Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On September 6, Indian equity indices weakened, with the Sensex falling by 1,017.23 points to 81,183.93 and the Nifty dropping 292.90 points to 24,852.20. The market decline was driven by weak global cues, with significant losses in the banking and energy sectors.

TOP STORIES

NBFCs Cash In on Study Abroad Dreams

What’s happening

Education loans for overseas studies are booming, with non-banking financial companies (NBFCs) leading the charge. CRISIL ratings predicts a whopping 40-45% rise in education loan assets, which could surpass ₹60,000 crore by the end of this fiscal year.

NBFCs have seen explosive growth—80% in FY23 and another 70% in FY24, with their education loan assets now at ₹43,000 crore as of March 2024. While the US, UK, and Canada are the top destinations, NBFCs have cut their exposure to Canada due to regulatory changes.

The backstory

Over 13.4 lakh Indian students are studying abroad, but only 10% are financed by NBFCs—leaving massive room for growth. Plus, the demand is only growing as tuition fees, inflation, and living expenses keep soaring. NBFCs are managing the demand well, with delinquency rates on education loans at a minuscule 0.2%—far lower than what traditional banks are dealing with.

Interestingly, 35-45% of these loans are getting prepaid before the official moratorium ends, proving that students are eager to clear their debts fast.

Zoom out

Education loans are proving to be a goldmine for NBFCs, offering rapid growth with minimal credit risk. As global economies face uncertainty, these companies have remained nimble, adapting to changing market conditions while still serving a growing pool of students. The real challenge, however, will come when the current wave of loans exits the moratorium period. For now, though, NBFCs are acing the test—while students juggle tuition fees and future paychecks!

PAISON KA KHEL

Shriram Finance plans to bag $1 billion abroad  

Shriram Finance is gearing up to grab $1 billion (about ₹8,300 crore) from overseas in the next six months. First, they’ll scoop up $300 million by October, and the rest will follow before the financial year wraps up. They're getting a little help from their friends, like the Asian Development Bank and the U.S. Development Finance Corporation.

With assets at a whopping ₹2.33 lakh crore and loan growth aiming for 16%, Shriram isn’t slowing down. Despite RBI’s stricter rules, their strong credit rating keeps them comfy while they aim for big bucks!

Tata Power powers up local suppliers with ₹11,481 crore 

Tata Power's Odisha ventures are spreading the wealth, awarding ₹11,481 crore in contracts to local suppliers over the past three years. Of this, ₹8,690 crore went to MSMEs, while ₹2,791 crore was given to non-MSMEs. From supplying transformers to reading meters, the company has partnered with 6,645 local vendors, emphasising the hiring of local talent. The service sector alone grabbed ₹7,560 crore in contracts, while materials supply secured ₹3,921 crore. 

TOP STORIES

Zepto’s 10x Festive Dash!

What happened?

Zepto, the quick-commerce whiz, is riding high this Ganesh Chaturthi with a whopping 10x increase in Ganesh idol sales compared to last year. But that's not all. Ready-made modaks are flying off the shelves at a rate of 1,500 per hour, while modak moulds hold steady at 500 per hour. In major cities, Bengaluru takes the cake (or modak, in this case) with 25% of sweet orders, followed by Mumbai (18%), Delhi NCR (17%), Hyderabad (12%), and Chennai (6%).

A full view

Aside from satisfying sweet tooths across India, Zepto's eco-conscious approach is turning heads. They’ve partnered with Svasti to deliver 10,000 eco-friendly Ganesh idols, supporting over 100 artisans in the process. The demand for sustainable solutions is clearly growing, and Zepto is tapping into it.

Plus, sweets are seeing a surge: modaks have grown 5x, laddoos 2.5x, and mithai orders have doubled. Even pooja essentials are showing a 2x increase in demand, proving that customers want convenience without compromising tradition.

Zoom out

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has mastered the art of fast delivery—whether it’s eco-friendly idols or sweet treats. This Ganesh Chaturthi, they’ve proven that tradition can meet convenience without missing a beat.

Also, Decathlon has partnered with Zepto for faster delivery of sports and fitness products in 16 cities, including Mumbai, Delhi-NCR, Bengaluru, Chennai, and Hyderabad.

GLOBAL NAZARA

Greece tackles overtourism with new fees and rental bans

Greece is cracking down on overtourism—because apparently, even paradise can get too crowded. With a record 36.1 million tourists flocking in 2023 and arrivals up 16% in the first half of 2024, Prime Minister Kyriakos Mitsotakis is rolling out new rules. Cruise passengers? Yep, they’ll now pay a fee just for gracing Greek shores, especially at popular spots like Santorini and Mykonos. Expect a higher lodging tax too, from April to October—peak selfie season!

To top it off, short-term rentals are taking a breather. Athens will ban new listings for a year, while long-term landlords get tax breaks.

From AI boom to $406 billion bust

Nvidia's week has been anything but chill, shedding a staggering $406 billion in value. Over two weeks, the AI giant's market worth plummeted by a fifth, as jitters over the US economy and AI hype hit hard. With shares swinging wildly between $90.69 and $131.26, Nvidia's volatility is four times that of Microsoft and double that of Bitcoin. Anyway, despite the dramatic dip, the company’s stock has still more than doubled this year. 

TOP STORIES

Jio Financial partners with BlackRock to launch new investment venture

What happened

Jio Financial Services, the non-banking arm of Reliance Industries, has teamed up with BlackRock Advisors Singapore to create a new entity, Jio BlackRock Investment Advisers Private Limited. This joint venture, incorporated on September 6, 2024, is set to focus on investment advisory services, pending regulatory approvals.

Driving the news

By joining forces with BlackRock—one of the largest asset management firms in the world—Jio is poised to revolutionise India’s fintech market. With a rapidly growing retail lending and payments sector, India is a goldmine, and Jio’s not missing the opportunity. This venture also ties neatly into Reliance’s broader digital and retail business, setting up a full-scale financial ecosystem. 

• Notably, Jio Financial’s expansion comes after a drop in net profit by 6% in the June 2024 quarter (₹313 crore versus ₹332 crore a year ago). 
  
  

• Interest income fell by 20%, while expenses shot up—mostly due to a threefold jump in staff costs (₹79 crore from ₹54 crore). 
  

Final words

Jio’s initial investment of ₹3 crore, purchasing 30 lakh equity shares, shows its commitment, but the real kicker is the approval to increase its foreign investment limit to 49%, from the current 17.55%. This sets the stage for serious global involvement and positions Jio Financial for major growth in India’s fintech scene. While profits may have dipped slightly, this partnership could be just what Jio needs to drive forward into a new era of dominance.

MIRCH MASALA

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