Weekly Moneylife Indices & Sector Trends
INDIAN MARKET TRENDS
The Sensex and the NIFTY declined 4% each for the period 3 May 2019 to 9 May 2019. ML Mid-cap Index, ML Micro-cap Index, ML Large-cap Index and ML Small-cap Index fell 3% each. ML Mega-cap Index dipped 2%.
 
 
FUND FLOWS
Foreigners: Foreign institutional investors were net sellers of equities for the week (Rs2,950.49 crore). They sold shares...
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  • CARE Ratings expect the restaurant and food service industry to register a growth of about 10.4% CAGR for the next five years
    The Indian Restaurants and Food Services Industry has continued to expand at a healthy pace, aided by y-o-y (year-on-year) growth in the incomes and largely unaffected by the prevalent economic scenario that has slowed growth in sectors like manufacturing and infrastructure. The market size of the Indian restaurants and food services industry stands at Rs3.7 trillion as of 2018 registering a y-o-y growth of about 10% and a CAGR (compound annual growth rate) growth of 8.4% between 2013 and 2018.
     
    Going forward, CARE Ratings expects the restaurant and food service industry to register a growth of about 10.4% CAGR for the next 5 years between 2018 and 2022 to reach Rs5.5 trillion by 2022. The growth will be supported by long term healthy demand outlook backed by higher disposable income, favourable demographics and rising aspirations of the burgeoning middle class, increasing internet penetration, increasing number of women joining the workforce, increasing focus on health and wellness, technological advancements and growing urbanisation.
     
    With the surge in investments in the online food ordering business, the industry is expected to witness substantial growth and operations of large segment of the unorganized market are expected to get streamlined into organized market. Also, in the years to come, premium dining and QSRs (Quick service restaurants) are expected to expand their presence in multiple non-metro towns across country.
     
    The  level  in  the  91  reservoirs  with  FRL  (full  reservoir  level)  of    162  bn cubic metres stood at 122.5 bn cm which is 75.6% of full capacity. This is  higher  than  the  level  of  69.2%  last  year  at  the  end  of  monsoon season. This level of 75.6% is also satisfactory when compared with the 10-years average of 72%.  This is a positive for both farming as well as households at the aggregate level, though the regions with deficit monsoon would continue to be under pressure.
     
    Normally, higher production should result in lower increase in prices based on laws in Economics. However, this may not be so  this  time  as  there  has  been  an  aggressive  increase  in  the MSPs of  various  crops. 
     
    Therefore,  the  inflationary  pressures  cannot  be  ruled  out  on  account of  both  the  higher  MSPs  as well as specific crop shortfalls.
     
    As per the first advance estimates of the ministry of agriculture, a decline of about 6.9% in the cotton crop has been estimated for cotton season 2018-19. If production remains lower than the target estimate by ICAC and the ministry of agriculture, we  expect the prices  to marginally pick  up  from  the  current levels  and  remain  firm with the  new  cotton arrivals  in  the  market  on  back  of  strong  exports  and  increased  MSP  by  the  government. The government increased cotton MSP of medium staple fibre by 28.1% to Rs5,150 per quintal and long staple fibre by 26.1% to Rs5,450 per quintal for cotton season 2018-19.
     
    An estimated increase in soyabean oil production during 2018-19 is expected to keep the imports of soyabean oil lower on a y-o-y basis and  they  are likely to decline by 2.6%  y-o-y  to  2.9  million  tonnes  during  the  year.
     
    While the  production  of  soyabean  oil  is  expected  to see growth  in  2018-19,  the  output  of  groundnut oil  (kharif  crop)  is likely to witness a fall. Its production is estimated to decline by 16% y-o-y to 1.46 million tonnes during oil year 2018-19 due to an anticipated 16.1% fall in groundnut oilseed output to 6.3 million tonnes during the year.   
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    COMMENTS

    Harigovindan KS

    4 months ago

    It is a mix of restaurant growth projection & then moves to monsoon, reservoirs & msp.. Can you please complete the care report article

    Retail Investors Begin To Benefit from Kotak Committee Measures
    Starting 2019, India Inc will see implementation of various recommendations put forward by the Kotak Committee in 2017. The Kotak Committee, constituted on 2 June 2017, was the third committee to examine issues of corporate governance commissioned under the Securities and Exchange Board of India Act (SEBI Act). It followed the Kumar Mangalam Birla committee in 1999 and NR Narayana Murthy...
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