Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The markets opened weak and ended nearly flat, with the Nifty closing at 24,509.25 due to mixed global cues and earnings reports. Gains in HDFC Bank and Infosys balanced the losses from Reliance and Kotak Bank, and high volatility is anticipated ahead of the Union Budget.

BUSINESS

Rolls-Royce and TCS Team Up for Engineering Excellence and Hydrogen Dreams

What happened

Rolls-Royce, the big daddy of the aviation world, has joined hands with Tata Consultancy Services (TCS), our desi IT giant. This partnership is set to revamp Rolls-Royce's engineering services across its entire product life cycle.

Rolls-Royce is also looking to the future of aviation fuel. They’ve brought TCS on board to help develop hydrogen fuel systems, which could potentially revolutionise zero-carbon aviation.

Why it matters

This partnership is a big deal for both companies. Rolls-Royce, with its vast footprint in the aerospace, marine, and energy sectors, is reinforcing its commitment to engineering excellence and innovation by partnering with TCS. This collaboration will help Rolls-Royce expand its engineering footprint in India and boost its technical capabilities.

For TCS, this partnership is a significant milestone. It underscores their growing influence in the aerospace sector and their dedication to sustainable tech solutions. Aligning with global goals like the International Air Transport Association’s (IATA) target for net zero carbon emissions by 2050, TCS’s role in hydrogen fuel research highlights its commitment to driving positive societal impact.

Zoom Out

In short, this partnership is a total paisa vasool deal. Rolls-Royce gets to tap into TCS’s engineering talent, helping them innovate and stay ahead in the aviation race. Conversely, TCS strengthens its position as a key player in the aerospace sector, showcasing its ability to handle complex challenges.

This partnership reflects a strong commitment to innovation and environmental responsibility, showing that when two industry leaders join forces, the sky's the limit.

BIG MONEY MOVES

Amazon eyes Swiggy’s Instamart, but deal faces hurdles

Amazon is reportedly interested in Swiggy’s quick commerce arm, Instamart, according to Economic Times sources. The e-commerce giant might consider a stake in the pre-IPO placement or a full buyout valued at $10-12 billion. However, the deal's complex structure and Amazon's preference for majority stakes pose significant challenges.

With Swiggy unlikely to sell just Instamart and Amazon not keen on food delivery, the chances of closing the deal seem slim. Meanwhile, Amazon's India team is developing its quick commerce initiative, but it needs global approval for a new vertical.

JSW Neo bags big solar contracts

JSW Neo Energy Limited, a subsidiary of JSW Energy Limited, has snagged two major contracts for solar projects. One project, awarded by the Solar Energy Corporation of India Limited (SECI), involves setting up a 500-megawatt solar power plant with a 250-megawatt or 500-megawatt-hour energy storage system. Karnataka Renewable Energy Development Limited (KREDL) awarded the second contract for a 300-megawatt solar project at Pavagada Solar Park.

JSW Energy aims for 20 gigawatts of generation and 40 gigawatt hours of storage by 2030, aiming for carbon neutrality by 2050.

BUSINESS

Retail Investor Boom: Indian Households Dive into Financial Markets

What happened

Well, well, well, Indian households have decided to shake things up! According to the latest Economic Survey, 20% of Indian households are now investing their savings in financial markets. Unique tax IDs registered on the National Stock Exchange (NSE) surged from 27 million five years ago to a staggering 92 million in FY24. That's like moving from a Maruti 800 to a Tesla in no time.

Why it matters

So, The pandemic played a big role. With seamless tech integration, government measures for financial inclusion, digital infrastructure growth, and rapid smartphone penetration, investing has never been easier. Plus, the rise of low-cost brokerages and the quest for alternative income sources, coupled with lower returns from traditional assets like real estate and gold, have pushed more people towards financial markets.

But it's not just about stocks.

• Retail participation through mutual funds has also skyrocketed. The number of mutual fund folios increased from 146 million at the end of FY23 to 178 million at the end of FY24. 

• Mutual fund assets under management (AUM) grew by ₹14 lakh crore to ₹53.4 lakh crore, marking a 35% increase. The mutual fund segment boasts about 8.4 crore systematic investment plans (SIPs), with annual net SIP flows doubling from ₹1 lakh crore in FY21 to

  ₹2 lakh crore in FY24.

• As if that’s not enough, investors are reinvesting their financial market gains into real assets. 

Continuous investor awareness programs focusing on rights and responsibilities have further boosted individual participation in securities markets.

Zoom out

In a nutshell, India is witnessing a retail investor boom. With 20% of households now in the game, the landscape of Indian financial markets is changing dramatically. This surge is not just a passing trend but a significant shift in financial behaviour. The combination of tech advancements, government support, and changing investor preferences has created a perfect storm for this growth.

BIG PICTURE

China makes bold rate cuts to rev up the economy

China jolted markets on Monday with unexpected cuts to both short-term and long-term interest rates, marking its first major move since August 2023. The People’s Bank of China slashed the seven-day reverse repo rate from 1.8% to 1.7% and lowered benchmark lending rates.

The one-year loan prime rate (LPR) fell to 3.35% from 3.45%, while the five-year LPR dropped to 3.85% from 3.95%. This surprise adjustment comes amid weak Q2 economic data, deflation risks, and a sluggish property market.

Egypt's budget surplus surges despite hurdles

Egypt's budget for FY 23-24 has reported a remarkable surplus of 875 billion Egyptian pounds ($18.14 billion), a leap from last year's 164 billion pounds. Finance Minister Ahmed Kouchouk announced this growth despite economic shocks from the Gaza crisis affecting tourism and Suez Canal revenues. Revenues surged 59.3%, and the overall deficit shrank by 17%, reaching 505 billion pounds. 

However, sectors like education and health exceeded their budgets. In response to inflation, the government increased the 2024/2025 budget by 2.8 trillion pounds ($59 billion). Despite challenges, Egypt's financial performance remains strong.

BUSINESS

Kanwar Yatra: Devotion and Dollars on the Move

What Happened?

The Kanwar Yatra kicked off on Monday, marking the start of the Hindu month of Shravan. This annual pilgrimage is expected to see over three crores (30 million) Shiva devotees. The kanwariyas, as the participants are called, journey through Uttar Pradesh, Haryana, Rajasthan, and Delhi to reach sacred destinations, carrying pots of holy Ganga water from Haridwar or Varanasi.

Dressed mostly in saffron, they travel by foot, bikes, cars, or even tractor trolleys. But it’s not just a spiritual journey—this yatra is a significant economic event, benefiting thousands of local businesses along the route.

Why It Matters?

Kanwariyas are big spenders, and their month-long pilgrimage generates business worth around ₹1,000 crore. Each kanwariya spends between ₹3,000 and ₹4,000, boosting the income of local eateries, clothes sellers, fruit vendors, and pitcher sellers. Vishwajit Chaudhary, owner of Shiva Tourist Punjabi Dhaba, notes that his eatery earns twice as much during the yatra compared to other days.

The economic impact isn't limited to just food stalls. Petrol pumps along the route see increased business, and daily wage earners like Brijesh Pal, who works at a roadside dhaba, find lucrative opportunities, earning ₹400-600 a day.

Zoom out

The government is not sitting idle either. With a budgetary allocation of ₹100 crore, they’ve renovated roads, constructed culverts, ensured cleanliness, and provided a continuous power supply. Special measures include regular spraying of disinfectants and maintaining community toilets. There’s even ₹20 lakh set aside for choppers to shower rose petals on the kanwariyas.

The Kanwar Yatra is not just a spiritual event; it’s a powerful economic engine. By spending generously, the kanwariyas bring a significant financial uplift to local businesses and workers along their path. So, while devotees fulfil their spiritual quests, they also leave behind a trail of economic prosperity. “Kanwariya yatra: jab bhakti aur vyapar milte hain!” 

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