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- Bit by Bit 29th November || Mahindra recalls Scorpio-N & XUV700 || Musk and Apple at odds over twitter & More
Bit by Bit 29th November || Mahindra recalls Scorpio-N & XUV700 || Musk and Apple at odds over twitter & More
Good Morning Readers! Giving you one more reason to read Bit by Bit!
Anyways, here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
NIFTY 50 : ₹18,562.75 (+0.27%)
BSE SENSEX : ₹62,504.80 (+0.34%)
NIFTY BANK : ₹43,020.45 (+0.08%)
USD/INR : ₹81.62 (-0.08%)
BRENTOIL : $84.48 (+0.94%)
MCXGOLD : ₹52,231 (-0.60%)
FII Net Cashflow : + ₹936 crores
DII Net Cashflow : + ₹88 crores
(Market data as of 11:00 PM on 28/11/2022)
ECONOMY
Key Facts
Price gains have stayed above RBI’s 2%-6% target since the start of 2022, and the central bank seeks to cool it to 4% by 2024
GDP probably rose 6.2% in the three months to September from a year ago, slowing from 13.51% in April-June
The Story
According to economists from Goldman Sachs Group Inc. and Barclays Plc., India's yearly economic growth would decelerate to about 6% for a few years. That, they say, isn't such a bad thing.
According to Rahul Bajoria of Barclays, GDP growth of about 6% is a sweet spot for Asia's third-largest economy to return inflation to the Reserve Bank of India's target while also narrowing budget and current account deficits. Price increases have been over the RBI's 2%-6% target since the beginning of 2022, and the central bank hopes to reduce them to 4% by 2024.
Slower growth in India would also be consistent with a much deeper global slowdown, according to Axis Bank Ltd. senior economist Saugata Bhattacharya. "Reduced demand will assist contain the current account deficit and allow for a higher inflation glide path."
According to a Bloomberg survey, economists expect India will grow at 7% this fiscal year ending March, before dropping to 6.1% the next year. Inflation is also expected to fall to 5.1% in the fiscal year ending March 2024, down from 6.7% in the current fiscal year.
FMCG
The Story:
It has almost been three decades since Ramesh Chauhan sold his stake in Thums Up, Gold Spot, and Limca to Coca-Cola. Now, he would be divesting Bisleri International to Tata Consumer Products Limited (TCPL) for around Rs 6,000-7,000 crore. As part of the overall deal, it is expected that the current management would continue for two years following the closing of the transaction. Chauhan has not demonstrated interest in retaining a minority stake after having disposed of the business.
As one of the top three FMCG companies in the industry, Tata strives to be a leader in the fast-moving consumer goods sector. With the acquisition of Bisleri, along with pre-existing products like Himalayan, Tata Copper Plus Water and Tata Gluco+, the TCPL is likely to emerge as the market leader.
As far as the implications on competing players are concerned, the proposed deal is likely to have a considerable impact. Mostly, when an acquisition takes place in the market, the other players in the industry also engage in a bidding war for remaining targets, which usually results in overvalued transactions. Furthermore, apart from a scenario where an acquisition results in a monopoly, when two robust players in the market join forces, the competitiveness of the market automatically tenses up. This often leads to reduction in the prices because of the consolidation in market, and higher productivity.
On the macro level, the prices of similar products should reduce given the increased variety to benefit the consumers. However, as a result of the acquisition, the smaller companies may be forced to exit the market owing to cutthroat competition. The effect of the proposed combination would result in a bigger space for the Indian retail sector — not only limited to packaged mineral water segment. The logic behind the proposed combination is clear — cost synergies as also cross-selling of Tata’s water brands to Bisleri. Furthermore, with more than 5,000 delivery trucks and over 4,500 distributors’ network, Tata will be getting higher volume — a 30 percent share of the organised market, and value-add to its existing brands.
While the proposed combination would bring in a cost savings and effectiveness for the merged entity, the deal construct could trigger certain sectoral regulations. The Competition Commission of India will have to be notified of the proposed combination and relevant approvals will have to be taken in the event that prescribed thresholds are crossed. The standards of drinking water will have to be met in accordance with the applicable regulatory specifications.
AUTOMOTIVE
The Story :
According to reports, Mahindra has recalled the just-released Mahindra Scorpio-N and XUV700 SUVs. CarToq reports that the business has recalled the SUV due to a vendor quality control issue that may have impacted the "operational dimensional clearance" of the rubber bellow found inside the clutch bell housing.
This comprises 12,566 units of the XUV700 and 6,618 units of the Scorpio-N. (all manual transmission units).
Both of these Mahindra SUV owners will receive separate calls from the dealerships. The aforementioned vehicles will be evaluated, and any necessary repairs will be completed without charging the clients any more.
TECH
The Story
Due to worries about Mr. Musk's content filtering intentions for the site, several businesses have stopped spending on Twitter around the time of the conflict. According to Mr. Musk, Twitter has experienced a "huge" loss in revenue. He attributes this to activists' pressure on advertisers. He accused Apple of "censorship" and criticised its practices, notably the fee it charges for purchases made on its app store, in a series of Tweets on Monday.
Mr. Musk, who paid $44 billion for Twitter last month, is under pressure as some businesses cut back on spending. Although he has stated that he wants to monetize Twitter verification by making it a paid membership service, the vast bulk of the site's income now comes from advertising. According to The Washington Post, Apple was the largest Twitter advertiser in the first quarter of 2022, spending $48 million on the social network.
Companies that have stopped spending in recent weeks include General Mills, the manufacturer of Cheerios, and Volkswagen. A watchdog website, Media Matters, stated last week that half of Twitter's leading advertisers had stopped using the platform due to worries about Twitter's future.
Want a BIT More?
Key Facts:-
It has been specifically designed and developed to be cost-effective and to enable intranasal delivery by nasal drops.
The Indian government provided funding for product development and clinical trials under the COVID Suraksha Program of the department of biotechnology.
The vaccination platform, iNCOVACC, has the dual advantages of speeding up the development of variant-specific vaccines and facilitating simple nasal delivery.
Story:-
On Monday, Bharat Biotech announced that its intranasal Covid-19 vaccine, known as iNCOVACC, had become the first in the world to receive emergency use authorization (EUA) for both primary vaccination and heterologous booster vaccination for those who have already received two doses of another vaccine. For people who are at least 18 years old, both EUAs have been obtained.
iNCOVACC is a pre-fusion stabilised SARS-CoV-2 spike protein derived from the Wuhan strain that is incorporated into a recombinant, replication-deficient adenovirus vectored vaccine. The vaccine manufacturer, based in Hyderabad, stated that now that the vaccine has received permission from the Indian pharma authority, it would announce the launch dates, price, and availability of the vaccine in due course. Following its integration with the Cowin site, the vaccine is anticipated to be made accessible for administration.
