To foster entrepreneurship and promote startup growth in the state, Rajasthan's Chief Minister Ashok Gehlot approved a proposal for an iStart Innovation School Hub in Bikaner at a cost of INR 52.26Cr. This hub will provide a conducive environment for startups, students and local youth, while creating employment opportunities.
Open FlipHaving a stock-heavy portfolio can be risky, and adding bonds to it is a great way to diversify your asset allocation. Bonds are less volatile than stocks, providing stability and mitigating the risks associated with depending on stocks alone. By investing in both stocks and bonds, you can take advantage of potential growth of stocks while also enjoying stability and lower risk that bonds provide.
Open FlipMeitY is proposing changes to the IT hardware import regime by tying it to a company's export & domestic production value. They are also setting quotas for imports and have invited applications from 38 companies for a PLI scheme. Concerns were raised over the Oct 31 deadline for implementation.
Open FlipReliance Industries Limited (RIL) has donated Rs 25 crore to Uttarakhand's Chief Minister's Relief Fund to help with flood relief efforts. Family member Anant Ambani thanked the state for their partnership of over 10 years through education and social development initiatives. In 2020 and 2021, RIL also provided Covid-19 support.
Open FlipIndian startups raised $257 Mn across 18 deals this week, with Ather Energy's $108 Mn mega round being the largest. Overall, there was a significant increase of 394% compared to $52 Mn raised by Indian startups in the previous week. Ecommerce was the most funded sector, and Elevation and Matrix Partners emerged as the busiest investors.
Open FlipThis week ending September 8 saw a somewhat unexpected surge in the US yields despite a softer than expected US non-farm payroll report. This was mainly due to the huge quantum of corporate bond issuance lined up in September, Fedspeak, strong US economy and inflation concerns. The US Dollar Index rallied for the eighth consecutive week as the Euro-zone and UK economies struggled with stagflation.
Open FlipChina's consumer prices returned to positive territory in August, with CPI and PPI both recording modest increases. Factory-gate deflation is easing and food prices have declined due to weather-related issues. However, more policy support is needed to boost consumer demand and prevent further deflationary pressures as growth stabilizes.
Open FlipArm Holdings Plc, the chip designer, prices its US IPO at $47-51/share, and has seen six times the investor demand. Despite having 25% of ownership by SoftBank, Arm will rely on strong growth in cloud computing & automotive to justify its high valuation. China makes up 24.5% of its sales & remains a risk.
Open FlipMid-market enterprises are the backbone of the Indian economy and AIFs have emerged as a preferred source of capital for them. They offer an attractive risk-return profile, fuel economic growth, and help investors diversify and optimise portfolio returns. Mid-market enterprises in India form the backbone of the economy but there is a credit gap, with little access to debt markets.
Open FlipThe trade settlement cycle in India has evolved drastically over the years to become one of the most efficient in the world, with a proposed move towards real-time settlement. This could be revolutionary for global markets, but may require intra-day traders to adjust their trading strategies due to the need for immediate payment and delivery of securities.
Open FlipForeign and domestic investors have been increasingly betting on India's growth story, evidenced by the performance of the S&P BSE Bharat 22 index, which has more than doubled in value over 3 years. 28% rally year to date. Key stocks such as Bharat Electronics, Hindustan Aeronautics, Amara Raja Batteries, REC Ltd, ABB India, and Tata Motors are doing well.
Open FlipIndia's primary strength in global tech landscape has been its strong IT services sector. After underperforming during Q4FY23 due to numerous factors, there are signs of a possible recovery as certain key elements contribute to an overall rebound. These include a decrease in attrition rates and securing of new multi-billion dollar deals by major Indian IT firms which could bolster revenues.
Open FlipNBFCs may face an increase in borrowing costs due to tightening liquidity conditions and rising market yields. Nomura Securities expects cost of funds to increase by 30-40 bps by Dec 2023, while banks are increasing their benchmark MCLR rates and RBI is withdrawing ICRR over time. NBFCs acknowledge the pressure but cushion the impact by introducing higher floating rates.
Open FlipApple has lost ~$200B in market capitalization this week as reports have surfaced that Beijing is ordering its state employees to stop using iPhones and other foreign-branded phones. While it is speculated that this move by China is a response to the intensifying US-China competition, Apple is also facing fierce competition from Huawei's latest flagship smartphone which is selling well in China.
Open FlipEngineering giant Larsen & Toubro (L&T) achieved a milestone when its shares hit a lifetime high on Friday, valuing the company at ₹4 lakh crore in market capitalisation. They closed 2% higher after news of winning a $4-billion energy project from Saudi Aramco and reports of a 20% growth in order inflows for FY24.
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