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6th October 2021
Good Morning! 

Bitcoin prices were back above the $50,000 mark overnight in the US. This marks a 66% increase since the recent low of $30k in July this year!

Bank of America recently put out a report where they said the crypto space is now simply too large to ignore.
Bitcoin's market cap btw is above $900 billion, and the total crypto space is worth around $2 trillion!
  MARKETS
 

SENSEX

59,744.88

+ 0.75%

NIFTY

17,822.30

+ 0.74%

US$

74.45

+ 0.19%

GOLD

46,697

- 0.41%

10-YR

6.26%

+ 1.1 bps

OIL

5,856

+ 0.53%

*As of market close

  • Markets: Our stock market was up again yesterday even after a sharp selloff in the US overnight. Oil & gas and financial stocks did the best while real estate and pharma stocks underperformed.

Economy

In A Good Mood
Drake dancing

Credit rating agency Moody's has had a change of mood on its view on the Indian economy. Yesterday they upgraded their credit rating outlook for India from "Negative" to "Stable"

What they're seeing

The rating agency says they're seeing an improvement in the financial sector and faster-than-expected economic recovery across sectors. And because of this, they feel downside risks to the economy are receding.

A major factor in this is that banks have not been hit by Covid as badly as earlier anticipated. After years of dealing with NPA problems, the capital situation of major domestic banks in India seems comfortable now to Moody's analysts.

They also say that the economy is on its way to recovering from the Covid devastation, and that bodes well for the government's fiscal deficit problem going ahead. (Fiscal deficit is the shortfall in government revenue vs its expenditure)

In terms of growth, Moody's is of the view that our economy will grow at around 6% in the 'medium term', with 7.9% growth this financial year. India's sovereign credit rating remains the same at Baa3

Startup

Meaty Valuation
Unicorn


We just had another startup join the club. You know the one.. the unicorn club.

Licious just raised  $52 million and is now a unicorn.

For all you hardcore non-vegetarian folks out there Licious is your dream startup.

They deliver meat and seafood to your doorstep in 14 cities. Licious has actually tried to be quite innovative in terms of building a whole supply chain from scratch across India so they can procure quality meat/seafood. They even have multiple checks the meat goes through and then they deliver it fresh within hours.

The company didn't reveal their exact numbers but they did talk about how they've grown by 500% over the past year. As someone who did use their services during peak Covid, we can expect that.
They say they have 2 million unique customers.

While they are the 29th startup to join the club this year, Licious is India's first Direct-to-Consumer (D2C) startup to become a unicorn. So it isn't just ed-tech and B2B marketplaces becoming unicorns this year.

Natural Resources

Digging For G̶o̶l̶d̶ Copper and Coal
Miner working in mine


Hindustan Copper Privatisation

Anil Agarwal's Vedanta is apparently interested in buying the government's remaining stake in Hindustan Copper Limited.

The founder of the global mining giant said they're already doing due diligence on the company, and will be ready to bid for it as soon as the government announces the privatisation of Hindustan Copper.

At the current stock price of Rs 92, Hind Copper has a market cap of ~Rs 11,500 crores and the government owns ~73% of the company.

Agarwal said that Vedanta plans to invest $20 billion in India over the next 4 years or so, and 75% of this would be on improving natural resource extraction in the country so that we don't remain dependent on imports.


Coal Shortage

Coal stocks at India's power plants are running at record low levels and Power Minister RK Singh has said the situation could be 'touch and go'. Even though they're expecting power demand to reduce in the coming weeks, many plants have just 3-4 days of coal with them and that is not a good situation.

To help deal with this, the gov yesterday announced that they've changed some rules that will now allow 50% sale of coal from captive mines.

Captive mines are those which have been allotted to a particular company and produce coal only for use by that company. Many private power generation companies have captive mines. They might now be able to make some extra cash by selling coal to power plants that need it.

The Mines and Mineral Act had already been amended earlier this year for such a move to be facilitated.

On a Lighter Note

Campus Ambassador Program


If you are a college student do take a look at our campus ambassador program. 
For more deets follow this link.

If you have more time ...

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