Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: A mixed trend was observed in the markets, with Mid and Smallcap segments gaining while BankNifty-led corrections dragged the Index down to 24,413.50, losing 65.55 points. Media and Energy sectors led gains, while profit-booking caused corrections in FMCG, with 24,200 as crucial support and 24,560 as immediate resistance.

BUSINESS

BHEL Stock Rises Amid Dividend and Major Orders

What happened

On Monday, Bharat Heavy Electricals Ltd (BHEL) saw its shares jump by 3.62%, closing at ₹304.9 from the previous ₹294.25. The stock's intraday high hit ₹306.3, while the low touched ₹289.2. This rise comes as the Board of Directors fixed August 9, 2024, as the record date for a final dividend of ₹0.25 per share for 2023-24.

Given the President of India's 63.17% stake, the dividend payout will amount to ₹54,99,12,600. BHEL also announced two significant domestic orders, each worth over ₹7,000 crore, from Adani Power subsidiaries for thermal power projects in Uttar Pradesh and Chhattisgarh.

Why it matters

BHEL's stock performance is notable given its recent history, marking a 52-week high of ₹335.40 and a low of ₹94.11. The stock has provided investors with over 200% returns from its lowest point.

The major orders from Adani Power highlight BHEL's crucial role in India's energy sector, ensuring steady revenue and a robust order book, now standing at ₹78,000 crore. The increase in FII stake from 8.76% in March to 9.10% in June 2024 also signals growing investor interest.

Zoom out

BHEL's stock rise, substantial dividend payout, and major new orders paint a positive picture for the company's future. The thermal power projects will boost BHEL's revenue and affirm its position in the power sector. Investors can take heart from the company's strong market performance and healthy dividend payout ratio of 30.4%.

BIG MONEY MOVES

Ether ETFs hit the ground running with over $1 billion traded on the first day. Despite $106.7 million in net inflow, they couldn't quite catch up to Bitcoin ETFs, which saw a whopping $4.5 billion on their debut. The BlackRock iShares Ethereum Trust ETF led with $266.5 million in inflow, followed by Bitwise's $204 million.

Meanwhile, Grayscale's Ethereum Trust lost $484 million. With Ether trading below $3,500, it seems investors are cautiously optimistic. Looks like Bitcoin is still the high school quarterback, and Ether’s the new kid trying to fit in!

Tata Consumer's tasty discount announcements

Tata Consumer Products' board has announced a rights issue worth ₹3,000 crore at ₹818 per share, a sweet 34.97% discount. The offering includes 3,66,47,492 shares and will run from August 5 to August 19, with a record date set for July 27, 2024. On the announcement day,

Tata Consumer's stock spiced up the market, closing 4.42% higher at ₹1,258 on NSE. Despite a 19% dip in net profit to ₹217 crore in the March quarter, the company's revenue perked up by 8.5% to ₹3,927 crore.

BUSINESS

Quantum Computing: The Next Big Thing or a Quantum Leap of Faith?

What Happened

The Boston Consulting Group (BCG) has reaffirmed its bold projection: quantum computing will generate a staggering $450 billion to $850 billion in economic value globally by 2040. This forecast includes a robust $90 billion to $170 billion market for hardware and software providers.

Despite a 50% drop in overall tech investments, quantum computing attracted $1.2 billion from venture capitalists in 2023, signalling strong investor confidence. Governments are also jumping on the quantum bandwagon, expecting to pour over $10 billion into this futuristic technology over the next three to five years.

Why It Matters

Quantum computing is expected to play a central role in national security and economic growth, with public sector support reminiscent of past technological revolutions like semiconductors, the internet, and GPS. While BCG had previously painted a rosy picture for near-term value creation, technical hurdles in hardware development and stiff competition from classical computing have thrown a spanner in the works.

However, quantum machines still hold promise, especially in simulating materials and chemicals, potentially generating $100 million to $500 million annually during the first phase (until 2030).

The provider market for quantum computing is projected to hit between $1 billion and $2 billion by 2030, driven by public sector support, corporate investments, and supply chain revenues. "Yeh quantum computing ka future bahut bright hai.”

Zoom out

So, is quantum computing the next big thing or just a quantum leap of faith? BCG's report suggests it's a bit of both. While the path to quantum supremacy is riddled with challenges, the momentum is undeniable. With significant investments from both the public and private sectors and potential revenue from supply chains, the future looks promising.

BIG PICTURE

Tech stocks tank as Tesla and Alphabet stumble

On Wednesday, tech shares nosedived, dragging the Nasdaq Composite down 2.8%—its worst dip since December 2022. The S&P 500 dropped 1.7%, and the Dow slipped 0.9%. Tesla took a 10.8% hit after revealing a second-straight quarterly profit decline, with a 40% plunge from the previous year. Alphabet wasn’t far behind, sliding 4.7% due to disappointing YouTube ad revenue.

As if things couldn’t get worse, a global tech outage left everyone from stranded travellers to cybercrime victims in the lurch. To top it off, rumours of more US sanctions on Chinese tech firms stirred further anxiety. Talk about a bad tech day!

Porsche Puts the Brakes on EV Sales Targets

Luxury carmaker Porsche is slowing down its ambitious EV sales targets due to lukewarm customer demand and an aluminium parts shortage. The company had aimed for 80% of sales to be electric by 2030 but now admits it will depend on customer uptake and the development of electromobility.

For now, Porsche is ready to adapt its production to meet future market demands. Even luxury brands can't escape the bumps on the road to electrification!

BUSINESS

Indian Millionaires Seek Greener Pastures: A Passport to Prosperity

What happened

India's passport power took a hit this year, sliding from 80th to 82nd place on the Henley Passport Index, now offering visa-free access to just 58 destinations. On top of that, India is set to see a net loss of 4,300 millionaires in 2024, down from 5,100 the previous year.

Why it matters

India's affluent are not just looking to protect their wealth but also to enhance their global mobility and access to top-notch education for their children. The ability to travel visa-free is more than a convenience; it's an economic power play.

Investment migration programs in countries like Australia, Austria, Canada, Portugal, and the USA are attracting significant interest. For instance, the US EB-5 Immigrant Investor Program, requiring an $800,000 investment, is a hit among Indian investors, who rank third globally in visa issuance for 2024.

Indian students, numbering around 1.5 million studying abroad, are a major driver behind this trend. Countries with renowned educational institutions, such as the USA, Canada, the UK, and Australia, are particularly appealing. Securing permanent residence in these countries can be a game-changer, especially with the median US salaries being 32 times higher than those in India. 

Zoom out

In essence, India's drop in passport ranking and millionaire count has only intensified the quest for better global opportunities. The demand for strategic residence and citizenship planning is set to rise as India's economy continues to grow, creating more high-net-worth individuals. Countries like the UAE, with its magnet-like attraction for millionaires, exemplify the power of the free movement of people and capital. 

MIRCH MASALA

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