Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On April 9, Indian benchmark indices saw marginal losses after reaching record levels earlier in the day, amid a volatile trading session. Profit booking set in as investors awaited key US inflation data scheduled for the following day, contributing to the market's retreat from its fresh intraday peak.

BUSINESS

Ola Cabs to Withdraw from Overseas Markets, Prioritizing Electric Fleet

What happened

Ola Cabs, a major player in the global ride-hailing industry, has made a significant announcement regarding its international operations . The company has revealed its plans to exit several key international markets, including the United Kingdom, Australia, and New Zealand.

This decision marks a notable strategic shift for Ola as it reevaluates its global footprint and focuses on optimizing its operations. The process of Ola's exit from these international markets has already begun, with the company initiating notifications to both users and drivers about the impending closure of its services in these regions. 

Why it matters

Ola's decision to exit international markets carries significant implications for the company's future trajectory and the broader ride-hailing industry . By consolidating its operations and resources, Ola aims to streamline its focus and leverage its strengths more effectively, particularly within its core market in India.

Ola's strategic vision for the future of mobility includes a strong focus on electric vehicles (EVs), highlighting their importance in the company's growth strategy. As part of this vision, Ola Electric, a spin-off from Ola, is preparing for its initial public offering (IPO) in India.

The company aims to raise $662 million , according to filings from late last year. However, recent valuation adjustments by US asset manager Vanguard have marked down Ola's value by 30%, placing it below the $2 billion mark.

Zoom out

Ola's decision to exit international markets aligns with its strategic vision, emphasizing operational efficiency and capitalizing on emerging market trends. This development might be instrumental in earning profits for the company, as the car giant has yet to report any profits.

BIG MONEY MOVES

Shyam Metalics ventures big in stainless steel with ₹700 crore investment

Shyam Metalics and Energy Ltd has unveiled plans to invest between ₹650-750 crore in its stainless steel business in the coming years. This investment will be directed towards setting up a cutting-edge stainless steel hot rolled coils (HRC) facility at its existing plant in Sambalpur, Odisha.

The new facility, designed to produce high-quality 200 and 400-series stainless steel hot rolled coils, will have a capacity of 0.3 million tonnes per year. Emphasizing its commitment to using captive raw materials like direct-reduced iron (DRI), power, and ferroalloys for the project, Shyam Metalics aims to ensure efficient production processes.

HDFC Credila raises $100 million via ECB for education finance

HDFC Credila, a leading education loan provider, has successfully secured $100 million through external commercial borrowing (ECB), enhancing its funding capabilities and reinforcing its position in the education finance sector. The borrowing, facilitated by DBS Bank's IFSC banking unit in the GIFT City , reflects the strong partnership between HDFC Credila and DBS Bank.

This development comes after HDFC Bank divested its stake in HDFC Credila to private equity firms earlier this year, aligning with regulatory requirements preceding HDFC's merger with HDFC Bank. 

BUSINESS

IndusInd and Invesco Enter into a JV Focused on the Mutual Fund Industry

What happened

IndusInd International Holdings Ltd. (IIHL), led by the Hinduja brothers, has made a strategic move in the financial service sector by forging a joint venture (JV) with Atlanta-based fund management group Invesco Ltd. This venture involves IIHL acquiring a significant 60% stake in Invesco Asset Management India Ltd, with Invesco retaining a 40% stake.

The deal is subject to regulatory approval from the Securities and Exchange Board of India (SEBI), highlighting the careful consideration and adherence to regulatory standards in the financial sector.

Why it matters

This joint venture marks a pivotal moment in India's mutual fund industry, amplifying IIHL's presence and influence in the country's financial sector. 

• With the total assets under management (AUM) of the industry standing at a staggering ₹54 trillion, the JV's impact is poised to be substantial.
  
  

• Invesco Mutual Fund, with an AUM of ₹85,393 crore , brings considerable expertise and resources to the partnership, further solidifying its position as a key player in the Indian financial market.
  
  

• The timing of this venture is noteworthy, given the current investment climate in India. Domestic mutual funds have recently injected a record ₹45,120 crore into domestic shares, indicating a robust appetite for equity investments among investors. 
  
  

• This trend is expected to persist, with the Indian mutual fund industry's assets projected to double to ₹100 trillion by 2030, as forecasted by Axis Capital. 

The JV between IIHL and Invesco is well-positioned to capitalize on this growth trajectory and offer innovative investment solutions to a burgeoning investor base.

Zoom out

As India's mutual fund industry continues to evolve and expand, collaborations like the one between IIHL and Invesco exemplify the dynamic nature of the financial service sector. The strategic partnership reflects the confidence of global players in India's economic potential .

With a focus on transparency, investor education, and market innovation, this JV is poised to contribute significantly to the ongoing transformation of India's investment space.

BIG PICTURE

🪙  Gold hits record high of ₹71,000 per 10 grams, investors await market dip

Gold prices have surged to unprecedented levels, with spot gold reaching $2,343.89 per ounce globally and US gold futures climbing to $2,361.09. In India, gold prices soared to a historic high of ₹71,000 per 10 grams on the multi-commodity exchange (MCX), reflecting a significant jump of ₹440 or 0.62%.

Several factors have fueled this surge, including a weakening dollar index, which has hovered around 104.25. Additionally, speculative buying and ongoing tensions in the Middle East have contributed to the bullish gold price trend.

🚘️  Qualcomm and MediaTek step into the Indian automotive sector

Chipset giants Qualcomm and MediaTek are expanding their competition beyond the smartphone realm into India's automotive sector. With the automotive industry embracing the electric vehicle (EV) revolution, both companies are strategically ramping up their investments to capture a larger market share.

Qualcomm, headquartered in San Diego, California, has been collaborating with Indian automotive companies for some time. The company recently unveiled partnerships with major players like Tata Motors, Mahindra & Mahindra, and TVS to accelerate the digital transformation of the auto sector.

BUSINESS

TSMC Receives $6.6 Billion Subsidy for US Semiconductor Production

What happened

The US Commerce Department has inked a significant deal with Taiwan Semiconductor Manufacturing Company (TSMC) to establish cutting-edge semiconductor production in Arizona's Phoenix area by the close of 2030.

This agreement includes a substantial $6.6 billion subsidy and $5 billion in low-cost government loans granted to TSMC for its advanced production facility.
The aim is to bolster the semiconductor supply chain within the US, addressing critical technological needs.

Why it matters

This partnership holds immense strategic importance as TSMC, the world's largest contract chipmaker, plans to ramp up its initial investment by $25 billion, totalling $65 billion , and intends to construct a third fabrication facility in Arizona by 2030.

The expansion focuses on producing 2-nanometer technology, crucial for artificial intelligence and various advanced technologies pivotal to economic growth and national security, as highlighted by Commerce Secretary Gina Raimondo.

TSMC's commitment to supporting US tech companies, including major players like Apple and Nvidia, significantly boosts America's technological capabilities. The advanced semiconductor units in Arizona are poised to cater to the soaring demand for cutting-edge chips in smartphones, autonomous vehicles, AI data centres, and more, contributing significantly to the ongoing digital transformation.

Zoom out

The collaboration between TSMC and the US Commerce Department represents a landmark investment in semiconductor manufacturing, enhancing domestic production capabilities and reducing reliance on foreign sources. The substantial investment by TSMC underscores the critical role of advanced chip technology in driving economic growth and technological advancements in the 21st century.

MIRCH MASALA

🦛 Texas Zoo scientists observe peculiar animal behaviour during solar eclipse

🏏 Virat Kohli's playful antics go viral before MI vs RCB IPL 2024 match

👀  Watch : Man transforms carrot into a functional musical instrument

🎂 Salman Khan's performance with B Praak steals the show at Anant Ambani's birthday bash

👽️ US residents spot strange flying object during total solar eclipse