Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Indian markets ended a 5-day winning streak on April 26, with the Nifty dropping below 22,400 amid increased volatility. The Sensex closed 609.28 points lower at 73,730, facing selling pressure and showing signs of a potential bearish reversal.

BUSINESS

Indian Auto Market: Accelerating Towards USD 300 Billion

What happened

India's automotive sector is on a rapid growth trajectory, eyeing a significant milestone of reaching $300 billion by 2026. Fuelled by rising incomes, urbanization, and an expanding middle class with greater purchasing power, the industry is witnessing robust production numbers. 

In March 2024 alone, the sector churned out 2,325,959 units across various vehicle categories, including passenger vehicles, three-wheelers, two-wheelers, and quadricycles. The first quarter of 2024 saw a total production of 7,394,417 units.

Why it matters

India's dominance in the global automotive arena is underscored by its status as the world's largest two-wheeler manufacturer, producing over 21 million units annually. Additionally, the country ranks as the world's third-largest heavy truck manufacturer and fourth-largest car manufacturer.

The sector's attractiveness to foreign investors is evident, with a cumulative equity FDI inflow of about $35.40 billion between April 2000 and September 2023. The sector's growth is not limited to domestic markets; India's automobile exports reached 47,61,487 units in FY23, playing a vital role in the nation's GDP and employment generation for about 19 million people.

Zoom out 

With initiatives like Make in India and a strong focus on electric vehicles (EVs), India's automotive industry is poised for exponential growth. The projected investment opportunity of over $200 billion in the next 8-10 years, coupled with the EV market expected to grow at a CAGR of 49% between 2022-2030, signifies tremendous potential. 

Collaborative efforts and embracing emerging trends will be crucial in unlocking new opportunities and propelling India's automotive sector to greater heights in the global market.

BIG MONEY MOVES

Alphabet's AI might drive market cap beyond $2 trillion

Alphabet Inc., Google's parent company, surged past a $2 trillion market capitalization, with its stock rising by 10% to $171.95 in a single day. This leap, adding nearly $200 billion to its value, followed a robust earnings report showcasing Alphabet's prowess in artificial intelligence (AI).

The company's revenue exceeded expectations, buoyed by strong demand for its cloud services fueled by AI growth. With a dividend introduction and a $70 billion buyback plan, Alphabet's strategic moves have impressed investors, earning it a place among the elite few, including Apple and Microsoft, to breach this historic market milestone.

ATC Telecom Infrastructure sells Vodafone Idea stake for ₹1,840 crore

ATC Telecom Infrastructure Pvt Ltd has exited Vodafone Idea by selling its entire 2.87% stake for ₹1,840 crore. The sale involved 144 crore shares at an average price of ₹12.78 each. This move follows ATC's conversion of debentures into equities.

Additionally, Citigroup Global Markets Mauritius acquired a 0.98% stake in VIL, while Vodafone Idea recently raised ₹18,000 crore through a successful follow-on public offering. These developments are significant as Vodafone Idea aims to enhance its competitive standing in India's telecom market against rivals like Reliance Jio and Bharti Airtel.

BUSINESS

IREDA Achieves the Coveted 'Navratna' Status

What happened

IREDA Ltd, the Indian Renewable Energy Development Agency, is set to gain attention in the stock market following the announcement of its 'Navratna status' by the Government of India. This prestigious status, accorded by the Department of Public Enterprises, signifies a milestone for the state-owned company. 

Why it matters

The 'Navratna' status, a prestigious designation bestowed upon Public Sector Undertakings (PSUs), grants them the authority to undertake investments of up to ₹1,000 crore without requiring approval from the central government. This status also allows them to invest up to 30% of their net worth within a year, provided they adhere to the ₹1,000 crore threshold.

To qualify for 'Navratna,' firms must already possess the 'Miniratna Category I' status and be listed under Schedule A of Central Public Sector Enterprises (CPSEs), ensuring a rigorous selection process for this esteemed recognition.

IREDA announced its Q4 results for the fiscal year 2024 on April 19, 2024. The company delivered impressive figures for the recently concluded March 2024 quarter, showcasing significant growth both sequentially and annually.

•  In Q4FY24, IREDA reported a net profit of ₹337.37 crore, marking a 33% year-on-year (YoY) increase compared to Q4FY23. 
  
  

• Furthermore, the company's Profit After Tax (PAT) witnessed a remarkable YoY growth of 44.83%, reaching an all-time high of ₹1252.23 crore. 

These results solidify IREDA's position as India's largest pure-play green financing Non-Banking Financial Company (NBFC).

Zoom out

Financial experts are bullish about the implications of this development on IREDA's business. This move is expected to boost IREDA's order book, especially as the company expands into solar and alternative energy sectors, aligning with the government's green energy initiatives.

BIG PICTURE

💉 Advent commits ₹2,475 crores to Apollo 24|7 for healthcare innovation

HealthCo, a subsidiary of Apollo Hospitals, is set to raise ₹2,475 crores from Advent International in an equity capital agreement.  This investment is part of a larger merger plan that includes integrating Keimed Private Limited, a major wholesale pharma distributor, into Apollo 24/7's digital arm over the next 24-30 months.

Advent's investment, securing a 12.1% stake in the merged entity valued at ₹22,481 crores, highlights Apollo's strategic expansion and the evolving landscape of healthcare services in India.

🔻 Foreign investors sell big in Indian markets

Foreign portfolio investors (FPIs) have turned net sellers in Indian markets, offloading ₹6,304 crores in equities and ₹10,640 crores in debt this month, totalling ₹13,144 crore outflow. The surge in US bond yields, hitting 4.7%, triggers this trend as high yields attract foreign investors.

However, domestic investors absorbing equity sales is a positive, tempering FPI selling. Despite recent outflows, FPIs infused ₹35,098 crore in Indian equities in March 2024, indicating continued interest in the market.

BUSINESS

AdaniConneX Secures India's Largest Sustainability-Linked Financing

What happened

AdaniConneX, a joint venture equally owned by Adani Enterprises and EdgeConneX, has successfully secured India's largest sustainability-linked financing arrangement. The company announced this achievement in an official release, highlighting the raising of up to $1.44 billion.

The financing has an initial commitment of $875 million, with a feature to extend the commitment up to ₹1.44 billion. This transaction significantly boosts AdaniConneX's construction financing pool, which now stands at $1.65 billion, building upon the earlier facility of $213 million executed in June 2023.

Why it matters

This financing milestone underscores AdaniConneX's commitment to establishing sustainable and robust digital infrastructure, setting new industry benchmarks. 

• The joint venture's strategic focus on modern technologies and renewable energy solutions in upcoming data facilities aims to reduce ecological footprints while optimizing operational efficiency. 

• The involvement of prominent international banking partners like ING Bank N.V., Intesa Sanpaolo, KfW IPEX, and others reflects strong market confidence in AdaniConneX's vision and capabilities.
  
  

• AdaniConneX's plans to build nine data centres with a total capacity of 1 gigawatt by 2030 align with India's increasing digital services demand, highlighting the strategic significance of this financing arrangement.

Zoom out

AdaniConneX's successful securing of India's largest sustainability-linked financing not only showcases its financial strength but also underscores its commitment to sustainability and environmental stewardship in the digital infrastructure sector.

This achievement positions AdaniConneX as a key player in India's evolving digital landscape, poised to deliver world-class data centre solutions while driving innovation and setting new standards for the industry.

MIRCH MASALA

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