Will Binance crackdown offer a fillip to Indian crypto exchanges? Why are Indian hills facing a snowless winter? Will rally in PSU stocks run out of steam? What is the Bitcoin Spot ETF? Answers here
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Hello and welcome to the business standard Morning Show I’m Vu Sandhu it’s the 18th of January 2024 and here are the questions we will be answering today will the binance Crackdown offer a philli to Indian crypto exchanges why are Indian Hills facing a snowless winter will the rally in PSU stocks run
Out of steam and what is the Bitcoin spot ETF India blocked access to nine foreign crypto exchanges on the 12th of January the government believes that these Offshore platforms were not complying with the country’s anti-money laundering law and that investors were also using them to circumvent tedious costs some of them like bance were quite popular among domestic investors now crypto investors
Are reportedly flocking to domestic exchanges there is a surge in registration so will this Crackdown on offshore exchanges help domestic crypto platforms casturi Akil finds Out a th in the prolonged crypto winter is on the horizon domestic cryptocurrency platforms are seeing a notable surge in Daily transactions and user registrations in deposits following the government’s recent Crackdown on offshore plat forms in late December the cryptocurrency market cooled off in 2022 when the Indian government imposed tax
On digital assets the government introduced a 30% tax on crypto gains and a 1% tax deducted at source on crypto transactions the Ministry of Finance had issued show cause notices to nine foreign cryptocurrency exchanges for non-compliance with the anti-money laundering legislation these included big ticket Virtual digital ass set
Platforms like binance and qoin the result volumes are growing again this sudden bullishness in the domestic crypto Market allowed platforms like vazer X and coin dcx to see a 2,000% increase in deposits over 2 weeks back in 2022 the new taxation regime reportedly drove a large number of Indian traders to Offshore
Exchanges a report by Think Tank sea center revealed domestic exchanges lost trading volumes worth around $3.8 billion to Offshore bosses after the government introduced tax on Virtual Assets in budget 2022 but those crypto investors are now flocking back to domestic exchanges VX and mudre estimated that roughly 70% of
Their fresh inflow came from binance which is one of the world’s largest crypto exchanges Co dcx say fresh inflow from binance was estimated at around 40% industry insiders say the Crackdown on offshore crypto platforms has effectively leveled the playing field for domestic crypto exchanges I think uh
This is a step in the right direction what is going to happen is that uh foreign exchanges were making use of regulatory and Taxation Arbitrage uh which which means that Indian exchangers were who are following the raw of the land were being Dy punished for being uh you know legal for
Doing all everything that is legal so this is the step in the first Direction in the right direction what they are saying is that you will have to actually follow Indian tax rules if you’re servicing Indians no matter where you are operating out of uh so this is the
First step the Second Step would be actually to make ensure that ex those exchanges also actually pay the TDS that the government has actually mandated for all crypto transactions business standard had earlier reported that domestic crypto exchanges are exploring strategies to attract investors who have migrated to Offshore crypto platforms but the
Endeavor seems needless now Apple has removed apps of the nine foreign crypto exchanges from its app store in India after they were flagged illegal in the country several offshore crypto apps were also removed from the Google Play Store on 14th of January this month but is this bullishness in the Indian crypto
Market only your brief relief or more long-term gain awaits in short term yes there is a very good inflow but I seriously feel that we we as in exchanges though we should be happy about this that is happening we should still be working towards how to get users through our products and
Service uh not by this way we don’t want to have a scenario where the users are coming to the platform uh because they’re forcefully coming back right um I mean so I I’m not going to say I’m not really happy but yeah we are happy that the users acquisition is
Growing the volumes are growing but uh we also understand the fact that this is not something that is good for the long-term growth of any platform the RBI has long maintained a cautious stance on cryptos later taxation of the asset class pushed Indian crypto exchanges to diversify their offerings to increase
User participation coin dcx introduced a D5 wallet called octo a D5 wallet is a decentralized non-custodial virtual wallet that stores one’s crypto assets and coin switch is in talks with the regulator to launch a wealth Tech platform offering ass set classes like fixed deposits stocks and mutual funds
So is diversification within and outside the crypto ecosystem essential for long-term growth wcam barage of crypto platform kotus believes expanding beyond the crypto ecosystem may not ensure sustained growth of the platforms and customers there is still a lot of exploration that has to be done in the
Crypto ecosystem and that has to be offered to the customer there’s so much of opportunities left here right now leaving this and jumping into another ecosystem which is even complex Equity is not an easy ecosystem it has got a lot of regulatory intervention it has got a lot of competition that is there
Now handling putting your legs in two ecosystem which has got a lot of regulatory and competition it is just uh you know a mixture trying to kill yourself in the longer run Indian crypto players have reiterated their expectations of slashing tax rates on crypto Assets in the upcoming Union
Budget Raja gopal Menan of vazir X suggests that such a measure would help sustain the current optic in crypto users on Indian platforms for now it appears that the Crackdown on the likes of binance has provided a short-term but much needed relief to domestic Players Clearly there are signs of a Thor in the crypto winter which started with the collapse of the famous foreign exchange FTX but for many winter means a season of earnings the longer it is the better but even as North India is reeling under a prolonged spell of winter its famous
Skiing resorts are without snow locals in utarak Khan’s oi and kashmir’s gulmar whose livelihood depends on tourists are looking towards the sky for some Divine help as tourists are cancelling their bookings but why are these Hills having a snowless winter aush Mishra looks for the Answers this is the time of the year when the higher foots of Himalayas are loaded with snow this white sheet of ice not just feeds Rivers but also thousands of of locals in Hill states of utarak Himachal Pradesh and Kashmir several small towns of these states are now
Pinned on the global tourism map thanks to their classic postard views and some of them have also turned into skiing destinations like gulmar in Kashmir solang Valley in Himachal Pradesh and oi in utarak but a key ingredient which turns these Hill stations white and picturesque during winter is missing
This time and so are the tourists most Hills in gulmar solang Valley and oi were without snow till the mid of January experts believe this is happening due to the lack of robust Western disturbances but what are Western disturbances the main source of wi rain and snow in North Indian Hills
Is extr tropical storms which Brew Over the Mediterranean region these disturbances are known as Western disturbances it is a non-monsoon precipitation pattern which travels Westward to Northern Bangladesh and Nepal so when Hills got scanty rains and snow experts blamed it on the lack of substantial IAL Western disturbances the meteorological Department recently said
That Himachal Pradesh is undergoing the driest January in the last two decades all due to this weak Western disturbance and experts blame it on global warming uh for Indian conditions for Hill stations Western disturbances they play P role in bringing a good amount of snowfall and rainfall and disturbances
Or that shift in the western disturbances that are responsible for bringing good amount of snowfall and rainfall in the winter period in Kashmir and in Himachal Pradesh are the major reasons why our Hill station they are snowless this time at this particular time period so and another factor is
Alino again that is a Global Environmental disturbance caused due to the uneven heating of the water in the Pacific Ocean which is resulting into dry spill or lack of snowfall and rainfall in particular regions uh in India visuals of snowless mountains which were shared widely on social media
Platforms and on TV news led to a sharp dip in tourist footfalls gulug reported a massive 70% drop in visitors the hospitality and adventure sports sectors are severely affected with canceled hotel bookings and disrupted winter sports activities the upcoming Kalo India Winter Games in gulmar are also
Staring at a dry landscape unlike the snowy backdrop in previous editions the tourism sector in Jammu and Kashmir generates approximately 8,000 CR rupees annual constituting nearly 7% of the state’s GDP it employs around 70,000 people directly and indirectly in himat Pradesh the tourism industry generates 11,000 CR rupees accounting for 7.3% of
The state’s GDP so if we continue to experience snowless Winters how will this impact tourism in the Hills especially during winter months people expected good amount of snowfall they expected you know cool temperatures something what we call as a really a cool winter period or proper winter
Period there but it just didn’t happen and uh so for some people who wanted to you know go there let’s say in mid January or yesterday so they would have expected what we call a really cold period there in jamu and Kashmir for example or in Kashmir Valley but temperatures there were significantly
Above normal by something like 5 degrees or 10 degrees above normal so it’s quite disappointing thing for tourist number one and then that also affects local people because you know tourism is one of the important source of livelihood for local people so if tourists stop coming to Jammu and Kashmir Himachal
Pradesh and utarak let’s say in the remaining part of January or February and that is also going to have significant economic impacts based on what the seasons are people go there for spring people go for summer people go for winter people go for snow now it’s like if there are certain
People who like the snow and if there is no snow they won’t travel but that does not mean that the tourism impact will be year round in this region like gulmar also has um summer tourism so which is going to continue gulmar also has spring tourism which is going to continue as I
Said I mean it’s and and snowfall in India is primarily in the January February period and that’s the time there will be an impact now as I said there is no data which is available to um or rather I don’t have access to the
Data to say that what is going to be the impact but uh we we can see the numbers are dropping and definitely Jan February uh numbers will drop but that does not mean that we you know that the overall tourism for the year is going to drop clearly weather has played spoil Sport
With tourism in the hills of North India but experts hope that it may be a once in a while occurrence which we may not see in the next winter however tackling global warming is crucial as it will have wider ramifications From hills let us move on to financial markets the government’s Mak in India push and indigenization in the defense space opened the floodgates for auto flows for most psus in 2023 nearly 30% of the stocks doubled investors wealth last year while 27% stocks hit record highs the rally has extended thus far in
2024 with a Nifty psse index touching an all-time high on January 16th the rally has taken valuation multiples to multi-e highs so will the pack be able to defend its gains or is a sharp correction around the corner Nikita Vish finds out The Benchmark BC sensex and nifty50 dropped over 2% each on January 17 as a route in global markets coupled with bare hammering of HDFC Bank stock left investers looking for cover yet the pocket that managed to outperform the Frontline indices were shares of public sector undertakings where the index
Ended less than 1% lower shares of public sector Enterprises sold like hot cakes on the borses in 2023 such was the furor that one out of every three PSU stocks doubled investors wealth last year among the lot shares of Rec PA Finance Corporation and bhe returned up to
24% on the bses in 2023 as against a 20% rally in the nifty50 index the Nifty PSC index meanwhile Advanced 80% and the rally has well extended Ed into 2024 the Nifty psse index hit a lifetime high of 8,264 on January 16 as optimism around
The return of the ruling btia J party at Center later this year gained strength this analysts said boods well for the government driven capex cycle in the sector if you look at the order books of players in the railways ship building or defense space uh it has it is sitting at
An all-time high order book and it makes sense why the share price Al performing really well now when it comes to the exuberance side the market is currently expecting that the existing the current government would come into power once again and announce the same sort of aggressive cafex that we’ have
Seen in the last 7 to 8 years according to data by controller and auditor general of India Center spent 58.5% of its 10 trillion rupees kex Target for FY 24 between a April and November going ahead analysts at antique broking expect a low teen government Le capex push to continue over the medium
Term it remains overweight on defense equipment manufacturers Railways and consumables and sees strong order inflow of 21% and order book flow of 177% cagr over fi23 26 as against 4 to 5% cagr over fy3 to fi21 this it said may result in fi 2326 abta cagr of close to 26% as against
Minus 3% cagr over fy13 fy21 so is there more steam left in the pack lot of these PSU stocks are trading at their highest points in the last seen in the last five or 10 years so we believe that a lot of these PSU stocks are currently trading
At Rich valuation multiples uh obviously the rally is because lot of these stocks are uh getting uh or are having good order books but uh this leaves very limited room of margin the margin of safety thus while valuations make PSU stocks susceptible to profit booking in near term analysts say investors remain
Watchful of kex Outlook and potic iCal developments in 2024 before investing in the pack from a medium-term perspective on January 18 Global Trends and Q3 results back home will guide the markets he’s making plans for an early retirement business standard after stocks let us look at what is happening in the world of
Cryptocurrencies the US Securities and Exchange Commission last week approved applications for exchange traded funds or ETF that are primarily based on bitcoin supporters hope that it will attract new investors to the token and boost its price in the long term now what is the Bitcoin spot ETF find out in a decoded segment
Bitcoin excitement has hit Wall Street its value touched $47,000 as the US Securities regulator approved a listing and trading of a number of spot Bitcoin ETFs it’s the first time Bitcoin crossed the $47,000 mark since April 2022 a spot Bitcoin exchange traded fund is a financial product that allows investors exposure
To this cryptocurrency through the traditional stock market unlike futures-based Bitcoin ET ETFs which derive the value from Futures contracts spot Bitcoin ETFs hold actual Bitcoins a spot Bitcoin ETF operates by purchasing and holding actual Bitcoin on behalf of the investors here an investor essentially buys shares of a fund that
Owns a corresponding amount of Bitcoin this enables investors to participate in the potential gains or losses of the cryptocurrency market without having to directly Buy store or manage digital currency themselves the ETF structure simplifies the process for investors who may find dealing with cryptocurrency exchanges and wallets complex or risky
It provides a regulated and familiar investment vehicle through stock exchanges investors can buy and sell shares of the ETF on the stock market just like they would with any other traditional stock spot Bitcoin ETFs are subject to regulatory approvals and are designed to track the spot price of
Bitcoin spot price refers to the current value of Bitcoin at any given moment without considering future contracts or derivatives this direct link to the actual cryptocurrencies value distinguishes spot Bitcoin ETFs from other types of ETFs while spot Bitcoin ETFs offer a straightforward way for traditional investors to access the
Cryptocurrency markets they also come with risks price of the digital asset can be highly volatile and the value of the ETF shares will fluctuate accordingly addition Al regulatory approval and Market acceptance are crucial for the success of spot Bitcoin ETFs as they are subjected to the regulations of the jurisdictions in
Which they operate to invest in Bitcoin ETFs traded in US exchanges from India one has to open a dmat account with foreign Brokers or brokers who deal in US Stocks it’s similar to trading in shares in the US Stock Market the US Securities Regulators approval of ETFs
To track Bitcoin is seen as a landmark move that will push cryptocurrencies into the mainstream crypto enthusiasts hope the 11 new funds backed by asset managers such as BlackRock and Fidelity Investments will draw more investors to Bitcoin I will fly I am the I’m backed by the nation’s trusted Bank SBI the bank of to every Indian but investors are still cautious as the ETF pulled in under $1 billion in the first two days of trading well that’s all for today for more news and Analysis please
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