VOLUME 2 EDITION 17

BREAKING
QUICK CURRENT AFFAIRS

IN THIS ISSUE Haj subsidy ends, funds

IMPACT OF BUDGET ON to go into minority
STOCK MARKETS
education
CHINESE CO OFO MAY In keeping with Supreme Court orders and its own
political plank, the Modi government will no longer
TEAM UP WITH PAYTM provide subsidy to Haj pilgrims and has pledged that
funds saved will be used for the education of
WPI INFLATION EASES minorities, particularly girl children.
TO THREE MONTH LOW "There will be no subsidy for Haj from this year,"
minority affairs minister Mukhtar Abbas Naqvi told
the media on Tuesday during an interaction at the
BJP headquarters and said that the move is part of an
effort to "empower minorities without appeasement".
The decision is a political signal as well, as BJP has
argued that the subsidy, essentially for air travel, is a
demonstrative sop for Muslims and a diversion of
funds that might be better utilised.
Significantly, the decision did not evoke a protest
from Congress, which maintained it has no
objections to the end of the subsidy as long as the
funds were utilised for minority welfare.
 VOLUME 2
GST overcomes
initial hiccups to log
200 days, future in
balance
The goods and services tax (GST) crosses a
milestone on Tuesday when it clocks 200 days. But,
as insiders and experts argue, the new tax regime is
bracing for fresh disruptions as the next steps in the
seminal reform are rolled out.
Especially since Indian industry—particularly small
and medium enterprises—is still grappling with
frequent changes in the tax and demanding
compliance requirements. Presumably these
challenges will dominate the deliberations of the
GST Council, which will assemble in the capital on
18 January for its 25th meeting.
With incumbents
gaining ground, will
Reliance Jio disrupt
the market again?
Subscriber data for the month of November shows
that large telecom incumbents had their best month
since Reliance Jio Infocomm Ltd launched
operations. Bharti Airtel Ltd, Vodafone India Ltd
and Idea Cellular Ltd increased their market share
by 260 basis points in November. Their previous
best was a mere 50 basis points increase in April last
year.
While one swallow does not a summer make, some
analysts say the market share gains of the
incumbents could have prompted Reliance Jio to
cut tariffs earlier this year. As the accompanying
chart shows, Airtel’s market share is now higher
than levels prior to Reliance Jio’s launch, and in the
case of the Vodafone-Idea combine, the market
share is now only slightly lower than pre-Jio levels. 
EDITION 17
What impact
will Budget
2018 have on
the stock
markets?
How will the equity markets
react to the Union Budget 2018?
If the last few years are taken as
a precedent, it is likely that the
Sensex would appreciate in the
month after the budget. That’s
what Chart 1 shows. Since 2010,
the Sensex has gone up six times
out of nine in the month after
the budget. But then, the
benchmark index has also fallen
eight out of nine times during
the month prior to the budget.
During this time, there was one
interim budget as well.
“Historically, in a scenario of
negative expectations from the
Budget in the run-up to the
event, market participants
withheld their buying decisions
and once the event is out of the
way, they take exposure, which
causes a bump-up in the market
post the event,” says Deepak
Jasani, head (retail research) at
HDFC Securities Ltd.
It is plausible that if markets are
depressed prior to the budget,
they move up after it, provided
there aren’t any nasty surprises.
 VOLUME 2 EDITION 17

ICC Under 19 World Why 300

Cup: India steamroll Afghans
PNG by 10 wickets awarded
for second win Donald Trump
India continued their dominant run in the Under 19
World Cup by dishing out a clinical all-round a 'Medal of
performance with the ball that saw them steamroll
Papua New Guinea by 10 wickets in their second Bravery'
Group B match on Tuesday. Left-arm spinner US President Donald Trump has
Anukul Roy finished with impressive figures of 5/14 become the unlikely recipient of
as PNG were rolled over for a lowly 64. a 'Medal of Bravery', which has
Indian batsmen, in reply, broke no sweat and took been bestowed on him by 300
just eight overs to register their second win of the Afghans, for his tough stance on
tournament and fourth over PNG in Under-19 Pakistan, reported
World Cups. Prithvi Shaw and Manjot Kalra made RadioFreeEurope Radio Liberty
ensured India sealed a rather comfortable win that (RFE/RL).
helped improve their NRR to 3.89 to go atop "This Bravery Medal is from the
Group B. Afghan people to Donald

Chinese bike-sharing Trump, president of the United

States of America," says the

co Ofo may team up inscription on the medal, made

with funds collected by Afghans
from the Logar province, which
with Paytm is 60 kilometres south of Kabul.
Chinese bikesharing unicorn Ofo is in final stages Said Farhad Akbari, a
of striking a partnership with Paytm as it looks to community leader, told RFE/RL
expand aggressively in India, people aware of the that members of the community
matter said. This will be in addition to its stand- have "waited 16 years" for
alone mobile app, which lets people book a bike. It someone in the US
doesn't require any fixed docking stations. administration to make
Ofo has reportedly closed a $3 billion fund raise comments of the sort that
from Alibaba, which is also an investor in Paytm, Trump has made in recent weeks
and is looking to tap into the large user base of the concerning Pakistan.
payments major to get a toehold in India. Trump, in his first tweet of 2018,
Paytm has been diversifying in to multiple on January 1,
businesses beyond payments. As reported by TOI roundly berated Pakistan
earlier, companies like Ola and Zoomcar have also for giving the US "lies and
entered the space hoping that the Indian market deceit" in return for the $33
would play out in a similar manner like China, billion it has received in aid over
where bike sharing has been one of the hottest the last 15 years. 
segments and is growing rapidly. 
 VOLUME 2 EDITION 17

Fishappy founder on Winter

his eureka moment Olympics: How
Bring the fish market to your doorstep, home-
delivery for fresh fish via phone, WhatsApp and good is North
online. "I am a foodie and love fish. I would go to
the market, find the best fish and cook for my Korea at
roommates in Mumbai," he says. Soon Kundu found
himself the "official fish procurer" for friends and sport?
neighbours who didn't like to visit the smelly
Their representation at the
market. After spending 20 years promoting
Games is still to be confirmed,
experiential vacations, when Kundu moved to
but may be limited to two figure
Delhi, he decided it was time to make buying fish
skaters.
simpler. Fishappy works through a network of
Perhaps surprisingly, there are
verified local fish vendors.
sports North Korea is pretty

Soaring from good at and in some cases even

dominates.

stadium to skies, Take the summer Olympics.

Boeta Dippenaar’s
post-cricket career
takes upswing
When he isn’t commentating on cricket, Boeta
Dippenaar has a job with no fixed hours or
permanent address. He chases antelopes, rhinos and
buffalos through thick forests, balances heavy-duty
building materials hung off a sling, and gets
difficult military assignments across the border that
need him to wear night-vision-goggles. Once, he
even transported a consignment that was worth
$100 million.
The former South Africa batsman—scorer of more
than 12,000 first class runs who played 100 ODIs
and 38 Tests— is now an airport-transport
commercial helicopter pilot, a grade-two instructor
who has secured a night, instrument, cargo-sling
and game-capture rating. 
They have won far more medals
than bigger countries like India
and Nigeria - 54 in total.
Most of their Olympic glory has
come in weightlifting and their
athletes hold three world and
two Olympic records.
At the last summer Games in Rio
de Janeiro in 2016, they won
seven medals, including two
golds, putting them about
halfway up the table.
North Korea's women's football
team is ranked 11th in the world
by FIFA. And although they were
surprisingly knocked out of
qualifying for the 2019 World
Cup, they won the East Asia
Football Federation
Championship in December last
year. That success followed
winning the under-20s World
Cup in 2016.
 VOLUME 2
Supreme Court
crisis: Back to work
but not back to
business as usual
Three days after they came out to criticise Chief
Justice of India Dipak Misra, the four most senior
judges of the Supreme Court returned to the court
rooms Monday. While all judges available met as
usual over tea in the morning, sources said “there
was palpable tension” though “nothing about the
controversy was discussed” and there was little
more than a “general exchange of pleasantries”.
There was no effort from either the CJI or from the
four judges to initiate a discussion on the Friday
press conference.
The Indian Express has learnt that the CJI is not
considering the suggestion of convening a full court
of all judges of the Supreme Court, and has also not
notified any meeting of the collegium so far.
WPI inflation eases
to three month low
of 3.58% in
December
Wholesale price-based inflation eased to a three-
month low of 3.58 per cent in December 2017 as
food prices softened, prompting the industry to
seek measures in the budget to strengthen
agriculture supply chain.
Wholesale price index (WPI) based inflation was
3.93 per cent in November 2017 and 2.10 per cent in
December 2016. Inflation on food articles slowed to
4.72 per cent in December, from 6.06 per cent in
November 2017, the official data released today
showed. In fuel and power segment, inflation rose
to 9.16 per cent in December against 8.82 per cent
in the previous month.
EDITION 17
Air India to be
split into four
entities before
sale
India will break up its debt-
burdened flag carrier Air India
into four separate companies
and offer to sell at least 51 per
cent in each of them as part of a
disinvestment proposed by PM
Narendra Modi.
The core airline business
comprising Air India and Air
India Express — the low-cost
overseas arm — will be offered
as one company, and the process
will be completed by the end of
2018, junior aviation minister
Jayant Sinha said in an interview
on Monday. Its regional arm,
ground handling, and
engineering operations will also
be sold separately in the same
process.
A successful sale of Air India (AI)
— with $7.9 billion in debt, five
subsidiaries and a joint venture,
and a combined workforce of
27,000 — is crucial for Modi,
who wants to showcase his
credentials as a reformist. The
airline, which is surviving on a
taxpayer-funded bailout, has
strained government finances
for decades, and finance
minister Arun Jaitley said last
year that money spent on Air
India could have been used for
education.