- Bit by Bit
- Posts
- Bit by Bit 21th Oct. || Volvo releases its first homegrown electric SUV ||Personal care and cosmetics categories will see Reliance Retail's debut & More
Bit by Bit 21th Oct. || Volvo releases its first homegrown electric SUV ||Personal care and cosmetics categories will see Reliance Retail's debut & More
Good Afternoon!
So, here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
BSE SENSEX : ₹59,107.19 (+0.25%)
NIFTY 50 : ₹17,512.25 (+0.24%)
NIFTY BANK : ₹40,373.20 (+0.14%)
USD/INR : ₹82.27 (+0.12%)
BRENTOIL : $92.57 (+2.82%)
MCXGOLD : ₹50,212.00 (-0.40%)
FII Net Cashflow : - ₹453 crores
DII Net Cashflow : + ₹908 crores
(Markets data as of 11:00 PM on 20/10/2022)
ECONOMY
The Story:
Despite losing more than $100 billion in foreign exchange reserves in less than a year, India is still doing well in terms of external sector parameters. Global rating agency Fitch said that gross external debt as a percentage of GDP was 18.6% in 2Q22, which is low compared to the median of 72 percent for sovereigns with a "BBB" rating in 2021. The GDP portion of sovereign exposures, covered mainly by multilateral funding, is approximately 4%.
The report stated that foreign investors hold less than 2% of all domestic government debt, which lowers the risk of market spillovers should they decide to cut back on their exposure.
With a reserve cover of nearly 8.9 months of imports in September, it is still solid. This gives the government more flexibility to use reserves to ease times of external stress because it is higher than during the "taper tantrum" in 2013 when it stood at roughly 6.5 months. "Large reserves also give comfort over the ability to pay off debt. Only approximately 24% of overall reserves are equal to short-term external debt due, "said Fitch.
Although the RBI has reaffirmed that it does not have a target level for the exchange rate, it is anticipated that RBI will still use reserves to control exchange-rate volatility. In the near future, this will undoubtedly further reduce reserve buffers, although the effect will depend on the scope and length of the intervention. Domestic forces are mainly responsible for the RBI's tightening monetary policy. However, Fitch noted that there are upside risks to its current prediction that India's repo rate will peak at 6.0 percent in FY24. "As there is a significant chance of rate hikes in the US beyond those in our assumptions, which could put further downward pressure on the rupee and increase imported price inflation.
AUTOMOTIVE
The Story:
The first domestically built electric SUV has been released by Volvo Car India. The business revealed the Volvo XC40 Recharge, which was made at the Hoskote facility close to Bengaluru. The SUV was signalled off by Mr. Pascal Kusters, Plant Head of Volvo Cars. On July 26, 2022, Volvo XC40 Recharge was officially presented in India.
In 2017, the firm started producing its vehicles in India. The business now assembles its flagship SUV, the XC90, its mid-size SUV, the XC60, its compact luxury SUV, the XC40, and its luxury sedan, the S90, at its site in Bengaluru. It intends to increase the lineup of domestically produced vehicles.
Two electric motors will power the Volvo XC40 Recharge. With a 78kWh battery pack, it should be able to produce up to 402bhp and 660Nm of peak torque. According to claims, the electric car can accelerate from 0 to 100 km/h in 4.9 seconds. The SUV has an electronic cap on its top speed of 180kmph. The Volvo XC40 Recharge has a 418 Kms range. It has a starting price of 55.90 lakh rupees (ex-showroom). Volvo Car has demonstrated with this rollout that it is dedicated to providing the finest in technology and environmentally friendly transportation solutions at all times.
RETAIL
The Story :
With offline stores that are most likely to be named "Tira Beauty," Reliance Retail is getting ready to enter the beauty and personal care business in an effort to challenge market leader Nykaa.
The first store is anticipated to open at Mumbai's Jio World Drive in January 2023. In the area of personal care and beauty, it is also anticipated to develop its own online platform, however, this may happen after the store opens.
The largest retailer in the nation is already in the advanced stages of negotiations to acquire Arvind Fashions' rights to Sephora India, giving it offline access to the high-end cosmetics and personal care market.
In order to increase the brand's presence in major cities, the firm has aggressive ambitions for Sephora store development and is already in discussions with a number of mall operators about doing so.
The beauty and personal care market in India was worth Rs 1.26 trillion in 2019, after growing at a compound annual growth rate (CAGR) of 13 percent over the past three years, Nykaa said in its annual report. It shrank to Rs 1.12 trillion in 2020 due to reduced spending during the first Covid wave. This is now projected to grow at a CAGR of 12 percent to reach Rs 1.98 trillion in 2025.
Reliance Retail recently launched a premium fashion and lifestyle store brand Azorte in Bengaluru in its bid to amplify its luxury market presence in the country and also launched its fashion and lifestyle departmental store format — Reliance Centro.
TECH
Key Facts:
Google rolled out My Ad Centre feature to enhance user privacy
The new feature will be available on Search, YouTube, and Discover
The user settings will be applicable for both Google and Non-Google Websites
The Story:
To improve consumer control over their ad experiences and support businesses in a privacy-first environment, Google launched the My Ad Center on Search, YouTube, and Discover on Thursday.
Additionally, users have the option to disable sensitive advertisements, get more information about the data used to customise their ad experience, and manage it according to their preferences. From simple controls on My Ad Center, users may also entirely disable ad personalisation.
Users can elect to turn off tailored advertisements in My Ad Center for both Google and non-Google websites. This option will automatically take effect on any device where they have a Google account signed in.
Want a BIT More?
The Story:
According to specialized employment business Xpheno, the Indian IT sector, which has recently seen outlandish salary raises and incentives, is experiencing economic headwinds and the corporations are reducing the salary hikes and bonuses. Large tech businesses like TCS, HCL Tech, and Wipro are also slowing down and freezing hiring. Data from Xpheno shows that since April 2022, hiring activity for the IT services cohort has decreased by 41%. The hiring activity of tech startups has decreased by 63%, and that of the cohort of software products has decreased by 58%, which has mellowed the talent battle. According to a Business Standard article, the figures point to a general decline of 60–70% in the volume of offers vying for talent. "The hiring volume and velocity decline has resulted in a drop in offer talks and counteroffering," Xpheno co-founder Kamal Karanth said. Market talent now has to pick between a maximum of two offers, down from the previous 7-8 active offers. After a time when the employment market was dominated by skill, the pendulum has definitely turned in the employer's favour. In comparison to last year's numbers, he said the prognosis for pay increases this year is subdued, and he added that they will stay at this level through FY24. Infosys recently revealed voluntary attrition of 27.1% for the quarter ending in September 2022. (Q2FY23). Although it was lower than the 28.4% recorded in the previous quarter, it was higher on a yearly basis than the 20.1% reported in Q2FY22. In the second quarter of the fiscal year 2022–23 (Q2FY23), HCL Tech's attrition (during the preceding 12 months) stayed at 23.8%, while TCS' attrition rate for IT services was 21.5% in the quarter ending in September 2022. (higher than 19.7 per cent in the previous quarter and 17.4 per cent in the March quarter). According to the company, Wipro's voluntary attrition for the quarter was calculated over the preceding 12 months and was at 23%, down 30 basis points from the prior quarter.
