been going up owing to external factors such as the Russia-Ukraine war and the con�nued
shutdown of manufacturing hubs in China due to COVID-19.
This rate hike has a three-pronged impact.
1. As men�oned earlier, when the Fed raises its policy rates, the interest difference between India and the US becomes narrow.
This makes countries such as India less a�rac�ve for currency carry trade.
2. A high policy rate slows down the growth in the US, which impacts the globe nega�vely alongside China being maimed by the
real estate crises.
3. Higher policy rates lead to higher yields in the US debt market. This could lead to a churn in the debt markets of emerging
economies, impac�ng foreign investor support and enthusiasm.
The consequences of rising
interest rates in the USA and India

THE INDIAN ECONOMY OVER
THE LAST 200 YEARS AND
WHERE WE ARE GOING
India's independence brought hopes and dreams of not just individual freedom but also economic, social, and poli�cal freedom.
Seventy-five years later, India aims to join the $5 Trillion Club. India's independence in 1947 was an economic �pping point.
Steady deindustrializa�on by the Bri�sh had le� India hopelessly poor, with only about a sixth of Indians capable of reading and
wri�ng. The sharp social differences and the abject poverty did not leave much hope for the survival of India as a na�on.
Research shows that India's share of about 22.6% of the world's income in 1700 shrank to only 3.8% in 1952. As our former PM
Manmohan Singh would put it, "The Brightest Jewel in the Bri�sh Crown" became the poorest country in the world in terms of
per capita income at the beginning of the 20th century.
India's long-term economic growth accelerated at a steady pace in the last 50 years without any major reversals. While growth
averaged about 4.4% during the 1970s and 1980s, it rose to 5.5 % during the early 1990s-2000s and grew to 7.1% in the last
decade, which has stayed resilient even during the pandemic. Apart from the pandemic, India's growth resilience was put to the
test recently when it recovered and passed with flying colors during two major policy events: demone�za�on and GST imple-
menta�on, an indirect tax reform. Economists expect this next decade to be crucial and most likely to be the most important
decade in India's economic history. This decade could be seen as the healing decade, where the en�re focus is to regain the lost
economic strength. It is believed that the COVID-19 pandemic has allowed us to reflect, introspect, and tackle poten�al
long-term structural challenges that were earlier ignored. India's economy grew at an average pace of 7.7% in the last two
decades, but the growth was hardly uniform; experts called it a "sleeping S-shape growth trajectory." They also believe that it
would take about 10–15 years for the government to reach pre-covid debt levels. This would lead to more subdued spending as
compared to the 2010 decade.

STARTUP CORNER
The Ed-Tech Behemoth BYJU’S is all set to clear the remaining balance payment of offline test prep major Aakash on the 23rd of
this month. According to BYJU’S unqualified financials, the Ed-tech major has about Rs 1983.49 cr in pending cash payments to
clear the deal. This amount is roughly equivalent to about a fourth of the total deal amount. Apart from this pending payment,
BYJU’S will have to pay Rs 2007.74 Cr in equity post-comple�on of the merger. Aakash, a 33-year-old company, was bought by
BYJU's for $1 billion in April 2021 so that it could help people prepare for tests offline.
The acquisi�on was the largest edtech deal in India ever. A�er the pandemic, rivals like Unacademy and PW also started using
the phygital model.
Finally, the long-awaited day had come. With about $200 billion at stake, the decentralized, open-source blockchain Ethereum has
successfully merged with the Beacon Chain and its consensus layer. In theory, this merge will make Ethereum more efficient by
reducing the amount of �me it takes to process transac�ons when the network is busy.
One of the significant outcomes of this merge is the fundamental change in the func�oning of the chain, as Ethereum will now be
able to compete directly with all other proof-of-stake-based blockchain networks. Polygon is a decentralized second-layer block-
chain ecosystem that was built in India around Ethereum. Since most of the layer 2s use Proof-of-stake as their consensus mecha-
nism, Polygon remains quite relevant to this merge. There is a misconcep�on that this Ethereum merge will result in a lower gas
fee (a gas fee is a term denoted for transac�on fees on the Ethereum Network). Since there is no change in the gas fee, there is no
impact on the centralized apps or layer 2 solu�ons. The merge will just change how the blocks are created; it does not address the
reduc�on in individual costs. The gas-free will most likely stay around the same level as under the proof-of-work mechanism. In
the long run, upcoming upgrades should lower the gas fee and make the system even more stable. The merge may end up boost-
ing layer two performance, especially that of the scaling solu�ons, to keep them be�er than Ethereum. Even though this helps
layer two solu�ons like Polygon, automated market makers such as Uniswap and Quickswap will have to rework their algorithms
for smoother func�oning.
The merger will definitely affect how liquidity pools are managed by automated market makers.
BYJUS to clear Aakash Deal Payment on September 23
Polygon is all geared up for the hard fork after the Ethereum merge.
The Ethereum Merge marks the inception of energy-efficient crypto operations.

Accelerators As
Catalysts Of Growth
Upcoming IPOs
Independent India is now seventy-five years old and is home to about 73,698 startups. The Indian startup ecosystem has grown
exponen�ally in the past few years, leading to about 106 unicorns and 100+ soonicorns, adding about 7.7 lakh jobs. Startup acceler-
ators have been pivotal in this growth. From handholding and mentoring, from handholding and mentoring, even to funding and
networking, accelerators have helped numerous seed-stage startups in India.
The path to success for startups is neither a cakewalk nor a bed of roses. It is fraught with difficul�es and hurdles such as lack of
funding, inadequate infrastructure, and absence of a network. Startups o�en need support, mentorship, coaching, and knowledge
about the dynamics of the market, process, and technology, along with much-needed guidance on best prac�ces and strategies.
Accelerators bridge this gap by offering startups with capital, access to market, mentorship, networking opportuni�es, talent,
co-working space, and infrastructure.
Metropolitan ci�es like Bangalore, Mumbai, and Delhi-NCR are no longer limited breeding grounds. India now has several emerging
startup hubs such as Jaipur, Ahmedabad, Kochi, Kolkata, Chandigarh etc.
Mankind Pharma: The Parent Company of Manforce condoms and Prega news, has filed its Dra� Red Herring Prospectus ( DRHP)
with SEBI to float its IPO. Bankers es�mate the size of the IPO to be Rs 7,500 crore. The company’s IPO comprises an Offer For
Sale(OFS) of 4 crore equity shares by promoters and current investors. The offer for sale consists of 1 Crore Shares by promoter
Juneja Family, about two crore shares by Capital Interna�onal, up to 99.65 Lakh by Beige and about 50,000 Equity shares by Link
Investment Trust. The company has onboarded J M Morgan, Ci�, Jefferies, Axis, IIFL, and Kotak as investment bankers. In FY22
company had posted a revenue of about Rs8,000 Crores and an EBIDTA of Rs 2,200 crores.
This will be the largest IPO issue by a domes�c drug manufacturer a�er Gland Pharma’s IPO In 2020 of Rs 6,480 crores.

Penna Cement Industries Ltd: Penna Cement recently filed its DRHP with SEBI for Rs. 1550 crores and got approval to
float an IPO. It plans to float its IPO through a fresh issue of about Rs 1300 crores and an offer of sale of Rs 250 crores.
Penna Cement Industries Limited is one of the biggest cement companies in India. It was founded in 1991. The retail
por�on of the IPO might be 35%, while QIB is 50% and NII is 15%. Penna Cement IPO will be listed on the NSE and BSE
indices.
Hexagon Nutri�on IPO: The company will raise 600 crores through a combina�on of a fresh issue of 100 crores and an
offer for the sale of up to 30,113,918 equity shares at Rs 1 each. Hexagon Nutri�on exports its products to 70 coun-
tries. Flagship brand PENTASURE has been a key player in improving people’s nutri�onal status in all major hospitals in
the country. They have three factories located in Nasik, Chennai, and Thoothukkudi.
Pharmeasy: The company will raise Rs 6,250 crore through an IPO. Pharmeasy is an online marketplace where consum-
ers can order medica�ons, health care products, and lab tests. They deliver their products to over 22,000 zip codes in
over one thousand ci�es and towns. Mumbai, Kolkata, Delhi, Bengaluru, Ahmedabad, Hyderabad, Chennai, Thane,
Howrah, Pune, Gurgaon, Navi Mumbai, Jaipur, Noida, Lucknow, Ghaziabad, and Vadodara are among the major ci�es
in which they supply.
VLCC Healthcare: The VLCC Healthcare IPO will raise capital through a fresh issue of 300 crores and the sale of up to
8,922,672 equity shares priced at Rs 1 each. The retail quota is 10%, while QIB is 75%, and HNI is 15. They are one of
the foremost wellness and beauty service and product providers.
Customers are served at 310 loca�ons in 143 ci�es across 12 na�ons in South Asia, South East Asia, the Gulf Coopera-
�on Council Region, and East Africa. In Indian households, the VLCC brand has become one of the most popular
Wellness & Beauty products.
-Shraddha Jain

Excellent services and the best professional investment advice!
“
“
......................................................................................
-Phanibala V
OUR HAPPY CLIENTS
“
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-Shraddha Jain
Being a Rurash client, you can enjoy your sleep without worrying about your
wealth management issues. A professional company you can truly rely on.
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TOP
PERFORMING STOCKS
IN SEPTEMBER 2022

Adani Ports Specials
Indusind Banks
Eicher Motors
Vedanta
Yes Bank
Zee Entertainment

955.45
1233.20
3597.00
291.30
16.95
266.60

788.35
1080.45
3210.15
262.45
15.30
241.80

167.10
152.75
388.85
28.85
1.65
24.80

976.45/785.50
1251.05/1034.10
3640.40/3131.00
314.85/253.55
18.20/15.15
280.50/237.00

21.20
14.14
12.05
10.99
10.78
10.26

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