SEPTEMBER 2021 ISSUE-05

AspireBuzz:
The Newsletter

AN ODE TO OUR INSIGHTS

TEACHERS! All about National
Monetisation Pipeline

' The influence of teachers Stock Market Rallies

extends beyond the classroom,
well into the future.' - F Sionil India's Official Digital
Jose currency on its way

Nazara Tech acquires Open

The spark, the inspiration, the Play
guide, the candle to all our lives.
We extend our heartfelt gratitude GDP leaps owing to low
to all the teachers out there. base effect

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 SEPTEMBER 2021 ISSUE-05

NMP: UNLOCKING LATENT

POTENTIAL
A new scheme to fund infrastructure through Asset Monetisation
Union finance minister Nirmala Sitaraman
launched the National Monetization Pipeline
(NMP), through which the government aims
to raise $81 billion by leasing out state-
owned infrastructure assets over the next
four years.

According to the plan laid out, the

government is aiming to raise Rs. 88,000
crore through asset monetisation in the
current fiscal, Rs. 1.6 lakh crore in 2022-23,
Rs.1.8 lakh crore in 2023-24, and Rs. 1.6 lakh
crore in 2024-25. The proceeds will be used
to finance the Rs. 110 lakh crore national
infrastructure pipeline.

Asset Monetisation is the process of
conversion of assets in this case contracts
to build highways, bridges, roads, etc. into
economic value. "Asset Monetisation is
about utilising the existing asset base and
using the proceeds for new infrastructure
creation. The objective is to enhance CAPEX
spending, resulting in a multiplier impact on
growth and employment and reviving credit
flow", said Amitabh Kant, Niti Aayog chief
executive.
The assets to be monetized are spread
across 20 asset classes and 12 line
ministries.
Different models will be followed for
monetisation depending on the nature of the
assets like operate, maintain and then
transfer, or redevelop, operate, maintain and
then transfer.
The top five sectors by value under the
government's asset monetisation program are
as follows:
Roads (27%), railways (25%), power (15%), oil
and gas pipelines (8%), and telecom (6%).
The government plans to create a virtuous
cycle by utilising the resources raised through
monetisation of existing assets to create new
greenfield infrastructure assets and further
monetizing these newly created assets.
It would be important for the government to get
the first few projects in each sector right to set
the ball rolling in the right direction.
Therefore, smooth implementation of the first
Rs. 10,000 crores will determine the fate of the
Rs. 6 trillion monetization plan.

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 SEPTEMBER 2021 ISSUE-05
IS STOCK MARKET IN BUBBLE?
A stock market bubble refers to the
exponential increase in the price of stocks or
assets over a while, far exceeding their
intrinsic value. In the end, prices hit a wall and
then fell very quickly when the bubble
"bursts". In addition to stocks, bubbles can
occur in various assets, from real estate and
collectibles to commodities and
cryptocurrencies.
The stock market bubble was fueled by
primitive speculation. When the price of an
asset rises well beyond the asset's intrinsic
value, a bubble begins to form. This means
that people are willing to pay more and more
for securities or other assets, exceeding
expectations based on factors such as
demand, earnings, income, or growth
potential.
In India, a third wave of COVID 19 is being
expected. The market is expected to be
bearish at the moment, especially considering
the 7.3% contraction of GDP in 2021.
However, Sensex is at an all-time high and will
almost touch the 57,000 mark. In the absence
of positive economic indicators, these signs
indicate a bubble in the stock market.
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In fact, this is an economic phenomenon that
causes share prices to rise unprecedentedly,
above the value of certain stock valuation
systems, which is generally caused by the
financial behavior of the herd. Trouble?
We know that the stock market and the GDP of a
country are parameters of the system of
economic activity and the final growth of a
country. Therefore, while our GDP is declining,
sometimes even down to the negative percentile,
we must assess the difference that caused the
opposite reaction in the stock market. The
response is mainly due to two general reasons.
First of all, the stock market is not the entire
national economy, it is just a part of the
economy, including corporate profits.
Second, the nature of the economy and the stock
market is different, and the stock market is
forward-looking, an estimate of the future;
According to existing collected data, economic
indicators like GDP look back and tell us what
happened in the previous quarter or the previous
year Condition.
Some investors believe that once the vaccine is
readily available or the fear of a further lockdown
subsides, corporate profits will rebound, thus
increasing investment for better returns.
Although stock market bubbles are often
affected by market crashes, it should be noted
that people cannot accurately classify any
behavior as an economic bubble until the market
experiences a "pop" and the inevitable drop in
prices. prices. As the economy slowly embarks
on the road to recovery, the stock market bubble
may be the biggest risk facing the Indian
financial industry soon, so preventive policies
that can help alleviate this situation need to be
adopted. Anticipation and waiting allow the
market to finally show us their results.
 SEPTEMBER 2021
CORPO-PEDIA
Debt service coverage ratio- DSCR
is the ratio of cash your small business
has available for paying or servicing its
debt. Debt payments include making
principal and interest payments on the
loan you are requesting. Generally
speaking, if your DSCR is above 1, your
business has enough income to meet its
debt requirements.
FICO Score- A FICO score is a type of
credit score used by potential lenders
for evaluating the wisdom of entering a
contract with you and your business.
FICO scores comprise a substantial part
of the credit report that lenders use to
assess credit risk. It was created by the
Fair Isaac Corporation, hence the name
FICO.
Lien-This business finance term and
definition is a creditor’s legal claim to
the collateral pledged as security for a
loan is called a lien.
Revolving Line of Credit -This
business finance term and definition is
a funding option is similar to a standard
line of credit. However, the agreement
is to lend a specific amount of money,
and once that sum is repaid, it can be
borrowed again.
Editorial Team: Anshul Gupta, Ayanna Gupta, Dev Garg, Harsh Sharma,
Kshitij Gupta, Mohnish Saini, Samaksh Nagpal
ISSUE-05
DIGITAL INCEPTION
After months of rumors and speculations, an
official statement has been made by Central
Bank’s Governor, Mr. Shantikanta Das,
announcing that the bank may launch a pilot of
its digital currency as early as December.
Although a lot has not been mentioned, he did
throw some light on the fact that the higher
authorities are finalising if the currency should
be based on Distributed Ledger Technology, the
same one on which various cryptocurrencies are
held and traded without any central authority on
a centralised ledger. He further announced that
every Central Bank was always supposed to
launch their own version of digital currency and
the timing now seems just right.
NAZARA TECH ACQUIRES
OPENPLAY
Nazara Technologies Ltd, diversified gaming and
sports media platform, acquired the entire stake in a
skill gaming firm OpenPlay for a total payment of Rs
186.4 crore. According to Nazara, this move opens
up the possibility of creating a network of skill
gaming locations based on a single technology
platform.
GDP LEAPS OWING LOWER BASE
In the first quarter of this fiscal year, India's GDP
increased by 20.1%. KV Subramanian, the Chief
Economic Adviser (CEA), has predicted that
growth during the financial year 2021-22 will be
higher than the pre-pandemic levels. He went on to
say that the first-quarter GDP data backs up the
government's projection of an impending V-
shaped rebound from last year.
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