Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Markets ended nearly 0.5% lower after a mixed session; Nifty faced resistance at 24,800. Realty and pharma gained, while metal, IT, and energy fell. Broader indices advanced over 0.5%.

TOP STORIES

India-UK Business Ties Heat Up

What happened?

India and the UK are dancing to a business beat, grooving to hopes of a free trade agreement (FTA). HSBC reported a 36% rise in UK-bound Indian business client referrals in the first nine months of 2024 compared to the previous year. Payments from Indian clients to the UK surged by a whopping 121%, while payments flowing back rose by 32%. 

• Trade between the two nations totalled $53 billion in the 12 months ending June, with £16.6 billion of UK exports heading to India. 

Despite 14 rounds of FTA talks and delays since 2022, both countries continue to show strong intent to finalise the deal.

Why it matters

An India-UK FTA could be the big fat wedding that businesses have been waiting for. For the UK, easing hefty tariffs (like India’s 150% duty on Scotch whisky—ouch!) could unlock new trade flows. Meanwhile, Indian companies love Britain’s talent pool and its post-Brexit promise of being a gateway to Europe—because who wouldn’t want to enter a party through the backdoor? On the flip side, Britain is hustling to diversify trade as US tariff spats loom large.

Final words

While negotiations are far from over , businesses on both sides are ramping up preparations. UK Prime Minister Keir Starmer’s growth ambitions could align well with Indian companies expanding overseas. 

However, competition for India’s investment remains fierce, with other global markets also vying for attention. Whether or not the trade pact materialises soon, one thing is clear: India and the UK are playing a long game, betting on each other for economic growth. 

PAISON KA KHEL

India installs 73 lakh smart meters, but some states still in the dark

As of November 2024, India has installed 73 lakh smart prepaid meters across the country, according to government data. The goal? A total of 25 crore meters by March 2025 under the ₹3.3 lakh crore Revamped Distribution Sector Scheme.

While some states are ahead—Assam has installed nearly 23 lakh meters—others, like Tamil Nadu, Tripura, and Rajasthan, have yet to install any. Even places like Uttarakhand have installed just 7 meters out of the 15.87 lakh sanctioned.

LIC has ₹881 crore in unclaimed funds

LIC is sitting on a hefty ₹880.93 crore of unclaimed maturity amounts for FY24—up from ₹815.04 crore last year. Turns out, 3.72 lakh policyholders ghosted their own money. The insurer isn’t taking this lightly—it’s running ads, sending reminder letters, SMSes, and emails, almost like your persistent friend reminding you to repay that ₹500. 

TOP STORIES

IIHL nears the finish line on Reliance Capital takeover

What happened?

IndusInd International Holdings Limited ( IIHL ) is racing to complete its ₹9,861-crore acquisition of Reliance Capital (RCap) by January 2025. After months of manoeuvring regulatory hurdles, IIHL Chairman Ashok Hinduja confirmed that all required approvals, including the Department for Promotion of Industry and Internal Trade (DPIIT), are in the bag.

With ₹2,750 crore already parked with the Committee of Creditors (CoC) and another ₹3,000 crore raised in debt, IIHL is all set to wrap up formalities, including delisting RCap's shares, over the next few weeks.

Why it matters

The acquisition isn’t just about a massive transaction; it’s a revival story. Reliance Capital, once a financial titan under the Anil Ambani Group, had been overshadowed by governance woes and defaults. Now, IIHL is giving it a new lease of life. The deal includes ₹4,300 crore earmarked for disbursement upon RCap’s delisting, a rebranding exercise under the IndusInd banner, and plans to keep RCap’s well-performing management intact. For context, RCap’s current leadership has turned profits for 3-4 years, despite the odds.

Adding more intrigue is IIHL’s ambitious target of hitting a $50 billion valuation by 2030, building on its current $15 billion worth (as of September 2024). The acquisition is seen as a cornerstone for IIHL’s growth in the financial sector, signalling optimism in an industry that values stability and innovation.

Conclusion

With all the pieces of the puzzle coming together, IIHL is gearing up for a transformational journey. The delisting process, trust creation, and rebranding are expected to solidify its position as a financial powerhouse. Meanwhile, Reliance Capital’s brand name, usable for three more years, adds a nostalgic touch before it gets a new identity. 

GLOBAL NAZARA

India to supply LNG to Sri Lanka’s power plants

India is all set to send liquefied natural gas (LNG) to Sri Lanka’s power plants , announced Prime Minister Narendra Modi after a chat with Sri Lankan President Anura Kumara Dissanayake. This is the first foreign trip for Dissanayake since taking office. The two countries will not just fuel up power plants but also link their power grids and lay a petroleum pipeline. 

Tariffs threaten to derail US factory recovery in December

US manufacturing took a nosedive in December, with output dropping to the lowest level since May 2020. The flash manufacturing PMI slid to 48.3 from 49.7, a clear sign that factories are feeling the chill. The real kicker is the worry about tariffs hiking up raw material costs. 

Meanwhile, the services sector threw a post-election party, soaring to a 38-month high. Manufacturers, however, are left nervously eyeing the future, wondering if they'll be hit with even higher costs in the coming months.

TOP STORIES

ITC eyes a bigger bite of India’s food market

What happened

ITC Ltd , the company famous for Aashirvaad atta and Bingo chips, is cooking up big plans to expand its food business. With ₹20,967 crore in FMCG revenue in FY24—a 9.6% jump from last year—ITC is sharpening its focus on northern and western India. Why? People in states like Rajasthan and Uttar Pradesh are ditching loose staples and picking up branded ones.

New products, like Aashirvaad soya chunks and Yippee Korean noodles, are already making waves. And ITC isn't just stopping at noodles and atta—it’s hunting for acquisitions to spice up its portfolio, just like it did with Sunrise Foods and Yoga Bar earlier.

Why it matters

India’s branded food market is still just a tiny 18% of the total food sector. ITC knows this, which is why it’s diving headfirst into regions where the shift to branded products is just starting. The stakes are high—the packaged goods market is expected to grow from $167 billion in 2023 to $220 billion by 2025. 

ITC is also eyeing premium products that already contribute 22% to its ₹17,000 crore food business. With a ₹5,00,000 crore addressable market by 2030, there’s no better time to grab a bigger slice of the pie.

Conclusion

ITC is on a roll—expanding into new markets , launching funky products, and eyeing premium goodies. Think of them as the foodie on a shopping spree, picking up everything from noodles to gourmet snacks. But the competition is stiff, with Hindustan Unilever and Nestlé also in the game. Will ITC’s smart strategies and catchy innovations be enough to win the food fight? Only time will tell, but one thing’s clear—they’re hungry for more. 

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