Author Archives: Sridhar P

Sensex Falls 318 Points as Auto, IT, and PSU Bank Stocks Drag Market

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Indian equity markets closed lower on Wednesday, with the BSE Sensex dropping 318.76 points, or 0.39%, to settle at 81,501.36, as pressure on auto, IT, and PSU banking stocks outweighed gains in other sectors. The broader NSE Nifty also slipped, ending the session at 24,971.30, down 86.05 points, or 0.34%.

Midcap and smallcap stocks displayed mixed performance. The Nifty Midcap 100 index declined by 141.40 points, or 0.24%, to close at 59,451.85, while the Nifty Smallcap 100 index managed to post a slight gain, closing at 19,304.90, up 2.85 points, or 0.01%. The Nifty Bank index, representing financial stocks, fell by 104.95 points, or 0.20%, ending at 51,801.05.

Auto, IT, and PSU Banks Under Pressure

Sectoral performance reflected a mixed bag, with some sectors showing resilience while others dragged the indices down. The rally was driven by gains in sectors such as financial services, real estate, energy, infrastructure, and oil & gas. However, the overall market sentiment remained subdued as key sectors like auto, IT, public sector banks (PSU), pharmaceuticals, fast-moving consumer goods (FMCG), and metals faced heavy selling pressure.

Despite the negative closing, market breadth indicated a more balanced scenario. On the BSE, 2,030 shares ended in the green, while 1,930 shares finished in the red. Additionally, 108 shares remained unchanged, indicating a somewhat neutral stance in the broader market.

Top Gainers and Losers

In the Sensex pack, a handful of stocks managed to defy the downward trend. Leading the gainers were HDFC Bank, Asian Paints, Bharti Airtel, and State Bank of India (SBI), all of which posted modest gains.

On the losing side, major stocks like Mahindra & Mahindra (M&M), Infosys, JSW Steel, Tata Motors, Titan, Kotak Mahindra, and ITC dragged the indices lower. Infosys and JSW Steel emerged as the biggest losers, weighing heavily on the Sensex.

FIIs and DIIs Activity

Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth ₹1,748.71 crore on Tuesday. This marked a consistent trend of selling by foreign investors, adding to the bearish sentiment in the market.

On the domestic front, however, Domestic Institutional Investors (DIIs) countered the FII sell-off by increasing their buying activity. DIIs bought equities worth ₹1,654.96 crore on the same day, providing some support to the market and preventing a deeper correction.

Market Sentiment 

Market experts pointed to a cautious trading atmosphere, with concerns over a potential downgrade in FY25 earnings growth affecting investor sentiment. Analysts noted that fears of a slowdown in earnings expansion during Q2FY25, due to weak demand and fluctuating input costs, have led to a negative bias in the market.

“Investors are wary of premium valuations, especially in light of the uncertain earnings outlook for the coming quarters,” said a market analyst. “With demand remaining tepid and volatility in raw material prices, earnings growth is expected to remain slow, which is impacting confidence in the market’s ability to sustain current valuations,” the expert added.

Gold Prices and Global Cues

Amidst the volatility in equity markets, gold prices saw a rise, with traders seeking safe-haven assets. On the Multi Commodity Exchange (MCX), gold prices surged by ₹350, reflecting the global uptick in gold prices. On the international front, Comex gold traded above $2,675, up 0.55%, as traders anticipated that the U.S. Federal Reserve would maintain its stance on interest rate cuts.

Global markets were also closely watching developments in the U.S. economy, with expectations that the Federal Reserve’s future monetary policies would continue to influence market behavior. The outlook for interest rates and inflation in major economies remains a crucial factor for both equity and commodity markets.

While sectors like financial services, energy, and real estate show some promise, weak performance in key areas like IT, auto, and PSU banks could weigh on overall market performance. Traders and investors are likely to remain cautious as they assess the evolving economic landscape both domestically and globally.

Reliance Industries to close Disney India acquisition by Q3 next year

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Reliance Industries Ltd is set to finalize its merger with Disney’s India operations by the close of Q3 FY25, forming India’s largest media conglomerate, valued at over ₹70,000 crore ($8.5 billion), according to regulatory filings.

With approvals from the Competition Commission of India (CCI) and the National Company Law Tribunal, Reliance Industries confirmed in its latest quarterly report that the regulatory hurdles for the merger have been cleared.

“The merger of TV18 Broadcast Ltd. (TV18) and e-Eighteen.com Ltd. (E18) with Network18 Media & Investments Ltd. (Network18) was sanctioned by the National Company Law Tribunal, Mumbai Bench, and became effective on October 3, 2024,” the company said in its Q2 results.

The companies are in the process of securing additional required approvals, with the “record date for determining the equity shareholders of TV18 and E18 entitled to receive Network18 equity shares set for October 16, 2024,” the report added.

On September 27, the Indian government approved the transfer of licenses for non-news TV channels from Reliance to Star India, a key step in the merger, according to reports.

Upon completion, Reliance and its affiliates will hold a 63.16% majority stake in the newly merged entity, while Walt Disney will retain a 36.84% shareholding. Reliance has committed to investing ₹11,500 crore ($1.4 billion) to boost the joint venture.

Nita Ambani will chair the new venture, with media honcho Uday Shankar as the vice-chair. The combined company will have two streaming platforms and 120 television channels, including renowned brands like Comedy Central, MTV, Nickelodeon, and Star network channels.

China’s Underground Lab Aims to Unlock Deepest Mysteries of Universe, Begins With Dark Matter

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China has launched a cutting-edge underground laboratory in a bold bid to unravel the universe’s greatest mysteries. The China Jinping Underground Laboratory (CJPL), buried 2,400 meters beneath Sichuan province, is the world’s deepest underground research facility. Its depth shields sensitive experiments from cosmic rays, creating optimal conditions to explore elusive phenomena like dark matter and neutrinos.

The lab’s primary focus is dark matter, which constitutes 85% of the universe’s mass but remains undetected. The next-gen PandaX experiment at CJPL aims to capture rare interactions between dark matter and normal particles. CJPL is also studying neutrinos—lightweight particles crucial to understanding cosmic processes.

China’s investment in CJPL highlights its ambition to lead in scientific research, alongside major projects like the Chang’e lunar missions and its space station, Tiangong. As CJPL advances, global scientists anticipate discoveries that could redefine our understanding of the universe.

The laboratory beneath more than 2,400 meters of solid rock, makes it the deepest underground research facility of its kind in the world. This remarkable depth helps shield the lab from cosmic rays and other background radiation, creating an ideal environment for sensitive experiments that require near-zero interference from external factors.

To investigate dark matter, the lab houses a range of advanced detectors and technologies, including the next-generation PandaX (Particle and Astrophysical Xenon) experiment. PandaX aims to detect the weak interactions between dark matter particles and normal matter by observing tiny flashes of light or electrical signals that might be produced when dark matter collides with atomic nuclei. By conducting these experiments in such a highly shielded environment, scientists hope to capture elusive evidence of dark matter’s existence.

Another major area of focus for the CJPL is the study of neutrinos—extremely lightweight and elusive particles that are produced by nuclear reactions, such as those occurring in the sun or in supernovae. Neutrinos can pass through matter almost undisturbed, making them difficult to detect but crucial to understanding fundamental processes in the universe. The lab’s experiments, such as the Jinping Neutrino Experiment, are designed to capture and study these particles to gain insights into how the universe works on a subatomic level.

Capable of studying , nuclear reactions, gravitational waves 

In addition to its role in dark matter and neutrino research, the Jinping lab has the potential to support a wide range of other scientific endeavors, such as studying rare nuclear reactions, examining the nature of gravitational waves, and exploring potential links between cosmic phenomena and the origins of life on Earth.

As the Jinping Underground Laboratory continues to expand its capabilities, it has the potential to yield groundbreaking discoveries that could transform humanity’s understanding of the universe. Scientists worldwide are watching with great interest, hopeful that this deep-earth facility will shed light on the unseen forces and particles that govern the cosmos.

With its unique design, cutting-edge technology, and ambitious goals, China’s underground lab stands at the forefront of global efforts to answer some of the most profound questions in modern physics and cosmology.

Tractors Hit Bengaluru Roads Again Amid Flooded Streets After Heavy Rain

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Heavy rainfall on Wednesday flooded several areas of Bengaluru, prompting authorities to deploy tractors to assist residents in waterlogged neighborhoods. The weather office has predicted continuous rain throughout Wednesday and Thursday.

The Bruhat Bengaluru Mahanagara Palike (BBMP) arranged two tractors to transport residents in the severely affected Yelahanka area, particularly at the Kendriya Vihar apartments, where water levels rose to around three feet. A help desk was set up on Tuesday evening to provide essential supplies such as drinking water, milk, bread, and biscuits to affected residents.

BBMP Chief Commissioner Tushar Girinath visited the flooded areas, including the Kendriya Vihar Apartments, and monitored the relief measures. “Two tractors have been arranged to help residents move in and out of the apartment complex,” the BBMP said in a statement. Over 20 officers and staff are working on-site to address the situation.

Girinath also visited the Ramanashree California Layout, where officials were instructed to pump out the water. He noted that from Monday to Tuesday, the city received 30 mm of rain, with an additional 60-70 mm recorded on Tuesday alone.

“The northern parts of Bengaluru have been hit hard by the heavy rains. Lakes are full and overflowing, causing flooding in low-lying areas like Yelahanka. This has been a recurring issue, and we are working on measures to drain the water,” Girinath said.

A virtual meeting was held by the Chief Commissioner earlier in the day, where he instructed all officials to visit the affected areas and work on finding long-term solutions to the flooding.

India – Canada ties hit next level of escalation, 6 Canadian diplomats expelled in response

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In a quick response to Canada’s move, India expelled six Canadian diplomats on Monday, just hours after announcing the withdrawal of its High Commissioner and other key officials from Canada. The move comes as relations between the two nations deteriorate, with India citing Canadian Prime Minister Justin Trudeau’s ongoing “hostility” towards New Delhi.

The Ministry of External Affairs (MEA) issued a statement confirming the expulsion of the diplomats, who have been instructed to leave India by 11:59 p.m. on Saturday, October 19. Among those expelled are Stewart Ross Wheeler, Acting High Commissioner, and several senior officials, including Patrick Hebert, Deputy High Commissioner, and First Secretaries Marie Catherine Joly, Ian Ross David Trites, Adam James Chuipka, and Paula Orjuela.

India’s decision was conveyed to Stewart Wheeler, Canada’s Charge d’Affaires in New Delhi, who was summoned to the MEA. Indian officials condemned what they called the “baseless targeting” of their diplomats in Canada, and expressed deep concern for the safety of Indian representatives amidst what they described as a hostile environment fostered by the Trudeau government.

“The actions of the Trudeau government have created an atmosphere of extremism and violence, jeopardizing the safety of Indian diplomats,” the MEA statement said. “We have lost confidence in the Canadian government’s ability to ensure their security, and thus have made the decision to withdraw our High Commissioner and other targeted officials.”

India’s diplomatic retaliation comes after Ottawa labeled Indian diplomats as “persons of interest” in an ongoing investigation, a claim New Delhi has strongly rejected as “preposterous.” In a strongly-worded response earlier in the day, India accused the Trudeau government of “consciously” allowing extremists and separatists to operate freely in Canada, leading to harassment and intimidation of Indian officials and community leaders.

The MEA also warned that India reserves the right to take further action in response to what it perceives as Canadian support for extremism, violence, and separatism aimed at undermining India’s sovereignty.

The diplomatic rift marks a new low in India-Canada relations, with both countries now recalling high-ranking officials as tensions continue to simmer over issues of security and sovereignty.

Elon Musk Among Top Trump Backers with $75 Million Donation, show Federal Filings

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As expected, X owner and billionaire Elon Musk has contributed approximately $75 million to a pro-Donald Trump political group within just three months, according to federal disclosures made public on Tuesday. The contributions highlight Musk’s increasingly pivotal role in aiding Trump’s bid to reclaim the presidency in the upcoming November 5 election.

The donations, funneled through a group called America PAC, are being used to target voters in key battleground states that could determine the outcome of the election. America PAC reported spending roughly $72 million during the July to September period, positioning itself as the most well-funded pro-Trump organization focused on voter outreach.

Musk, the CEO of Tesla and currently the world’s richest person, is the sole donor to the PAC during this period, according to filings with the Federal Election Commission.

While Trump’s campaign has long relied on external groups to handle voter engagement efforts, Musk’s contributions have amplified his influence within Republican political circles. His financial backing has placed him alongside other high-profile conservative donors such as banking heir Timothy Mellon and casino mogul Miriam Adelson.

Musk’s political shift has raised eyebrows, as he has previously stated that he voted for Democratic candidates in past elections. However, the tech mogul publicly endorsed Trump in July and recently appeared with him at a campaign rally in Pennsylvania, signaling his growing alignment with the former president’s agenda.

The sizable donation marks Musk’s entry into the elite class of Republican megadonors. However, recent reports have suggested that his involvement in conservative politics predates this election cycle. According to a Reuters investigation, Musk has quietly supported right-leaning political groups for years before his public endorsement of Trump.

Neither Musk nor America PAC responded to requests for comment on the recent financial disclosures. The PAC is focused on mobilizing irregular voters who support Trump but may not typically turn out on Election Day—a strategy considered high-stakes and resource-intensive for the campaign.

Meet new ‘Phantom of Bombay House’: NRI but holds 18.4% Stake in Tata Sons

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Shapoor Mistry, chairman of the Shapoorji Pallonji Group, leads one of India’s most powerful business dynasties, managing a significant stake in Tata Sons while steering his family’s company through a critical period of transformation. The Mistry family holds an 18.4% stake in Tata Sons, valued at approximately ₹1.52 lakh crore ($130 billion), making them key players in one of India’s largest conglomerates. Yet, despite their deep connections to India, Shapoor Mistry himself is not Indian by nationality—he holds Irish citizenship.

Founded 159 years ago, the Shapoorji Pallonji Group has been a major force in engineering, construction, and infrastructure development. Shapoor Mistry, born in 1964, is the eldest son of Pallonji Mistry, the family patriarch who passed away in 2022, and Patsy Perin Dubash. He has two sisters and a brother, Cyrus Mistry, whose untimely death in a car accident in September 2022 shocked the business world. Shapoor now stands at the helm of a company that generates around $30 billion in annual revenue, managing a sprawling portfolio of businesses.

However, the Mistry family’s wealth is deeply intertwined with their stake in Tata Sons. Pallonji Mistry, Shapoor’s father, earned the nickname “Phantom of Bombay House” due to his quiet yet influential presence at Tata Group’s headquarters. Their relationship with Tata Group peaked in 2012 when Shapoor’s younger brother, Cyrus, was appointed chairman of Tata Sons. However, a highly publicized and contentious boardroom battle led to Cyrus’s ousting in 2016, resulting in one of India’s most dramatic corporate conflicts. This feud between the Mistry family and Tata Trusts led to a prolonged legal battle, putting the spotlight on their close ties with Tata Sons.

The Quiet Billionaire

For Shapoor Mistry, the year 2022 was particularly challenging. In June, his father passed away, marking the end of an era. Just three months later, his brother Cyrus died in a car crash, a personal and professional blow to the family. Together, Shapoor and Cyrus had been working on restructuring the Shapoorji Pallonji Group, which had been facing financial pressure due to high levels of debt. Their plan included selling off non-core assets to stabilize the company’s finances, a strategy that Shapoor continues to implement in the wake of these tragic losses.

In an effort to ensure the group’s long-term resilience, Shapoor has led a reorganization of the company, dividing it into two main entities—S.P. Finance and S.C. Finance—focused on real estate and infrastructure, respectively. This move is aimed at improving cash flow management, particularly in industries where large-scale projects often take years to generate returns. Shapoor’s leadership is now more critical than ever as he navigates both emotional and operational complexities.

But Shapoor Mistry is keen on ensuring that the next generation of the Mistry family continues the legacy. shapoor has already involved his son and his late brother’s sons, Firoz and Zahan Mistry, in key roles within the company. This generational handover is intended to preserve the family’s influence in both Shapoorji Pallonji Group and Tata Sons, as well as to secure the company’s future amidst ongoing challenges in the business landscape.

 

IBM Acquires Bengaluru-based Prescinto, Expands Into Renewable Energy CMS Software

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IBM has announced its acquisition of Bengaluru-based Prescinto, a leading provider of asset performance management (APM) software for the renewable energy sector. While the financial details were not disclosed, this strategic move aims to strengthen IBM’s Maximo Application Suite (MAS), a platform focused on asset lifecycle management.

This acquisition will enhance IBM’s foothold in the rapidly growing energy and utilities market, where companies are increasingly looking to optimize their wind, solar, and energy storage assets. By incorporating Prescinto’s AI-powered tools, IBM plans to offer enhanced monitoring, analytics, and automation capabilities for renewable energy operations.

According to IBM, the global utilities asset management market is projected to grow from $4.3 billion in 2022 to $12.4 billion by 2031, at a compound annual growth rate of 11.3%. The rising demand for these solutions is fueled by the global shift toward renewable energy, as companies seek to reduce emissions and lower energy costs.

Prescinto’s technology helps energy firms streamline operations by providing real-time tracking of energy production and storage assets. The platform identifies performance bottlenecks and delivers actionable insights, allowing companies to maximize returns on their renewable energy investments.

IBM’s Maximo Application Suite is already widely used across sectors such as water, natural gas, oil, and nuclear energy. With Prescinto’s capabilities, IBM aims to better support its clients’ sustainability and net-zero goals by offering more advanced tools for managing renewable energy assets.

Founded in 2016, Prescinto operates in 14 countries, managing 16 gigawatts of renewable energy assets. The acquisition aligns with IBM’s strategy to lead the digital transformation of the energy sector.

Recently, IBM’s Maximo platform was ranked first in IDC’s 2023 global market share report for asset lifecycle management, holding a 10.8% share. This acquisition is expected to further solidify IBM’s leadership in the sector.

Mukesh Ambani’s Reliance Industries Pitching for Stake in Karan Johar’s Dharma Productions: ET Report

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Mukesh Ambani’s Reliance Industries Ltd. (RIL) is reportedly in discussions to acquire a stake in Dharma Productions, a prominent Bollywood film production house owned by Karan Johar. According to sources quoted by the Economic Times, this potential deal aims to bolster Reliance’s expanding media and entertainment portfolio, although the exact size of the stake under negotiation remains undisclosed.

Karan Johar, who currently owns a 90.7% stake in Dharma Productions, has been looking to monetize his holdings for some time. Previous attempts to sell part of his stake faced challenges due to disagreements over valuation, noted the report.

Founded by Yash Johar in 1979 and now led by his son Karan, Dharma Productions has gained acclaim for producing numerous successful Bollywood films. Its notable hits include the 1980 film Dostana, the critically acclaimed Agneepath in 1990, and romantic comedies like Kuch Hota Hai and Kal Ho Naa Ho. Recent successes include the biopics Gunjan Saxena: The Kargil Girl and Sher Shah, released in 2020 and 2021, respectively. In addition, the company launched subsidiaries like Dharma 2.0 in 2016 for advertising and Dharmatic Entertainment for OTT content production in 2018.

For Reliance Industries, this acquisition enables to widen its footprint in India’s content production sector. RIL’s media and entertainment division combines already Jio Studios, Network18 Media & Investments, Colosceum Media, and the CNBC Group, besides digital platforms like First Post, Moneycontrol.com, and Voot. Additionally, in 2017, Reliance acquired a 24.9% minority stake in Balaji Telefilms.

Jio Studios has emerged as one of India’s largest film studios, recently achieving success with Star 2, which became the highest-grossing Hindi film.

Dharma Productions presents an appealing opportunity for Reliance due to its strong brand and impressive track record in Bollywood. In FY23, the production house reported a revenue increase to ₹1,040 crore, despite a 59% drop in net profit primarily due to rising operational costs.

As competition from OTT platforms intensifies and content production costs escalate, companies like Dharma are seeking partnerships to achieve financial stability and adapt to the evolving market landscape.

 

Mala Parvathy Not Alone, Victims of Cyber Fraud Citing CBI or Police Growing Faster

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Renowned Malayalam actress Mala Parvathy became the latest victim of an increasingly sophisticated cybercrime scam that has targeted several individuals. The scam involves fraudsters posing as police officers, accusing unsuspecting people of criminal activities in an attempt to extort money, from ordinary housewives to film stars to senior citizens and youngsters.

The recorded call says the recipient that her Aadhaar card or her phone number or PAN Card had been used to send a package containing passports, ATM cards, and a quantity of the drug MDMA to a foreign country. Once you respond, they send you a CBI notice and when called, they pass on the victim to another official.

The fraud has become so contagious that many innocent people are falling quick victims in disarray. “The caller was so convincing that I had no reason to doubt him. He said the situation was serious and could lead to severe legal consequences unless I took action immediately. He even sent me an identity card and connected me to another ‘official,’” actress Parvathy said.

The fraudster urged her to come to Mumbai for further investigation, but when she expressed her inability to travel, they escalated the pressure. “I was in shock when they sent me what looked like a CBI notice.”

Parvathy was lucky enough to immediately contact the Kerala Police. “The officer I spoke to confirmed that the call was likely made from a foreign country, making it difficult to trace,” she said. But how many victims are there who can turn to police immediately?

Steps To Do Against Fraudsters:

Call toll-free number (1930) or visit the website www.cybercrime.gov.in. To be precise, never respond to such calls but alert the cyberpolice in your state or call the number 1930 to make a complaint.

While the Kerala Police are conducting an extensive awareness campaign on social media to educate the public about such scams, “there is a need for a comprehensive financial ecosystem in place, which requires collaboration between the Centre and the Reserve Bank of India,” said Kerala chief minister Pinarayi Vijayan.

 

Sensex Up 591 Points as Realty and Banking Stocks Lead the Surge

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Indian equity markets began the week on a strong note, with key indices closing in the green on Monday, driven by robust buying in realty, banking, and IT stocks. The BSE Sensex surged 591.69 points, or 0.73%, to close at 81,973.05, while the NSE Nifty rose by 163.70 points, or 0.66%, ending at 25,127.95.

Midcap and smallcap indices also gained, with the Nifty Midcap 100 closing at 59,465.45 after a 0.43% rise, and the Nifty Smallcap 100 climbing 0.55% to close at 26,197.90.

Buying activity was strong across multiple sectors, including realty, IT, financial services, private banks, auto, PSU banks, pharma, and FMCG. However, pressure persisted in the media, metal, and oil & gas sectors.

Market breadth was mixed, with 1,952 shares advancing and 1,919 declining on the BSE. About 140 shares remained unchanged by the close.

Among Nifty’s top gainers were Wipro, Tech Mahindra, HDFC Life, L&T, and HDFC Bank. On the losing side, ONGC, Maruti Suzuki, Tata Steel, and Bajaj Finance ended the day in the red.

Foreign Institutional Investors (FIIs) increased their selling on October 11, offloading equities worth Rs 4,162.66 crore, while Domestic Institutional Investors (DIIs) boosted their buying, purchasing equities worth Rs 3,730.87 crore on the same day.

Market Sentiment 

Market experts attributed the positive sentiment to optimism surrounding potential rate cuts by the Reserve Bank of India (RBI), bolstered by strong domestic tax collections. Additionally, investors are keeping a close watch on upcoming earnings reports from major companies, including Infosys, as well as the much-anticipated Hyundai Motor India IPO.

“Globally, attention is focused on third-quarter earnings and the upcoming European Central Bank rate decision, with US stock futures and European shares showing an upward trend,” said Vikram Kasat of Prabhudas Lilladher.

Trade analysts also noted that Nifty appears to have resumed its uptrend toward the 25,500 mark following a brief three-day consolidation period.

Nobel Economics Prize 2024 Goes to Daron Acemoglu, Simon Johnson, and James A. Robinson [Details]

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The Royal Swedish Academy of Sciences announced today that Daron Acemoglu, Simon Johnson, and James A. Robinson have been awarded the 2024 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. The prestigious prize recognizes their significant contributions to understanding how institutions are formed and their impact on national prosperity.

This year’s award marks the final Nobel Prize to be announced, concluding the 2024 Nobel Prize season. The economics prize, established in 1968 as a memorial award, acknowledges outstanding contributions to the field of economics.

Three Winners

  • Daron Acemoglu: Born in 1967 in Istanbul, Turkey, Acemoglu earned his Ph.D. from the London School of Economics in 1992. He is currently a professor at the Massachusetts Institute of Technology (MIT) in Cambridge, USA.
  • Simon Johnson: Johnson was born in 1963 in Sheffield, UK, and completed his Ph.D. at MIT in 1989. He is also a professor at MIT.
  • James A. Robinson: Born in 1960, Robinson received his Ph.D. from Yale University in 1993 and is now a professor at the University of Chicago, Illinois, USA.

The award-winning research of Acemoglu, Johnson, and Robinson explores the relationship between institutions and prosperity across nations, shedding light on how the design and governance of institutions can influence economic outcomes.

The economics prize has a rich history, including recognition of influential figures such as Milton Friedman, who won in 1976 for his groundbreaking work in consumption analysis and monetary theory. Friedman was a strong advocate for free markets, and his ideas significantly influenced economic policy in the UK and the US. The Nobel committee continues to reflect on the impact of economics on society and the importance of institutions in shaping the global economic landscape.

With 25 Deals at $1.3 Bln, India Records Historic High in Real Estate in July-Sept 2024

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India’s real estate sector achieved an unprecedented milestone in the July-September quarter (Q3), with 25 deals valued at $1.3 billion, according to a report by Grant Thornton Bharat released on Monday. This marks the highest number of deals ever recorded in the sector and the second-highest total value since Q2 2023.

The surge in deal values was primarily driven by activities related to qualified institutional placements (QIPs), as well as private equity funding in both residential and commercial segments, including real estate technology firms.

While Q3 experienced a 71% drop in overall private equity (PE) and mergers and acquisitions (M&A) deal values compared to Q2 2024, deal volume saw a slight increase of 5%. Year-over-year comparisons indicate a 54% rise in deal volumes, although values declined by 41% compared to Q3 2023.

During this quarter, there were three inbound deals in property development and two outbound deals in the student housing and online rental platform sectors. PE activity remained robust, with 12 deals totaling $401 million, maintaining consistent volume with Q2 2024. Notably, the two largest deals accounted for $346 million, reflecting a trend of concentrated value in fewer transactions.

Despite the decline in funding values from Q2 2024, Q3 2024’s deal values surpassed those recorded in both Q1 2024 and Q3 2023. Additionally, one initial public offering (IPO) raised $49 million, in line with previous quarters, while QIPs experienced a remarkable surge with four deals amounting to $940 million—a nearly six-fold increase compared to Q2 2024.

The strong QIP activity underscores a growing confidence in real estate firms’ ability to tap into public markets. The report suggests that renewed PE and M&A activity toward the end of Q3 could signal an uptick in momentum heading into Q4 2024.

India’s Wholesale Price Inflation Rises to 1.84% in September

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India’s wholesale price inflation (WPI) climbed to 1.84% in September, driven primarily by rising prices of food articles and select manufacturing sectors, according to government data released on Monday.

The inflation rate in September marked an increase from 1.31% in August and 2.04% in July. The month-over-month change in the WPI index was a modest 0.06% compared to August.

The rise in WPI was largely fueled by higher prices of food articles, food products, motor vehicles, machinery, and equipment. The WPI for primary articles rose by 0.41%, reaching 195.7 in September, up from 194.9 in August. Notable increases were observed in the prices of minerals (1.83%), non-food articles (1.31%), and food articles (0.86%).

Conversely, the prices of crude petroleum and natural gas fell by 5.74% in September compared to the previous month. The fuel and power index declined by 0.81% to 146.9 in September, despite a 1.34% rise in electricity prices. The price of mineral oils dropped by 1.72%, while the coal index remained steady at 135.6.

In the manufacturing sector, the index for manufactured products increased by 0.14% to 141.8 in September. Key groups contributing to this rise included the manufacture of food products, non-metallic mineral products, and electronic goods, while the prices of basic metals, textiles, motor vehicles, and chemical products saw declines.

The WPI food index, which tracks prices of both food articles and manufactured food products, rose from 193.2 in August to 195.3 in September. The annual inflation rate based on the WPI Food Index surged to 9.47% in September, up sharply from 3.26% in August.

The Wholesale Price Index measures price changes in goods traded in bulk by wholesale businesses with other companies.

RBI Governor Warns of ‘Systemic Risks’ from AI in Banking Sector

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The increasing use of artificial intelligence (AI) and machine learning (ML) in the global financial sector could pose significant risks to financial stability if not properly managed, according to Shaktikanta Das, the Governor of the Reserve Bank of India (RBI). Speaking at an event in New Delhi on Monday, Das emphasized the need for banks to adopt strong risk mitigation practices as they integrate AI into their operations.

Das highlighted that the financial sector’s growing reliance on AI could lead to concentration risks, particularly if a few technology providers dominate the market. “The heavy dependence on AI by financial institutions can amplify systemic risks. Failures or disruptions in these AI systems could ripple through the entire financial sector,” he cautioned.

In India, banks and financial service providers are increasingly using AI to enhance customer experience, reduce operational costs, manage risks, and boost growth through applications like chatbots and personalized banking services. However, this growing reliance on AI also introduces new vulnerabilities, including a heightened risk of cyberattacks and data breaches.

Das pointed out another key concern—the “opacity” of AI algorithms. The complexity and lack of transparency in AI systems make it difficult to audit or interpret the decision-making processes behind lending and other financial services. This could lead to unpredictable market outcomes, with potentially severe consequences.

In addition to AI-related risks, Das also raised concerns about the rapid expansion of private credit markets globally. These markets, he noted, are lightly regulated and have not undergone stress testing during a significant economic downturn. The unchecked growth of private credit could pose further risks to financial stability.

As the adoption of AI continues to reshape the financial landscape, Das urged banks and regulators to stay vigilant and ensure that adequate safeguards are in place to prevent systemic disruptions.

Indian Rupee Plunges to Record Low Against U.S. Dollar Amid Global Pressures

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The Indian rupee hit a record low against the U.S. dollar on Monday, driven by persistent demand for the dollar and continued outflows from Indian equities. The rupee dropped to an all-time low of 84.0725 against the U.S. dollar, surpassing the previous low of 84.07 recorded last Friday. This downward trend is attributed to foreign banks’ dollar bids and sustained outflows of over $8 billion from local equities in just 10 sessions.

For over two months, the Reserve Bank of India (RBI) tried to keep the rupee stable around the 84 mark. However, the ongoing sell-off by foreign investors and weakness in Asian currencies—exacerbated by disappointment over China’s economic stimulus measures—further pressured the rupee. Asian currencies were down by 0.1% to 0.3%, while the U.S. dollar index hovered near its two-month peak at 103.

Local banks were seen offering dollars, while larger foreign banks dominated the demand. Market analysts predict the rupee to trade between 83.95 and 84.20 in the near term. Amit Pabari, managing director of FX advisory firm CR Forex, pointed out that RBI’s interventions, along with a potential reduction in equity outflows, could provide the rupee some relief and help it recover.

Market Impact and Geopolitical Concerns

Brent crude oil prices—currently at $78 per barrel but up 9% in October—are being closely monitored, as rising tensions in the Middle East could further disrupt global oil supplies and impact the rupee. The Indian stock market also felt the ripple effects, with the BSE Sensex plunging by 564.51 points to 72,835.27 and the NSE Nifty falling 153.35 points to 22,119.15 in early trading. The geopolitical uncertainty triggered broad sell-offs across sectors, affecting investor sentiment.

The situation highlights the importance of sound financial planning and risk management, especially in volatile global markets. Investors are advised to consider profit-booking and exercise caution amid ongoing market corrections.

Last time, in June 2018, the Indian currency hit an all-time closing low of 68.79 against the dollar. However, the current situation presents more serious challenges due to global economic uncertainties, especially regarding oil prices and geopolitical tensions.

After Rs. 1 Lakh Loss Last Week, Indian Markets Brace for Key Inflation Data, Q2 Reports This Week

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Notwithstanding last week’s erosion of Rs.1 lakh in market value, Indian stock markets are expected to navigate a crucial week ahead, with domestic and global economic indicators, especially Israeli-centric moves, taking center stage.

Key drivers for market movements include India’s Wholesale Price Index (WPI) inflation and Consumer Price Index (CPI) inflation data for September, as well as updates on bank loan and deposit growth. Alongside these domestic cues, Q2 earnings results from major Indian companies and global developments, particularly from the US, China, and Japan, will heavily influence market sentiment.

The Q2 earnings season has officially begun, and several important reports are expected in the coming week. Analysts suggest these results could trigger sector-specific movements as investors digest the performances of companies across various industries.

In addition to corporate earnings, fluctuations in global crude oil prices, movements in the dollar index, and foreign institutional investor (FII) activity are likely to play a role in shaping the market’s trajectory. Over the past week, FIIs offloaded stocks worth Rs 28,000 crore, though domestic institutional investors (DIIs) stepped in with net purchases of over Rs 31,000 crore, providing some support to the market.

The market experienced consolidation last week after a sharp correction from its recent all-time highs in both the Nifty and Sensex. Although the week started with a decline, the indices recovered from lower levels by the end of the week.

Santosh Meena, Head of Research at Swastika Investmart, said that technically, the Nifty index has found near-term support around the 24,750 level. He added, “To regain momentum, the Nifty must surpass resistance levels at 25,330 and 25,500. If it falls below 24,750, further selling pressure could push the index toward 24,440 and 24,100.”

Palka Arora Chopra, Director at Master Capital Services, pointed out that Bank Nifty is trading within a parallel channel and remains above its weekly 21-day exponential moving average (EMA), signaling a positive trend. “Support is seen at 50,600, with potential downside risk toward 50,000 if breached. On the upside, resistance is at 51,700, and a breakout could push the index to 52,200. The market may trade sideways in the near term, with a buy-on-dips strategy likely to be effective,” she noted.

On the macroeconomic front, the Reserve Bank of India (RBI) held its key interest rates steady last week, shifting its stance to “neutral.” This shift has raised expectations for possible rate cuts as early as December. The central bank maintained its GDP growth forecast for FY25 at 7.2 percent, while keeping the CPI inflation target unchanged at 4.5 percent.

With a mix of corporate earnings and significant economic data on the horizon, investors will be closely monitoring market signals to gauge the near-term outlook.

Seven Companies Lose Over Rs 1 Lakh Crore in Market Cap Last Week

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The combined market capitalisation of seven out of the top 10 companies declined by Rs 1,22,107 crore over the past week, with Tata Consultancy Services (TCS) and Reliance Industries Ltd (RIL) leading the losses.

Between October 7 and 11, Tata Group’s TCS saw its market cap drop by Rs 35,638 crore, settling at Rs 15,01,723 crore. RIL’s market cap fell by Rs 21,351 crore, bringing its valuation down to Rs 18,55,366 crore.

FMCG giant ITC also witnessed a significant decline, with its market cap decreasing by Rs 18,761 crore to Rs 6,10,933 crore. Meanwhile, Hindustan Unilever Limited (HUL) saw a reduction of Rs 16,047 crore in its market valuation, now standing at Rs 6,53,315 crore.

The market capitalisation of Life Insurance Corporation (LIC) dropped by Rs 13,946 crore to Rs 6,00,179 crore, while ICICI Bank’s valuation slipped by Rs 11,363 crore, bringing it to Rs 8,61,696 crore.

HDFC Bank, the largest private sector bank in the country, saw its market cap decrease by Rs 4,998 crore, settling at Rs 12,59,269 crore.

On the other hand, Bharti Airtel’s market cap surged by Rs 26,330 crore to Rs 9,60,435 crore, while Infosys gained Rs 6,913 crore, taking its valuation to Rs 8,03,440 crore. The State Bank of India (SBI) added Rs 3,034 crore, pushing its market cap to Rs 7,13,968 crore.

Last week, the Nifty fell by 50 points, or 0.20 percent, to 24,964, while the Sensex declined by 307 points, or 0.38 percent, closing at 81,381. This marked the second consecutive week of market losses.

Despite the decline, RIL maintained its position as India’s most valuable company, followed by TCS, HDFC Bank, Bharti Airtel, and ICICI Bank.

Market experts predict that the outlook for next week will be influenced by key domestic and global economic data, including India’s WPI and CPI for September, loan and deposit growth figures, Q2 earnings of Indian companies, and updates from the US, China, and Japan.

Breaking News: Baba Siddiqui shot dead in Mumbai

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In a shocking news, NCP (Ajit Pawar) leader from Maharashtra Baba Siidqui known for his annual Iftaar parties for celebrities in Mumbai was shot dead around midnight on Saturday. Currently, an MLC, Siddiqui  was shot dead by three attackers in Mumbai around 9.30 pm at the office of his son, Zeeshan, who is the MLA from Bandra East..

“Mumbai police chief told me two persons have been arrested. One is from UP, other from Haryana. Third assailant is absconding but police are trying to nab him,” chief minister Eknath Shinde told media.

Initial reports said three people fired at Baba Siddique outside his son Zeeshan’s office in Bandra East. Though he was rushed to Mumbai’s Lilawati Hospital immediately, he succumbed to his injuries.

“Two to three rounds were fired. Further probe is underway as teams have rushed to the area,” a police official told PTI. Mumbai police commissioner Vivek Phansalkar reportedly said that two alleged shooters have been taken into custody.

One of them is from Uttar Pradesh and the other from Haryana, while a third accused fled from the spot, the CM told TV channels.

“This is an extremely unfortunate incident and I spoke to the doctors and police. Two people have been arrested, the accused are from UP and Haryana. The third accused is absconding. We have given instructions to Mumbai Police that strict action should be taken against those who take law and order into their hands…I am sure that Mumbai police will soon arrest the third accused…Strict action will be taken against the accused,” CM Shinde said.

Ziauddin Siddique, widely known as Baba Siddique, was a prominent political figure in Maharashtra. He served as a Member of the Legislative Assembly (MLA) for the Vandre West constituency for three consecutive terms in 1999, 2004, and 2009. During his tenure, Siddique also held the position of Minister of State for Food & Civil Supplies and Labour under Chief Minister Vilasrao Deshmukh from 2004 to 2008.

Before his role as an MLA, Siddique was a Municipal Corporator, serving two consecutive terms from 1992 to 1997. At the time of his passing, he held key roles as the Chairperson and Senior Vice President of the Mumbai Regional Congress Committee and as a member of the Parliamentary Board of the Maharashtra Pradesh Congress Committee. On February 8, 2024, he resigned from the Indian National Congress (INC) and joined the Nationalist Congress Party (NCP) under Ajit Pawar on February 12, 2024.

“I joined the Indian National Congress party as a young teenager, and it has been a significant journey lasting 48 years. Today I resign from the primary membership of the Indian National Congress Party @INCIndia with immediate effect,” he had written in an X post about his decision to join Ajit Pawar.

Siddique’s political journey began in 1977 when, as a teenager, he joined the INC and became involved in student movements through the National Students Union of India (NSUI), the student wing of the INC. He quickly rose through the ranks, becoming General Secretary of the Bandra Taluka Youth Congress in 1980 and its president two years later. In 1988, he was elected president of the Mumbai Youth Congress.

In 1992, Siddique was elected as a Municipal Councilor for the Mumbai Municipal Corporation, securing re-election five years later. His ascent to state politics came in 1999 when he became an MLA from Bandra West, where he served for three terms. He also held the position of Chairman of the MHADA Mumbai Board from 2000 to 2004. Beyond his legislative work, Siddique contributed to his community by funding the creation of an eco-garden in Bandra-Khar in 2011.

Baba Siddique was married to Shehzeen Siddique, and together they had two children, Arshia and Zeeshan Siddique.

 

Odyssey Nears Deal to Acquire Honeywell’s PPE Unit

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Private equity firm Odyssey is reportedly in advanced negotiations to acquire Honeywell’s face mask unit, a potential deal valued at around $1.5 billion. This acquisition marks a strategic move by Odyssey to capitalize on the surging demand for personal protective equipment (PPE), driven by the global pandemic. The deal would be a significant milestone in the PPE industry, as face masks have become an essential commodity worldwide.

The ongoing talks, initially reported by Bloomberg News, suggest Odyssey’s growing interest in expanding its investment portfolio within the PPE sector. Honeywell, a global conglomerate known for its diversified product offerings, including aerospace systems and engineering services, has played a key role in meeting the massive demand for PPE during the COVID-19 crisis.

While the reasons behind Odyssey’s interest in Honeywell’s face mask division remain unspecified, the acquisition is seen as a calculated effort to tap into the lucrative market. The surge in demand for PPE since the pandemic began has transformed the sector, making it an attractive investment opportunity for private equity firms.

PPE Market

If the deal proceeds, it could have broader implications for both companies and the PPE market. Honeywell’s face mask unit, known for its production capacity and established reputation, has been a leader in addressing global PPE needs. Odyssey’s acquisition could further shake up the competitive landscape as private equity firms continue to show interest in PPE-related assets.

This is not the first time a private equity firm has targeted the PPE industry. In 2016, Blackstone acquired a majority stake in Ansell Limited’s industrial and medical gloves business for $600 million, a deal that highlighted the profitability of the sector even before the pandemic. Odyssey’s potential acquisition of Honeywell’s unit could be viewed in a similar light, setting the stage for more deals as the industry continues to expand.

While the deal is still in its negotiation phase, the final terms could evolve as discussions progress. The outcome will not only impact Odyssey’s investment portfolio but also shape Honeywell’s future business strategy. Industry stakeholders are watching closely, as this acquisition could set a benchmark for future investments in the PPE market.