Top of the Morning

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, September 19, 2024. My name is Nelson John. Let's get started.

India’s frontline equity indices traded within a narrow range on Wednesday amid market volatility, as investors remained cautious ahead of a crucial US Federal Reserve meeting. The Nifty ended the session down 0.16 percent, while the Sensex also slipped 0.16 percent from its previous close.

As the festive season approaches, online shoppers might find it harder to return fashion, accessories, home decor, and kidswear. Sowmya Ramasubramanian reports that companies like Flipkart and Amazon are setting tougher return policies to boost profits and cut logistics costs. Typically, returns jump 30% during festival sales, but this year, firms might shorten return periods, charge fees, or offer store credit only, particularly for serial returners. While loyal customers might enjoy some leniency, the aim is to curb the costly trend of impulse buys and returns that surge during sales. This strategy includes not just the major e-commerce players but also direct-to-consumer brands, all navigating the trade-offs between customer service and profitability.

With the festival season in full swing, Indians are shopping in bulk, and metro cities are witnessing a shift in large purchases—more people now prefer home delivery. This spells good business for e-commerce and quick commerce firms. However, as demand surges, these companies will need additional manpower to manage and deliver orders. Sowmya Ramasubramanian, Suneera Tandon, and Devina Sengupta report that these firms are expected to increase their workforce by up to 20 per cent between August and December. To meet the rising demand, logistics firms are offering gig workers both monetary and non-monetary incentives.

Many investors place all their bets on equities, driven by their bullish outlook on the Indian stock market and the hope of reaping windfall gains as their portfolios rise. The broader market supports this optimism, with Nifty and Sensex both up over 20 percent in the past year. Finfluencers often advocate for a strong equity-focused approach as well. However, through a fun narrative, Vivek Kaul explains why it’s still wise to consider less thrilling assets like fixed deposits or PPF to maximize your returns.

Singapore's Temasek Holdings is set to acquire an 18-20 percent stake in Cloudnine Hospitals from Peak XV for approximately $125 million. This move comes as Cloudnine, a specialist in mother and baby care, prepares for a public listing next year, with the deal valuing the company at around $600 million, reports Sneha Shah. Peak XV is making its exit after more than a decade, securing a substantial return on its 2013 investment. The transaction is part of a broader cap table realignment for Cloudnine, which also raised funds earlier this year to support its expansion across India's major cities.

India is reassessing parts of its new criminal laws after feedback and judicial observations flagged the risk of potential misuse. The focus is on Sections 85 and 86 of the Bharatiya Nyay Sanhita (BNS), which address domestic violence against women. These sections mirror the old IPC's Section 498A, which was designed to protect women from dowry-related abuse but faced criticism for being misused against husbands and their families. Concerns raised by the Supreme Court over the lack of safeguards have spurred this reevaluation, reports Manas Pimpalkhare. Simultaneously, the law ministry is advocating for arbitration to help address the massive backlog of over 50 million cases in Indian courts, promoting alternative dispute resolution to expedite justice and reduce the burden on the judiciary.

E-commerce orders may be harder to return this festive season

Consumer firms shower gig workers with festive incentives

Invest 100% in stocks? Be aware of the bull market’s investing myths

Temasek set to buy PeakXV’s 20% stake in Cloudnine

Section 498A: Centre may review the domestic violence law

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, 18 September 2024. My name is Nelson John. Let's get started.

Indian benchmark indices, the Nifty and the Sensex, saw a marginal rise on Tuesday as traders remained cautious ahead of US Fed’s policy decision. The Nifty ended the session with a 0.14% gain while the Sensex ended with a 0.11% rise.

On Tuesday, we wrote about Brookfield's plans to venture into the semiconductor fabrication sector. The sector is hot — today, Gulveen Aulakh and Shouvik Das report that the Adani Group wants a piece of this pie too. It's planning a joint venture with Israel-based company “Tower Semiconductor”. The JV will be based in Maharashtra's Raigad district. While the chips to come out of this factory will meet the Adani Group's requirements, they will also cater to foreign demand.

Millions of investors are trying to make a small fortune in IPOs. Every new listing, irrespective of its size, is oversubscribed dozens of times at least. Why? Cases like Bajaj Housing Finance, which doubled when it debuted on Dalal Street on Monday. Listing day gains aren't a new concept, but it's incredibly difficult to secure an allotment for a new IPO. Sashind Ningthoukhongjam writes about strategies one could adopt if they want better chances at securing allotment. You can apply via the shareholder quota, or the small high net investor quota as well. This is a good read for you if you've missed out on some of the blockbuster IPOs we've had this year.

Urban Company's early investors, Steadview Capital, Elevation Capital, and Accel, are eyeing a partial exit, planning to sell off stakes worth $100-150 million. This move is part of a broader trend where early backers cash out before a company hits the public markets, and Urban Company is preparing for an IPO next year. These secondary sales let old investors liquidate at a valuation slightly under Urban Company's estimated $2.6 billion—a strategic move as they near the end of their fund cycles. Mint’s Sneha Shah and Priyamvada C report on the secondary share sale at Urban Company - something that reflects a broader trend in the Indian startup scene.

What's your portfolio mix?.... Most savvy investors would say stocks, mutual funds, gold and real estate. But there's a new player in town: “Rare Collectibles”. Dipti Sharma writes that Indian investors are diversifying into luxury items like art, vintage cars and luxury watches. Rare Japanese whiskeys are part of such investments too, as the market now has both buyers and sellers. Some experts believe that these collectibles will turn into a key asset class. What rich Indians once bought for personal enjoyments, are now treated as investments that could give you decent returns.

Back in 2013, India launched a plan to strengthen small farmers by creating Farmer Producer Companies  or FPCs, giving them the power to negotiate better deals and manage resources collectively, similar to successful dairy co-ops like Amul. Farmers buy shares in these FPCs, which then operate under the Companies Act—this shields them from political and bureaucratic hassles and allows them to tap into government grants. Fast forward to today, and there are over 9,000 FPCs with more than 2 million members, about 28% of whom are women, writes Sayantan Bera. These FPCs have broadened their reach, securing licences to sell everything from seeds to processed foods, helping farmers get better prices and market access. However, it's not all smooth sailing. Many FPCs struggle with getting enough working capital; high interest rates from loans make growth tough.

Is Adani's semiconductor play a long term game?

Struggling with IPO allotments? Tips to boost your chances

Urban Company’s early backers Steadview, Elevation, Accel to sell partial stake

From pink dogs to fine wine, India’s wealthy diversify into rare collectibles

Micro Amul: Are farmer-run companies the next big idea in Indian agriculture?

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, September 17, 2024. My name is Nelson John. Let's get started.

Indian frontline indices ended Monday's trading session with modest gains despite hitting fresh record highs intraday. The Nifty 50 ended the session 0.11 per cent higher, while the BSE Sensex ended with a 0.12 per cent gain.

After delaying hikes last year, Wipro is likely to give a raise to its staff on time this year. Jas Bardia reports that India's fourth-largest IT company is doling out hikes to its 2 lakh employees just in time for the festive season. The hikes will be around three to eight percent on average. The company had rolled out smaller increments in December last year, as opposed to the usual cycle of September or October. Slowly, but surely, India's IT sector is getting back on track.

Millions of soft drink bottles are sold today in India. While glass bottles ruled the sales, plastic bottles are more common today. One thing's clear: it's a good time to be a bottler in India. Coca Cola is considering listing its subsidiary in India. Priyamvada C writes that this move allows the popular soft drink company to cash in on its investment. The parent company can also reduce its exposure risk to seasonal problems. Moreover, FMCGs might consider spinning off their subsidiaries to optimise their balance sheets — much like Coca Cola hopes to do, if the IPO goes through.

The Reserve Bank of India's tightening grip on unsecured loans has fintechs pivoting to secured loans, using assets like stocks and mutual funds as collateral. Companies like PhonePe and Mobikwik are teaming up with non-bank lenders to offer these digital loans, appealing to a tech-savvy crowd that prefers to skip bank visits. Mint’s Anshika Kayastha spoke to fintech insiders who shared that leveraging their digital prowess can reshape secured lending, making it more accessible and efficient. This shift comes as unsecured loan growth cools off, thanks to stricter regulations.

The central government's production-linked incentive schemes have been successful in invigorating certain sectors: solar energy, mobile phone components, semiconductors, and automobiles. Soon, drones too might get such a financial incentive, report Shouvik Das and Mihir Mishra. At 165 crore rupees, the government already has a tiny purse for developing drones. Shouvik and Mihir report that this kitty might go up to 3,000 crore rupees to facilitate better research and local manufacturing of components. 

As India gears up for the festive season, starting in October and stretching until Holi next year, OTT platforms like Netflix, Amazon Prime Video, and ZEE5 are queuing up major releases. They're timing big releases like Netflix’s "CTRL" starring Ananya Pandey and Amazon’s spy series "Citadel: Honey Bunny" with Varun Dhawan, to coincide with holidays and long weekends, aiming to capture the festive binge-watching crowd. During this season, platforms typically see a spike in viewership, writes Lata Jha. While new subscriptions might not jump dramatically, renewals keep steady thanks to special festive offers and campaigns that keep existing viewers hooked. 

Wipro to hand out an average 8% salary hike to its top performers this year

Mint Explainer: Inside the lucrative world of soft-drink bottling manufacturers

Loans against stocks, MFs, FDs on fintech radar amid regulator’s scrutiny

Centre plans ₹3,000-cr PLI scheme to indigenise domestic drone ecosystem

Streaming platforms line up big releases for festive season engagement

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, September 16, 2024. My name is Nelson John. Let's get started.

India’s antitrust watchdog, the Competition Commission of India, just made it easier for companies to get their hands on up to 25% of another company's shares without asking for permission first. This tweak in the merger and acquisition rules is a big deal, especially for those looking at hostile takeovers. Before, you'd have to pause and get a nod from the CCI before buying shares off the market, which wasn't exactly speedy. Now, as long as you're not trying to take control right away, you can go ahead without waiting on that green light. This change means businesses can move faster during the initial buying phases without getting tangled up in red tape, Gireesh Chandra Prasad reports. It’s all part of a bigger push to cut down on the hassle and make doing business a bit smoother in India.

In India, where tradition meets tech, there’s a rising star sector: faith-tech. It’s catching the eye of big-time investors like PeakXV Partners, Blume Ventures, and Matrix Partners. Just recently, AppsForBharat bagged $18 million in a round led by Fundamentum, highlighting the surge in interest. This year alone, the faith-tech sector saw its funding leap to more than $50 million from just $4.3 million last year. This booming sector offers everything from virtual pilgrimages to digital pooja bookings and astrological services, targeting both young Indians and the global diaspora craving a slice of home. However, the sector is not without its challenges. The seasonal nature of religious activities and the necessity to establish trusted partnerships with religious institutions are hurdles these companies continue to navigate. Samiksha Goel takes a deep dive into a sector which is possibly unique to India and has carved a niche for itself.

Family businesses are usually well-oiled machines, as there is a clear hierarchy and established workflows. But when it comes to succession, things get murky. That's exactly what happened with Bharat Forge and its promoter family. A dispute between the managing director Baba Kalyani and his sister Sugandha Hiremath ended up in court after the brother refused to transfer shares to another pharma company. Now, a new court affidavit has come to light that might rule the verdict in favour of Sugandha. Priyanka Gawande and Anirudh Laskar report that this affidavit goes against the claims made by Baba Kalyani, who has allegedly diverted significant assets away from his father.

The Reserve Bank of India has been cautioning the Indian banking industry about the ever-growing amount of loans being disbursed. Finally, the banks are listening: the gap between the credit and deposits is finally narrowing, reports Shayan Ghosh. RBI now wants banks to get innovative in its ways to hold more deposits. It has also come down hard on unsecured loans, fearing a fracture in India's vast financial systems.

Crude oil prices have been crashing, and currently cost around 70 to 75 US dollars. Naturally, expectations of a cut in the price of petrol and diesel have risen. These rates were last revised prior to the general election. Sumant Banerji explains why crude prices have fallen,  the various factors involved in making such a decision, and how likely a price cut is.

That’s all for today. Thank you for listening.

We're eagerly looking forward to our next Top of the Morning episode, which will be packed with fresh business news. Until then, have a great day!

CCI greenlights secondary share purchases, opens the door for hostile takeovers

Bigger than food delivery? Investors rush to bless faith-tech startups

Kalyani family feud could take a fresh turn as a crucial will surfaces

Credit, deposit rates converging on the back of RBI caution

Global crude prices at 3-year low. Will petrol prices see a cut?

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, September 13, 2024. My name is Nelson John. Let's get started.

The Indian stock markets set new record highs yesterday. Nifty was up by 1.9 percent, while Sensex rose by 1.8 percent. But this time it wasn't just benchmark indices that were setting records — even midcaps joined the party. Dipti Sharma explains that Thursday's rally involved a lot of hopes of rate cuts – in China, Europe, and the US. Dipti also answers a crucial question for investors: will the uptrend continue or will investors look to book profits?

Imagine buying a cake but not being allowed to eat it. Confused? Me too. But that's exactly what the Reserve Bank of India wants from a Japanese bank. The Sumitomo Mitsui Bank wants to buy 51 percent of Yes Bank. Fair enough — RBI has been looking for a majority buyer since it intervened to prevent a collapse. But the banking authority wants to cap Sumitomo's voting rights at just 26 percent. The RBI doesn't want the Japanese bank to have the power to veto any big policy decisions, yet is fine with it bankrolling the entire operation. Anirudh Laskar and Gopika Gopakumar bring you the inside details of this rather confusing development.

Lately, several venture-capital insiders have been leaving their jobs at big firms to start their own funds. However, they’re hitting a wall when it comes to drumming up investor interest. It turns out investors are currently more captivated by the juicier returns of the public markets. For example, while some public stocks are offering returns of around 25%, private ventures are lagging behind at about 15%, making them a harder sell as they are also riskier and less liquid. Mansi Verma and Priyamvada report on these new VC firms that are finding it hard to raise funds, especially as limited partners prefer to stick with established managers they trust. 

Sashind Ningthoukhongjam's sister has been pestering him with questions about the best mutual funds to invest in. To help her, and you, Sashind took a deep dive into thematic and sectoral funds, which have been growing by leaps and bounds of late, owing to stellar returns. But here’s the catch. Every year, a different new sector does well. By the time most investors catch on to the trend, the returns start petering out and a new sector takes the top spot. This can lead to excessive churn and more tax. If you’ve been thinking about investing in thematic or sector funds, you can’t afford to miss this story.

The Central Consumer Protection Authority is finalising new guidelines to prevent misleading practices by IAS coaching institutes. Under these guidelines, coaching centres will no longer be able to require UPSC aspirants to sign agreements upon enrollment, allowing the use of their personal details for advertising. Soon, those who pass the exam will be able to choose whether or not to sign such agreements. The new rules clarify that any promotional content featuring former students must be based on explicit consent, helping potential candidates better assess the advertised claims. This policy change is a big win for transparency and protects young aspirants who may not grasp the full implications of signing such agreements when they join an institute, writes Dhirendra Kumar. 

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, September 12, 2024. My name is Nelson John. Let's get started.

Bigbasket's quick commerce game is going strong — not just in big cities, but also in smaller towns. Customers from these cities are spending upwards of 500 rupees per order, Bigbasket CEO Hari Menon told Priyamvada C in an interview. This success points to a wider trend where quick commerce is catching on fast, thanks to the ease of ordering through platforms like Zomato and Swiggy. As Bigbasket pushes its quick commerce branch, BB Now, it’s also bulking up its offerings. It is adding up to 25,000 different products and setting up more dark stores, Menon said.

Influencers who partner with multiple brands will now need to pick just one. Companies want influencers to exclusively promote their products on long-term contracts. Pratishtha Bagai reports that such deals have a wide-ranging impact on the influencer marketing industry that's currently worth 1,900 crore rupees. Pratishtha spoke to companies and influencers, who might soon be at loggerheads due to such conditions. 

The Competition Commission of India is gearing up to potentially hit Amazon with a hefty fine, reports Gireesh Chandra Prasad. This development occurs following an investigation that confirmed the e-commerce giant's anti-competitive behaviour. Amazon is at fault under the new competition laws that could see it facing penalties up to 10% of its global turnover. The case stems from a complaint by a Delhi-based trade association in January 2020, which led to a detailed probe into Amazon’s business practices. The report said that Amazon indulged in preferential treatment and exclusive product strategies of certain sellers.

The market for wearable tech products like smartwatches, earphones, and rings has exploded in India over the past few years. They might not serve much utility outside of tracking your sleep, but they've become a fashion accessory, almost. Four Indian startups — Boat, Noise, Boult, and Fire Bolt are powering this industry. The scale of opportunity in India is so large that these companies turned into global leaders in the wearables category just a couple of years after starting operations. However, the demand has finally tapered off. Sumant Banerji explains the perils of these companies, who are now left holding massive inventory and muted demand in both India and around the world.

Last week, during National Nutrition Week, McDonald’s introduced a multi-millet burger bun in its South and Western India outlets. It was an attempt to offer a healthier alternative to the regular refined flour bun. This new bun comprises around 22% millets like Jowar, Bajra, and Ragi. However, the move has sparked controversy among nutritionists who argue that partnering a government-funded research institute with a fast-food giant like McDonald's could undermine public health objectives. They point out that despite the inclusion of millets, the buns are still processed foods with additives and preservatives. Mint’s Sayantan Bera explains the controversy around McD’s millet bun in today’s primer. 

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, September 11, 2024. My name is Nelson John. Let's get started.

The Indian equities markets rose for a second consecutive trading session yesterday. Both the Sensex and the Nifty rose by around 0.4 percent on Tuesday.

After a lull the previous two years, startup IPOs are back. 10 such new age companies have gone public so far this year. The market is now conducive for such listings, and investors continue to pour in more money than ever. But this isn't just an IPO momentum: investors have held on to their shares well after a bumper listing. But in his detailed story, Abhishek Mukherjee advises some caution. He writes that even the most promising startup will have to beat incredible odds to emerge as a market leader. This process takes many years, if not decades. In a bull market, every stock seems like the next best thing — investors would do well to keep a long-term outlook in mind.

On Monday, Apple's Tim Cook unveiled the latest iPhones. While other companies like Google and Samsung have dipped their toes into AI-driven phones, Apple’s global reach—boasting about 1.3 billion active users—means it has the clout to push AI into the mainstream. Apple's track record of transforming industries, like it did with music through the iPod and iTunes, suggests it could do the same with AI technology, writes Shouvik Das. However, there's some debate about how essential AI is in smartphones right now. While previous Apple innovations like the touchscreen became indispensable, AI features are seen more as helpful extras rather than must-haves at this stage. 

Shouvik also spoke to analysts and retailers, who expect Apple's new phones to make a significant dent in India. A sales boost of nearly 20 percent is expected in the next three months, as the launch coincides with the festive period in India. The average price of the new iphone is likely to be 75,000 rupees, up from 69,000 for the previous model. However, analysts expect a rise in demand due to the new AI features. Get ready to see a host of people with shiny new iphones soon.

India's retail inflation for August is anticipated to remain stable at 3.5%, buoyed by a favourable statistical base effect, according to a survey by Mint of 27 economists. This level is comfortably below RBI’s medium-term target of 4%, suggesting inflation is under control for the second consecutive month. While this might seem like good news, experts who spoke to Mint’s Payal Bhattacharya and Manjul Paul, advised not to jump to conclusions about long-term trends just yet. The stability in August's inflation is partly due to expected declines in food prices, which make up nearly 40% of the inflation basket, but again, this too would be because of a favourable base effect. The real test will be the impact of September's rainfall on food inflation, as adverse weather could disrupt this positive trend. 

Biryani has truly become India's favourite go-to food, not just at festive gatherings but as an everyday meal. Thanks to food delivery giants like Zomato and Swiggy, grabbing a plate of biryani is now as easy as ordering a pizza. Swiggy, in fact, saw a whopping 250 biryani orders per minute during last year's India-Pakistan world cup match! This biryani boom is also spurring a surge in basmati rice sales, especially in bulk. Ayush Gupta from KRBL, a rice processing company, told Mint’s Suneera Tandon that their bulk rice sales have skyrocketed, growing 20-25% each year post-COVID, particularly in the South where biryani is a staple. But the craze isn't just a southern phenomenon anymore; it's nationwide. Recognizing this trend, rice companies are getting creative, rolling out biryani mixes and kits for easy home cooking, aiming to replicate the restaurant experience in your kitchen. Whether it's a match day or any day, it seems like biryani is on everyone's menu.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, September 10, 2024. My name is Nelson John. Let's get started.

Indian equity markets rose on Monday. Nifty was up by 0.34 percent, while Sensex increased by 0.46 percent.

India Inc is tightening its employment contracts and policies to eliminate any ambiguity around remote working. Firms are now clearly stating who is eligible to work from home and the specific hours employees must be available, ensuring remote work isn't seen as an automatic entitlement. Mint’s Neha Joshi and Devina Sengupta spoke to industry insiders who highlighted that this shift helps manage expectations and prevent habitual absenteeism, reflecting a broader move to formalize work-from-home setups. Moreover, to cater to a diverse workforce, companies are expanding their leave categories, including options like pet-parenting leave and marriage preparation leave, which accommodate various personal needs. 

Just two years after climbing out of bankruptcy, Diamond Power Infrastructure Ltd., based in Ahmedabad and known for its electric cables and transmission towers, has seen its fortunes soar to nearly a one billion dollar market cap. A big part of this turnaround? A steady stream of business from the Adani conglomerate, led by Gautam Adani, who happens to be the brother-in-law of Diamond Power's chairman, Rakesh Ramanlal Shah. Although a hefty chunk of Diamond Power’s orders come from Adani companies, these aren’t flagged as related-party transactions in their reports, sparking debate among experts about whether regulations need tightening. Varun Sood reports on how a company on the brink of bankruptcy is now worth almost a billion dollars, thanks to a push from the Adani Group.  

It seems that whatever Vodafone Idea does to get its act together, investors remain unimpressed. Last Friday, its share price sank by 14 percent, after receiving a sell rating by Goldman Sachs. Gulveen Aulakh writes that the report was surprising, given that Vodafone has been desperately trying to raise funds to fill its coffers. It raised 18,000 crore rupees in April, and is in talks with banks to raise nearly 35,000 crore rupees more. It has also taken care of some long-standing debt on its books. However, Vodafone continues to lose market share to Airtel and Jio. Gulveen analyses the company, and writes about its potential in India's deeply worrying telecom sector.

The central government wants everyone to sell EVs. And if the companies don't want to, they might still be forced to. Union road transport minister Nitin Gadkari said automakers that are not manufacturing EVs will be forced to make the shift, due to the competitive nature of the market. Manas Pimpalkhare wrote about Gadkari's speech, where he reiterated that the the government does not feel the need to provide subsidies for EVs any more. He expects the price of I-C-E and EV cars to achieve parity in a couple of years.

Movie theatres are getting savvy with their strategies for re-releasing classic films, seeing a golden opportunity as new releases often get delayed. Films like "Rockstar" and "Mohabbatein" are making a comeback, drawing crowds who are either revisiting old favourites or discovering them for the first time. Devang Sampat from Cinepolis told Mint’s Lata Jha that their marketing isn't just about digital ads anymore; they're also hosting special events and collaborating with influencers to hype these re-releases. They are even roping in original stars like Shah Rukh Khan to help spread the word on social media. Will you be going for a re-released movie?

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, September 9, 2024. My name is Nelson John. Let's get started.

The Indian government is exploring the creation of its first sovereign wealth fund by pooling shares it owns in publicly traded companies. This proposed fund could control assets worth around 50 trillion rupees, sources told Mint’s Mihir Mishra. The government would maintain control by possibly issuing non-voting shares and exploring a "golden share" concept, which grants specific rights without affecting voting power. Globally, about 40 countries have sovereign wealth funds, using them to secure critical assets and improve infrastructure. This new fund could also enhance public sector efficiency by encouraging mergers or reorganizations.

Are you planning on buying an electric vehicle soon? You might want to hurry up, otherwise you’d be forced to upload selfies with your new car to qualify for a subsidy. Alisha Sachdev reports that the central government plans to issue digital certificates to EV buyers under the third phase of its flagship FAME scheme. These certificates will note the subsidy provided by the government. This initiative seeks to vocalise the government’s role in popularising EVs for the masses, but might rub some buyers the wrong way. 

Just ahead of the festive season, India's passenger vehicle sales have taken a hit, dropping for two months straight, with dealers facing a glut of unsold cars. Over 7.8 lakh units worth close to  78,000 crore rupees remain unsold. This year started strong, with sales initially surpassing pre-pandemic levels, but recent figures show a decline of 2.5% and 1.4% in July and August, with a similar trend in retail sales. The current dip in demand is attributed to a high base effect from previous growth spurts and dwindling pandemic-era demand, despite improved production rates due to resolved semiconductor shortages. Sumant Banerji explains why the sale of passenger cars has slowed down in today’s Primer. 

Sundaram Finance controls nearly 6,000 crore rupees worth of deposits. Its loyal customer base has unwaveringly placed its support, despite the company being a non banking financial company. However, Sundaram Finance lags behind peers like Bajaj Finance due to its conservative approach focused on serving the underserved, resulting in slower growth. The Reserve Bank of India wants NBFCs like Sundaram to turn into full fledged banks. Will Shriram Finance take the bait and march towards growth? N. Madhavan tries to answer.I

The UAE's Golden Visa program is catching the eye of wealthy Indians, with about 4,300 people expected to relocate to the Emirate in 2024. The top choice? Dubai. A 10-year renewable residency that can be yours with a minimum real estate investment of around 4.57 crore rupees. Once you've invested, you'll snag a six-month multi-entry visa to start, then head to the UAE for your ID and medical checks. It takes a couple of months to process, but it’s a straightforward path to planting roots in Dubai. This visa isn’t just a ticket to the UAE; it's a gateway to tax benefits and global connectivity. In this piece, Mint Money’s Jash Kriplani takes you through the process of applying for a golden visa. Head to the show notes to read the stories featured in today’s podcast.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, September 6, 2024. My name is Nelson John. Let's get started.

Indian equity markets fell for a second consecutive day on Thursday. The benchmark Nifty index was down 0.21 percent, while Sensex dropped 0.18 percent.

Concerns are growing over the possibility of a US recession, with rising unemployment rates and inflation serving as key indicators. However, as N. Madhavan points out, the US GDP growth remains strong despite these warning signs. Some economists suggest a potential soft landing, where inflation is controlled without leading to a full-blown recession. In his primer, Madhavan explores these scenarios and their potential impact on India.

The market has seen a frenzy of SME IPOs, with many getting oversubscribed by over a thousand times, despite warnings from regulators about potential malpractices. Some of these could soon become penny stocks. Aprajita Sharma highlights the warning signs investors should be mindful of, noting that SME stocks, with their relatively low market cap, are more susceptible to manipulation. In her story, she emphasizes the importance of thorough research to avoid falling victim to promoters looking to offload their holdings at inflated prices.

Change is indeed afoot in Bollywood, with actors becoming more selective about projects they take on. Many are opting out of films that may not resonate with today’s post-pandemic audience, industry insiders told Lata Jha. Biopics and dramas, once staples of the big screen, are now increasingly seen as better suited for streaming platforms. A notable example is Ayushmann Khurrana stepping away from a Sourav Ganguly biopic. So, what’s driving this shift? While the rise of the OTT industry plays a major role, the evolving dynamics of the film industry run deeper. Audiences have raised their expectations, and stars are adjusting by being more cautious about their choices.

This year is proving highly lucrative for lawyers as India's top law firms engage in an intense competition for talent. With retention and discretionary bonuses, faster paths to partnership, and larger salary hikes on offer, firms are pulling out all the stops to retain their best employees. Leading law firms are even bringing in consultants to overhaul their compensation structures. Neha Joshi and Devina Sengupta spoke to insiders who revealed that firms are incentivizing talent primarily through two strategies: offering a quicker path to partnership and enhancing performance-linked incentives. Law firms typically have two types of partners—equity partners, who generate business and receive a share of the firm's revenue, and non-equity partners, who are paid a fixed salary with bonuses. The latter group is now the main focus of these efforts.

Diageo, the world’s largest spirits company, plans to invest $100 million in the Indian market over the next three years, aiming to expand its portfolio of premium spirits. Over the past decade, Diageo has already poured around $3.5 billion into India, focusing on expansion, acquisitions, and investments in cricket properties such as the Indian Premier League. Varuni Khosla and Suneera Tandon report that the company now plans to introduce "craft spirits" for both domestic and international markets, seeking to further boost its dominant market share.

Show notes:

Mint Primer: The chances of a US recession and its impact on India

SME IPO frenzy: The red flags that investors shouldn't ignore

Talent War in Legal Sector: Firms Boost Pay and Partnership Opportunities

Bollywood sees flight to safety as moviegoers raise the bar

Diageo to invest $100 mn to craft new products in India, says top boss