Afleveringen
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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, June 6, 2024. My name is Nelson John. Let's get started:
After suffering the worst crash in four years, the Indian equity markets bounced back yesterday to recoup some losses recorded on Tuesday. Nifty and Sensex rose around 3.2% each.
The last three have been a roller coaster for investors. Why have they been reactionary and jittery? Ram Sahgal has the answer: BJP being unable to secure a simple majority on its own has spooked investors. They feel that the new NDA government will have to resort to populist measures in order to effect some damage control. This could potentially delay major infrastructure projects like new airports or bullet trains, making market participants unhappy. Ram explains that future market movements will likely be based on which politician gets which ministry in the new government.
Like the broader market, Tech Mahindra too rose more than two percent yesterday. But a broader look at its share price and financials would have any investor worried. The IT company's net profit crashed by more than 40%, while revenue declined too. While the overall picture for the IT sector looks grim, Tech Mahindra, in particular, seems to have borne the worst of it. Still, it's not a small company with a total revenue of more than $6 billion. But for Mohit Joshi, this situation provides an opportunity. Joshi took the reins of the company in December 2023. He wants to transform Tech Mahindra into an upper-tier IT company that competes with TCS and Infosys. As Shelley Singh outlines, this is easier said than done. Joshi has his work cut out for him, but the only way for Tech Mahindra is up.
One of the main issues in this year's general elections was jobs — or the lack thereof. Creating new jobs should be a central focus of the new government. Devina Sengupta writes that two-thirds of Indian citizens are now under 35 years old. This statistic means that the ongoing job crunch will only worsen as more of India comes of working age. Analysts told Devina that the focus needs to be on higher-paying jobs and getting small and medium businesses to hire employees on a larger scale. Tier 2 and beyond cities especially have immense scope to create and localise jobs, they added. Lastly, a concerted effort needs to be made in the labour market, which is dominated by migrant workers. It's a tough task ahead that will almost immediately assume importance for the new government.
If you've been in the market for earphones, it's tough to look past Boat. The electronics company, which started with audio and then moved into wearables, provides a tonne of cheap options for earphones, speakers, and smartwatches. As Sowmya Ramasubramanian and Samiksha Goel write, the company transformed the domestic market for wearables by unleashing an affordable range of products. But now, you have plenty of other options in the same segment, lowering Boat's market share. Now, the company plans to reset its focus to audio, a segment providing 80 percent of its revenue. It's going to take a step back in the wearables segment to assess its options, according to Sowmya and Samiksha's report.
For the longest time, a small car in India usually meant a Maruti Suzuki. The 800, Alto, Zen, Swift, Wagon R... the list goes on. But the winds of change have reached the country's biggest carmaker. Alisha Sachdev reports that Maruti Suzuki will now shift its focus to bigger cars. There's a very good reason for this: every other car sold today in India is an SUV. Maruti wants to strengthen its presence in the SUV, EV, and hybrid segments moving forward. This will also see Maruti dip out of sedans too, a segment where it's only been selling the Ciaz and the market-leading Swift Dzire.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Why markets will remain volatile until the new govt is formed
Can Mohit Joshi catapult Tech Mahindra into the big league of Indian IT?
New government must focus on jobs, get more women to join labour force
boAt helped make smartwatches affordable for Indians. That’s now come to bite it
Maruti Suzuki begins portfolio revamp strategy
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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, June 5, 2024. My name is Nelson John. Let's get started:
The people have spoken. Results of the 2024 General Election are here, and the Bharatiya Janata Party-led National Democratic Alliance is set to form the government at the Centre. This time, however, no single party got an absolute majority. Far from the centre’s seat of power in Delhi, Dalal Street in Mumbai saw a milestone day. The last two days have been a rollercoaster ride for the Indian markets. The markets, which were soaring a day before results - on the back of a strong comeback predicted for the BJP by pollsters - saw a day of bloodbath on Tuesday. Investors lost more than ₹31 trillion on Tuesday as benchmark indices plunged. Both Nifty and Sensex saw a fall of close to 6 per cent - the biggest since the first pandemic-induced lockdown was announced on March 23 2020. Mint’s markets correspondent Ram Sahgal reports on the biggest market crash in four years.
Coalition politics is back. A decade after the BJP won a majority on its own for the first time, NDA - the coalition led by it, is seeing a comeback to power. Narendra Modi is set to become the Prime Minister for a third straight term. While the NDA’s tally of about 290 is nowhere close to the government’s call for “400 paar”, the coalition made a dent in key southern states. The BJP finally breached Kerala, winning one seat in the state. In Tamil Nadu, the BJP failed to open its account but saw its vote share rise to 11% from earlier 3.7%. The opposition INDIA bloc is likely to secure 234 seats led by the Indian National Congress, which has nearly doubled its strength in Parliament to 99 seats. The crown jewel of the BJP’s electoral victories in the past - Uttar Pradesh - favoured the opposition alliance over the BJP. The Congress and the Samajwadi Party-led INDIA bloc outnumbered the NDA by 43 to 33. Modi’s BJP also broke into new territories in the east - notably Odisha, where it not only swept the Lok Sabha election but also closed in on a majority in the state assembly. The results also imply that Modi will now have to rely on his allies - mainly TDP’s Chandrababu Naidu and JDU’s Nitish Kumar - for a stable government at the centre. Mint’s Sayantan Bera and N Madhavan report on the results of the world’s largest election.
N Madhavan also explains the verdict of 2024 in today’s Mint Primer. From a setback for the BJP in the heartland states of Rajasthan and Uttar Pradesh, to the return of regional parties, the 2024 verdict was full of surprises. Despite holding 206 public meetings and rallies over the course of the last 45 days, it became evident that Modi’s magic too has its limits. The Lok Sabha will also boast of a stronger Opposition - something that was missing for a decade. Another insight from the verdict is how inaccurate exit polls can be. Most of the pollsters missed the mark massively this election.
As the BJP-led NDA appears set to continue its tenure with a reduced majority, industries across India are looking forward to policy stability and the extension of current incentives. The technology sector is particularly focused on advancing India's semiconductor capabilities, enhancing AI regulation, and implementing crucial digital laws such as the Digital Personal Data Protection Act and the upcoming Digital India Bill. Meanwhile, the telecom sector anticipates the enactment of new rules under the forthcoming telecom bill, along with potential tariff revisions. The aviation industry hopes for the establishment of global aviation hubs, and a reduction in jet fuel taxes to improve operational economics. There's also a significant focus on incentives for electric vehicles and regulations affecting fuel economy and emissions, which are crucial for the road transport sector. Gulveen Aulakh takes a look at the expectations of major industrial sectors from the upcoming government at the centre.
Yesterday's results had one outstanding result: that the BJP would not be able to form a government on its own. We invited Surjit Bhalla, economist and author, to opine on this historic result. Bhalla writes that no exit poll got this election right — especially the rise of the INDIA coalition. UP, West Bengal, and Maharashtra stood out for the new age coalition group. Bhalla also writes that the lower turnout could have hampered the NDA's chances at a greater majority. Lastly, he writes that this election is a victory for many stakeholders, but none bigger than the one for the average Indian voter, who has made their voice resonant.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Slender win for NDA queers pitch for street, investors lose ₹31 trillion
INDIA heat wilts lotus, coalition saves the day
Mint Primer: The 2024 verdict in three minutes
Mint Explainer: What major industries expect from the next government
Failure has many mothers: The Indian voter gets it right again
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Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, June 4, 2024. My name is Nelson John. Let's get started:
The markets surged on Monday, after every exit poll predicted the BJP to come back to power. Nifty was up 3.25 percent, while Sensex surged by 3.39 percent. Experts told Ram Sahgal and Dipti Sharma that the markets could still zoom by 2 to 3 percent today if the BJP wins 400 or more seats. However, some of them advised caution: this sudden uptick could mostly be attributed to the election resultsn, but the highs may not last too long if investors start quickly booking their profits later in the week.
While the stock market is already seeing a huge push, what about India's economy? The world's fastest growing economy needs some energy to sustain the run it is on. N. Madhavan writes that a third term with a stable government at the helm can bring about policy changes and unleash new reforms that could accelerate India's growth. While the infamous GST has finally settled into India's economic framework more than seven years after it was introduced, other areas like labour, land, and agriculture need to be relooked at by the next government.
It's simple enough to say that the next government "has to fix the economy". It's a broad target, and one that is understandably difficult to achieve. Our partners at howindialives.com list out some other challenges that need fixing: joblessness, private capital expenditure, and exports to name a few. Along with these ideas, they add some charts to show the potential that India has in excelling in these fields, but there's still work to be done. In particular, this story notes that a determined government could help India and its economy reach its full potential.
It's time to say good bye to Vistara: by the end of 2024, the Tata Group plans on shuttering the Vistara brand. Anu Sharma reports that the Tatas plan on starting 2025 with just two main brands: Air India, and Air India Express, its low-cost counterpart. After a lengthy process, the Tata Group won the ownership of Air India in 2022 — welcoming the airline it had first started. It had planned to integrate all three of its brands: Air India, Vistara, and Air Asia into a simplified version, which will now just have Air India and AI Express in around 8 months.
Conducting the world's biggest exercise in democracy is not a simple feat. The polling, which lasted for 7 phases across 44 days, finally came to an end last week. But the preparation for these 44 days begins months in advance. Krishna Yadav presents an on-ground report on how difficult it is to organise such a humongous activity for millions of voters across the length and breadth of India. He travels from Delhi to Himachal Pradesh, and speaks to prior and current officials in charge of making sure that every India can try and cast their vote. From security to routes to the voting ink, read this story for a great overview of how difficult the entire process is.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
That’s all for today. Thank you for listening.
Show notes:
Market to take cues from surprises to exit poll results
Will the poll give India’s economy another boost?
The five big economic challenges before the new government
Air India to operate as merged entity from 2025; no Vistara brand by year-end
How Election Commission orchestrated the ‘big fat Indian wedding’
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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, June 3, 2024. My name is Nelson John. Let's get started:
2024’s marathon seven-phase elections finally came to an end on Saturday, with voters across 57 constituencies exercising their democratic rights. In just 24 hours, elections officers across the country will start counting votes that will decide the future of India. The pollsters, however, have already spoken. Almost all of the exit polls predicted a sweeping victory for the BJP-led National Democratic Alliance , and along with a third term for Prime Minister Narendra Modi. Buoyed by the poll predictions, market experts expect Nifty to surge by 2.5-3% when markets open today. This expectation is leading to a scramble among foreign institutional investors and proprietary traders to cover short positions, anticipating the NDA securing well over the expected 300-310 seats. Exit polls predict around 350 seats for the NDA, with some forecasts even suggesting as many as 400 seats. This is likely to boost market sentiment as it solidifies expectations of continued policy and fiscal stability. Mint’s markets correspondents Ram Sahgal and Dipti Sharma report the bullish sentiment among traders on D-street on the eve of election results.
Artificial intelligence systems, often compared to "black boxes," work in complex ways that are hard to explain. Like the human brain, they process information through multiple layers but, unlike humans, their decision-making paths are not easily traceable. This makes it difficult to understand why an AI makes certain choices, such as a self-driving car failing to stop for a pedestrian. To address these challenges, the field of explainable AI or XAI aims to make AI decisions more transparent and understandable. Mint’s senior editor Leslie D’monte explains the emergence of this new field, which involves developing methods to clarify AI processes, auditing these decisions, and implementing regulatory measures to ensure accountability. Companies like Google, Microsoft, and IBM, alongside research institutions and government bodies, are actively working on XAI technologies.
India's external debt, at 18% of its GDP, is relatively low among G20 countries, as pointed out by Finance Minister Nirmala Sitharaman. However, to fully understand what India owes to other countries, it's better to look at the International Investment Position, which covers all foreign financial assets and liabilities. This includes the country's reserves and any domestic assets owned by foreigners, such as investments and loans. India's net international investment position is negative, meaning the country owes more to the rest of the world than it owns in foreign assets. This debt increased from 60 billion dollars in 2003 to 396 billion dollars in 2023, rising from 9.9% to 11.1% of its GDP. This status places India among countries that owe more internationally than they possess, writes Deepa Vasudevan.
In India, the services sector is taking the lead when it comes to starting new businesses. Out of nearly 16,000 firms that popped up in April, 72% were in services, while manufacturing tagged along at 15%. That’s what the latest data from the Ministry of Corporate Affairs tells us. This isn't just a one-off thing; services have been dominating the new business scene for a while. As of April this year, 65% of all active companies in India were in the services sector. That's a jump from 61% back in 2015. Throughout the last financial year, the services sector consistently claimed 70-72% of all new business registrations each month, dipping slightly to 69% in April 2023. So, what kind of services are we talking about? Well, it's a broad mix—everything from schools and hospitals to fitness centers and professional associations. Mint’s senior editor Gireesh Chandra Prasad reports these numbers.
India’s savings landscape is seeing a potential shift, claim economic analysts. After years of decline, financial savings—like cash, bank deposits, and investments—might actually be on the rise. In 2011-12, these savings were 7.4% of our GDP, but by 2022-23, they dropped to 5.3%. Now, Goldman Sachs and Crisil suggest we might see these savings bump up to 6% of GDP for 2023-24. What's driving this? Even though our economy grew by 8.2% last year, it looks like households might be tightening their belts, possibly boosting their savings as private consumption cools down. But what does this mean for the economy? Normally, if folks are saving rather than spending, it's not great news for economic vibrancy. However, these savings do provide essential funds for businesses to invest and grow, so it’s not all doom and gloom.
Looking at the broader picture, India’s total savings rate, which combines savings from households, businesses, and the government, dipped from about 35% of GDP in 2011-12 to 30% by 2022-23. But for the current fiscal year, it's expected to inch up slightly above 31%. The drop over the past decade is mainly due to a decline in household savings, which fell from about 24% of GDP to 18%. This Long Story by howindialives.com takes a deep dive into the rise in India’s savings, and whether it is a sustainable rise.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Markets likely to open higher as exit polls signal sweep for NDA
Will decoding AI ‘black boxes’ make AI models safer?
India can cheer its low debt, but here’s the catch
At 72%, service sector dominates new business registrations in April
Indians may have saved more in FY24. Is the rise sustainable?
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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, May 31, 2024. My name is Nelson John. Let's get started:
It's been a rough week for stockholders: the Indian equity markets fell slightly again on Thursday. Nifty was down by 0.95 percent, while Sensex dropped 0.83 percent.
The Reserve Bank of India released its annual report yesterday. It said that despite challenges, India is set to grow faster and stronger over the next decade. RBI noted the resilience of the Indian economy in the face of multiple external factors, including geopolitical tensions and risks due to climate change. Shayan Ghosh and Gopika Gopakumar write that another challenge that the RBI specifically pointed out was the rapid development of artificial intelligence, as opposed to being treated as an opportunity. Interestingly, a deficient monsoon meant that India had to over rely on manufacturing and services sectors to power its 7.6 percent growth last year.
Thierry Delaporte's time as the CEO of Wipro was a rocky one. He was set to be at Wipro's helm for five years, but could barely eke out 14 months. Despite the short stint, he became one of the richest executives in India's IT sector. When Delaporte was asked to resign by Wipro chairman Rishad Premji, he was told he could have a hefty severance — 4.33 million dollars, or 36 crore rupees. However, public investors weren't too thrilled at such an expensive severance package: Varun Sood reports that more than 75 percent of investors voted against it. However, strong promoter holding meant that Premji could guarantee Delaporte his exit pay. It's a rare dispute between investors and the management in a company as well managed as Wipro, Varun writes.
It's not been a good year for MBA students: a Deloitte report said that campus placement budgets for business graduates had fallen by 33 percent. This is the first time companies have reduced their budgets for freshers. Even top engineering colleges have failed to attract recruiters this past placement season. Devina Sengupta writes that a global economic slowdown has affected foreign companies hiring Indian graduates, while other companies are looking for hires that require minimal training. It's a dim job market out there.
Chinese EV makers were hoping to expand across the globe, but the options are dwindling. First, the European Union planned to increase their import duties to around 25 to 30 percent on these vehicles. Next, the US said it would increase the taxes to 100 percent of the car's value. And now, the next most viable foreign market, India, might soon lose out too: the central government is ramping up its efforts to monitor the dumping of Chinese EVs in India. Dhirendra Kumar reports that senior government officials are worried that after being shunned from the western markets, these automakers will fill the Indian market with cheap electric cars. Officials are considering raising the import duties on electric engines, or imposing stringent quality checks to protect Indian car makers, reports Dhirendra.
At one point, old age homes were the only available option for senior citizens. But today, we have independent senior living — an arrangement where retirees stay alone, with services such as meals and health checkups provided regularly. By 2050, India will be home to more than 17 percent of the world's elderly population. That provides a huge market for senior living, but at the moment, it's a luxury that only the affluent can afford. Madhurima Nandy takes a deep dive into this industry, and writes about the present situation, the opportunities, and the challenges for senior living to become a viable part of India's booming real estate market.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
India poised for stronger growth over next decade amid AI, climate risks: RBI
Wipro’s public investors baulk at ₹36-crore severance to Delaporte
B-school grad? You may be paid less this year
Govt steps up vigilance against Chinese EV battery
In Indian real estate, senior living is still in the junior league
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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, May 30, 2024. My name is Nelson John. Let's get started:
Indian benchmark indices closed in the red for the fourth straight session on Wednesday. BSE’s Sensex closed 0.89 percent below its previous close, while NSE’s Nifty was down 0.8 percent.
Delhi hit a blistering 52.3 degrees Celsius on Wednesday, marking its hottest day in history. The scorching summer sun has been draining the energy of Delhiites. Earth sciences minister Kiren Rijuju later said this was “not official yet” and described such a high temperature as “very unlikely” while asking the weather office to verify the report. Unfortunately, it is not just the people of Delhi-NCR who are suffering; the entire country is grappling with a nearly violent heatwave. Moreover, heatwaves are becoming more prolonged and intense. So, what causes a heatwave? Experts attribute this to two factors: One is El Nino, the infamous weather phenomenon frequently in the spotlight, and the second is the presence of high-pressure areas over southern peninsular India. Mint’s senior editor, N Madhavan, examines the long-drawn heatwaves and the reasons behind their
increasing duration in today’s Mint Primer.
In the world of stock trading, it’s crunch time, much like the final overs of a gripping cricket match. As India nears the end of its Lok Sabha elections, with the last votes being cast this Saturday and exit polls expected the same evening, investors are on the edge. Recently, there's been a notable shift in the stock market, particularly among retail and high-net-worth investors. These individuals, often referred to as the 'Client' category by the NSE, have traditionally been savvy, sometimes even outguessing foreign institutional investors (FIIs) in predicting market trends. However, in a striking move, they’ve significantly scaled back their bullish positions on Nifty and Bank Nifty futures. Conversely, foreign investors, who were net bearish in mid-May, flipped their stance to net bullish by the end of the month. This shift suggests a mix of caution and repositioning as everyone braces for the election results. Mint’s markets correspondent Ram Sahgal spoke to experts who pointed out that the market is playing between a position of optimism and caution.
The 'None of the Above' (NOTA) option in Indian elections hasn't quite stirred the political pot as some might have hoped. Despite being around for a decade and touted as a tool for voter dissent, its impact has been minimal. In the last couple of Lok Sabha elections, barely 1% of voters chose NOTA. It has gained slightly more traction in places like Bihar and Odisha, particularly in tribal areas, but it’s still not causing major ripples.
To break it down: in both the 2014 and 2019 elections, the majority of the 543 Lok Sabha seats saw less than 1% of voters picking NOTA. About a third of the seats saw slightly higher engagement, with 1-2% opting for it, but only a very few seats saw it cross the 4% threshold. Interestingly, its popularity dipped in 2019. Mint’s senior assistant editor Niti Kiran takes a closer look at the impact of the NOTA option on India’s elections.
Chart links:
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The United States is preparing to discuss a preferential trade agreement with India, according to U.S. Ambassador Eric Garcetti. In an interview with Mint’s Gireesh Chandra Prasad, the former mayor of Los Angeles indicated that while Washington isn't exactly eager to sign free trade agreements, it is open to exploring trade opportunities focused on specific products or sectors. This move aligns with the two nations' ambitious goal to double their trade to $500 billion by the end of the decade. Relations between the two countries have been improving, highlighted by the resolution of six trade disputes last June. Following this, India reduced customs duties on several U.S. goods, including apples and almonds.
Last year, Amazon called off its deal to buy MX Player, a video platform owned by Times Internet. Now, after almost a year of back-and-forth, the e-commerce giant is back at the negotiating table with Times Internet, reports Mint’s Gaurav Laghate. Initially, Amazon valued MX Player at about $60 million, while Times Internet was seeking over $100 million. Fast forward to now, and MX Player's situation has worsened. Its valuation has dropped further due to financial struggles, including a substantial debt of about ₹2,500 crore (roughly $300 million). While Amazon remains interested, it has made it clear that it won't take on that debt.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Mint Primer | Into the 50s: Why heatwaves are hotter & longer
In a market segment with its ear to the ground, apprehension is rising
After two big polls, Nota remains a one-percenter
Washington ready to discuss preferential trade deal with India: US Ambassador
Amazon to buy MXPlayer from Times Internet
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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, May 29, 2024. My name is Nelson John. Let's get started:
The Indian equity markets fell slightly on Tuesday. Nifty was down by 0.19 percent, while the Sensex dropped by 0.29 percent.
We've got a pretty hot edition for you today: a lot of our top stories of the day have to do with the summer. Let's get into it.
The summers are here — and with it, comes enormous demand for power. Temperatures are a good indicator of the demand for electricity, but that can vary a lot for a given place — and even on the same day. 2024 is shaping up to be warmer than last year , which would mean that India's power demand will peak again at some point in the next few weeks. Can India keep up with this fluctuating demand? Our partners at How India Lives . com try and answer that in five succinct charts.
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The heatwave is also bad news for automakers. Fewer people are stepping out to escape the sun, and in turn, fewer prospective buyers are going to the showroom to look at cars. Sales in May are sharply down from the same period a year ago, reports Alisha Sachdev. But the heatwave isn't the only one at fault: the election cycle, as well as a lack of auspicious days are also to blame. To counter that, dealerships are offering widespread discounts and doorstep deliveries. If you're in the market for a new set of wheels, now might be the time to capitalise.
Despite a record harvest, wheat prices are still rising. Lower production due to untimely rains in some states has marred the distribution for wheat. This might push the Indian government to allow the import of wheat, which is currently banned. While currently wheat prices are fine, they might steadily but surely rise as there's less wheat stock in the market. Sayantan Bera explores the current predicament and the future outlook in this Mint Primer.
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For global media conglomerate Walt Disney, a particular piece of inheritance in India has turned into a white elephant. When Disney bought out 21st century Fox, it also received a 30 percent share of Tata's DTH company, Tata Play. However, sources told Gaurav Laghate that Disney wants nothing to do with this business. The Tata Group has refused to buy Disney out, and other buyers aren't interested either — further complicating the matter. The Tatas had hoped to IPO this company in at least three different instances, but decided against it. Tata Play has now become the strange DTH that nobody wants to play with.
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The Indian society isn't firmly patriarchal anymore: women now have various rights, and more importantly, cash in hand. Romita Datta's on-ground report from Kolkata during this election season proves that point. A host of women-centric schemes by the BJP government have made women in rural and semi-urban areas quite independent. More women are now registering as voters , and according to one research report from the State Bank of India, the 2029 national election will see more women voters than men. So, it's time for campaigns to focus on women now, as political parties see huge returns from them. The numbers make that clear too, Romita writes.
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We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Can India keep up with the ebbs and flows of power demand?
Heatwave cooks car sales in May, footfall stalls in car showrooms
Our daily bread’s getting hot. Can imports help?
The curious case of Disney’s 30% stake in Tata Play
Why political parties are breaking the bank to win over women voters
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Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, May 28, 2024. My name is Nelson John. Let's get started:
Indian benchmark equity indices touched their all-time highs intraday trading on Monday only to end the session on a muted note. The Sensex touched a new high of 76,009 points before climbing down and closing 0.03 per cent below its previous close. Similarly, the Nifty touched an all-time high of 23,110 points, only to close 0.11 per cent below its previous close.
As the Lok Sabha election reaches its final stretch, with the last phase of polling scheduled for this Saturday, Mint’s Plain Facts series on the government’s schemes brings an overview of the PM Awas Yojana (Gramin) - a rural housing scheme. Originally evolving from the Congress-era Indira Awaas Yojana, PMAY-G has targeted 60% of its homes for SC/ST families, managing to reach about 11.4 million households. Launched in 2016, the scheme covers roughly 22% of India's rural SC/ST population, according to the 2011 Socio-Economic Caste Census. One standout feature of PMAY-G is the substantial ownership by women, who individually or jointly own nearly 72% of the houses constructed under the scheme—a stark contrast to the national rate of 43%. However, despite these impressive numbers, the implementation of PMAY-G has been uneven. Most houses were constructed in a concentrated period from 2019 to 2021, with recent years showing a slowdown. Moreover, the financial model supporting PMAY-G involves substantial central funding and a significant reliance on unskilled labour from the rural job guarantee scheme. Click on the link in the show notes to see the charts and interactive maps prepared by Mint’s data team and senior editor Nandita Venkatesan.
Markets too are reacting to the final leg of the Lok Sabha election. Signs of restored investor confidence are emerging in the equity markets. The net value of marketwide options' open position saw a drastic reduction, from ₹4.96 trillion on May 7 to ₹91,149 crore by May 24, reflecting a shift in market sentiment. This decrease is significant as it indicates a wave of short covering. This means investors are unwinding their bets against the market. Mint’s markets correspondent Ram Sahgal spoke to market insiders and mutual fund executives who see this as an expectation of political continuity at the centre.
People for years have been getting intellectual property rights protected for their own innovations. Be it technological innovations or a brand symbol - IP or intellectual property rights cover all of them. However, recently, Bollywood bigwigs Jackie Shroff and Anil Kapoor won legal protections for their iconic phrases "bhidu" and "jhakaas," stirring quite the pot about creative freedom. Essentially, they've set a legal boundary that prevents anyone from using their catchphrases, or even their images and voices, without permission. This move is part of a trend where celebs are locking down their personal brand elements to control how they're used, especially in our digital world. Experts now warn that this aggressive enforcement of personality rights could stifle creative content and legitimate freedom of expression. Mint’s legal correspondent Krishna Yadav spoke to experts who pointed out that if celebrities push too hard on these rights, we might see a serious drop in the variety of creative content online. While there’s no specific law in India for personality rights, the courts recognize them under the right to privacy. And yes, celebs can trademark their names and unique attributes. With more celebrities likely to follow suit, digital content creators are in a tight spot.
India's highway building spree has hit a bit of a speed bump. Over the last decade, we've seen the construction pace shoot up from less than 12 km a day back in 2013-14 to a peak of 37 km per day in 2020-21. But now, it looks like things are slowing down. Last year, the government managed about 34 km per day, and it seems like we'll see even less this year. Estimates suggest highway building might drop to around 31 km per day. So, what's behind this slowdown? There's been some stalling with project cost approvals under the Bharatmala Pariyojana, thanks to the rising prices of raw materials and land. Plus, there's been a snag in the execution of projects awarded under the hybrid annuity model. Mint’s Sumant Banerji explains why the pace of highway construction is seeing a slowdown, in today’s Mint Primer.
India's FMCG sector has been on a roll, especially in the rural areas. After some tough years marked by demonetization, financial crises, and a global pandemic, rural India is finally seeing some sun. The latest figures tell us that for the first time in over a year, rural shoppers are buying more, outpacing their urban peers with a 7.6% jump in demand. This comes after a pretty steady climb from a more modest 5.7% rise in urban areas. Now, what’s really kicked things into gear? Well, it looks like the agriculture sector's getting back on its feet. Plus, the Indian Meteorological Department has predicted a normal monsoon this year. Big names in the FMCG world are not just selling more, but also spreading out into new territories with tailored products that fit the rural wallet and lifestyle. It's about making sure that a shop in a small town gets the same goods as a supermarket in a big city, but maybe in sizes and prices that make more sense for its customers. In cities, though, it's all about going fancy. Premium products are flying off the shelves as urban consumers are willing to shell out a bit more for something special. Mint’s Abhishek Mukherjee takes a deep dive into the world of FMCG companies, riding high on robust fourth quarter results.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
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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, May 27, 2024. My name is Nelson John. Let's get started:
The seventh and final phase of the 2024 general elections will conclude this week. Despite numerous rallies and manifesto releases, the parties' economic plans remain unclear. Puja Mehra raises a critical question to the two main blocs: how will they kick-start India's economic progress? She argues that both parties' plans have glaring loopholes. The prime minister must justify the modest economic progress over the past decade of his party, the Bharatiya Janata Party, while the INDIA coalition must specify the source of their planned economic development. Mehra also poses open-ended questions about corporate tax policies and the relationship between public and private investment. Be sure to read this piece for thought-provoking queries about the country's future, regardless of who comes to power.
While election results are yet to be announced, the central government is already planning for the next term. The Centre aims to significantly scale up its interest-free loans to states to boost capital expenditure. Rhik Kundu reports that this initiative will be part of the full budget, set to be released in July. The government has currently earmarked 75,000 crore rupees for this scheme. To qualify, states must implement several reform-oriented structural changes in sectors such as housing and vehicle scrappage.
Facebook has faced widespread criticism over its content moderation policies, leading it to contract IT giant Cognizant to filter out harmful content. Cognizant directed its staff to manually review reported content to determine its suitability for posting. However, these employees, who have since left the firm, are now suing Cognizant. They allege that the reviews were extreme in nature and high in volume. The 14 plaintiffs claim the work was misrepresented to them and that they now suffer from post-traumatic stress disorder as a result. Varun Sood provides the details of the latest issue facing Cognizant.
Eleven successive quarters of net profit, an EBITDA margin of around 25 percent, and a stock price increase of nearly 200 percent—any chief executive would be delighted with these numbers. But Amur Lakshminarayanan has just one question: what's next? Lakshminarayanan, the MD and CEO of Tata Communications, is now in his fifth year at the helm. The Trichy-born engineer has successfully diversified Tata Communications' revenue streams, including an exciting new venture into live streaming sports events. Right before the pandemic, Tata Communications also began modernizing its operations with artificial intelligence—a move that has paid off dividends. Arun Janardhan profiles Lakshminarayanan in this "Business of Life" piece for Mint Lounge.
There are necessities, and then there are luxuries. Common Indian wisdom says it's always a good idea to buy a house. But what if you aim for a luxurious one? Generally, no financial advisor would recommend overextending yourself to buy a house beyond your means. However, Shah Rukh Khan differs in philosophy, suggesting that buying a more expensive house will motivate you to work harder to achieve it. Vivek Kaul, in his trademark writing style, explores this concept—examining whether it makes financial and common sense to follow this model. He provides answers through a narrative involving a young couple and their family's desires, making for an informative yet entertaining read.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Questions on India's economy that Modi and Gandhi should answer
Centre's interest-free loans to states could be scaled up in the full budget
Ex-Cognizant staff sue over mental health harm from Facebook work
Amur Lakshminarayanan: The communicator
Why SRK’s home-buying guide doesn’t apply to everyone
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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, May 24, 2024. My name is Nelson John. Let's get started:
India’s stock markets had a great Thursday, with the Nifty and Sensex benchmarks each rising more than 1.6% to close at record highs. As a result, India's stock markets are now valued at over 5 trillion dollars, writes Dipti Sharma. Banking stocks, which have largely underperformed this year, also saw significant gains. Additionally, investor sentiment was boosted by the Prime Minister's projection that the stock markets would hit record highs on 4 June if the BJP returns to power with a comfortable majority.
Zomato, on the other hand, rose just about a per cent yesterday. However, its share price has surged over 50 per cent since the beginning of the year. The food delivery company distinguishes itself from its startup peers as a consistently profitable and innovative entity. However, Zomato wasn't always this way—it spent its first four years burning through investor money. TN Hari, a senior executive with multiple growth-stage startups, chronicles Zomato's journey from a struggling startup to an investor darling.
Paytm, another startup, which listed around the same time as Zomato, has faced a contrasting fate. Yesterday, Paytm's shares dropped nearly 3 per cent, bringing its total decline in 2024 to over 44 per cent. When the Reserve Bank of India cancelled its banking licence, Paytm's share price cracked. That has had an impact on its employees as well, who have flooded the job market with their resumes. Shayan Ghosh and Devina Sengupta report about the fintech's challenges. While Paytm hasn't resorted to any layoffs, yet, employees are concerned about potential cuts and career stagnation. If you're hiring, expect to see resumes from Paytm employees soon.
Every year, India adds to its electric power generation capacity, a necessity given the record highs in electricity consumption we hit annually. With summer officially here, the demand for electronic items to keep cool has surged. However, June might bring with it a power crisis. As N. Madhavan writes, the power deficit in June is expected to be the highest in 14 years. Night-time demand is projected to reach 235 gigawatts, while supply lags at only 221 gigawatts. In response, the government has reopened old coal plants and plans to open new ones to meet this demand. Despite these efforts, power cuts are likely this year.
These days, it seems only brands text me on WhatsApp. The app, once a cheap way to communicate with friends and family, has become a platform for endless coupons and shopping offers. This shift began a few years ago when Meta, WhatsApp's parent company, integrated commercial features into the messaging app. According to our reporter Gulveen Aulakh, this trend will only become more widespread. Gulveen spoke with Sandhya Devanathan, the head of Meta India, who said that conversational commerce is set to be a priority for Meta. Users will be able to chat with bots and shop for goods directly. Meta is targeting the 350 million Indians who have already used UPI for payments, believing they will be more receptive to online shopping on WhatsApp.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
RBI largesse catapults market to fresh high
Profits delivered: What Zomato’s sizzling results teach investors, VCs
Paytm, its payments bank employees seek greener pastures
Power crisis: Are we in for another sizzling summer?
Chat-based e-commerce key priority for WhatsApp: Meta India head
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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, May 23, 2024. My name is Nelson John. Let's get started.
Indian benchmark equity indices closed higher on Wednesday, driven by positive cues from global markets and strong Q4 earnings reports from major companies. The Sensex climbed 267 points, closing 0.36% higher than the previous session. The Nifty remained relatively flat, gaining a modest 22 points.
For decades, the Indian Institutes of Technology (IITs) have been a beacon of hope for millions of Indians aspiring to build a stable and strong career. However, this year, IITians are struggling to get placed. The anxiety at IITs is palpable, with hundreds of students from the 2024 batch still jobless even after the second round of placements. The traditional powerhouse of engineering talent is now casting a wider net, reaching out to startups, alumni, and exploring new industry segments to secure opportunities for its students. In particular, IIT Bombay reports that out of 1,973 students registered for placements, 1,387 have secured jobs in the first and second phases. Yet, 300 to 400 students are still searching for employment. To address this, the placement teams are proactively contacting previous recruiters and broadening their search to include companies offering lower starting salaries than before. The challenge is more acute this year due to several large IT firms scaling back campus hires, a direct consequence of the economic downturn which has tightened budgets and led to job cuts across sectors. The newer IITs are feeling the pinch as well, navigating their placement season with cautious optimism. Mint’s careers correspondent Devina Sengupta, along with Pratishtha Bagai, report on a challenging placement season at the IITs.
Amid a severe heatwave and unpredictable weather patterns, India is grappling with a rise in health issues such as heatstrokes and vector-borne diseases like dengue. In response, the health ministry has introduced an initiative that feels more necessary now than ever: including climate change in the medical curriculum. Medical students could soon be learning about climate change and its effects. The proposed course aims to prepare future medical professionals to better understand and tackle health challenges directly linked to climate fluctuations. Given the complexity of diagnosing conditions like heatstroke and managing emerging diseases like monkeypox, which are exacerbated by climate shifts, this educational update seems timely. Mint’s health and pharma correspondent, Somitra Ghosh, reports on the proposed inclusion, which could help our healthcare professionals deal with climate change more efficiently.
The Indian state has been in existence for close to 77 years, yet a basic necessity like clean water for all remains a challenge. The Jal Jeevan Mission, launched by Prime Minister Narendra Modi on August 15, 2019, aims to provide safe and adequate drinking water through individual household tap connections to all rural households by 2024. While it has made significant strides, achieving 76.6% coverage of the estimated 193 million rural households, it still faces the challenge of ensuring these facilities are fully functional and sustainable.The initiative has seen substantial uptake, with 11 states and Union territories reaching 100% coverage. However, states like West Bengal and Rajasthan lag, with less than half of rural households connected. The discrepancy often stems from variations in local implementation and reliance on state-level schemes. In the second instalment of a new Plain Facts series by Mint’s data team, Shuja Asrar and Payal Bhattacharya examine the progress the Jal Jeevan Mission has made in rural parts of the country.
Click on the link in the show notes to see the charts and interactive maps prepared by Shuja, Payal, and the data team.
Indian carmakers are pushing back against new fuel efficiency standards proposed by the Bureau of Energy Efficiency (BEE). The BEE aims to align with Europe's stringent vehicle emission norms, targeting carbon emissions of about 70 grams per kilometre by 2030. Automakers argue that this target is too ambitious, given that gas-powered vehicles will likely remain dominant for the next decade despite ongoing electrification efforts. The BEE, advised by the U.S.-based International Council on Clean Transportation, is advocating for these strict standards to enhance carbon reduction efforts and accelerate the shift to electric vehicles. This would involve hefty penalties for carmakers that fail to comply. Mint’s auto correspondent, Alisha Sachdev, spoke to industry insiders who warn that such stringent rules could drastically impact sales and jobs, as EV technology in India isn't as advanced as in Europe, and the charging infrastructure is still underdeveloped.
Navigating generational differences at work has always been a challenge, but the gap seems to be widening. Today, companies are increasingly cautious about how they handle younger employees, especially those belonging to Generation Z, born between 1997 and 2012. These younger workers often bring a different perspective to the work environment, leading to tensions with older managers. The generational shift reflects broader changes in workplace dynamics. Companies are finding that traditional approaches may not resonate with younger workers, who value flexibility and personal well-being over conventional workplace rewards. The challenges extend beyond daily operations to strategic considerations. Many young professionals joined the workforce during the pandemic, missing out on traditional office bonding, and thus have a different view of workplace expectations. This shift has prompted some firms to link office attendance with appraisals to encourage a return to office settings.
Moreover, younger workers are not shy about voicing their needs or moving on if those needs are unmet. For instance, they might prioritize sufficient holiday time over salary increases, reflecting a shift towards valuing experiences over material gains. Mint’s Devina Sengupta takes a deep dive into the challenges and struggles associated with this generational divide in workplaces.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
IITs scramble in last leg of placements, hundreds left to be placed
India plans a new breed of warriors to battle extreme climate impact: Doctors
Much of rural India now has taps, but running water largely remains a pipe dream
Indian automakers resist Europe-like fuel efficiency standards
Why senior managers walk on eggshells around Gen Z at the workplace
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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, May 22, 2024. My name is Nelson John. Let's get started.
Indian benchmark indices climbed off the day's high to close on a mixed note on Tuesday. Sensex fell marginally by 52 points to end the day 0.07 percent below its previous close while Nifty rose 27 points to close 0.12 per cent higher.
India's IPO market is heating up and could be on track to set a new record in FY25. The apparent surge in enthusiasm seems to defy the usual election-season jitters. Just two months into the financial year, new share offerings valued at more than Rs 50,000 crore are already in the pipeline. This figure is fast approaching the nearly Rs 62,000 crore that 76 companies raised through mainboard IPOs in FY24. Well-known companies such as Ola Electric Mobility, Swiggy, and NSDL are among those that have filed for IPOs with the Securities and Exchange Board of India, and with heavy hitters like Tata Capital and Hexaware Technologies also expected to join the fray, the buzz is undeniable. Mint’s Dipti Sharma and Ranjani Raghavan spoke to market experts who are particularly bullish on the IPO scene. They predict the number and size of IPOs in FY25 could double those of the previous year. Munish Aggarwal of Equirus echoed this optimism and suggested that barring any major volatility, issuances could top ₹1.5 trillion this year—a milestone previously achieved only in FY22. The growing IPO market isn't just about raising more funds; it's a testament to the maturing of India's primary markets.
The expanding real estate market has seen a distinct shift in dynamics that has particularly affected the availability and sales of affordable housing. Over the past five years, there's been a noticeable decline in the sale of homes priced ₹40 lakh or less in top Indian cities, even as the overall property sector has seen a recovery. The share of affordable housing in total home sales dropped dramatically from 38% in 2019 to just 19% by 2023, with a slight increase to 20% in early 2024. This trend is mirrored in the supply of new budget housing projects, which plummeted from 40% to 18% over the same period. Conversely, the luxury housing segment has thrived during this period. Benefiting from the real estate upcycle post-pandemic, luxury homes have seen an increase in both supply and sales. So, is there a way the affordable housing market could see a recovery? In which cities is this trend most visible? And has the government decided to step in? Mint’s Madhurima Nandy tackles these questions in today’s Mint Primer.
Just days after the world’s largest sovereign wealth fund, Norway’s Norges Bank, blacklisted its ports business, Gautam Adani's conglomerate is setting up a $3 billion fund to enhance its global ports capacity significantly. The Adani Group aims to create a strong presence in the crucial international trade corridor linking India with Europe through Central and West Asia, two company insiders told Mint’s senior editor Anirudh Laskar. The move is part of a strategic push to capitalise on the increasing export demands for commodities such as iron-ore and coal from India.
The plan includes a substantial 25-30% increase in international port capacity over the next two years, primarily through acquisitions. The expansion will see Adani's current container-handling capacity increase from about 600 million metric tons a year to 800 million.
Have you ever wondered how India’s polling stations have evolved since Independence? In the latest instalment of Mint’s election data series, Nandita Venkatesan looks at the math around India’s polling stations. As India’s population has grown, the number of polling stations has skyrocketed from just over 200,000 in the 1960s to one million in the 2019 Lok Sabha elections. The average number of voters per station has declined, however, from more than 1,000 per booth in the 1960s to 879 in 2019, thanks to efforts to make voting less of a hassle. But here’s where it gets interesting — not all polling stations are under the same pressure. In 2019, places in Kerala, Bihar and Rajasthan recorded the highest number of voters per station, while those in northeastern states such as Manipur, Mizoram, and Arunachal Pradesh had among the fewest voters each. Click the link in the show notes to read the full story, illustrated with charts and an interactive map prepared by Nandita and her team.
E-commerce major Flipkart is feeling the heat from quick-commerce companies such as Blinkit, Swiggy Instamart, and Zepto. Having started by delivering groceries, these platforms now offer everything from electronics to personal care items, encroaching on Flipkart’s turf. They’ve mastered the art of ultra-fast delivery, delivering products in 15-20 minutes from dark stores and reshaping consumer expectations in the process. The rise of quick commerce has been nothing short of explosive. Their gross merchandise value (GMV) jumped from just $0.1 billion in 2020 to $2.8 billion by 2023. The business taps the increasing need for instant gratification — a trend that Flipkart has previously tried to capture, albeit with little success.
Owned by Walmart, Flipkart pioneered online shopping in India but has stumbled in the quick-commerce race. Initiatives such as Flipkart Nearby and Flipkart Quick were bogged down by logistical snags and inventory issues that made speedy delivery impossible. Now, it seems Flipkart is gearing up for another shot at quick commerce, fearing it could lose more ground to these nimble competitors. Mint’s startup correspondent Samikdha Goel examines the company’s quick-commerce FOMO in today’s Long Story.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
IPO rush sets up India’s equity market for another record year
Mint Primer: Budget homes are in coma. Can they be revived?
Adani group plans to invest $3 billion to boost international ports business
How many polling stations does it take to conduct India's elections?
Flipkart has FOMO? Zepto and Blinkit are changing the e-commerce giant
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Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, May 21, 2024. My name is Nelson John. Let's get started.
No stock market updates from us today as the markets remained shut on Monday as Mumbai went to the polls.
Yesterday, Iran's interior minister confirmed that the country's leader, Ebrahim Raisi, had died in a helicopter crash that also killed the country’s foreign minister. We invited Elizabeth Roche, an associate professor at Jindal University, to write about the implications of this tragedy. Roche also answers what's next for Iran, and how this will affect India, the Middle East, and the West.
A couple of weeks ago, a research paper by Banaras Hindu University sparked widespread worries among Indians. The paper said a significant number of people faced adverse side-effects after taking Covaxin, the indigenously developed covid vaccine. Bharat Biotech, which developed the vaccine, brushed off the concerns, pointing to other studies that proved the vaccine's safety record. Now, the government is stepping in to dismiss any concerns: the Indian Council of Medical Sciences said that BHU's study was poorly designed, and had no control group of unvaccinated individuals to compare with. Priyanka Sharma writes that the participants were contacted by telephone, and no physical examination was conducted. This ought to put Covaxin users at ease.
The Reserve Bank of India has reprimanded a host of financial entities lately, from Paytm to Kotak Mahindra Bank and Bank of Baroda. Under governor Shaktikanta Das, the banking regulator is doing its best to whip every lender into shape. Prior to Das, Raghuram Rajan was at the helm. His goal was cleaning up banks' balance sheets, while Das wants to ensure better governance. But as Shayan Ghosh writes, the way the RBI has been going about this is interesting: it is now not afraid of taking big decisions. Earlier, the central bank relied on fines and warnings. Today, it is cancelling banking licences and preventing companies from taking on new customers — essentially hurting the core of their business. Shayan takes a deep dive into the RBI's practices, and why it's resorting to such measures to protect citizens.
If you go to buy an electric vehicle, you'll realise that one big advantage EVs have over their fossil fuel-counterparts is that they don't carry any road tax. For example, in Karnataka, the road tax for petrol cars can be up to 17 percent of the car's price. This is an incentive from the government for companies and buyers to go green. But you don't have to electrify yourself fully to get discounts from the government. Take for example, ethanol-powered cars. Alisha Sachdev reports that union road minister Nitin Gadkari expressed interest in lowering the taxes on ethanol and ethanol-blend cars from anywhere between 2 and 14 percent. This would significantly lower the cost of cars that use either pure ethanol or a blend of ethanol and petrol, called flex-fuel cars. While flex-fuel cars aren't yet produced in India, Gadkari claims they pollute even less than EVs. In the battle between electric and petrol, ethanol seems to have gained the political upper hand.
It's a good time to be a premium D2C company. Brands such as bespoke apparel maker Bombay Shirt Company, luggage maker Mokobara, and organic dairy startup Akshay Kalpa have raised funds from some of India's largest venture capital firms in the recent past. Sowmya Ramasubramanian speaks to investors who are bullish on this segment, as they see an increasing number of people willing to pay premium prices. Convenience plays a role, too. Sowmya writes that these products are more likely to be available on quick commerce apps than legacy brands. She also writes about the reality of affluent consumers, and how big an audience such brands can actually target.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
India’s ties with Iran: What after Ebrahim Raisi?
Govt rejects Indian study about Covaxin side-effects
In EV vs hybrid battle, flex fuel vehicles win political favour
No carrot, only stick: Why the RBI has gone beyond moral suasion and fines
VCs chase a pot of gold as India's growing affluent class goes premium
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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, May 20, 2024. My name is Nelson John. Let's get started:
What used to be the poster child of Indian startups and had a presence everywhere, from the FIFA World Cup to the Indian Cricket Team’s jersey - Byju’s - has witnessed a fall from grace over the last two years. The company, which was once a unicorn saw a 95% nosedive in its value. The Bengaluru-based company’s woes do not seem to end. Rajnish Kumar and T.V. Mohandas Pai, advisors on the panel of Byju’s parent company Think & Learn, have decided not to extend their tenure beyond June 30. This adds to the challenges faced by the company, as it navigates board exits, financial troubles, and increasing litigation. Both advisors have chosen to leave due to the company's ongoing legal entanglements, report Mint’s senior editors Gopika Gopakumar and Varun Sood. The advisory panel, established in July last year following notable resignations from the board due to governance concerns, was part of a strategy to address these corporate governance issues. Unfortunately, Byju's continued to face operational challenges, including the inability to secure additional funding, leading to layoffs and delayed salaries.
In the past three years up to March 2023, a staggering revelation came from India's food safety authorities: out of 43 million food samples tested, a quarter did not meet domestic food safety laws. Alarmingly, one in six of these were found to be either 'unsafe' or 'substandard,' while the remainder failed to adhere to labelling laws, often misleading consumers with incorrect information. While India’s food safety regulator, the Food Safety and Standards Authority of India or FSSAI, did initiate litigation against these outliers, what they forgot to do was inform the citizens about them. Fssai and state agencies have not sufficiently informed the public about the specific manufacturers or brands involved, leaving consumers uninformed about potentially harmful products. The lack of transparency is evident in Fssai’s 2021-22 annual report, which notably omits any mention of product recalls or license cancellations — standard practices in many other countries to protect consumers. Mint’s Sayantan Bera and Suneera Tandon spoke to FSSAI insiders to understand why the central government agency has failed to crack the whip on companies selling substandard products, amidst global scrutiny of Indian packaged food brands. Sayantan and Suneera also break down the challenges being faced by the FSSAI including a lack of testing labs.
The Financial Services Institutions Bureau, an autonomous body under the central government, is set to conduct interviews on May 21 to recommend a candidate for the chairman's post of the country's largest bank - the State Bank of India. This decision will be finalised on the same day, replacing the incumbent Dinesh Kumar Khara who is slated to retire on August 28.
The candidates in consideration for the chairman's position are State Bank of India’s (SBI) three managing directors—C.S. Setty, Ashwini Kumar Tewari, and Vinay M. Tonse. Mint’s banking editor Gopika Gopakumar reports on the closely monitored selection process. C.S. Setty, the most senior among the candidates, has a background in managing the bank's stressed assets and comprehensive experience across various banking verticals. Ashwini Kumar Tewari brings a strong international and corporate banking portfolio, having managed SBI's operations in the U.S. and as the former CEO of SBI Card. Vinay M. Tonse, who oversees retail banking, has a deep understanding of the domestic market and a record of effective team-building.
Last year, online gaming companies in India were hit with a significant tax demand totaling over ₹1.12 trillion from their past revenues, leading to a legal challenge currently pending in the Supreme Court. The GST Council, the central body overseeing indirect taxation, is set to deliberate on this issue, considering the industry's plea for relief from these substantial tax claims. Previously, the tax regime for online gaming was ambiguous, with companies paying an 18% GST on platform fees or commissions, which range from 5% to 20% of the deposits. However, a dramatic shift occurred on October 1, 2023, when the GST Council imposed a 28% tax on the full face value of deposits, retroactively applying this rate to past earnings. Mint’s Gireesh Chandra Prasad reports that the central and state GST officials are currently reviewing the grievances expressed by the industry regarding the notices for the period leading up to October 2023.
As the summer holiday season kicks off, the limitations of the Indian passport become glaringly apparent. According to the Henley Passport Index, out of 227 possible destinations, Indians can enter 31 countries without a visa and get a visa-on-arrival in 30 countries. This totals visa-free access to just 61 countries, leaving the vast majority requiring a visa obtained through traditional, more cumbersome means. Compare that with Brazil, where folks enjoy visa-free access to a whopping 173 countries. Even Russia, despite facing international sanctions, can access 120 countries relatively freely. It’s a bit of an eye-opener, especially considering India’s status as one of the world’s fastest-growing economies. Visa-free access isn't just about economics, writes independent journalist Deepa Vasudevan. It's also influenced by a mix of factors like geography and reciprocal agreements. Take the European Union or the Asean bloc, for instance, where members enjoy hopping across each other's borders without much fuss.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Byju’s woes worsen: Rajnish Kumar, Mohandas Pai to step down from advisory panel
In a pickle: Why it’s time for Fssai to wake up and crack the whip
At India's biggest bank, a new chairman to be anointed this week
GST Council to hear gaming firms' plea on past tax demands
Mint Primer: Beam me up, Scotty... into the boardroom
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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, May 17, 2024. My name is Nelson John. Let's get started:
After Wednesday’s fall, the Indian benchmark indices Nifty and Sensex rose by nearly one percent on Thursday. While the Sensex climbed 670 points, the Nifty surged by more than 200 points.
As we edge closer to the final phase of the Lok Sabha election, there's a clear divide between domestic and foreign investors' market play, especially in their bets on Nifty derivatives. Retail and wealthy investors, usually called 'clients' on NSE, are really bullish right now. They believe the ruling NDA coalition is heading for a big win, and have ramped up their bullish positions on Nifty futures to the highest levels since November 2. On the flip side, Foreign Portfolio Investors are treading cautiously. Maybe they're sensing a potential upset because they've gone and hedged their massive $794-billion portfolio of Indian stocks by taking on a hefty amount of bearish index futures. It's their highest level of bearish bets since, well, the same date as the domestic bulls. Mint’s markets correspondent Ram Sahgal brings the latest on how the markets are reacting to the national election.
The Supreme Court recently made a big decision: lawyers are now exempt from the Consumer Protection Act. This change could pave the way for doctors to get a similar exemption. So what does this mean for you when you need to complain about poor service? Mint’s senior editor N Madhavan explains in today’s Primer. On 14 May, the Supreme Court said that legal services are unique and don't fall under the Consumer Protection Act. It pointed out that the law never intended to include professionals like lawyers and doctors. Instead, these professionals are regulated by their own bodies, like the Bar Council of India or the Indian Medical Association. Here’s where it gets interesting. The Supreme Court also hinted that it might reconsider its 1996 ruling that brought doctors under the Consumer Protection Act. This could mean doctors might also be exempted soon.
The biggest sovereign wealth fund in the world - Norway’s Norges Bank Investment Management has blacklisted billionaire Gautam Adani’s Adani Ports and Special Economic Zone, or APSEZ. The fund, which has $1.63 trillion in assets under management, blacklisted the firm citing unacceptable risk related to “serious violations of individuals' rights in situations of war or conflict.” Adani Ports became the 16th Indian company to be on its exclusion list. The Adani Group company acquired Israel’s Haifa port in 2022. However, it is unclear whether the $1.15 billion acquisition is the reason behind the blacklisting. APSEZ, which owns 14 ports globally, handles a significant portion of India’s cargo. Norges Bank, which owns 1.5% of the world’s listed companies, had a 0.24% stake in Adani Ports as of December. Mint’s Varun Sood reports on the decision by the sovereign wealth fund, which has shares in over 300 Indian companies. Its Exclusion List now includes 192 companies, with 16 from India. The fund avoids investing in companies involved in tobacco, coal, nuclear weapons, and those violating international conduct rules. For instance, it blacklisted ITC Ltd in 2010. NTPC and Coal India Ltd have also faced exclusion.
Former Wipro CEO Thierry Delaporte has recently been quite busy in the stock market. Over the past month, he's sold Wipro shares worth 34.5 crore rupees, bringing his total earnings from share sales since stepping down on 6 April to a hefty sum of 70 crore 63 lakh rupees, or about 8.5 million dollars. And that’s on top of the 36 crore rupee cash payment Wipro offered him as a parting gift. It’s not clear if Wipro allowed Delaporte to accelerate the vesting of his employee stock options or if he just cashed in on the shares he already had. Mint’s Varun Sood and Jas Bardia report on the development.
The 2024 Lok Sabha election is in full swing. Politicians are leaving no stone unturned to have their voices heard by the people. And just as with everything in 2024, AI has entered the political game as well. Political parties are using AI to evoke all kinds of emotions in voters. For instance, former Tamil Nadu chief minister and AIADMK leader J. Jayalalithaa was heard critiquing both the central and state governments in a clip released on her birthday in February. However, the Dravidian leader passed away in 2016. Her voice was recreated using AI as part of the AIADMK's strategy to commemorate Jayalalithaa and galvanise support for its current leader, Edappadi Palaniswami, ahead of the election. The trend of using AI to recreate the voices and images of late politicians has been gaining traction across India. The technology allows parties to forge a personal connection with voters, especially the youth, who are new to the electoral process. Platforms like YouTube, Instagram, and Facebook are awash with such content, crafted to sway voter sentiment and solidify party loyalties. Mint invited independent journalist Sanghamitra Kar P to write about the latest election tech trend in today’s Long Story.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Retail bulls run into wary FPIs on Street
Mint Primer: Has consumer protection just got weaker?
Fund giant Norges cuts off Adani Ports
Wipro’s outgoing CEO adds to his resignation bounty with $4-mn share sale
How political parties are using AI to bring personalities to life
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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, May 16, 2024. My name is Nelson John. Let's get started:
After a couple of days of gains, the Indian stock markets fell on Wednesday. The Sensex shed 117 points, while the Nifty dropped by 0.16 percent during yesterday's trading session.
Fake reviews have plagued e-commerce. But the central government might soon have a solution. The ministry of consumer affairs wants to establish a quality check order to crack down on fake reviews on e-commerce platforms. Dhirendra Kumar reports that these platforms will have to curb these dubious reviews or face action under the centre's consumer protection act. This proposal comes after there were a substantially large number of consumer grievances related to e-commerce on the national consumer helpline. In 2023, the helpline saw more than 440,000 complaints pertaining to e-commerce alone.
Canada was the preferred destination for thousands of Indian students every year, but that is now changing. As Devina Sengupta writes, applications to Canadian universities have dropped by more than 40 percent this year. Canada is to blame here — the government had vowed to cut its international student number by a third last year. Moreover, a housing crisis and lack of jobs have also dissuaded Indian students from flying there. Devina spoke to higher studies consultants who told her that this dip is likely to continue till at least the end of 2025, which is when Canada is scheduled to have their next round of general elections.
Health-conscious people always read the nutritional value of items when they buy any packaged foods. But what happens when the labels themselves are misleading? To help with that, the National Institute of Nutrition has issued a list of 17 do's and don'ts as dietary guidelines. This assumes importance as more than half of India's total disease are borne out of unhealthy diets. Indian diets are quite low in protein — the guide recommends you to increase your intake of proteins to improve your health. As Sayantan Bera writes, some fruit juices contain way too much sugar and not enough fruit.
Getting into mutual funds can be a little daunting. There are some 140,000 mutual fund distributors in India today. These distributors cherry-pick their best-performing funds to get you to invest your money — but past history is not a certain indicator of the future. Some buy through banks because it's more convenient, but banks take a healthy cut out of your earnings. Neil Borate and Sashind Ningthoukhongjam outline some basic advice to help you choose a path through the mutual fund maze. They write about what a good distributor should have, and more importantly, how to spot a bad investment advisor. Remember: if it's too good to be true, it probably is.
Hilton, Hyatt, Taj, Marriott — these are some of the most famous hotel chains across the globe. But now, real estate bigwigs want to get in on the action. Varuni Khosla writes that Prestige Group and DB Realty are among developers looking to expand their hospitality businesses. Varuni spoke with executives from the industry who hailed the next few years as the "golden era" for India's hotels sector, and everyone wants a piece of the pie. Some of these builders are co-investing with other hospitality companies to develop properties together. There's a fair amount of dealmaking that is currently underway in this business, so expect a host of luxury hotels to pop up across India very soon.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Govt cracks down on fake reviews, proposes QCO for e-commerce players
Indian students shy away from applying to Canada for higher studies
‘Read that label’ and 16 more food commandments
Real estate majors are coming for the hotel industry bearing a ₹10,000-cr purse
Where to find reliable advice in the mutual fund maze
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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, May 15, 2024. My name is Nelson John. Let's get started:
Indian stock markets trended upwards on Tuesday. Sensex and Nifty gained about half a percent each in yesterday's trading session.
That was welcome news for Indian equity investors, who suffered through a string of loss-making sessions last week. That's all due to Vix — no, not the cough drop. Vix is an indication of the fear in the market sentiment. If the markets are up, Vix is down, as there is less fear of volatility in the market. Last week, the markets took a turn for the worse as the results of the general elections stoked fear among investors. Vix has been at a 19-month high of late, and investors want to book their profits in case of an unexpected result on June 4. Ram Sahgal writes a detailed explainer on why the elections are causing such instability across Indian equities.
When the government launched the open network for digital commerce, or ONDC for short, it was supposed to be a game changer. A year and a half later, only one segment has actually seen some noted disruption: food delivery. Mobility, especially auto-rickshaw rides, are also doing well. But the rest of the apps haven't made ONDC their home just yet. As Sowmya Ramasubramanian writes, apparel, electronics, and other e-commerce ventures haven't fared well on ONDC. Even its success story, food delivery, did roughly 10 million orders, as opposed to 100 million between Zomato and Swiggy. ONDC was once heralded as the next possible success story after UPI. That comparison pales heavily today. Will ONDC be able to pick up some momentum soon?
If you had friends in the West, you probably would've gotten some spectacular pictures of the sky from them. Social media was full of colourful skies last week, delighting many. But they were the result of a solar flare on the surface of the sun. This phenomenon can hurt power infrastructure, communications, and disrupt navigation. The pretty aurora borealis can thus disrupt our lives as we know it. Shouvik Das explains this occurrence, their severity, and how we can defend ourselves from a solar flare's negative effects.
Godrej Properties is a landmark in India — both in terms of its name, and its real estate business. It has a market cap of 78,400 crore rupees, but its beginnings were quite humble. When it listed publicly in December 2009, it raised just 469 crore rupees — double of its revenue. But today, Godrej Properties rakes in more than 22,000 crore rupees as annual revenue. Its shares have increased by 239 percent in the last five years. There's one man from the Godrej family who can take credit for making its real estate arm as successful as it is today: Pirojsha Godrej. Godrej now competes with DLF, Prestige, and Macrotech in the real estate market. Madhurima Nandy tries to answer a burning question: what next for Godrej Properties?
We were supposed to get Teslas on the Indian roads — instead, we got Tesla in the Indian courts. Recently, Tesla filed its first lawsuit in India against a battery seller named Tesla Power India. The Elon Musk-headed Tesla made this aggressive move to protect its brand and name. Krishna Yadav explains the rationale behind this move, which is the latest in the series of international brands protecting their likeness in India. Interestingly, as Krishna notes, the court's decision could also set a precedent for future trademark-infringement cases in India's growing electric vehicles market.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Show notes:
Mint Explainer: Why the national election is making the market swing wildly
ONDC's e-commerce puzzle: Food thrives but apparel and electronics lag
Solar storms: How deadly can they get?
How Pirojsha Godrej changed India’s real estate business
Mint Explainer: How Tesla’s first India lawsuit will affect EV trademark battles
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Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, May 14, 2024. My name is Nelson John. Let's get started:
Indian benchmark indices remained upbeat on Monday, with both Nifty and Sensex closing the session in the green. BSE’s 30-company Sensex surged 0.15 percent while NSE’s Nifty-50 saw a rise of 0.22 percent.
Mini-cars have long been the gateway to four-wheeled transport for many in India, but they're facing a bit of a rough patch. Maruti Suzuki, the big player in India's car market, is hitting the pause button on sprucing up this segment. Why? Well, it boils down to costs and affordability. Right now, Maruti dominates the hatchback market, holding about 70% of it, but they're choosing to hold off on upgrades until these cars become more wallet-friendly for the average buyer. Their mainstays—the Alto, Celerio, and S-Presso—won't see significant changes for a while. Maruti's betting that once incomes go up, these entry-level cars will become popular again among first-time buyers. But here’s the kicker: the overall market for entry-level cars has really dipped, from more than 470 thousand units back in 2011 to just over 160 thousand in 2024. Customers are more inclined towards entry-level SUVs instead. Mint’s autos correspondent Alisha Sachdev writes on the shrinking market for entry-level hatchbacks.
Nasdaq-listed IT firm Cognizant, which has more than 250 thousand employees in India, is getting tough with employees who are resisting returning to the office. They've warned that continued absence could lead to termination. This move, detailed in a letter from April 15, makes Cognizant one of the first major IT companies to use firing to get people back to their office cubicles. Until recently, Cognizant was flexible about office attendance, letting individual teams decide based on their project needs. But earlier this year, they changed gears and started asking their employees in India to be in the office three days a week. They even began tracking office attendance closely. Mint’s IT correspondent Jas Bardia reports on the emerging trend of IT companies using termination as a tool to get people back to office. Companies like Tata Consultancy Services and Infosys have also been tightening policies around office attendance, linking them to pay hikes and bonuses, indicating a significant shift from the more flexible remote work policies during the pandemic.
The banking sector is basking in the glow of an extraordinary earnings season for the March quarter. State Bank of India, the country's largest lender, just posted a record-breaking profit of more than 20,000 crore rupees for the quarter, outshining even Reliance Industries, India's most valuable company. Punjab National Bank is another state-run lender that's making waves, with its net profit skyrocketing almost three-fold. Private players including HDFC and Axis Bank, too have reported strong numbers. However, not everything is smooth sailing. The robust post-pandemic economic recovery has led to a surge in credit growth, especially in the retail segment, which has outpaced deposit growth. This situation has pushed the loan-to-deposit ratio to a decadal high of 80%, signalling potential liquidity and credit risks. Banks are now caught in a tough spot. They need to either reduce loans, which could stifle growth, or increase deposits, which might hurt margins because higher interest rates would have to be offered to attract depositors. Mint’s Abhishek Mukherjee examines what’s behind the stellar fourth-quarter performance of banks and whether the results show the complete picture.
Tata Motors experienced a standout fiscal 2024, thanks mainly to the performance of its British subsidiary, Jaguar Land Rover. JLR's margin climbed impressively to 8.5% from just 2.4% the previous year, a boost attributed to better scale, reduced costs for input materials, and strong sales of the Range Rover and Defender models. Additionally, JLR generated a whopping ₹24,000 crore in free cash flow for FY24, significantly cutting down TaMo's net automotive debt from ₹43,700 crore at the end of the previous year to ₹16,000 crore by March's end.
Looking ahead, Tata Motors is potentially on track to erase its net debt by FY25, thanks to the continued cash flow from JLR. Mint’s Manish Joshi brings a snapshot of Tata Motors’ fourth-quarter performance and how the growth of its British subsidiary is on its way to a slower lane.
The buzz is real! Cinema owners across India are all smiles as they gear up for a slew of blockbuster releases from the South. With big names and even bigger stories, movies like Allu Arjun’s Pushpa 2, Prabhas and Deepika Padukone’s "Kalki 2898 AD," and Kamal Haasan’s "Indian 2," are set to hit the screens in the coming months. Experts are predicting these films could rake in a whopping ₹1,500 crore at the box office. After a bit of a slump, with few Hindi movies catching eyes since the Eid weekend in April, these multi-language, star-studded films from the South are ready to bring the magic back. They're following in the footsteps of giants like "Baahubali" and "RRR," banking on a mix of high-octane action, deep drama, and emotional hooks to pull in audiences, including those in the Hindi-speaking belt through dubbed versions.
Mint’s media and entertainment correspondent Lata Jha spoke to several experts and industry insiders who are looking at the upcoming South Indian projects with anticipation, hoping to attract the mass-market audiences.
Mini cars stall as some can't afford them, some want more
Not working from office might lead to job loss, Cognizant tells employees
Banks had a blockbuster quarter. But don’t let that fool you
JLR drives TaMo’s FY24, but slow lane ahead?
Exhibitors pin hopes on big southern films to bring cheer to box office
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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, May 13, 2024. My name is Nelson John. Let's get started:
Active investors in Indian equity markets have had a good run: in the last three years, the Sensex has increased by more than 45 percent. Often, the state of the stock markets also reflects the mood of the nation. If the country's economic output is robust, the market trends upwards. As Madan Sabnavis, chief economist at Bank of Baroda, writes, it is often assumed that a rising stock index is indicative of broad confidence in the economy and acts as a foreteller of its performance. But is this really true? Sabnavis argues that broader market trends do not reflect the true picture of Indian commerce or macroeconomic conditions. He compares India's GDP, Nifty, and Nifty companies' profits to make his point. Next time someone says the country is doing great because the stock market hit a new high, you might want to point out that the correlation isn't necessarily true.
Investors opt for mutual funds when they want a more passive experience to investing. If you're bullish on one sector, you can even choose a sector-specific fund like banking, PSUs, and auto stocks. But what if you want to reap the rewards from a more risky instrument like cryptocurrencies? Since January 2020, the Bloomberg Galaxy Crypto Index, which is a collection of some of the top cryptocurrencies, has delivered 500 percent returns. That's where a fund like BitSave comes in. BitSave is a startup that operates a crypto-only fund, and isn't bound by SEBI's regulations as it operates out of Seychelles. We invited Yash Roongta, founder of Alt Investor, to write about this interesting but volatile investment option.
AI this, AI that — it's impossible to escape the all-encompassing artificial intelligence. Sam Altman, CEO of OpenAI, is drumming up hype for GPT-5. Some believe that along with GPT-5, OpenAI is also set to launch a search engine that would go toe-to-toe with Google. ChatGPT has also been licensed to a variety of businesses, and makes a lot of money from it. But as Leslie D'Monte writes, companies would do well to hedge their AI bets. Despite the hype for GPT-5, it might turn out to be a dud — that's where the competitors come in.
If you've made international summer vacation plans, I must commend your patience. It's incredibly difficult to get a visa to the US or Europe these days. Appointments for the Schengen visa are months away, and you're not certain to get them either. Spurned by Europe, Indians are now looking at other destinations, writes Varuni Khosla. Varuni spoke with travel agents who are curating trips for holidays to places such as South Korea and Japan. Closer home, countries like Sri Lanka, Vietnam and Thailand are attractive destinations too, especially after they started providing visa on arrival for Indians. Europe's loss is India's gain, and Indians are cashing in.
India is now a chess-playing nation. Much of the credit must be given to Vishvanathan Anand, India's first, and for a long time, only chess grandmaster. India now has 84 grandmasters. The latest Indian chess star is Gukesh Dommaraju, a 17-year-old prodigy who became a grandmaster at the tender age of 12. Gukesh now enjoys fame and celebration usually reserved for India's cricket heroes. We invited Deepti Patwardhan, noted sportswriter, to take a deep dive into the history and moves that made Indians in chess a force to be reckoned with.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Stock market indices say little about economic growth
The curious case of India’s first crypto mutual fund
Why buzz over search engine may help big tech
Spurned by Schengen, Indians are being swayed by the lure of liberal visas
Gukesh D and the rise of Indian chess
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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, May 10, 2024, and I'm Nelson John. Let's dive in:
The Indian benchmark indices ended deep in the red on Thursday, marking their third consecutive session of losses, weighed down by a raft of weak March quarter results and uncertainty surrounding the ongoing 2024 Lok Sabha elections. The Sensex, which had opened higher, tumbled more than a thousand points to close 1.45 percent lower than its previous close. The Nifty also ended in the red, down 1.55 percent.
Spices and Indian masalas are an integral part of the subcontinent’s history and global identity. The spice trade in medieval times shaped India’s colonial history. However, Indian spices are now facing a crisis of confidence. It all began early last month when regulatory authorities in Hong Kong and Singapore suspended the sale of MDH and Everest spice mixes due to alleged chemical contamination. The regulators found high levels of ethylene oxide, a carcinogen, in the spice mixes. The Maldives has also banned both brands, while regulators in the US, Bangladesh, and Australia have initiated investigations. Indian spice exports are substantial, estimated at $4.25 billion in FY24, constituting 12% of the global spice trade valued at $35 billion. Mint’s senior editor, N Madhavan, explains how the regulatory action against these Indian spice companies could impact the $4 billion spice export sector.
India’s largest public sector bank, the State Bank of India, announced stellar fiscal fourth-quarter results on Thursday. Profit for the quarter ended in March rose to more than Rs 20 thousand crores. Rising 24 percent year-on-year, the profit was the highest quarterly number it has ever reported. For the whole of FY24, SBI’s income stood at more than Rs 61 thousand crores, yet another record for the lender. SBI chairman Dinesh Khara expressed confidence in the bank’s growth prospects, saying that the lender aims to expand its credit book by 14-16%. Despite the positive outlook, SBI's projected deposit growth for FY25 is expected to lag its credit growth, a trend playing out across the banking industry. Khara remains optimistic, citing broad-based growth across various loan segments, including retail, corporate, small businesses, and agriculture. Mint’s banking correspondent Shayan Ghosh writes on SBI’s results and examines what the current fiscal year has in store for the bank.
In 2023, Tesla chief Elon Musk conceptualized the Hyperloop—a revolution in mobility. The Hyperloop is envisioned as a low-pressure tube for high-speed transportation of cargo and passengers using magnetically levitated pod-like vehicles. Despite skepticism about its viability, Satyanarayan Chakravarthy, a faculty member at the Indian Institute of Technology Madras, believes in its potential. Speaking with Mint’s senior editor Leslie D’Monte, Chakravarthy revealed plans for Avishkar Hyperloop, a project at IIT-Madras, to demonstrate a Hyperloop stack, including a vacuum tube, at their new campus. This demonstration will take place during the 'Global Hyperloop Competition' hosted by IIT-Madras next January. Despite challenges, Chakravarthy remains optimistic, highlighting Avishkar Hyperloop's progress in developing Hyperloop technology since 2017. The initiative has garnered support from the Ministry of Railways and various research institutions.
Russian companies have utilized nearly $4 billion from their rupee vostro accounts in Indian banks over the past 6-8 months. These funds have been allocated toward purchasing various items, including locally manufactured arms. This spending surge follows a period where these accounts saw a significant influx of rupees due to India's heightened purchases of Russian crude oil. But wait, let's back up a bit. What exactly are vostro accounts? A vostro account is managed by a domestic bank on behalf of a foreign bank. The foreign lender can use the account for transactions, including forex settlements, cross-border payments, and investments in the domestic market. Notably, these vostro accounts also facilitate settlements for Indian exports to Russia. This arrangement serves as a workaround for Russian banks, which face limitations in interbank payment transactions following their exclusion from the SWIFT payment system due to Western sanctions. Mint’s foreign affairs correspondent, Rhik Kundu, reports on how Russia is exploiting all its resources—including money in its vostro accounts—to fund its war in Ukraine.
Until recently, West Bengal's Chief Minister and All India Trinamool Congress leader, Mamata Banerjee, was notably uncomfortable with overt displays of political Hinduism. She even expressed disdain for the politicisation of religious sentiments, evident when she dismissed the grand spectacle of the Ram Temple consecration in Ayodhya as a political manoeuvre by the BJP before the Lok Sabha polls. However, Banerjee's stance has gradually softened in response to political dynamics. For instance, she surprised many by declaring a state holiday on Ram Navami, albeit under the guise of celebrating the Maha Navami of the Chaitra Durga Puja, avoiding explicit acknowledgment of Ram's birthday. Her party leaders, meanwhile, enthusiastically embraced Ram Navami celebrations, with TMC candidates actively participating in festivities. This subtle shift in TMC's approach is part of a broader strategy to consolidate support among Hindu voters in West Bengal, a response to the BJP's growing influence in the state. The TMC has been quietly bolstering its Hindu credentials through measures such as stipends for priests, allowances for Durga Puja celebrations, and temple construction and restoration projects. By embracing a lighter shade of saffron, the TMC aims to counter the BJP's Hindutva narrative and prevent further erosion of its Hindu vote base. Mint invited West Bengal-based journalist Romita Dutta to examine the steady saffronization of TMC’s politics in the state.
We'd love to hear your feedback on this podcast. Let us know by writing to us at [email protected]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.
Are Indian spices facing a crisis of confidence?
After stellar FY24, SBI aims at better show in next fiscal
Can India leapfrog the high-speed rail story with Hyperloop?
Russian exporters ramp up spending from rupee funds on defence equipment, arms
Hindutva-lite: Behind Didi’s new formula to boost Trinamool in Bengal
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