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- Bit by Bit 30th Oct || IPOs || Rethinking Worksheets || Apple India FY23 Revenue
Bit by Bit 30th Oct || IPOs || Rethinking Worksheets || Apple India FY23 Revenue
BGS Committee
October 30, 2023
Greeting IMTians! Your favorite newsletter, “Bit by Bit”, is back - A fun and exciting way for B-school students to get the most interesting and relevant news daily right at their fingertips.
Here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
BSE SENSEX : ₹64,112.65 (+0.52%)
NIFTY 50 : ₹19,140.90 (+0.49%)
NIFTY BANK : ₹43,039.15 (+0.60%)
USD/INR : ₹83.25 (+0.01%)
GOLD MCX : ₹61,268.00 (+0.18%)
BRENTOIL : $87.83 (-2.79%)
FII Net Cashflow : - ₹1,761.86
DII Net Cashflow : + ₹1328.47
BFSI
Key Facts:
Zerodha has entered the mutual fun industry
They are launching 2 NFOs with LargeMidcap250 index
Comes with a 3 year lock in period with tax benefits.
The stocks are diversified at a 50:50 midcap and largecap ratio across 20 sectors.
The Story:
Zerodha Fund House, the latest entrant in India's asset management sector, has initiated its foray into mutual funds by introducing two New Fund Offers (NFOs). The company, in partnership with fintech platform smallcase, plans to revolutionize the industry akin to Vanguard's approach. Zerodha Fund House's unique strategy revolves around offering solely passive funds with direct plans, eliminating transaction charges for investors. The initial offerings include two index funds that mirror the Nifty LargeMidcap 250 Index. The company aims to establish transparent and straightforward mutual fund options accessible to everyone. CEO Vishal Jain emphasized their focus on developing index funds and ETFs with broad-based exposure, with plans to diversify into more solutions and use-cases in the future.
Zerodha Fund House's entry marks a departure from the traditional active fund management approach, opting instead for a passive investment strategy. By concentrating on index funds and ETFs, the company aims to simplify investment choices for investors. Their commitment to transparency and the absence of transaction charges align with their vision of making mutual funds more accessible and user-friendly. As they expand their offerings, Zerodha Fund House aims to cater to a wider range of investment needs, emphasizing simplicity and inclusivity in India's asset management landscape.
FMCG
Key Facts:
The largest FMCG company in India, Hindustan Unilever, has decided to reduce soap and detergent prices during the festive season.
The reduction is attributed to lower commodity prices in India, allowing them to increase volumes and compete with local market players.
Amid inflation, smaller regional brands have shown notable growth in sectors like tea and detergent bars, prompting Hindustan Unilever to focus on smaller and regional brands to remain competitive.
The Story:
Hindustan Unilever, India's leading FMCG company, has opted to cut soap and detergent prices during the festive season due to the decreased raw material costs in the country. This move aims to leverage lower prices, boost sales volumes, and counter the growing competition from local brands. Inflation has seen smaller regional brands gaining ground, compelling Hindustan Unilever to adapt its strategy by focusing on these smaller brands to sustain market competitiveness. Despite economic challenges, Hindustan Unilever reported a modest 3 percent growth in the last quarter, reflecting their ongoing efforts to navigate the market's complexities through price adjustments and strategic brand focus.
TECH
Key Facts:
Cybersecurity and Resilience: In 2023, it will become more important than ever that network operators take all appropriate steps to secure themselves from both cyber-attacks and turbulent market conditions.
Cloud Adoption:Telecom service providers will continue to see the benefits of moving critical IT infrastructure into the cloud – public, private and hybrid – rather than activating more private data centers.
Artificial Intelligence: Artificial intelligence (AI) has the power to transform just about every industry, and the telecom industry is certainly no different.
The Story:
JioSpaceFiber was launched this friday (27th Oct, 2023) on the eve of Indian Mobile Congress, held at New Delhi. It is a satellite based communication service offered by Jio to facilitate the connectivity in remote areas of India. Jio connected four remotest areas in India with its service. These places are Gir(Gujarat), Korba(Chhattisgarh), Nabrangpur(Odisha) & Jorhat(Assam). Jio promised a speed of 1 gigabit per second with its service using a 5G outdoor small cell (a small device hung on a street lamp) acting as a 5G base station to distribute satellite signals to 2G,3G,4G,5G or Wifi devices.
Both the companies will compete to get the license of spectrum to be able to make their services commercially available. Reliance Jio president, Mathew Oommen said that an auction should be conducted by the government for the airwaves used for satellite spectrum as it is a scarce natural resource and should be charged a fair price. He also said that soon the service will be rolled out globally offering competitive tariffs to people at large.
ECONOMY
Key Facts:
Stressed asset stabilization fund, a special purpose vehicle to house bad loans, is being wound down.
SASF was set up as a trust by GOI in 2004 to isolate bad loans of IDBI bank.
Around Rs 900 cr of non-performing loans of IDBI Bank were transferred to this trust at the time of its inception.
The Story:
SASF is at the end of its life cycle. It was set up as a trust by GOI to isolate bad loans of IDBI bank, so that bank could have a cleaner balance sheet. The trust has 20-year life. The non-performing loans will be sold when the exercise will be completed. After getting 9000 cr loans from the bank, it has been able to recover 6000 cr of the bad loans. In 2 step transaction undertaken in 2004, the GOI extended loans to SASF of 9000 CR and the latter subscribed to 0 coupon government bond of the same value. SASF then assigned the bonds to IDBI bank as a consideration for transfer of the latter’s stressed assets to itself. Public accounts committee president pointed out that, despite the fact that exchange of the cases was not permissible, 8 cases were transferred to IDBI bank in exchange of 3 cases, it was found that in 8 cases against a total loan of 1522.29 cr, the recovery made was just RS 1659cr.
Anything Interesting
Key Facts:
A courier company was booked for attempting to send a liquor parcel from Gurugram to Bihar.
The parcel contained 1,100 pouches of whiskey, packaged as medicine samples.
Inderjeet, assistant manager of Delhivery Ltd, reported the incident after discovering the liquor in their warehouse.
The police recovered all the whiskey pouches, each containing 180 ml of liquor.
An FIR was lodged against the IMT courier service company under section 420 of the Indian Penal Code and the Excise Act.
More details are awaited after the arrest of the person who booked the courier.
The Story:
A courier company has been booked by the police for attempting to send a large quantity of liquor in a parcel to Bihar. The incident occurred when a delivery company, Delhivery Ltd, received a shipment from IMT courier service company, supposedly containing medicine samples. However, upon inspection at Delhivery's warehouse in Manesar, the boxes were found to contain 1,100 pouches of whiskey instead. Each pouch held 180 ml of liquor. The assistant manager of Delhivery, Inderjeet, filed a complaint leading to the registration of an FIR against the IMT courier service company under sections 420 of the Indian Penal Code (cheating) and the Excise Act. The investigation is ongoing, with authorities awaiting the arrest of the person responsible for booking the courier to unveil further details.
