- Bit by Bit
- Posts
- Bit by Bit 2nd Dec. || Tesla to recall about 435,000 cars in China || Official introduction of the Digital Rupee: Some points to remember about how it functions & more
Bit by Bit 2nd Dec. || Tesla to recall about 435,000 cars in China || Official introduction of the Digital Rupee: Some points to remember about how it functions & more
Good Morning Readers!
Anyways, here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
NIFTY 50 : ₹18,812.50 (+0.29%)
BSE SENSEX : ₹63,284.19 (+0.29%)
NIFTY BANK : ₹43,260.65 (+0.07%)
USD/INR : ₹81.17 (-0.20%)
BRENTOIL : $87.92 (+1.09%)
MCXGOLD : ₹53,405 (+1.76%)
FII Net Cashflow : - ₹1564 crores
DII Net Cashflow : + ₹2665 crores
(Market data as of 11:00 PM on 1/12/2022)
ECONOMY
Key Facts
Govt. distributed a total of 20.2 million tons of rice and 12.2 million tons of wheat under the public distribution system at discounted prices.
This represents an increase in food subsidies of Rs 1.3 lakh crore (0.5% of GDP) over the budget estimate of Rs 2.1 trillion (0.8% of GDP).
The Story
While the Reserve Bank of India contributed by raising interest rates to reduce inflationary pressures, the government seems to have gone above and beyond to control the key component of inflation – food. According to economists, including those at Goldman Sachs, government actions such as the release of stock, limited exports, and increased imports have done more to keep prices from soaring.
Following Russia's invasion of Ukraine, prices for food and fertilizer increased globally, however, there was very little increase in food costs in India. According to Rahul Bajoria, chief economist for India at Barclays Capital, "higher subsidies on fertilizers and excise-duty cuts for petroleum products have blunted the inflationary impact of the Russia-Ukraine war, which has contributed to reducing inflation differentials between India and the rest of the world."
Government financial concessions may not have a negative impact on the overall state of the economy's finances because of the budgetary space afforded by buoyant revenues. Strong revenue, especially from direct and indirect taxes, has been a major tailwind for consolidation initiatives. Hastened formalization and improved due diligence have also helped. According to Radhika Rao, senior economist at DBS Bank, this has helped to balance a larger subsidy outlay and implement administrative steps to absorb price rises. "The policy committee is anticipated to maintain a hawkish leaning but move in smaller increments," according to the report. "Energy prices are going off the boil and the inflation peak is behind us."
FMCG
The Story:
Consumer goods majors have been hit hard by inflation over the last few quarters, with volume growth taking a backseat. Growth has been driven by multiple price hikes that the players took – and not volume growth. The road ahead looks better as commodity prices are cooling, and price cuts could even spur consumption. Even though affluent India’s consumption is holding up well, volumes from mass-market and categories that benefitted from Covid, like healthcare and hygiene segments, were affected by inflation.Revenue growth was driven by price hikes, with volumes remaining subdued across categories. The volume contraction was more pronounced in rural areas. Companies expect rural demand to recover in the second half of FY23 on the back of government interventions, a good monsoon, and higher crop realizations,In addition to a cut in corporate tax rates, lower ad spending has been aiding the sector’s earnings growth for the last five fiscal years despite the muted increase in revenues and gross profits. But now, ad spending might resume bringing back consumers who have been downtrading to cheaper unbranded products for the last six months, leaving little scope for a strong margin recovery.
AUTOMOTIVE
The Story :
Days after recalling approximately 80,000 vehicles in the largest auto market in the world, Tesla Inc. is now recalling more than 435,000 vehicles in China.
According to China's State Administration for Market Regulation, a software flaw prevents the rear lights of the car from lighting up, potentially affecting 142,277 Model 3 sedans and 292,855 Model Y automobiles.
In China, technical problems for Tesla are getting worse. Last week, the American electric car manufacturer issued a recall for more than 80,000 vehicles in China due to software and seatbelt problems.
One of the most significant markets for Tesla is China. The corporation has a sizable factory in Shanghai and has recently sold a record number of cars built in China.
Elon Musk's automaker, meanwhile, is also up against more fierce local competition from startups like XPeng, Nio, and Li Auto as well as BYD, which is financed by Warren Buffett. In addition, a large number of new electric vehicles are expected to be released in 2023.
TECH
Official introduction of the Digital Rupee: Some points to remember about how it functions
The Story
The digital Rupee, officially introduced by the Reserve Bank of India (RBI), is a new digital token. Some banks in specific cities will offer the digital Rupee (e-R) for sale and trading. Here are five things to consider regarding the digital Rupee if you intend to purchase India's official digital Rupee.
Digital currency is different from cryptocurrency- The digital Rupee is also known as Central Bank Digital Currency (CBDC) which ultimately means that it is backed by the Central Bank of India. The main difference is that cryptocurrency is decentralized, whereas digital Rupee will be regulated and controlled by RBI, which will decide all the parameters. Cryptocurrency’s value also fluctuates with respect to the transactional volume. But, here, the value of the digital Rupee will be fixed and will be considered as legal tender in India.
Where can you buy the digital Rupee- State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank are the four banks that have been granted licences by the RBI as part of the pilot programme to issue digital rupees in India at the moment. The distribution of digital rupees in India will also soon be possible through four other banks: Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank. As of now, only Mumbai, New Delhi, Bengaluru, and Bhubaneswar may access the digital rupee.
How to buy digital Rupee- Users will be able to purchase the digital Rupee from the four designated banks stated above using the official app or website. There is currently no precise information on whether these banks will permit consumers to purchase digital Rupee through their current apps or will introduce a new app or website only to deal in digital Rupee.
Digital Rupee Vs Physical Rupee- In most places, this can be used just like the Physical Rupee. You won't be able to withdraw your money in the form of Physical currency. However, commercial banks can be used to exchange digital rupees for cash. Money that is in your bank account typically earns interest. The value of the digital Rupee will not change, and it will not accrue any interest.
Want a BIT More?
Team England on Thursday rewrote the record books, smashing 506 runs on the opening day of the Rawalpindi Test against Pakistan. The previous record for most runs on Day 1 of a Test was 494, set 112 years ago in December 1910 in the match between Australia and South Africa. England’s top order comprising Zak Crawley (122), Ben Duckett (107), and Ollie Pope (108) all hit centuries after skipper Ben Stokes opted to bat after winning the toss.
Harry Brook (101*) was the fourth Englishman to score a ton on the opening day of the Rawalpindi Test as the visitors ended the day at 506 for 4, smashing a century-old record. Pakistan bowlers were made to toil hard on the flat Rawalpindi track, with leggie Zahid Mahmood giving away the most runs -- 160 -- in his 23 overs for two wickets.
England had Brook and Stokes (34) unbeaten at the crease at the close of play. Overall, 588 is the maximum number of runs scored in a single test day. The England-India Test in Manchester in 1936 saw the hosts pile up record runs on the second day, which still stands unbroken.
