News Insight - August 5 & 6 2024

Issue No. 1 GL Bajaj August 5 2024 THE NEWS INSIGHT Economy & Policy Govt plans crackdown on substandard helmets to reduce road deaths The Centre is planning a nationwide crackdown on poor quality driving helmets. In india almost 50% o...

Issue No. 1 GL Bajaj August 5 2024 THE NEWS INSIGHT Economy & Policy Govt plans crackdown on substandard helmets to reduce road deaths The Centre is planning a nationwide crackdown on poor quality driving helmets. In india almost 50% of helment in use are Sub-Standard. According to Community against drunken driving(CAAD) High quality helments can reduce the risk of brain injury by 74% There are urgent need to take action against manufacturers operating without a BIS license and ISI marks. According to ministry of road transport and highways reveals there were 63,115 accidents and 25,228 deaths in the year 2022 which is 20.4% more than previos year. India to invite global bids to trade in its oil reserves ISPRL Stands for indian strategic petroleum reserves ltd.is all set to move to the rent phase of commercializing its resources. In india 2021 union cabinet allowed ISPRL to undertake partial commercial activites with the crude which was stored in caverns under Phase-1 of the SPR(Strategic petroleum reserve) programme. They were allowed to use 30% of SPR capacity for renting and 30% for trading. The sale of crude would only be allowed to indian companies. ISPRL has already leased out the capacity of 3 lakh metric tonne for HPCL and now bids for renting out another 7.5 lakh metric tonne. WWW.THENEWSINSIGHT.COM Issue No. 1 Corporate August 5 2024 DGGI drops tax notice of ₹3,898 cr: Infosys Karnataka GST officials had raised a ₹32,403 cr demand for unpaid taxes Tax Demand Withdrawal:The Directorate General of GST Intelligence (DGGI) has withdrawn a tax demand of ₹3,898 crore for Infosys Ltd. for the financial year ended March 2018. Ongoing Dispute:The total tax dispute amounts to ₹32,403 crore, with ₹28,505 crore still unresolved, concerning unpaid taxes for services availed by Infosys from its overseas branches between July 2017 and March 2022. GST Authorities' Standpoint: The Karnataka GST authorities alleged that Infosys evaded integrated GST by including expenses of foreign branches in its export invoices, treating each branch as a distinct person. Industry Support: The IT industry body Nasscom supports Infosys, arguing that the GST demand reflects a misunderstanding of the industry's operating model and that multiple companies face similar issues. K’taka entertainment cess worries multiplexes, OTTs The Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, introduces a 2% cess on movie tickets and OTT subscriptions to support film workers and cultural activists. Industry stakeholders are concerned this additional levy will burden the struggling entertainment sector, potentially leading to increased prices for consumers and a negative impact on business. There is apprehension that Karnataka's move could prompt similar legislations in other states, further affecting cinemas and streaming platforms across India. WWW.THENEWSINSIGHT.COM Issue No. 1 Global August 5 2024 What is going wrong for intel? Intel is grappling with significant challenges as it reported a net loss of $1.6 billion on August 1st, with sales down by 1% year-on-year, contrasting sharply with a $1.5 billion profit in the same period of 2023. Strategic Pivot to AI and Foundry Services:CEO Pat Gelsinger is focusing on transitioning to AI chips and expanding foundry services, aiming to become the world's second-largest foundry by 2030. Competitive Disadvantages and Market Shifts:Intel faces intense competition from Nvidia and AMD, especially in the AI chip market, and struggles with past missed opportunities in mobile-phone chips and the rise of fabless competitors. Warren Buffett’s Berkshire Hathaway slashes stake in Apple Warren Buffett's Berkshire Hathaway slashed its Apple stake by over 49%, causing Apple shares to drop more than 5% on Monday amid a global sell- off. Buffett has been on a massive selling spree, offloading over $75 billion in equities in the second quarter, raising Berkshire’s cash pile to $277 billion. The magnitude of the second-quarter sale suggests factors beyond tax-saving motivated the reduction of the Apple stake, which had grown to be half of Berkshire's equity portfolio. WWW.THENEWSINSIGHT.COM  Issue No. 1 Deals,Tech & Startups August 5 2024 Startups boost Esops Leading up to listing. The Indian market has been showing a secular upward trend LTI Introduction Before IPO: 54% of companies that went public in the last three fiscal years introduced long-term incentives (LTIs) in the form of stock grants four years before an IPO. Types of Pre-IPO LTI Practices: The study identifies three types of pre-IPO LTI practices: early stock grants by tech startups, stock grants by private equity-backed companies to drive successful listings, and stock grants by promoter-backed companies close to IPO filing. Equity Grants for Founder CEOs:Founder CEOs in tech- product/e-commerce companies received equity grants worth 150 times more than those given to other CEOs Spread of ESOP Pools:While promoter-led companies like Mankind Pharma and Unicommerce concentrated ESOP pools among top CXOs, companies like Swiggy and Zomato spread them to include mid-management India Inflection AIF hits first close at ₹1,000 Crore Launch of Bharat Value Fund: India Inflection Opportunity Trust (IIOT), managed by Pantomath Capital Management, has launched its second Alternative Investment Fund (AIF) called Bharat Value Fund, with a targeted corpus of ₹2,000 crore. Successful First Close: The fund has already secured commitments of over ₹1,000 crore, activating its green shoe option in the first close, and bringing its assets under management (AUM) to over $250 million. Investment Focus: The Bharat Value Fund aims to support Indian entrepreneurs in the mid-market core economy segment, focusing on sustainable growth, import substitution, exports, and rural consumption. Previous Fund Success: IIOT's first fund, the India Inflection Opportunity Fund (IIOF), raised ₹500 crore and was fully deployed within eight months. It achieved significant milestones, including a 10x valuation exit and returning over 60% of the invested amount to its investors. WWW.THENEWSINSIGHT.COM  Issue No. 1 Mint Money August 5 2024 Climate crisis is coming for your sambar Declining Pulse Availability: The annual per capita availability of pulses in India fell from 25.7 kg in 1956 to 19.6 kg in 2022, despite increased production, due to higher demand outpacing supplies. Failed Innovations: Research projects to develop high-yielding and resilient pulse varieties, like 'Pusa Arhar-16', faced setbacks and discontinuations due to susceptibility to pests and other issues. Impact of Climate Change: Pulses are highly sensitive to temperature, sunlight, and moisture fluctuations, leading to inconsistent production and increased vulnerability to adverse weather. Future Prospects: There is hope for the future with ongoing research on hybrid varieties and efforts to enhance the resilience and productivity of pulse crops against climate challenges and pests. How are supply dynamics driving the market boom? Strong Equity Demand and Inflows: Equity mutual fund inflows surpassed ₹45,000 crore in June, with SIPs growing significantly over the past decade, contributing to high market capitalization and expanding market multiples. Increased Supply from Stake Sales and IPOs: Company promoters and private equity firms sold stakes worth ₹60,000 crore in June, with significant IPO and QIP volumes expected, highlighting an increasing supply response to strong demand. Market Dynamics and Promoter Divestments: High market multiples have prompted significant stake sales by promoters and private equity firms, with ongoing trends suggesting continued divestments and a balance between demand and supply in the market. WWW.THENEWSINSIGHT.COM  Issue No. 1 Mark To Market August 5 2024 China's economy keeps gliding on just one engine Economic Challenges: China's economy faces weak domestic consumer demand and a struggling property market despite improvements in factory output and exports. Geopolitical Uncertainties: Rising geopolitical tensions with the US and Europe, including increased tariffs on Chinese electric vehicles, add to the economic challenges. Government Transition Efforts: The Chinese government is investing in renewable energy, digital financial services, and advanced technologies to transition to high-quality growth, but these efforts haven't fully offset the slowdown in traditional growth sectors. How are supply dynamics driving the market boom? Strong Equity Demand and Inflows: Equity mutual fund inflows surpassed ₹45,000 crore in June, with SIPs growing significantly over the past decade, contributing to high market capitalization and expanding market multiples. Increased Supply from Stake Sales and IPOs: Company promoters and private equity firms sold stakes worth ₹60,000 crore in June, with significant IPO and QIP volumes expected, highlighting an increasing supply response to strong demand. Market Dynamics and Promoter Divestments: High market multiples have prompted significant stake sales by promoters and private equity firms, with ongoing trends suggesting continued divestments and a balance between demand and supply in the market. WWW.THENEWSINSIGHT.COM Issue No. 2 GL Bajaj August 6 2024 THE NEWS INSIGHT Economy & Policy Rice export ban could be lifted: Niti Aayog’s Chand Government is planning to remove the export ban from non-basmati rice in view of bountiful rains and better paddy cultivation. Government imposed 20% duty on export on non-basmati rice to increase the local supplies of the rice within the country. Kharif showing rice has increased 14% from the previous year touching 2.77 million hectare this year. India’s rice export fell 6.5% in FY24 to $10.42 billion from $11.14 billion in the previous fiscal year. Bill tabled to promote ease of biz in oil and gas E&P sector Bill tabled to promote ease of biz in oil and gas the ministry is proposed to introduce “petroleum lease”. The government is targeting to install 500GW of non-fossil power generation capacity by 2030. The bill purposes to strengthen petroleum operations through rules framed for governing various functional aspects, as grants of leases or license Extension or renewal,sharing of production and processing facilitates including infrastructure and safety at oilfields. WWW.THENEWSINSIGHT.COM Issue No. 2 Global August 6 2024 Bangladesh's PM Sheikh Hasia resigns after weeks of protests. Bangladesh PM Sheikh Hasina resigned on August 5, 2024, after weeks of protests that began with student rallies against a government job quota system and escalated into violent unrest, resulting in nearly 300 deaths. The government imposed a military curfew to suppress the protests, but the situation worsened. Hasina fled to India after protesters stormed her residence, and the Bangladeshi military has formed an interim government, promising to investigate the killings and restore order. India used to Asian changes,to rework ties with DHAKA Political Change in Bangladesh: Prime Minister Sheikh Hasina has been ousted by protests, leading to potential changes in leadership and policy direction, with a new coalition government likely comprising the BNP and Jammat-e-Islami. Impact on India-Bangladesh Relations: The political upheaval may significantly affect the close relationship cultivated between India and Bangladesh during Hasina's tenure, impacting collaborations on infrastructure, trade, and economic cooperation. India's Strategic Re-Evaluation: In response to the leadership change, India may need to reassess its strategies and initiatives aimed at fostering a favorable image and strengthening ties with Bangladesh, considering the new government's potentially different priorities. WWW.THENEWSINSIGHT.COM Issue No. 2 Corporate August 6 2024 Fear stalks the Street again, volatility hits a 9-year high Highest Volatility in Nine Years: Indian financial markets are experiencing their highest levels of volatility in nearly nine years, with dramatic swings in stock prices. Investor Advice: Investors are advised to stay vigilant, consider risk management strategies, and maintain diversified portfolios to mitigate the impact of market volatility. Investor Advice: Investors are advised to stay vigilant, consider risk management strategies, and maintain diversified portfolios to mitigate the impact of market volatility. Byju’s CEO Files Caveat Before SC on Creditor Dispute. Byju's CEO has filed a caveat with the Supreme Court to ensure notification before any court ruling on a creditor dispute. The caveat aims to protect Byju's interests and influence judicial decisions related to creditor issues. Stakeholders should monitor the case closely due to potential implications for Byju's financial stability and ongoing operations. WWW.THENEWSINSIGHT.COM Issue No. 2 Deals,Tech & Startups August 6 2024 Acko’s next big bet is a $370-bn industry Expansion into Healthcare: Acko, a digital insurer known for auto insurance, is shifting focus to healthcare services, aiming for this segment to surpass its auto business. The acquisition of OneCare is central to this strategy. Healthcare Ecosystem Development: Acko plans to integrate healthcare services with insurance claims, partnering with healthcare providers to offer a comprehensive range of services from prevention to recovery. Market Potential: The healthcare sector in India is valued at $372 billion, growing at a 21% compound annual growth rate since 2014, presenting significant growth opportunities for Acko. Current Business Metrics: Acko's health insurance already makes up nearly half of its premiums, with corporate health insurance accounting for 44%. Despite revenue growth, the firm is experiencing rising losses due to increased expenses. WWW.THENEWSINSIGHT.COM  Issue No. 2 Mint Money August 6 2024 How a consulting role can slash your taxable income by up to 50% Tax Advantages: Transitioning from a full-time role to consulting can offer tax benefits, such as opting for the presumptive taxation scheme under Section 44ADA, which allows consultants to declare 50% or more of their gross revenue as taxable income. Consulting vs. Employment: Simply renaming a job role as "consultant" without changing job conditions may still be treated as employment for tax purposes. Genuine consulting roles often involve flexibility and a change in responsibilities compared to full-time employment. Other Considerations: While consulting can provide higher earnings and tax benefits, it comes with trade-offs, including loss of employee benefits (like provident fund and medical insurance) and increased compliance responsibilities (like GST registration and filing). OVERLOOKED RISKS: WHY YOU SHOULD VET YOUR BROKER Verify Qualifications: While financial institutions verify your credentials, many people fail to scrutinize the qualifications of their investment advisors, brokers, or financial influencers. It’s crucial to ensure these individuals are certified and accountable. Risks of Free Advice: Free financial advice often comes with hidden costs and risks. Platforms providing free information may profit regardless of your losses, and many individual traders experience significant losses, as evidenced by SEBI data. Need for Professional Guidance: Investors should seek advice from certified professionals rather than relying on free or informal sources. Qualified advisors provide accountability and informed guidance, which is essential for making sound financial decisions. WWW.THENEWSINSIGHT.COM Issue No. 2 Mark To Market August 6 2024 Slow deposits not a drag for SBI Deposit vs. Advance Growth: The State Bank of India (SBI) experienced slower deposit growth (8% year-on-year) compared to advances (16% year-on-year) for Q1FY25, in contrast to peers like ICICI Bank and Axis Bank, which saw higher deposit growth. Strategic Reasons for Slower Deposit Growth: SBI's lower net loan- deposit ratio (76%) and excess statutory liquidity ratio (SLR) allow it to avoid aggressive deposit gathering, relying instead on its substantial holdings in government securities to support loan growth if needed.Financial Performance Financial Performance and Outlook: SBI's net interest margin (NIM) declined slightly to 3.35%, but absolute net interest income rose. Core pre-provisioning operating profit grew by 11.8%, while provisions for NPAs increased significantly. The bank targets a NIM range of 3.2-3.4% and advance growth of 15%, but brokerages forecast a potential drop in return on equity (RoE) for FY25. Rupee closes at all-time low of 84.03 against dollar Rupee's All-Time Low: The Indian rupee fell by 31 paise to a record low of 84.03 against the US dollar, influenced by global market sell-offs and rising geopolitical tensions. Market Impact: The decline followed a sharp downturn in Indian equity markets and significant foreign fund outflows, with the rupee trading between 83.78 and 84.03 during the session. Future Outlook: The rupee is expected to continue trading with a negative bias due to global risk aversion, though support might come from a weak US dollar, declining crude oil prices, and potential Reserve Bank interventions. WWW.THENEWSINSIGHT.COM Issue No. 3 GL Bajaj August 7 2024 THE NEWS INSIGHT Economy & Policy LOW COST BATTERIES NEEDED TO PUSH E.V. ADOPTION IN INDIA The government push for localization in battery manufacturing will progress gradually, and will increase E.V. adoption then they got decrease in E.V. cost in the country. Lithium batteries account for nearly 40% of the electric vechiles the price of a battery for three wheeler is around $120per kilo watt. E.V. adoption & reach its target of 30% E.V. penetration by 2030 right now, the penetration level is roughly 5-10% and that being taken up to 30% requires a lot of work. CENTRE TO BROADEN INCOME CRITERIA FOR URBAN HOUSING AID The government is expected to come out with fresh guidelines and new income slabs for middle income groups(MIG) for building houses in urban areas under Pradhan mantri awas yojana scheme. People with annual income 6-12 lakh are considered to be in the MIG-1 category and people with annual income from 12-18 Lakh are considered MIG-2 under the housing scheme. Under this house scheme houses should constructed for 10 million urban houses and 20 million rural houses with estimated investment of Rs.10 trillion. WWW.THENEWSINSIGHT.COM Issue No. 3 Global August 7 2024 Google’s antitrust loss set to reshape search and mobile industries Increased Competition: Google's reduced dominance may lead to increased competition in the search engine market, with companies like Microsoft's Bing and DuckDuckGo potentially gaining market share. New Search Engine Options: Users may see new search engine options, such as a "choice screen" that allows them to select from multiple search engines, potentially reducing Google's market share. Shift in Mobile Industry Revenue: The ruling may lead to a shift in revenue for mobile companies like Apple and Samsung, which currently receive billions of dollars from Google for making Google Search the default search engine on their devices. Market selloff upends Federal Reserve’s rate-cut calculus Fed's dilemma: The market selloff has put the Fed in a tough spot, as it must balance inflation concerns with economic growth worries. Rate cut uncertainty: The selloff has made it unclear whether the Fed will cut rates to stimulate growth or keep them steady to combat inflation. Data-driven decision: The Fed's next move will depend on economic data, making upcoming inflation and growth reports crucial in determining the direction of interest rates. WWW.THENEWSINSIGHT.COM Issue No. 3 Corporate August 7 2024 Vedanta's Cost-Cutting Measures Comprehensive cost-cutting program: Vedanta has launched a comprehensive cost-cutting program aimed at reducing operational expenses and improving efficiency across its businesses. Targeted savings: The program aims to achieve significant cost savings through various initiatives, including process optimization, supply chain rationalization, and reduction of overhead costs. Focus on sustainability: The cost-cutting measures are designed to ensure the long-term sustainability of Vedanta's businesses, enabling the company to navigate challenging market conditions and maintain its competitive edge. SEBI's Relaxation of Entry Barriers for RIAs and Research Analysts Simplified registration process: SEBI has relaxed entry barriers for Registered Investment Advisors (RIAs) and Research Analysts by simplifying the registration process, reducing costs, and making it more accessible. Increased participation: The move aims to increase participation in the investment advisory and research analyst space, promoting a more competitive and diverse market. 3. Enhanced investor protection: SEBI's relaxation of entry barriers is also expected to enhance investor protection by increasing the availability of high-quality research and advisory services, ultimately benefiting investors. WWW.THENEWSINSIGHT.COM Issue No. 3 Deals,Tech & Startups August 7 2024 GenAI to transform banking: Deutsche Bank CTO Leukert GenAI adoption: Deutsche Bank's CTO, Bernd Leukert, believes that Generative AI (GenAI) will transform the banking industry, leading to increased adoption and implementation. Improved customer experience: Leukert expects GenAI to enhance customer experience through personalized services, automated processes, and more efficient issue resolution. Increased efficiency and innovation: GenAI is expected to drive innovation, reduce costs, and improve operational efficiency in banking, allowing for more focus on high-value tasks and customer-centric services. Redbus to enter EV financing space Strategic expansion: Redbus is diversifying its business by entering the Electric Vehicle (EV) financing space, leveraging its existing customer base and infrastructure. Sustainable focus: By financing EVs, Redbus aims to contribute to the growth of sustainable transportation, reducing carbon emissions and supporting eco-friendly initiatives. New revenue stream: The EV financing venture presents a new revenue opportunity for Redbus, capitalizing on the increasing demand for electric vehicles and government incentives promoting sustainable transportation. WWW.THENEWSINSIGHT.COM  Issue No. 3 Mint Money August 7 2024 From profit to penalty: The perils of trading in your employer’s stock Risk of insider trading allegations: Trading in your employer's stock can lead to allegations of insider trading, resulting in severe legal and financial consequences. Conflicts of interest: Employees may have access to sensitive information, creating a conflict of interest when trading in company stock, and potentially leading to penalties. Disclosure and compliance requirements: Employees must comply with strict disclosure requirements and trading policies when dealing with company stock, failure to do so can result in fines, penalties, and reputational damage. ‘Usually profitable to buy S&P post 5% drop’ Historical trend: Analysis shows that buying the S&P 500 after a 5% drop has been a profitable strategy in the past, indicating a potential buying opportunity. Mean reversion: The S&P 500 has historically exhibited mean reversion tendencies, suggesting that prices tend to revert to their average after a significant drop. Long-term perspective: This strategy requires a long-term perspective, as it may take time for the market to recover and for the investment to become profitable, emphasizing the importance of patience and discipline. WWW.THENEWSINSIGHT.COM  Issue No. 3 Mark To Market August 7 2024 Dollar’s fall gives Asian central banks space for rate cuts Weaker dollar eases pressure: The decline in the US dollar reduces pressure on Asian currencies, giving central banks in the region room to cut interest rates without worrying about capital outflows. Monetary policy flexibility: With a weaker dollar, Asian central banks can now consider rate cuts to stimulate their economies, without fearing a sharp depreciation of their currencies. Boost to economic growth: Rate cuts in Asia could provide a much-needed boost to economic growth, as lower borrowing costs can increase consumption, investment, and overall economic activity. Ola Electric draws $1.8 bn in IPO bids Successful IPO: Ola Electric's IPO drew $1.8 billion in bids, with the issue subscribed 4.3 times, making it India's biggest IPO this year, and giving the company a valuation of about $4 billion. Investor interest: The IPO saw strong interest from institutional investors, with their portion oversubscribed 5.3 times, while retail investors bid for 3.9 times the shares on offer, indicating confidence in the company's growth prospects. Challenges ahead: Despite the successful IPO, Ola Electric faces challenges, including rising costs, a path to profitability, and the need for significant capital investment, particularly in its battery cell manufacturing unit, which is crucial for its long-term success. WWW.THENEWSINSIGHT.COM Issue No. 4 GL Bajaj August 8 2024 THE NEWS INSIGHT Economy & Policy Lok sabha clear finance bill Restoration of Inflation Adjustment Benefit: The Finance Bill for FY25 has restored the inflation adjustment benefit for taxing gains from property sales, which was previously removed. Choice Between New and Old Schemes: Taxpayers now have the option to choose between two schemes for calculating capital gains tax: - New scheme: 12.5% tax rate without indexation - Old scheme: 20% tax rate with indexation Simplification of Capital Gains Tax Structure*: The amendment aims to simplify the capital gains tax structure by providing taxpayers with a clear choice between the two schemes, allowing them to pay the lower amount of tax. This change is expected to benefit taxpayers and reduce complexity in tax calculations. Bad bank aims to buy 2tn of stressd asset by FY26 Government-backed Bad Bank: The National Asset Reconstruction Company Ltd (NARCL) is a government-backed entity aimed at addressing non- performing assets (NPAs). Target by FY26:NARCL plans to take over stressed assets worth ₹2 trillion by FY26. Acquisition so far: By July 2024, NARCL acquired 18 accounts with outstanding loans of ₹62,000 crore. Associated entities:Indian Debt Resolution Company Ltd (IDRCL) is partnered with NARCL for the resolution process. *Swiss Challenge Method in this process. NABFID:The National Bank for Financing Infrastructure and Development (NABFID) has been sanctioned loans totaling ₹3.2 trillion for FY26, with ₹25,516 crore sanctioned by FY24. WWW.THENEWSINSIGHT.COM Issue No. 4 Global August 8 2024 The biggest spectacle at the Olympics is everyone wearing glasses. Growing Prominence of Athletes Wearing Glasses: The article highlights the increasing visibility of athletes wearing glasses at the Olympics, showcasing how eyewear has become a notable feature in sports. Technological Advancements in Sports Eyewear: The piece mentions specialized eyewear, such as Kim Yeji’s glasses with a lens and mechanical iris, demonstrating the technological advancements in sports eyewear that cater to specific athletes’ needs. Changing Perception and Acceptance of Glasses in Sports: The article notes the growing acceptance and visibility of glasses among athletes, influencing popular culture and contributing to a shift in perception, where eyewear is no longer seen as a hindrance, but rather as a tool to enhance performance.The biggest spectacle at the Olympic is everyone wearing glasses. Muhammad Yunus to take oath as interim Bangladesh Pm today The article reports that Nobel laureate Muhammad Yunus is set to take oath as the interim Prime Minister of Bangladesh. This follows the resignation of Prime Minister Sheikh Hasina amid weeks of violence. Yunus has called for calm and unity among the people to rebuild the nation. The military has expressed support for the interim government led by Yunus. The article also mentions that Yunus was recently acquitted in a labor law case and discusses the political context and challenges facing Bangladesh. WWW.THENEWSINSIGHT.COM Issue No. 4 Corporate August 8 2024 RIL green ambition Diversification into Renewable Energy: RIL has been aggressively investing in renewable energy sources like solar and wind power. This diversification aims to reduce carbon emissions and create a sustainable energy portfolio. Focus on Hydrogen: The company is also exploring opportunities in the hydrogen economy, considering it a crucial clean energy source for the future. Circular Economy Initiatives: RIL has been emphasizing recycling and waste management practices to promote a circular economy, reducing its environmental footprint. Tata Motors aims EV prices same as rivals’ regular cars Market Penetration and Adoption: By pricing EVs on par with ICE vehicles, Tata Motors aims to remove one of the biggest barriers to EV adoption: the higher upfront cost. Economies of Scale and Cost Reduction:To achieve price parity, Tata Motors will need to focus on reducing production costs through economies of scale, supply chain efficiencies, and technological advancements. Regulatory and Environmental Impact: Competitive pricing of EVs aligns with global and local regulatory trends favoring environmentally friendly transportation solutions. WWW.THENEWSINSIGHT.COM Issue No. 4 Deals,Tech & Startups August 8 2024 PB Fintech to focus on minority investments New Investment Approach: PB Fintech is adopting a new strategy, focusing on minority investments (22-30% stake) to avoid excessive control and preserve founder-led companies. MyLoanCare Experience: The company learned a valuable lesson from its experience with MyLoanCare, where taking a 70% stake led to the founder's exit, highlighting the importance of balanced equity control. Strong Financial Performance: Despite challenges, PB Fintech reported its third consecutive profitable quarter, with significant revenue growth (52%) and sustained adjusted EBITDA positivity, demonstrating resilience and adaptability. Softbank errs on the side of caution after Q1 profit Cautious Investment Approach: SoftBank Group is being selective and careful with its investments, focusing on Vision Fund II, after facing losses in the previous year. Mixed Financial Performance: SoftBank reported a first-quarter profit of ¥10.5 billion, aided by gains in some tech stocks, but its Vision Fund 2 made a loss of $21.9 billion, highlighting the challenges in its investment portfolio. Strategic Shift and Focus Areas: SoftBank is diversifying its investments, reducing its stake in Alibaba, and focusing on Europe and AI technology, with plans to build a robust pipeline of AI-based companies, and expecting growth from IPO-bound companies in its portfolio, including Indian startups. WWW.THENEWSINSIGHT.COM  Issue No. 4 Mint Money August 8 2024 How Sebi’s new rules could transform advisory sector Relaxation of Qualification Requirements: Sebi proposes to ease education and experience criteria for registered investment advisors (RIAs) and research analysts, aiming to increase the number of RIAs in India. Simplified Certification Process: Sebi plans to streamline the certification process, requiring only initial certifications and subsequent renewals to address incremental changes and developments. Increased Flexibility and Scope_: The proposals allow RIAs to provide financial planning for any legal asset class, advise on unregulated products (under certain conditions), and switch between fixed and percentage fees, aiming to empower RIAs and transform the advisory sector. Senior citizen’s guide to gifting property: Essential safeguards Legal Documentation: When gifting property, execute a gift deed in the presence of two witnesses and register it with the sub-registrar’s office. Ensure to pay the applicable stamp duty. Safeguards: Include clauses in the gift deed to protect your interests, such as the right to reside in the property or conditions on your daughter providing for your basic needs. Will Considerations: If you have a Will, amend it to reflect the gifted property, ensuring it’s clear the property will not be part of your estate upon your demise. WWW.THENEWSINSIGHT.COM Issue No. 4 Mark To Market August 8 2024 Airtel’s Q1: Data up, Arpu stuck Data Usage Growth, Stagnant ARPU: Bharti Airtel's Q1 FY25 saw a significant rise in data usage per customer, similar to rival Reliance Jio, but this increase did not translate into a significant rise in Average Revenue Per User (ARPU), which remained relatively flat. Financial Performance: Airtel’s operating free cash flow spiked, and the company maintained a steady EBITDA. However, despite increased data consumption, ARPU growth was minimal, and profit before tax remained flat. Future Outlook on 5G Monetization: Airtel’s future ARPU growth is expected to be driven by the monetization of 5G services. The company's management is focusing on improving efficiency and potentially substituting debt with higher market capitalization to boost financial performance. Rupee slips to record low due to $ demand Rupee Hits All-Time Low: The Indian rupee fell to a record low of 83.9725 against the US dollar, closing at 83.9550, its weakest level ever, due to carry trade unwinding and dollar demand from importers. RBI Intervention: The Reserve Bank of India (RBI) intervened by selling dollars to limit losses and prevent excessive speculation against the rupee, with traders expecting the RBI to prevent sharp declines. Pressure on Rupee: The rupee is expected to remain under pressure in the near term due to investors exiting carry trades, but the RBI is likely to manage the decline to prevent panic in the market. WWW.THENEWSINSIGHT.COM  Issue No. 5 GL Bajaj August 9 2024 THE NEWS INSIGHT Economy & Policy BASE EFFECT LIKELY TO LOWER JULY INFLATION TO 3.6% >>India’s retail inflation is likely to have slipped below. Reserve Bank of India (RBI)medium term target of 4.0% in July the first time since September 2019. >>The consumer price index(CPI) inflation is expected to drop to 3.6% in July from 5.1% in June, primarily due to statical effect of a high base last year. >>RBI governor Shashikant das on Thursday reiterated concerns about high food inflation potentially spilling over into core inflation, with the RBI maintaining its FY inflation projection at 4.5%. MID SIZE FIRMS MUST STEP UP TO ACCELARATE INDIA’S GROWTH >>In union budget FY25 shows government focuses on more sustainable route for secular economic growth. >>The government plans to help small & medium ones through various schemes by providing them up to 100 crores through self-finance guarantee fund & doubling the limit of mudra loan to 20 lakh. >>100 to 200 companies just below to 10 companies now step up their investment to accelerate economic growth. WWW.THENEWSINSIGHT.COM  Issue No. 5 Global August 9 2024 NASA says Starliner astronauts could return with SpaceX—next year NASA has announced that astronauts assigned to Boeing’s Starliner mission might return to Earth aboard a SpaceX capsule next year. This unusual arrangement highlights ongoing delays and technical challenges with Boeing’s Starliner program. Originally, the Starliner was intended to both transport astronauts to the International Space Station (ISS) and bring them back to Earth. However, due to delays in Starliner’s readiness, NASA is considering utilizing SpaceX’s Crew Dragon capsule for the return journey to ensure the astronauts' timely and safe return. The collaboration between Boeing and SpaceX, two of NASA's key commercial partners, underscores NASA's commitment to maintaining continuous human presence on the ISS and ensuring astronaut safety despite program setbacks. This decision also reflects the flexibility in NASA's commercial crew program, which aims to maximize resources and maintain operational schedules by leveraging available technologies from different partners. The final decision will depend on the progress of Starliner’s development and the availability of SpaceX's Crew Dragon for the mission timeline. Amazon’s $4 bn investment in AI startup Anthropic comes under U.K. scrutiny Amazon's $4 billion investment in the AI startup Anthropic is now under scrutiny by U.K. regulators. The review focuses on potential antitrust concerns and the impact on competition within the AI industry. U.K. authorities are examining whether the investment could lead to anti- competitive practices or give Amazon undue influence over AI technologies. This scrutiny reflects growing global concerns about the concentration of power in the tech sector and its implications for market competition and innovation. Amazon and Anthropic will need to address these regulatory concerns to proceed with their investment plans. WWW.THENEWSINSIGHT.COM  Issue No. 5 Corporate August 9 2024 SBI’s incoming chairman Setty has his task cut out The incoming chairman of the State Bank of India (SBI), Setty, faces significant challenges as he takes on his new role. With the Indian banking sector navigating economic uncertainties and regulatory changes, Setty's leadership will be crucial in steering SBI through these complexities. Key tasks include addressing non- performing assets (NPAs), enhancing digital transformation, and maintaining financial stability amid fluctuating interest rates and inflation. Additionally, Setty will need to focus on expanding SBI’s reach in underserved markets and strengthening the bank's position in the competitive financial landscape. His strategic decisions will be vital in ensuring SBI's continued growth and success NCLT asks IIHL to deposit ₹2,750 cr The National Company Law Tribunal (NCLT) has directed IndusInd International Holdings Ltd (IIHL) to deposit ₹2,750 crore as part of its ongoing legal proceedings. This decision comes amid a dispute involving IIHL's acquisition activities and financial obligations. The tribunal's order aims to ensure that IIHL meets its financial commitments and provides a safeguard for stakeholders involved in the case. This deposit is intended to protect the interests of creditors and other parties affected by the proceedings. As the case unfolds, IIHL will need to comply with the tribunal's directives to avoid potential legal and financial repercussions WWW.THENEWSINSIGHT.COM  Issue No. 5 Deals,Tech & Startups August 9 2024 Smartwatch sales fall on innovation hiccups Smartwatch sales are declining due to a slowdown in innovation, leading to reduced consumer interest. The market has matured, with many early adopters already owning devices, resulting in a natural plateau in demand. Recent models lack significant new features, making consumers less likely to upgrade. Increased market saturation and competition have also led to price pressures. While health and fitness features were initially popular, they haven't seen much innovation recently. Economic factors, such as inflation, have made consumers more cautious with their spending, opting for essential purchases instead. Persistent issues like battery life and compatibility problems also deter potential buyers. To reverse this trend, smartwatch manufacturers need to introduce new innovations, enhance user experiences, and expand the functionality of their devices to reignite consumer interest and drive market growth. Freo parent MWYN Tech aims to clock profit by end-FY25 MWYN Tech, the parent company of Freo, is targeting profitability by the end of the fiscal year 2025. This goal comes amid a challenging economic landscape and increasing competition in the fintech sector. MWYN Tech is focusing on expanding its product offerings and improving operational efficiencies to achieve this milestone. The company is leveraging its digital banking platform, Freo, to drive growth by attracting more users and enhancing its services. Freo has been investing in innovative financial solutions, such as credit products, savings tools, and personalized financial advice, to differentiate itself in the market. MWYN Tech's strategy includes optimizing costs, exploring strategic partnerships, and tapping into new markets to boost revenue streams. The company is also investing in technology and infrastructure to support its growth ambitions and ensure a seamless customer experience. By focusing on these strategic initiatives, MWYN Tech aims to strengthen its financial position and establish a sustainable path to profitability by FY25. This move reflects the company's commitment to delivering value to its stakeholders and achieving long-term success in the competitive fintech industry WWW.THENEWSINSIGHT.COM  Issue No. 5 Mark To Market August 9 2024 Ticking time bomb: Have high valuations triggered cash pile-up? High valuations in the market have led to a significant cash pile-up among investors, creating a "ticking time bomb" scenario. Investors are cautious about allocating capital due to inflated valuations, economic uncertainty, and rising interest rates. As a result, large amounts of cash are being held back from investment as investors await more reasonable pricing and better opportunities. This situation risks market stagnation and reduced capital flow, impacting innovation and growth. To navigate this landscape, investors and companies must balance risk with long- term return opportunities Data privacy rules in limbo, leaving the tech industry on edge Uncertainty over data privacy regulations is leaving the tech industry on edge. As governments around the world debate and update privacy laws, companies face challenges in ensuring compliance with varying and evolving rules. This regulatory limbo creates risks for tech companies that rely on user data for services and innovation, as non-compliance can lead to hefty fines and reputational damage. The lack of clear guidelines also complicates cross-border data transfers and hampers the development of new technologies. To navigate this uncertain landscape, tech companies are investing in robust data protection measures and advocating for clearer, more consistent global privacy standards WWW.THENEWSINSIGHT.COM