Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Optimism in Asian and European markets ahead of Trump’s inauguration boosted Indian benchmarks, with banking and telecom stocks leading the recovery. However, uncertainty remains high, with local investors now focusing on the Union Budget on February 1.

TOP STORIES

India’s Middle Class to Drive Insurance Growth in FY24

What Happened?

According to Moody's, India’s insurance industry is set for strong growth in FY24, fueled by economic expansion and rising health insurance demand. The sector saw premiums grow 16% in the first eight months of FY24, compared to 8% last year. Health insurance led the charge with 21% growth during this period.

• India’s economy is projected to grow at 7% in FY24, with GDP per capita rising 11% to $10,233. 

Why It Matters

India’s insurance market is still catching up, with insurance density at just $95—far below the US ($11.9%) and the UK ($9.7%). This means there’s huge room for growth! Private insurers are strengthening their financial health, and state-owned insurers have made progress, cutting underwriting losses by 25% in FY23.

But it’s not all smooth sailing. The transition to the new IND AS 117 accounting standard and rising claims in both life and non-life insurance are putting some pressure on the sector. Still, the industry managed to post a $6.9 billion profit after tax in FY23, marking a solid 41% increase from the year before.

Zoom out

India’s insurance industry is on an upward trajectory, thanks to a growing middle class, higher incomes, and supportive reforms. With more middle-class families buying policies and health insurance leading the charge, India’s insurance industry is riding a wave of growth. Sure, challenges like regulatory hurdles and rising costs remain, but the potential is enormous.

PAISON KA KHEL

India turns up the heat on ACs and lights up LEDs

India’s Production-Linked Incentive (PLI) scheme is back with a bang, attracting ₹3,516 crore in investments during its third round. A total of 24 companies—18 new and six upgraded—have joined the initiative to boost manufacturing of air conditioner and LED components. Of these, ₹2,299 crore will focus on new projects, with ₹1,217 crore from existing participants.

With over 1,000% growth in demand for components like compressors and LED drivers, this scheme is no small fry. 

Kingfisher back on tap in Telangana

United Breweries, the maker of Kingfisher beer, has decided to resume beer supplies to Telangana Beverages Corporation Limited (TGBCL). This move comes after “constructive discussions” with the state government, which assured the company it would address pricing concerns and clear overdue payments.

This decision, however, is temporary, as United Breweries will continue talks with TGBCL to resolve the issues. Earlier this month, the company had halted supplies, citing losses due to unchanged base prices since 2019-2020 and unpaid dues.

TOP STORIES

Profits Dip, Blinkit Trips, and Investors Flip

What Happened

Zomato’s Q3 FY25 results served a mixed platter, with profits shrinking 57% YoY to ₹59 crore—down from ₹138 crore last year. Blinkit, the company’s quick-commerce arm, played spoilsport, with its losses ballooning to ₹103 crore, compared to just ₹8 crore last quarter. 

While Zomato’s revenue jumped 64% YoY to ₹5,404 crore, expenses didn’t hold back either, climbing to ₹5,533 crore. Investors weren’t amused—Zomato’s stock took a 7% dive, proving that even quick deliveries can’t save slow profits.

Why It Matters

Zomato’s focus on growing Blinkit looks like a double-edged knife. Yes, Blinkit’s revenue shot up by 117% YoY, but those gains came with a hefty price tag. Meanwhile, the food delivery business posted modest growth, with GOV rising just 2.3% over the previous quarter—probably because everyone ordered biryani last month. 

Despite opening more than 1,000 dark stores, the strategy hasn’t lit up the profit margins yet. With expenses running wild, Zomato’s hefty cash balance of ₹19,235 crore is acting as a safety net, but how long can it last? 

What’s next?

Zomato is trying to grow faster than a food delivery on a rain-soaked Friday night, but the cost is making investors lose their appetite. While management is hopeful about long-term growth and a recovery in demand, the market isn’t feeling as optimistic. For now, Zomato’s story is one of high hopes, higher expenses, and a bumpy ride for its stock price. 

GLOBAL NAZARA

Melania Trump launches her own $MELANIA crypto

Melania Trump has joined the cryptocurrency game with the launch of her own coin, $MELANIA, just before her husband’s swearing-in as US president. Powered by the Solana blockchain, this crypto asset has a market valuation of around $1.7 billion, though it’s already seen its share of ups and downs.

While both the $Trump and $MELANIA coins aren’t intended as investment opportunities, they’ve sparked interest in the digital world. Melania’s new coin joins the volatile world of digital assets, with $Trump holding a massive $12 billion valuation.

Greenko raises $800 million for Orix stake

Greenko Energy’s founders are going big, raising an $800 million loan through AM Green Power BV to buy a 20% stake from Japan’s Orix Corp. Barclays and Deutsche Bank are stepping in to arrange the funds, but this massive loan could impact Greenko’s growth plans. 

While Greenko typically relies on equity for a quarter of its investments, the new structure may leave it with less financial backing than before. If all goes well, it’ll cost AM Green $1.46 billion to seal the deal. 

TOP STORIES

Tata Motors Prepares to Hit the Road with Hydrogen Trucks

What Happened?

Tata Motors is getting ready to hit the roads with hydrogen-powered trucks! Starting this March quarter, the company will pilot hydrogen internal combustion engine (H2-ICE) trucks on three routes: Mumbai-Pune, Jamshedpur-Kalinganagar, and Mumbai-Ahmedabad.

This 18-month project, part of the National Green Hydrogen Mission, is in partnership with IOCL. Tata Motors unveiled the trucks at the Bharat Mobility Global Expo 2025 and plans to use the pilot to gather data for improving the trucks and setting up fueling stations.

Why It Matters

Hydrogen trucks could be the next big thing in green transport! Unlike diesel, hydrogen doesn’t cough out harmful emissions, making it a cleaner choice for heavy-duty vehicles. Tata Motors, already running 15 hydrogen buses, is proving it’s serious about going green.

By testing the trucks in real-world conditions, the company hopes to perfect the technology and fuel infrastructure. If all goes well, hydrogen-powered trucks could hit the market in 12 to 24 months. Who knows—your next online shopping delivery might be greener than ever!

Zoom out

Tata Motors is shifting gears toward sustainability with this exciting pilot. By focusing on hydrogen and future-ready vehicles, the company is driving India closer to cleaner roads and a healthier environment.

For now, it’s all about testing and learning. But if these hydrogen trucks succeed, Tata Motors might just become the Tesla of heavy-duty transport—minus the tweets!

MIRCH MASALA

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