Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: All sectoral indices ended in the red, with Nifty PSU Bank leading losses, down 1.82%. Key sectors like auto, bank, energy, and metals fell around 1% each. Broader indices also dipped, with midcap and smallcap indices dropping 0.5%. Analysts warn of further bearish sentiment, with Nifty potentially testing the 24,200 support level.

TOP STORIES

Hospitality sector celebrates the big season

What Happened?

Lemon Tree and Indian Hotels shares have been partying like there’s no check-out date, soaring over 20% in a month. The secret? A perfect storm of big, fat Indian weddings, booming domestic travel, and MICE (meetings, incentives, conferences, exhibitions—basically, corporate mingle-fests). 

Motilal Oswal reports that this quarter could be a jackpot for the hotel industry, with Average Room Rates (ARR) expected to jump 8-10% and Revenue Per Available Room (RevPAR) rising by 10-12%. 

• Plus, there are 33% more wedding muhurats this season—cue the endless baraats and buffet lines.

Why it matters

India’s travel and tourism sector is taking off, quite literally. Domestic air traffic grew 6% YoY in the first half of FY25, while inbound tourists for 2024 are set to hit one crore, up from 92 lakh in 2023. This uptick is a goldmine for hotels, with Motilal Oswal reaffirming "Buy" ratings on Indian Hotels and Lemon Tree. 

The industry is also benefitting from improved operating leverage, making profits soar with higher sales. November was particularly strong, with RevPAR jumping 15-17% YoY, riding the wave of wedding season madness and corporate events.

Final words

Indian Hotels has doubled its stock value in 2024, while Lemon Tree is up 29%, proving that weddings, wanderlust, and work trips make a powerful trio. With over 700 new hotels in Indian Hotels’ pipeline by 2030, and steady growth in ARR and occupancy rates, the long-term outlook is promising. For now, the hospitality sector is dancing to the tunes of wedding DJs and corporate jingles. 

PAISON KA KHEL

Indian banks write off ₹12.3 lakh crore loans in a decade

Over the past 10 years, Indian banks have written off loans worth ₹12.3 lakh crore—enough to fill a black hole in their ledgers. Public sector banks led the charge, accounting for ₹6.5 lakh crore in the past five years alone. Loan write-offs peaked at ₹2.4 lakh crore in FY19 but eased to ₹1.7 lakh crore in FY24, a modest 1% of total credit.

State Bank of India topped the charts, writing off ₹2 lakh crore, with Punjab National Bank at ₹94,702 crore. Yet, public sector banks laughed all the way to record profits of ₹1.41 lakh crore in FY24. 

Aye Finance’s IPO big lending dreams, $171 million at a time

Aye Finance, a lender targeting India’s small businesses, is gearing up for a $171 million IPO. The deal includes $104 million in fresh shares and $67 million from existing investors. Backed by Alphabet’s CapitalG, the lender boasts a $400 million valuation, 499 branches across 22 states, and $588 million in assets under management as of September.

Known for offering loans averaging $1,800 to unorganized-sector businesses, Aye Finance uses its tech smarts to gauge creditworthiness. Despite its revenue hitting $122.5 million in FY24, non-performing assets rose to 3.29%. Will this IPO spark a credit revolution or just another chapter in India's lending saga?

TOP STORIES

Services exports outshine goods in 2024

What happened?

For the first time in 2024, India’s services exports outshone goods exports in November, with IT and shipping saving the day. While services clocked $35.67 billion, goods exports fell 4.8% year-on-year to $32.11 billion. The star performers in exports? Electronic goods, surged 54.7% to $3.4 billion, and engineering goods at $8.89 billion.

Meanwhile, gold imports tripled to a dazzling $14.8 billion thanks to wedding season and reduced import duties. The result? A record goods trade deficit of $37.8 billion, enough to make any economist sweat.

Why it matters

The rising tide of services exports, growing at a compound annual growth rate (CAGR) of 10.5% since FY19, highlights India’s shift towards a tech-driven export strategy. If this pace continues, services could overtake merchandise exports by FY30, reaching a projected $618 billion.

However, the record goods trade deficit and high gold imports are weighing heavily on India’s current account deficit, which could widen further. Geopolitical tensions, shipping disruptions, and volatile prices of crude and metals are throwing extra curveballs at exporters, especially MSMEs struggling with trade finance issues.

Conclusion

While India’s services sector is on a winning streak, driven by IT and engineering, the goods side of the equation faces challenges akin to dodging potholes on a monsoon drive. If gold imports settle and geopolitical tensions ease, trade deficits might find a smoother path ahead. For now, India’s services exports are shining like a tech-savvy superhero, balancing the scales and proving that it’s not all about gold and oil—it’s also about code and innovation.

GLOBAL NAZARA

Tata Motors shifts into high gear with 1,297-bus order

Tata Motors just bagged its third win of the year with an order for 1,297 bus chassis from UPSRTC, bringing their total orders from the corporation to a whopping 3,500+ units in 2024. The buses, designed for intercity and long-distance travel, will be delivered in phases. Securing the deal through a competitive bidding process, Tata Motors once again proved it’s the MVP of public transport.

BN Group Sets Sails for Africa with a billion-dollar investment 

BN Group is all set to fry bigger fish in Africa! The company is investing a hefty $1 billion (around ₹8,000 crore) over the next five years to expand its edible oil business. The plan includes building three manufacturing plants with a combined capacity of 2,000 tonnes and acquiring palm plantations. 

Targeting a 20-25% EBITDA margin, BN Group aims to start operations by FY26-27. Initially using a direct-to-store model, the company plans to build strong ties with local retailers before moving to distributors.  

TOP STORIES

Indian Oil's ₹15,000 Crore Debt Dive

What happened

Indian Oil Corporation (IOC) has set an ambitious goal of raising ₹15,000 crore in long-term debt by March 2025. About 30% of this will come from foreign currency loans and bonds, with IOC looking to raise up to $500 million (₹4,150 crore) in international borrowings. 

Why now? Well, the U.S. Federal Reserve might just give them a present in the form of a rate cut, making those foreign loans a bit sweeter. With interest rates potentially falling, IOC’s eyes are on the prize – a balanced mix of long-term borrowings with a tenure of 3 to 5 years.

What’s cooking 

While this is a jump from the previous fiscal year, it's part of IOC’s strategy to fund a capital expenditure of ₹35,000 crore. However, the timing coincides with financial strain, with IOC reporting a staggering 99% drop in profits during the July-September quarter due to inventory losses. 

These losses are partly due to falling global prices and the high cost of maintaining large crude oil inventories at remote refineries. Also, IOC is still waiting for government compensation for selling LPG below market prices, which further complicates its financial picture.

All eyes on IOC

Indian Oil’s borrowing plans, though necessary for expansion, are a mixed bag of opportunities and risks. The company’s long-term growth hinges on recovering refining margins and managing inventory costs. 

If market conditions turn in its favour, IOC could stabilize, making the ₹15,000 crore debt more manageable. But if recovery is slow, the financial pressure will be real. With shares down 16% in the last three months, investors will be holding their breath as IOC steers through these choppy waters.

PARTNER SECTION

NIT Durgapur Students Transform Agriculture at Hult Prize On-Campus Round

Fabricius Wins Hult Prize On-Campus Round

Three first-year students from NIT Durgapur have launched "Fabricius," a startup revolutionizing the agricultural value chain through affordable seed procurement, scientific training, and worker upskilling. By connecting farmers to global markets, they ensure fair pricing, improved livelihoods, and rural economic growth. This innovative venture won the Hult Prize 2025 On-Campus Round, organized by the EDC and IIIC of NIT Durgapur from December 5-16, 2024.

NIT Durgapur’s Drive for Global Impact

The event featured workshops, speaker sessions by industry experts, and hands-on mentorship, guiding participants in crafting impactful solutions. Judges evaluated diverse ideas, including drone-powered precision farming and biosensor health kits. Building on last year’s success at the Bangkok regional finals, this year’s teams aim to secure a global spot, embodying the institution’s spirit of innovation and commitment to solving critical global challenges.

MIRCH MASALA

⚠️ SBI issues urgent warning to customers to safeguard money

✈️ This $20 trillion tunnel could make global travel a breeze

🐕 This dog’s price tag beats an SUV with ₹60,000 monthly upkeep, but why?

🫨 2024’s most jaw-dropping Guinness World Records

👶 How this child star saved Hollywood from bankruptcy