Indian markets surged on Tuesday, with the Sensex closing above 80,000 points, fueled by a global rally following Donald Trump's victory in the US presidential election. Investors are optimistic about potential pro-business policies under a Trump administration, despite concerns about his stance on renewable energy and potential impact on H-1B visa rules.
Economists and market analysts believe that a return of Donald Trump to the White House could bring both opportunities and challenges for the Indian market. While some sectors like software and pharmaceuticals might benefit, others could face tariff barriers. Despite potential volatility, India is expected to attract foreign investment due to its favorable policies and the 'China +1' strategy.
The Sensex staged a remarkable recovery on Tuesday, surging nearly 700 points after plunging over 1,200 points earlier in the day. This volatile session saw banking and metal stocks leading the rally, fueled by speculative buying and short covering. Despite heavy selling by foreign investors, domestic funds provided crucial support, buoyed by positive domestic economic indicators.
India's stock market is experiencing a decline as foreign investors withdraw record funds due to concerns about the slowing post-pandemic economic boom. Despite domestic investments preventing a larger downturn, waning consumer spending and high valuations are causing anxieties. Although the market shows potential for growth, experts predict further adjustments as the economic slowdown's impact becomes clearer.
Leading FMCG companies reported declining margins in the September quarter due to higher input costs and food inflation, slowing urban consumption. Firms like HUL, Dabur, and Nestle India noted muted demand, while rural markets showed growth. Companies plan price hikes to counter rising input costs.
The NSE introduces its new mobile app, NSEIndia, and expands its website language support to eleven regional languages, aiding wider investor participation across India. The app, available on iOS and Android, offers key features like market updates and customizable watchlists, providing secure access to market data.
Apple's revenue in India hit an all-time record due to increased sales of iPhones and other products like iPads, MacBooks, and AirPods. CEO Tim Cook highlighted India's growing importance, noting the expansion in production and retail presence. The company's global net sales rose over 6% to $95 billion for the quarter.
India's urban middle class is cutting back on spending due to inflation and unemployment, revealing weakness in urban demand for the second consecutive quarter. Major companies like Hindustan Unilever and Reliance's retail unit have reported softer consumption, impacting their earnings and the broader economic outlook.
This Diwali, consumer spending on snacks and gifts soared despite inflation concerns. Companies like Naturals Ice Cream, Dabur, and Parle Products saw significant sales boosts through affordable gift packs and strategic pricing. Urban areas showed budget caution, while rural demand remained steady. Further festive purchases are expected to maintain momentum.
The US economy showed strong growth in Q3, driven by increased household spending and higher federal defense expenditure. Inflation-adjusted GDP grew at an annual rate of 2.8%, with consumer spending rising 3.7%. These figures reflect solid domestic demand as the Federal Reserve eases its stringent monetary policies, just ahead of the upcoming election.
Goldman Sachs estimates India needs to create 10 million jobs annually to sustain 6.5% GVA growth. Key policy recommendations include incentivizing affordable social housing, diversifying IT hubs to smaller cities, and reallocating fiscal incentives towards labour-intensive manufacturing sectors to boost employment.
Hindustan Unilever and other FMCG companies are increasingly focusing on tailoring products to cater to Indian consumer nuances. By leveraging technology and understanding varied local preferences, these firms are introducing region-specific blends and health-focused offerings to meet the evolving demands for premium, differentiated, and sustainable products in India.
Dhanteras brought cheer for the consumer industry as robust sales were seen in cars, two-wheelers, smartphones, and premium electronic appliances. Despite high gold prices, buyers continued to purchase gold coins and jewellery. Maruti Suzuki and Tata Motors reported record car deliveries, while demand for large-screen TVs and smart appliances remained strong.
The Reserve Bank of India has transported another 102 tonnes of gold from the Bank of England to secure locations within the country, bringing the total to 510.5 tonnes held domestically out of 855 tonnes by the end of September. This move is part of efforts to secure holdings amid global geopolitical tensions, with further shipments possible.
Imports from China into India rose nearly 11% to $46.6 billion between April and August, driven primarily by computers, telecom equipment, and components, while exports dropped 8%. Electronics, machinery, and organic chemicals made up two-thirds of imports, widening the trade deficit to $40.8 billion.
Reliance's Campa Cola challenges beverage giants PepsiCo and Coca-Cola with its aggressive pricing strategy, offering 200 ml bottles at Rs 10. To counter this, Coca-Cola and PepsiCo are employing tactics such as better retailer margins and potential lower-priced packs, particularly in markets like Kerala and West Bengal.
Foreign fund trading activities and quarterly earnings from major companies are expected to drive the market. Investors will assess crude oil prices due to West Asian geopolitical tensions and the rupee's performance. Waaree Energies' listing also plays a crucial role, amid US election uncertainty and significant OCT market losses.
Facing a significant industry slowdown, car manufacturers like Maruti Suzuki, Honda, Mahindra, and luxury brands such as Audi and BMW are offering deep discounts, sometimes up to Rs 12 lakh, across various models from entry-level to high-end luxury. Analysts predict even deeper discounts post-Diwali to clear excess inventories.
Finance minister Nirmala Sitharaman emphasizes the need for sovereign ratings to properly reflect the economic realities of emerging markets to lower their capital costs. She calls for credit rating agencies to improve their methodologies and highlights the importance of IMF governance reforms amidst global economic challenges.
RBI governor Shaktikanta Das anticipates inflation will moderate after October, despite recent highs. Speaking at an IMF-World Bank event, Das emphasized efforts to align inflation with the 4% target and highlighted economic strength. He also warned of cryptocurrency risks and stressed international consensus on regulation.
CBDT extended the Income Tax Return deadline for the assessment year 2024-25 for corporates to November 15, 2024, addressing difficulties in electronic audit report submissions. This move aims to provide more time for compliance and reduce pressure. Additionally, a committee reviews the Income Tax Act, 1961, to simplify the law and reduce disputes.
BSNL has seen significant subscriber growth over the past two months, attracting users due to lower tariffs following tariff hikes by private telecom companies. In July and August, BSNL gained millions of new users while competitors like Jio, Airtel, and Voda Idea lost subscribers. BSNL's low Average Revenue Per User is partly because it has yet to fully launch 4G.
The demand for office space by global capability centres in India is set to rise, with projections reaching 26.1 million square feet by 2027. Karnataka's capital Bengaluru leads this growth, hosting 42% of the current 240 million square feet occupied by GCCs, emphasizing India's role in technology development and innovation.
Nvidia CEO Jensen Huang emphasizes India's potential to transform from an IT outsourcing hub into an AI innovation ecosystem, leveraging its vast data and computing expertise. With a significant portion of Nvidia's operations in India, Huang highlights the country's resources and stresses the importance of locally processing Indian data to maximize its value.
On Friday, the Sensex and Nifty fell nearly 1% each due to poor quarterly earnings and substantial foreign fund selling, with the Sensex dropping 663 points to 79,402. BSE’s market capitalization fell by over Rs 7 lakh crore. Foreign portfolio investors recorded a net outflow of nearly Rs 90,000 crore in October, while domestic funds provided some support.
India Inc is expected to report a 16-quarter low revenue growth of 5-7% for the September quarter. The stagnation in construction, a decline in industrial commodities, and sluggish investment-linked sectors contributed to the slowdown. Additionally, the agriculture sector experienced a significant 20-22% revenue drop.
Nvidia's AI summit in Mumbai saw CEO Jensen Huang praise India's tech capabilities while Reliance chairman Mukesh Ambani announced an AI infrastructure partnership. Indian companies like TCS, Tata Communications, and Infosys launched new AI initiatives, as Huang highlighted India's key role in language model innovation.
Finance Minister Nirmala Sitharaman emphasized maintaining stringent checks on FDI in the national interest, citing regional sensitivities, despite industry pressure. The focus is on ensuring the source of investment is secure. India aims to reach $100 billion annually in FDI, with reforms spanning central to local governance.
The Indian government has decided to remove the export duty on parboiled rice and the Minimum Export Price on non-basmati white rice, allowing Indian farmers to compete more effectively in the international market. These measures come amid a bumper paddy crop and significant buffer stock levels.
India is set to continue as the world's fastest-growing economy with projected growth at 7% in FY24-25, driven by strong macroeconomic fundamentals and rural consumption recovery. The IMF's Krishna Srinivasan highlighted necessary reforms in job creation, labor codes, trade barriers, infrastructure, and education to maintain competitiveness and tackle challenges like low female labor participation and youth unemployment.
Sebi chairperson Madhabi Buch is to appear before the Public Accounts Committee (PAC) of Parliament on Thursday for a performance review. Despite BJP's protest, she will address questions linked to allegations of financial misconduct and conflict of interest amid political tensions. Buch had sought an exemption from the PAC but was denied.
ICICI Prudential Life Insurance witnessed a 3% increase in net profit for the September quarter, reaching Rs 252 crore. Total income, net premium earned, and assets under management also saw significant growth. The solvency ratio stood at 188.6%. The firm plans to raise up to Rs 1,400 crore via Non-Convertible Debentures over the next year.
RBI notes a temporary slowdown in India's economy due to heavy rains and 'pitru paksha'. However, it remains optimistic about a recovery driven by festival season consumption and increased private investment. Rural demand is anticipated to rise with an optimistic agricultural outlook, while India's external sector shows resilience despite geopolitical issues.
The number of individuals reporting taxable income over Rs 1 crore rose significantly from 44,078 in AY2013-14 to nearly 2.3 lakh in AY2023-24, indicating higher incomes and better compliance. Salaried individuals comprised a substantial portion, but higher income levels saw more businessmen and professionals.
Prime Minister Narendra Modi inaugurated new airports in Madhya Pradesh, Chhattisgarh, and Uttar Pradesh under the UDAN scheme. These airports aim to boost regional connectivity and economic growth. The scheme, supported by tax and customs incentives, is projected to drive significant demand in Indian aviation, with over 2,200 aircraft needed by 2042.
Kotak Mahindra Bank's net profit increased by 4.8% YoY to Rs 3,344 crore in Q2FY25 but decreased by 5% QoQ due to a one-time gain in the previous quarter. Gross deposits increased by 15.1% YoY, while gross advances grew by 17.4% YoY. Provisions rose to Rs 660 crore from Rs 366 crore YoY.
ICAO has increased compensation limits for international flight issues under the Montreal Convention, effective Dec 28. The new upper limit for death compensation rises from Rs 1.4 crore to Rs 1.7 crore. This affects 140 countries, including India. The revision adjusts for inflation and requires legal provisions by December's end.
The Group of Ministers (GoM) on GST rate rationalisation proposed reducing GST on packaged drinking water bottles, bicycles, and exercise notebooks to 5%. They suggested raising GST on high-end shoes and wrist watches to 28%. These changes could generate additional revenue of Rs 22,000 crore, aiming to balance revenue while offering relief on essential items.
The Group of Ministers (GoM) decides to recommend waiving GST on health and term life insurance premiums for senior citizens, with a focus on providing financial relief. The GST Council will finalize the decision, but premiums over Rs 5 lakh for non-senior citizens will still attract 18% GST.
Kotak Mahindra Bank reported a 5% increase in standalone profit for Q2 ended September 2024, with a total profit of Rs 3,344 crore. The bank's total income rose to Rs 15,900 crore, with NII growing by 11%, while gross NPAs reduced to 1.49%. Consolidated net profit grew by 13% to Rs 5,044 crore.
HDFC Bank Ltd., India's largest private sector lender, recorded a 5% increase in net profit for the quarter ending September 30, 2021, reaching Rs 16,821 crore. Net interest income grew by 10% to Rs 30,114 crore. However, the bank's asset quality slightly deteriorated with gross NPA rising to 1.36%.
American retailer Foot Locker is expanding into India, viewing it as a key growth market. The company has partnered with Metro Brands for store operations and Nykaa Fashion for its online presence. Foot Locker aims to capitalize on India's growing sneaker culture, particularly among Gen Zs, office goers, and socialites.
The number of taxpayers in India increased by 82% from 2014-15 to 2023-24, and direct tax receipts surged 182%, largely due to better compliance and the use of technology. Personal income tax collections rose significantly, surpassing corporate tax collections for the second consecutive year.
Elon Musk thanked the Indian government for confirming satcom spectrum allocation will be done administratively, against bids, aligning with new telecom law. He plans to launch Starlink services in India, despite opposition from local telecom giants Reliance Jio and Airtel who seek auctions.
Elon Musk has opposed Jio's push for an auction of satellite spectrum, stressing it is traditionally shared by ITU guidelines. India's telecom minister confirmed administrative allocation for satellite spectrum, countering Jio's stance. Mukesh Ambani emphasized the need for local data storage, urging incentivization for setting up AI and machine learning data centers in India.Indian markets surged on Tuesday, with the Sensex closing above 80,000 points, fueled by a global rally following Donald Trump's victory...
