Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Nifty began positively but faced selling pressure in the second half, leading to a red close down approximately 142 points. This marked the end of a six-day winning streak, with the broader markets experiencing a correction, impacting overall market sentiments. The Nifty settled below 22,100 at 22,055.05, registering a loss of 141.90 points after reaching a record level in the previous trading session.

BUSINESS

HSBC Soars to Record Profits Despite Economic Headwinds

What happened

HSBC has just hit the jackpot, reporting a record-breaking profit in 2023. The banking giant's pre-tax gains skyrocketed by a jaw-dropping 80%, leaving investors grinning from ear to ear.

The bank reported a pre-tax profit of a staggering $30.3 billion , a colossal leap from the previous year's $17.1 billion. 

But, there's a twist in this success story.

While HSBC is popping champagne corks over its bumper profits, it's not oblivious to the storm clouds on the horizon.

The bank is cautiously eyeing China's economic recovery, slower than expected post-Covid, and the ominous geopolitical tensions lurking in the background.

Why it matters

HSBC, known for its Asia-focused strategy, has been steering its ship toward the East, eyeing the wealth business and fast-growing markets.

The move seems to have paid off, with the bank raking in most of its revenue in Asia.

• HSBC reported a 30% rise in revenue, reaching $66.1 billion , attributing it to increased business across all global sectors, driven by a higher interest rate environment.
  
  

• It also declared credit losses of $3.4 billion in 2023, including charges notably related to mainland China commercial real estate exposures.
  
  

• The banking giant also starting another share buyback, putting $2 billion into it, following last year's $7 billion buyback. 

However, not everything is sunshine and rainbows.

The profits include a boost of $2.5 billion from selling its French retail banking operations and a provisional gain of $1.6 billion from acquiring Silicon Valley Bank UK.

But, on the flip side, there's an impairment charge related to its associate, China's Bank of Communications.

Zoom out

In a bumpy Chinese recovery and global economic uncertainties, HSBC stands tall, projecting confidence in the resilience of the Chinese economy.

CEO Noel Quinn believes in the long-term growth opportunities in mainland China.

While HSBC acknowledges challenges, it remains optimistic, forecasting a net interest income of at least $41 billion in 2024.

BIG MONEY MOVES

Waaree bags ₹990.6 crore contract for 980 MWp solar project in India

India's prominent renewable energy firm, Waaree Renewable Technologies, has clinched a significant contract for a 980 MWp solar project valued at ₹990 crore.

The order, confirmed in a stock exchange filing, contributes to Waaree RTL's unexecuted order book, which currently stands at an impressive 2.141 GW.

The project is slated for completion within 12 months as per the Letter of Award (LOA).

Kaynes Semicon's ₹4,000 crore thrust in India's semiconductor boom

Kaynes Semicon, part of Kaynes Technology, plans to invest ₹4,000 crore in the next 1-2 years to establish a semiconductor OSAT/ATMP facility * in Hyderabad, Ahmedabad, or Bhubaneswar.

India, boasting 20% of the global chip design talent, has become a key player, with Kaynes Technology also allocating ₹200 crore for OSAT research and development.

With a focus on electric vehicles and diverse industrial sectors, Kaynes sees significant opportunities in semiconductor applications.

* OSAT-Outsourced Semiconductor Assembly and Test and ATMP-Advanced Packaging and Test Manufacturing

BUSINESS

Pocket FM Unleashes $40 Million Splash

What happened

Pocket FM, an audio series platform is set to pump $40 million into its newly launched online reading service, Pocket Novel. During the beta phase, Pocket Novel amassed a community of 150,000 writers and a library boasting around 250,000 novels.

Remarkably, readers engaged in over 1 million transactions, either purchasing entire novels or individual chapters.

Why it matters

Pocket Novel is gearing up for an ambitious expansion plan, aiming to grow its writer community to a whopping 1 million and expand its novel library to 2 million by 2025.

This ambitious strategy targets an annualized revenue of $100 million .

The platform's unique approach allows writers to showcase their work directly to users, bypassing traditional gatekeepers like publishers.

The company plans to leverage its marketing expertise and monetise intellectual properties to unlock additional value for writers.

While currently focusing on Hindi novels , Pocket Novel envisions gradual expansion into Tamil and Telugu languages. The move aligns with the growing importance of intellectual property ownership in the content creation landscape.

Zoom out

With big plans to own creative rights, it's making waves in India's growing e-bookmarket which is set to hit $297 million by 2029.

The platform is set to redefine how stories are born and raised, and maybe even turn into blockbuster audiobooks.

With plans to grow and own creative rights, Pocket Novel is changing the game in digital reading .

BIG PICTURE

👕  Amazon takes on Meesho, targets India's affordable fashion market

Amazon is gearing up to launch Amazon Bazaar , a new section featuring affordable, non-branded lifestyle and fashion items, aimed at appealing to cost-conscious Indian consumers.

The e-commerce giant acknowledged a longer delivery timeline of two to three days for Bazaar products, targeting a market segment prioritizing price over rapid delivery.

This move mirrors successful strategies by competitors like Meesho and Flipkart's Shopsy in the low-price marketplace .

🏯  Japan makes plans to revive its semiconductor industry

Japan is making a strategic move to revive its chip-making capabilities and reduce reliance on the US and China.

With global chip supply concerns due to geopolitical tensions , Japan sees an opportunity.

The government has allocated $26.7 billion in three years to revitalize the semiconductor industry, aiming for $71 billion with private sector support.

With plans to produce 2-nanometer logic chips by 2027, the Japanese are investing billions in a futuristic factory in Hokkaido, Rapidus Corp. The primary objective is to triple domestic chip sales to over $135 billion by 2030.

BUSINESS

SEBI Uncovers $241 Million Accounting Issue at Zee

What happened

India's market regulator, the Securities and Exchange Board of India (SEBI), has unearthed a staggering $241 million accounting issue at Zee Entertainment Enterprises Ltd.

This revelation comes as part of SEBI's ongoing investigation into the founders of Zee, and insiders. This jaw-dropping amount is about ten times more than initially estimated by the investigators.

This revelation follows closely on the heels of Zee's failed merger with Sony Group Corp's India unit, adding more turbulence to the media giant's already stormy journey .

Why it matters

The identified fund diversion, though not final, raises significant concerns as SEBI summons Zee's senior officials, including founders Subhash Chandra and Punit Goenka, for explanations.

This financial fiasco compounds the challenges for CEO Punit Goenka, who is already grappling with investor confidence following the collapse of the $10 billion merger with Sony.

The collapsed merger, aimed at fortifying Sony with Zee's rich content library, would have potentially improved Zee's financial health. Zee reported a substantial 95% decline in full-year profit and a Q3 profit of ₹58.5 crore , missing analyst estimates.

The regulatory investigation into alleged financial improprieties sparked conflicts between Sony and Zee since mid-2023, ultimately leading to the deal's termination in January 2024.

Zoom out

As Zee navigates through these financial storms, the SEBI revelation adds more clouds to the horizon.

The summons to Zee's top brass for explanations hints at a deeper regulatory scrutiny. With a revived merger attempt on the table and significant differences lingering, Zee's journey continues to be a rollercoaster of financial challenges and regulatory wrangling.

MIRCH MASALA

🥪 Employee fired for consuming leftover sandwich from office meeting room

🏏 Yashasvi Jaiswal buys dream house worth 5 crores , recalls his days of living in a tent

🍔 Mumbai influencer sparks outrage by dismissing vada pav as 'trash'

🤑 Man's ₹2,800 crore lottery triumph turns sour as company declares it a costly 'mistake'

✈️  Watch : Kannada actor Dhruva Sarja shares terrifying near-death experience during IndiGo flight turbulence