Category Archives: BUSINESS

Business

Indian Market Makes Historic Recovery, Investors Gain Rs 10.9 Lakh Crore

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In an unprecedented turn of events, the Indian stock market made a remarkable recovery on Tuesday, April 15, as investors regained a colossal Rs 10.9 lakh crore in a single day. This recovery effectively wiped out the losses incurred following the US tariff shock on April 2, marking a significant milestone in the financial sector.

The Sensex, a benchmark index of the Bombay Stock Exchange, witnessed a surge of over 1,570 points, while the Nifty, the National Stock Exchange’s benchmark index, soared past the 22,300 mark. This marked one of the most substantial gains in recent months, reflecting a robust and resilient market.

The Broad-Based Recovery and Its Drivers

This recovery was not limited to a specific sector or a handful of stocks. Instead, it was broad-based, encompassing various sectors and indices. The driving force behind this rally was a combination of strong investor sentiment, positive global cues, and domestic optimism. The primary catalyst for this rally was a significant update on US trade policy.

The US administration announced a 90-day delay in tariffs for most countries, with the notable exception of China. This announcement served to calm investor nerves and reignite hopes for India’s position in global supply chains.

Financial stocks, due to their heavy weightage in the indices, led the charge, rising over 2 per cent. The midcap and smallcap indices, which had been underperforming recently, also saw a strong recovery, each rising by around 3 per cent. Market experts noted that domestic institutional investors turned aggressive buyers on Tuesday, further supporting the upward momentum. Asian markets were also firm, supported by a weaker US dollar and stable bond yields, giving Indian markets an additional boost as they reopened after an extended weekend.

India’s Position Amid Tariff War

India’s strong macroeconomic fundamentals continue to attract investor interest, apart from global cues. With robust domestic demand and limited direct exposure to US-China tensions, India is increasingly seen as a stable bet amid global uncertainties, market experts noted. While data on foreign institutional investor flows is yet to be released, early signs point to strong buying activity.

“Markets are adjusting the new reality of daily Trump twists and turns,” said Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital. He added that sometimes when tariffs look like they have been temporarily removed, the markets will react positively, when something unexpected happens they will react negatively.

Surprise Twist After 6-Year Hunt, Fugitive Tycoon Mehul Choksi Arrested in Belgium

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In a dramatic turn of events that has stunned both investigators and the public, fugitive diamond trader Mehul Choksi—accused in India’s largest-ever bank fraud case—has been arrested in Belgium after years on the run. The unexpected arrest has rekindled hopes for justice in the ₹13,500 crore Punjab National Bank (PNB) scam that rocked the country’s financial system in 2018.

Choksi, who had been hiding in Antigua and Barbuda since fleeing India, was reportedly detained in Belgium on the basis of a Red Corner Notice issued by Interpol at India’s request. The development comes after years of diplomatic and legal wrangling, and amid fears that the 64-year-old might never be brought back to face trial.

The timing and location of the arrest have added a layer of intrigue. While Indian authorities were focused on legal proceedings in the Caribbean, Choksi’s sudden appearance in Belgium has raised eyebrows. “This arrest was completely unexpected,” said a senior official from the Enforcement Directorate, which has been pursuing Choksi under the Prevention of Money Laundering Act.

Adding a poignant twist to the saga is the voice of Hariprasad SV, the whistleblower who first flagged irregularities in PNB’s credit system back in 2013. Speaking to NDTV after Choksi’s arrest, Hariprasad said: “The important thing is not the arrest, the important thing is the recovery of money.” His statement underlines the enduring human cost of white-collar crimes—thousands of lives impacted, reputations destroyed, and public trust shaken.

In 2018, Indian authorities revealed that Choksi and his nephew Nirav Modi had allegedly orchestrated a massive fraud using fake Letters of Undertaking issued by complicit PNB officials. The scam led to a massive clean-up in the banking sector and exposed gaping loopholes in financial oversight.

The PNB fraud not only destabilised one of India’s oldest banks, but also sent shockwaves through the global business community, given Choksi’s once-respectable stature as the owner of the Gitanjali Group and a well-known name in high-end jewellery circles.

Though Choksi repeatedly claimed he was being politically persecuted, Indian agencies pressed ahead, revoking his passport and mounting pressure through international legal channels. His Antigua citizenship further complicated matters, and in a dramatic episode in 2021, Choksi alleged he was abducted from the island nation—a claim that was later debunked by local courts.

What makes this arrest in Belgium even more riveting is the sheer unpredictability of it. Choksi had dropped out of the public eye, with his lawyers challenging extradition attempts on health and human rights grounds. There was growing concern that he might successfully outmaneuver the Indian legal system altogether.

With his arrest, India has renewed its extradition efforts. Sources say the Ministry of External Affairs has already begun formal communication with Belgian authorities. If successful, Choksi could finally face trial in India alongside Nirav Modi, who remains in a UK prison contesting his own extradition.

For the families of affected bank employees, investors, and taxpayers, this arrest is more than just a legal milestone. It is a glimmer of accountability. As Hariprasad poignantly noted, “People who loot public money should not be allowed to go scot-free.”

Shares of US chipmakers come under pressure after China retaliates with tariff hikes

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U.S. markets closed lower Friday after China announced steep tariff hikes on American goods, targeting semiconductors manufactured in the U.S. Texas Instruments fell 6.8%, Intel dropped 3.7%, and GlobalFoundries declined 2.4% amid fears of disrupted trade flows.

Shares of Nvidia and TSMC rose, buoyed by their offshore manufacturing. Analysts warn of escalating uncertainty in the sector, with sentiment now tightly linked to any progress on U.S.-China trade negotiations.

Shares of U.S. chipmakers with domestic manufacturing operations came under sharp pressure on Friday after China announced a steep escalation in tariffs on American goods, stoking fresh concerns over the ongoing trade tensions between the world’s two largest economies.

Beijing said it will raise duties on U.S. imports from 84% to 125%, a move widely interpreted as a direct response to Washington’s earlier tariff measures. The China Semiconductor Industry Association clarified that the new customs rules would assess origin based on where chips are manufactured rather than the home country of the parent company—exposing firms with U.S.-based fabs to additional vulnerability.

Texas Instruments Inc. and Intel Corp. were among the hardest hit, with shares declining 6.8% and 3.7%, respectively. GlobalFoundries Inc. dropped 2.4%, while other chipmakers with manufacturing facilities in the U.S., including Analog Devices Inc. and Microchip Technology Inc., also traded lower. Skyworks Solutions Inc. and Qorvo Inc., both key suppliers to Apple Inc., were not spared from the selloff.

“This is an incredibly uncertain time for chipmakers, and this is certainly not going to help,” Wayne Kaufman, chief market analyst at Phoenix Financial Services told Bloomberg. “Anything that hurts semis more than they’ve already been hit is bad for the general market.”

Not all chipmakers were negatively affected. The tariffs exclude companies that design semiconductors but do not manufacture them domestically. As a result, Nvidia Corp. rose 2.2%, while U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. gained 3.3%. Analysts noted this divergence, highlighting the potential for non-fabricating players to benefit from redirected demand and capacity.

Experts believe that the market may be overreacting in the case of Texas Instruments, pointing to the company’s long-standing advantages in product quality, breadth, cost structure, and customer support. Though TI’s share in China could erode somewhat, TI benefits from product performance would be difficult for Chinese OEMs to ignore altogether, they point out.

Wall Street’s Magnificent Seven Wipe Out $2 Trillion in Market Value

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The elite group of U.S. tech megacaps, popularly dubbed the “Magnificent Seven,” has witnessed a sharp $2 trillion erosion in market value since April 2, following renewed trade tensions triggered by President Donald Trump’s announcement of sweeping reciprocal tariffs on nearly all trading partners. The announcement sent shockwaves through global equity markets, igniting a broad selloff across the tech-heavy Nasdaq and shaking investor sentiment.

However, a partial recovery was seen this week after Trump announced a 90-day pause on the proposed tariffs — excluding China — providing temporary relief to a market already under strain from elevated interest rates and weak earnings expectations. The move helped the group regain over $1.5 trillion in value in just a few trading sessions. Still, the recent bounce has not fully reversed the broader decline that began earlier this year.

Despite the rebound, volatility remains elevated. Nvidia emerged as the standout performer, surging nearly 25 percent in the past five trading sessions alone, fueled by renewed investor optimism around artificial intelligence infrastructure and rising global demand for AI chips. The company, which gained over 183 percent in 2024, continues to command strong interest despite a year-to-date correction of around 20 percent, partly driven by competition from China’s DeepSeek.

Tesla, by contrast, has become the biggest laggard within the group. Its stock has fallen 34 percent since the start of the year, battered by disappointing delivery numbers, ongoing price cuts, and concerns over slowing EV demand. While the stock has rebounded 13 percent in the past five days, it remains deeply in the red, raising fresh questions about the company’s near-term outlook and market positioning.

Other members of the group, including Apple, Alphabet, Meta Platforms, Amazon, and Microsoft, posted gains this week in the range of 9 to 22 percent. Yet many remain underwater for the year. Apple has lost nearly 19 percent year-to-date, while Meta is down 10 percent despite a strong five-day rally. Microsoft, which saw an 11 percent gain this week, is still down roughly 7 percent for the year. Alphabet reiterated plans to invest $75 billion into data center expansion, while Microsoft is set to exceed $80 billion in infrastructure spending — both signaling long-term confidence in AI and cloud technologies.

The current pause in tariffs has been welcomed by global markets. Equity indices in the U.S., Europe, and Asia posted broad gains this week, with the Nasdaq jumping 12 percent in a single session — its strongest one-day rally since October 2008. Analysts, however, warn that the 90-day window could be merely a temporary reprieve unless meaningful progress is made on trade negotiations. Tariffs on Chinese imports have been raised to 125 percent, keeping geopolitical risk firmly in the picture.

With macroeconomic uncertainty persisting and tech valuations still elevated, institutional investors are likely to remain cautious. While the “Magnificent Seven” continue to dominate the technology and innovation landscape, their vulnerability to policy shocks, competition, and shifting demand is once again in focus. The coming weeks will test whether the recent recovery has legs or if another wave of selling is on the horizon.

US Semiconductor Tariffs: India Faces Limited Immediate Impact

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The U.S. decision to impose tariffs on semiconductors is unlikely to significantly impact India in the short term, as the country is not a major chip exporter to the U.S., industry experts said Thursday.

With India already imposing zero import duties on semiconductors, the country faces no immediate trade retaliation concerns, said Ashok Chandak, president of the India Electronics and Semiconductor Association (IESA).

Most of India’s upcoming semiconductor manufacturing and assembly facilities cater to global brands, and its growing domestic demand will be met primarily through local production.

In the long run, Indian chipmakers are expected to remain competitive, as the U.S. tariff applies uniformly to all exporting nations, Chandak noted.

The Trump administration’s decision to impose tariffs of 25% or more is expected to reshape the global semiconductor industry, affecting costs, supply chains, and innovation.

The new tariffs will significantly increase the cost of chips imported into the U.S., particularly from dominant manufacturing hubs like Taiwan, South Korea, and China. These additional costs will likely be passed on to consumers, driving up prices for smartphones, laptops, electric vehicles, and industrial electronics.

Tech giants such as Apple, NVIDIA, and Tesla could see rising production costs, potentially squeezing profit margins or forcing them to raise consumer prices, according to IESA.

To mitigate risks, companies may explore alternative supply chains or invest more in domestic chip production. However, semiconductor fabrication plants are among the most capital-intensive projects, requiring $10 billion to $25 billion per site.

“Companies must weigh multiple factors before making investment decisions, including workforce availability, tax policies, regulatory frameworks, and environmental considerations,” IESA stated.

Trump Warns Zelensky: Ukraine War Could End Without Him

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NEW YORK, Feb. 20 — The war of words between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky escalated Wednesday as Trump suggested Ukraine could be sidelined in negotiations to end the war with Russia.

“Zelensky better move fast or he’s not going to have a country left,” Trump wrote on Truth Social, claiming that only his administration could successfully broker peace with Russia.

The warning came after Zelensky criticized the U.S. and Russia for holding negotiations in Riyadh without Ukrainian representation. He insisted that Ukraine would not accept a peace deal reached without its direct involvement.

Zelensky fired back, accusing Trump of “living in a web of disinformation.” Trump, in turn, labeled Zelensky a “dictator without elections.”

With Russia occupying roughly 20% of Ukraine’s territory and Ukraine making only minor territorial gains, a negotiated peace deal is unlikely to restore all of Ukraine’s pre-war borders.

U.S. Defense Secretary Pete Hegseth suggested that reverting to Ukraine’s pre-2014 borders—including Crimea—was unrealistic and ruled out NATO membership for Ukraine in any foreseeable peace agreement.

Trump previously suggested Ukraine provoked the war—despite Russia’s 2022 invasion. His “dictator” remark references Ukraine’s decision to postpone elections due to the war, extending Zelensky’s term beyond its scheduled end.

As the primary financier of Ukraine’s defense, Trump appears to believe he could unilaterally pressure Kyiv into accepting peace terms negotiated with Russian President Vladimir Putin.

On Tuesday, U.S. Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov met in Riyadh for more than four hours to discuss an end to the war. Both sides reported progress, with Lavrov calling the talks “useful” and Rubio indicating Russia was open to serious negotiations.

One key development was an agreement to restore U.S. and Russian embassies to full operational status after years of reduced diplomatic presence.

Trump also lashed out at European nations for not matching U.S. financial support for Ukraine. “Zelensky talked the United States into spending $350 billion on a war that couldn’t be won,” he wrote, arguing that European nations should contribute equally.

 

‘Buy China – Sell India’? Despite Challenges, FIIs Pushing A Market Shift

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At first glance, the global financial landscape is undergoing a significant shift, with FIIs increasingly diluting their share in Indian stocks and turning their attention towards the Chinese market. This trend, often referred to as the ‘Buy China – Sell India’ trade, is not a distant possibility for FIIs. The primary reason behind this shift is the perceived greener pastures in the Chinese stock market compared to the frothy valuations of Indian markets.

Over the last two weeks, Shanghai’s stock market has rallied close to 30% from its September lows, following the Chinese government’s all-out effort to revive economic growth. This is a stark contrast to the situation a few weeks back when multinational firms were pulling out money from China at a record pace, and global economists were trimming their forecasts for China’s economic growth.

However, the ground realities of the Chinese economy have not changed. The country’s real problems range from half-built houses to bad debts. The government is widely believed to be forging data and suppressing sensitive economic facts. Over the past few years, China’s monetary stimuli have become political rather than economic decisions.

China’s Economic Challenges and Investor Capital

This has led to a growing mistrust of information about China, making the allocation of capital in the country very difficult. China’s workforce is shrinking, and manufacturing productivity is dwindling. The country needs to pivot away from cheap credit and construction to more innovative industries. That is why investor capital is pouring into electric vehicles, semiconductors, and AI-led technologies. Yet, if the investments are based on the sustainability of the economic boom, there could be more shocks in the offing.

China’s real estate bust has left behind tens of millions of empty housing units. The historic glut of unoccupied property is colliding with China’s shrinking population, leaving cities stuck with homes they might never be able to fill. The country could have as many as 90 million empty housing units, enough homes for the entire population of Brazil.

Another measure of the unbalanced state of China’s economy is the size of the credit market bubble. According to Harvard professor Kenneth Rogoff, housing now constitutes a third of the Chinese economy and exposes it to massive risks. Chinese private sector credit has increased by around 100% of its GDP in the past decade.

The Future of China’s Economy and Global Impact

That rate of credit expansion is larger than that which preceded Japan’s lost economic decade in the 1990s and the 2008 US housing and subprime credit market bust. Yet another measure of the unbalanced state of the Chinese economy is the quantum of state-funded investment.

This accounts for as much as 42% of China’s GDP, approximately double the rate of the advanced economies. China now has a major problem of excess manufacturing capacity. With domestic household demand unable to fully absorb its manufacturing output, China has become dependent on foreign markets to take up its manufacturing surplus.

Without curtailing excess debt and investments, China could experience a Japanese-style lost economic decade. And that could have major consequences for the world economy given that China is the world’s second-largest. Moreover, it continues to remain the largest consumer of international commodities.

So, FIIs have a lot to ponder over before taking the ‘Buy China – Sell India’ trade too seriously. Nevertheless, such a strategy could work well in the near term as valuations of Indian stocks seem frothy. A deeper correction in Indian stock markets could be possible only if the money that FIIs pull out is higher than that which domestic investors pump in.

 

Hyundai Motor India Share to List Today After IPO Amid Complaints From Retail Investors

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Hyundai Motor India, the Indian arm of South Korea’s automotive giant, is poised to make its stock market debut this week following a historic Initial Public Offering (IPO), officials confirmed on Monday.

The company’s shares will begin trading on Tuesday, after successfully concluding last week’s $3.3 billion IPO, the largest ever in India’s market history. This debut surpasses the previous record held by the Life Insurance Corporation of India (LIC), which raised $2.5 billion in its 2022 IPO.

The price band for Hyundai Motor India’s IPO has been set between ₹1,865 and ₹1,960 per share. As a pure offer-for-sale (OFS), all proceeds will go to the promoter company.

However, several retail applicants are upset over non-allocation of shares despite half of the category allocaton was applied.

India plays a crucial role in Hyundai’s global production strategy. In 2023 alone, the company produced 765,000 vehicles in the country. Hyundai Motor India stands as the second-largest carmaker in India, following Maruti Suzuki. The listing is expected to boost its local market competitiveness.

In recent years, Hyundai has ramped up its investments in India, acquiring General Motors’ manufacturing plant in Pune. The facility is undergoing modernization and is expected to reach a production capacity of over 200,000 units annually once operational in the latter half of 2025. This will bring Hyundai Motor India’s total production capacity to 1 million vehicles when combined with its Chennai plant.

Hyundai is also making strides in the electric vehicle (EV) market. By 2030, the company plans to install 485 EV charging stations across India and has partnered with Exide Energy to bolster its battery capabilities. The company will launch its first locally-produced electric SUV, the Creta EV, in 2025, followed by four more EV models by 2030 to meet India’s growing demand for electric vehicles.

Indian Shares Poised for Higher Opening as Key Earnings Reports Awaited

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Indian stock markets are expected to open slightly higher on Monday, with investor attention focused on earnings reports from major players like HDFC Bank, Kotak Mahindra Bank, and Tech Mahindra.

As of 07:14 a.m. IST, the Gift Nifty stood at 24,927.5, indicating that the NSE Nifty 50 index may open marginally above its last close of 24,854.05 on Friday. Both the NSE Nifty 50 and S&P BSE Sensex had posted losses in the previous week, marking the third consecutive week of declines.

Analysts attributed the recent market downturn to sustained foreign outflows as investors shifted focus toward China, where stimulus measures and cheaper stock valuations are drawing attention. Additionally, the ongoing mixed corporate earnings season has added to market caution.

The reaction to HDFC Bank’s earnings, a key component of India’s benchmark indexes, will likely influence Monday’s trading. The private lender reported a higher-than-expected standalone net profit for the September quarter and plans to reduce its loan-to-deposit ratio over the next two to three years.

Meanwhile, Kotak Mahindra Bank may face selling pressure due to a sequential margin contraction and deterioration in asset quality for the second quarter. Tech Mahindra, which reported revenue growth over the weekend, will also be closely watched by market participants.

Foreign institutional investors have been net sellers of Indian equities for 15 consecutive sessions, offloading shares worth ₹54.86 billion ($652.7 million) on Friday. October is shaping up to be the worst month for the Nifty since September 2022, with the index down 3.7% so far.

Stocks to Watch:

  • JM Financial: The Reserve Bank of India has lifted restrictions on one of its units.
  • Tata Steel: The steelmaker signed a contract with Italy’s Tenova for an electric arc furnace at its Port Talbot plant in Wales.
  • JSW Steel: JSW’s joint venture with JFE Steel Corp announced a deal to acquire thyssenkrupp Electrical Steel India for $482.1 million.

This Week’s IPOs: Waaree Energies Likely to Buzz Market, Three Other Listings Scheduled

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Despite a recent downturn in the Indian equity market, the IPO segment is buzzing with activity as nine new public issues worth ₹10,985 crore are set to open for retail investors from October 21 to 25.

Among these, Waaree Energies’ IPO will be the first to kick off on October 21, offering shares at a price band of ₹1,427 to ₹1,503 each. The solar photovoltaic module manufacturer aims to raise ₹4,321 crore, with ₹3,600 crore as fresh issue and ₹721.44 crore through an offer-for-sale (OFS) of 48 lakh shares.

Promoters Waaree Sustainable Finance and Chandurkar Investment will participate in the OFS. Ahead of the IPO, the company secured ₹1,277 crore from anchor investors on October 18. Competitors in the market include Premier Energies and Websol Energy.

Additionally, the IPO for Deepak Builders and Engineers India will also open on October 21, with a size of ₹260 crore. It consists of a fresh issue of ₹217 crore and an OFS worth ₹42.83 crore. Prior to the IPO, ₹78 crore was raised from five anchor investors.

Godavari Biorefineries will open its ₹555 crore IPO from October 23 to 25. The offering will feature a fresh issue of ₹325 crore and an OFS of 65.26 lakh shares, valued at ₹229.75 crore, from promoters and investor Mandala Capital AG. The price band for the shares is set at ₹334 to ₹352.

Afcons Infrastructure, a Shapoorji Pallonji Group company, will launch its IPO on October 25. The company seeks to raise ₹5,430 crore, with ₹1,250 crore through a fresh issue and ₹4,180 crore via an OFS. The price band will be revealed on October 21.

Several companies in the SME segment will also be offering IPOs next week, including Premium Plast, Danish Power, United Heat Transfer, OBSC Perfection, and Usha Financial Services.

On the listing front, Hyundai Motor India’s historic ₹27,870 crore IPO, the largest ever in India, will list on October 22. Shares of Lakshya Powertech and Freshra Agro Exports from the SME segment are scheduled to begin trading on October 23 and 24, respectively.

SIPs Over Cars: Sourav Dutta’s Financial Tip Ignites Debate

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In an era where financial literacy is increasingly becoming a necessity, a recent online debate has sparked interest and controversy in equal measure. The debate was initiated by Sourav Dutta, an investor and trader, who took to social media platform X (formerly Twitter) to share his financial advice.

Dutta suggested that people should consider investing in Systematic Investment Plans (SIPs) rather than purchasing a car. His post, shared on October 15, 2024, quickly gained traction, accumulating over a million views and sparking a widespread discussion.

Dutta’s argument was based on a hypothetical scenario involving a character named Ravi. According to Dutta, Ravi was burdened with a monthly EMI of ₹20,000 for five years after purchasing a car.

Dutta proposed that Ravi would have been in a better financial position had he invested the same amount into mutual fund SIPs. He explained that an SIP of ₹20,000 per month in Nifty ETF would grow to a bank balance of ₹17 lakh at the end of five years. In contrast, a car, which would have cost ₹10 lakh, would depreciate to a value of ₹4 lakh by 2030.

Life Choices and Financial Planning

Rs 20000/mo is the 5 year EMI of a 10L car for Ravi. Instead, Ravi puts ₹20000/mo for 5 years in Nifty ETF SIP. First decision gives him a car worth ₹4L in 2030. Second decision gives him ₹17L of bank balance in 2030. Life is about the choices we make, Dutta wrote.

However, Dutta’s advice was met with mixed reactions. While some agreed with his financial perspective, others argued that life is not solely about investment and financial returns. They emphasized the value of enjoying life and the conveniences a car provides, such as family time and emergency transportation.

One user commented, Life is also short for some enjoyment. Look beyond SIP and market returns. And enjoy life for yourself and for the family you got. This sentiment was echoed by others who pointed out that not everyone can forgo the immediate benefits of car ownership for future financial gains.

Another user argued, “Not everything in life is about saving money. Also, if everyone thinks like Ravi, then the economy won’t grow, and the stock market won’t perform, and Ravi will not even make FD returns!”

This comment highlights the broader economic implications of Dutta’s advice, suggesting that if everyone were to follow this advice, it could potentially stagnate economic growth.

Practicality Experiences

The debate took an interesting turn when users began to question the practicality of Dutta’s advice. One user quipped, The problem here is that, when Ravi wants to go somewhere with his family at his convenient time without bargaining with the Ola or Uber fellow, he can’t print the ETF papers, sit over it and ask it to fly.

It will not take him anywhere. This comment underscores the limitations of relying solely on public transportation or ride-hailing services, and the convenience and independence that owning a car provides.

In response to the criticism, Dutta argued that the expenses on petrol for the car would have been similar to cab fares over five years, and the difference in the end would still be a significant amount in favor of investing in SIPs (Rs 13 lakh more in savings).

This debate is reminiscent of similar discussions in the past where financial advisors have advocated for investment over consumption.

Infosys Q2 Profit Rises, Raises Revenue Outlook

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Infosys posted a 4.7% rise in net profit for Q2 FY25, hitting Rs 6,506 crore, up from Rs 6,212 crore a year ago. Revenue grew 2.9% year-on-year, reaching Rs 40,986 crore. The company raised its full-year revenue growth forecast to 3.75-4.5% and announced a 16.7% interim dividend increase to Rs 21 per share, payable on November 8.

Strong performance was driven by strategic collaborations with Metro Bank, Proximus, TDC Net, and Posti. Infosys CFO Jayesh Sanghrajka stressed a focus on revenue growth and margins, while CEO Salil Parekh highlighted broad-based growth across sectors.

The company’s net profit for the quarter reached ₹6,506 crore, up from ₹6,212 crore in the same period last year. Meanwhile, its revenue for the quarter stood at ₹40,986 crore, marking a 2.9% year-on-year growth. Quarter-on-quarter, the company saw over 4% growth, with revenue climbing from ₹38,994 crore in the previous quarter.

The company has raised its full-year revenue growth guidance to 3.75-4.5%, showing optimism for the coming months. This increase in guidance comes as Infosys continues to leverage new strategic partnerships and strengthen its service offerings across key sectors.

Infosys also declared an interim dividend of ₹21 per share, reflecting a 16.7% hike compared to last year’s dividend. The payout is scheduled for November 8, underscoring Infosys’ strong financial position and commitment to rewarding its shareholders.

Broad-Based Growth and Margin Focus

During the first half of FY25, Infosys reported a year-over-year revenue growth of 2.9% in constant currency, with an operating margin of 21.1% for the second quarter. Infosys CEO Salil Parekh attributed this success to the company’s broad-based growth across various sectors and geographies, noting that the company saw 3.1% quarter-on-quarter growth in constant currency terms.

“We achieved strong growth in financial services, which was a key contributor to our performance this quarter,” Parekh said. This growth, along with steady client wins, has helped Infosys maintain momentum despite a challenging global economic environment.

Chief Financial Officer Jayesh Sanghrajka highlighted the company’s focus on accelerating revenue growth while maintaining a sharp focus on margin performance. “Our operating margin for the quarter was at 21.1%, driven by value-based pricing and efficient utilization of resources,” Sanghrajka said. He also pointed to the company’s strong cash generation, with free cash flow growing 25.2% year-on-year to reach $839 million. For the second consecutive quarter, Infosys achieved over 100% free cash flow conversion to net profits.

Infosys’ employee headcount rose by 2,456 in the quarter, bringing the total to 3,17,788. The company also approved the merger of WongDoody Inc., Blue Acorn iCi Inc., Outbox Systems Inc. (d.b.a. Simplus), and Kaleidoscope Animations Inc. into Infosys Nova Holdings LLC, further strengthening its business capabilities.

Strategic Collaborations and Future Outlook

Infosys continues to drive growth through strategic collaborations with key global players. The company entered a long-term collaboration with Metro Bank to enhance its IT and support functions, while also transforming the bank’s business operations. Metro Bank CEO Daniel Frumkin said the partnership would help the bank become more profitable and scalable in the long run.

The company also announced a collaboration with Proximus, a Belgian telecommunications provider, to explore new business opportunities. Proximus’ Chief Digital and IT Officer, Antonietta Mastroianni, welcomed the renewed partnership, highlighting its potential to unlock new opportunities.

Another key collaboration came with TDC Net, Denmark’s largest telecom infrastructure company. Infosys is set to help TDC Net transform into a more customer-centric technology company. TDC Net’s Chief Technology and Information Officer, Campbell Fraser, expressed confidence in Infosys’ ability to support their digital transformation.

Infosys also renewed its collaboration with Finland’s postal service, Posti, extending their partnership for another seven years to enhance customer experience and operational efficiency. Petteri Naulapää, Posti’s CIO and SVP, praised the ongoing collaboration and its role in driving innovation.

With these strategic partnerships and a strong financial outlook, Infosys is well-positioned for continued growth in the second half of the fiscal year.

 

Bajaj Auto Reports 9% Net Profit Growth in Q2 FY25, Driven by Strong EV Sales

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Bajaj Auto on Wednesday announced a 9% rise in net profit for the July-September quarter (Q2 FY25), posting a net income of Rs 2,005 crore, driven by robust performance in its green energy segment. The company’s electric vehicle (EV) sales surged, contributing significantly to its overall growth.

Adjusted for exceptional deferred tax provisions, Bajaj Auto’s profit after tax (PAT) reached Rs 2,216 crore, marking a 21% year-on-year increase. The company explained that the reported PAT of Rs 2,005 crore accounted for an additional provision of Rs 211 crore due to the impact of the Finance Act, 2024, which withdrew indexation and changed tax rates on investment income.

Revenue from operations grew 22% year-on-year, hitting Rs 13,000 crore for the quarter. Bajaj Auto’s stock responded positively, closing 0.88% higher at Rs 11,622.5 per share on Wednesday.

Electric Vehicles Lead the Charge

Bajaj Auto’s green energy portfolio hit new milestones, with the sale of 1 lakh electric vehicles (EVs) in September alone. Of these, 70,000 were Chetak electric scooters, which captured a 21% market share that month. The company’s portfolio of electric and CNG vehicles, spanning both two-wheelers (2W) and three-wheelers (3W), now contributes 40% of its total domestic revenues.

The company noted strong double-digit growth in its motorcycle and commercial vehicle segments, largely fueled by the near-tripling of electric scooter sales. The Pulsar brand continued to perform well, achieving its highest-ever quarterly sales of 1.1 lakh units.

Future Prospects

Bajaj Auto is also making strides in the electric three-wheeler (e3W) market, where it aims to replicate its dominance in the internal combustion engine (ICE) segment. The company reported that its market share in the e3W segment doubled from last year, reaching 35% by the end of the quarter.

The company remains in a strong financial position, with surplus cash reserves of Rs 16,392 crore at the end of Q2. This follows strategic investments of Rs 1,200 crore, primarily directed towards Bajaj Auto Credit Ltd. and EV-related capital expenditures, as well as a Rs 2,233 crore dividend payout in the first half of FY25.

With growing demand for electric vehicles and a strong financial base, Bajaj Auto is well-positioned to capitalize on the expanding green energy market and continue its upward trajectory.

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.

 

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.

India’s Ship Recycling Industry To See 10% Growth by 2028: Report

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India’s ship recycling industry is poised for substantial expansion, with an expected compound annual growth rate (CAGR) of 10% by 2028, positioning it as a key player in the global market. According to a report by CareEdge Ratings, India accounted for 33% of the global gross tonnage (GT) dismantled in 2023, placing it second only to Bangladesh, which handled 46% of global ship dismantling.

The industry is projected to grow to 3.8-4.2 million GT by 2025, up from an estimated 2.3-2.6 million GT in 2024. A major contributor to this growth is India’s robust infrastructure, particularly the Alang-Gujarat facility, one of the world’s largest ship recycling hubs with over 140 recycling yards.

India’s position in the global maritime sector is critical. Alongside Bangladesh, Pakistan, and Turkey, the country dominates more than 90% of global ship recycling activity. While contributions from other nations have been inconsistent, India has remained a steady leader in this field.

Market Insights and Future Potential

According to Sajni Shah, Assistant Director at CareEdge Ratings, several factors suggest a significant increase in ships entering the recycling market from 2025 onwards. These include the cooling-off of the Baltic Dry Index (BDI), stabilizing scrap prices, and a rise in obsolete ships. Additionally, countries with advanced infrastructure and green recycling capabilities are expected to capture a larger share of the global market in the future.

Despite the promising outlook, the industry faces challenges, particularly with fluctuating scrap prices. Prices for heavy melting scrap in Bhavnagar surged from Rs 28,800 per tonne in August 2020 to Rs 54,400 in April 2022, driven by supply chain disruptions and increased steel demand post-pandemic. By December 2023, prices had settled at Rs 39,900 per tonne, stabilizing between Rs 36,000 and Rs 44,000 per tonne throughout 2023.

The industry also grapples with safety and regulatory issues. For instance, in Bangladesh, ship recycling is often hazardous, with workers and nearby communities exposed to toxic materials that threaten their health and livelihood. This highlights the urgent need for stricter regulations and improved safety standards across the sector.

India’s ship recycling industry is set for impressive growth in the coming years, bolstered by strong infrastructure and increasing global demand. However, the industry’s long-term success will depend on implementing stringent regulations and ensuring the safety of workers and the environment. A balanced approach that prioritizes both economic development and sustainability will be key to unlocking the full potential of India’s ship recycling sector.

World Bank Lowers Bangladesh’s Growth Forecast Citing Political Instability

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The World Bank has revised Bangladesh’s economic growth projection for the fiscal year 2024-25, lowering it to 4%, down from an earlier estimate of 5.2%. This adjustment comes in response to the political unrest that has shaken the country, creating significant economic and political uncertainty.

In its South Asia Development Update for October 2024, the World Bank emphasized how the political turmoil of July and August has disrupted the nation’s economic performance, directly impacting its gross domestic product (GDP) growth. Supply chain disruptions and investor hesitancy have further contributed to the economic slowdown.

The Asian Development Bank (ADB) also recently cut its growth forecast for Bangladesh, revising it to 5.1% for the current fiscal year. The ADB cited similar concerns, noting that the political unrest over the past few months has created challenges for Bangladesh’s supply chains, adding pressure to its economic outlook.

Bangladesh and the Maldives stand out as the only two South Asian countries where the World Bank has downgraded growth forecasts. This reflects the unique political and economic hurdles facing both nations. Inflationary pressures are also expected to rise, while the broader South Asian region shows more positive economic trends.

Recovery Potential 

Despite these setbacks, the World Bank remains cautiously optimistic about Bangladesh’s long-term economic prospects. The global lender foresees a gradual recovery, underpinned by key reforms in the financial sector, improved business conditions, expanded trade, and greater domestic resource mobilization.

The recent political changes in Bangladesh, including the resignation of Prime Minister Sheikh Hasina and the appointment of an interim government following student-led protests in August, have further added to the country’s economic uncertainty. However, the World Bank’s projections for 2025-26 suggest that Bangladesh has the potential to rebound and achieve strong growth in the coming years.

While the near-term outlook for Bangladesh is clouded by political instability, the World Bank believes that with the right reforms, the nation can bounce back. Implementing structural changes in the financial sector, boosting investment, and strengthening domestic industries will be critical to ensuring long-term growth and stability.

 

Festive Boom in E-commerce Sales Cross Rs 54,500 Crore in One Week

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Indian e-commerce platforms recorded sales exceeding Rs 54,500 crore in the first week of the festive season, making up approximately 55% of the total sales projected for the upcoming month.

According to data from Datum Intelligence, a consumer technology market research firm, this marks a 26% increase in sales compared to the same period in 2023. The primary drivers of these sales were mobiles, electronics, and consumer durables, with home and general merchandise categories also contributing significantly. These categories accounted for 75% of the overall sales, while smartphones and TVs led purchases in tier 2 and tier 3 cities, making up over 70% of sales in these regions.

The festive shopping period, which began on September 26, will continue until November 3, concluding after Diwali. Overall sales during this period are expected to reach Rs 1 lakh crore.

Fashion, groceries, beauty, and personal care products have seen a notable surge in demand, with sales rising by 2-4 times compared to regular periods. Similarly, orders for toys, books, and kitchen essentials increased 2-5 times in the first week.

Shoppers are increasingly turning towards quick-commerce platforms, especially for lower-priced categories like groceries, beauty, and personal care. Key trends this festive season include the influence of Artificial Intelligence (AI), the rise of micro-influencers, and the growing popularity of quick-commerce in shaping consumer choices.

In a separate report, it is projected that more than 35 million smartphones will be sold during the festive period, marking a 3% year-on-year (YoY) growth in volume and a 9% YoY increase in value. The ultra-premium smartphone segment (priced above Rs 45,000) saw a 12% YoY growth during the initial week of sales, driven by strong performances from Apple and Samsung. The festive season typically accounts for 20-25% of the annual smartphone sales in India.

Noel Tata Named New Chairman of Tata Trusts Following Ratan Tata’s Demise

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Noel Naval Tata, the newly-appointed Chairman of Tata Trusts, on Friday said he looks forward to carrying on the legacy of Ratan Naval Tata and the founders of the Tata Group.

Earlier, the Tata Trusts board met at a joint meeting held in Mumbai and took the unanimous decision to appoint Noel Tata, the half-brother of Ratan Tata, as the new Chairperson after the latter’s demise.

“I am deeply honoured and humbled by the responsibility that has been cast on me by my fellow Trustees. I look forward to carrying on the legacy of Mr. Ratan N. Tata and the Founders of the Tata Group,” said Noel Tata. “Founded more than a century ago, the Tata Trusts are a unique vehicle for undertaking social good. On this solemn occasion, we rededicate ourselves to carrying on our developmental and philanthropic initiatives and continuing to play our part in nation-building,” he added.

The Trustees condoled the demise of Ratan Tata, and recalled his yeoman services not only to the Tata Group but also to nation-building. In separate meetings held immediately, thereafter, it was unanimously decided to appoint Noel Tata as the Chairman of the various Trusts that constitute the Tata Trusts and also designate him as Chairman, Tata Trusts.

Noel Tata’s appointment comes into effect immediately. Noel Tata is known for his relatively low-profile leadership, a stark contrast to Ratan Tata’s more public-facing role. He has been instrumental in driving the conglomerate’s growth since he joined the Tata Group in the early 2000s.

Earlier this year, Noel Tata’s three children — Leah, Maya and Neville — were appointed as trustees in multiple trusts associated with the Sir Ratan Tata Trust and Sir Dorabji Tata Trust. Leah is currently Vice President at The Indian Hotels while Maya is associated with Tata Capital. Neville is involved in Trent and the leadership team at Star Bazaar.

Since 1892, Tata Trusts, the oldest philanthropic institution in the country, has been at the forefront of creating lasting impact among communities. Rooted in the visionary philanthropy of our Founder, Jamsetji Tata, the Trusts remain resolute in catalysing transformative change and leading advancements that uplift communities across the nation.

Tata Trusts, which oversees the operations of 14 charitable trusts, holds a 65.3% stake in Tata Sons and plays a vital role in guiding the direction of the conglomerate. The largest shareholders in Tata Sons are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, together controlling more than 50% of Tata Sons’ ownership. The executive committee, previously chaired by Ratan Tata, includes key members like Venu Srinivasan, Vijay Singh (both Vice Chairmen of Tata Trusts), and trustee Mehli Mistry.

In the 2022-2023 fiscal year, Tata Trusts made significant contributions to various charitable initiatives, disbursing Rs 581.52 crore in grants. The Sir Ratan Tata Trust contributed Rs 456.42 crore, while the Sir Dorabji Tata Trust disbursed Rs 125.10 crore.