Afleveringen
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It's Friday, March 14th, 2025. This is Nelson John, let's get started.
LG Electronics India’s ₹15,000 Crore IPO Gets SEBI Nod
LG Electronics India has received SEBI approval for its ₹15,000 crore IPO, following Hyundai Motors as the second South Korean company to list in India. The 100% offer-for-sale (OFS) will see the parent company offload a 15% stake, with proceeds not going to LG India. With ₹64,087 crore revenue in FY24, the consumer electronics giant is gearing up for listing amid rising demand for premium appliances.
Tata Motors Faces Headwinds as Auto Rally Cools
India’s booming auto industry is slowing down. The Nifty Auto Index, up 36% post-pandemic, has dipped 25% since September, with Tata Motors losing 33% of its value. The slowdown in Jaguar Land Rover (JLR) sales, tightening EU emission norms, and China’s EV shift have hit Tata hard. Its EV market share in India has dropped from 73% to 53% due to rising competition. Despite these challenges, Tata remains bullish on JLR’s cash flow, but investors await signs of a rebound.
Reliance FMCG Expansion Will Take Time
Reliance Consumer Products Ltd (RCPL) is scaling up its FMCG business, aiming for nationwide reach in 3-4 years. With brands like Campa Cola and Independence, RCPL has already taken 10% of the sparkling beverage market in key states. However, success hinges on building a strong general trade network—critical for India’s mom-and-pop-driven market. With a target of 5-6 million retail outlets and ₹1,000 crore turnover expected for FY25, Reliance is playing the long game.
CG Power’s Big Bets on Railways and Semiconductors
CG Power is capitalizing on India’s infrastructure push, securing a ₹450 crore contract for Vande Bharat trainsets. It’s also making a ₹7,600 crore bet on semiconductors, launching a chip assembly plant in Gujarat with government backing. A ₹9,706 crore order book (up 70% YoY) signals growth ahead. Brokerages are bullish—Nomura projects a 33% upside. With India prioritizing infrastructure and high-tech industries, CG Power is positioning itself as an industrial powerhouse.
Sun Pharma Expands Oncology Play with $355M Checkpoint Buy
Sun Pharma is strengthening its oncology pipeline with the $355 million acquisition of US-based Checkpoint Therapeutics. This gives it access to Unloxcyt, an FDA-approved skin cancer drug with a $500M peak sales potential. Though Checkpoint has been loss-making, Sun sees long-term value in high-margin specialty drugs, which now contribute 18% of revenue. However, with the stock down 11% in 2025, the success of Unloxcyt’s launch will be critical for investor confidence. -
It's Thursday, March 13th, 2025. This is Nelson John, let's get started.
1. Saudi’s Riyadh Air Eyes India for Expansion
Riyadh Air, Saudi Arabia’s new airline, sees India as a key market, with CEO Tony Douglas calling it “super important.” Set to begin operations this year, the airline is in early talks with Air India and IndiGo for potential partnerships. Riyadh Air plans to connect Saudi Arabia to over 100 destinations by 2030 and has already partnered with Singapore Airlines, Turkish Airlines, Virgin Atlantic, and Delta. With a fleet of Boeing 787-9 Dreamliners and Airbus A321 neos, the airline is tapping into India’s booming aviation market, where Indians form the second-largest expat group in Saudi Arabia. Notably, 16% of Riyadh Air’s staff are Indian.
2. Estée Lauder, DPIIT to Boost India’s Beauty Startups
India’s beauty and personal care startups are set for a major push as the Department for Promotion of Industry and Internal Trade (DPIIT) partners with US cosmetics giant Estée Lauder. Through its BEAUTY&YOU India initiative, the collaboration will offer funding, mentorship, and global industry access, with a special focus on women-led startups. India’s beauty market is expected to grow from $7.43 billion in 2025 to $9.69 billion by 2034. “This is a first-of-its-kind initiative,” said Sanjiv, Joint Secretary, DPIIT. With India boasting the world’s third-largest startup ecosystem, this partnership could drive innovation and scaling opportunities for beauty entrepreneurs.
3. India’s IT Stocks Plunge Amid Growth Concerns
India’s top IT firms—TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra—saw their stocks fall up to 4.28%, erasing ₹75,414 crore in market value. Brokerages Morgan Stanley, Kotak Institutional Equities, and Motilal Oswal flagged concerns over sluggish IT spending recovery in FY26-27. High interest rates, geopolitical tensions, and vendor consolidation are slowing discretionary tech spending. “We see a transition phase where IT spending is reprioritized, moderating growth,” noted Morgan Stanley analysts. Despite these headwinds, Nasscom projects the IT industry to cross $300 billion by March 2026, implying 6.2% annual growth, though analysts remain skeptical.
4. Gold’s Surge Raises India’s Sovereign Gold Bond Liabilities
As gold prices soar and equities struggle, the Indian government faces rising liabilities on its Sovereign Gold Bond (SGB) scheme, which ties payouts to gold’s market price. Gold has outperformed equities since 2015, rising 3.46 times its value, while Nifty 50 has declined. ₹2.39 trillion has already been paid under gold-related schemes since 2017, with another ₹1.4 trillion budgeted for 2024-26. With 132,000 kg of gold equivalent set for payout between 2025 and 2032, a prolonged gold rally could strain government finances, making this a key issue for policymakers and investors.
5. Wendy’s, Rebel Foods to Open 500 Locations in India by 2028
Rebel Foods will invest ₹100-150 crore to expand Wendy’s footprint in India, targeting 500 locations by 2028. The expansion leans heavily on cloud kitchens, which will account for 70% of new openings. Currently, Wendy’s operates in 200 locations, with 185 cloud kitchens and 15 offline stores. India’s quick-service restaurant (QSR) market is growing at a 23% CAGR, but profitability remains challenging due to inflation and competition. Rebel Foods CEO Ankush Grover expects the IPL season to boost sales. Rebel Foods, which runs over 450 cloud kitchens across India, the Middle East, and the UK, recently raised $210 million from Temasek to fuel expansion. -
Zijn er afleveringen die ontbreken?
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It's Wednesday, March 12th, 2025. This is Nelson John, let's get started.
Govt Plans LIC Stake Sale
The Indian government may sell a 2-3% stake in LIC in FY26, subject to market conditions, as part of SEBI’s mandate to reduce its stake to 90% by 2027. Instead of a single offering, the sale might be in tranches to maximize value. With a 96.5% holding, the Centre’s stake sale could fetch ₹9,500-14,500 crore at current prices. However, with weak market sentiment, analysts believe the government will wait for a recovery.
Temasek’s ₹8,500 Crore Bet on Haldiram’s
Singapore’s Temasek has acquired a 10% stake in Haldiram Snacks Food Pvt. Ltd. for ₹8,500 crore, valuing the snack giant at ₹85,000 crore ($10 billion). The deal follows a restructuring merging Haldiram’s Delhi and Nagpur operations under one entity. The family may sell another 5% stake to Blackstone or Alphawave Global. With ₹14,000 crore revenue in FY24 and a 40% market share, Haldiram’s is eyeing an IPO in 24-36 months, signaling strong investor interest in India’s growing food sector.
Zydus Expands into Medical Devices with €256.8M French Acquisition
Zydus Lifesciences is set to acquire an 85.6% stake in French firm Amplitude Surgical for €256.8 million, with plans for a full €300 million buyout. This move marks Zydus’ entry into global medtech, focusing on orthopaedics, cardiology, and nephrology. “We aim to build a sizable medtech business in 5-7 years,” said MD Sharvil Patel. With India still importing 80-85% of medical devices, Zydus sees a major opportunity in local manufacturing and global expansion.
Fewer Promotions, Modest Salary Hikes in 2025
Employees may see career growth slow in 2025, with promotions projected to drop 25%, per Deloitte. Economic uncertainty, slower revenue growth (4.4% in Q3FY25 vs. 9.1% two quarters ago), and cost-cutting measures are driving this trend. US President Trump’s proposed tariffs could further impact key Indian industries. Companies are tightening performance evaluations, and salary hikes are expected to average 9.2% in 2025, slightly lower than last year. Some IT firms may offer promotions without pay raises to retain staff, while Vedanta Group remains an outlier, maintaining promotion levels.
IndusInd Bank’s ₹19,000 Crore Stock Meltdown
IndusInd Bank’s stock crashed over 25% after revealing discrepancies in its derivatives portfolio spanning 5-7 years, impacting net worth by 2.35% (~₹1,600 crore). An external audit is underway, but the disclosure has raised concerns over internal controls. The RBI recently granted CEO Sumant Kathpalia just a one-year extension, possibly due to this issue. With a 50% stock decline in six months and stress in its microfinance portfolio, IndusInd faces a tough road ahead to rebuild investor trust. -
It's Tuesday, March 11th, 2025. This is Nelson John, let's get started.
🚨 Ola Electric Faces Regulatory Scrutiny
Ola Electric’s rapid expansion—4,000 stores in two years—has run into legal trouble. A Bloomberg report claims 95% of its showrooms lack trade certificates needed to display or sell unregistered vehicles, triggering raids, shutdowns, and vehicle seizures across states. Ola dismissed the allegations as “misplaced and prejudiced,” but internal documents suggest it only sought certification after facing scrutiny. Meanwhile, its stock fell 4% on March 10, adding to a 60% decline since its IPO. Alongside regulatory woes, Ola is battling layoffs, launch delays, and shrinking market share as Bajaj and TVS gain ground. A major red flag? Ola reported 25,000 vehicle sales in February, but only 8,600 were officially registered. CEO Bhavish Aggarwal remains optimistic about a turnaround, but challenges continue to mount.
🎵 Spotify’s India Strategy Pays Off, But Can It Make Money?
When Spotify entered India in 2019, competition was fierce. Yet, six years later, it has emerged as a dominant player, with 91 million unique visitors and 46% YoY growth in listening hours. Its success lies in hyper-local strategies—curated regional playlists, flexible pricing, and an artist-centric approach. “India was our 79th market, and we were here for the long game,” says Amarjit Batra, MD of Spotify India. Over 70% of streams now come from local artists. However, monetization remains a challenge—subscription prices in India are much lower than in Western markets, and artist payouts remain a pain point. Spotify has changed India’s music habits, but whether it can turn free listeners into paying subscribers remains the billion-dollar question.
📉 Inflation Cools, Strengthening Case for Rate Cuts
India’s retail inflation likely eased to 3.9% in February from 4.3% in January, marking four straight months of cooling prices, according to a Mint poll of 25 economists. The key driver? Falling food prices, especially vegetables, which saw inflation drop from 40% last year to 11.4% now. With inflation undershooting RBI forecasts, economists believe this could pave the way for a rate cut in April. “A moderation in CPI inflation below 4% should provide space for the MPC to lower rates by another 25 basis points,” says Annubhuti Sahay of Standard Chartered Bank. However, with GDP growth at 6.2%, the RBI will need to balance inflation control with economic stimulus. The official inflation report, due March 12, will be a key indicator of the central bank’s next move.
🏸 Gopichand Warns Parents: ‘Don’t Push Kids Into Sports Without Money’
Former Olympian and badminton coach Pullela Gopichand has sparked debate by cautioning parents against pushing kids into professional sports unless they are financially secure. His concern? The exorbitant cost of training and the lack of stable career opportunities. Tennis player Tishya Khandelwal’s family, for example, spends ₹45 lakh annually on her training in Australia. Chess prodigy Vedant Panesar shells out ₹3-3.5 lakh per European tournament, with little financial support until players reach the elite level. While cricket and football offer lucrative leagues, most other sports struggle to provide financial security. Even for top players, post-retirement options are limited. As one parent bluntly puts it, “Only the top 100 in pro tennis break even. Everyone else loses money.” Passion alone isn’t enough—deep pockets are almost a prerequisite. -
It's Monday, March 10th, 2025. This is Nelson John, let's get started.
🚀 Gensol’s Debt Crisis: Can It Survive?
Gensol Engineering, once a rising star in solar and EVs, is now in deep financial trouble. Chairman Anmol Singh Jaggi pledged 85.5% of his stake to fund expansion, but missed loan repayments triggered a credit downgrade. As its stock plummeted 37% in a week, investors asked: Where did the money go? In a bid to stay afloat, Gensol is selling assets worth ₹315 crore, including its US solar tracking unit. If the deals go through, survival is possible—if not, lenders may take over. Jaggi remains optimistic, but can Gensol escape its own debt trap?
⚡ Ultraviolette’s Big Bet on EVs
Ultraviolette Automotive, backed by TVS, Qualcomm, and Zoho, aims to redefine high-performance EVs. With only 1,000 motorcycles on the road, it just unveiled two new models—the Tesseract EV scooter and the Shockwave enduro bike—hoping for mass adoption and profitability within 18 months. But analysts are skeptical, citing price-sensitive buyers and Ola Electric’s recent struggles. Still, Ultraviolette is expanding across India and Europe while slashing early-bird prices to attract customers. CEO Narayan Subramaniam insists, “We are prioritizing access.” The question is—will buyers respond?
🛍️ Online vs. Offline Retail: A New Balance
E-commerce revolutionized shopping, but physical stores aren’t dying just yet. A PwC survey found that 34% of Indian shoppers still prefer offline stores, compared to 21% who shop exclusively online. The reason? Trust, touch, and personalized service. While quick commerce thrives, local retailers are adapting—blending digital tools with in-store experiences. As India’s retail market heads toward a $1.89 trillion future, the key to success isn’t choosing one model over the other but mastering both.
🎶 AI vs. Music Labels: The Copyright Battle
Indian music giants like Saregama, T-Series, and Sony are suing OpenAI, accusing it of training AI models on copyrighted music without permission. Their fear? AI could generate music in an artist’s style, undermining licensing revenues and creative identity. “Labels risk losing control over their assets,” warns IndusLaw’s Bharadwaj Jaishankar. Globally, AI-generated content is sparking legal debates—Drake even faced backlash for using AI to mimic Tupac. As technology challenges traditional copyright laws, the music industry faces a critical question: How do we protect human artistry in an AI-driven world?
🏨 BWH Hotels’ India Expansion
BWH Hotels (Best Western, SureStay) is betting big on India, with plans for 21 new hotels in two years—all newly built, signaling a shift from conversions. CEO Larry Cuculic sees secondary markets as key, thanks to better infrastructure and demand for events like weddings. With 28 hotels currently and 54 more signed, BWH aims for 100 properties within seven years. As India’s hotel demand outpaces supply, global players like Marriott and Wyndham are also expanding. With 100,000 branded rooms expected by 2029, Cuculic calls India a “tremendous growth opportunity.” -
It's Friday, March 7th, 2025. This is Nelson John, let's get started.
India’s Market Turmoil & Potential Rebound
The Nifty 50 has plunged 14% from its September peak, making it one of 2025’s worst-performing global indices. However, India’s steep valuations have cooled, with MSCI India’s forward P/E ratio dropping to 17.93x. Analysts suggest the correction may be nearing its end, as similar past downturns have led to rebounds. While Jefferies India sees potential for outperformance, uncertainty remains due to delayed tax cuts, RBI policy shifts, and global trade tensions. Investors are closely watching upcoming inflation data (March 12), RBI’s April rate decision, and the U.S. Fed’s March 18-19 meeting for liquidity signals. The road ahead remains volatile, but history hints at a turnaround.
Razorpay Expands to Singapore
Fintech giant Razorpay is entering Singapore, its second Southeast Asian market after Malaysia, aiming to simplify payments and cut cross-border transaction fees by up to 40%. “Singapore is the ideal market for our next phase of growth,” said co-founder Shashank Kumar. With digital payments projected to hit $180 billion by 2029 and near-total cashless adoption, the expansion is strategic. Razorpay’s payment gateway Curlec, which launched in Malaysia, is already seeing 30% month-on-month growth. Backed by investors like Tiger Global and Peak XV, Razorpay reported ₹2,501 crore in FY24 revenue, with net profits at ₹34 crore. While expanding globally, the India-born firm is also preparing for a domestic listing.
Mudra Yojana’s Impact on Small Businesses
For years, small business owners in India struggled to access credit due to collateral requirements and complex banking norms. In 2015, the government launched the Pradhan Mantri Mudra Yojana (PMMY) to provide collateral-free loans. Since then, ₹31.85 trillion has been disbursed, with Tamil Nadu, Uttar Pradesh, and Karnataka receiving the highest amounts. Over 516 million loans have been sanctioned, fueling entrepreneurship, job creation, and financial inclusion. Q3 FY25 saw a record ₹3.39 trillion disbursed, reflecting strong demand. In response, the government raised the loan limit to ₹20 lakh, effective October 2024. Meanwhile, non-performing assets (NPAs) under the scheme have improved, dropping to 3.4% in FY24.
The U.S.-China Quantum Computing Race
Quantum computing, a technology capable of solving problems in minutes that would take today’s supercomputers billions of years, has sparked a fierce U.S.-China rivalry. In Hefei, a Chinese startup displayed a rare quantum machine, while American giants like Google and IBM pushed the field’s limits. China’s state-backed model has advanced quantum communications, sensing, and cooling technology, while America’s private-sector-led innovation faces investor pressure. The U.S. imposed strict export controls, fearing China’s rapid progress. With China leading in ultra-secure quantum communications and America holding a wide lead in quantum computing, the race for dominance remains heated, with global power at stake.
Nestlé’s Nespresso Bets Big on India’s Coffee Boom
India has long been a tea-drinking nation, but a new wave of young, affluent consumers is driving a coffee boom—one Nespresso wants to tap into. The brand launched its first boutique in Delhi’s Nexus CityWalk mall, catering to consumers eager to recreate café-quality coffee at home. “Young consumers are exposed to coffee trends through social media and cafés. Now, they want that experience at home,” says Nespresso CEO Philipp Navratil. With machines starting at ₹16,500 and coffee pods at ₹95 each, Nespresso is targeting the premium market. The company is also eyeing India’s growing hospitality sector, supplying five-star hotels, offices, and corporate lounges. With the café market growing at 8.1% annually, Nestlé is making a long-term play to redefine India’s coffee culture. -
It's Thursday, March 6th, 2025. This is Nelson John, let's get started.
ITC Hotels’ Rough Debut
January 29 was supposed to be a landmark day for ITC Hotels as it began trading independently. However, shares debuted nearly 30% below the implied price, dampening initial enthusiasm. Despite this, analysts remain bullish, valuing the company between ₹42,500-₹62,000 crore. ITC Hotels aims to expand to 200 hotels with 18,000 rooms in five years, relying on managed properties. However, investors worry about its limited owned-hotel pipeline. As competitors like IHCL and Marriott ramp up expansion, ITC Hotels must carve out its niche in a booming industry.
Coforge’s Record-Breaking Deal
Coforge Ltd soared 8% after securing a record 13-year, $1.56 billion deal with US travel tech giant Sabre Corp. This long-term contract ensures strong revenue visibility for FY26, even as tech budgets shrink. Coforge also acquired Rythmos Inc. for $48.7 million and TMLabs for $12.5 million, further expanding its portfolio. A 1:5 stock split was announced to boost liquidity. However, Sabre’s $5.1 billion debt raises cash collection concerns. Despite this, Coforge has outperformed peers, with its December order book reaching $1.4 billion—up 40% YoY.
Tesla, Tariffs & Trump
India’s sky-high auto tariffs—up to 110%—have kept foreign automakers like Tesla out, despite Elon Musk’s repeated attempts to enter the market. Now, US President Donald Trump has joined the fight, slamming India’s “unfair” tariffs and threatening retaliatory action. As trade negotiations intensify, India has begun cutting duties on luxury vehicles—a possible opening for Tesla. With Trade Minister Piyush Goyal in the US for talks, the world watches to see if India will open its doors to global carmakers or protect its domestic industry.
Cancer Drug Prices Set to Fall
Cancer treatment in India is notoriously expensive, with some drugs costing up to ₹2 lakh per month. That’s changing, thanks to domestic production under the government’s PLI scheme. Leading pharma firms like Sun Pharma, Cipla, and Biocon are now manufacturing key cancer drugs, significantly cutting prices. For example, Trastuzumab, once ₹70,000 per month, now costs ₹12,000. More price reductions are expected as local production scales up. The initiative not only benefits Indian patients but also strengthens India’s role as the “pharmacy of the world,” with exports to South America and Africa.
Rupee Rises Amid Market Rally
The rupee strengthened by 19 paise to close at 87.00 against the US dollar, supported by a rally in domestic equities, a weaker dollar, and falling crude oil prices. Volatility remained high, with the currency fluctuating between 86.93 and 87.20. Meanwhile, the dollar index slipped 0.79% amid Trump’s escalating tariff moves. Brent crude also declined 0.75% to $70.51 per barrel. Markets responded positively, with the Sensex surging 740 points to 73,730 and the Nifty rising 255 points to 22,337. However, FII outflows and ongoing trade uncertainties could limit further rupee gains. -
It's Wednesday, March 5th, 2025. This is Nelson John, let's get started.
India’s Steel Industry Faces Tariff Fallout
India’s steel industry was on a growth path—until US tariffs disrupted global trade flows. With Washington slapping 25% tariffs on steel from Mexico and Canada and doubling duties on Chinese imports, China’s steel exports to the US have become unviable. This surplus steel now threatens to flood India, driving prices down and squeezing margins. “India becomes the natural target for Chinese steel at the worst possible time,” warns Karan Pahuja of ISSDA. While some see opportunity—like Abhyuday Jindal of Jindal Stainless, who notes that Indian exports to the US may gain—others worry that surplus steel from Korea and Japan could also hit domestic markets. The industry is now looking to the Indian government for protective measures.
BSE Stock Tumbles Amid SEBI Proposal—But Is Panic Justified?
BSE shares plunged 20% after SEBI’s February 24 consultation paper raised concerns over trading volumes. At issue is SEBI’s plan to change how open interest is calculated in index derivatives, shifting to a delta-based method to reduce systemic risks. But fears may be overblown—SEBI’s own data shows that in 89% of cases last November, the proposed limits wouldn’t have been breached. Additionally, SEBI’s move to restrict derivatives to broader indices aims to prevent manipulation, but exchanges could tweak index compositions to comply. With single-stock derivatives also facing new limits, analysts believe only low-liquidity stocks will be affected. After four days of declines, BSE shares rebounded 2%, signaling investors are reassessing the panic.
SEBI’s ‘Mitra’ Helps Investors Recover Forgotten Mutual Funds
Millions of old mutual fund investments remain unclaimed, particularly those opened before PAN was mandatory in 2006. SEBI’s new digital assistant, Mitra, developed by KFin Technologies and CAMS, aims to fix this. Investors can visit MFcentral.com, enter their details (beyond just PAN), and track down inactive folios. While verification remains a challenge for accounts with outdated contact details, experts see Mitra as a game-changer. “It’s a much-needed tool to consolidate scattered investments,” says Abhishek Kumar of SahajMoney. Still in beta, Mitra marks SEBI’s latest effort to safeguard investor wealth and modernize financial tracking.
Adani Wilmar Expands Into Packaged Foods With ₹603 Crore Deal
Adani Wilmar, known for its Fortune and Kohinoor brands, is strengthening its foothold in Indian kitchens. The company is acquiring G.D. Foods—makers of Tops ketchup and noodles—for ₹603 crore as part of its ₹1,000 crore push into packaged foods. The deal gives Adani Wilmar access to a range of processed products and a retail presence in 150,000 stores across North India. MD Angshu Mallick emphasized their commitment to scaling Tops, positioning it alongside FMCG giants like Marico, ITC, and Tata Consumer. With this acquisition, Adani Wilmar aims to turn Tops into a household staple.
India’s IT Giants Face Growth Uncertainty Amid US Banking Slowdown
India’s IT heavyweights—TCS, Infosys, HCLTech, Wipro, and Tech Mahindra—are entering uncertain territory. US banks, their largest clients, are pausing tech investments due to inflation worries and trade tensions. JM Financial’s Abhishek Kumar warns, “Uncertainty has crept in… Trade war seems imminent.” Banking contributes nearly a third of revenues for these IT firms, meaning any spending cuts could hit growth. Adding to concerns, Capgemini forecasts zero organic growth this year, signaling global headwinds. Kotak analysts expect FY26 to be marginally better than FY25 but still below pre-pandemic levels, with weak discretionary spending and AI-driven pricing pressures weighing on the sector. Nasscom predicts IT revenue will cross $300 billion next year, but analysts caution that achieving this won’t be easy amid economic challenges. -
It's Tuesday, March 4th, 2025. This is Nelson John, let's get started.
India’s Motor Insurance Crisis
For years, third-party motor insurance in India was a predictable business, but premium rates have been frozen for nearly three years, even as claims and inflation surged. As a result, underwriting losses are mounting. While some experts call for a 20% premium hike, others argue for better provisioning. With insurers struggling and India’s “Insurance for All” vision at stake, the big question is—will regulators step in before insurers pull back?
Paytm’s ₹611 Crore Regulatory Setback
Once a fintech darling, Paytm now faces a regulatory storm. The Enforcement Directorate has issued a ₹611 crore FEMA violation notice, alleging improper foreign investments between 2015-2019. Paytm disputes the claims, saying it didn’t own the subsidiaries in question at the time. While its stock dipped 4%, it rebounded by close. Can Paytm navigate this crisis, or is more turbulence ahead?
IDBI Bank’s $143.7 Million Legal Victory
IDBI Bank won a UK court ruling over a $67 million loan default tied to former Aircel promoter C. Sivasankaran. The court deemed a “letter of comfort” legally binding, but enforcing the judgment in India could prove challenging. With potential delays from appeals and insolvency proceedings, IDBI may need to explore aggressive legal options to recover its dues.
India’s Shift from Two-Wheelers to Used Cars
As incomes rise, more Indians are moving from two-wheelers to cars—but many are choosing second-hand vehicles. Used car sales are booming, fueled by certified pre-owned programs and easier financing. Passenger vehicles now make up 17.7% of total vehicle sales, up from 12.9% in 2018-19. By 2028, the used car market is expected to double to $80 billion.
Google & HP’s 3D Video Revolution
Tired of lifeless video calls? Google and HP’s Project Starline promises hyper-realistic 3D meetings—no headsets required. Using AI, lightfield displays, and six-camera setups, it makes virtual interactions feel physical. Research shows users are more engaged and less fatigued. While scaling the tech affordably remains a challenge, Starline is redefining remote collaboration. The question is—how soon will it reach the masses? -
Tech Leaders Push Longer Workweeks: Brin Advocates 60-Hour Grind for AI Race
Google co-founder Sergey Brin is urging employees to work 60-hour weeks, believing it’s crucial for winning the race toward Artificial General Intelligence (AGI). His stance aligns with Infosys’ Narayana Murthy, who suggested 70-hour workweeks for young Indians, and L&T’s SN Subrahmanyan, who went even further with 90-hour weeks. In an internal memo, Brin stressed that with OpenAI and Microsoft closing in, Google must double down on effort. He encouraged engineers to use the company’s AI models for coding efficiency, reinforcing the message that AI’s future won’t wait. But will employees embrace this relentless work culture?
Adani Eyes U.S. Expansion Amid Legal Woes
Despite bribery allegations, Adani Group is reviving plans to invest in U.S. infrastructure, including nuclear power, utilities, and an East Coast port. Founder Gautam Adani faces accusations of bribing Indian officials to secure power deals, while the U.S. SEC is investigating a $265 million fraud scheme involving his nephew, Sagar Adani. The group denies the charges and is exploring legal options. Adani has pledged $10 billion toward U.S. energy security, potentially creating 15,000 jobs, banking on Trump’s pro-energy policies. This isn’t its first U.S. venture—the group previously considered Texas petrochemical investments. However, with mounting legal scrutiny, its American ambitions face uncertainty.
India’s Semiconductor Push: A Slow Climb Up the Value Chain
India’s $10 billion semiconductor Production-Linked Incentive (PLI) scheme, launched in 2021, signals a long-term ambition to build a Silicon Valley-like ecosystem. Semiconductor manufacturing is capital-intensive, with a single fab costing up to $20 billion. Countries like Taiwan and South Korea dominate through subsidies, tech transfers, and strategic alliances—tactics India has been slower to adopt. So far, India has focused on the assembly, testing, and packaging (ATP) segment, with actual payouts totaling just $2 billion since 2023. Meanwhile, semiconductor imports have shifted away from China, with Taiwan and South Korea now supplying nearly a third of India’s chips. With the U.S. restricting tech transfers to China, India has a unique opportunity to move up the value chain. But will global players bet big on India? That remains the billion-dollar question.
Bitcoin vs. Gold: One Soars, the Other Stumbles
Bitcoin and gold, often compared as stores of value, are charting very different paths. Since peaking at $109,000 in January, Bitcoin has plunged 24%, while gold has climbed nearly 8%. The reason? Market sentiment. Bitcoin behaves like a speculative asset, swayed by AI spending trends, tariffs, and Trump’s unpredictable policies, which have triggered a broader market pullback. In contrast, gold benefits from central bank purchases and geopolitical instability. Analyst Eric Wallerstein predicts gold could reach $4,000 by the decade’s end. Meanwhile, Bitcoin remains volatile—BlackRock estimates its annual price swings at 50%, far above gold’s 15%. As uncertainty looms, investors are opting for the stability of gold, leaving Bitcoin in pursuit of reliability. -
NBFCs Get a Boost from RBI Policy Shift
India’s non-banking financial companies (NBFCs) are set to benefit from RBI’s decision to lower risk-weights on bank lending to NBFCs from 125% to 100% starting April 1. This makes funding cheaper and more accessible, easing liquidity constraints that had slowed bank lending to NBFCs to 6.7% in Dec 2024 (half the previous year’s rate).
Key beneficiaries include M&M Financial and Cholamandalam Investment, which rely on banks for nearly 50% of their borrowings. Meanwhile, Bajaj Finance and Shriram Finance (less dependent on banks) may see a smaller impact.
However, asset quality remains a concern. M&M Financial’s bad loans rose to 2% in Q3FY25, pushing its stock down 3% over the past year, while Cholamandalam, with stronger financials (21.6% RoE), saw its stock rise 30%. Investors remain cautious—Cholamandalam trades at 3.9x FY26 book value, while M&M Financial lags at 1.6x.
The big question: Will NBFCs pass on the cost benefits to customers, and will this policy shift be enough to revive growth?
UltraTech Cement’s C&W Entry Rattles the Market
UltraTech Cement’s ₹1,800 crore foray into the cables & wires (C&W) industry has triggered sharp stock declines in Polycab, KEI, Havells, RR Kabel, and Finolex Cables (5-20%).
The move draws parallels with Grasim’s entry into paints, which eroded valuations of incumbents. Unlike paints (an oligopoly), C&W is fragmented, making market share gains difficult. UltraTech lacks a strong distribution network, adding to execution challenges.
With existing players already expanding capacity, overcapacity risks loom. If UltraTech pursues aggressive pricing, margins could suffer. Analysts estimate UltraTech could capture 5-7% of the market by FY29 (projected industry size: ₹1.3 trillion).
Interestingly, UltraTech’s own stock fell 5%, as investors question its capital allocation strategy—cement or diversification?
Amazon Unveils First Quantum Computing Chip, Ocelot
Amazon Web Services (AWS) has launched Ocelot, its first quantum computing chip, aimed at reducing error rates by 90%. This marks a key step toward practical quantum computing, a field dominated by Google, Microsoft, and Amazon.
Microsoft recently claimed a breakthrough in quantum matter, while Google’s Willow chip tackled error correction in December. Amazon’s approach mirrors Google’s focus on superconducting quantum circuits, while Microsoft takes a different route.
Ocelot is still a prototype, not a full system. While quantum computers promise massive computational power for applications like drug discovery and cybersecurity, commercial viability remains years—if not a decade—away. Analysts call this an advancement, not a breakthrough, but note that Amazon’s new method for error correction could help it catch up.
Beyond hardware, Amazon is also expanding its quantum services, including its Braket cloud platform and business advisory programs. The road to quantum supremacy remains long, but Amazon is moving closer.
Lodha Family Feud Intensifies Over Brand Name
Manju Lodha, matriarch of the Lodha real estate empire, has intervened in the legal battle between brothers Abhishek and Abhinandan Lodha, stating that neither can claim rights over the other’s business.
The dispute stems from a 2017 family agreement that split the empire. Abhishek leads Macrotech Developers (₹1.19 trillion market cap), while Abhinandan launched The House of Abhinandan Lodha after exiting the family business in 2015.
Macrotech took legal action in January to prevent Abhinandan from using the Lodha name, citing brand confusion. With the next Bombay High Court hearing on March 21, the battle over legacy and business identity continues. -
It's Thursday, February 27th, 2025. This is Nelson John, let's get started.
India is in a fierce race to attract investments, with at least 10 states holding investor summits in the past three months. Rajasthan leads with ₹35 trillion in MoUs, followed by Odisha at ₹16.73 trillion and Karnataka at ₹10.27 trillion. Even states with weaker industrial bases, like Bihar and Kerala, secured commitments worth ₹1.81 trillion and ₹1.53 trillion, respectively. At the World Economic Forum in Davos, several states pitched for global investments, contributing to India’s reported ₹20 trillion haul. The real challenge? Converting these commitments into actual investments. Even a 50% realization rate would be a success, experts say. Some states have set up tracking committees, but concerns remain that these summits merely shift investments between states rather than drawing fresh capital. Ultimately, execution—through regulatory ease, infrastructure, and political stability—will determine the success of India’s investment push.
The tobacco industry is grappling with rising leaf prices, squeezing margins for cigarette makers like ITC, which saw a 211 basis-point drop in cigarette EBITDA margin in Q3 FY25. While cigarette sales remain stable, illicit trade still holds 25% of the market. Godfrey Phillips, aided by Marlboro’s rising popularity, defied trends with a 440 basis-point increase in operating profit margin to 22.6%. However, speculation of a GST hike to 40% raises concerns of a shift back to illicit trade. With the compensation cess ending in 2026, the government may adjust taxes, keeping tobacco firms on edge.
India’s small-cap mutual funds are facing liquidity risks as redemption periods stretch. SEBI stress tests reveal that top funds now need over 50 days to liquidate half their portfolios, up from just 10-15 days a year ago. Larger fund sizes and rapid inflows are forcing managers to diversify into mid- and large-cap stocks. Many funds have adopted ‘soft close’ strategies to limit new inflows. Despite concerns, investor enthusiasm remains strong, but analysts caution against overexposure to small caps due to heightened market risks.
Vedanta Ltd. has secured approval for its demerger into five independent companies, aiming to unlock value for investors. The restructuring, expected by Q1 FY26, includes:
• Vedanta Aluminium – A global aluminum player
• Vedanta Oil & Gas – India’s top private crude oil producer
• Vedanta Power – A major electricity generator
• Vedanta Iron & Steel – Focused on ferrous products
• Vedanta Ltd. – Retaining zinc, silver, and emerging ventures
Shareholders will receive stakes in each new entity. Vedanta posted strong Q3 FY24 results, with revenue up 10% YoY to ₹385.3 billion and net profit surging 76% to ₹35.5 billion. The demerger aims to streamline operations and attract sector-focused investors.
India is pushing beyond generics to become a pharma innovation hub, launching a ₹5,000 crore fund under the PRIP scheme to boost R&D in drug discovery, medtech, and stem cell therapy. Expressions of interest will open in March, with bids invited in April. The government has allocated ₹4,250 crore for industrial research, offering startups up to ₹1 crore and larger firms ₹100-125 crore per project. With India’s R&D spend at just $3 billion annually—far behind the U.S. ($50-60 billion) and China ($15-20 billion)—this initiative aims to bridge the gap. The plan includes Centres of Excellence (CoEs) across seven pharma institutes, focusing on biopharmaceuticals, biosimilars, stem cell therapies, and antimicrobial resistance. Experts say while funding is crucial, regulatory reforms and stronger public-private collaboration will be key to India’s success in pharma innovation. -
CIE Automotive India Faces European Slowdown
CIE Automotive India is struggling with weak European sales, which dragged down its Q4 FY24 EBITDA margin by 43 basis points to 14.2%. European revenue fell 22%, hit by a 37.5% drop in commercial vehicle sales and 10% decline in light vehicles. Cost-cutting measures have been implemented, but a turnaround is expected only in H2 2025. Meanwhile, India operations grew 2%, with a focus on high-margin businesses like AEL and Billforge. CIE holds a ₹1,000 crore order book, with 25% linked to EV components. However, the stock is down 16% in 2025, and analysts have trimmed earnings forecasts due to weak demand.
Larisa Hotels Expands Post-Merger
After merging with AM Hotel Kollection, Larisa Hotels is expanding into metro, tier-II, and religious tourism markets under three brands. Recent deals include a 90-room hotel in Tirupati and another in Vrindavan. With 26 properties and ₹100 crore revenue, Larisa is shifting to professional hotel management and eyeing international expansion. India’s branded hotel inventory is set to cross 300,000 rooms by 2029, driven by business travel and religious tourism.
Nvidia’s Rollercoaster Start to 2025
Despite a $600 billion market wipeout in January, Nvidia has rebounded, down just 3% YTD. Retail investors remain bullish, pumping $5.7 billion into the stock this year. Traders are betting on a 9% post-earnings swing, with analysts expecting 59% profit growth and 72% revenue jump. Nvidia remains a key AI stock, reinforcing investor confidence.
UPI Goes Global
India’s UPI payments system is expanding internationally, allowing users to pay abroad seamlessly. Countries like UAE, Singapore, Sri Lanka, France, and Nepal have integrated UPI, removing the need for forex cards or conversion charges. This move benefits both Indian travelers and foreign businesses, positioning UPI as a game-changer in global payments.
Bengaluru Parents Struggle with Rising School Fees
Private school fees in Bengaluru are surging 10-15% annually, with some schools hiking fees by 30%. Parents are struggling with rising tuition, textbook, and transport costs, while salary increments lag at just 2-3%. Karnataka’s Education Minister admits limited control, but parents are demanding tighter regulations to curb excessive hikes. -
Apple’s $500 Billion U.S. Investment
Apple is making its largest financial commitment, pledging over $500 billion in the U.S. over four years to boost AI, silicon engineering, software, and R&D, creating 20,000 jobs. A key project is a Houston manufacturing facility assembling AI servers, set to open in 2026. Apple is also launching a Manufacturing Academy in Detroit to advance production techniques. This move follows Donald Trump’s claim that Apple planned a major U.S. investment. With a supply chain spanning 24 silicon facilities across 12 states, Apple’s investment solidifies its role in shaping American tech innovation.
Mankind Pharma’s Obesity Drug Bet
Mankind Pharma is set to enter the $100 billion anti-obesity drug market, eyeing Semaglutide—the key ingredient in Ozempic and Wegovy—whose patent expires in 2026. It joins Dr. Reddy’s, Natco Pharma, and Sun Pharma in the race to launch generic GLP-1 drugs. Given the complexity of development, Indian firms, including Mankind, will likely rely on third-party collaborations while leveraging strong branding. Mankind is expanding into chronic and specialty therapies, growing its chronic segment from 20.4% in FY15 to 35.5% in FY24. As competition intensifies, the company aims to carve out a space in the lucrative weight-loss segment.
Infosys-Daimler AI Deal Extension
Infosys is advancing discussions to extend and expand its $3 billion contract with Daimler, originally signed in 2020, adding AI tools to enhance IT services. The deal, covering network, security, SAP, and data centers, currently generates $400 million annually for Infosys. The extension, from 2028 to 2029, aligns with Infosys CEO Salil Parekh’s strategy of securing high-value, AI-driven contracts. The company’s manufacturing sector revenue has surged from $1.3 billion in FY20 to $2.8 billion in FY24. With businesses prioritizing AI, Infosys’s early renewal signals a broader shift toward AI-powered IT services.
NTPC-EDF Green Energy Partnership
State-run NTPC Ltd and EDF India, a subsidiary of France’s EDF, have signed a non-binding agreement for a 50:50 joint venture in pumped storage, hydro, and renewable projects across India and neighboring countries. NTPC, India’s largest power producer, is targeting 60GW renewable capacity by 2032. The company recently listed NTPC Green Energy Ltd (NGEL) to accelerate green hydrogen, methanol, and SAF investments. In January, PM Narendra Modi laid the foundation for India’s first green hydrogen hub in Andhra Pradesh, part of a ₹1.85 trillion investment plan under the National Green Hydrogen Mission.
RBI Eases Withdrawal Limits for New India Cooperative Bank
The RBI has allowed depositors of New India Cooperative Bank to withdraw up to ₹25,000 per account after dissolving its board over supervisory concerns. More than 50% of depositors can now withdraw their full balances, while others can access up to ₹25,000 via branches and ATMs from February 27, 2025. The bank held ₹2,436.4 crore in deposits as of March 2024, with a declining loan book and capital adequacy ratio (9.1%) below the required 10% for two years. RBI assured depositors it is closely monitoring the situation and taking necessary measures. -
It's Monday, February 24th, 2025. This is Nelson John, let's get started.
IndoBevs Bets Big on Innovation
IndoBevs, the maker of Bro Code wine coolers, aims to double its revenue to ₹700 crore by FY26. The company is banking on innovation, launching a herbal liqueur, Bonga Bonga, made with 40 herbs and botanicals, along with new whisky brands. IndoBevs, which started as a distributor in 2007, now has 15 in-house brands and exports to the UAE. It’s expanding whisky offerings with Enso, a Japanese whisky bottled locally, and Wingman, a premium blended malt launching in March 2025. With India’s alcohol market growing at 3.5% annually, IndoBevs is ramping up production, eyeing 2.5 million cases in sales by FY27.
Buffett’s Record Cash Pile Sparks Speculation
Warren Buffett’s Berkshire Hathaway hit a record $334.2 billion in cash reserves by 2024, marking 10 straight quarters of growth. While some wonder if Buffett is struggling to find good deals, he remains patient, selling stocks like Apple amid high valuations. The firm has also paused stock buybacks, letting its cash earn billions in interest. Some see this as preparation for Greg Abel’s succession, but shareholders remain confident, hoping for a major investment. Buffett reassured investors that equities remain the firm’s priority, even as Berkshire’s publicly traded holdings dropped from $354 billion to $272 billion last year, while its private businesses gained value.
Agentic AI: The Next Big Bet for Indian VCs
Indian venture capitalists are betting on Agentic AI, a self-learning technology that automates tasks with minimal human input. Unlike generative AI, which needs human prompts, Agentic AI adapts independently, making it attractive for industries like healthcare and finance. Startups like Innovaccer, CoRover.ai, and Atomicwork are leading the charge, backed by investors like Accel and Peak XV. The market is projected to grow from $5.1 billion today to $47.1 billion by 2030. While concerns remain over AI errors limiting adoption, businesses are increasingly shifting budgets toward automation, making AI agents a potential game-changer in enterprise operations.
Indian Bank CEO’s Bold Shift to MSMEs
One month into his tenure, Indian Bank CEO Binod Kumar is refocusing the lender’s strategy—expanding MSME loans while scaling back personal lending. He aims to increase MSME loans from 17% to 20% of the bank’s ₹5.2 trillion loan book in the next 2-3 years, boosting overall yield, which stood at 8.92% in Q3. While agriculture and retail loans have traditionally dominated, MSME loan growth picked up to 8.2% in Q3 from 7% a year earlier, while personal loan growth plunged 14%. The bank is prioritizing home and auto loans, with auto lending surging 48% YoY. Analysts see this as a smart risk-management move, reflected in Indian Bank’s improved net NPA ratio of 0.21%. Kumar projects 11-13% credit growth in FY25, with a continued push toward high-yielding MSME loans.
India’s Green Hydrogen Ambitions
India is well-positioned to lead in green hydrogen, but high production costs remain a challenge. Sushil Purohit, CEO of Gentari, says round-the-clock renewable power is key to making hydrogen competitive. With costs currently at $5/kg, adoption has been slow, despite government incentives. However, Gentari sees massive potential, given India’s abundant renewable resources and policy support. The company is developing 200 kilotonnes per annum of green hydrogen projects and holds a stake in AM Green, which aims to produce 5 million tonnes of green ammonia annually by 2030. With 6 GW of renewable energy capacity in India, Gentari is also setting up a 650 MW round-the-clock green power project to support ammonia production. As costs drop, India’s hydrogen economy could take off, reshaping industries like steel, refining, and shipping. -
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business.
It's Friday, February 21st, 2025. This is Nelson John, let's get started.
Your daily cup of coffee is set to become more expensive. Global coffee prices have surged due to supply shortages in major producing countries like Brazil and Vietnam. Brazil faces its worst drought in over four decades, severely impacting coffee yields. Similarly, Vietnam has been hit by typhoons and erratic rainfall, disrupting harvests and lowering bean quality. These challenges have pushed Robusta futures to a record high of $5,849 per tonne, with Arabica prices rising about 70% in 2024. In India, coffee consumption is steadily rising, making price hikes more impactful than ever, reports Suneera Tandon. Specialty coffee chains like Blue Tokai have already increased prices and may implement further hikes. Packaged coffee brands are also feeling the squeeze, with the Indian Coffee Roasters’ Association announcing a ₹200 per kilo hike in powdered Arabica and Robusta. Major brands like Nestlé, which sells Nescafé, acknowledge the impact of skyrocketing coffee costs, with coffee prices up 75% year-on-year. While some chains strive to avoid passing the burden onto consumers, the sustained rise in global coffee prices makes it challenging to absorb the increased costs. As a result, your morning brew is likely to see a price increase in the near future.
Microsoft has unveiled Majorana 1, (MayoRANA) a breakthrough quantum chip that could bring industrial-scale quantum computing within years, not decades. Built with an innovative material called a topoconductor, this chip is designed to scale up to a million qubits on a single processor—potentially transforming computing as we know it. Unlike classical computers, which process information in binary (0s and 1s), quantum computers leverage qubits, which can exist in multiple states at once. This enables them to perform complex calculations exponentially faster, with potential applications in AI, financial modeling, drug discovery, and climate research. Microsoft’s approach relies on Majorana particles, a unique type of theoretical particle that could make quantum computing more stable and scalable. While tech giants like Google and IBM have also made strides in quantum computing, Microsoft’s announcement signals that commercial quantum applications could be closer than anticipated. With this breakthrough, the race to harness quantum power is accelerating, bringing us one step closer to solving problems beyond the reach of today’s computers.
When switching jobs, you probably focus on transferring or withdrawing your provident fund (PF), assuming all your savings are covered. But what if part of your money was stuck—unclaimed and inaccessible? That’s what happened to Mr. A. While he successfully withdrew his PF, his Employees’ Pension Scheme (EPS) contributions remained unmerged. Without linking past EPS accounts, his withdrawal request was denied. Unlike PF, EPS doesn’t transfer automatically—it requires an extra step that many employees overlook. Here’s the rule: Employers contribute 8.33% of your salary to EPS. If you’ve worked with both private PF trusts (exempt) and EPFO-managed (non-exempt) employers, your pension funds could be scattered. To withdraw or claim benefits, EPS must be transferred and merged. If you’ve worked for less than 10 years, you can withdraw your EPS—but only if it’s properly linked. Cross the 10-year mark, and withdrawal isn’t an option. Instead, you’ll need a pension scheme certificate to claim benefits at retirement. To avoid complications, always transfer EPS when changing jobs. Staying proactive ensures you don’t lose your hard-earned pension savings! Read Aparajita Sharma’s detailed report on this in today’s Mint Money. -
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, February 10, 2025. This is Nelson John, let's get started.
Air traffic is booming in India. Manufacturers are actively seeking deals at the Aero India exhibition, highlighting the country's potential. The International Air Transport Association (IATA) is set to hold its annual general meeting in June in New Delhi, a testament to India's growing market influence.
According to Airbus India's Remi Maillard, “ India is now the third-largest air market globally, after the U.S. and China”. Boeing's Salil Gupte echoed this sentiment, calling India the most dynamic and exciting market. The civil aviation ministry claims a meteoric rise in the sector, with traffic growth projected over seven percent annually until 2043.
Although rail travel remains popular, it's often slow and chaotic. Boeing estimates that converting just two percent of daily train users to air travel could double the air market, given the current low per capita air travel of 0.12 compared to 0.46 in China.
Going by these statistics, the Indian market will need at least 2,835 new aircraft in the next 20 years, and all major players like Indigo, Airbus and Air India are gunning for the Next big leap in the airline sector.
Ola Electric will need to consistently sell 50,000 units every month in order to achieve profitability, says founder and chief executive officer (CEO) Bhavish Aggarwal.
To be sure, Ola Electric has faced considerable criticism due to widespread customer complaints about poor service centre experience. In September last year, Mint reported that Ola’s service centre backlogs had risen to 80,000 customer complaints per month.
Speaking to an analyst, Aggarwal claimed that the company had recaptured its market leadership in terms of volumes with 25,000 units sold in January.
The company has consistently been under pressure, with Ola Electric’s shares losing about 2% on Friday alone to settle at ₹70 apiece on the BSE—only 8% off its all-time low. The company has suffered a quarterly net loss of ₹564 crore in the last quarter of 2024.
Aggarwal, however, claimed that the company “maintained a steady industry leadership with a market share of over 25%.”
The recent deportation of 104 illegal migrants to India by the US government has sparked controversy in the Indian Parliament. In the midst of this debate, Prime Minister Narendra Modi is scheduled to visit the United States from February 12 to 13, where he will engage in discussions with President Donald Trump, as quoted by Indian Foreign Secretary Vikram Misri.
Earlier, on January 27, President Trump and Prime Minister Modi held a conversation focused on immigration matters and the importance of India purchasing more American-made security equipment.
The United States is India's largest trading partner, with two-way trade surpassing $118 billion in 2023/24, and India recording a trade surplus of $32 billion.
As a strategic partner of the United States, India will aim to enhance trade relations, simplify access to skilled worker visas and review import tariffs on over 30 items, including luxury cars, and solar cells, potentially boosting imports from the US amid rising global trade tensions.
4)
The Reserve Bank of India's monetary policy committee (MPC) on Friday cut the key policy interest rate by 25 basis points to 6.25% to support growth. At a post-policy press conference, new RBI governor Sanjay Malhotra spoke on a range of issues such as implementation of the proposed guidelines on liquidity coverage ratio (LCR), working with the government on various recommendations, geopolitical developments, and the cost of policy actions on regulated entities.
It is not only about stability, the implementation of LCR norms comes at a cost. It requires a strict impact analysis and enough time to be implemented.
While the Rupee depreciation puts pressure on inflation, a higher worry is how global uncertainties would pan out.
5)
Religare Enterprises Ltd chairperson Rashmi Saluja informed shareholders at the company's annual general meeting (AGM) on Friday that she was not retiring as a director, a move that stumped shareholders and proxy advisory firms. However, a third of Religare's investors told Mint that they had voted against Saluja’s reappointment as director. Manendra Singh, partner at law firm Economic Laws Practice revealed that "Under the Companies Act, 2013, the chairman can regulate the manner in which voting is conducted, but cannot take away the voting rights of its members.” The Burman family, which owns a little over 25% of Religare, got approvals from all regulatory agencies and offered to buy up to 26% shares from minority investors via an open offer that opened on 27 January. Following the hearing on Gaekwad's appeal, the Supreme Court said the Burmans' open offer cannot be closed until the Sebi decides on the legality of Gaekwad's competing offer. -
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, February 7, 2025. This is Nelson John, let's get started.
State Bank of India (SBI) posted a net profit of ₹16,891 crore for Q3 FY25, an 84.3% year-on-year surge. Chairman C.S. Setty highlighted a pickup in private capital expenditure, though sectors like steel remain sluggish, report Anshika Kayastha and Gopika Gopakumar. Despite these headwinds, SBI's corporate loan pipeline remains solid, with ₹4.8 trillion in sanctioned or under-process loans as of December-end. Setty is confident about meeting the bank’s 14-16% credit growth target for FY25, supported by budget measures aimed at boosting disposable income and consumption, which are expected to fuel credit demand.
Global private equity giant Blackstone is exploring a potential sale of its majority stake in Bengaluru-based digital learning platform Simplilearn, report Mansi Verma and Sneha Shah. This comes more than three years after its initial $250 million investment. A Simplilearn spokesperson, however, has denied any plans for an exit or the appointment of investment bankers.Since acquiring over 60% of Simplilearn in 2021, Blackstone has seen the company recalibrate its strategy amid a broader slowdown in the edtech sector. Once focused on rapid expansion, Simplilearn has pivoted toward profitability, cutting its FY24 Ebitda losses by 75% by discontinuing select programs and doubling down on core offerings. This shift reflects the broader challenges in edtech, where reduced funding and the return of physical classes post-COVID have pushed many firms to prioritize sustainability over aggressive growth.
Employees expecting bigger pay hikes this year may be in for a disappointment, as salary increments are set to be lower than last year’s, which were already the smallest in nearly a decade. Consultants and firms Devina Sengupta and Samiksha Goel spoke to cited slower corporate earnings and economic growth as key reasons for tighter budgets and more conservative raises. According to Aon's Annual Salary Increase and Turnover Survey 2023-24, the average salary hike stood at 9.3% in 2024, down from 9.7% in 2023. The outlook for 2025 is even softer, with Mercer forecasting an average increase of 9.4%, a sharp decline from the peak of 10.6% in 2022. With companies shifting focus from aggressive hiring to retaining top talent, some are offering unique perks—such as exclusive credit cards—to keep key employees engaged. However, only a select group of high performers is likely to see significant pay bumps.
In a high-profile insider trading case, the Securities and Exchange Board of India (Sebi) has barred two former IT executives, Keyur Maniar and Ramit Chaudhri, from the securities market for a year. Maniar, a former senior vice president at Wipro, and Chaudhri, previously with Infosys, were found guilty of trading on confidential information about Infosys’ $1.89 billion deal with Vanguard before its public announcement on July 14, 2020. Sebi’s investigation revealed that Chaudhri shared details of the deal with Maniar, who then made ₹2.6 crore in profits from trading Infosys shares. The regulator’s surveillance system flagged unusual trading activity around the announcement, leading to a probe that confirmed the misuse of unpublished price-sensitive information. Jas Bardia and Varun Sood take a deep dive into the Sebi probe and how the case unfolded.
Recent hits like Singham Again, Animal, and Bhool Bhulaiyaa 3 reveal a trend where most box office earnings are concentrated in the first week of release. Over 60% of a film's total revenue often comes within its opening days, signalling a shift towards shorter theatre runs. Lata Jha speaks with Rahul Puri of Mukta Arts, who notes that films now face immense pressure to perform immediately, especially with the quick transition to streaming platforms. For movies relying on word-of-mouth to gain traction, this presents a unique challenge. Devang Sampat from Cinepolis India emphasizes that while the opening weekend is key, sustaining positive reviews is crucial for a film’s long-term success. -
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, February 6, 2025. This is Nelson John, let's get started.
In January, Prime Minister Modi introduced Mission Mausam, a significant climate forecasting initiative, receiving ₹1,329 crore in funding for FY26. But is this sufficient? Soumya Gupta explores. The mission, overseen by the Ministry of Earth Sciences, aims to enhance India's climate change predictions and track extreme weather with new technologies, including AI-enhanced models and advanced satellites. Initially funded with ₹2,000 crore, its budget includes ₹671 crore for FY25 and the remainder for FY26. India's climate strategy extends beyond Mission Mausam. The Ministry has integrated four programs into its PRITHVI scheme, focusing on climate research in critical regions like the Arctic and Himalayas, with a budget exceeding ₹2,500 crore through FY26. Overall, India plans to allocate over ₹50,000 crore in FY25 and nearly ₹62,000 crore in FY26 to combat climate change. Despite these investments, they account for just 1.2% of the total budget for FY26, far from the ₹57 trillion pledged through 2030 for comprehensive climate change measures.
OpenAI CEO Sam Altman advocates a full-stack approach for India's AI development, contrasting with his 2023 stance where he deemed competing in AI training as "hopeless." He discussed this shift in an interview with Hindustan Times’ editor-in-chief R Sukumar on Wednesday before reiterating his opinion at a discussion with IT minister Ashwini Vaishnaw the same morning. Altman points to a drastic cost reduction in AI, which now surpasses the rate predicted by Moore's Law, stating costs drop tenfold annually. This change supports more expansive AI initiatives, including foundational models which underpin technologies like ChatGPT. At his discussion with Altman later, IT minister Vaishnaw emphasized India's comprehensive strategy, from chip design to application development, drawing parallels to India's cost-effective space missions. He noted promising developments from six Indian entities poised to unveil foundational AI models within the year. In discussions with tech leaders and investors, Altman remarked on the immediate potential of AI to enhance scientific research and development significantly but tempered expectations about its current capabilities, such as curing diseases.
India's services sector saw its slowest growth in over two years this January, with the HSBC India Services Purchasing Managers' Index (PMI) reading dropping to 56.5 from December's 59.3, according to S&P Global. Despite this slowdown, the sector remains in expansion territory, above the 50-point mark that separates growth from contraction. Rhik Kundu reports that the dip is attributed to decreased customer numbers and a softer rise in sales and output. HSBC's chief India economist, Pranjul Bhandari, noted that both business activity and new business indices have not been this low since November 2022. However, the new export business has provided some cushion, reflecting a rebound in services exports as of December 2024. Simultaneously, India's manufacturing sector showed improvement, with the Manufacturing PMI climbing to a six-month high of 57.7 in January, driven by an increase in new export orders.
India is currently experiencing two rare events: the Maha Kumbh in Prayagraj, occurring once every 144 years, and an unexpectedly cheerful middle class following the Union Budget 2025-26. This year’s budget has infused ₹1 trillion into the economy via tax rebates to middle-income earners, marking a significant shift in fiscal policy that could ripple through the economy and the equity markets. Finance Minister Nirmala Sitharaman announced substantial tax breaks that not only increase disposable income but are set to initiate a beneficial economic cycle through the Marginal Propensity to Consume. For instance, an extra ₹50,000 in a taxpayer's pocket could lead to additional spending of ₹30,000, benefiting various sectors of the economy. This increased consumption is projected to generate an economic impact of ₹2.5 trillion, based on an MPC of 0.7, indicating a significant boost to economic activity. Abhishek Mukherjee takes a deep dive into how equity investors can ride the post-budget wave in today’s Long Story.
Two former SpiceJet pilots have petitioned the National Company Law Tribunal (NCLT) in Delhi to declare the airline bankrupt over ₹3 crore in unpaid dues. The pilots, Sameer Breja and Karan Gupta, claim SpiceJet didn't pay salary arrears and other dues since 2020, exacerbated by the pandemic-induced salary cuts and new payment terms tied to operational benchmarks not initially agreed upon. SpiceJet dismisses the claims as "baseless and frivolous," stating that settlements are complete pending documentation from the pilots, Dhirendra Kumar and Daanish Anand report. The NCLT suggested the plea might be a pressure tactic and adjourned the case without issuing a notice to the airline. -
Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, February 5, 2025. This is Nelson John, let's get started.
Despite India's solid track record of fiscal discipline and a narrowing fiscal deficit, international rating agencies like Moody's and Fitch remain cautious about upgrading India's sovereign rating. Currently, Fitch Ratings assigns India a 'BBB-' with a stable outlook, which is the lowest investment grade, suggesting good credit quality but vulnerability to adverse conditions. Similarly, Moody's and S&P rate India at 'Baa3' and 'BBB-', respectively. This contrasts with China's 'A+' and the US's 'AA+', indicating higher credit qualities and lower default risks. The hesitation to upgrade India’s rating affects the cost of borrowing and investment attractiveness, crucial for economic growth, N Madhavan reports. Critics, including UNCTAD, argue that international rating agencies may be biased against emerging economies. Despite significant growth, robust financial systems, and strong foreign investor interest, India's rating has remained unchanged for two decades.
India is set to develop its own AI chip, aiming to enhance its technological independence and global competitiveness. This initiative, led by the Ministry of Electronics and Information Technology in collaboration with the Centre for Development of Advanced Computing (C-Dac) and the National e-Governance Division, focuses on creating a chip using the open-source 'Risc-V' architecture. The goal is to support academic researchers and startups in building foundational AI models, Shouvik Das reports. High-level discussions have involved not only Indian experts but also US Big Tech firms and Taiwan's TSMC, to craft a chip fully made in India by 2027, leveraging local talents and resources. This move is part of a broader strategy under the India AI Mission, aiming to establish a domestic chip production capability that reduces reliance on foreign technology, particularly in light of recent geopolitical tensions and supply chain vulnerabilities highlighted by US restrictions.
Rashmi Saluja's tenure as chairperson at Religare Enterprises may be nearing an end amid a contentious takeover battle. Despite efforts to stabilize the company post-bankruptcy, about one-third of its investors have voted against her reappointment ahead of the upcoming AGM on February 7th. The Delhi High Court has also declined Saluja any interim relief to halt the AGM proceedings. Investors, including the Burman family who owns 25.1% of Religare, have expressed a desire for new management to steer the company towards growth. With 31.85% of shareholders, including financial firms and mutual funds, voting against her, Saluja’s reappointment seems unlikely unless there is an unexpectedly high turnout in her favour from smaller shareholders.
The National Medical Commission (NMC) is gearing up to elevate India's postgraduate medical education to global standards by forming Specialty Expert Committees (SEC) for each speciality. Priyanka Sharma spoke to Dr B. Srinivas, secretary at the NMC, who said that these committees will develop model curriculums, assess educational institutions, and address academic needs, aiming to standardize and improve the quality of speciality courses across the country. This initiative, highlighted in a letter to medical colleges reviewed by Mint, also involves these expert committees in handling student grievances and other speciality-specific requirements. The NMC has called for nominations of faculty members ready to join this effort, with a deadline for submissions set for within 15 days. The move comes as part of a broader effort to address the disproportionate doctor-patient ratios in India by boosting both graduate and postgraduate medical manpower.
Wingify, started in 2009 in Delhi, has grown significantly, boasting a global customer base and robust revenue growth, reaching ₹288.61 crore in 2023-24. This bootstrapped startup's success caught private equity firm Everstone's eye, especially Wingify’s self-sufficient growth and strong technology base. This acquisition aligns with Everstone’s focus on technology-driven firms, following a similar investment in MediaMint, Shadma Shaikh reports. The deal not only marks a significant phase for Wingify but also stands out as a successful bootstrapped venture in the SaaS space, showcasing that startups can achieve substantial growth without external funding. This event is seen as a boost for the Indian SaaS ecosystem, reflecting a mature, profitable company making a significant impact globally. - Laat meer zien
