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Eating out goes off customers’ menu as Related Most Read Most Shared

slowdown bites Beat the slowdown by investing smartly

Industry observers said the slump in sales exists across formats such as value and The dynamics of India's growth slowdown

standalone and premium dining formats and has continued since April or even earlier. No comic relief in times of slowdown

By Anumeha Chaturvedi, Ratna Bhushan, ET Bureau | Sep 21, 2019, 11.37 AM IST Save Xiaomi not concerned by economic slowdown

7 Honda Motor warns of prolonged slowdown


Comments

Agencies View: Is the current slowdown cyclical or structural?


NEW DELHI: The eating-out business is
feeling the heat of a slowdown as restaurant
chains and industry insiders are talking of
tough times with customers choosing to cut
FOOD-TECH
back on such spends. Industry observers
Milkbasket’s key to
said the slump in sales exists across formats cracking grocery
such as value and standalone and premium delivery
dining formats and has continued since April The grocery startup mimics the traditional
or even earlier. milkman’s low-cost delivery mode...

HOSPITALS
Discounting by online food delivery aggregators such as “There’s clearly a downturn and business is How hospitals are
Swiggy and Zomato has also affected the eating-out not looking good in most segments. Same- unlocking value
business. store sales growth is negligible or even
negative in some cases. When a general Top-line growth will be a challenge for
slowdown happens, eating out is discretionary and is the first to be hit. The bars and top- hospitals in a largely self-finance...

end restaurants are totally discretionary,” said Anurag Katriar, CEO of Degustibus TELECOM
Hospitality and the president of National Restaurant Association of India (NRAI), which How Vodafone Idea
represents over 5 lakh restaurants in the country. can be revived

Katriar said business has been static for most of the brands of Degustibus and September From a rejig in management structure to
strengthening network, here’s a to-...
isn’t looking up either. Degustibus runs brands such as Indigo Deli, Tote and Dakshin
Rasoi.

Top Trending Industry Terms


Westlife Development, which runs McDonald’s in the South and West, saw its consolidated
Nirmala Sitharaman Retail loans oyo
net profit decline over more than half in Q1FY20 to Rs 5.77 crore from Rs 11.6 crore
Indian Auto Market News India Banking news
compared with the same period last fiscal. Its same-store sales growth fell drastically to
6.7% against a high of 24%. Jubilant FoodWorks, which operates Domino's Pizza and
Dunkin' Donuts, posted a drop in its consolidated net profit at Rs 71.48 crore in the April-
June quarter. Not to be Missed
Corp tax cut to have 'minor' impact on
fiscal deficit
Analysts had said same-stores sales slowed down in the quick service restaurant (QSR)
segment because of lower discretionary spending, high competitive intensity and
discounting by online food delivery aggregators such as Swiggy and Zomato.
Chandrayaan-2 has achieved 98%
objectives: ISRO
Jubilant’s chief executive Pratik Pota had said in a post earnings call that there is a
pressure that everybody has been experiencing on dine-in. “There is overall dampening of
consumer sentiment, lower spending on discretionary categories, and growth of delivery
After 'Howdy Modi,' Trump & Modi
driven largely by aggregators,” he had said.
could sign trade deal

Rahul Khanna, director of Azure Hospitality, which has 40 pan-India outlets and runs
brands such as Mamagoto, Rollmall, Foxtrot, Speedy Chow and Sly Granny, said there’s a
Maruti to launch S-Presso mini SUV
blip in business and regulatory issues in cities like Bengaluru have made the problem more
on September 30
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9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times
on September 30
pronounced.

“The economic scenario has had an impact and there are other local issues. For instance,
Gavaskar, Suniel Shetty join Triton
Bengaluru has seen a big slowdown because of an irrational music ban imposed by the
Solar's board
authorities. On an average, sales are down by about 10%,” he said.

Pradeep Shetty, joint honorary secretary at Federation of Hotel and Restaurant


Associations of India (FHRAI), said average samestore sales were down by as much as Thomas Cook approaches UK govt for
bailout: Report
25% across formats such as bars, casual dining and cafés since February or March.

“There have been occasional spikes but the overall situation is dismal. Spending has gone
down,” he said. Niti Aayog to train babus on project
management

Manu Chandra, chef partner at Toast & Tonic, Fatty Bao and Monkey Bar whose brands
are present in seven cities, said customers are feeling the pinch.
'Gully Boy' is India's official entry for
Oscars 2020
“There is definitely a slowdown across the board. We have some luxury restaurants and
experiential dining spaces which are relatively immune to a general downturn trend as they
cater to customers who are generally resilient. But, that’s a small percentage. Our pub
formats have seen a dip,” said Chandra. “For some brands that are not QSRs in the 6 bad money habits that investors
should give up
industry, top line sales are down by nearly 20% compared with last year. That’s quite a
dip.”

Read more on Restaurant Restaurants Zomato Slowdown Swiggy


ITC claim curbs if you do not file GSTR
1 on time
Also Read
Beat the slowdown by investing smartly

The dynamics of India's growth slowdown Auto industry has to find its own
balance: SIAM
No comic relief in times of slowdown

Xiaomi not concerned by economic slowdown

Honda Motor warns of prolonged slowdown


Tax cut gives PM perfect pitch to win
US investments
Comments (7) Add Your Comments

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The best lesson for mutual fund investors Related Most Read Most Shared

from the current market Mutual fund investors see value as markets correct,
hike allocation
Many mutual fund advisors say when faced with adversities many investors forget about
Are mutual fund investors betting on SIP for wrong
their investment decisions of the past reasons?
ET Online | Sep 20, 2019, 12.21 PM IST
Mutual fund investors showing great appetite for
assuming risk: Dhirendra Kumar
0
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47% of new mutual fund investors in FY19 were
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Mutual fund advisors are inundated with calls
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from the usual reassurances, some
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These mutual fund advisors say when faced
with adversities many investors conveniently
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9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times
with adversities many investors conveniently
forget about their investment decisions of the past. And many investors, wilfully or
otherwise, are doing the same in this crisis situation, too, they say. That is why they ask
these investors to revisit their investment decision made a year or two years ago. Alternative to Index Funds
Savings Account

What do they hope to achieve from the exercise? Advisors say it will help these investors
to realise their behavioural patterns and investment mistakes they tend to make in life. The
self realisation would help them to avoid similar situations in life.

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For example, an investor was aghast to see his small cap scheme offering -22 per cent Funds Funds
returns. The advisor recalled the conversation he had with the clients about the perils of
investing in small caps. He clearly remembered telling this client that small cap schemes
are notoriously volatile. However, the investor was extremely bullish and wanted to invest a
sizeable chunk of his corpus in small caps. However, the advisor managed to convince him
to invest only a small part of his corpus in small cap schemes. High Performing Mid Top Rated Multi Cap
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The investor was surprised when he heard his advisor. He had no recollection of the
conversation until that time. The advisor slipped in the important lesson: most investors,
including the seasoned ones like you, tend to get adventurous when the market is on a Reach out to Top Generator Dealers near you
song. Never let the 'exuberance' or 'pessimism' influence you beyond a point, the advisor and get free quotes
added. GET QUOTE

That was about the bull-turned-mouse. How about a perpetual pessimist? Here is an
investor who swore that he would never invest in stock markets again. That was in 2008
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when the whole global economy was down in the dumps. His mutual fund advisor
somehow managed to convince him to stay on and luckily for him the Indian market turned SBI Mutual Funds Best Mutual Funds to invest in 2019
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around quickly. Since then the investor has made 'decent double-digit returns' over 10
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Clearly, revisiting the old episode might be instructive to this investor.
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To cut the story short, revisiting our investments in times of crisis would help us to think a FD Rates
bit more clearly. For example, what if the investor in the first episode was a newbie who
was overconfident a year ago? He would have seen clearly he was not supposed to invest
in the small cap mutual fund category. Or think of an investor who got into debt when the
equity was in the dumps and lost an opportunity to benefit from the revival of equity
market?

Join the gang: revisit your investments and share your lesson with ETMutualFunds.com
readers. You can share your lesson on our Facebook page.

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Read more on Mutual Fund Investors Mutual Fund News Small Cap Mutual Funds

Equity Investments Advisors Mutual Funds

Also Read
Should mutual fund investors consider investing in fund of funds?

Mutual fund investors see value as markets correct, hike allocation

Are mutual fund investors betting on SIP for wrong reasons?

Mutual fund investors showing great appetite for assuming risk: Dhirendra Kumar

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9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times

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Sensitive, super-sensitive data must remain Most Read Most Shared

in India: Prasad Larsen & Toubro appoints ex-Cognizant executive


Ajay Bhutoria as Chief Executive for ‘L&T-NxT’
Mincing no words, Minister for IT and Electronics Ravi Shankar Prasad said there must be
TCS-General Motors deal may spur a new wave
a fine balance between data availability, utility, innovation and data privacy.
Mu Sigma to settle US visa case out of court for
PTI | Sep 20, 2019, 04.21 PM IST
$2.5 mn
0 Right time to build IoT in India: Bharti Airtel
Comments

BCCL
New Delhi: The government on Friday Cognizant hits 2 lakh staff mark, is also largest
MNC employer
asserted that it will not allow the country's
data sovereignty to be compromised and More »

made it clear that sensitive and super-


sensitive data must reside in India.
Tech Top Trending Terms
Mincing no words, Minister for IT and Automation SAP OnePlus Indian IT firms

Electronics Ravi Shankar Prasad said there 5G iPhone Data analytics IT Enabled Services
Internet Software Technology News Cyber Crime
must be a fine balance between data
Cryptocurrency Hardware Technology News
availability, utility, innovation and data
privacy.

"...I would never like data sovereignty of India to be compromised for Indians. The super
sensitive data, the sensitive data must remain in India," Prasad said speaking at a
conference on 'emergence and impact of Artificial Intelligence and Internet of Things'
hosted by Jaipuria School of Business.

Citing an example of harnessing data for public good, the minister said data in the field of
healthcare could usher new breakthroughs and innovations, solutions and medicines.

The minister's comments come in the backdrop of burning debate on data, as also storage
restrictions being mulled for personal data. While some have dubbing data as the 'new oil'
propagating protection of Indian users' data on the Internet and social media platforms, a
senior Facebook executive last week had countered the viewpoint arguing that data is not
the new oil, and countries like India should, in fact, allow its free flow across borders
instead of attempting to hoard it as a finite commodity within national boundaries.

Facebook Vice President (Global Affairs and Communications) Nick Clegg said data
sharing is crucial for national security as India right now finds itself "locked out" of major
global data-sharing initiatives aimed to clamp down on serious crime and terrorism.

Meanwhile, Prasad said that while the country has made its mark globally in IT services,
Digital India is looking to transforming lives of Indians. He added that India has also set its
sights on manufacturing in a big way and poised to attract investments in areas like
medical electronics.

Read more on New Delhi Digital India Terrorism Facebook Ravi Shankar Prasad

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Right time to build IoT in India: Bharti Airtel Most Read Most Shared

Airtel is focusing on enabling connectivity, building applications and providing a platform for Larsen & Toubro appoints ex-Cognizant executive
Ajay Bhutoria as Chief Executive for ‘L&T-NxT’
developers to build the new use cases.
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9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times
p
By Danish Khan, ET Bureau | Sep 21, 2019, 06.47 AM IST TCS-General Motors deal may spur a new wave

0 Mu Sigma to settle US visa case out of court for


Comments $2.5 mn
Agencies
NEW DELHI: Bharti Airtel has said that India Cognizant hits 2 lakh staff mark, is also largest
MNC employer
is currently a very good place to be a builder
of the Internet of Things (IoT) ecosystem. To More »

unlock the opportunity, Airtel is adopting


applications and partner-based approach to
grow its IoT business in India, besides Tech Top Trending Terms
ensuring consistent investments towards Automation SAP OnePlus Indian IT firms
developing the narrowband IoT (NB-IoT) 5G iPhone Data analytics IT Enabled Services

ecosystem in the country. Internet Software Technology News Cyber Crime


Cryptocurrency Hardware Technology News

Airtel is now focused on bringing more partners on “…we will always go with what the GSMA
board to develop applications using the IoT platform. and 3 GPP bodies are talking about, and
NBIoT is one of those technologies that will
help. We definitely will be investing there, we are also looking into what the customers also
need in terms of specific use cases,” Sundi Raman, head (digital products & IoT), Airtel
Business, told ET.

Airtel is focusing on enabling connectivity, building applications and providing a platform for
developers to build the new use cases. “India is a very good place right now to be a builder
of IoT”.

The telco is focusing mainly on the automotive sector in India, besides making inroads in
the country’s healthcare sector through its applications cently partnered with MG Motors to
help launch internet-connected car and is currently working with Apollo Hospitals to
connect their remote healthcare centres and to manage workforce.

Airtel has already built an independent IoT vertical as part of its Airtel Business, which
clocked $1.7 billion in revenues for fiscal year 2018-19. Its rival Reliance Jio Infocomm is
preparing to tap into the IoT market at the pan-India level through its NB-IoT network.
Vodafone Idea Ltd (VIL) is also driving its enterprise business by launching commercial
NB-IoT services, having conducted pilot programmes in four cities for various use cases,
including smart energy metering.

NB-IoT is a new technology standard, designed to broaden rethe future of IoT connectivity,
providing significantly improved and deeper network coverage for communication between
machines while lowering power consumption by devices. India’s NB-IoT market is
expected to grow to Rs 5,000 crore in three years, as per industry estimates.

Airtel is now focused on bringing more partners on board to develop applications using the
IoT platform. “We want to partner with [application] providers, who can help us to fill the
gaps”.

Raman said IoT is a huge ecosystem play and a single vendor can’t deliver the solution.

“…you have devices, network provider, platform play and application space. On top of that,
you need to customise those applications for end customers”.

Read more on Technologies GSM Association Internet Of Things Bharti Airtel

Narrowband IoT Internet

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Huawei makes sizeable 5G progress, bags Related Most Read Most Shared

60 contracts: Ken Hu Huawei denies US allegations of tech theft

The company also feels that the Indian government should allow affordable next- How the Huawei issue affects India

generation airwaves to the Indian operators. Huawei planning to sell access to 5G tech: Report
By Muntazir Abbas, ET Bureau | Sep 20, 2019, 06.19 PM IST
Ericsson flags security risks as telcos seek clarity
on Huawei
0
Comments
Huawei seeks independent decision on its 5G
Reuters
SHANGHAI: The Chinese gear maker, offerings

Huawei Technologies has made significant Huawei P30 series first to get EMUI 10 beta update
headway in the fifth generation or 5G
technology worldwide including India despite
the United States controversial advisories, a Top Trending Industry Terms
top company executive has said.
Nirmala Sitharaman Retail loans oyo
Indian Auto Market News India Banking news
“In terms of 5G technology, Huawei has
made impressive progress including the
recent progress that we have made in India,”
Huawei's Deputy Chairman Ken Hu addresses a speech Ken Hu, deputy chairman and chief
at the annual Huawei Connect event in Shanghai. executive told ETTelecom, and added that
the firm has inked as many as 60
commercial deals, and by next year, the firm would be able to gauge 5G contribution to its
overall business.

“So far, we have signed over 60 commercial contracts. Honestly, I have become less
interested in the number of 5G contracts that Huawei has secured. Since many projects
are in the pipeline, numbers are not absolute,” Hu said.

The Chinese telecom giant has come under widespread scrutiny by many countries since
the US President Donald Trump has put it on the blacklist, following security-related
allegations, escalating it into a trade war with China.

Earlier, the Trump administration has also issued an advisory to India asking it to shun the
Chinese gear maker. The Narendra Modi government has so far not taken any decision
while Huawei has been asking for clarity with one of its senior executives saying India’s
ambitious 5G rollout might be delayed if India thinks otherwise.

Huawei that has the largest number of 5G patents, offers economically viable technology
and after-sales services as compared with rivals, to the telecom service providers which
are stressed under a cumulative debt of more than 7 lakh crore in India.

India’s market leader Vodafone Idea has already entered into an alliance with the Chinese
company to run the 5G network pilot initiative while it is under advanced discussions with
Sunil Mittal-driven Bharti Airtel for a similar partnership.

“The current phase is an accelerated phase of 5G commercial rollouts and to see how
much 5G contributes to the Huawei's overall share, we have to wait until next year for a
clearer picture when China has a first commercial deployment,” Hu added.

The company also feels that the Indian government should allow affordable next-
generation airwaves to the Indian operators.

“Government should allow spectrum resource at a cheaper price to Indian carriers and
hope that it will be allocated in an efficient manner so that industry will have contiguous
radio waves,” the top executive said.

Delhi-based telecom group Cellular Operators Association of India (COAI) has said that at
the current spectrum price recommended by the regulator, telcos would not like to begin
the much-awaited 5G services, except few trials.

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Last year, the Telecom Regulatory Authority of India (Trai) suggested Rs. 492 crore per
unit as a base price for frequency in the 3.3 GHz – 3.6 GHz band.

India, according to Hu, is a very important market for Huawei in the Asia Pacific region.
“In the telecommunications industry, India has made much progress, and as a young
country with a majority of young population, it has great prospects which means the
country has essentials for telecom services” he added.

The telecom major, which is foraying into computing segment with advanced technologies
such as cloud, Artificial Intelligence (AI), and Internet of Things (IoT), has earmarked $1.5
billion worth fund to encourage developers.

(The author is attending the Huawei Connect 2019 in Shanghai, at the invitation of the
company)

Read more on Huawei Narendra Modi China Donald Trump Bharti Airtel

Vodafone

Also Read
Huawei denies US allegations of tech theft

How the Huawei issue affects India

Huawei planning to sell access to 5G tech: Report

Ericsson flags security risks as telcos seek clarity on Huawei

Huawei seeks independent decision on its 5G offerings

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Chandrayaan-2 mission has achieved 98 per Related Most Read Most Shared

cent objectives: ISRO chief Chandrayaan-2 gets closer to the moon

Chairman K Sivan said the Chandraynaa-2 mission has achieved 98 per cent of its Lifespan of Chandrayaan-2 orbiter increases

objectives, even as scientists are working hard to establish contact with lander 'Vikram' Chandrayaan-2: Islands of calm in an emotional
mission control
PTI | Updated: Sep 21, 2019, 03.29 PM IST

Chandrayaan-2 aided by engineering marvels


0
Comments
Chandrayaan-2 Ready for moonwalk
BHUBANESWAR: Indian Space Research
ISRO to inject Chandrayaan 2 into lunar orbit
Organisation (ISRO) Chairman K Sivan on Tuesday
Saturday said the Chandrayaan-2 mission
has achieved 98 per cent of its objectives,
even as scientists are working hard to Top Trending News
establish contact with lander 'Vikram'.
EPFO corpus funds Kashmir News Bangalore News
Mumbai News Rajnath Singh Latest News
Sivan also said Chandrayaan-2 orbiter is News Headlines
doing well and performing scheduled science
experiments.
Chandrayaan-2 Orbiter doing very well, no
communication with lander: ISRO Chief
"Why we are saying Chandrayaan-2
achieved 98 per cent success is because of
two objectives -- one is science and the other technology demonstration. In case of
technology demonstration, the success percentage was almost full," he told reporters at
the airport here, before heading to IIT- Bhubaneswar to attend its 8th convocation
ceremony.

Sivan said ISRO is focusing on another moon mission by 2020.


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"Discussion is on about the future plan... nothing is finalised. Our priority is on an


unmanned mission by next year. First, we have to understand what exactly happened to
the lander," he said.

He said a national-level committee comprising academicians and ISRO experts are


analysing the cause of the communication loss with 'Vikram'.

"We have not been able to establish communication with the lander yet. As soon as we
receive any data, necessary steps will be taken," Sivan said

Noting that the orbiter was initially planned for a year, the ISRO chief said there is every
possibility that it will last for another seven-and-a-half years. "Orbiter continues to perform
scheduled science experiments to complete satisfaction. There are eight instruments in the
orbiter and each instrument is doing exactly what it is meant to do," he added.
In Video: Chandrayaan-2 Orbiter doing very well, no communication with lander: ISRO
Chief

Read more on Vikram K Sivan Bhubaneswar Apollo Lunar Module

Indian Space Research Organisation

Also Read
Chandrayaan-2 gets closer to the moon

Lifespan of Chandrayaan-2 orbiter increases

Chandrayaan-2: Islands of calm in an emotional mission control

Chandrayaan-2 aided by engineering marvels

Chandrayaan-2 Ready for moonwalk

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Diwali comes early! D-Street spins Rs 7 lakh Most Read Most Shared

cr wealth in a day TCS, Infy & HCL Tech buck the greatest bull run

Analysts said that the move should aid Nifty earnings per share (EPS). BHEL declares 100 per cent dividend for 2018-19

ETMarkets.com | Updated: Sep 20, 2019, 04.02 PM IST Earnings growth may rocket to 15-year high

0 The bulls are back! Buy on dips and pick quality


Comments stocks to ride the rally
Getty Images
NEW DELHI: The tax bonanza by the FM Nirmala FII short covering of index futures key to sustaining
rally
Sitharaman to FPIs and corporate sector gave Dalal
Street investors Rs 7 lakh crore lift on Friday. More »

Data showed BSE market capitalisation surged to 145.36 Discover POWERED BY

lakh crore following the announcements compared with Mutual Funds


Rs 138.54 lakh crore on Thursday, as the BSE Sensex
soared nearly 2,000 points, and the NSE barometer
The measures will help revive flagging
animal spirits, said analysts.
Nifty50 jumped 569 points, their highest intraday gains in
a decade.
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Funds
Analysts said that the measures should aid Nifty earnings per share (EPS).

"Banking, FMCG, consumer durables and auto companies will be major beneficiaries. The
manufacturing sector will become attractive with a 15 per cent Corporate Tax rate for new
manufacturing companies in India especially in the times when the world is in the phase of Alternative to Index Funds
Savings Account
trade wars," said Rajiv Singh, CEO, Karvy Stock Broking

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9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times

In order to stablise the flow of funds into the capital market, the FM said that enhanced
surcharge introduced in the Budget will not be applied on capital gains arising on sale of
equity share, if securities transaction tax is paid. Best Large Cap Best Balanced
Funds Funds

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Cap Funds Funds

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The enhanced surcharge will not be applied to capital gains arising on sale of any security,
including derivatives in the hands of foreign portfolio investors, the FM said.

Sitharaman said that the effective corporate tax rate will be lowered to 25.75 per cent from
30 per cent, which she said would be at par with Asian peers. The government also
scrapped the minimum alternative tax for domestic companies. The revenue foregone on
reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually.

In order to provide relief for listed companies, any company which has already made a
public announcement of buyback before July 2019, will not be charged tax.

Ajay Bodke, CEO for PMS at Prabhudas Lilladher said that it is a boost to revive flagging
animal spirits and position India as one of the most attractive business destinations.

"The measures should act as a force multiplier for the flagging economic engine. By
slashing corporate tax rate for existing domestic companies and an extremely attractive
rate of 15 per cent for new companies setting up manufacturing operations, the
government has rolled out a red carpet that would ensure hundreds of billions of dollars of
FDI & FII flows over the medium term. It is in a true sense an early arrival of festival of
lights (Diwali) and banishment of long period of darkness & gloom bothering the Indian
economy," he said.

The government has taken a bold and proactive step to bring much needed tax reforms ,
which will boost investment and also aid to private cycle capex, said said Sanjeev Hota,
Head of Research at Sharekhan.

"The lowering of corporate tax rate will also widen the tax net and will gradually bring more
revenues to government. Overall, the move will make Indian companies globally
competitive, a welcome step to arrest slowdown and lift up the market sentiments,” the
expert said.

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investors.

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Nirmala Sitharaman

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IndiGo told to keep 15% seats vacant on Related Most Read Most Shared

Delhi-Istanbul flights IndiGo launches Delhi-Istanbul flight; plans for wider


global expansion
Directorate General of Civil Aviation chief’s directive came after passengers on many of
Istanbul, Venice or Paris: Pop the question at these
IndiGo’s Delhi-Istanbul flights found out that their baggage hadn’t taken off from Delhi after romantic, iconic destinations
reaching their destination.
Offbeat & Insta-worthy: Bengalureans headed to
By Saurabh Sinha, TNN | Sep 21, 2019, 11.23 AM IST Bali, Istanbul for New Year getaways

0 Istanbul: Try a flexible layover luxury tour


Comments

BCCL Medusa's head, Bosphorus bridge, Topkapi palace:


(This story originally appeared in on Istanbul combines modern, medieval art
Sep 21, 2019)
NEW DELHI: The aviation regulator on
Friday told IndiGo Airlines to fly its planes Top Trending Industry Terms
with 15-22% seats unoccupied while Nirmala Sitharaman Retail loans oyo
operating on the Delhi-Istanbul route on Indian Auto Market News India Banking news
strong headwind days. The budget airline’s
186-seater Airbus A320 Neos should have
up to 157 passengers on board and the 222-
seater A321s no more than 173 flyers on
The airline has sent an individual letter of regret to each such days.
affected passenger along with a coupon of Rs 5,000,
which can be used in their future travels, an IndiGo
Directorate General of Civil Aviation chief
official said.
Arun Kumar’s directive came after
passengers on many of IndiGo’s Delhi-Istanbul flights in recent days had discovered after
reaching their destination that their baggage hadn’t taken off from Delhi.

In its defence, the airline had said that due to strong headwinds, the Delhi-Istanbul flying
time had been over seven hours in the past few weeks, which is close to the maximum
operating range of the single-aisle Airbus A320/321s used by it. To carry more fuel, the
baggage was left behind last Sunday and a few more days of all or most of the
passengers, it added. Strong headwinds for the west-bound flights will continue for some
months.

Chinmay Dabke, a passenger on the Sunday flight, had tweeted, “The airline did not load
the luggage of the entire flight. Not a single passenger got their luggage…My father has
his medication in his luggage.” Replying to him, Manoj Jaiswal, who travelled on an IndiGo
flight a day before, tweeted, “We haven’t received the bags yet... We are now stranded
with family (old and kids) in a different country with no basics, medicines. It’s a big mess.”

The airline has sent an individual letter of regret to each affected passenger along with a
coupon of Rs 5,000, which can be used in their future travels, an IndiGo official said. The
airline operates two daily flights between Delhi and Istanbul. Turkish Airlines is the only
other carrier to fly on the route but doesn’t face this trouble as it uses wide-body planes.

Headwinds and tailwinds are major factors for fuel burn and flying time. Flying to the west
takes longer than flying east on most days. For this reason, Air India’s Delhi-San Francisco
flight frequently takes the Pacific route to the US and flies back to Delhi over the Atlantic to
get tailwinds all the way and save fuel.

Read more on Indigo Airlines Delhi Flights Indira Gandhi International Airport Istanbul

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9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times

Also Read
IndiGo launches Delhi-Istanbul flight; plans for wider global expansion

Istanbul, Venice or Paris: Pop the question at these romantic, iconic destinations

Offbeat & Insta-worthy: Bengalureans headed to Bali, Istanbul for New Year getaways

Istanbul: Try a flexible layover luxury tour

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Street sees biggest rally in a decade TCS, Infy & HCL Tech buck the greatest bull run

Finance Minister Nirmala Sitharaman proposed to slash corpoprate tax for domestic BHEL declares 100 per cent dividend for 2018-19

companies. Earnings growth may rocket to 15-year high


ETMarkets.com | Updated: Sep 20, 2019, 02.45 PM IST
The bulls are back! Buy on dips and pick quality
stocks to ride the rally
0
Comments
FII short covering of index futures key to sustaining
Getty Images
Finance Minister Nirmala Sitharaman on Friday delivered rally

a major tax bonanza to domestic businesses and More »


manufacturing firms, lowering corporate tax rates to one
of the lowest levels in Southeast Asia and allowing new Discover POWERED BY

manufacturers to avail minimum corporate tax at 15 per Mutual Funds


cent.

Sitharaman said the revenue foregone on reduction in


“Any domestic company gets an option
to pay income tax at a rate of 22 per
corporate tax and other relief measures will be Rs 1.45
Top Tax Saver ELSS SIP starting Rs 500
cent subject to condition that they will lakh crore annually, which means a $20 billion booster to Funds
not avail any incentive,” said an economy that grew at the slowest pace in six year in
Sitharaman. June quarter.

The announcements came in the fourth round of a series of measures that the government
has announced over the past month, trying to pump-prime the economy, which has been Alternative to Index Funds
Savings Account
witnessing a major slowdown in growth that plunged to a six-year low of 5 per cent in June
quarter.

The FM said a new provision has been inserted into the Income-Tax Act to enable these
measures and the new tax structure will be effective from April 1, 2019. Best Large Cap Best Balanced
Funds Funds
Accordingly, a domestic company can opt for paying income-tax at 22 per cent subject to
the condition that it does not avail any other tax incentive or exemptions. The effective
corporate tax rate for them will be 25.17 per cent, including surcharges and cess against
the current base rate of 30 per cent.
High Performing Mid Top Rated Multi Cap
Cap Funds Funds
Any new domestic company incorporated on or after Oct 1, 2019 and making fresh
investment in manufacturing will have the option of paying an income-tax at 15 per cent.
The rate of Minimum Alternative Tax (MAT) has been reduced from 18.5 per cent to 15 per
cent.

KEY HIGHLIGHTS

Trending in Markets
FM proposes to slash corporate tax for domestic companies
Budget Sensex Stock Market
Lower corp tax only if no exemption availed
Stock Recommendations IPO Upcoming IPO
Effective tax rate will now be 25.17, including surcharge and cess
Gold Rate Top Gainers Rupee vs Dollar
Effective tax rate for new manufacturing companies at 17.01%
Share Market Silver Price Nifty 50 Nifty Bank
Infosys Share Price Crude Oil Price
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9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times
Infosys Share Price Crude Oil Price
Analysts termed it a mini-Budget.

"It's not just bigger than the Budget, this is bigger than last 20 Budgets," said Samir Arora
of Singapore-based Helois Capital.

“Domestic companies now have the option of paying income-tax at 22 per cent subject to
the condition they do not avail any other tax incentive," Sitharaman said. The FM said
companies opting for the 22 per cent income-tax slab won’t have to pay minimum
alternative tax.

Dalal Street turned euphoric and benchmark equity indices Sensex and Nifty recorded the
biggest intra-day gains in a decade at 4 per cent, with the former rising over 1,800 points
and Nifty 450 points.

“The announcement is a big positive for corporate India,” said AK Prabhakar, Head of
Research, IDBI Capital Market. He said Larsen & Toubro, Maruti Suzuki, Mahindra &
Mahindra, Kotak Mahindra Bank, ICICI Bank, HDFC Bank, HUL, Dabur, HDFC, Baja Auto,
Hero MotoCorp, Colgate Palmolive, UltraTech and BEL are few high tax-paying
companies, whose stocks may see huge short covering

Sitharaman said the objective is to provide relief to companies that continue to avail
exemptions and incentives, the Finance Minister said. The measures will be implemented
through an ordinance, she said.

The new corporate tax rate will be among the lowest in Southeast Asia. The measures are
aimed at boosting the government's 'Make in India' initiative.
https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/eating-out-goes-off-customers-menu-as-slowdown-bites/articlesho… 12/16
9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times
g g

“The government has taken a bold and proactive step to bring the much-needed tax
reforms, which will boost investment and also aid to private cycle capex. The lowering of
corporate tax rates will widen the tax net and gradually bring in more revenues to the
government. Overall, the move will make Indian companies globally competitive, a
welcome step to arrest slowdown and lift up the market sentiments,” said Sanjeev Hota,
Head of Research, Sharekhan.

The FM also said domestic companies would be allowed to spend the 2 per cent
mandatory CSR fund in government-sponsored incubators. This will help boost the startup
environment. The announcements came hours before the GST Council meeting, which is
expected to take up a proposal for review of tax levies on cars, consumer goods and
hotels and a few other items.

The FM also reiterated an earlier announcement that there will be no enhanced surcharge
on capital gain from equity for FPIs. In order to stabilise funds flow in capital market, the
FM said the enhanced surcharge introduced in Budget 2019 shall not apply on capital
gains arising on sale of equity shares in a company or a unit of an equity-oriented gund, or
a unit of business trust fund liable to STT in HUF, AOP, BOI or AJP. The enhanced
surcharge shall also not apply to capital gains arising on any security including derivatives
in the hands of FPIs.

She clarified that there will be no tax on buyback of shares in case of companies, which
have made public announcements of buyback before July 5, 2019.

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investors.

Read this article in :Hindi

Read more on Sensex Surcharge Nirmala Sitharaman Corporate Tax BSE Sensex

Nifty

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Corporate tax slashed for domestic Related Most Read Most Shared

companies and new domestic manufacturing Rupee rallies 40 paise on corporate tax cut

companies Historic: Narendra Modi on corporate tax cut

Industry, market cheer slashing of corporate tax rate


Sitharaman believes that the push will act as a catalyst and pump growth.
Corporate tax cut to have 'minor' impact on fiscal
ET Online | Updated: Sep 21, 2019, 05.19 PM IST
deficit: Niti Aayog
0
Comments Corporate tax cut positive but growth faces
headwinds: Moody's
Diwali came early for India Inc and the
Corporate tax cut: Investment en route as FM soups
bourses after the Centre slashed effective up engine
corporate tax to 25.17 per cent, inclusive of
all cess and surcharges, for domestic
companies. Making the announcement, Discover POWERED BY

Finance Minister Nirmala Sitharaman said Mutual Funds


the new tax rate will be applicable from the
current fiscal which began on April 1.

Top Tax Saver ELSS SIP starting Rs 500


Corporate tax cut for domestic and new domestic Funds
manufacturing companies: FM Sitharaman announces
The revenue foregone for this move will be
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9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times

Rs 1.45 lakh crore annually. The move is a


lift for Prime Minister Narendra Modi who was facing increasing pressure to relight once-
stellar economy after five consecutive quarters of slowing growth saw India this year lose
Alternative to Index Funds
its status as the fastest-expanding major economy to China. Savings Account

Sitharaman said the new rates would be "comparable with the lowest tax rates in South
Asian region and in South East Asia". The announcement sent shares soaring more than
five percent in Mumbai -- the biggest jump in 10 years -- while the rupee and firmed
against the dollar. Best Large Cap Best Balanced
Funds Funds
Nirmala Sitharaman, the star of Blockbustor Friday

00:00 03:27

Indian stock markets have been on course for the biggest quarterly exodus since at least
1999, with foreign funds having dumped a net $4.9 billion worth of stocks since June. High Performing Mid Top Rated Multi Cap
Cap Funds Funds
Sitharaman, however, sidestepped questions on the impact the concessions will have on
the fiscal deficit target, saying that the government was conscious of the reality and will
reconcile numbers.

Here's what Nirmala Sitharaman brought in on Friday: Mutual Fund Top Trending Terms
New provision inserted in the income tax act with effect from fiscal year 2019-20, that
SBI Mutual Funds Best Mutual Funds to invest in 2019
allows any domestic company to pay income tax at the rate of 22% subject to condition
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they will not avail any incentive or exemptions. Top Mutual Fund Schemes to Invest in 2018-19
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Listed companies that have announced buyback before July 5, 2019, tax on buyback of Best Mutual Funds to Invest What is Mutual Fund
shares will not be charged FD Rates

Higher surcharge will also not apply on capital gains on sale of security including
derivatives held by FPIs
Enhanced surcharge will not apply to capital gains arising on equity sale or equity-
oriented funds liable to STT stabilise flow of funds into capital markets
To provide relief to companies availing of concessions and benefits, a MAT relief by
reducing it from 18% to 15%
CSR 2% spending to include government, PSU incubators and public funded education
entities, IITs

New domestic manufacturing companies incorporated after October 1, can pay income tax
at a rate of 15 per cent without any incentives. Meaning, effective tax rate for new
manufacturing companies will be 17.01 per cent inclusive of all surcharge and cess.
Sitharaman further said companies can opt for lower tax rate after expiry of tax holidays
and concessions that they are availing now.

The government has also decided to not levy enhanced surcharge introduced in Budget on
capital gain arising from sale of equity shares in a company liable for securities transaction
tax (STT).

“It’s a big bazooka and a very positive step”

-Vaibhav Sanghavi, co-CEO, Avendus Capital

Also, the super-rich tax will not to apply on capital gains arising from sale of any security
including derivatives in hands of foreign portfolio investors (FPIs). “The government has
taken a bold and proactive step to bring the much-needed tax reforms, which will boost
investment and also aid to private cycle capex. The lowering of corporate tax rates will
widen the tax net and gradually bring in more revenues to the government. Overall, the
move will make Indian companies globally competitive, a welcome step to arrest slowdown
and lift up the market sentiments,” said Sanjeev Hota, Head of Research, Sharekhan.

https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/eating-out-goes-off-customers-menu-as-slowdown-bites/articlesho… 14/16
9/21/2019 Eating out goes off customers’ menu as slowdown bites - The Economic Times
In another relief, the minister said listed companies which have announced buyback of
shares prior to July 5, will not be charged with super rich tax. About a dozen companies,
including technology major Infosys, which have active buyback programmes would benefit
from the decision to not levy 20 per cent buyback tax imposed in this year's Budget. The
Union Budget had made it mandatory for listed companies to pay an additional tax at 20
per cent on share buybacks. The move, aimed at discouraging the practice of avoiding the
dividend distribution tax, came into effect on July 5, 2019.

Also, firms have now also been permitted to use their 2 per cent CSR spend on incubation,
IITs, NITs, and national laboratories. Sitharaman expressed confidence that the tax
concessions will bring investments in Make in India, boost employment and economic
activity, leading to more revenue.

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In Video: Corporate tax cut for domestic and new domestic manufacturing companies: FM
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Also Read
Rupee rallies 40 paise on corporate tax cut

Historic: Narendra Modi on corporate tax cut

Industry, market cheer slashing of corporate tax rate

Corporate tax cut to have 'minor' impact on fiscal deficit: Niti Aayog

Corporate tax cut positive but growth faces headwinds: Moody's

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