Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Sensex surged by 280 points, and the Nifty hit 24,700, driven by strong rallies in financial stocks like SBI Life Insurance and HDFC Life. All sectoral indices, except FMCG, ended higher, with the BSE midcap and smallcap indices rising by 1% and 0.5%, respectively.

TOP STORIES

Honda Surpasses Hero Reigniting Old Rivalry

What happened

Thirteen years after their split, Honda Motorcycle & Scooter India (HMSI) has zoomed past its former partner, Hero MotoCorp, in wholesale dispatches.

•  From April to July, Honda dispatched a solid 18.53 lakh two-wheelers, edging out Hero's 18.31 lakh units. 
  

That’s a difference of around 21,653 units, which swells to over 1.3 lakh when exports are factored in. This marks a significant milestone in the two-wheeler market, considering Hero had been the undisputed leader since the duo parted ways in 2011 after a 26-year partnership.

Driving the news

So, what’s fueling Honda’s comeback? Urban consumers are favouring scooters and mid-to-premium motorcycles, while the rural market, a stronghold for Hero, is still finding its feet. Experts like Ravi Bhatia of Jato Dynamics note that Honda’s supply chain is firing on all cylinders just as the festive season kicks in, giving them an edge. 

Meanwhile, India Ratings & Research points out that while urban demand is robust, rural areas haven’t fully rebounded, affecting Hero's numbers. Despite Honda’s wholesale win, Hero still leads in retail sales with over 17.5 lakh units sold from April to July, compared to Honda’s 15 lakh units.

Zoom out

The race between Hero MotoCorp and Honda is heating up as the festive season approaches. Honda's market share has climbed from just under 20% in April to 24.3% in July, while Hero’s has dipped from over 33% to 29.4%.


Although Honda has taken the lead in dispatches, Hero remains the retail champion for now. But with competition intensifying, the two-wheeler market is gearing up for a thrilling ride. Buckle up, because this rivalry is far from over!

The Newswala is humming this beautiful old song from Hero’s ad, do you remember it?

PAISON KA KHEL

Antfin sells Zomato stake in ₹5,438 crore block deal

Antfin Singapore, an Alibaba subsidiary, sold a 2.4% stake in Zomato for ₹5,438.50 crore on August 20. This deal involved 21 crore shares at ₹258 each, a slight discount of about 2% from the previous close. 

Following the sale, Zomato's shares dipped over 1%, trading at ₹259.20. Despite the dip, Zomato's stock has surged by 200% over the past year and remains a hot pick among analysts, with some predicting it could top ₹300 soon. Just remember, even with a dip, it’s still a spicy stock!

Supreme Court clears the decks for Samrudhhi Realty auction

The Supreme Court has given the go-ahead to auction Samrudhhi Realty’s assets to recover a whopping ₹5,000 crore in debt. This case traces back to 2019 when Samrudhhi Realty hit rock bottom and entered insolvency. Essel Finance, one of the creditors, had invested in secured non-convertible debentures, hoping for solid returns. But when Samrudhhi crumbled, Essel was left scrambling, trying to recoup its losses. 

TOP STORIES

Food Companies Get Extra Time to Use Up '100% Fruit Juice' Labels

What happened

The Food Safety and Standards Authority of India (FSSAI) has granted food companies a four-month extension to deplete their stock of packaging claiming '100% fruit juices'. Originally set to expire on August 31, the new deadline is now December 31, 2024.

This delay follows discussions with stakeholders and aims to ease the transition for businesses caught with outdated labels. Products made before the deadline can still be sold until their shelf life ends, giving companies more time to use up their inventory.

The impact

The extension comes after FSSAI's June directive to remove misleading '100% fruit juice' claims from product labels and advertisements. The regulator flagged that many fruit juices were inaccurately marketed as '100% fruit juice,' despite often being reconstituted with water and concentrates.

By pushing the deadline, FSSAI hopes to reduce the confusion and ensure that labels match the actual contents of the juice. This move is crucial as it protects consumers from being duped by what they drink, making sure that if a label says ‘100%’, it really means it.

Final words

This news joins recent failures in spice safety testing highlighting a critical need for stronger enforcement and transparency in food safety regulations. With 474 out of 4,054 samples falling short of FSSAI standards and international bans affecting major markets, the Indian food industry faces a challenging period. 

GLOBAL NAZARA

ONGC Videsh scores big with Vietnam contract extensions

ONGC Videsh has secured a 16-year extension for its oil and gas production in Vietnam’s Block 06.1, now valid until 2039. This block, located in the Nam Con Son Basin, produces about 1 million tonnes of oil and gas annually. 

Additionally, the company gained a three-year extension for exploring Block 128 in the South China Sea, extending its license to June 2026. Despite no significant discoveries in the past 18 years, this extension supports India’s strategic interests in the contested waters.  

Flipkart Minutes beats Blinkit on price

Flipkart Minutes has entered the quick commerce race with a bang, undercutting Blinkit by about 10% in prices, reports UBS. Launched in August in select Bengaluru areas, Flipkart is using this price drop to attract shoppers and build a loyal customer base.

UBS notes that Flipkart's strategy mirrors successful models from other big players, adjusting app design and fee structures. While Blinkit, the market leader with a 40-45% share, sticks to its no-discount policy, Flipkart's discount approach might be its ticket to gaining traction.

TOP STORIES

Hotel Room Rates Set to Soar as Demand Outpaces Supply

What happened

Hotel room rates in India are set to stay high, driven by a strong demand that far exceeds the supply of branded rooms. During Q1 FY25, occupancy levels at Tata Group’s Indian Hotels Company (IHCL) in Delhi-NCR climbed by 2% to 82%, while revenue per available room jumped by 10% to ₹8,200. 

However, despite adding 2,900 rooms nationwide, supply still lags significantly. In fact, branded rooms in India are severely underpenetrated, with only 0.1 rooms per 1,000 people, compared to 16.3 in the US and 3.2 in China.

Why it matters

The shortage of hotel rooms isn't just a minor inconvenience; it's a big deal for the industry and travellers alike. With demand growing at a projected 10% CAGR and supply only increasing at 8%, the gap is widening. This imbalance is expected to keep hotel rates sky-high, especially as we move into the peak travel seasons of weddings and conferences in the latter half of the year.

Experts predict that the July-September quarter will see a recovery from the previous quarter's slowdown, further heating up the market.  

Conclusion

So, if you're planning a trip or event, prepare your wallet. The number of branded hotel rooms is crawling at a snail's pace, with only 50,000 more expected by FY27, far short of what's needed.  

MIRCH MASALA

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