A look at the June quarter earnings presents a mixed picture of India Inc. While commodity users bore the brunt of elevated raw material prices, commodity suppliers enjoyed abnormally high profits. Profit margins, however, squeezed across the board as corporates couldn’t pass on the entire increase in costs to consumers.  Analysis of about 1,940 companies, excluding financials, shows that while aggregate net profit rose from 1.41 trillion rupees to 1.58 trillion rupees on a year-on-year basis in Q1FY23, the aggregate profit margin contracted from 7.9% to 6%. Sequentially, net profit fell from 2.03 trillion rupees, and margin shrank from 8.3%. Within the Nifty50 universe, profits of the 31 Nifty companies, that had released their results till the end of July, rose 12% YoY, single-handedly driven by BFSI. If one were to exclude banks and financials, the profits would have declined 1% YoY. Analysts say unusually high inflation was the biggest sore point for earnings. Jitendra Upadhyay, Senior Research Analyst, Bonanza Portfolio, says high inflation and consequent price hikes have hit demand. Managements cautioned against demand slowdown. Certain sectors saw reduced growth guidance, he says. On its part, the Reserve Bank of India has hiked repo rate by 140 basis points, and cash reserve ratio by 40 bps so far in FY23; yet it has kept FY23 inflation estimate unchanged at 6.7% YoY. Market mavens say the status quo on inflation above the upper tolerance level of 6% entails risk of destabilising demand expectations. Overall, FY23 earnings have been downgraded by over 4% driven by aviation, metals and energy. Going forward, earnings growth will hinge on commodity prices. Vetri Subramaniam, Chief Investment Officer of UTI AMC, for instance, believes, “With the retreat in commodity prices, the worst of the margin pressure is behind us. Earnings estimates in sectors where volumes and pricing are sensitive to global growth trends could see challenges as concerns about growth.” Motilal Oswal, too, says, “Earnings miss by heavyweights Reliance Industries and Tata Motors led to aggregate earnings miss in Q1FY23. However, as the benefit of the recent moderation in commodity costs start accruing in the second half of fiscal 2023, we expect laggards of Q1 to contribute in growth.” Stock markets will be guided by global cues and stock-specific action today.

Let's start with J R D Tata and Ratan Tata. The Tatas’ business interest was diverse, though Jehangir Ratanji Dadabhoy Tata’s love for flying surpassed all else. A rare interview showed JRD telling host Rajiv Mehrotra that his biggest contribution as an industrialist was the creation of Air India. As India celebrates the 75th year of Independence, Tatas have Air India back with them once again. JRD’s successor, Ratan Tata, gave automobiles a new direction within the salt-to-software group: from Indica to Jaguar-Land Rover. And, the biggest corporate battle in India Inc played out in 2016 when Cyrus Mistry, then chairman of Tata Sons, was ousted in a boardroom coup overseen by Ratan Tata. Moving on, there's no way to talk about India Inc without delving into the role of the Ambanis. When Dhirubhai Ambani returned from Yemen in the late 1950s to set up a textile mill in India, not many had expected him to re-write the rules of the game. In 1977, Ambani listed his company — Reliance Industries, now India’s largest company in revenues. From thereon, Ambani was unstoppable. However, after Ambani died without a will in 2002, his sons fought a bitter legal battle over control of the flagship company. In 2005, the siblings signed a peace agreement. Since then, while Mukesh Ambani-led Reliance Industries has flourished, the businesses held by Anil Ambani went to bankruptcy court. The next big chapter in Reliance Industries is currently being written with Mukesh launching his succession plan at the centre of which is GenNext of the Ambanis: Akash, Isha and Anant. Now, let's take a trip down memory lane. Remember the iconic “Hamara Bajaj” tagline? Well, today, let's remember the industrialist behind it. From putting up a relentless fight against Licence Raj and giving millions of Indians an opportunity to own a two-wheeler to standing up to power, Rahul Bajaj led from the front. “Hamara Bajaj” came to be associated as much with the scooter as with the man riding it. Over the four decades that he helmed Bajaj Auto, he transformed it into a global manufacturing giant. Today, the business empire — comprising Bajaj Auto, Bajaj Finance, Bajaj Finserv, and Bajaj Holdings and Investment — boasts a combined market capitalisation of over 8.4 trillion rupees. Corporate India owes much to the man who never shied away from calling a spade a spade. With his death in February this year, at age 83, India Inc lost a doyen and the curtain fell on an era. Speaking of doyens, the roaring success of India's IT sector brings one name to mind, a business leader who has made an indelible impact on modern India. We are talking of N R Narayana Murthy, who is known as the “father of the Indian IT sector”. He founded Infosys in 1981, which became the first IT company from India to be listed on NASDAQ. It has grown to become a company with a market capitalisation of approximately 104.71 billion dollars. Murthy has received the Legion d’honneur from France, CBE from Britain, and Padma Vibhushan from India. The Economist ranked him among the 10 most admired global business leaders in 2005. Now, let's drive down south to another manufacturing powerhouse. In 1911, T V Sundram Iyengar founded the now multinational conglomerate TVS Group. But the man who’s carrying the torch forward is the automobile pioneer’s grandson, TVS Motor Company Chairman Venu Srinivasan. Srinivasan is credited with transforming TVS from a 50cc moped maker in the 1980s to the third-largest two-wheeler manufacturer in India, competing with the likes of Hero, Bajaj and Honda. While the company still has a monopoly in mopeds, its range of products extends from e-scooters and gearless scooters to race motorcycles and BMW bikes. Moving on, let’s look at how two personalities turned a large family business into a global conglomerate, Aditya Birla Group. While Ghanshyam Das Birla or GD Birla, set up industries in critical sectors such

Amul Currently ranked as the eighth largest dairy organisation in the world, Amul was founded in 1946 as part of a cooperative movement against Polson Dairy and grew under the chairmanship of Verghese Kurien. What would become “the taste of India”, was at its heart a movement to ensure fair earnings for the country’s farmers. The brand found its mascot in the round-eyed utterly butterly Amul girl in a polka-dot dress. That was back in the ’60s. The Amul girl has since kept a close eye on the goings-on in the country, recording them day after day with her puns, witty takes and compassion, depending on what emotion the event calls for. From the Pokhran nuclear tests of 1998 to when India lifted the cricket World Cup in 2011 to Wordle, through her, Amul has kept a finger on the country’s pulse. Parle-G Amul milk has given you chai. But what is tea without Parle-G? The perfect accompaniment to chai in the middle of a busy work day, Parle-G was founded on swadeshi ideals in 1929 by Mohanlal Chauhan. It was an answer to expensive British biscuits — perhaps with a touch of French. As the ’80s approached, competitors started to launch their own glucose biscuits. Parle-Gluco could see its market share thinning as people started getting confused by similar brand names. Many also just wanted glucose biscuits — brand no bar. So, in 1982 the brand reinvented itself as Parle-G. A powerhouse of energy, a huge section of society started depending on Parle-G, not just for fulfilling nutritional needs but also for its budget-friendly prices — the prices remain so. Along with milk, Parle-G came to be considered staple baby food. The signature white-and-yellow striped biscuit packet, with the chubby Parle baby girl, is probably the most recognisable brand in the country, and according to Nielsen, continues to be the world’s best-selling biscuit. Maruti800 Another product that is inseparable from the India story is the Maruti 800. The joint venture between Maruti Udyog and Japan’s Suzuki Motors started with this small, box-like hatchback that was affordable and offered great mileage. It launched in 1983 at a price tag of 47,500 rupees. Tailor made for tribulations on the average Indian road and the aspirations of the average Indian family, the small car proved a revolution in the Indian auto sector, eventually replacing the legendary Ambassador and much-loved Fiat Padmini as the car of the first choice. Even as the economy opened up in 1991, the 800 remained a favourite, and Maruti Suzuki continued its hold over the auto market with the largest share, with its successive offerings. Air India If Maruti Suzuki is the king of Indian roads, Air India is the Maharajah of the Skies. The carrier is known for its royalty when it was born out of the J R D Tata-led group in 1932. But the brand struck a chord with the average Indian reader too. Back in the days, it had an aura about it and was one of the few organisations that put India on the global map. The carrier hit the skies roaring and found success for many decades thereafter. But then, turbulence hit. Air India was nationalised and it had seen fair share of losses. Amid all of this, Air India shouldered some of the biggest Indian evacuations during the Gulf war and most recently in a pandemic. Now back with the Tatas, the maharajah hopes to revive its glory days. Bollywood Moving on from Maharajah to the brand of brands which gave us the “Badshah” of Bollywood Shah Rukh Khan. How does one even begin to describe a brand like Bollywood: India’s biggest entertainer; society's mirror; the most influential influencer; a world of storytellers and dream merchants; one of the country’s most popular exports....Where does one start from? From Dadasaheb Phalke or Dadasaheb Torne? From Satyajit Ray or Bimal Roy? Or Hrishikesh Mukherjee, Basu Bhattacharya or Shyam Benegal? Which stars does one focus on? The gorgeous Madhubala? The institutions called Prithviraj K

As our country celebrates its Platinum Independence anniversary, here’s a throwback on the many events that brought financial markets to where they are today. Even before India got independence in 1947, it had at least one stock exchange up and running in BSE in 1857. The other prominent exchange, the NSE, was incorporated in 1992, and was recognised as a stock exchange by market regulator Sebi in 1993. BSE, meanwhile, remains one of the world’s oldest stock exchanges and the 8th largest exchange in terms of market capitalisation. One of the first few steps taken by the government post-independence was enactment of The Capital Issues (Control) Act that set the ball rolling for the Indian capital markets. And as investors equated investing in stock markets with wealth creation, the pool of investors kept growing over time. At the end of fiscal year 2021-22, the total demat account holders in India stood at 89.7 million compared to 35.9 million at the end of FY19 – up almost 150% in three years. In all these years, veterans have innumerable stories of booms and busts spread across decades. Within a decade of independence, India saw its first market scandal, involving Life Insurance Corporation of India and Haridas Mundhra group. The scam led to the resignation of the then finance minister. After the markets stablised, Reliance Industries launched its initial public offer in 1977, which market mavens say, brought about the equity cult in India. In fact, Dhirubhai Ambani had booked an entire football stadium in 1985 to hold its annual general meeting - a gala event for its 12,000 shareholders back then. And then there was no looking back for the equity markets then. After the big-bang ‘reformist’ Budget in 1991, FPIs and FIIs were allowed to invest in Indian equities in 1992. Today, they hold stocks worth around a fifth of India’s total market capitalisation. The period, thereafter, saw more frequent troughs than peaks. The Harshad Mehta scam hit the markets in April 1992, when the Sensex tanked 13%. While Mehta died in 2001, the stories of his modus operandi live on through OTT series like Scam 1992. The crashes that followed, include the Dot-com collapse of 2000; the 2004 fall post NDA’s defeat in the national elections; and 2008’s market slump amid the Global Financial Crisis. The GFC led to a sharp crash with the Sensex plunging 63% in 2008 to under 7,700 levels. 2008 also saw India’s financial capital under siege amid the 26/11 attacks, rattling investors. The last market crash came in 2020, when the world was hit by the Covid-19 pandemic. The Sensex and Nifty closed at their lowest level in four years, after nosediving 33% in just 13 trading sessions. In the commodity market, WTI crude oil futures dropped 306% on April 20, 2020, to settle at minus 37.63 dollars a barrel. The one-day plunge was the largest based on records going back to 1983. But, between these crashes, there were periods of massive gains. India’s Sensex touched 1,000-mark for the first time in 1990, and marched to hit the 10,000-mark in 2006. The index, then, hit the milestone of 25,000 in 2014, and scaled mount-50K in 2021. The lifetime high for the markets was during the same year. Going ahead, as India looks forward to its Centenary year celebration 25 years down the line, equity investors in India are optimistic that the BSE Sensex 30 will have scaled the 100,000-mark by then.

Along with the proliferation of brands, the growth in the broadening of the Indian markets is another of the country’s achievements. The Indian stock market has grown just like India has, stronger and more confident. It has benefited from India's growth while also helping it grow. In this episode of the podcast we take you on the journey that recalls the key moments that shaped Indian markets.

With this famous speech delivered at midnight on 15th August 1947, India's first Prime Minister, Jawaharlal Nehru, announced the birth of an independent India. In these 75 years, India has grown by leaps and bounds. In this episode, we look back at some aspects of this 75-year journey. We will take you on a short trip down memory lane, recalling India's towering business leaders, reminding you of the brands that Indians fell in love with and also the key moments that shaped Indian markets in these 75 years. First, we tip our hat to the towering business leaders who have shaped this journey. Some are “Midnight's Children” whose pre-Independence businesses bloomed after 1947, and some “Licence Raj Warriors” who refused to let red-tapism slow them down. In many cases, the enterprises steered by them have successfully navigated India's shift from a Nehruvian to a neo-liberal model. They are some of the global Indians who got the world to sit up and take notice. With the vision and confidence to innovate and cut through challenges, these professionals took ideas and gave them wings. Their story is as much India’s as it is the world’s. Along the way, brands have embedded themselves into our everyday life, defined eras and left their indelible imprints that evoke nostalgia as iconic culture products do. Along with the proliferation of brands, the growth in the broadening of the Indian markets is another of the country’s achievements. The Indian stock market has grown just like India has, stronger and more confident. It has benefited from India's growth while also helping it grow. We take you on this journey that recalls the key moments that shaped Indian markets in this episode of the podcast.

Come September, and domestic airlines will have a free hand to decide fares. The government, on Wednesday, announced to lift the cap on airfares after over two years. Does it mean that we will have to shell out more for flight tickets? Also will it lead to a price war?    Some cash-strapped domestic airlines have been cutting corners to stay afloat. Even at the cost of safety. The recent spurt in technical snags and emergency landings have shone the spotlight on it and forced the airline regulator DGCA to step in. So what is plaguing the aircraft maintenance sector?  Like the airlines, the government too is in a fire-fighting mode. Albeit in a different field. It is trying to bring down inflation and has now directed edible oil suppliers to cut prices by as much as 40 rupees per litre over the past few weeks. As raw material prices continue to remain volatile, will players like Adani Wilmar and Patanjali Foods bear the brunt?  India will celebrate 75 years of Independence this Monday. From WhatsApp profile pictures to balconies to road crossings, tricolors are flying everywhere. But do you know about the rules governing the national flag? Watch this episode of the podcast to find out more.

It was a symbol of dissent during the freedom struggle. And when the colonizers left, it became an emblem of Independence. When tagged on a vehicle, it indicates presence of a dignitary inside. When flying half-mast, it suggests that a nation is in mourning. When it is draped around a body, it announces that the nation is paying homage to a hero. A flag gives respect and dignity, and it deserves the same too. The use of the national flag is governed by the Flag Code of India, 2002 and Prevention of Insults to National Honour Act, 1971. A brief knowledge of the rules governing the use of tricolour will help us use it in a proper way. The Flag Code of India consists of set laws and conventions concerning the use, display, and hoisting of the Indian national flag in the country. Brought in effect on January 26, 2002, the Flag Code is divided into three parts and consists of detailed guidelines regarding the hoisting of the flag. It tells how private, public and government institutions must display the national flag. Which materials can be used in the making of the Indian flag? Polyester or machine-made flags were not permitted earlier. But on December 30, 2021, the government amended the flag code to allow it. So the national flag can now be made in polyester, cotton, wool, silk or khadi. It can either be woven by hand or by a machine. Where can the national flag be displayed? The flag code says that “a member of the public, private organisation, or educational institute is allowed to hoist the national flag on all days and occasions, ceremonial or otherwise, consistent with the dignity and honour of the flag.” When can the national flag be flown? A recent amendment made by the government allowed the flags to be hoisted after the sunset too. It wasn’t allowed earlier. Size of the national flag? The national flag shall be of any size but should always be rectangular, with the length-to-height ratio fixed at 3:2. Who can display the national flag on their vehicle? Only individuals who hold important designations have been granted permission to display the national flag on their vehicles. Like the President, Vice-President, Governors, Chief Justice of India, Supreme Court Judges, Chief Justice of High Courts, Judges of High Courts, Heads of Indian Missions, Chief ministers of states etc. How to dispose of the national flag?  The damaged national flag must be disposed of as a whole in private and can be done by either burning or any other method that would give due regard to its dignity. National flags made of paper should never be disposed of on the ground after the citizens have waved them.

Have a domestic vacation planned in the coming months? Or, are you planning to fly back home during the festive season? If yes, then this news may concern you. Starting 31st of August, the civil aviation ministry will remove price caps for the domestic aviation sector. This will give airlines flexibility on passenger fares. Under normal circumstances, airlines would be broadly expected to continue with current levels of fares despite the government deciding to remove domestic fare caps. This is mainly on account of costlier fuel. However, that could change based on whether airlines maintain pricing discipline or not. Airline executives have also told Business Standard that low-demand routes, flights with poor loads, and new routes could see discounts.  Caps on fares and capacity were introduced in May 2020 as air travel resumed after the nationwide Covid-19 lockdown. While the government allowed 100 per cent capacity deployment in October 2021, it continued with the pricing regulation.   Under the current policy, the government has been setting minimum and maximum fares for domestic flights that are applicable for up to a period of 15 days from the booking date on a rolling basis. For bookings beyond 15 days, airlines have been free to set their own fares. Going ahead, capacity addition, the demand-supply situation, and fuel prices could determine pricing. How much you end up spending could also depend on which route you're flying. Aloke Bajpai, the co-founder and group CEO of ixigo, told Business Standard that airfares should gradually decline on routes with softer demand. Basically, customers can enjoy lower pricing on sectors or routes with comparatively low flight loads. However, another travel agency company executive believes that select flight routes, for instance between Indian metros, were likely to see a surge in pricing.   When you are travelling also matters. The announcement has come when traffic is lean. One financial daily reported that airline executives believe that a fare war could erupt. Ticket prices will decline if that happens. According to the report, airline executives see airfares falling considerably at least till the end of September due to lower traffic. They do expect airlines to maintain pricing discipline in the festive season that starts from October. However, it is possible that airlines that urgently need liquidity might undercut prices even then. According to data provided by travel portal ixigo, for tickets purchased about two weeks in advance, the average one-way fares on some of the top domestic routes have decreased by as much as 31%. For example, a Delhi – Mumbai ticket, which cost Rs 7,587 a month ago was down 24% to Rs 5,801 in the second week of August. Similarly, ticket prices on the Delhi-Goa route were down 20%, and Mumbai-Chennai route fell almost 15%. But the decline came from a high base. It was driven by airlines and online travel aggregators trying to cash in on the long Independence-day-weekend. The fares in July were 25 to 30% higher compared to January this year.

Palm oil prices have been volatile thus far in 2022.  After hitting a high of 8,200 Malaysian Ringgits per tonne within a week of the Ukraine-Russia war, they slipped to a low of 3,600 Malaysian Ringgits in July, only to bounce back by around 14% in August. Against the backdrop, companies like Adani Wilmar and Patanjali Foods hiked prices by around 5-7% to cope with the rising palm oil prices. As global palm oil prices corrected, the Indian government directed related companies to cut edible oil prices about 40 rupees per litre over the past few weeks to alleviate inflationary pressures. Nirav Karkera, Head - Research, Fisdom says price changes take time to reflect and earning contraction has been seen for Adani Wilmar and Patanjali Foods. Free Cash Flows (FCF) may be impacted.  Adani Wilmar’s edible oil EBITDA margin weakened by 200 rupees per tonne during the June 2022 quarter on the back of inflation, and down-trading by consumers.  Patanjali Foods’ revenue from oils and vanaspati segment grew a meagre 7% over the March quarter.  However, easing prices, along with the festive season ahead are silver linings and should support volume growth in the coming quarters, analysts said.  Against this backdrop, Edelweiss Securities suggests ‘Holding’ Adani Wilmar for a target of Rs 743 per share.  Nirvi Ashar, Fundamental Analyst, Religare Broking says companies avoiding steep price cuts to maintain margins. Margins set to improve over the medium term, she says adding that one should accumulate stocks from long-term perspective. Overall, healthy demand outlook, due to festive season and expected improvement in rural sentiment, is keeping analysts bullish on the sector, at least for now. On Friday, investors will eye the domestic retail inflation data for July. Besides, global cues, and other stock specific action will also sway the indices.