Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On September 26, Indian equity indices closed strongly, with the Nifty surpassing 26,200 for the first time, while the Sensex rose by 666.25 points to reach 85,836.12. The markets gained nearly 1% on monthly expiry day, driven by positive momentum in major sectors like auto, metal, and FMCG, although broader indices ended the session mixed.

TOP STORIES

Tata Tops IndiGo in Capacity Race

What Happened?

For the third consecutive month, Tata Group's airlines, including Air India and Vistara, have outpaced IndiGo in terms of capacity measured by Available Seat Kilometres (ASK). In August, Tata's airlines offered 1% more capacity than IndiGo, marking a shift in the competition.

• While Tata Group’s four airlines operated 3,831 international flights with an ASK of over 507 crore, IndiGo, despite running 7,169 international flights, recorded a lower ASK at aroofd 367 crore.
  
  

• However, IndiGo remains the leader in departures and passengers, operating 79% more flights and carrying 74% more passengers than Tata’s airlines.
  
  

Why it matters

This ASK lead indicates that Tata Group is leveraging its long-haul international flights to increase capacity, which is crucial in the aviation industry. IndiGo’s focus on domestic routes gives it an undeniable edge with more departures, but Tata Group’s strategy of merging its airlines and utilizing full-service options like Air India’s long-range flights is paying off. 

IndiGo isn’t sitting idle though. The airline plans to introduce wide-body A350s by 2027 and the A321XLR next year, which will likely boost its ASK on international routes and could tilt the balance back in its favour.

The numbers don't lie

Meanwhile, IndiGo has grown significantly since December 2019, increasing domestic departures by 34% and international by 47%. Its ASK for domestic and international flights has risen by 41% and 68% respectively. 

• In comparison, Air India has increased its capacity by 13% for domestic flights and 25% for international routes over the same period. 
  

• Vistara, a key player for Tata Group, has shown explosive growth, with international departures five times higher than pre-COVID levels.
  

As they say in the aviation world, it’s not just about flying high—it’s about flying smart.

PAISON KA KHEL

ANAND group accelerates EV and SUV manufacturing 

ANAND Group is shifting gears and investing ₹600 crore this year to charge up its electric vehicle (EV) and SUV component manufacturing! This is part of a grand ₹3,600 crore plan over five years—because why settle for slow when you can ‘vroom‘? With an appreciable 35% market share in the SUV segment, they’re ready to rake in the cash.

Zetwerk wins ₹2,500 crore solar PV module order from NTPC

Zetwerk just bagged its second solar PV module manufacturing order from NTPC, worth a hefty ₹2,500 crore. That's about four times bigger than their previous deal with NTPC in 2023. This new order is for 1,515 megawatt peak (MWp) of solar modules for Gujarat’s Khavda Solar Project, making Zetwerk a big player in India's solar game.

The company will deliver the goods in 210 days, contributing to India’s energy transition. Zetwerk clearly has a sunny future ahead—no wonder they’re charged up!

TOP STORIES

Natural Diamond Industry Faces Rock-Bottom

What Happened

The natural diamond polishing industry in India is staring into the abyss, expecting revenues to plummet to a decade-low of around $12 billion this fiscal year. According to a report by CRISIL Ratings, this 25-27% drop comes after a rough ride over the past few years, with revenues already contracting by 29% last year and around 9% the year before. 

Why it matters

The significance of these figures isn’t just about glittering gems. A slump in the diamond polishing sector signals broader economic trends. As consumers shift their spending to more affordable lab-grown diamonds (LGDs), traditional diamond polishers are tightening their belts, cutting back on purchases of rough stones, and curbing production. 

• With diamond exports to the US falling 43% over the last two fiscals and youth opting for LGDs due to tighter budgets, the traditional diamond market is feeling the heat. 
  
  

• As CRISIL Ratings pointed out, LGDs have gained a staggering 25% market share in the US, up from just 8% two years ago.
  
  

Final words

With revenues taking a nosedive and industry players scrambling to manage costs, the outlook for natural diamond polishers isn’t sparkling. Inventory levels are expected to drop by over 10% this year, which might help stabilize some financial woes. And why not when LGDs are as attractive as their natural counterparts but cost a mere fraction—about 90% less.

GLOBAL NAZARA

IMF bails out Pakistan (again) with a $7 billion loan

Pakistan's piggy bank is running dry, and once again, the IMF has come to the rescue with a $7 billion loan. The first $1 billion will land in the country's coffers immediately, with the rest arriving over three years. 

Prime Minister Shehbaz Sharif was quick to thank the IMF, marking the 20th+ loan since 1958. Pakistan’s economy, however, remains a rollercoaster of financial mismanagement, with last year's near-default still fresh.  

EaseMyTrip takes off as promoter sells stake worth ₹920 crore

EaseMyTrip shares soared 6.4% to ₹36.49 after promoter Nishant Pitti sold a whopping ₹920 crore worth of shares. He offloaded 24.65 crore shares, dropping his stake to around 14% from 28%. Investors eagerly grabbed the opportunity, pushing the stock higher.

While the company’s stock has dipped 12.6% in the past year, it’s now making moves in the travel space. Recently, they teamed up with Bank of Baroda to launch a co-branded travel debit card. Time to pack your bags, investors!

TOP STORIES

Radisson eyes smaller cities in India’s hotel race

What Happened?

Radisson Hotel Group is on a rapid expansion spree across India, tapping into the growing demand for branded hotel rooms, especially in tier II and III cities. The group, which operates brands like Radisson, Radisson Blu, and Park Inn, boasts a portfolio of 115 hotels in India, with 80 more in the pipeline. 

• Radisson's India arm reportedly made about ₹4,000 crore in FY24. 
  

They’ve set sights on religious tourism hotspots like Ayodhya and Vrindavan and plan to open more properties in smaller towns like Sagar and Phagwara.

Why It Matters

The group’s occupancy rate currently exceeds 70%, well above its competitors. With demand for branded hotel rooms in India skyrocketing, Radisson is positioning itself to capture a large chunk of the market. 

India only has as many branded rooms as New York, so there’s a massive gap to fill, especially with demand expected to outpace supply for the next 7-10 years. The company’s move into tier II and III cities is strategic, as nearly 50% of its portfolio lies in these emerging markets. 

Conclusion

As Radisson ramps up its expansion in India, the company is aligning itself with the evolving consumer preferences in the post-pandemic era. With plans to bring in 20 new properties in 2024, including upscale leisure resorts, Radisson is poised to tap into the nation’s increasing disposable income and growing desire for experiential travel.

Moreover, the company’s emphasis on diversifying revenue streams—especially in food and beverage, which now accounts for 50% of its earnings—reflects a big shift toward experiences over mere accommodations. 

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