Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On Thursday, both Sensex and Nifty began the day positively, following global cues, and as the session advanced, the indices sustained their upward momentum. Gold reached a new record high, driven by robust momentum fueled largely by anticipations of US monetary easing.

BUSINESS

Flipkart Set to Enter the Quick Commerce Market

What Happened

In a strategic move, Flipkart, India's e-commerce behemoth, is gearing up to dive into the quick commerce sector, aiming for a 10-15-minute delivery window in a dozen cities within the next six to eight weeks. The company is silently constructing a network of dark stores, strategically positioned in key cities, including Bengaluru, Delhi (NCR), and Hyderabad, as part of its quick commerce game plan.

Why It Matters

This venture aligns with industry expectations that quick commerce is poised to overshadow traditional e-commerce in India. The potential market size for quick commerce in the country is a staggering $45 billion, as per a 2022 Redseer report.

• The resilience demonstrated by players like Zomato’s Blinkit, Swiggy’s Instamart, and Zepto has convinced investors that quick commerce is not just a passing trend.

• Zepto, following a unicorn round, and the notable turnarounds of Blinkit (formerly Grofers) and Swiggy Instamart highlight the robust growth and profitability achievable in this sector. 
  
  

• Blinkit's impressive daily order volume of 6 lakh, coupled with Swiggy Instamart and Zepto's significant figures, signifies a growing demand for quick commerce.

• Flipkart aims to outshine its competitors by offering a broader catalogue, spanning FMCG, groceries, daily essentials, electronics, and fashion.

Industry analysts predict that Flipkart's strategic focus on diverse product categories, coupled with its substantial investments to enhance delivery capabilities, positions the company to capture a significant share of the quick commerce market. 

Zoom out

As Flipkart joins the quick commerce race, the competition intensifies in a sector where players like Blinkit, Swiggy Instamart, and Zepto have already gained substantial ground. The market dynamics, however, raise questions about the sustainability of numerous players in the long run.

BIG MONEY MOVES

IndiGo co-founder Rakesh Gangwal plans $450 million stake sale

Rakesh Gangwal, co-founder of IndiGo's parent company Interglobe Aviation, plans to sell a 3.3% stake worth around $450 million. The offer floor price is set at Rs 2,925 per share, with a 5.% discount. Morgan Stanley, JP Morgan, and Goldman Sachs are advising Gangwal. He and his family trust own about 25% of the company.

Gangwal previously sold stakes in phases, with the latest being in August 2023. The stock has seen a 25% increase in the past six months. This move follows KKR's significant exit from Max Healthcare in August 2022.

Suzlon sparks 5% surge with 72.45 MW wind project win from Juniper Green Energy

Suzlon's shares surged 5% as the renewable energy giant secured a 72.45 MW wind power project order from Juniper Green Energy. The project in Gujarat involves installing 23 wind turbine generators with a capacity of 3.15 MW each. Suzlon will handle equipment supply, project execution, and post-commissioning operations and maintenance.

JP Chalasani, Suzlon Group's CEO, expressed delight over the third order from Juniper Green Energy in a few months. The move aligns with reports of the government contemplating reverse auctions for wind power capacity.

BUSINESS

RBI's Credit Card Shakeup: More Choices, Less Restraint for Customers

What Happened

Reserve Bank of India (RBI) has directed banks to empower credit card customers with the freedom to choose from multiple networks during card issuance. This means the days of being stuck with a predetermined card network are over. Customers can now pick from options like Visa, Mastercard, and others right from the get-go.

The RBI also threw down the gauntlet, telling credit card issuers to steer clear of any deals that limit customers from hopping between different networks. Existing cardholders can exercise this newfound liberty during their next renewal.

Why It Matters

The RBI's move is a win for consumer choice and breaks the shackles of restrictive agreements between card networks and issuers. This decision brings us one step closer to credit card portability, a vision championed by the RBI. Banks are welcoming the change, acknowledging that it opens up a world of options for customers.

Mastercard, in a statement, applauded the regulator's efforts to enhance cardholder choice. The RBI's directive becomes compulsory six months from March 6, giving the industry time to adapt. However, it excludes issuers with fewer than 10 lakh active cards and those issuing cards on their own authorized network.

Zoom Out

With this directive, the RBI is injecting a dose of freedom and flexibility into the credit card landscape. No longer bound by predetermined affiliations, customers can now curate their credit card experience. Banks are gearing up to provide a smorgasbord of choices, aligning with the RBI's vision of fostering healthy competition among networks.

Get ready for a credit card world where the power of choice rests firmly in the hands of the cardholder.

BIG PICTURE

India urges Japanese companies to embrace Make in India initiative

During the Raisina Roundtable in Tokyo, India's Foreign Minister S. Jaishankar urged Japanese companies to consider the "Make in India" initiative and explore exports from India to global markets. Despite robust Japanese investments in India, bilateral trade at $21.96 billion in 2022-23 falls short of reflecting the dynamic opportunities between the two nations.

Jaishankar emphasized the need for stronger ties beyond government levels and announced mutual efforts to adapt to evolving geopolitical and economic trends. India and Japan also plan development partnerships in third countries.

Karnataka Forges Global AI Hub with World Economic Forum Partnership

The Karnataka state government and the World Economic Forum (WEF) have unveiled plans for an advanced AI center in Bengaluru. Solidifying their collaboration on February 29, the initiative aims to position Karnataka as a global AI hub. The center's goals include fostering industry-academia partnerships, supporting AI startups, and addressing global challenges through innovative AI solutions.

With Bengaluru already recognized among the top five AI cities worldwide, this strategic move enhances Karnataka's prominence in AI innovation and its potential for economic growth.

BUSINESS

Central Government Employees Rejoice as Dearness Allowance Soars to 50%!

What happened

The Union cabinet has given the green light for a 4% hike in Dearness Allowance (DA) and Dearness Relief (DR) effective from January 1, 2024. That means more moolah in the pockets of about 49.18 lakh Central Government employees and cheers for 67.95 lakh pensioners.

Why it matters

Post this financial facelift, the combined impact on the government's wallet will be a whopping ₹12,868.72 crore per annum. This financial injection isn't just a statistic; it directly benefits a massive workforce, encompassing around 49.18 lakh Central Government employees and 67.95 lakh pensioners.

Transport allowance, canteen allowance, deputation allowance, and other perks are set for a 25% boost. House Rent Allowance is scaling up from 27%, 19%, and 9% to 30%, 20%, and 10%, respectively. The perks don't stop there – benefits under gratuity are getting a 25% lift, with a new cap at Rs 25 lakh.

Zoom out

This isn't just about numbers on paper. It's about recognizing the hard work of Central Government employees and pensioners and ensuring their financial well-being. The government's move aligns with the recommendations of the 7th Central Pay Commission, offering not just a salary increase but a series of financial boosts across the board.

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