The BS Morning Show

Innovative solutions by fintech companies are essential to the financial services sector, Nirmala Sitharaman said on Monday. But in the same breath, the finance minister also said that they must ensure strict compliance with regulations. The FM’s statement came during her meeting with fintech leaders, which was called against the backdrop of RBI’s strict action against fintech giant Paytm. So, will the FM’s reassurance soothe the nerves of fintechs and ensure a sustainable path ahead?  Clearly, fintech firms have to strike a delicate balance between growth and compliance. Moving on, a lot of people are currently trying to strike a balance between their earning and outgo. And for those living on rent, it’s a tightrope walk. Recent government data revealed that today our rent commitments occupy more of our budgets than what was the case ten, or even twenty years ago.  Let us now turn our gaze towards the sky. The recent relaxation in space FDI norms by the government has provided a boost to related stocks in the defence and aerospace industry. As these shares remain upbeat, should you also join the rally or can valuations play spoilsport? And in this race to unravel the mysteries of space, companies and startups are increasingly taking help from Artificial Intelligence. In fact, AI is marking its presence in almost every sphere. But there are worries too. Like the effect of AI-generated fake videos on voters during elections. Against this backdrop, major tech companies have signed an AI accord in Munich committing to tackle deep fakes and AI generated content that could influence elections and misguide voters. Listen to this episode of the podcast for answers.

India’s paint industry is on the cusp of a churn. Entry of three new players, which includes Aditya Birla Group, is set to intensify competition in the sector - where top five players have cornered 90% of the organised market. But exactly what is drawing big players to the paint industry?  Stock of Asian Paints fell by over 5% on Monday after Hong Kong-based brokerage CLSA downgraded it, saying that stiff competition may take a toll on the paint maker’s near-term growth and margin. Moving on, like India’s paints industry, its space sector too is painting a promising picture. The government recently amended the FDI rules, allowing up to 100 per cent investment through three categories. So will it make India a space superpower?  After space, let us now see what is happening in the world of cryptocurrencies. World’s largest cryptocurrency, Bitcoin, has jumped over 20% so far this year to 52,000 dollars. Its market value has also breached the 1 trillion dollar-mark for the first time since late 2021. However, the crypto community is abuzz with two questions: Has the market already adjusted itself to factor in the halving’s impact? And, where is the price headed in the next 3 - 6 months?  Do you want to know more about Bitcoin ‘halving’? Well in our explainer segment, Shivam Tyagi breaks it down for you. What is this event all about? How does it work? Find everything about this event and more in this episode of the podcast.

Trade ministers from over 100 countries are set to meet in Abu Dhabi for the 13th ministerial conference of the World Trade Organisation. The three-day meeting beginning today is likely to be stormy as India will oppose adoption of a China-led proposal on investment facilitation. But why is India opposed to this initiative? And why does it want the investment agenda kept out of WTO?    India will also oppose the European Union’s proposed carbon tax on imports of steel, iron ore and cement at the upcoming WTO meeting. New Delhi believes that it would be akin to a new trade barrier. Moving on, Indian roads are witnessing a big change. More and more electric cars are rubbing shoulders with traditional ICE run vehicles. But there is more to it than meets the eye. A recent report has indicated that hybrid cars seem to be outpacing EVs in the race towards the future. Despite the steeper price tag and limited variants, hybrids are gaining traction among consumers. But why? Will this trend sustain? And will it push automakers to diverge from their EV goals?  Let us now shift our focus to financial markets. While the markets consolidated with the benchmarks declining over 1 per cent initially in February, they have rallied around 4 per cent from their monthly lows since then. The Nifty, in fact, has registered a fresh life-time high in the second half of the current month. In our next report, find out the five key factors that could impact the market trajectory this week. Meanwhile, the United States has announced to impose another round of sanctions on Russia as the world marks the second anniversary of the Russia-Ukraine war. But ever wondered what economic sanctions are? And how do they work? Listen to this episode of the podcast for answers.

The Reserve Bank of India recently urged the private sector to step up and take over the responsibility of driving capital expenditure, thereby relieving the government. An article authored by a team led by RBI Deputy Governor Michael D Patra said, expectation of a fresh round of capex by the corporate sector is likely to fuel the next leg of growth. Will private capex be able to offset the slowing momentum of government capex in FY25?  While the government is expected to pull back on capex in FY25 due to concerns about fiscal consolidation, economists believe it’s time for the private sector to pick up the ‘baton’. Speaking of investment, India’s Artificial Intelligence landscape is set for significant growth. SoftBank Group, known for its substantial investments in tech companies worldwide, has recently confirmed a strategic shift towards investing heavily in artificial intelligence. The Japanese investor has now set its attention on India’s expanding AI market. But what does this move signify?  Amidst the global race to harness artificial intelligence, Softbank has also targeted expanding its investment portfolio with next-gen technologies. Meanwhile, in the equity markets, aluminium player Hindalco is taking its key subsidiary Novelis public in the US by likely selling a partial or complete stake in the company. As investors await key details of the IPO, what could the monetisation of Novelis mean for Hindalco and its investors?  Moving on, the city of dreams Mumbai has recently unveiled its ‘digital twin’ called the Mumbai Megapolis Metaverse, at a tech event in Mumbai. The project offers an immersive experience of the city’s future where people can explore the proposed transformation of Mumbai by 2025. But what exactly is Mumbai Megapolis Metaverse? Listen to this episode of the podcast for answers.

The general election is round the corner, and internet users are increasingly facing the risk of misleading content online. They are often circulated with the intent to influence voters. But tech giant Meta has recently found a way to crack down on the problem. It will soon introduce a dedicated chatbot on Whatsapp to identify deepfakes.  Meta’s collaboration with MCA includes partnerships with 11 independent fact-checking organisations that will help users to identify, review and verify potential misinformation on its platforms.Moving on, popping dietary supplement pills has become a routine for many around us. And they are flying off chemists’ shelves. The increasing demand for dietary supplements has prompted the centre to consider stricter regulations for the nutraceutical industry. The government wants nutraceuticals to be of the same standards as pharmaceuticals, citing concerns over their unsupervised usage. Find out if India requires tighter nutraceutical regulations? Meanwhile, the equity markets have been steadily edging higher over the past few days, with the Nifty50 index hitting a fresh all-time high recently. So, is it time to get cautious? How comfortable are analysts with the market valuations, and what should be your investment strategy in this backdrop?  Recently, the Indian Highways Management Company advised highway users to buy FASTags from 32 authorised banks and not Paytm Payments Bank. The company is the toll-collecting arm of the state-owned National Highways Authority of India. But what if you own a FASTag by Paytm Payments Bank? Find out how you can deactivate that and buy a new one in this episode of the podcast.

The aviation landscape is rife with stories of turbulence. Amid news of mergers and acquisitions, the aviation industry also grapples with challenges like weather-induced delays and the collapse of major airlines. The close encounters on the runway are another escalating challenge the sector is facing, amid the rising number of operational aircraft in the skies. This was exemplified by a recent incident involving two Indigo planes narrowly avoiding collision at Delhi airport. What is leading to this recurrence and how can these incidents be minimised?  Amid the increasing number of aircraft in Indian skies, it is essential to develop more airports equipped with sufficient passenger and aircraft handling facilities. This should be accompanied by a stringent regulatory framework to address the emerging challenges effectively.Moving on, the Union government recently served another blow to the online gaming industry. It rejected the self-regulatory organisation proposals of the industry associations. It argued that self-regulation proposals lacked neutrality. This comes at a time when online gaming firms are grappling with cost-cutting measures due to heavy taxation. As the air around online gaming remains uncertain, find out what’s next for the industry after SRO failure. Let us now move on to financial markets. Shares of Central Public Sector Enterprises have been on a roll in the past four months, with eight out of 11 Nifty CPSE stocks delivering over 55 per cent returns during the period.However, so far in February, the rally seems to be narrower with just one stock doing the heavy lifting. What does this mean for the future prospect? Does this signal caution or will the rally continue unabated?  Moving on, Air Canada recently made headlines following a dispute over the ‘refund policy’ offered by its chatbot to a customer. Despite the airline’s argument that it should not be held liable for anything its chatbot says, the country’s Civil Resolution Tribunal upheld the validity of the bereavement travel offer. In this segment, find you through Air Canada’s bereavement policy and a context to the recent developments.

On Thursday, the Supreme Court of India quashed the non-transparent and much-debated electoral funding system involving Electoral Bonds. It sent shockwaves through India’s political landscape. Advocates of transparency argue that this move may expose all those engaged in this contentious form of political financing just before the General Elections. Find out what lies ahead after the electoral bond. According to an analysis, around 94 per cent of the total value of bonds purchased between March 2018 to October 2023 were in the denomination of 1 crore rupees. This shows that most electoral bonds were being purchased by corporates rather than individuals. Let’s now delve into the developments shaping India’s startup landscape. Indian startups are rekindling their IPO aspirations after a break – this time with a renewed emphasis on improving profitability before going public. Several of them also reported robust earnings in the December quarter. This has made people wonder if India’s listed startups are on the brink of a turnaround.  Let us now move on to financial markets. Dalal Street has been betting on IT stocks, reflected in their sharp gains recently on bets of global monetary policy easing. But with the US Fed rate cut timeline remaining uncertain, can the IT segment still extend its strength and emerge as the dark horse in 2024?  Moving on, the creator of ChatGPT, OpenAI introduced a new advancement in generative artificial intelligence — a tool capable of generating short-videos instantly based on written commands. OpenAI’s latest innovation Sora makes instant videos from written prompts. Find out what is Sora AI and potential impact in this episode of the podcast.

Top executives of Reliance Industries and Walt Disney have been in a huddle for a while now. Contours of a big deal are being thrashed out, and all the eyes are now on the final outcomes. If all goes as reported, Reliance will merge its media business with Walt Disney’s India business -- giving birth to the country’s largest media and entertainment business. And on the other hand, the conglomerate would also acquire Disney’s entire 30% stake in satellite TV provider Tata Play. But can Reliance replicate the success of Jio in the media industry too?    Clearly, the Indian media and entertainment landscape is seeing quite a churn. But even if Reliance seals both the deals, it wouldn’t be a smooth sailing ahead. Let us now turn our gaze towards skies where turbulence is brewing for Indian airlines. The season of fog is long gone, but passengers are still facing flight delays. But why?  Meanwhile, Dalal Street saw a tug-of-war between the bulls and the bears last week. Eventually the bulls had their way, as the market ended with weekly gains. Will this recovery be sustainable or is there more pain ahead?   Money, whether earned from the stocks or after a hard day’s work in the office, keeps us going. But what drags us down are the calls and emails beyond the working hours. When we are with families or friends. Australia has now come out with a Bill that will put in place a “right to disconnect”. Listen to this episode of the podcast for answers.

Despite concerns about Paytm Payments Bank being a ‘red flag’, certain banks have reportedly shown interest in collaborating with it, subject to RBI approval. But, industry observers have questioned the sustainability of the payments bank if it is acquired by another entity, due to compliance issues.    Moving on, the Indian electric passenger car market is witnessing price cuts by automakers. Tata Motors recently slashed the prices of two of its popular EV models by up to 1.2 lakh rupees. MG Motor India also joined in, reducing the Comet’s price by 1 lakh rupees. Additionally, it lowered the base price of its SUV ZS EV to 19.98 lakh rupees, from its previous price of 22.8 lakh rupees. Find out whether these price cuts could propel the electric car market forward.   Let us now move on to financial markets. Shares of Life Insurance Corporation, which were once synonymous with worst market debutants, have had a dramatic turnaround. From lows of about 550 rupees a year ago, the shares are quoting above 1,000 rupees mark now. What has been driving this rally in LIC's stock? And will the momentum sustain?    We have all experienced moments of crisis at some time in our lives. The world, too, has weathered its share of crises, ranging from wars and pandemics to economic turmoil and climate change. While many crises eventually come to an end, some seem to persist, shifting from one form to another. This ongoing state of crisis is referred to as ‘Permacrises’. This episode of the podcast explains the term that found its way to the Collins dictionary in 2022.

The tussle between the Centre and some opposition-ruled states over devolution of taxes recently came to fore when chief ministers of Kerala and Karnataka openly alleged discrimination. Karnataka leaders even went a step ahead and staged a protest at Delhi’s Jantar Mantar after giving full-page advertisements in national dailies alleging loss of 1.8 trillion rupees. Some are calling it the “south tax movement”. These states have alleged that the Centre’s policies have shrunk their share of the divisible pool of taxes. So do states have a case against the Centre on fiscal transfers? And, what will this mean for the 16th Finance Commission?  Clearly, the Centre has to strike a delicate balance on tax devolution. Meanwhile, it is trying hard to do a balancing act on another front. Production Linked Scheme has been keeping it busy. So far, it has turned out to be a mixed bag. While it has given expected results in some sectors, in others it is yet to take off. A recent review of the three-year-old scheme threw a contrasting picture. So how can India rejig the PLI scheme?  A rejig in PLI would indeed help India realise its manufacturing dream. Moving on, market volatility with sharp swings between losses and gains has continued into the current month. While benchmark indices are flat so far in February, it has mostly been a one-way street for small-cap stocks that have taken it on their chin with sharp cuts. So will this downtrend continue going ahead?  Very soon, India’s financial capital will be connected to Ahmedabad with bullet trains. Railway Minister Ashwini Vaishnaw took to platform X to share an animated video explaining the special features of the Mumbai-Ahmedabad train corridor. Find out more about the key features of this project in this episode of the podcast.