Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, March 14, 2024. My name is Nelson John. Let's get started:

Wednesday witnessed a crash at Dalal Street. Facing headwinds from cautious sentiment in international markets and influenced by expectation of a delayed interest rate cut by the US Federal Reserve, Indian benchmark indices followed the lead of other Asian markets, ending the day with notable losses. Sensex fell more than 900 points to close 1.23 per cent in the red. Nifty was no better, the NSE index saw a fall of more than 1.5 per cent on Wednesday. 

The fall in Nifty and Sensex was the biggest single day fall since January this year. The broader market wasn't spared either, as both the Nifty Small Cap 250 and Nifty Mid-Cap 150 indices underwent their steepest one-day drops in over two years. The small cap index was dragged down by more than 5 per cent, while the mid cap index plummeted by 4.2 per cent. This market correction follows a rally in midcap and smallcap stocks. The small and mid cap wave has now been tempered by a regulatory crackdown from Sebi and RBI, raising investor concerns. Mint’s senior correspondent Dipti Sharma spoke to market experts and analysts to make sense of the bloodbath Dalal Street saw on Wednesday. Experts pointed to comments from regulators about overvaluation in the market, upcoming stress-test disclosures for small and midcap funds, and lower market liquidity as factors that contributed to the crash.

Smallcaps had a bad day at the bourses. It might get worse: the enforcement directorate seized the assets of several companies after it ascertained that they were party to a scam. Varun Sood and Ram Sahgal team up to investigate this scam, wherein trading entities were found to hold sizeable positions in smallcap stocks. ED has said that some of these players were involved in stock manipulation, and will charge them accordingly. Don't miss out on this fascinating story of the Mahadev betting scam.

In 2011, a powerful earthquake and Tsunami struck the coast of Japan and changed the course of nuclear energy. The tsunami’s impact resulted in electric grid failure and damaged nearly all the backup energy sources of the Fukushima nuclear power plant. Though no fatalities were reported, more than 160 thousand residents were evacuated. A tragedy of this scale, second only to the Chernobyl leak, raised doubts about the safety of nuclear energy. The demand for nuclear energy went down, dragging uranium demand with it. However, uranium seems to be back in demand, and so is nuclear energy. The prices for uranium have been above 90 dollars a pound for over a few months now. So, what’s driving the sudden increase in uranium demand? Rise in energy prices following Russia’s invasion of Ukraine, and nations commiting to move away from fossil fuels are some of the reasons. Mint’s Tina Edwin explains what’s behind the renewed interest in nuclear energy. 

India recently signed a trade deal with the India's deal with the European Free Trade Association. The bloc comprises Iceland, Norway, Liechtenstein and Switzerland. The deal may not drastically boost bilateral trade, given modest exports and imports outside of gold. However, its significance lies in EFTA's $100 billion investment commitment and the promise of creating 1 million jobs in India over 15 years. The move also reflects India's broader strategy to foster long-term economic relationships and support its ambition to become a global manufacturing hub. With ongoing trade negotiations with the EU and over 50 countries, India's proactive trade policy aims to secure easy market access and attract investments, underscoring the crucial role of strategic trade agreements in achieving its economic goals. But, is the trade deal enough for bolstering India’s ambitions of becoming a 30 trillion dollar economy? Mint’s senior editor N Madhavan explains why India needs to punch way above its weight when it comes to trade. 

What comes to mind when I say the word Bengaluru? For some it's the traffic, for others startups and tech. Those on social media know the city for its weather and cherry blossom season. But for those who’ve lived here for some time it's the lovely mix of culture, the most perfect masala dosa out there, and a bustling pub culture. It's the ‘livability’ of the city that has set it apart for decades. However, all that is changing. The city is undergoing an acute water shortage. Even high-end gated communities are unable to provide its residents with drinking water. With rapid concretisation and most of its water resources getting dried up, Bengaluru is facing one of its biggest challenges. The city largely depends on water from Cauvery, which is pumped from more than 100 kilometres away. The river supplies 1,460 million litres per day which is well short of the current demand—estimated at around 2,100 million litres per day. Mint’s Madhurima Nandy takes a deep dive into the water crisis staring Bengaluru in the face right now. In 2022, the city even saw its Outer Ring Road flooded during monsoon. 

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Show notes:

A day to forget for small-caps as markets plunge

Anatomy of a smallcap stock scam

Mint Explainer: What’s behind the renewed interest in nuclear power?

Why India must trade up to be a $30 tn economy

Lovely climate? Read this before you move to Bengaluru

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