Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Weakness in European and Asian markets, especially a sharp drop in Japan's Nikkei index, dampened sentiment in Indian markets, leading investors to take profits in IT, banking, metals, and oil & gas stocks. The Indian equity indices ended lower on September 4, with the Sensex falling 202.80 points to 82,352.64 and the Nifty down 81.10 points to 25,198.70.

TOP STORIES

Credit Card Boom Set to Leave Debit Cards in the Slow Lane

What happened

India’s credit card market is gearing up for a big leap—set to double and hit 200 million cards by 2028-29, according to a PwC report. That’s right, the plastic in your wallet is multiplying like rabbits! Over the past five years, the credit card industry has already doubled its count, and with a 15% compound annual growth rate (CAGR), it’s just getting started. On the other hand, debit cards are taking a back seat as UPI (Unified Payments Interface) steals the show with its charm and zero Merchant Discount Rate (MDR).

Driving the news

This isn’t just about stacking up more shiny cards; it’s a sign of how Indians are flexing their financial muscles. Credit cards have become the star players for big purchases, with transaction volumes up by 22% and values soaring by 28%. New products and wider customer reach are fueling this growth spurt.

But while credit cards are enjoying their moment in the sun, debit cards are getting left in the dust. In FY23-24, debit card transactions nosedived by 33% in volume and 18% in value. The culprit? UPI’s effortless appeal and zero Merchant Discount Rate (MDR).

Not that easy

As India’s credit card market races toward 200 million by FY28-29, it’s clear that spending habits are evolving faster than you can swipe. With digital payments skyrocketing and expected to triple by 2028-29, the financial sector is anything but dull. The real challenge for banks and financial institutions? Keeping up with these fast-paced changes and making sure they don’t miss the next big swipe in this ever-evolving money game.

PAISON KA KHEL

CapitaLand makes a ₹90,200 crore bet on India

Singapore’s CapitaLand Investment (CLI) is ready to give India’s real estate market a serious upgrade, with plans to splash over ₹90,200 crore by 2028. Already managing ₹45,000 crore here, CLI is doubling down, aiming to hit a whopping $14.8 billion in funds. Why? India’s booming demand for top-notch real estate is too good to pass up. And they’re not just sticking to bricks and mortar—they’re eyeing renewable energy and private real estate credit too. 

Canara Bank secures $300 million in global bond 

Canara Bank has added another feather to its cap by raising $300 million through its IFSC Banking Unit at Gandhinagar. These bonds, maturing in five years, come with a 4.896% coupon rate, paid semi-annually—because who doesn’t love getting paid twice a year? The funds will be used for general corporate purposes, or as we like to call it, "keeping the lights on."

TOP STORIES

Swiggy serves up a leaner FY24

What happened

Swiggy is on a mission to shed some weight—financially speaking. The food delivery giant has trimmed its FY24 losses by a whopping 43%, bringing them down to ₹2,350 crore. How? By riding the wave of its booming food delivery and Instamart businesses. Swiggy’s revenue surged by 36% to ₹11,247 crore, with a gross order value (GOV) of ₹35,000 crore, thanks to its 14.3 million monthly users. Food delivery took the biggest slice of the pie, contributing 70% to the GOV, while Instamart served up a solid 23%.

Why it matters

Swiggy isn’t just playing around; it’s setting the stage for a blockbuster IPO, hoping to raise up to $1.2 billion at a valuation of $15 billion. If successful, it’ll be one of the biggest IPOs India has seen this year. 

Swiggy’s game plan is to boost average order values with premium options and bigger baskets, which will lead to a 17% increase in total orders. Instamart, the quick commerce star of the show, more than doubled its revenue to ₹1,100 crore by expanding its dark store network and spreading its wings into new cities.

Zoom out

With Sebi expected to give the green light soon, Swiggy’s stock might just become the hottest item on the menu. And with new leadership shuffling in to steer the ship, Swiggy’s got all the ingredients for a successful public debut. So, while you’re waiting for your next meal, keep an eye on Swiggy—they’re serving up more than just biryani!

GLOBAL NAZARA

Local sodas fizz higher as Coke and Pepsi bubble down

Coca-Cola and PepsiCo are feeling the heat as local cola brands steal the show in Muslim-majority countries. With consumer boycotts targeting these global giants amid the Gaza conflict, homegrown favourites like Pakistan's Cola Next and Egypt's V7 are bubbling up in popularity. In Egypt, Coke's sales have tanked, while V7's exports have soared threefold. Pakistan's Cola Next has skyrocketed from a 2.5% market share to 12%. Even Coca-Cola had to retract a misjudged ad in Bangladesh. 

U.S. Steel's future hangs on Nippon deal

U.S. Steel is in hot water as its $14.9 billion deal with Nippon Steel hangs in the balance. CEO David Burritt has warned that if the deal collapses, U.S. Steel might close some mills and move its headquarters out of Pittsburgh. The nearly $3 billion investment Nippon promised for the company's ageing mills is critical for staying competitive and keeping jobs intact. 

TOP STORIES

India's Beauty Industry Set for a Stunning $34 Billion Makeup

What happened

India's beauty and personal care (BPC) market is on a dazzling upward trajectory, according to a recent report by Nykaa. The market, currently valued at $20 billion, is expected to hit a stunning $34 billion by 2028, growing at a rate of 10-11% annually. This growth far outpaces global competitors like China and the U.S., who are barely managing half that pace. 

The rapid expansion is fueled by rising disposable incomes, the influence of social media, and the unstoppable march of e-commerce.

Why it matters?

With 520-560 million social media users as of 2023, beauty trends are spreading like wildfire, creating a surge in demand for premium products. E-commerce, set to account for 33% of BPC sales by 2028, is making luxury accessible even in the remotest corners of the country. Premium products are also making their mark, with non-metro cities emerging as hotspots for beauty enthusiasts.

Non-metro cities, often overlooked, are now the new gold mines, contributing 60% of Nykaa’s prestige brand sales. And with the average Indian spending just $15 on beauty products annually, there’s massive room for growth—expect that number to climb to $50 by 2028. 

The final touch

Gen Z and young millennials are leading the charge. They’re not just buying kajal and lipstick anymore; their beauty baskets are expanding, thanks to the influence of social media and new product innovations. Global brands are betting big on India, and for good reason. Even global beauty giants like Charlotte Tilbury, YSL, and Dior have taken notice, entering the Indian market with high hopes.

With the fastest-growing BPC market and the lowest per capita spend, the potential is enormous.

MIRCH MASALA

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