World
We will here show case the latest trends in the Globe from different industries and different verticals.
Top Print Advertisers from July to September 23, 23: TAM AdEx, SBS Biotech, Maruti Suzuki, and Kia
In 2023, Top10VPN calculated the worldwide economic impact of shutdowns, which included 79,238 hours of government-mandated internet outages, to be $9.01 billion. This indicates that India was responsible for approximately 6.5% of the total economic damage caused by internet outages worldwide.The cost of these disruptions—which included significant ISP throttling, internet blackouts, and shutdowns of social media—was estimated using a variety of metrics from the US Census, the World Bank, the ITU, and Eurostat.In India, internet outages are not unusual. India experienced 92 internet shutdown occurrences in 2023, and just a few days into 2024, the nation has already recorded another internet outage, according to SFLC.in's internet shutdown tracker. Furthermore, the Center has a history of taking action against particular websites and pressuring social media companies to remove content at their request. Authorities have disagreed with digital rights advocates over shutdowns, despite citing grounds including putting an end to rumors and misinformation.Since many users rely on online services for information and business, internet disruptions come at a high cost since they reduce trade, which has an economic impact.
Yellow Wood Partners will purchase Unilever's Elida Beauty division.
The Elida Beauty division of the Unilever group, which includes the brands Q-tips, Impulse, Caress, Tigi, Timotei, Monsavon, Brut, Moussel, Alberto Balsam, and VO5, has reached a deal to be sold to the Boston-based private equity firm Yellow Wood Partners. In 2022, the company's revenue was approximately EUR 0.8 billion.Due to the fact that these companies are essential to their everyday life, consumers all across the world adore them. "Our previous collaboration with the Unilever team aided us in comprehending Elida Beauty's potential," stated Tad Yanagi, a partner at Yellow Wood Partners.
Moves and win roundup: Week of January 2, 2024
The media agency for Publicis Groupe, Starcom, has announced a new win: starting in 2024, Starcom Indonesia will serve as BMW Group's media agency of record, joining Starcom in China and Singapore, which will continue to hold that title in their respective regions. As the media agency of record in these markets, Starcom will oversee strategic planning, media buying, and business transformation for all of BMW Group's most iconic brands, including BMW and Mini, after a regional media assessment by BMW Group.Former chief marketing and customer officer of AXA Hong Kong Andrea Wong has left the company to become senior vice president of group marketing and communications at Shangri-La Group. As stated in a LinkedIn post, Wong will work with new colleagues “to further strengthen the hotel brands, create impactful marketing campaigns and PR efforts, and further build up the Shangri-La Circle propositions to deliver superior customer experience.” She will report to Kuok Hui Kwong, the chairman of the group. Wong joined AXA in 2008 and has worked there for more than 20 years. She was appointed CMO of AXA Hong Kong and Macau. To improve its social media marketing service, Innocean has formed a social marketing organization called Innocean S, which is scheduled to open for operation in January 2024. Span Wealth is the newest client of Human, an integrated agency based in Mumbai that was created by Imran Khan and Chirag Raheja. The agency's brief calls for giving the brand a fresh look, incorporating classic elegance, and developing an influential, forward-thinking online presence. With more than 500 crores of assets under management, Span Wealth is a wealth management firm situated in Mumbai. Dorothy Peng announced on LinkedIn that she has become a partner at Deloitte Consulting in Singapore. Peng will be focusing on design and customer strategy in Southeast Asia. She spent more than eight years as an employee of RGA before joining Deloitte. In 2015, she started working for the agency as a group account director. In 2022, she received a promotion to SVP managing director Asia.
Anushka Sharma takes Priyanka Chopra's position as Rajnigandha Pearls' brand face for DS Group.
New Delhi: Bollywood star Anushka Sharma has been named the new brand ambassador for the mouth freshener brand Rajnigandha Pearls by DS Group, the company that makes Pulse sweets and Catch spices. Actress Priyanka Chopra, who has been marketing the brand since 2014, is replaced by her. Anushka Sharma was highlighted in a campaign by L&K Saatchi and Saatchi, an advertising agency, that emphasized the brand's innate goodness. In the TV commercial, Sharma saves a fellow model from a wardrobe malfunction by being the show-stopper at a fashion show. The underlying lesson is that even a small deed of kindness can benefit others.
MC Stan and MS Dhoni collaborate on Fire-Boltt
Leading Indian smart wearable manufacturer Fire-Boltt releases the #GaleTohMil advertisement, which stars the most unexpected pair—cricket great MS Dhoni and well-known Indian rapper MC Stan. This engaging movie seeks to showcase the exceptional qualities of Fire-Boltt's most recent invention, the ground-breaking Wristphone, which flawlessly blends the endless possibilities of a smartphone with the practicality of a smartwatch. With #GaleTohMil, Fire-Boltt showcases how technology is seamlessly incorporated into daily life while offering a new take on the marriage of sports and music.The video, which was conceptualized and filmed by the innovative powerhouse Moonshot, enthralls viewers with its distinctive fusion of humor, technology, and star power. The narrative takes place at a party, where MS Dhoni is approached by MC Stan and has an embarrassing encounter. As Dhoni struggles to remember Stan's name and songs, tension grows and the scenario takes an unexpected turn. The situation is amusing yet relatable.The story revolves around the Fire-Boltt Wristphone, which plays a pivotal role in saving Dhoni's life by giving him the knowledge he finds difficult to recall. The movie does a good job of conveying how useful the wristwatch is and why it is deserving of the hashtag #TheSmartestSmartwatch. "We are proud to introduce our first-ever Wristphone through this entertaining and engaging ad film featuring two iconic personalities, MS Dhoni and MC Stan," stated Arnav Kishore, CEO and Founder of Fire-Boltt. This wearable technology product is revolutionary, and we think the movie will do a great job of conveying to our viewers what makes it special. To guarantee broad visibility, the advertisement film will be heavily promoted on OTT channels and social media sites. Fire-Boltt wants to engage audiences from a varie
Many items in my business are designed: Piyush Pandey
I spent a brief time working at Ogilvy Mumbai in the early years of my profession. I was definitely looking forward to meeting Piyush and simply watching and learning from his talent. It was the strongest incentive to sign up. However, deep down I was also realistic about it. I was aware that he would never have a conversation with a junior. After joining, I came to the realization that he most likely would have, but I also understood it was impossible given the amount of work he had to accomplish each day. And boy, was I glad I was. Apart from the fact that he is an advertising genius, these are the things I picked up from him during my tenure, even though I never worked directly with him.I learned the power of words from him. On my first day there, I recall being sucked into a film short for a newly launched bank. I expected an assignment when I walked in, but instead I got a really good poem. It was exquisite. The story and the slogan were both brimming with skill. Written specifically for the pitch, Piyush delivered it to the group by reading it aloud. The client gave it their blessing because it was so clever. It was enjoyable to come up with ways to carry it out. That day made me proud to be a copywriter because he demonstrated to me the power of words to accomplish goals that so many rounds of PowerPoints couldn't. I learned from him that leaders are people too.Everyone gathered on the floor to celebrate Piyush's birthday by cutting cakes. He was asked to speak a few words, as custom would have it. He became so overcome by the festivities during his remarks that he started crying. The largest agency leader in our nation displayed weakness during a time when all of them exuded strength and conceit. Furthermore, this was taking place in front of 200 or more workers. And we all cherished it. He taught me early on that leaders are people too and that it's appropriate to occasionally display your feelings as a leader since it's the right thing to do.
Raaya's integrated marketing mandate is won by With & Chai Group.
Men's ethnic clothing company Raaya has awarded the marketing mandate to Pune-based advertising firm Wit & Chai Group. Following a multi-agency pitch, the mandate was acquired by Wit & Chai in October 2023.With online and offline promotions, Wit & Chai Group hopes to raise awareness of Raaya and bolster its standing as a high-end menswear brand. "Wit & Chai gave a strong pitch, and we think working with them will help our brand reach new audiences. Our goal is to set Raaya apart as a luxury brand that is reasonably priced and to highlight our exceptional craftsmanship. Preshit Jain remarked, "We are confident that Wit & Chai has our best interests at heart.Furthermore, Wit & Chai Group partner Nahush Gulawani added, "We are thrilled to collaborate with a brand like Raaya that has such an intriguing focus: men's ethnic apparel. We are eager to collaborate with the Raaya team and use our skills to further improve the brand image. Men's ethnic clothing company Raaya has awarded the marketing mandate to Pune-based advertising firm Wit & Chai Group. Following a multi-agency pitch, the mandate was acquired by Wit & Chai in October 2023.With online and offline promotions, Wit & Chai Group hopes to raise awareness of Raaya and bolster its standing as a high-end menswear brand. "Wit & Chai gave a strong pitch, and we think working with them will help our brand reach new audiences. Our goal is to set Raaya apart as a luxury brand that is reasonably priced and to highlight our exceptional craftsmanship. Preshit Jain remarked, "We are confident that Wit & Chai has our best interests at heart.Furthermore, Wit & Chai Group partner Nahush Gulawani added, "We are thrilled to collaborate with a brand like Raaya that has such an intriguing focus: men's ethnic apparel. We are eager to collaborate with the Raaya team and use our skills to further improve the brand image.
Day 20 Box Office Collection for Dunki, Shah Rukh Khans movie is getting about ₹500 crore worldwide.
Day 20 Box Office Collection for Dunki: "Dunki," Shah Rukh Khan's third Bollywood movie of 2023, is doing well at the box office. The Raju Hirani movie saw a drop on its third Tuesday; according to Sacnilk.com, early estimates indicate that the movie made ₹1.30 crore on Day 20. After 20 days after its premiere, the film has reportedly made over ₹219.27 crore in the Indian box officAccording to a Sacnilk.com assessment, the movie's occupancy on its twentieth day was 10.47 percent in Hindi, with morning shows seeing 8.72 occupancy, afternoon shows at 10.29 percent, evening shows at 10.25 percent, and night shows at 12.61 percent.In relation to the worldwide figures, Dunki is currently on track to surpass ₹500 crore worldwide. The industry tracker claims that the SRK film has made ₹430 crore in net revenue globally. According to a recent tweet by Red Chillies Entertainment on X, the movie has made ₹447.70 crore at the global box office.On the day of its release, Dunki brought in ₹29.2 crore net in India; however, Day 2 saw a sharp decline to ₹20.12 crore. Riding high on great word-of-mouth, the movie brought in ₹160.22 crore net in its first week, while the drama about immigration brought in ₹46.25 crore net in its second week in India.
Melissa Niebes is named CEO of Federal Package, effective January 1, 2024.
Melissa Niebes has been named the new Chief Executive Officer of Federal Package, a turnkey contract manufacturer with its headquarters located in Chanhassen, MN. Her appointment will take effect on January 1, 2024. Niebes is Federal Package's President and Chief Commercial Officer at the moment. She will take over as CEO from Steve Dakolios, who recently declared his intention to become a Vice Chairman and Senior Advisor at Federal Package."Melissa has a strong track record as a growth-oriented leader in the consumer goods sector. She has given the business new life, direction, and energy. As the business grows, she will keep improving operational effectiveness and organizational procedures. The time is right for new leadership, and Melissa is qualified to advance our long-term plan and quicken
Sensex slips for 3rd day, dips 314 pts; OFSS up 27%, LTIMindtree tanks 11%
Intraday, the Nifty witnessed a pullback from the support zone of 21,820 – 21,300, which is likely to continue over the next few trading sessions. On the upside, the counter-trend pullback can extend till 21,600 – 21,650 where resistance in the form of the 20-day moving average is placed.In terms of levels, 21,550 – 21,570 is the immediate hurdle zone while 21,350 – 21,300 is the crucial support zone. Bank Nifty has reached the 161.82% Fibonacci extension level 45,768, which also coincides with the 20-week moving average making the zone of 45,800 – 45,600 a crucial support zone.Until this is not breached on the downside, we can expect the recovery to continue. On the upside, the pullback can come till 46,400 – 46,600.Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas. The benchmark indices exhibited recovery from the day’s low and ended in red amid weak global cues, as investors are trimming bets on rapid FED cuts due to strong US retail sales and the resulting rise in global bond yields.Furthermore, oil price advances and rate escalation risks have led to disruptions in global shipping and crude production.The broader market continued its selling pressure given the elevated valuation and profit booking with an aim for sector rotation.Indian snacks maker Haldiram's is in talks to acquire a majority stake in Prataap Snacks, which is valued at $350 million, to expand its presence in the potato chip market, two people with direct knowledge of the matter said.The talks are at an early stage and a valuation has not been discussed, though it could be at a premium to Prataap's stock price.Haldiram's is eyeing a majority stake of at least 51%, but a final number has not been decided, said the sources.
Adani stocks found buyers in Indias retail investors during Hindenburg row
India’s retail investors piled into Adani Group companies as their shares cratered in the wake of the Hindenburg Research’s scathing report last January. A year later, they’re still keeping the faith. Individual holdings in nine of the group’s 10 stocks at the end of December are higher than they were before the short-seller’s attack on the conglomerate, exchange data compiled by Bloomberg show. The group’s market value has increased by more than $60 billion since late November, and is just $50 billion away from erasing the losses spurred by Hindenburg’s report. The recovery likely rewarded retail investors who used the selloff as a buying opportunity. “Many of the retail investors came in after the crash,” said Chakri Lokapriya, managing director at Mumbai-based asset manager RedStrawBerry LLP and former fund manager at BNP Paribas Asset Management. “They have exhibited a sense of maturity to hold on given that infrastructure companies take longer to realize their earnings potential.” While foreign investors, insurance companies and high-networth individuals pared their holdings in various group entities in 2023, the number of retail investors — those with at least Rs 2,00,000 ($2,411) to invest — jumped 42 per cent to 6.7 million in Adani companies, data compiled by Bloomberg show. Hindenburg’s allegations of stock manipulation and fraud, repeatedly denied by the group, had wiped off more than $150 billion from its market value at one point. Billions of dollars in investments from marquee funds including GQG Partners LLC, and more recently, an observation from India’s top court that it won’t take media reports on Adani as the “gospel truth,” has renewed investor confidence in the group stocks. To be sure, retail shareholding in the flagship Adani Enterprises Ltd. and Adani Ports and Special Economic Zone Ltd. fell from the levels reached at the end of March 2023, as the rally likely prompted some investors to book gains. “Retail investors who bought into these stocks definitely made money,” said Ambareesh Baliga, an independent market expert. “But when you are buying momentum stocks, you should book profits from time to time.”
Apple expands India presence, opens office covering 15 floors in Bengaluru
US-based technology giant Apple expands its presence in India with a new office in Bengaluru, Karnataka. The new Apple office is located at Minsk Square in the center of the city. In its proximity, there are landmarks buildings and spots such as parliament, high court, central library, Chinnaswamy cricket stadium, and one of the largest green parks within Bengaluru. Covering 15 floors, the new Apple office will house up to 1,200 employees and features a dedicated lab space, areas for collaboration and wellness, and Caffe Macs. Its proximity to Cubbon Park metro station means public transit is easily accessible for employees. "Apple is thrilled to expand in India with our new office in the heart of Bengaluru. This dynamic city is already home to so many of our talented teams, including software engineering and hardware technologies, operations, customer support, and more. Like everything we do at Apple, this workspace is created to foster innovation, creativity, and connection. It’s an amazing space for our teams to collaborate” said Apple.From its Bengaluru office, Apple’s teams will work across a wide range of Apple’s business — from software, hardware, services, IS&T, operations, customer support, and others. In line with Apple's global presence, the new Apple office in Bengaluru boasts an interior crafted from locally-sourced materials, including stone, wood, and fabric in the walls and flooring, and the office is filled with native plants. The office is designed with sustainability at the core – will run on 100 per cent renewable energy. With it Apple aims to achieve a Leadership in Energy and Environmental Design (LEED) Platinum rating — the highest level of LEED certification. Apple has been carbon neutral for its corporate operations since 2020, and has run all Apple facilities using 100 per cent renewable energy since 2018. In India, the company has its corporate office footprint in Mumbai, Hyderabad, and Gurugram, and now in Bengaluru.
Adani Group set to start mapping famous Mumbai slums Dharavi in weeks
The conglomerate owned by tycoon Gautam Adani won a government contract to redevelop Dharavi in late 2022 and will begin surveying the roughly 600 acre densely packed neighborhood in March, according to people familiar with the matter, who asked not to be identified because they aren’t authorized to speak publicly. The Times of India reported Tuesday that the survey will kick off in two weeks. His bid to revamp Dharavi has received considerable attention thanks to the slum’s fame with tourists and backdrop to multiple films, including 2008’s Slumdog Millionaire. But Adani Group faces considerable political opposition and legal hurdles to completing the renovation, which has been sounded out with little progress for decades. Adani, one of India’s richest and most powerful businessmen who is seen to enjoy strong ties to Prime Minister Narendra Modi, is expected to complete the estimated $3 billion project over the next seven years, the people said. Last year, the billionaire said he intends to turn Dharavi into a modern hub and support the small industries based there. His bid to revamp Dharavi has received considerable attention thanks to the slum’s fame with tourists and backdrop to multiple films, including 2008’s Slumdog Millionaire. But Adani Group faces considerable political opposition and legal hurdles to completing the renovation, which has been sounded out with little progress for decades. In a statement issued on Monday, Adani said that eligible residents will get a 350 square foot flat in the area once the project is completed, while ineligible residents will be rehoused in areas across the city.But with few other details about Adani’s plans for the slum yet to be made public, many of Dharavi’s estimated million residents believe Adani will gut their community, shunting them into poor quality apartments or rehouse them miles from Mumbai’s center.Adani is also locked in a legal battle in the Bombay High Court with a Dubai-based consortium of developers and investors called SecLink Technologies Corp., which won a 2018 bid to revamp Dharavi. That tender was later canned and reissued by the state government of Maharashtra, which counts Mumbai as its capital and holds a 20% stake in the Adani-controlled entity pursuing the project. Adani’s team are aware they will have to win trust of residents and may face violent protests while conducting the survey, which will determine who is eligible for new apartments and commercial spaces, the people said.They added that the survey will help build out Adani’s master plan for the slum, which is expected to be submitted to local authorities by March — a delay from an original December deadline, according to the original tender documents.While local firm Genesys International Ltd. will map the area, UK consultancy Buro Happold Ltd. will outline the physical infrastructure needs, while Boston-based Sasaki Associates Inc. will be in charge of the overall re-design, said one of the people.
Bond market expects RBI to change policy stance in February review
Bond market participants are expecting the Reserve Bank of India (RBI) to change its stance in the February policy review to neutral from withdrawal of accommodation, citing the continuous variable rate repo (VRR) auctions. “RBI is trying to adjust liquidity and bring it close to neutral or zero. The way RBI spoke in the last policy, it doesn't look like it wants a hike anytime soon,” said Naveen Singh, vice-president of ICICI Securities primary dealership.“If they don't want to cut now, but they also don't want to hike, then what's the point of keeping withdrawal of accommodation stance? They can very well come to a neutral stance. And, a neutral stance doesn't stop RBI from hiking if it wants to. Consequently, the market has been strategically taking long positions in government bonds, said dealers. “A majority of the people, if not everyone, is taking long positions (buying) because the market is factoring in that the RBI would change its stance in February,” said a dealer at a state-owned bank.Consequently, the market has been strategically taking long positions in government bonds, said dealers. “A majority of the people, if not everyone, is taking long positions (buying) because the market is factoring in that the RBI would change its stance in February,” said a dealer at a state-owned bank.Yield on the benchmark 10-year government bond has fallen by 3 basis points (bps) in January so far. In December, the yield had fallen by 11 bps. “A minority section of the market thinks that a change in stance in February is possible. The general view is that April is when the change in stance happens,” said Vijay Sharma, senior executive vice-president at PNB Gilts.“Even after this Rs 1.75 trillion VRR, the liquidity is still in deficit mode. It is apparent that through the recent consecutive VRR auctions, RBI is ensuring that tightness in liquidity is not stretched. However, it is too early to say that RBI is taking an accommodative stance. So, it is still a wait-and-watch situation.” he added. The central bank has been conducting VRR auctions in order to infuse liquidity into the banking system. In the 13-day VRR auction conducted by the RBI on Friday, bids were received for Rs 3.92 trillion, against a notified amount of Rs 1.75 trillion.In the preceding VRR auctions, the central bank received a strong demand, with banks submitting bids ranging between 2.5 and 3.2 times of the bidding amounts. This is due to tight liquidity conditions in the system. Liquidity remained largely in deficit mode in the third quarter. The central bank had conducted a VRR auction after six months on December 15.Market participants observed that despite the higher-than-expected US consumer price index (CPI), the US Treasury yield softened. This reinforced the anticipation of a rate cut by the Federal Reserve in March.
MC Exclusive | Capacity addition, lower AT&C losses top RK Singhs wishlist for Modi 3.0
With the general elections scheduled in April-May, Union Minister for Power and New and Renewable Energy RK Singh listed out his top priorities with the hope that the Narendra Modi government will return for the third consecutive term. "The top priority once the government led by Modi is back in power will be increasing our electricity generation capacity. The other priority will be to reduce the aggregate technical and commercial (AT&C) losses of distribution companies (discoms) to about 10 percent," Singh said during a fireside chat at Moneycontrol's Policy Next Summit in Delhi on January 18. "Rest, India is already a leader in energy transition, so I am not worried about the country's renewable energy targets. We will overachieve it anyway," he said. He said capacity addition is important to keep up with India's growing energy demand. “Since our country is going to continue growing at 7.5 percent or more for the next three decades, we will have to ensure enough electricity. In 2030, our peak demand is going to go up from 241 GW today to 366 GW. Our established capacity has to go up to 900 GW, from about 427 GW today," the power minister said. Giving an overview of the ongoing capacity additions in the power sector, the Union minister said the government is adding around 99,000 megawatt (MW) of renewable energy capacity, which is under construction. Another about 32,000 MW is under various bidding processes. Besides, the government has decided to bid 50,000 MW of renewable energy projects every year.On thermal capacity addition plan, Singh said the government will add 87,000 MW (87 GW) by 2030. "About 27,000 MW is under construction. In addition, we have bid out about 12,000 MW of thermal capacity. Another, 21,000 MW coal-fired capacity is under survey and investigation. Further, about 22,000 MW are under initial stages, where we have identified the land," he said. Singh said the government intends to increase India's hydropower capacity from the current 47,000 MW to about 90,000-100,000 MW. Talking about reduction of AT&C losses of discoms, the Union minister said he has set a fresh target of reducing it to 10-11 percent.AT&C losses are a combination of energy loss and commercial loss. While energy loss may comprise technical loss, theft, and inefficiency in billing, commercial loss constitutes default in payment and inefficiency in the collection. In 2021, the government had set the target to bring down AT&C losses to 12-15 percent by the financial year 2025. However, going by the latest provisional data, the government is likely to have achieved this target two years in advance.According to data from the power ministry, AT&C losses were as high as 25.5 percent in FY13. Till FY21, the AT&C losses stood at 22.3 percent. However, in FY22 it drastically declined to 16.4 percent. As per provisional data, in FY23, India's average AT&C losses have further come down to 13.5 percent.
HNIs chase mid, small caps, IEX under bear attack, I-Pru Life tumbles, NHPC in focus
“Current earnings, future prospects, management, marketability are all factors more or less independent of assets which contribute their share to the intrinsic value.” - Benjamin Graham. Sentiment has turned cautious after three successive sessions of fall, but two days of gains could change that. In the past, mid and small caps would take a battering during market corrections and investors would flee to the safety of large caps. But now exactly the opposite is taking place — large caps are sliding harder than second-line stocks when the market falls.Whispers in market is that many of the mid and small cap companies say they have good earnings visibility for the next few quarters. And that is giving HNIs the comfort to hold on their positions in the stocks. The stock prices so far indicate that the market is willing to believe the earnings story. They would flag when there's still a couple of quarters of earnings growth left. Bull argument: Spot LNG prices have softened. Strong demand for LNG across sectors of late, and this trend is likely to strengthen going forward.Bear argument: Competition is rising, also domestic gas production is increasing. The capex on its proposed petrochemicals foray could weigh on margins. Stock has fallen 16 percent in last couple of trading sessionsBear argument: Huge build up of speculative positions in F&O segment. Uncertainty over the market coupling policy for power exchanges an overhang on the stock.Bull argument: Stock has good support in the Rs 120-125 band. Also, concerns about the market coupling have already been priced in. Stock under pressure as government to sell 2.5 percent stakeBull argument: Seen benefitting from India’s commitment to net-zero as hydro power not polluting like thermal power. Capacity expected to go up sharply in the coming years.Bear argument: Increase in floating stock could be an overhang in the short term. Right now, power is a fancied sector and there is unusually high demand for PSU stocks. This could change. Earnings could be volatile because of dependency on monsoon. GQG Partners upped its stake in ITC to 2.79 percent from 1.58 percent.Bull argument: A good defensive bet if the market continues to correct further. Cigarette volumes increased in Q2 and the trend is likely to sustain.Bear argument: Revenues from agri-business is under stress in FY24 due to a ban on the exports of wheat and rice. Re-rating story is largely over. Further gains will depend on ability to grow earnings.
IndusInd Bank Q3 results impress analysts. Should you buy or sell?
IndusInd Bank impressed the street with a healthy set of number for the December quarter and analysts remain bullish on the counter, counting steady margins, improving retail deposit mix and strong loan growth as some of the key positives. In the past year, the stock has jumped more than 31 percent, outperforming Bank Nifty index which is up 8 percent. The stock hit a 52-week high of Rs 1,694 on January 15.The bank's net profit grew 17 percent on-year to Rs 2,301 crore, aided by healthy net interest income (NII) growth of 18 percent and lower provisions, the private lender said on January 18. At a time when banking sector is grappling with higher cost of funds, its net interest margin (NIM) saw a modest expansion of two basis points (bps) YoY to 4.29 percent in the December quarter. Analysts at Jefferies shared a "buy" call for IndusInd, with a target price of Rs 2,070, saying the lender's NII growth was among the best across coverage. "IndusInd's profit met estimates but they used Rs 200 crore of contingent buffers. We see 20 percent profit compounded annual growth rate (CAGR) in FY24-26, with return of equity (RoE) of 16 percent in FY25," they wrote in their result review. HSBC, too, shared a "buy" call, with a target price of Rs 2,040 apiece on the back of in-line Q3 operating performance, but remain wary of higher slippages. "We forecast CAGR of 23 percent for operating profit and 21 percent earnings per share (EPS) over FY24-26," they said. The rise in fresh slippages, or bad loans, however, remained a key concern during the quarter, analysts at Morgan Stanley said, trimming EPS by 0.5 percent for FY24 and a percent for FY25. The brokerage firm, however, shared an "overweight" call with a target price of Rs 1,850 per share. IndusInd Bank's fresh slippages rose 20.5 percent on a sequential basis to Rs 1,700 crore in the December quarter due to a elevated slippages in corporate and vehicle finance books. However, the management guided that they will normalise to Rs 1,200 crore going ahead. Gross non-performing asset (GNPA) and net NPA ratios were stable at 1.9 percent and 0.5 percent, respectively, due to asset reconstruction company (ARC) sale of Rs 3,100 crore. On the business front, analysts at Macquarie said 24 percent on-year growth in retail book was encouraging during the quarter. "The retail book growth was driven by vehicle book growth. As per liquidity coverage ratio classification mix, retail deposit improved to 45 percent YoY," the brokerage firm said, sharing an "outperform call" with a target price of Rs 1,900 a share. The lender's loan growth was up by 20 percent YoY, while deposits grew by 13 percent YoY. The management expects loan growth to be in the range of 18-23 percent, with the retail loan mix at 55-60 percent. "We estimate 21 percent earnings CAGR over FY24-26, leading to RoE of 16.2 percent in FY25," analysts at Motilal Oswal Financial Services said, reiterating a "buy" rating for IndusInd Bank with a target price of Rs 1,900. Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Interim Budget 2024 Expectations: Govt to target fiscal deficit at 5.3% of GDP for FY2025, says ICRA
ICRA expects the fiscal deficit target for FY2025 to be set at 5.3 per cent of GDP, midway through the expected print of 6.0 per cent for FY2024 and the medium-term target of sub-4.5 per cent by FY2026.With the the Union Finance Minister Nirmala Sitharaman all set to present the interim Budget for the fiscal year 2024-25 on February 1, 2024, an analysis by ICRA suggested that the government is likely to target fiscal deficit at 5.3 per cent of GDP for FY2025, entailing a reasonable degree of fiscal consolidation amid slower capex growth. The upcoming Budget will be an interim one and is said to have no major announcements as it is coinciding with the general elections year which is scheduled for this year. The full budget for the fiscal year 2024-25 will be presented after the formation of the new government following the general elections. The Budget is allotted for the upcoming fiscal year, which runs from 1st April to 31st March of the next year.However, the expansion in the Government of India’s (GoI’s) capex and the extent of fiscal consolidation would be scrutinised closely, given the implications for growth and G-sec yields, respectively. ICRA expects the fiscal deficit target for FY2025 to be set at 5.3 per cent of GDP, midway through the expected print of 6.0 per cent for FY2024 and the medium-term target of sub-4.5 per cent by FY2026. “This, along with our projection of an appreciable dip in the revenue deficit, would allow for a capex target of Rs 10.2 trillion for FY2025, 10 per cent higher than the expected level for FY2024 vis-à-vis the 20 per cent-plus YoY expansion seen during FY2021-FY2024. A higher capex target would impinge on the GoI’s ability to bridge half the required fiscal consolidation in FY2025, thereby making the task of reaching medium-term fiscal deficit target by FY2026 even more challenging,” ICRA said in a report. Given the favourable macroeconomic backdrop and expectations of the benign domestic environment sustaining in the next fiscal, per the analysis by ICRA, the GoI is expected to continue on the fiscal consolidation path in the Union Budget for FY2025. However, it added that this is likely to entail a slower expansion in capex vis-à-vis that seen in the post-Covid years, which could weigh on the growth in economic activity. Additionally, with the upcoming Budget set to be an interim one for the purpose of a vote-on-account, major policy changes and announcements are unlikely at this juncture, it said.“We expect the GoI’s gross tax revenues (GTR) to grow by a healthy 11 per cent in FY2025, led by direct taxes and GST collections, even as the growth in excise and customs duty collections is likely to be subdued,” it said. The disinvestment target is likely to be pegged at sub-Rs 500 billion for FY2025. Given the uncertainties involved in market transactions, it would be prudent to set a moderate target of sub-Rs 500 billion for FY2025, instead of a higher aim that may disrupt the budget math if there is a large shortfall in such receipts by the end of the fiscal, based on the past year trends. Furthermore, ICRA expects the revenue expenditure to increase by a modest ~4 per cent in FY2025, led by a moderate growth in interest payments amid a slight moderation in allocation for subsidies and a continued focus on curtailment of other expenses. It added, “We estimate the GoI to budget for a capex of Rs 10.2 trillion in FY2025, implying a relatively sedate YoY expansion of ~10 per cent, compared to over 20 per cent expansion seen in each of post-Covid years. The slowdown in capex growth is likely to have some bearing on economic activity and GDP growth.” As already mentioned above, ICRA expects the GoI to target a fiscal deficit of 5.3 per cent of GDP in FY2025, midway through the expected print of 6.0 per cent in FY2024 and the medium-term target of 4.5 per cent for FY2026.
Dense fog impacts flight operations at Delhi airport
The IGI airport experienced dense fog with visibility ranging between 50 and 100 metres from 12.30 am to 6.30 am, which improved and currently the visibility is 300 metres at 8 am today. Several flights were delayed at Delhi International Airport due to dense fog and low visibility. A few flights were also cancelled due to severe fog conditions in several parts of the country, Flight Information Display Board (FIDB) at Indira Gandhi International (IGI) Airport showed. The IGI airport experienced dense fog with visibility ranging between 50 and 100 metres from 12.30 am to 6.30 am, which improved and currently the visibility is 300 metres at 8 am today, India Meteorological Department (IMD) mentioned in a tweet while adding that Runway Visual Range (RVR) is between 600-1200 metres. According to the weather forecast agency, very dense fog is when visibility is between 0 and 50 metres, between 51 and 200 metres is dense, between 201 and 500 metres moderate, and between 501 and 1,000 metres shallow. Several flights were also delayed and a few were cancelled due to the prevailing fog. Arrived from Bahrain and my (connecting) flight is delayed by one hour,” a passenger at Delhi’s IGI airport said. People in Delhi woke up to a foggy Thursday morning with the minimum temperature settling at 6.6 degrees Celsius, one notch below the season’s average, the weather department said. The Financial Express logoThe Financial ExpressSign inInterim Budget 2024 Expectations: Govt to target fiscal deficit at 5.3% of GDP for FY2025, says ICRARam Mandir inauguration date draws closer: Find out the top stocks with Ayodhya connection to bet onThe regional Lala Land! From cinemas to TV, OTT, regional content catches the imagination of viewersWhere to invest for your child’s higher educationBusiness NewsBusinessAirlines AviationFlight Operations Hit! Dense Fog Delays Several Flights At Delhi Airport – Details InsideFlight operations hit! Dense fog delays several flights at Delhi Airport – Details insideThe IGI airport experienced dense fog with visibility ranging between 50 and 100 metres from 12.30 am to 6.30 am, which improved and currently the visibility is 300 metres at 8 am today. The IGI airport experienced dense fog with visibility ranging between 50 and 100 metres from 12.30 am to 6.30 am, which improved and currently the visibility is 300 metres at 8 am today, India Meteorological Department (IMD) mentioned in a tweet while adding that Runway Visual Range (RVR) is between 600-1200 metres.Planned model of Rajmata Vijayaraje Scindia Airport in Gwalior (Image/@MoCA_GoI)Gwalior soars higher! Jyotiraditya Scindia boosts regional connectivity with new flights to 3 cities including Ayodhyapenalties for IndiGo and MIAL; Air India, SpiceJet finedMumbai Airport tarmac incident leads to rare high penalties for IndiGo and MIAL; Air India, SpiceJet fined Rs 30 lakh each – Here’s what happenedHindustan 228 aircraft HALHAL to unveil Hindustan-228 aircraft, upgraded Dhruv helicopter at Wings India 2024Air India Express Gwalior to Bengaluru direct flightAir India Express expands footprint: Daily direct flight from Gwalior to Bengaluru takes offAccording to the weather forecast agency, very dense fog is when visibility is between 0 and 50 metres, between 51 and 200 metres is dense, between 201 and 500 metres moderate, and between 501 and 1,000 metres shallow. Several flights were also delayed and a few were cancelled due to the prevailing fog.“I arrived from Bahrain and my (connecting) flight is delayed by one hour,” a passenger at Delhi’s IGI airport said.Dense fog prevails in parts of the country People in Delhi woke up to a foggy Thursday morning with the minimum temperature settling at 6.6 degrees Celsius, one notch below the season’s average, the weather department said.The Indian Meteorological Department has issued a yellow alert for moderate to dense fog at isolated places in the city for the next two days.According to an official release by the IMD, ‘very dense fog’ was observed in isolated parts of Punjab, Haryana, West Rajasthan and Bihar at 5.30 am on Thursday.Similar heavy fog was also reported in isolated parts of Delhi, West Uttar Pradesh, Jharkhand, Odisha and Assam while moderate fog was observed in isolated parts of Sub-Himalayan West Bengal and Sikkim, as per IMD.
Budget 2024: A pressing issue that may not wait till full budget
The fiscal deficit target of 5.3% will be set by the government in FY25, keeping in view the fiscal consolidation path till FY26, as it normalises capital spending and refrains from any major announcements in the interim budget before the general elections, Icra and Barclays economists have said. ICRA expects the fiscal deficit target for FY25 to be set at 5.3% of GDP, midway through the expected print of 6.0% for FY2024 and the medium-term target of sub-4.5% by FY26. India's Fast Moving Consumer Goods (FMCG) sector, which has 34% of its market in rural areas, is a good indicator of rural economic health. It is facing challenges in rural areas due to sluggish demand. The deficiency in rainfall in key agricultural states has disrupted the revival of rural demand seen in the first two quarters of the financial year. President of All India Consumer Products Distributors Federation, Dhairyashil Patil, has told TOI that FMCG sales in rural areas are 20-30% lower than usual. Demand for daily household products and groceries continued to be challenging in villages during October-December quarter, potentially hurting volume growth of the overall consumer goods sector. Godrej Consumer Products said demand trends in the fast-moving consumer sector during the third quarter were like the earlier quarter, while Marico said urban markets stayed steady but rural markets offered little cheer."High rural unemployment, along with demand for NREGS, reflects rural stress. El Nino derailed the initial green shoots seen at the start of FY24. Increased aggression of smaller players and alternative avenues of spending such as higher spends on education, medical, telecom charges, are leading to softer growth in the FMCG sector," Abneesh Roy, executive director at Nuvama Institutional Equities, has said. Consumer goods companies and analysts say demand for daily groceries and personal and home products in villages continued to trail urban growth in the December quarter but expect a steady recovery across markets on improving macro indicators, positive consumer sentiment and, importantly, increase in government spending in the election year.Another marker of rural distress is stiff demand for work under the Mahatma Gandhi National Rural Employment Guarantee Scheme. The budgetary outlay of Rs 60,000 crore for the shceme for fiscal 2024 was exhausted by November itself. The government subsequently provided Rs 10,000 crore in urgent assistance to meet demand.The FMCG companies have high hopes from election-year spending that will spur rural consumption. "During an election year, governments often extends benefits which are provided as part of various schemes, offer sops, helping rural households," said Akshay D'souza, chief of growth and insights at retail intelligence platform Bizom.
What is the meaning of happy customers?
The ICC Cricket World Cup helped India's economy by increasing consumer spending across a number of businesses, with hotels, restaurants, and sports goods retailers benefiting most. Local cafes, fine-dining establishments, and small enterprises also saw growth. Retailers might expand business hours, hold freebies and contests, use social media platforms for engagement, start advertising campaigns, and push specials in order to take advantage of the increase in spending. A comfort.People had plenty to celebrate in 2023, from large-scale athletic events to significant concert tours. During the ICC Cricket World Cup, India hosted a multi-week athletic spectacular that was loved by legions of spectators. Companies planned trips, friends and family got together to support their teams, and fervent supporters traveled to destinations like Chennai and Delhi, just two of the several host towns that were humming with enthusiasm. There were numerous knock-on repercussions on the Indian economy. Consumer spending increased in all sectors of the economy, although it benefited hotels, restaurants, and sports memorabilia stores the most. Small companies, neighborhood eateries, mom-and-pop shops, and upscale eating establishments all experienced growth. With the World Cup, India's economy gained ground.Here are some strategies used by brands to capitalize on significant events: Increase business hours to satisfy those who wish to purchase before or after the event Organize competitions and giveaways, like trivia games, where victors can get gifts, deals, or complimentary merchandise. Use social media to promote user-generated content, engage customers with contests and real-time updates, and launch advertising campaigns that capitalize on the event's popularity. Encourage offers,... Visit this link for additional information: https://economictimes.indiatimes.com/industry/services/advertising/unravel-the-impact-of-major-events-on-consumer-spending/score-big-with-consumers/articleshow/106883402.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppstUsing a new digital food offer that offered a discount for buying large meal bundles during the event, a convenience store in the market sought to increase food sales over a significant weekend of broadcast sports events. Following the campaign's end, the shop sought to determine its effectiveness and which customers benefited the most from it.Introducing Mastercard Test & Learn®, a cloud-based tool that assists businesses in designing and analyzing market trends to identify the incremental impact of their initiatives and decide how best to target and customize their rollout in order to optimize return on investment.
