Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Sensex ended a volatile session marginally lower, with the Nifty closing below 24,150. Analysts pointed to profit-taking and concerns over foreign investment, compounded by weak corporate earnings, as reasons for the decline.

TOP STORIES

India Fuels EU with Russian Oil Loophole

What Happened

India’s fuel exports to the European Union surged by 58% in the first three quarters of 2024, largely due to refining discounted Russian crude oil. India, now the second-largest buyer of Russian crude, saw imports rise from under 1% of total crude before the Ukraine invasion to almost 40% of its oil purchases. 

Why It Matters

This trend exposes a major gap in EU sanctions. The European Union’s reliance on fuels refined from Russian crude indirectly supports Russian oil revenues, effectively undermining the sanctions’ goals. 

• Between December 2022 and October 2024, about a third of India’s fuel exports to sanctioning countries—worth €6.16 billion—originated from Russian crude. 
  
  

• CREA reported that EU price-cap coalition countries imported €8.5 billion of oil products linked to Russian crude from December 2022 to December 2023.
  

These imports equate to 68% of the EU’s pledged aid to Ukraine for 2024-2027, revealing how this loophole dilutes the sanctions’ impact.

Zoom Out

The EU’s demand for refined fuels has created a “shadow fleet” of tankers transporting Russian oil, bypassing price caps. 

• In October 2024, 83% of Russia’s seaborne crude oil was shipped by “shadow” tankers, which operate outside of price cap policies.

PAISON KA KHEL

Singapore Airlines to inject ₹3,195 crore into Air India

Singapore Airlines is making a fresh ₹3,195 crore investment in Air India as its merger with Vistara reaches completion today. With this move, Singapore Airlines will secure a 25.1% stake in the expanded Air India. The deal involves Singapore Airlines bringing ₹2,058.5 crore in cash, alongside its 49% share in Vistara, to solidify its position in the Indian aviation market.

ITC’s ₹20,000 crore boost for India’s future

ITC is rolling out the red carpet for its next phase, investing a massive ₹20,000 crore to create eight state-of-the-art facilities. From fancy food plants to eco-friendly packaging units, these new facilities span across ITC’s FMCG, agriculture and packaging secto₹. Part of its ITC Next strategy, this investment aligns with India’s growth wave, supported by government incentives and a push for digital and physical infrastructure.

TOP STORIES

Asian Paints Sees Sharp Profit Drop 

What happened

Asian Paints has reported a significant slump in its Q2FY25 results, with net profit plunging 42.4% year-on-year to ₹694.64 crore, down from ₹1,205.42 crore last year. This drop in profit came alongside a 5.3% decline in revenue, which fell to ₹8,003.02 crore from ₹8,451.93 crore in the same quarter last year. 

Driving the news

The company struggled with weak demand in the paint industry, particularly in its Domestic Decorative Coatings segment, where sales volumes dipped slightly. Heavy rains and floods in certain regions only added to the sluggish consumer sentiment, making things worse for sales.

On top of that, operating margins took a hit from price cuts made last year, rising input costs and higher selling expenses. It’s been a tough quarter, but the company is hoping that recent price hikes and lower raw material costs might bring some relief in the months ahead.

Zoom out

The drop in profit highlights the tough times the paint industry is currently facing, largely driven by a slowdown in demand. This trend could point to even more challenges for other companies in the sector. Asian Paints saw its profit before tax (PBDIT) decline by 27.8%, with its PBDIT margin shrinking from 20.3% last year to just 15.5%. 

GLOBAL NAZARA

Apple enters India with its first R&D subsidiary

Apple has set up its first Indian subsidiary, Apple Operations India, marking a big step in India. This new R&D-focused unit will handle research, design, testing and support third-party manufacturers. With around ₹38.2 crore in work-in-progress investments and ₹36.8 crore in assets, Apple’s serious about deepening its presence beyond just assembly and sales. 

Unlike its traditional bases in the U.S., China and Germany, this expansion in India reflects its faith in local talent—now over 17,000 developers strong. 

SP group faces setback as PFC declines ₹20,000-crore loan

The Power Finance Corporation (PFC) just turned down Shapoorji Pallonji Group’s (SP) hefty ₹20,000-crore loan proposal, halting SP’s planned debt repayment strategy. After nearly a year of discussions, PFC decided against entering new sectors with such high exposure, leaving SP to look for other financing routes.

TOP STORIES

HDFC Capital and Runwal Form ₹1,150 Crore Partnership

What Happened?

HDFC Capital has teamed up with Runwal Enterprises, setting the stage for a ₹1,150 crore platform aimed at creating affordable, mid-income and upper mid-income housing in Mumbai. The partnership, a big win for both, aligns with India’s ‘Housing for All’ initiative. 

With HDFC Capital’s backing, Runwal plans to roll out multiple sustainable projects, tapping into the growing demand for quality yet accessible housing options.

Why It Matters

This collaboration offers several advantages. First, it provides Runwal with a strong capital flow, allowing for expansion across multiple strategic areas in MMR. Runwal has a proven track record, with 65 completed projects in residential, commercial and retail spaces, making them a reliable partner for HDFC’s long-term vision.

HDFC Capital’s investment includes both equity and structured debt, supporting land acquisition and working capital for projects. The firm has allocated $4.2 billion towards affordable and mid-income housing, reinforcing its focus on sustainable housing solutions in India’s rapidly growing urban areas.

Zoom out

The HDFC-Runwal deal shows a shift toward "platform deals" in India’s real estate sector, where institutional investors partner with local developers. This setup enables Runwal to scale operations while benefiting from HDFC’s financial strength.

• Also, HDFC Capital’s recent success with two projects in Dombivli and Kanjurmarg, where it invested ₹850 crore and exited with strong returns.

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