Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Economic growth projections are slowing, and caution ahead of Q3 numbers added volatility to the market. However, the market rebounded from the day’s low as investors accumulated beaten-down blue-chip stocks, anticipating government reforms in the upcoming budget to boost the economy.

TOP STORIES

Rising Steel Demand Sparks Optimism in India

What Happened

India’s steel demand is building momentum like never before, leaving global economies in the dust with an estimated growth of 8-9% in 2025, as per CRISIL. Meanwhile, global demand is barely moving at 0.5-1.5%, much like a treadmill set to slow-mo. 

On the flip side, imports are flooding in—up by a hefty 24.5% in 2024—while exports took a nosedive, dropping 6.4%. Domestic producers are feeling the heat as oversupply and competitive pricing crash their party, with HRC prices slipping 9%.

* HRC stands for Hot Rolled Coil

Why It Matters

Steel isn’t just about girders and beams—it’s the backbone of economic growth. India’s demand surge signals a booming infrastructure push, but cheap imports are the unwanted gatecrashers.

HRC imports from China are up 28-fold! China practically shipped us a year’s worth of steel in one go, with Japan and Vietnam close on its heels.

The proposed safeguard duty could be the superhero steel mills need, offering a 4-6% price bump. But here’s the catch: with mills ramping up production and competing for market share, prices might not rise enough to light up boardrooms.  

Conclusion

India’s 2025 steel saga is part triumph, part chaos. Demand is roaring, but prices are playing hard to get, thanks to a flood of imports and global competition. The safeguard duty might give local players some breathing room if it arrives on time and isn’t just a band-aid solution. The real challenge will be balancing supply and demand without turning the market into a steel soap opera. 

PAISON KA KHEL

Microsoft’s massive $3 billion AI push in India

Microsoft is all-in on India, investing a whopping $3 billion in cloud and AI over the next two years. CEO Satya Nadella revealed plans to build new data centres and launch the fourth one by 2026.

But that’s not all! Microsoft is also stepping up its AI training game, aiming to teach 10 million people over the next five years. The company’s already exceeded its 2024 target, training 2.4 million individuals (65% of them women!).  

India’s electric car market accelerates by 20% in 2024

In 2024, India’s electric car market surged by 20%, hitting nearly 100,000 units sold—up from 82,688 the previous year. Tata Motors led the way, selling 61,496 electric cars, although their market share dipped from 73% to 62%. 

Despite concerns about charging infrastructure and battery life, electric vehicles now account for 2.4% of total sales, up from 2.1% in 2023. JSW MG Motor had a spectacular 125% sales increase, thanks to the Windsor SUV and innovative battery rental options.

TOP STORIES

Heineken’s Indian Operations Hit a Snag

What Happened

United Breweries, the beer giant behind Heineken and Kingfisher, has hit a pause on beer supplies to Telangana Beverages Corporation Ltd. (TGBCL), a state-run monopoly controlling liquor sales in Telangana. This bold move comes after United Breweries faced severe operating losses for the past two years.

Despite efforts to raise product prices, the company has seen no price increases for its products from TGBCL, leaving it with unsustainable losses. 

Why It Matters

The company also faces overdue payments, adding fuel to the fire. This disruption affects the supply of some of India’s most popular beer brands in one of the country’s largest beer-consuming states.

This decision is a major setback for United Breweries and Telangana’s beer market, with the company controlling 70% of the state’s market share. Despite having a near-monopoly, the company’s inability to raise prices for four years amidst inflation pressures has eroded profits.

The brewing giant’s move highlights bigger issues in India’s liquor industry, with nearly ₹4,000 crore in delayed payments and concerns over the state’s control affecting financial stability.

Zoom out

United Breweries’ move sends a strong message to the Telangana government about the financial strain caused by delayed payments and price stagnation. While analysts don’t expect a major hit to United Breweries’ profit, a temporary loss in market share seems inevitable.

The situation shows the conflict between government control and the need for businesses to be profitable, putting both consumers and companies in a difficult position. The coming months could be crucial in determining whether this situation leads to broader changes in the state’s liquor policies.

GLOBAL NAZARA

US targets Tencent and CATL in latest Chinese military list

The US has added Tencent and CATL to its list of companies linked to China’s military, heightening tensions between the two economic giants. The Department of Defense’s latest update brings the total number of firms on the list to 134. 

Both Tencent, the company behind PUBG Mobile, and CATL, a leading battery maker, have strongly denied any military involvement. The inclusion, however, pressures US companies dealing with them and could lead to future sanctions. As a result, Tencent’s shares dropped 7%, while CATL saw a 4% decline. 

Pound dips as UK borrowing costs hit 2008 crisis levels

The pound has dropped to its lowest point in nine months, hitting $1.233 against the dollar, as UK borrowing costs soar to their highest levels since the 2008 financial crisis. The surge in borrowing costs is largely due to increasing government debt, which could lead to higher taxes or spending cuts. 

With 30-year borrowing costs at a 27-year high, concerns about the economy are rising. Economists warn that these costs might derail investment plans, while opposition parties criticize the government’s fiscal approach. 

TOP STORIES

Is the Wireless Revolution Running Out of Steam?

What Happened

For the first time since 2022, India’s wireless data usage per subscriber has dipped. According to the Telecom Regulatory Authority of India (TRAI), the average monthly data usage dropped slightly from 21.30 GB to 21.10 GB between July and September 2024, marking a 0.93% decrease. 

Overall wireless data usage also saw a marginal drop of 0.02%, falling from 56,183 PB to 56,174 PB. Interestingly, while 2G and 5G data usage increased by 40% and 12%, respectively, 3G and 4G usage experienced declines.  

*“PB” stands for Petabyte(1,048,576 Gigabytes)

Why It Matters

This decline is noteworthy for several reasons. India, with its massive mobile user base, has seen exponential growth in data usage over the past decade. So, even a small dip like this raises questions. 

Some experts attribute the reduction to recent price hikes, which might be nudging consumers to cut back on data usage. Others, like telecom analyst Mahesh Uppal, highlight the growing trend of wireline data usage, particularly among heavy users who are switching to fiber. The shift to fiber could be a game-changer in the data consumption game. 

The future ahead

This drop is also a reflection of a potential saturation point in wireless data usage, which might signal a shift in the market dynamics, especially as wireless services reach near-peak demand.

Even if the decrease in wireless data usage may be a temporary blip, it brings important considerations for telecom companies. With wireline data usage growing steadily and subscriber numbers shifting, operators may face a future where data demand becomes more inelastic.

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