The BS Morning Show

Come July and Australia’s Deakin University will start admitting students. This piece of news might not be of interest to many. But what if we tell you that these admissions will take place in India, and at the university’s local campus in Gujarat? Well, you heard it right. Foreign universities are finally coming to India. The National Education Policy, 2020 had laid down the framework. And UGC came out with a final set of regulations about two months ago. But will students warm up to foreign universities in India?   While foreign universities may take some time to gain a foothold in India, footwear made on foreign shores have already made inroads here. Leather shoes and sandals have almost become invisible, replaced by cheaper non-leather stuff.  The industry, it looks like, is on an inflection point as it is moving from the skill-based labour intensive leather footwear to scale-based machine-led non- leather footwear. Clearly it is a challenging time for Indian manufacturers. So, how can India scale up operations in non-leather footwear?   Let us now see what is happening in financial markets. IT stocks have been firing up recently on strong Q3 earnings, sparking a rally in the overall market as well. The Sensex index has surged nearly 1,800 points in just 4 sessions to cross a new peak of 73,000 on January 14. So, will the rally in IT stocks and the benchmark indices sustain?   Meanwhile, India’s financial capital got a big gift last week. Prime Minister Narendra Modi opened the country’s largest bridge on the sea. This six-lane Mumbai Trans Harbour Link will reduce the travel time between South Mumbai to Navi Mumbai to just about 20 minutes, from the earlier over two hours. Listen to this episode of the podcast for more.

A number of C-level executives switched sides and joined rival organisations in 2023. While the move possibly put their career on a higher growth trajectory, it left some void in their previous organisations. And with talent in such a short supply, companies struggled to find replacements. IT giants Wipro took two of its former employees to court for allegedly violating agreements. But are such agreements, like the non-poaching pact, the right fix to retain talent at the top level?  A buoyant IT sector is also crucial to the country’s economic growth. The sector now contributes about 9% to the national GDP. Moving on, the government is going to table the interim Budget on February 1. Our first part of the special budget series had discussed the likely stance that the Budget might take. Find out if it will revive demand and investment or both. IT stocks, meanwhile, rallied about 5% on Friday after TCS and Infosys came out with results which were not as bad as feared by the street initially. Moving on, India’s largest private bank, HDFC Bank, is set to roll out the carpet for the banking pack’s Q3 earnings. Analysts forecast a muted growth in profits amid marginal increase in net interest income.  Margins may continue to compress as deposit rates catch up. Finf out more about the sector’s December quarter earnings, and lists the top 3 things to watch out. Meanwhile, in good news, UPI is set to change the way we buy stocks in the secondary market. After the primary market, the UPI-enabled ASBA facility is set to be launched in the secondary market. It is at the testing stage right now. Listen to this episode of the podcast for more.

Despite a high interest rate regime, India’s real estate sector continued to expand at a fast clip in 2023. A growth which was primarily driven by home buyers. While sales of budget homes jumped, luxury apartments sold like hot cakes -- with many disappearing within hours of opening of bookings. And a big chunk of them were bought by deep-pocketed Non-Resident Indians. But there is a worry in some quarters. That NRIs' increased investment may be pushing the prices of homes, making them unaffordable for many.  For most of us, home means a place to slow down. A place where we find warmth of family, and, of course, a hot cup of tea or coffee in this cold winter. Traditionally, we have been a nation of tea drinkers, barring pockets in the south where coffee has long been relished. But, with a rise in people’s income and increased exposure to the west, coffee has slowly but steadily been making inroads in our daily routine. Coffee shops, run by both foreign as well as domestic brands, are dotting markets and shopping centres like never before. So have we matured as a coffee drinking nation?  Let us now see what is brewing on Dalal Street. Vodafone Idea has been unable to arrest the market share loss to its rivals. But, the stock of the debt-ridden telco has far outperformed its listed peers, with a 100% rally in the last one year. So, is the strength sustainable or are the gains overdone?  Analysts, meanwhile, believe that due to customer losses, Vodafone Idea’s revenue is likely to remain stagnant in the December quarter. Moving on, the trade between India and Russia increased by over 200% year-on-year in the first two quarters of FY24. And just last month, both the countries agreed to establish the Chennai-Vladivostok maritime corridor. Find out more about this new route and how will it help both the countries in this episode of the podcast.

Indian aviation sector not just shrugged-off the pandemic blues, but it also broke all the previous records in 2023. The country’s domestic air passenger traffic soared past 150 million last year-- despite the grounding of a big carrier in May. But it also meant that airlines were stretched like never before. And pilots were operating under extreme pressure. At least three of them reportedly died due to heart attack last year. So now, the civil aviation regulator has come up with a set of new rules. Will it ease the burden on pilots? How will it affect the airlines?  And thanks to holidays, last December saw the highest ever air passenger traffic in any month in the history of aviation. And like skies, records were set on the ground too. Sales of passenger vehicles crossed the four-million mark for the first time in 2023. Even a year before, in 2022, car sales had broken the previous record. But now, India’s auto industry is facing a peculiar challenge. Car dealers have reported a 75% jump in unsold inventory at the beginning of this year, as compared to January of 2023. So what explains this dichotomy?  Let us now turn our focus to the financial markets. Shares of real estate firms have been firing from all cylinders, outperforming the markets over the past one year. The Nifty Realty index has doubled investors’ wealth in one year, while some stocks have generated 3x returns during the period. Going ahead, are there more legs in this rally? Or are the stock prices over heated?    Staying with the financial markets theme, FMCG giant Nestle India recently announced that it will split its shares and give 10 shares for every 1 its shareholders hold. Currently, Maggi-maker has one of the most highly-priced shares in the Indian stock market. But what is a stock split, why do companies do it and what changes after that? Listen to this episode of the podcast for answers.

Maldives’ new government has sacked its three ministers. And it is trying hard to douse flames erupted due to their comments against Indian Prime Minister Narendra Modi. Their controversial remarks had come in response to PM Modi’s posts in which he was promoting Lakshadweep as a tourist destination. So how can we make Indian tourist spots more attractive?  Government meanwhile is trying to project Ayodhya as a global religious tourist destination. The city is going through a massive facelift. With Ram Temple inauguration drawing close, it seems all roads are leading to the temple city. And just 150-km away, UP’s capital city Lucknow too is being spruced up, but in a different way. The state government is developing an Artificial Intelligence City there. The idea is to make it an IT hotspot like Bangalore. So what will be the significance of India’s first AI city?  A recent report said that about 70% startups are investing in AI to boost their efficiency. Moving on, global and domestic equities alike have remained unfazed by the geopolitical crises in the year gone by. The ongoing war in Gaza, however, risks roping in world powers as tensions brew in the Red Sea, while upcoming Taiwanese elections are keeping the mood in East Asia sour. So, are markets ignoring the geopolitical risk in 2024?  Meanwhile, broad indexes in Bangladesh surged to two-month high after results of national elections were declared. Sheikh Hasina has won a fourth straight term amid a boycott by the main opposition party. But who is Sheikh Hasina? Listen to this episode of the podcast for answers.

Antibiotics are given to neutralize harmful bacteria, and to halt their reproduction. But their overuse is fast turning into some sort of epidemic. It is turning these germs into 'super bugs' - which are antibiotic resistant. And India has one of the highest mortality rates due to this antimicrobial resistance. So how can India stop popping antibiotics?  Kerala, meanwhile, has launched a state-wide operation to check abuse of antibiotics. It will also deploy covert squads to monitor sale of these drugs. Well, it looks like a step in the right direction. Let us now turn our focus to another threat, which is giving sleepless nights to people in various parts of the country. Incidents of leopards straying into human habitats have been on a rise for a while now. From posh NCR colonies like Gurgaon and Noida to villages in Tamil Nadu and Kerala, leopards are increasingly making their presence felt. But why?  But on Monday, bears made their presence felt on Dalal Street. Key benchmark indices tumbled amid weakness in global indices. But IT stocks shone amid this rout. Stocks of IT majors have been in the spotlight after a sharp recovery seen last year. The excitement has been led by hopes of improvement in IT spending as global rates begin to decline. But can the December quarter earnings test this optimism?  Many experts believe that IT stocks would see increased volatility in the coming weeks. Moving on, another disturbing trend has emerged in the evolving landscape of cybercrimes. It is being called “Cyber Kidnapping.” Find out more on it in this episode of the podcast.

Tech companies reportedly fired over 220,000 employees in 2023. It was a jump of 40% from the previous year. And a record too. But take this contrast. Demand for tech talent still outstrips supply. So why is it so? Does India IT have a talent management problem? Or there is more to it than meets the eye?  Next six months are likely to be crucial as IT firms will compete with their domestic as well as global peers to get a pie in the upcoming 16 billion-dollar worth of IT deals. Well, it’s good news as deal wins will help boost the IT sector’s prospects, and in a way, contribute to the country’s growth. The government on its part is getting its expenditure scorecard ready. Interim budget will be tabled in Parliament on February 1. Finance Minister Nirmala Sitharaman has ruled out any “spectacular announcements”. But foreign brokerage Jefferies has said the government will boost welfare spending in the interim Budget. So what stance will the interim budget 2024 adopt?  Dalal Street too will keep a close eye on the interim budget announcements. And it will express its pleasure, or displeasure, through stock movements. Moving on, markets are set to kick off the December quarter earnings this week with IT majors, including Infosys and Tata Consultancy Services slated to report their numbers. Here's a curtain raiser on the Q3 earnings season. After the earnings preview, let us now turn our gaze to Indian roads which see over 150,00 deaths every year. Government recently introduced new penal provisions in hit and run cases. But unions representing truck and taxi drivers have hit the streets against it. The government, which is now on the back foot, has assured them that its enforcement will happen only after wider consultations. Listen to this episode of the podcast to know more about this new provision.

There is absolutely no room for complacency in Reliance, its chairman Mukesh Ambani told his employees last week. The statement, in a way, explained why the conglomerate is going big on adoption of Artificial Intelligence now. The company is also making a big shift towards green energy. But what will these new forays mean for Reliance?  The world too is bracing for a big shift. Over 50 countries across the world with a combined population of 4.2 billion will go to polls this year. India will be one of them. The outcome may shape the trajectory of international trade ties. Find out how this year’s major elections may affect global trade. But amid the changing global order, and the uncertainty that it brings with it, India appears to be an oasis of stability. Its economy is expected to grow at 6.5% in the ongoing financial year. Its equity markets dazzled with stupendous gains in 2023. And gold as an asset class too, quietly and steadily, delivered over 13% returns in 2023 on rising bets of rate cuts and weakening of dollar. So, what’s in store for the precious metal in 2024?  Moving on, political parties are gearing up for this year’s general elections. And they are trying to outdo each other in wooing electorates. Opposition Congress has now promised women at least 60 to 70 thousand rupees annually under its NYAY scheme. Find out more about Congress’ NYAY promise in this episode of the podcast.

Car showrooms were never so busy and bustling with curious buyers. A record four million passenger vehicles rolled out of these swanky outlets in 2023-- notwithstanding an average 10% jump in car prices. But will this feverish demand continue this year? Or will rising loan rates dampen the sentiments?  While the impressive car sales numbers may reflect the prosperity of any nation, there is a flip side to it too. More cars also mean more air pollution. A recent study claimed that 30% of total Greenhouse Gas Emission in Delhi was due to vehicular emissions. And it was 8% for the country -- which is witnessing increased instances of extreme weather conditions like flood, drought and severe heat wave. So is it time that India has a dedicated climate change resilience authority?  Let us now turn focus to financial markets. 2023 marked a remarkable turnaround for FPI inflows into the Indian equities. From net selling of 1.2 trillion rupees, FPIs pumped 1.7 trillion rupees into the market during the year. Going into 2024, the trend is expected to remain steady, but which equity pockets will FPIs keep on their radar in the new year?  After big foreign investments, let us now move on to small lending. People who have fallen through the cracks, those who don’t have the access to banks and NBFCs, often turn to microfinance institutions for help. Our tiny neighbour Bangladesh has built a well-oiled network of such institutions, which has lifted millions out of poverty. But the man behind it is in trouble it seems. Muhammad Yunus was recently convicted for violating labour laws. Listen to this episode of the podcast for more about this Nobel laureate.

2023 made a dent in Apple’s global business. The company not just ceded the top spot to its rival Samsung, but also posted its fourth straight quarter of revenue decline on a yearly basis. It was the longest slump for the US firm in two decades. And not just this, the tech giant also faced the wrath of regulators in China, in the US and in the European Union. So will 2024 give some breather to Apple?  And it wasn’t just tech giant Apple. India was also a big draw for foreign investors last year. And thanks to the rising wealth, Indian investors too are increasingly investing in foreign shores. In the first half of 2023, FDI outflow to Dubai saw an increase of 65% compared to the same period last year. So what is driving increased Indian FDI into Dubai?  Let us now see what is happening in India’s mutual fund industry. In the first 11 months of 2023, fund assets soared by 19%. These gains were largely driven by mid and small-cap equity mutual funds, where the former category saw inflows worth over 36,000 crore rupees during the period. By comparison, the large-cap equity mutual fund category saw net outflow of about 2,700 crore rupees. But, as valuations turn frothy in the broader markets, will the large-cap MFs find their mojo back this year?  After the mutual funds, let us now turn our gaze to foreign affairs. Iran is now part of a free-trade zone spread across a vast Eurasian region. This trade pact is called Eurasian Economic Union and is being led by Russia. Listen to this episode of the podcast for answers.