The BS Morning Show

Engine troubles and financial crisis have pushed Go First airline to a point-of-no-return. Its sole potential buyer, Jindal Powers Ltd, has backed out of bidding for the grounded airline. The budget carrier looks all set to follow 12 other airlines which have flown into obscurity in the last ten years. Foreign shores too are no less ominous for airlines. But why do so many promising airlines go bust?  Notwithstanding some airline busts, India has become the third-largest domestic aviation market in the world. Boeing recently announced that it will set up its largest facility outside the US in Bengaluru. Another US giant, Apple, too has emerged as the face for foreign manufacturing in India. Clearly, India is aggressively pitching itself as an Asian alternative to Chinese manufacturing. But while it has come a long way, India clearly has a long road to cover?  Let us now see what is happening in the world of digital currencies. Bitcoin has more-than-doubled investor money so far in 2023. However, it is expected to witness the famous ‘Halving Event’ in April 2024, where the value of the currency nearly halves but sees multi-fold rise in months ahead. So, will Bitcoin be able to hold on to its dream run in 2024?  After plowing billions of dollars into the cryptocurrency market, venture capitalists are believed to be sitting on dry powder, waiting for the right time. They have turned circumspect on startups too. But exactly what is dry powder? Listen to this episode of the podcast for answers.

Infosys saw yet another top-level exit last week after its Chief Financial Officer Nilanjan Roy decided to step down to explore external opportunities. If we include Roy, the last 12 months have seen eight seniors leaving Infosys. But why? Find out what could be behind this unusual churn in the IT major. Like Infosys, Indian Premier League or IPL too is seeing a churn. We may see a generational shift in the auction starting tomorrow in Dubai. Here's a peak into this mega event. IPL is also a decacorn now. Its valuation has jumped about 28% in 2023. Moving on, Dalal Street bulls got a shot in their arm last week after the US Federal Reserve signaled a pivot and three rate cuts in 2024. This led to euphoric buying in the markets in the last two sessions, taking indices to record high levels. So will the Sensex and Nifty extend their rally into this week, making it an eighth straight weekly win?   After the financial markets, let us now move on to a scam which is turning big with each passing day. The Maharashtra government has now set up an SIT to probe if Mahadev betting app’s owners are linked to wanted criminal Dawood Ibrahim. Listen to this episode of the podcast to know more.

Over 200 countries at COP28 climate summit have for the first time agreed to transition away from coal, oil and gas. The deal was clinched miraculously after the summit’s closing hours, but ended with a two-minute standing ovation. While it could be a big step towards checking global warming, what did India gain from COP28?  Several researches have claimed that global warming will hit the economic growth adversely, and lead to joblessness. Speaking of jobs, hiring in India’s IT sector has hit an all-time low. Lets dig deep to find out what’s behind this dip in hiring. But the IT industry heaved a sigh of relief after the US Federal Reserve decided to maintain its key interest rate for the third consecutive time on Wednesday. The US Federal Reserve is finally shifting gears towards a policy pivot with a dovish commentary in the latest policy meeting, where it laid out the rate cuts projections for 2024. With Indian equities sustaining their record-hitting spree, what does the Fed pivot mean for markets and which segments will lead the charge?  Moving on, as the global community intensifies efforts to combat climate change during the COP28 summit, discussions surrounding the reduction of fossil fuel usage have gained prominence. Two terms frequently mentioned in this context are “phase out” and “phase down”. While both aim to address the environmental impact of fossil fuels, they have distinct meanings and implications. Listen to this episode of the podcast for answers.

India’s Dixon Technologies will soon start rolling out Lenovo laptops and notebooks from its Noida factory under PLI 2.o scheme. Its subsidiary, Padget Electronics, has been awarded a manufacturing contract by the Chinese multinational. Just a few months ago, Dixon had won a contract  from Xiaomi to manufacture mobile phones. Dixon clearly is on a roll. So what is behind its success?  Clearly, it is good news for the government too, as its PLI scheme has got a shot in the arm. Meanwhile, the ruling party too got a shot in the arm in the recently -concluded assembly elections. It got three out of five states which went to the polls. And all the five states have new chief minister faces, with BJP again pulling a surprise by picking three leaders from obscurity to lead states it has won. But who are the new chief ministers?  Elections also give a fillip to stock markets. Historically, the market has favored continuity and a majority government, as this implies limited policy shifts post elections. As India and the US, the world’s two major economies, prepare to go to polls in 2024, how will the outcomes affect market moves and policies?  The US presidential elections are scheduled for November 5, 2024. But going by the latest polling data, Joe Biden has the lowest approval rating of any of his predecessors. Meanwhile, over 96,000 Indians were arrested while crossing illegally into the US between October 2022 and September this year. It’s an all-time high number. In parts of India, this practice is called 'dunki'. It’s also the subject of a movie which is slated for release this month. Listen to this episode of the podcast for more on it.

Four years after launching Lemon-Dou in Japan, Coca Cola is all set to test the ready-to-drink alcoholic beverage market in India with the same cocktail. In the beginning, the company is testing the waters in two states. So what does Coca-Cola’s entry into India’s alcohol market mean?  Clearly there will be more than just fizz, as Coca Cola is a household name. Moving on, the Supreme Court has upheld the abrogation of special status of Jammu and Kashmir. The apex court said that Article 370 of the Constitution was a “temporary provision”, which was meant to serve a transitional purpose. So what was the significance of Article 370?  Elections in J&K are likely to be held close to the general elections next year. Let us now turn our gaze to financial markets. Among equity mutual funds, the small-cap category is in the lead with the highest net inflows this year, but right behind it are thematic or sectoral funds, which have emerged as the other popular choice. Find out what is driving traction in these funds and the approach investors should take. Shares of Alphabet -- the parent company of Google -- crashed by about 10% after the company lost an antitrust battle with Epic Games this week. A federal court jury observed that Google’s mobile app store maintains a monopoly in the Android app distribution and payments market. Listen to this episode of the podcast for answers.

The Reserve Bank of India told banks and non-banking financial companies last month to set aside more capital for risk weights. The central bank was concerned about the recent rise in unsecured personal loans. And now, top lenders have asked their fintech partners to curtail issuing tiny personal loans. Paytm has already announced its plan to go slow on sub-50,000-rupee-loans. So is it the end of small retail loans?  The central bank, meanwhile, has said that inflation may soar in November and December. The government too looks circumspect. Its list of food staples facing export restrictions is getting longer as general elections are approaching. Export restrictions on one of the items in the list, which is sugar, were extended beyond October 31 last week. No reason was cited. At the same time, the government also directed sugar mills not to use sugarcane juice or syrup for making ethanol this year. In today’s special segment, find out if it is a good idea. And will it fix the sugar supply? Clearly the ruling party doesn’t want to take any chance as 2024 is the election year. But what does the calendar year 2024 hold for the markets? Will the small-caps continue their dream run? To what extent geopolitics impact market sentiment? Will 2024 belong to debt/bond market investors instead of equity investors as interest rates remain higher for longer? What about FII and DII flows into equities as an asset class? Puneet Wadhwa caught up with Rahul Singh, chief investment officer for equities at Tata Asset Management to find out After this interesting interview, let us now move on to our explainer segment. Google's parent firm Alphabet recently came out with its most advanced artificial intelligence model, called Gemini. It is Alphabet’s highly anticipated AI model, which may blow people off their feet with its reasoning capabilities. Let us find out more about it in this episode of the podcast for more.

December 3 state poll results re-ignited an old debate -- one around the country’s regional divide. Remarks by a few politicians from southern states, which were later slammed by both the BJP and the Congress, once again trained light on north versus south divide. So how different are these two regions economically? Is this divide for real? Clearly, some north Indian states have to do a catch up. Meanwhile, it looks like the government is trying to catch up with its increasing spending, especially on subsidies. It has now sought Parliament’s approval for additional spending of 1.29 trillion rupees. So, what does this extra cash outgo mean for government finances?  Fertilizer stocks jumped about 7% last week after the government submitted supplementary demand for grants. Moving on, December has been a bumper month for domestic equity markets so far with the Nifty index crossing 21,000 on Friday and the Sensex eyeing the 70,000 level. As we enter a busy week, which factors are likely to influence the market’s direction, and what do technical charts suggest?  Financial markets keenly await presentation of the Union budget. But being an election year, the budget -- which will be tabled on February 1 next year -- will be interim. And Finance Minister Nirmala Sitharaman has said that it won’t have any “spectacular announcement”. But what is an interim budget? Listen to this episode of the podcast for answers.

China is again grappling with a repertory disease. Hospitals in several parts are operating at full strength for the last two months. Some are calling it “walking pneumonia” -- which is mostly taking children into its grip. Several European countries and the US too have reported a sharp spike in child pneumonia cases, fanning concern of another pandemic-like situation. While medical experts believe there’s no need to hit the panic button just yet, it is a good time to take stock of India’s preparedness.  Over two years of pandemic took a heavy toll on human lives, and also on the businesses. The toll on businesses would have been much worse if not for the internet. But India’s internet growth rate has been slowing down for the last two years. It coincides with the fall in sales of entry and mid-level smartphones. So exactly what is holding back India’s internet growth?  Let us now turn our gaze to financial markets. The Reserve Bank of India’s policy outcome today could move rate-sensitive stocks across banks, financials, auto, and real-estate pockets as most analysts expect the central bank to maintain a status quo on rates. The eventual rate cuts next year, they believe, could lead to positive moves for these pockets. So, how should you position these stocks in your portfolio?    Well, time will clear the air on RBI’s next move. And how markets will react to it. Moving on, Amazon founder and the world’s third richest man, Jeff Bezos, is trying to turn back the hands of time. In this era of technology, he is building a giant clock in the hills of Texas which will keep time for the next 10,000 years. Yes, you heard it right. Find out more about this ambitious project in this episode of the podcast.

China is again grappling with a repertory disease. Hospitals in several parts are operating at full strength for the last two months. Some are calling it “walking pneumonia” -- which is mostly taking children into its grip. Several European countries and the US too have reported a sharp spike in child pneumonia cases, fanning concern of another pandemic-like situation. While medical experts believe there’s no need to hit the panic button just yet, it is a good time to take stock of India’s preparedness.  Over two years of pandemic took a heavy toll on human lives, and also on the businesses. The toll on businesses would have been much worse if not for the internet. But India’s internet growth rate has been slowing down for the last two years. It coincides with the fall in sales of entry and mid-level smartphones. So exactly what is holding back India’s internet growth?  Let us now turn our gaze to financial markets. The Reserve Bank of India’s policy outcome today could move rate-sensitive stocks across banks, financials, auto, and real-estate pockets as most analysts expect the central bank to maintain a status quo on rates. The eventual rate cuts next year, they believe, could lead to positive moves for these pockets. So, how should you position these stocks in your portfolio?  Well, time will clear the air on RBI’s next move. And how markets will react to it. Moving on, Amazon founder and the world’s third richest man, Jeff Bezos, is trying to turn back the hands of time. In this era of technology, he is building a giant clock in the hills of Texas which will keep time for the next 10,000 years. Yes, you heard it right. Listen to this episode of the podcast to know more.

Indian economy expanded by 7.6 per cent in the second quarter of this financial year, much higher than the Monetary Policy Committee’s projection of 6.5 per cent. The pace of expansion surprised most economists, even as RBI Governor Shaktikanta Das had dropped hints about it during an Business Standard summit. But, what does the fine print tell us? What are the details that stand out?  But an impressive growth doesn’t always translate into good infrastructure which can withstand nature’s test. Heavy rains triggered by a cyclone have once again brought several parts of Chennai and nearby districts to a standstill. Despite spending hundreds of crores on building storm water drains, there is no end to flooding. So could the Chennai calamity have been avoided? Kasthuri Akhil caught up with Jaya Dhindaw of World Resources Institute -- an NGO that studies urban challenges and offers solutions to make cities more liveable and sustainable.  Moving on, all eyes are on the three-day meeting of RBI's rate setting panel. Its decision, which will be announced tomorrow on December 8, remains a crucial trigger for equity markets, which are holding onto their recent strength and making record highs. Find out what is expected from Friday’s RBI policy, its likely impact on equity markets and other factors that will be watched out  Staying with the markets theme, the National Stock Exchange is mulling deferring indefinitely the internal deadline set for extending trading hours. Longer trading hours are expected to enhance the profitability and volumes of the country’s top bourse. In this segment of the podcast, find out more about trading hours.