Newswala aaya, taaza khabre laya! Good morning!
 

MARKETS

Markets: The Indian market is back in the green arena after some volatile sessions. Asian markets also showed gains, and US stocks surged due to robust quarterly earnings and lower Treasury yields.

BUSINESS

Reliance Industries Crosses ₹20 Lakh Crore Market Cap!

What happened

Reliance Industries (RIL) has just become the rockstar of the Indian stock market by soaring past the ₹20 lakh crore market cap milestone. The Mukesh Ambani-led conglomerate danced its way to the top, with its shares hitting a fresh 52-week high of ₹2957 on the BSE, marking a 1.89% rally.

In the last fortnight alone, RIL's market value sprinted up by ₹1 lakh crore, making investors do a happy jig. This surge comes on the heels of the stock brushing the ₹19 lakh crore level just on January 29. In 2024 so far, RIL's shares have busted a move, grooving up by a cool 14%.

Why it matters

Reliance Industries is now the unrivalled heavyweight champion of the Indian stock market. To put it in perspective, that's way ahead of TCS (₹15 lakh crore), HDFC Bank (₹10.5 lakh crore), ICICI Bank (₹7 lakh crore), and Infosys (₹7 lakh crore). RIL has not just broken records; it's practically rewriting the market cap dictionary.

• The numbers don't lie – RIL's profit after tax for Q3FY24 stood tall at ₹19,641 crore, slightly down by 1.2% QoQ but with a robust 10.3% YoY growth. 
  
  

• The profit margin, a stylish 8.7%, outshone the 8.6% from the previous quarter, showing Reliance Industries' knack for improving its earnings performance.

Reliance Industries is like that overachiever in school who always tops the class. Now, in 2024, it's the first Indian stock to join the elusive ₹20 lakh crore club.

Zoom out

While Citi might be playing it cool and downgrading RIL to neutral, the majority are dancing to the Reliance rhythm. Analysts foresee 2024 as the year of RIL's grand performance, with a potential chemical cycle turn, a golden age for refining, 5G subscribers jumping on the bandwagon, and retail investments taking a breather. As the curtain rises on this financial spectacle, RIL has set the stage on fire, leaving investors eager for the game.

BIG MONEY MOVES

Indian steel thrives after ₹12.9 billion investment under PLI

The Indian government has announced that ₹12,900 crores have been invested in the domestic steel sector under the PLI scheme for speciality steel. In March 2023, 57 MoUs were signed for a total investment of  ₹29,500 crore by FY28. The scheme aims to add 25 MT capacity and create 17,000 jobs, and as of December 2023, selected companies have invested ₹2,900 crore. Another ₹3,000 crore is expected in FY24, with 5 units already in production and 9 more expected this quarter. 

Endiya Partners gears up for Fund III with over $100 million corpus

Endiya Partners, an Indian venture capital firm based in Telangana, is preparing to launch its third fund, targeting a corpus between $100 million and $125 million. The focus remains on digital industry startups, including deep tech, health, SaaS, and AI. The firm's unique approach, steering clear of D2C and e-commerce, has yielded success, boasting a 75% funding success rate for portfolio companies. 

BUSINESS

Coca-Cola Boosts Capacity in India After Stellar 2023 Growth

What happened

Coca-Cola has announced plans to channel a hefty chunk of its capital investment into expanding its capacity in India. The company is all set to uncork new opportunities in India and also pour resources into Fairlife, an American dairy drinks brand.

The decision comes from the company's robust performance in 2023, where developing and emerging markets, including the duo of India and Brazil, experienced a 2% growth. Interestingly, this surge partially offset the hiccup caused by the suspension of Coca-Cola's business in Russia in 2022.

Why it matters

Coca-Cola's strategic move holds significance as it mirrors the company's agility to adapt and capitalize on emerging market trends.
 

• The 2% growth in developing and emerging markets, propelled by India and Brazil, stands out amidst the challenges faced elsewhere.
   

• The company's net revenues bubbled up by 6% to reach $45.8 billion. Organic revenues fizzed even more, growing by a sparkling 12%, driven by a 10% surge in price.

Coca-Cola's quenching success story is further amplified by its gain in value share in total non-aerated, ready-to-drink beverages in 2023. The company dominated markets like India, the Philippines, South Korea, and Japan. The Indian market, in particular, witnessed a surge, with Hindustan Coca-Cola Beverages Pvt. Ltd, a bottling subsidiary, announced plans to invest a whopping ₹3,000 crores to set up a juice and aerated drinks facility in Gujarat.

Zoom out

The strategic allocation of capital reflects Coca-Cola's commitment to seizing opportunities in regions like India, where it has been bubbling up success. In the coming year, Coca-Cola projects generating a refreshing $9.2 billion in free cash flow with around $11.4 billion flowing in from operations, and capital expenditure of about $2.2 billion.

BIG PICTURE

🚗 Tata Motors slashes electric vehicle prices

Tata Motors recently slashed electric vehicle prices by up to ₹1.2 lakh, anticipating further drops in battery costs. Vivek Srivatsa, Tata's chief commercial officer, attributes this move to falling battery prices and aims to pass on benefits to customers. The price of Nexon EV will drop by up to ₹1.2 lakh, and Tiago EV will see a reduction of up to ₹70,000.

🚘️ Uber boosts investor confidence with $7 billion share buyback program

Uber has initiated a $7 billion share buyback program, following its first full year of operating profit. This move echoes recent trends in Silicon Valley, with Meta announcing its debut dividend and Airbnb expanding its buyback program. Uber's investor update unveiled the buyback plan, contributing to a 10% surge in its shares, reaching an intraday high above $76.

BUSINESS

Sterlite Power Energizes Beawar Project with ₹2,400 Crore Funding 

What happened

Sterlite Power, the energy transmission juggernaut, has successfully charged up its Beawar Transmission Limited (BTL) project with a whopping ₹2,400 crore funding from REC Power Development and Consultancy Ltd (RECPDCL), a state-owned entity. This financial zap comes merely four months after Sterlite Power took the reins of the project.

Managing Director Pratik Agarwal expressed enthusiasm, noting that this swift financial closure would accelerate the delivery of the critical project, an integral component of the expansive Green Energy Corridor designed to facilitate the production of approximately 20 GW of renewable energy.

Why it matters

The Beawar project is no small feat, involving the construction of a 350 km, 765kV transmission corridor connecting the renewable energy hub at Fatehgarh III to a proposed substation at Beawar. The project blueprint also includes the establishment of a substantial 3000 MVA 765/400 kV substation at Beawar, adding more volts to the venture.

This move aligns with Sterlite Power's broader portfolio, boasting 33 transmission projects (completed, sold, and under construction) covering a staggering 15,350 circuit km of transmission lines across both India and Brazil.

Zoom out

Sterlite Power's successful Beawar project is more than just a financial feat; it's a strategic power play in the dynamic landscape of energy transmission. As the company adds another high-voltage venture to its extensive portfolio, the project becomes a pulsating node in India's journey towards a greener, more robust energy grid.

MIRCH MASALA

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