NewsWala aaya, taaza khabre laya! Good morning!
 

MARKETS

Markets: Domestic stocks soared as inflation eased in India and the US. Nifty started strong, maintaining momentum to finish near the day's peak, gaining 232 points (+1.2%) at 19,675. Positive trends prevailed across all sectors, while IT, Realty, Oil & Gas, and Auto emerged as today's leading gainers.

BUSINESS

Siemens AG Grabs 18% of Siemens India for €2.1B!

What happened
Siemens AG is set to enhance its foothold in Siemens India by acquiring an additional 18% stake for a whopping 2.1 billion euros. The purchase, at approximately Rs 3,380 per share, will see Siemens AG's stake rise from 47.7% to nearly 66%, while Siemens Energy's share will shrink to 6 per cent. The move is part of Siemens AG's strategic plan and follows Bloomberg's revelation about Siemens Energy's consideration of divesting its Indian joint venture.

Why it matters
Siemens AG's decision holds significant implications for both companies. Siemens Energy's motive behind the divestment is to fortify its balance sheet. Siemens AG, on the other hand, is making strategic moves to solidify its position in the Indian market. The deal not only aligns with Siemens AG's pursuit of discounted acquisitions but also serves as a proactive step to navigate the financial landscape.

• The move is geared towards streamlining operations and acquiring a controlling stake in the demerged energy business. 

• The negotiation also coincides with Siemens Energy's discussions with the German government and banks, aiming for a substantial 15 billion euros in guarantees for crucial industrial projects.

In a humorous twist, Siemens AG sweetens the deal by allowing Siemens Energy to use its 5% stake as collateral. 

Zoom out
Siemens AG's bold acquisition not only signals confidence in the Indian market but also positions the company strategically. The demerger plans and financial negotiations with the German government showcase a multi-faceted approach to securing Siemens Energy's future.

Also, the purchase price reflects a 15% discount from the 5-trading-days volume-weighted average price before the day of signing. Siemens will provide no new guarantees to Siemens Energy.

BIG MONEY MOVES

Bajaj Finance faces RBI heat

The Reserve Bank of India has ordered Bajaj Finance to immediately halt loan disbursals through its “eCOM" and “Insta EMI Card" products, citing non-adherence to digital lending guidelines. The directive under section 45L(1)(b) of the RBI Act results from issues such as the non-issuance of Key Fact Statements. The restriction will be lifted upon rectifying deficiencies to RBI's satisfaction.

Golden surge drives India's trade dynamics

India's trade deficit hit a new peak in October, soaring to $31.46 billion, fueled by a 95% surge in gold imports, reaching $7.2 billion. The spike is attributed to the shift in the festival calendar, with Diwali moving from October 2022 to November this year. Despite challenges like high global interest rates, October saw a 6.2% rise in exports to $33.57 billion, sparking optimism for India's export growth.

BUSINESS

Employment rate takes a jump

What happened

India's unemployment rate has nosedived to a historic low, unveiling a profound structural transformation in the country's labour market, as highlighted in the latest report by SBI Research on Tuesday.The report underlines the government's role in this transformation, citing initiatives like the Prime Minister's Mudra Yojana (PMMY) and post-pandemic schemes such as PM-SVANidhi, which target the grassroots, contributing to the formalization of credit for family enterprises.

Why it matters
Earnings in all categories are up, aided by government support for essential needs.

• The Periodic Labour Force Survey (PLFS) indicates a significant decrease in the unemployment rate, dropping from 6.1% in FY18 to 3.2% in 2023.

• This shift is credited to a rise in self-employment (from 13.6% to 18.3%) and increased higher educational attainment.

The event advocates for a fresh perspective on unemployment, urging an understanding of the evolving dynamics, including the growing influence of gig economy jobs and technological advancements.

Zoom out
The metamorphosis in India's labour market is evident, fueled by entrepreneurial zeal and increased educational levels. The alluring record-low unemployment rates signify not just a statistical triumph but a call for tailored policies.
But, Despite an overall decrease, the unemployment rate is most pronounced among individuals holding secondary and higher educational qualifications. This suggests a demand for jobs with higher value addition to accommodate the educated youth in India.

Indian job seekers right now are like:

BIG PICTURE

⬇️ UK prices soar downward

UK inflation dropped to a two-year low, with consumer prices rising 4.6% YoY in October, down from 6.7% in September, the sharpest decline since 1992. This surpasses expectations, prompting relief for consumers and allowing PM Sunak to claim victory on his pledge to halve inflation in 2023. Core inflation slowed to 5.7%, and services inflation weakened. The pound dipped by 0.2% to $1.2469.

Microsoft introduces inaugural custom AI chip and cloud CPU

Microsoft unveiled two groundbreaking chips at its Ignite conference in Seattle. The Maia 100 AI chip, poised as a competitor to Nvidia's AI graphics processing units, and the Cobalt 100 Arm chip, is designed for general computing tasks challenging Intel processors. These innovations signal Microsoft's stride into AI computing, with applications ranging from Bing's chatbot to GitHub Copilot and OpenAI's GPT-3.5-Turbo.

BUSINESS

Mining Ministry Sparks Innovation Wave

What happened
In a move to fuel innovation in the mining, mineral processing, metallurgy, and recycling sectors, the Mines Ministry has announced plans to welcome proposals from startups, micro, small, and medium enterprises (MSMEs), as well as individual innovators. This initiative aims to breathe new life into research endeavours within these crucial industries.

Selected startups and MSMEs will not only receive financial backing but will also benefit from mentorship, incubation support, and technical advisory assistance throughout the entire project development phase. 

Why it matters
This initiative is a game-changer for startups and MSMEs in the mining-related domains. By inviting proposals for up to two years, directly tied to the mineral sector's applied and sustainable aspects, the Mines Ministry is paving the way for substantial funding opportunities. The strategic intent is clear - to empower these entities to progress to a stage where they can attract investments or secure loans from commercial banks and financial institutions.

The funding mechanism serves as a crucial bridge, connecting the developmental phase to the commercialization of innovative technologies, products, and services. This hassle-free approach is poised to invigorate the sector, injecting vitality into areas crucial for the nation's economic growth.

Zoom out
With the Mines Ministry taking proactive steps to support startups and MSMEs, the future of innovation in mining, mineral processing, metallurgy, and recycling looks promising. 

• The government is actively promoting a culture of research and innovation. 

• It has introduced guidelines called 'S&T-PRISM' to boost research and innovation in startups and MSMEs across the mining, mineral processing, metallurgy, and recycling sectors.

As the mining frontier unfolds, innovation takes the lead—a promising future awaits.

MIRCH MASALA

• 🥑 Revitalize After Diwali: 7 detox delights

• 🏏 2 new rules added for cricket world cup semis

• 😥 Babar Azam resigns as Pakistan skipper

• 📚️ Dive into the brain-bending realm of the 7 toughest degrees worldwide

• 🔓️ Unlock maximum returns with these 10 tips for SIP mutual funds