23 Nov

NewsWala aapke dwar, nayi subah aur nayi khabron ke saath!
 

MARKETS

Markets: Nifty 50 and Sensex muster lukewarm gains, while the BSE Smallcap, after a thrilling five-day victory lap, finally hits the brakes. Domestic market benchmarks are stuck in a trading range as the hype over potential US interest rate died, with investors now anxiously eyeing state elections. It's like the stock market got caught in a seesaw between Fed drama and political popcorn!

BUSINESS

‘Tax Trouble’ worth ₹750 Crore Delivered to Zomato, Swiggy

What happened

The Directorate General of GST Intelligence (DGGI) has slapped Zomato and Swiggy with a GST demand notice, claiming they owe a whopping ₹750 crore in total. Zomato faces a demand of over ₹400 crore, while Swiggy's notice amounts to ₹350 crore. The taxation body argues that as delivery is a service, both food delivery giants are obligated to pay GST for the period between July 2017 and March 2023.

Why it matters

This move puts Zomato and Swiggy under the tax microscope, hinting at potential financial implications. The DGGI deems their delivery services as taxable, adding pressure on the industry heavyweights. The tax authorities' action reflects a deeper scrutiny of the tech-driven food delivery sector. 

• While Zomato's shares dipped over 1% in response, both companies are yet to respond officially. 

• The tax notices, if enforced, could significantly impact their financial standings.

This development unfolds against the backdrop of Zomato reporting a net profit of ₹36 crore in the latest quarter, a remarkable turnaround from a ₹251 crore loss a year ago.

Bottom line

The taxation saga adds a twist to the dynamic narrative of India's booming food delivery sector, emphasizing the broader challenges facing the industry's key players.

The company management after they received the ‘unwanted delivery’ are like:

BIG MONEY MOVES

Air India Faces DGCA’s Heat over Passenger Inconvenience

Air India faces a ₹10 lakh fine from the Directorate General of Civil Aviation for violating rules on passenger facilities. DGCA inspections at Delhi, Kochi, and Bangalore airports revealed Air India's non-compliance with Civil Aviation Requirement provisions. The airline failed to offer hotel accommodations for delayed flights, neglected staff training, and did not compensate international business class passengers seated in unserviceable seats. The penalty was imposed following Air India's inadequate response to a show-cause notice issued on November 3.

RMZ Unleashes $7 Billion Investment Blitz

Bengaluru-based real estate developer RMZ Corp. is set to invest $7 billion in diverse ventures, including industrial and logistics, hospitality, mixed-use, and luxury residential development. The funding will also fuel the expansion of its core commercial office business. To achieve this ambitious plan, RMZ aims to secure a portion of the investment from institutional investors, while the remainder will come from its capital reserves.

BUSINESS

Raymond Faces Decline Amid Chairman's Divorce

What happened

In an unexpected turn of events that caught even the savviest stock market experts off guard, Raymond Ltd., a prominent player in global suit fabric production, finds itself navigating through choppy waters on the Stock Exchange. The reason? The high-profile divorce saga of the company's billionaire Chairman, Gautam Singhania, and his wife of 32 years, Nawaz Singhania, who also happens to be a board member.

Since Singhania dropped the bombshell of their separation on November 13, Raymond Ltd. has seen its stock take a nosedive, plummeting by a whopping 12%. To put it in cold, hard cash terms, that's over $180 million in market value gone in smoke signals. The situation hit a crescendo on Wednesday when the shares experienced a 4.4% dip, marking the most substantial drop since October 25.

Why it matters 

The market turmoil isn't merely a spectacle for financial gossip—it's a genuine cause for concern among investors. Since initiating coverage on November 20 with a 'hold' recommendation, the stock has been under scrutiny. As of now, the company boasts seven buy ratings and none on the sell side, according to Bloomberg data. 

• Adding fuel to the financial fire  Nawaz is aiming for a colossal 75% chunk of Singhania's $1.4 billion fortune as part of their divorce settlement.

This turmoil may impede decision-making processes, and erode investor confidence, amplifying the impact on Raymond Ltd.'s overall stability and strategic direction.

Zoom out

As the drama unfolds in the Singhania divorce proceedings, the financial markets are left grappling with the aftermath. As the market awaits further developments, one thing is certain: the suits at Raymond aren't just making headlines in fashion circles.

BIG PICTURE

📦️ Amazon to consider waterways for its deliveries

Amazon and India's Inland Waterways Authority (IWAI) have joined forces to enhance delivery services, launching the first cargo ship from Patna to Kolkata. Focused on eco-friendly transport, the partnership leverages rivers, consuming less fuel than road or rail. Beyond lowering Amazon's transportation costs, the collaboration opens opportunities for broader e-commerce use of India's inland waterways. The government's Sagarmala project supports this initiative with 113 projects worth ₹7,030 crore, promoting economic growth.

🎮️ Sony Faces $7.9B Lawsuit for Unfair PlayStation Store Prices

Sony is set to face a substantial £6.3 billion ($7.9 billion) lawsuit for allegedly exploiting its dominant market position, resulting in unfair pricing, according to a London tribunal ruling. The lawsuit, filed on behalf of around nine million UK residents who purchased digital games through Sony's PlayStation Store, claims the company forced exclusivity to its store, charging a 30% commission. 

BUSINESS

Tesla's Affordable EV Spark Buzz in Germany, India Next

What happened

Tesla, the brainchild of billionaire Elon Musk, is set to make a splash in Germany with the launch of its most affordable model, a two-door electric car. As reported by Moneycontrol, the same electric vehicle is slated for launch in India following its debut in Germany. While an official announcement from Tesla regarding its Indian venture is pending, the company plans to initiate imports of certain models starting in 2024, though specific details and the model name remain undisclosed.

The first Tesla model to hit Indian roads will be the Model Y Crossover. This battery-electric mid-size crossover SUV, introduced by Tesla in 2020, is built on the Model 3 sedan platform. 

Why it matters

Union Commerce Minister Piyush Goyal previously hinted at Tesla's plan to increase the number of components sourced from India, underlining the growing importance of Indian auto component suppliers in Tesla's electric vehicle supply chain. 

• In September, Goyal disclosed Tesla's ambition to procure components valued between $1.7 billion and $1.9 billion from India in 2023, following a $1 billion component purchase in 2022. 

India is on the verge of finalizing an agreement with Tesla, allowing the American automaker to ship its electric cars to India from next year onwards. Additionally, plans for Tesla to establish a manufacturing facility in India within two years are in the works.

Zoom out

The impending agreement between India and Tesla, along with the potential factory setup, signals a significant stride towards bolstering India's electric vehicle ecosystem. Keep an eye out for potential developments and an official announcement, possibly at the Vibrant Gujarat Global Summit in January. The wheels are in motion for a charged-up future in the Indian automotive landscape.

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