Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Domestic equity benchmarks posted their largest weekly increase of 2024, climbing 3.25% on positive sentiment regarding the current government's achievements. Nifty advanced by 3.4%, while Sensex increased by 3.7%, recovering all losses incurred on Tuesday.

BUSINESS

Long-Range EVs Beat Average New Car Prices in the US Market

What Happened?

The US automotive industry is witnessing a remarkable shift: electric vehicles (EVs) with over 300 miles of range are now more affordable than the average gas-powered car. Companies like Tesla, Hyundai-Kia, and General Motors are leading this charge, offering long-range EVs at competitive prices. Hyundai's 2024 Ioniq 6, for instance, boasts a range of 361 miles and is priced 25% below the national average of about $47,000.

Over the past six months, intense competition among US automakers has driven prices down, making EVs more attractive to a broader range of consumers.

Why it matters

This affordability shift is crucial for several reasons. First, it signifies that EVs are no longer just for the wealthy. Previously, affordable EVs suffered from limited range and slow charging, but advancements in battery technology have changed that. Now, models like the Chevy Equinox, with a range of 319 miles and a price of around $42,000 (before a $7,500 federal tax credit), are accessible to middle-class buyers.

According to Cox Automotive, the EV premium is shrinking, a positive trend as price continues to be a major barrier to adoption. Moreover, companies like Stellantis are gearing up to launch even more affordable models, such as a $25,000 electric Jeep, to meet this growing demand.

Zoom out

Federal incentives and competitive leasing options are further reducing costs, making EVs an increasingly viable option for American consumers. With the International Energy Agency predicting price parity between EVs and gas-powered cars by 2030, the future of affordable, long-range electric transportation looks promising. So, buckle up – the road ahead for EVs is looking smoother and more economical than ever!

BIG MONEY MOVES

Top firms see big gains in market capitalisation

Eight of India's top ten companies saw a collective increase of ₹3.28 lakh crore in market valuation last week. TCS, HUL, and RIL led the gains, with RIL retaining its top position in market value. TCS gained ₹80,828.08 crore, HUL added ₹58,258.11 crore, and RIL saw an increase of ₹54,024.35 crore. Other gainers included Infosys, HDFC Bank, Bharti Airtel, ICICI Bank, and ITC.

SBI and LIC were the only companies to see a decline in market valuation among the top ten. 

KEC International nets ₹1,061 crore in new orders

Infrastructure firm KEC International Ltd announced new orders worth ₹1,061 crore across different sectors. The company received orders for transmission lines and substations in India and Malaysia and will supply towers in the Americas. In railways, it secured a composite gauge conversion order and a project for Bengaluru Metro's power supply . Despite market fluctuations, KEC International remains active in expanding its portfolio across various domains.

BUSINESS

ONGC Seeks Global Oil Giants for Mumbai High Field Revival

What happened

India’s Oil and Natural Gas Corporation (ONGC) is on the hunt for a global partner to help its Mumbai High field, a major offshore oil field that's been in decline. Since starting operations in 1976, this field has been a significant contributor to India’s oil production, but its output has dwindled over the years.

To tackle this, ONGC has issued an international tender seeking a technical service provider with annual revenues exceeding $75 billion . The chosen company will receive a ten-year contract, with a possible five-year extension.

Why it matters

This move is crucial because Mumbai High's production has dropped significantly from its peak of over 400,000 barrels per day in 1989 to just 134,000 barrels per day currently. With an estimated 80 million metric tonnes of oil and 40 billion cubic meters of gas still in reserve, revitalising this field is essential for India's energy security. 

ONGC's decision to partner with a global oil major is a bold and somewhat unusual step, given that these companies usually prefer ownership stakes over service contracts. The requirement for bidders to demonstrate extensive operational experience and substantial proven reserves means that only the industry’s giants like BP or Total could qualify, excluding top service providers like Halliburton and Schlumberger, which typically do not meet the revenue threshold.

Zoom out

The selected service provider will not only get fixed fees for deploying their technical support but also share in the incremental revenue generated from increased production. This partnership could set a precedent in the industry, showcasing how collaboration between state-run entities and global majors can potentially lead to substantial gains in oil production efficiency and output.

BIG PICTURE

Volvo shifts EV production to Belgium amid China tariff concerns

Volvo Cars is moving production of electric vehicles to Belgium to avoid possible EU tariffs on subsidised imports from Beijing. This move includes shifting production of EX30 and EX90 models from China to Belgium, ensuring uninterrupted sales.

The decision aligns with Volvo's strategy to manufacture cars where they are sold, with the EX30 slated for production in Ghent from 2025. Amid strained EU-China relations, Volvo's move highlights the impact of geopolitical factors on global manufacturing strategies.

UPI downtimes blamed on banks' technology weaknesses

Downtime in the UPI payment system is largely due to weak technology at banks, not issues from the National Payments Corporation of India (NPCI), according to RBI Governor Shaktikanta Das. With over  450 million daily UPI transactions, several downtimes were reported in May 2024, totalling over 47 hours.

These disruptions often result in transaction failures, impacting customers financially. RBI Deputy Governor T Rabi Sankar noted that the UPI Lite wallet may ease the burden on banks, helping to minimise future downtimes.

BUSINESS

NTPC's Ambitious $50 Billion Move to Become an Energy Giant

What happened

State-run NTPC Ltd is embarking on an ambitious transformation plan with a $50 billion capital expenditure over the next decade. This move aims to reshape the company from being merely a power generator to becoming a complete energy company. 

NTPC will spend $5 billion annually to expand into various clean fuel production capacities, including methanol, ethanol, green hydrogen, and sustainable aviation fuel (SAF), while also boosting its power generation capabilities. These efforts will be self-executed, with no plans for new subsidiaries, although green hydrogen production will be managed by its existing subsidiary, NTPC Green Energy Ltd.

Why it matters

This massive investment signals NTPC’s commitment to diversifying its energy portfolio and aligning with global sustainability goals. By venturing into the production of green fuels and increasing renewable energy capacity, NTPC is positioning itself to be a key player in India's energy transition.

The emphasis on sustainable aviation fuel and methanol, particularly, shows a proactive approach to reducing carbon emissions in the aviation and shipping industries. Furthermore, the planned increase in both renewable and fossil-based power generation will help meet India’s growing power demand while balancing the nation's ambitious target of achieving net-zero carbon emissions by 2070.

Zoom out

The NTPC Group, encompassing its joint ventures and subsidiaries, currently boasts a total power-generating capacity of 76.04 GW. This includes 62.19 GW from coal, 6.5 GW from gas or diesel, and 7.34 GW from renewable sources, such as hydroelectric projects.

As the company gears up to install an additional 60 GW of renewable energy capacity and explore nuclear power generation, it stands at the forefront of India's energy sector. 

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