Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On May 31, Indian benchmark indices ended marginally higher after a volatile session, with the Sensex rising by 75 points (0.10%) to close at 73,961. Meanwhile, the Nifty gained 42 points (0.19%), finishing at 22,530.

BUSINESS

Godrej Leads ₹1.17 Lakh Crore Sales Surge in FY24

What happened

In the fiscal year 2023-24, 18 major listed real estate developers in India sold properties worth an impressive ₹1.17 lakh crore . Godrej Properties led the pack with sales bookings totalling ₹22,527 crores, cementing its position as the top player in the market. Prestige Estates Projects and DLF followed closely, posting sales bookings of ₹21,040 crore and ₹14,778 crore, respectively. According to regulatory filings, these developers collectively saw a 33% increase in sales compared to the previous year’s ₹88,000 crore.

Why it matters

The uptick in sales bookings highlights the robust recovery of the Indian real estate market post-COVID. The pandemic has reshaped consumer preferences, with a noticeable shift towards homeownership and a preference for reputable developers. Godrej Properties' leading sales figures, alongside Prestige Estates and DLF's strong performances, underscore the market's confidence in established brands with a proven track record.

This trend is further evident with newcomers like Signature Global, which more than doubled its sales bookings to ₹7,270 crore within a year of being listed. The surge in sales also reflects a broader industry trend where homebuyers are increasingly cautious, opting for developers with reliable delivery records to avoid the pitfalls experienced by those stuck with defaulting builders.

Zoom out

The real estate sector's remarkable performance in FY24, particularly in the residential and luxury segments, speaks of a resilient market responding to evolving consumer demands. Major players like Godrej Properties, Prestige Estates, and DLF are capitalising on this momentum, reinforcing their market leadership.

BIG MONEY MOVES

Elon Musk faces $7.5 billion insider trading lawsuit 

Tesla shareholder Michael Perry has filed a lawsuit against CEO Elon Musk, accusing him of insider trading. The lawsuit, filed in Delaware Chancery Court, claims Musk sold over $7.5 billion in Tesla shares in late 2022 before the company's disappointing Q4 results were public. Perry alleges that Musk improperly benefited by about $3 billion.

The lawsuit also accuses Tesla's directors of breaching their fiduciary duties by allowing the sale. This adds to Musk's legal woes, including a regulatory probe and opposition from shareholders regarding his $56 billion pay package.

Tata Capital invests $20 million in Orbicular Pharmaceutical

Tata Capital Healthcare Fund II (TCHF II) has invested $20 million in Hyderabad-based Orbicular Pharmaceutical Technologies for an undisclosed equity stake. Orbicular, which focuses on speciality and complex generics, will use the funds to accelerate its product development pipeline. The speciality generics market, valued at $60 billion, is rapidly growing due to the increasing demand for affordable alternatives to expensive branded medications. 

BUSINESS

Gas Trading Explodes Amid High Power Demand

What happened

In a spectacular surge, the Indian Gas Exchange (IGX) saw its gas trading volumes skyrocket in May, driven by the burgeoning power demand. According to IGX data, approximately 49 lakh mmBtu (million metric British thermal units) were traded so far this month.

This figure represents nearly a sixfold increase compared to the 8.5 lakh mmBtu traded in May last year. In comparison, April's trading volumes stood at 24.8 lakh mmBtu. 

Why it matters

This surge in gas trading volumes is crucial as it reflects a significant shift in the power sector dynamics. The Union government’s directive for gas-based power plants to operate at full capacity to ensure uninterrupted power availability is a major factor. The plant load factor (PLF) for gas-based plants, which measure capacity utilisation, increased to 21.4% in April 2024, up from 14.2% in April last year.

Historically, gas-based plants have played a minor role in India's power sector due to high international gas prices. However, recent declines in these prices have sparked a newfound demand for gas, especially among power generators. The ongoing heatwave, with temperatures soaring above 50 degrees Celsius in places like Delhi and Rajasthan, has further driven up the power demand to record highs, hitting 250 GW.

Zoom out

As the southwest monsoon advances, cooling the heatwave and reducing power demand, the need for gas among power generators is expected to decrease. This seasonal shift may offer some relief, but the recent trends highlight the critical role that gas-based power plants are increasingly playing in India's energy space. 

BIG PICTURE

NMDC's iron ore production and sales take a hit 

India's largest iron ore miner, NMDC, experienced a significant decline in production and sales in May 2024. Production dropped by 37% to 2.34 million tonnes (MnT) from 3.71 MnT in May 2023. Similarly, sales fell by 22%, reaching 2.82 MnT compared to 3.62 MnT in the previous year.

For the April-May 2024 period, cumulative production decreased to 5.82 MnT from 7.22 MnT year-on-year, while sales declined to 6.35 MnT from 7.05 MnT. NMDC, which supplies about 20% of India's steel-making raw material, faces a challenging period ahead.

Wipro expands retail media offering with Cisco and AT&T

Wipro has expanded its retail capabilities with Wipro VisionEDGE+ , developed in collaboration with Cisco and AT&T, and leveraging Amazon Web Services (AWS). This enhanced platform aims to transform retail media networks. Wipro VisionEDGE+ offers an omni-channel platform for personalised in-store experiences and programmatic advertising.

Despite the rise of online shopping, 80% of all shopping still occurs in stores, providing key opportunities for brands to engage with consumers.

BUSINESS

Tata Group's GenAI Leap Propels Innovation and Efficiency

What happened

The Tata Group, under the leadership of Natarajan Chandrasekaran, is diving headfirst into the realm of generative artificial intelligence (GenAI). Chandrasekaran revealed at Tata Consultancy Services Ltd’s (TCS's) 29th annual general meeting (AGM) that the conglomerate is actively engaged in 100 GenAI projects. These initiatives are not just experiments but are already enhancing customer experience, boosting productivity, and improving efficiency across Tata's retail and manufacturing domains.

Why it matters

Chandrasekaran's address to shareholders highlighted the multifaceted applications of GenAI. In e-commerce, GenAI is revolutionising product catalogues, crafting conversational shopping experiences, and tailoring personalised offers. In the manufacturing sector, GenAI is empowering shopfloor workers to troubleshoot complex equipment by communicating in their native languages, thus significantly augmenting productivity.

The rapid advancement and adoption of GenAI by Tata Group exemplify the company's commitment to staying at the forefront of technological innovation . As GenAI continues to reshape industries and redefine business paradigms, Tata's strategic investment in AI-driven initiatives positions it favourably to capitalise on emerging opportunities

Zoom out

TCS stands out as the sole homegrown IT services firm that has shared a tangible metric to measure the rise of GenAI. During its fourth-quarter and full-year earnings announcement in April 2024, TCS disclosed that its GenAI projects were valued at a substantial $900 million in the previous fiscal year.

Furthermore, TCS's financial contributions to Tata Sons underscore its significance within the conglomerate. With dividends and a share buyback totalling ₹33,174 crore in FY24, TCS has emerged as the crown jewel for Tata.

MIRCH MASALA

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