Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On Thursday, July 18, the Indian stock market saw a split performance: while the Nifty 50 and Sensex hit all-time highs, mid and smallcap indices took a 1% dip. The day started slow but gained momentum later, buoyed by strong performances from leading IT firms.

BUSINESS

Discount Brokers Dominate Amid Regulatory Changes

What happened

Discount brokers are stealing the show in India’s brokerage market. 

• Groww, the Bengaluru-based firm, doubled its active investor base to nearly 11 million users in a year, while
  
  

• Angel One added 220,000 active investors in June alone, edging closer to rival Zerodha. The total number of demat accounts in June hit 160 million, with a net addition of 4.2 million accounts.
  

Meanwhile, SEBI's upcoming true-to-label norms and potential F&O trading restrictions loom large over the industry.

Why it matters

The rapid rise of discount brokers is shaking up investor preferences like a snow globe. Traditional brokers, especially those with bank backing, are barely moving the needle. One standout is SBICAP Securities, which boosted its active investors by a whopping 64% to 920,000.

Anyway, SEBI’s new regulations could chop discount brokers’ revenues by 20-40%, as F&O traders—who are just 10-20% of clients but generate a hefty 60-80% of revenue—face stricter controls. They're contemplating a massive jump in the minimum contract value from ₹5 lakh to ₹25 lakh. It feels like it is not just about safeguarding retail investors anymore—it's about creating a VIP section where only serious players with deep pockets can roll the dice.

Final words

Angel One reported a 74% rise in revenue to ₹1,405 crore, but also saw expenses double due to IPL sponsorship. The company’s shares, however, have dipped 36% this year, contrasting with a 10% rise in the broader Nifty Financial Services Index. Investors should brace for a bumpy ride, but perhaps with a bit of popcorn—after all, who doesn’t love a good drama?

BIG MONEY MOVES

Nazara Technologies' gaming subsidiaries hit with ₹1,120 crore GST shock

Nazara Technologies' gaming subsidiaries, Openplay Technologies and Halaplay Technologies are facing a whopping ₹1,120 crore GST bill. The taxman, not amused by their gaming tactics, slapped ₹845.72 crore on Openplay and ₹274.21 crore on Halaplay for GST miscalculations. The miscalculations pertain to taxing player contributions rather than the gaming revenues directly earned by Nazara’s subsidiaries. 

As a result, the company stock price took the blow of a massive 8% loss.

ADB powers up India's rooftops with $240.5M solar investment

Imagine India's rooftops becoming mini power plants! The Asian Development Bank (ADB) is making this a reality with an enormous $240.5 million loan. This funding spread through the State Bank of India (SBI) and NABARD, will support phases 2 and 3 of the Solar Rooftop Investment Program, targeting residential installations.

BUSINESS

Global Tyre Giants Commit ₹1,100+ Cr to India

What happened

The Department for Promotion of Industry and Internal Trade (DPIIT) just pulled off a tire-ific feat! Global tyre titans like Bridgestone, Michelin, and Goodyear are rolling in with over ₹ 1,100 crore to push tyre manufacturing in India. This happened because DPIIT allowed certain imports of 'New Pneumatic Tyres,' but only if these companies promised to set up or improve their local production facilities within a specific timeframe.

Why it matters

Thanks to these moves, India's exports have skyrocketed by 227% in the last decade! At the same time, imports have taken a 37% nosedive, pointing to a major shift towards homegrown production. What's more, the tyres on our shelves are now 84% squeaky clean in terms of meeting top-notch quality standards, up from a mere 33% just four years ago. It's clear DPIIT isn't playing around when it comes to ramping up local manufacturing and ensuring we're the MVPs in the global game!

Zoom out

DPIIT's Department for Promotion of Industry and Internal Trade toy-tally awesome moves have really paid off! By tweaking tariffs, setting up Quality Control Orders (QCOs), and strategizing with the National Action Plan for Toys (NAPT) and cluster development, DPIIT has turned our toy story into a global hit. 

BIG PICTURE

Google teams up with MeitY to boost AI skills for 10,000 startups

Google and the Ministry of Electronics and Information Technology's Startup Hub are partnering to train 10,000 startups in AI. With new developer tools and access to AI models Gemini and Gemma, Google is turning these startups into tech wizards. Think of it as Hogwarts for AI!

This initiative, part of Google’s strategy to tap into India’s growing AI developer ecosystem, includes AI-first programming, mentorship, and up to $350,000 in Google Cloud credits for eligible startups.

Infosys kicks off fiscal year with stellar growth

Infosys has come roaring back, leaving competitors in the dust with a stellar start to the fiscal year ending March 2025. The tech giant's revenue hit $4.7 billion in the first quarter, a zippy 3.3% jump from the previous quarter, thanks to a surge in financial services and a solid India business.

Leading the charge, Infosys’s financial services segment added a cool $91 million, making up almost 61% of the total revenue bump of $150 million.

BUSINESS

IDBI Bank's ₹29,000 Cr Privatization Gets RBI Green Light

What happened

The Reserve Bank of India (RBI) has given its 'fit and proper' approval to bidders for IDBI Bank, clearing a significant hurdle for the Modi government's divestment plans. This approval excludes one foreign participant pending further information from overseas regulators. With the government and LIC holding 94.72% of IDBI Bank, they're planning to auction off a whopping 60.7% of that pie.

Why it matters

While BPCL and LIC's privatization plans are stuck in a slow dance, the Modi government is strangely upbeat about hitting its ₹50,000 crore disinvestment target. On the other hand IDBI Bank seems to be perfect—half private, half government-backed, like a funky hybrid car cruising through city traffic. 

The RBI's nod is a big win for Modi's team, pushing India's bank reforms forward. IDBI Bank's move towards privatization promises not just better efficiency and competition but also showcases India's dedication to big changes in uncertain times.

Zoom out

Shares of IDBI Bank jumped nearly 5% after the RBI's thumbs-up, while the benchmark indices hit a tiny speed bump. With a market cap of around ₹95,000 crore, it's clear investors are all in on the upcoming stake sale.  The bank's current market capitalization stands at approximately ₹ 95,000 crore, indicating significant investor interest in the impending stake sale.

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