The BS Morning Show

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.

After a two-day discussion, Uttarakhand Assembly has passed the Uniform Civil Code, Uttarakhand Bill, 2024. It will subsume personal laws of all the religions. Marriage, divorce, inheritance of property, etc. will come under one common umbrella. So what will this proposed law change? After the personal laws, let us now see what is happening in India’s insurance sector. Insurance penetration in the country is likely to reach 4.5 percent by 2034, up from the current 3.8%. But it is still very low when compared to the developed nations. And even greater adoption of technology has not been able to increase the penetration. Insurtech platforms have been around for a while now, but the idea has not taken off as expected.  Meanwhile, in a piece of good news for the sector, a Parliamentary panel has recommended reducing the GST on health insurance products for senior citizens below 18 percent to make it more affordable. Moving on, markets regulator Sebi has sought granular ownership details from foreign portfolio investors with concentrated holdings in a single corporate entity. Failing this, such FPIs will need to liquidate their positions in the next 6-7 months. In this report, find out how much of an impact the new norms could have on foreign inflows into Indian equities in the months ahead. After the markets, let us now turn our focus to a new technology which is giving a big hope to those fighting cancer. CAR-T cell therapy successfully pulled three people out of cancer. Find out more about the new treatment in this episode of the podcast.

The rate setting panel of the Reserve Bank of India has kept lending rate unchanged at 6.5 percent, signalling that its battle against inflation is not over yet. This was the sixth consecutive time that the central bank has left the repo rate unchanged. The Monetary Policy Committee has also decided to stay focused on the “withdrawal of accommodation” stance.  After banking, let us now turn our gaze to the glamorous world of advertising. What is going on there? A recent attempt by a model-turned-actor to pull herself out of obscurity has shocked many. Poonam Pandey is once again in the news. But at what cost? Shockvertising, a marketing ploy that aims to grab attention through controversial or shocking ways, is not new. Some recent episodes have again triggered a debate around it. So how much shockvertising is too much?  In 2013, US carmaker Ford had apologised over a poster showing  three gagged and bound women in the boot of a car. It had come against the backdrop of the brutal Nirbhaya incident. Let us now move on to markets. Shares of public sector banks have delivered up to 3x returns over the past six months as investors increasingly turn bullish on government-backed lenders. Their private peers, on the other hand, have had mixed performances on the bourses during the period. In our next report, find out what is keeping the stocks in demand, and if this outperformance will continue. No indications of an interest rate cut by the RBI in the near future spooked the markets on Thursday. But it’s most likely a blip. The recent interim Budget has affirmed that India’s economy is on firm footing. One of the Budget announcements that was praised in several quarters was the government’s Rs 1 lakh crore corpus to boost private sector research in “sunrise domains” like biotechnology, artificial intelligence, and renewable energy. Listen to this episode of the podcast for answers.

The Karnataka government has announced fixed fares for taxis. Now both app-based and non-app based cab aggregators will have to follow a uniform rate chart. One of the triggers of this move was overcharging. But has the state government gone too far by setting cab fares?  Interestingly, the licences of Ola and Uber had expired in 2021, but both the cab aggregators have been operating cabs and autos in Karnataka. The state has refused to renew them alleging non-compliance of regulations. Moving on, Bajaj Auto is going to launch an entry-level motorcycle which will be powered by CNG. Something the world has never seen before. Honda had tried its luck on its Activa model, but couldn’t succeed. So how will CNG bikes change the two-wheeler industry if Bajaj succeeds in its mission?  Staying with the automobile theme, India’s largest auto-maker Maruti has lost the tag of the most-valued auto stock to its competitor Tata Motors, which has been at the forefront on the bourses among other peers. While strong JLR sales has been lending support to Tata Motors, why is Maruti trailing?  India’s financial markets and economy are set to get a leg up after the country’s inclusion into JP Morgan’s emerging market debt index. But it will also keep the regulator on its toes because of the so-called “hot money”.  But what is it? Listen to this episode of the podcast to know more.

Byju Raveendran has been in a fire fighting mode for a while now. Even as he was planning to raise funds for his struggling ed-tech start-up Byju’s by slashing its valuation to less than two billion dollars, a group of shareholders are now demanding his ouster. While no one knows what fate holds for Raveendran, some lessons can certainly be drawn from his travails. So what can start-up founders learn from Byju’s case?  Let us now move on to a story of contrast. Bhavish Aggarwal’s story has many takers. And unlike Byju Raveendran, he doesn’t fret about lack of investment options. Last year, when most Indian startups were grappling with fund shortage, the Ola founder was busy giving final touches to his third startup. We are talking about ‘Krutrim’ AI. It is the first unicorn of 2024. So like Raveendran, lessons can also be drawn from Aggarwal's story. So has Agaarwal’s third startup cemented his startup success?  But there are challenges too. The US investment firm Vanguard recently slashed Ola’s valuation by 29% to 1.88 billion dollars. And it’s in sharp contrast to the 2021 valuation of 7.3 billion dollars. Moving on, the Reserve Bank of India’s last monetary policy meeting for the current financial year is underway in Mumbai. Find out what all are the markets factoring in, and what could be the key triggers to watch out in the policy statement.  After the financial markets, let us now turn our focus to the environment. Now, you can access updated details on environmental impact assessments, forest and wildlife clearances for proposed projects in a more efficient manner as the government has revamped the existing Parivesh portal and launched a 2.0 version. Listen to this episode of the podcast to know what the new portal brings to the table and more.

Come March, and most Paytm soundboxes might fall silent. It is a void which will be difficult to fill. But the RBI has given a decent window, and merchants are slowly porting their accounts to rivals like Phonepay and Google Pay. While Paytm is trying hard to put its house in order, its Wallet and FASTag services will come to a halt after February 29. So what does it mean for you?  The market value of Paytm has crashed by over 20,500 crore rupees in three straight market sessions. And its circuit filter has been reduced to 10% to stop the bleeding. On its part, Paytm has denied any wrongdoing. Moving on, the world’s largest two-wheeler manufacturer HeroMotoCorp is planning to increase its pace in the electric vehicle market. It is rolling out three new two-wheeler EV models. Clearly, the company is eyeing a big pie in India’s growing EV two-wheeler segment. But what are the challenges?  The government too is doing its bit to boost EV infrastructure in the country. The interim Budget for 24-25 has placed a special focus on supporting EV manufacturing and charging infrastructure. The budget has also given a fresh momentum to the markets. The NSE Nifty 50 scaled a fresh life-time high a day after the Interim Budget. Experts believe that the government's stance towards fiscal prudence even in an election year was commendable. Given the positive domestic cues in the backdrop of an uncertain geopolitical situation, what should be your investment strategy?  The interim budget has also offered a roadmap for empowerment of rural women. The number of ‘Lakhpati Didis’ will now be increased to 30 million. But who are they? What is this scheme all about? Listen to this episode of the podcast for answers.

Over eight months after Go First grounded its entire fleet and filed for bankruptcy, a fresh development has given some hope to its anxious lenders. They are reportedly seeking an extension of the insolvency process by another 60 days after three potential buyers have expressed interest in the airline. SpiceJet’s founder Ajay Singh is one among them. But does Ajay Singh have the wherewithal to catapult Go First back in the air?  But it seems Spice Jet is trying hard to turn the corner. It reported profit in the first quarter of FY24, and narrowed losses by about half in the second quarter year-on-year. It is also planning to raise a fresh capital of 2,250 crore rupees. Moving on, the number of Indian students taking flight to Canada is set to drop considerably. The country has announced two-year restrictions on new international student visas. But who will gain from it?  The United States, meanwhile, remained the top choice for Indian students. India was the largest source of international graduate students in the United States in 2022-23. Let us now move on to financial markets. Paytm is in a slump, having been locked in the 20% upper circuit for 2 straight days as RBI has mandated to halt nearly all banking services of its payments bank unit. With this, fintech's timeline to profitability has clearly been delayed. So, what lies ahead for the stock and the company?  Clearly Paytm boss Vijay Shekhar Sharma has his task cut out. A few months ago he had predicted artificial intelligence-led “mass industrialisation” of human jobs in the next five years. Things clearly are moving in that direction. Now a compact AI assistant device is taking the tech world by storm. It has been named Rabbit r1? Listen to this episode of the podcast for answers.

Finance Minister Nirmala Sitharaman almost stuck to her promise of keeping the interim Budget free of any “spectacular announcement”. But, at the same time, she tried to strike a fine balance between welfare and fiscal prudence. The budget speech was peppered with a number of people-friendly announcements, like the housing scheme for the middle class. And it also promised to bring down the fiscal deficit to 5.1% of GDP in FY25. So is this Budget more than interim? Find out in the first episode of today’s special show on interim Budget.  This is what experts have to say about the interim Budget. Now let us see what Business Standard’s own crack team thinks. They offer us sector-wise analysis of this Budget statement. Let us see if it ticks all the right buttons. The government’s aggressive fiscal targets set bond markets on fire. Yields on 10-year government securities fell as much as 10 basis points after Finance Minister Nirmala Sitharaman announced lower-than-expected fiscal deficit and borrowing numbers. So, will the government's fiscal gliding path provide the necessary balm to bond, and in turn equity markets? Salaried class, meanwhile, was a bit disappointed as the FM kept the rates unchanged. But they can now pin their hopes to the full Budget which will be tabled in July. And at about 58 minutes, it was perhaps the shortest budget speech by Nirmala Sitharaman. But it certainly carried a punch. Listen to this episode of the podcast for a few important numbers which got newsmakers attention and more.

Finance Minister Nirmala Sitharaman will equal the feat of former Prime Minister Morarji Desai today when she rises to present her sixth consecutive budget in the Parliament. But will she stick to the old tradition of keeping the interim budget free of pre-election sops or big schemes? What clue could the history of the interim budget offer us?  Finance Minister Nirmala Sitharaman has an impressive record of keeping promises. Just a fortnight after she had said that the government was going through the process of direct listing of stocks in GIFT IFSC in a “very systematic manner”, the rules were finally notified last week. Indian companies can now list on foreign exchanges. But how will it benefit India Inc.?  Cleary GIFT city will open a window of opportunity for Indian companies. But today, India Inc. and investors will be glued to TV sets. Today’s ‘disha-nirdeshak’ Budget, as PM Modi called it on January 31, will be keenly watched as investors expect the government to paint a picture of commitment to growth and sustainability ahead of the General Elections. But, kick-starting demand in rural and urban landscapes would come at a cost. Will the markets be able to digest that? Let's gauge which fiscal estimates may play spoilsport for the markets? The ruling government cannot present the Economic Survey with the interim budget. This time it came out with an economic review telling about India’s journey over the last ten years. But ever wondered exactly what is an interim budget? We explain it in this episode of the podcast.

The Union Finance Ministry on Monday exuded confidence in a report that the Indian economy will expand at 7% or more in FY25, and that the country will become the third largest economy in the next three years. This economic review report has set the tone for tabling of the interim budget tomorrow. But what are the expectations? Which areas are likely to get more attention? Business Standard team breaks it down for you Clearly, expectations from the interim budget are running high. The government will indeed have to do a tough balancing act. Moving on, the government recently came out with a set of guidelines for the coaching industry. It bars coaching centres from enrolling students below 16 years of age. It also calls for appointment of trained counselors, and warns coaching centres against making misleading promises. So what will be the future of the coaching industry after new guidelines?  After the coaching industry, let us now turn our focus back to the budget theme. While market participants may not be expecting any major policy announcements in the tomorrow’s interim budget, they are still keenly awaiting the budgetary support across various sectors to gauge the expected opportunities that will arise for related companies. So, which sectors are expected to derive most government support in the interim budget and how should you position your portfolio?  Meanwhile, the government’s economic review report talks about a common concern. That is the rising geo-political risk. Markets too is keeping an eye on the rising escalations in various parts. The ongoing Israel-Hamas conflict is one of them. Several European nations have now decided to halt financial support to the United Nations Relief and Works Agency for Palestine Refugees or UNRWA. But why? Because some agency members were allegedly involved in the October 7 terrorist attack. But what exactly is UNRWA? What does it do? Listen to this episode of the podcasts for answers.