Latest news with #EighthPayCommission
India.com
17-07-2025
- Business
- India.com
8th Pay Commission update: Will salary of government employees increase three times? Know all details
8th Pay Commission update: Will salary of government employees increase three times? Know all details 8th Pay Commission update: Central employees and pensioners across the country are eagerly waiting for the Eighth Pay Commission. This commission can bring a big change in their salary and pension. According to a recent report, the salary of employees can increase by 30 to 34 percent. But how much your salary will increase when the Eighth Pay Commission will be implemented? Actually, the central government constitutes a pay commission every ten years, which revises the salary and pension of central employees, defense personnel and pensioners on the basis of inflation and economic situation. The Eighth Pay Commission is likely to be implemented in 2026 or FY 2027. How much will the salary increase? Experts believe that this time the salary may increase by 30 to 34 percent, which will put an additional burden of about Rs 1.8 lakh crore on the government treasury. Fitment factor is used for salary revision, which increases the existing basic salary according to the new structure. According to a report by Ambit Capital, the fitment factor is likely to be between 1.83 and 2.46. For example, if the minimum salary is Rs 18,000, it can increase to Rs 44,280 if a 2.46 fitment factor is applied. At the same time, an employee with a salary of Rs 50,000 can get a salary of Rs 1.23 lakh (2.46 fitment) or Rs 91,500 (1.83 fitment). Will DA also increase? Apart from this, the commission can also recommend an increase in dearness allowance (DA) and pension revision. This increase in salary will not only be beneficial for the employees, but it will also give impetus to the Indian economy. People will spend more due to the increased salary, which will increase demand in the market and boost economic growth.
Time of India
30-06-2025
- Business
- Time of India
Stick to large-caps, disciplined asset allocation: 4 top mutual fund managers reveal how investors can navigate on-going stock market volatility, global uncertainty
Sankaran Naren,ED & CIO, ICICI Prudential AMC Academy Empower your mind, elevate your skills Nilesh Shah,MD, Kotak Mahindra AMC Nimesh Chandan,CIO, Bajaj Finserv AMC Chirag Mehta,CIO, Quantum AMC India is not at the epicentre of the current geopolitical tensions, so the direct impact has been relatively limited. Of course, if tensions were to spike significantly—particularly if crude oil prices were to surge—it could have a negative effect on our markets. So far, we have seen crude prices spike and then cool off. Our overall investment framework over the past 20 months has focused around diversification and asset allocation. This has worked well in volatile market conditions, and we haven't found the need to change our basic core are currently in a moderate return environment across asset classes. Initially, we thought that gold and silver had significant return potential—and they have delivered strong returns. But looking ahead, we find it difficult to identify any one asset class that could deliver outsized returns. Even Indian equities, which did outperform earlier, are now delivering more moderate returns, in line with our expectations from a couple of years ago. At present, it is challenging to pinpoint any one asset class with big return potential in the near is the time to take a balanced approach. Instead of concentrating only on high-risk areas, investors should consider large-cap or flexi-cap strategies, and maintain a sound asset allocation plan. Expectations also need to be realigned— from the high returns seen between 2020 and 2024, to more moderate returns going forward. That's why we are strong proponents of hybrid strategies and also believe in SIP investing in flexi- and large-cap oriented tensions add volatility , but many stocks offer a margin of safety via strong growth and reasonable valuations. Ignore the noise and focus on the fundamentals. There are events happening in geopolitics at a rapid pace and accelerated scale which are unpredictable. There is no way we can position our portfolio for every global event. We can only respond to such an event. Our focus is on long term outlook. We focus on building portfolios of companies which are growing faster and which are available on reasonable conviction in consumer discretionary, driven by tax rebates, lower EMI burdens, and the Eighth Pay Commission . Also, we are favouring stocks which can deliver above-expectation growth at reasonable to disciplined asset allocation: buy cheap, sell expensive. At the current stage, we prefer large-cap equities at fair value, Gilts with over 7% yield for carry or performing credit AIFs, and gold in precious metal. More importantly we expect moderate returns in all asset classes over two to three things stand today, we are not worried about any significant negative impact of the Middle-east tensions on India. The Brent Crude price, which may impact inflation and input prices for some companies, has corrected. As far as positioning is concerned, even before these events, we have been positive and overweight on domestic sectors. So we continue with the top down research starts with identifying mega trends that can impact economies, businesses and companies. We look for opportunities where the valuations have not completely discounted a particular mega trend, and we look to invest in those areas. If there is a significantly large theme which is positively impacted by mega trends, we launch a separate fund for the same. Currently, we have only two such funds: Consumption and Healthcare Sector wise we are positive on BFSI, Consumption, Industrials and Healthcare . We are bullish on Indian equity market and believe that Indian markets provide a strong case for growth and diversification to global investors. There is a diverse pool of sectors contributing to the overall profit pool thereby reducing earnings volatility. Valuations have corrected in the last one year and many pockets are attractively is a good diversification in investment portfolios. However, after a sharp run up in the last two years, a near term correction in prices cannot be ruled out. Typically, when global uncertainty reduces, demand for safe havens like gold also geopolitical events have remained region-specific or short-lived, with limited impact on India's markets. Two key metrics to watch out for are the rising crude oil prices and defence spending, which could divert funds from growth and social initiatives. Unless there's a significant rise in either, India's growth trajectory is unlikely to be are generally the flavour of the season, but India's core structural theme lies in its potential for 6.5–7% real GDP growth. This translates into rising per capita income and evolving consumption patterns that significantly benefit underpenetrated sectors. Broadly, India's long-term secular themes revolve around domestic consumption, infrastructure, and market remains one of the few where economic growth translates into strong returns. As a result, it trades at a premium to peer emerging markets. However, following some price and time correction, valuations have moderated—large caps are now near long-term averages, while mid- and small-caps still appear expensive. Our strongest convictions lie in BFSI, consumer discretionary (such as autos), and the current geopolitical uncertainty, gold remains a vital portfolio diversifier. Rising deficits and unsustainable debt—likely to worsen under Trump's policies like the 'one big beautiful bill'—are eroding confidence in the US economy. This could weaken the dollar and support gold prices.
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Business Standard
01-06-2025
- Business
- Business Standard
Not the time for concentrated bets, thematic funds: Mirae's Neelesh Surana
Discretionary segments, he believes, may rebound as interest rates fall, rural incomes improve, and the government steps in with measures such as tax cuts and the Eighth Pay Commission Puneet Wadhwa New Delhi Listen to This Article With the January–March 2024–25 earnings season drawing to a close, Neelesh Surana, chief investment officer at Mirae Asset Investment Managers (India), tells Puneet Wadhwa in an email interview that they expect around 12 per cent earnings growth over the next two years, driven by banking, financial services and insurance (BFSI), metals, telecommunications (telecom), and a revival in consumer sectors. Discretionary segments, he believes, may rebound as interest rates fall, rural incomes improve, and the government steps in with measures such as tax cuts and the Eighth Pay Commission. Edited excerpts: Are global markets over-optimistic about the macro outlook? How might
Time of India
20-05-2025
- Automotive
- Time of India
Auto cycles, EV sparks & IT shifts: Kumar Rakesh decodes FY26's investment gears
Kumar Rakesh , Analyst – IT and Auto at BNP Paribas, shares his outlook on key trends shaping the auto and IT sectors as we head into FY26. He believes the passenger vehicle segment has likely bottomed out and is poised for a gradual recovery, supported by stabilising affordability and potential policy catalysts. Two-wheeler growth, however, may remain subdued amid tighter financing. In IT, Rakesh sees improved valuations and strong relative earnings growth making the sector attractive despite global uncertainties. He also highlights growing EV adoption—particularly in two-wheelers—as a key theme, supported by upcoming product launches and policy incentives. Let's start with the pulse of the auto sector. Where are we in the auto industry cycle, especially when it comes to 2-wheelers and 4-wheelers? We see the passenger vehicle industry to have troughed and expect a gradual growth recovery in the coming years. The last two years' growth slowdown was driven by a high base that was created post Covid by pent-up demand, and a sharp fall in affordability. While the base is normalised, our affordability index is showing that passenger vehicle affordability has largely stabilised over the last year, after having fallen considerably in the prior years. The catalyst to drive this growth recovery would be tax cuts announced in the recent budget and implementation of Eighth Pay Commission in 2026, apart from the stable affordability. For the 2W-industry, we expect the growth slowdown to continue in FY26. We have seen a sharp growth moderation in the recent months which we believe was driven by tighter financing availability. The industry had started seeing an increase in two-wheeler delinquencies resulting in a higher credit cost for the financial institutions. We have noticed a lot of the captive financing entities of the two-wheeler companies, NBFCs and MFIs, to have slowed down their disbursements in the second half of FY25 to control the rising credit cost. In the coming quarters, while we expect the credit quality to improve resulting in an improved financing availability, the industry growth may still be single digit in absence of a buoyant financing that the industry had enjoyed over the recent years. Live Events EVs have dominated the headlines, but the numbers still show ICE vehicles holding strong. Are we witnessing a long transition phase, or is the EV narrative running ahead of itself? In the passenger vehicle industry, EV penetration has been around 2% for some time, which we believe is partly a reflection of leading automotive OEMs' absence from the EV market. As they launch their EV models in the coming years, we expect the EV penetration among passenger vehicles to rise. Globally, we have noticed hybrid penetration outperforming EV penetration in recent years. As more hybrid models get launched, we could see a similar trend playing out in India as well. In the two-wheeler industry, despite lowering of demand incentives in recent years, EV penetration has continued to rise. While demand could show monthly volatility as it adjusts to changes in incentives, we believe two-wheeler customers now well understand the value proposition of EVs and we should see a structural increase in its adoption. However, for an accelerated adoption of EVs in the two-wheeler industry, we would need to see commuter and executive motorcycles also getting electrified, which currently looks like a few years away. How do you think India-UK FTA will impact some of our listed players? Most automotive manufacturing plants in the UK are of premium and luxury brands. Hence, we do not see any material impact to India-listed passenger vehicle OEMs. That said, we could see a slightly higher number of premium/luxury vehicles selling in India, which are currently miniscule. In the IT space, do you think the recent bounce in stocks has enough steam left as the Trump administration is working out trade truce agreements with major economies? We believe we are past the trough of negative news cycle related to tariffs and counter tariffs. The economic impact of these announcements are yet to fully reflect. While that is a near-term risk, the year-to-date correction in the Indian IT Services' companies' valuations has brought down their premium over Nifty50's valuation to one of the lowest levels in the last five years. However, their one-year forward earnings growth outperformance over that of Nifty is now the highest that we have seen in almost a decade. Also, the sector is trading at close to the highest dividend yield in the last decade (outside of Covid period) creating a valuation backstop. Hence, in a scenario where the US macroeconomy goes through a shallow recession and then recovers by early 2026, risk-reward balance in the Indian IT services stocks looks favourable to us. Several mid-cap IT names have outperformed the biggies lately. Is this a structural re-rating? This is a trend we have seen particularly post Covid. We believe the growth of some of the midcap IT services companies have structurally improved in the recent years. Part of the reason is enterprises breaking down large contracts in smaller projects in which midcap companies can also now participate unlike earlier. This has resulted in an increase in the addressable market for midcap IT services companies driving their growth higher. Also, some of the enterprises now prefer to bring in a good quality mid-cap IT services company as a challenger to their large-cap IT vendor, both for cost reasons as well as technological innovations. If you had to pick a theme to watch in FY26—AI monetization in IT or EV adoption in autos—what would you bet on? AI monetisation may not translate to higher revenue for IT services companies in FY26 due to macroeconomic uncertainty and cost constraints on enterprise customers. However, in EVs, we will see 1) leading passenger vehicle OEMs launching and ramping-up their BEV models, 2) multiple new EV model launches across two-wheeler OEMs and network expansion, especially post the recent listing of major EV two-wheeler start-ups, and 3) first full year of PLI incentives for EVs being available. Hence, we would expect EV adoption to continue to gain traction in FY26 and to be a key theme in the year.
News18
22-04-2025
- Business
- News18
Trent, DMart, HUL Lead UBS' Top Consumer Stock Picks On Demand Rebound In FY26
UBS has turned optimistic on India's consumer sector; On the downside, it maintained 'Sell' ratings on Asian Paints, Dabur, Jubilant FoodWorks UBS has turned optimistic on India's consumer sector, forecasting a 13% earnings growth for FY26 and naming Avenue Supermarts (DMart), Trent, and Hindustan Unilever (HUL) as its top stock picks. The brokerage has upgraded several stocks in the space, banking on a demand rebound, easing input costs, and expected income boosts from potential tax cuts and the upcoming Eighth Pay Commission. UBS noted that consumer stocks have underperformed the broader market during both the recent rally and ongoing correction, which has brought valuations to more attractive levels. The current market conditions, it said, present a 'goldilocks" scenario—favourable for a turnaround. The firm believes FY26 could be an inflection point for the sector, supported by cyclical earnings recovery and improving macro fundamentals such as falling inflation, rising rural wages, and fiscal stimulus measures. Among its top picks, UBS highlighted Avenue Supermarts and Trent as strong 'income stimulus plays," with robust value retail models poised to benefit from increased disposable incomes. DMart, which last traded at Rs 4,357, has been given a target price of Rs 5,200—indicating a 19% upside. Trent, trading at Rs 5,131, was assigned a target of Rs 6,200, suggesting a 21% potential gain. UBS said DMart is ramping up store expansion and enhancing its e-commerce platform, DMart Ready, to align with the shift towards quick commerce. It expects DMart to deliver a 20% revenue CAGR and 25% EPS CAGR from FY25 to FY27. Trent, which runs the Zudio and Westside retail chains, is seen benefiting from aggressive expansion into tier-2 and tier-3 cities. UBS projects a 29% revenue CAGR and 36% EPS CAGR for the company over the same period. For turnaround potential, UBS is backing Hindustan Unilever. Once a sector leader, HUL has recently lagged, but the brokerage sees room for a comeback. It expects volume growth to recover to 6-7% in the second half of FY26, supported by falling input costs and a refreshed strategic focus under its new global CEO. The stock, currently at Rs 2,375, has a target price of Rs 2,800. Additionally, UBS upgraded Colgate-Palmolive, Godrej Consumer Products (GCPL), and ITC to 'Buy'. It sees Colgate regaining share in oral care while recovering from a strategic margin reset, and expects GCPL to benefit from product innovation in insecticides and stronger global performance. ITC, meanwhile, is viewed as attractively valued following a recent correction driven by tax-related concerns. UBS believes the current price reflects conservative growth expectations. On the downside, the brokerage maintained 'Sell' ratings on Asian Paints, Dabur, and Jubilant FoodWorks. It cited ongoing margin pressures and competition at Asian Paints, weak growth visibility at Dabur, and limited upside at Jubilant despite improving same-store sales. UBS concluded that the consumer sector is emerging from a weak phase and is ripe for rerating as both cyclical and structural headwinds begin to ease. While it slightly trimmed its FY26 GDP growth forecast for India to 6%, it believes the impact on consumption will be minimal, particularly in categories like packaged foods, quick service restaurants, and value retail. Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. First Published:
