Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, December 31, 2024. This is Nelson John, let's get started.

The markets regulator’s crackdown on futures and options trading is already showing significant impact. Ram Sahgal reports a nearly 25% month-on-month decline in index options turnover in November, with retail and proprietary traders accounting for about 75% of this drop. Stricter curbs, including larger contract sizes, are set to take effect in January, likely reducing volumes further in the new year. Sebi implemented these measures in response to widespread losses incurred by retail investors in F&O trading over the past couple of years.

Adani Enterprises announced plans to sell its 43.94% stake in Adani Wilmar to joint venture partner Wilmar International for over $2 billion. Nehal Chaliawala reports that the move aims to address liquidity concerns as the company refocuses on core business investments. Adani Wilmar, with annual revenue nearing ₹50,000 crore, will also undergo a name change. Additionally, 12.87% of its stake will be sold through an offer for sale to meet public shareholding requirements. This decision comes amid speculation about Adani's exit from non-core businesses following allegations of fraud that have affected the group's financial stability.

In a report released on Monday, the Reserve Bank of India flagged concerns about stress in unsecured retail credit spilling over to larger loans, such as housing and auto loans. Shayan Ghosh reports that nearly half of personal loan borrowers also have outstanding secured loans. According to the RBI’s Financial Stability Report, defaults in unsecured loans could prompt lenders to classify other loans held by the same borrower as non-performing. While the gross non-performing asset (GNPA) ratio for unsecured loans currently stands at 1.7%, the RBI cautioned that rising write-offs could be masking the true extent of asset quality risks.

According to the Chinese zodiac, 2025 will be the Year of the Snake—symbolizing flexibility, growth, and change. Devina Sengupta writes that India Inc. is set to experience all these dynamics, with employees expected to switch jobs at a faster pace. Companies will likely go beyond salary hikes to focus on upskilling initiatives. While rural hiring in the FMCG sector is projected to rise by 10%, weak consumer demand, driven by inflation, may dampen growth. High demand for talent is anticipated in sectors like AI, data science, and digital transformation. Compensation increases are forecasted to average around 9.5%, underscoring the competitive landscape for skilled professionals.

During the 2015 Paris Agreement, India committed to achieving net-zero emissions by 2070. Among India Inc., the targets vary significantly. Of the Nifty50 companies, 19 have yet to set net-zero or carbon-neutral goals, 20 have set net-zero targets with a median year of 2040, and 11 aim for carbon neutrality by 2032. Nehal Chaliawala reports that Infosys was the first to achieve carbon neutrality in 2020 and plans to reach net-zero by 2040. His analysis highlights that the IT sector leads in climate commitments, while financial services have the highest proportion of companies without stated goals. Other sectors, such as automotive and pharmaceuticals, also lag behind with unclear climate targets.

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