Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Investors are focusing more on defensive bets as the US 10-year bond yield stabilizes and foreign institutional investors bring optimism to the domestic market. However, high valuations and upcoming India Q1 FY25 GDP data could challenge this positive sentiment.

TOP STORIES

IndiGo Co-Founder Sells Stake But Airline Remains on High Altitude

What happened

Rakesh Gangwal, co-founder of IndiGo, is preparing to offload a significant chunk of his stake in the airline’s parent company, InterGlobe Aviation Ltd. He plans to sell up to 14.7 million shares , which represents a 3.8% stake, through a block deal valued at around $804 million. The shares are priced at ₹4,593 each, a 5.5% discount to the previous close. After this sale, the Gangwal-backed group's stake is expected to shrink from 19.38% to 15.58%. Major investment banks like JP Morgan India, Goldman Sachs, and Morgan Stanley India are handling the deal.

Why it matters?

Gangwal’s gradual stake reduction has been ongoing since he resigned from IndiGo's board in February 2022. The move signals a continued shift in the ownership structure of India’s largest domestic airline, which currently dominates with a 62% market share.

This sale follows a series of similar moves by Gangwal and his family, who have sold stakes worth thousands of crores in recent years. While IndiGo’s stock has been on an upward trajectory, gaining over 63% since the start of 2024, this sell-off could stir concerns among investors, even though the company’s fundamentals remain strong.

The final take

As Gangwal continues to reduce his stake, IndiGo’s other co-founder, Rahul Bhatia, remains firmly in control as the largest shareholder. IndiGo, with a fleet of over 380 aircraft and ambitious expansion plans, isn’t showing any signs of slowing down. So while Gangwal’s selling spree might raise eyebrows, it seems that both the airline and its stock are still flying high.

PAISON KA KHEL

Cabinet greenlights ₹6,456 crore railway expansion

The Union Cabinet just gave the green signal to three railway projects worth ₹6,456 crore , aiming to stretch India's railway network by 300 kilometres across Odisha, Jharkhand, West Bengal, and Chhattisgarh. These projects will construct 14 new stations and enhance connectivity for over 30 lakh people across 1,300 villages. 

It's like giving the Indian Railways a much-needed upgrade, ensuring those iron horses run smoother and faster. The plan also promises to transport essentials like coal, iron ore, and agriculture products more efficiently, adding 45 million tonnes of freight traffic annually.

Adani’s ₹3,500 crore cement project is more than just concrete

Adani Ports and Special Economic Zone Ltd (APSEZ) is investing ₹3,500 crore in Madhya Pradesh to set up a two million-tonne cement grinding unit in Guna and a propellant production facility in Shivpuri. These projects are expected to generate over 3,500 jobs and support India’s shift from a defence importer to an exporter.

With previous investments totalling ₹18,250 crore and 12,000 jobs created, Adani's latest ventures reinforce Madhya Pradesh's role as an emerging economic hub.

TOP STORIES

LG Plans Indian Market Debut to Push $75 Billion Goal

What happened

LG Electronics is contemplating an initial public offering (IPO) for its Indian subsidiary, aiming to capitalize on India’s booming stock market . This move is part of LG's broader strategy to hit a $75 billion revenue target by 2030. The South Korean company has engaged financial giants JP Morgan and Morgan Stanley to explore this possibility. 

The speculation around an Indian IPO has been swirling, and CEO William Cho recently confirmed that it's a serious consideration to rejuvenate LG’s long-standing electronics division.

Why it matters

An IPO in India comes at a time when the Indian capital markets are exceptionally active. With 189 companies set to raise $5.6 billion this year, the Indian stock exchange is buzzing. LG’s potential IPO would join this busy scene, coinciding with Hyundai Motor Co.'s own IPO plans to raise up to $3.5 billion. 

LG’s Indian operations have shown strong performance, with a 14% revenue increase and a 27% rise in net income this year. This potential IPO could not only bolster LG’s financial standing but also enhance its market presence in a rapidly growing economy.

Zoom out

The company’s strategic moves, including exploring new business models and expanding into subscription services and ad-supported streaming, reflect a forward-thinking approach. As LG prepares to potentially list on Indian exchanges, all eyes will be on how this move influences its growth.

GLOBAL NAZARA

ClearTax teams up with Microsoft: Filing taxes via WhatsApp?

ClearTax has teamed up with Microsoft to make tax filing a breeze for gig workers across India. Using Microsoft Azure's OpenAI Service, ClearTax has created a super user-friendly solution that lets workers file taxes via WhatsApp. And it’s catching on fast—98,000 gig workers have already used the service in just five weeks!

This isn’t just about easy tax payments. ClearTax is eyeing financial inclusion on a grand scale, planning to extend this service to employers to help blue-collar workers with tax filing and TDS refunds. 

Nvidia’s earnings: Will the AI giant keep the S&P 500 flying high?

Nvidia is about to face a major test, with analysts expecting its quarterly revenue to hit $29 billion—double what it made a year ago. Investors are jittery, with options markets predicting Nvidia’s stock could swing 10% either way, potentially moving $300 billion in market value. 

Nvidia’s AI-powered rise has helped the S&P 500 recover $4 trillion since early August, making it the market's pulse. But with concerns over its next-gen Blackwell chip, Wall Street will dissect every word from Nvidia’s earnings call.

TOP STORIES

Hyundai Powers Up with Hybrid Surge

What happened

Hyundai Motor Co. has shifted gears, announcing plans to double its hybrid car lineup while electric vehicle (EV) demand hits a speed bump. At its 2024 investor day, the automotive giant revealed that it will expand its hybrid models from compact and mid-size vehicles to include large and luxury options , bringing the total to 14. 

To sweeten the deal for investors, Hyundai also announced a ₩4 trillion (₹2,520 crore) share buyback and committed to a minimum annual dividend of ₩10,000 (₹630) per share. This news pumped up Hyundai’s stock, boosting it by 5.3% in Seoul trading.

Why It Matters

Hyundai’s pivot towards hybrids comes as the entire auto industry faces slowing demand for pure EVs. Competitors like Ford, Porsche, and Mercedes-Benz are also putting the brakes on their EV goals. While Tesla struggles to match its sales pace from last year, Hyundai is taking a different route by banking on hybrids and extended-range EVs (EREVs) to bridge the gap until EV demand bounces back.

The company’s hybrid sales, which already make up 12% of total vehicle sales, have driven profits to record highs. 

Conclusion

To ensure its batteries keep up with this ambitious plan, Hyundai aims to enhance battery performance by over 20% by 2030, using both nickel-cobalt-manganese (NCM) and more affordable lithium-iron-phosphate (LFP) batteries. With these advancements, Hyundai expects to achieve a 9-10% operating profit margin by 2027 and over 10% by 2030, making EVs just as profitable as traditional internal combustion engines (ICE) and hybrids.

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