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- Bit by Bit 5th Oct || Happy Dussehra! || India v/s China for Iphones? & More
Bit by Bit 5th Oct || Happy Dussehra! || India v/s China for Iphones? & More
BGS Committee
October 05, 2022
Good Morning!
May we conquer the Raavan of ignorance, greed and anger and lead towards knowledge, generosity and calmness.
To conquer the Raavan of ignorance, here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKETS
BSE SENSEX : ₹58,065.47 (+2.29%)
NIFTY 50 : ₹17,274.30 (+2.25%)
NIFTY BANK : ₹39,110.05 (+2.84%)
USD/INR : ₹81.42 (-0.09%)
BRENTOIL : $91.42 (+2.88%)
MCXGOLD : ₹51,480.00 (+2.62%)
FII Net Cashflow : + ₹1344 crores
DII Net Cashflow : + ₹946 crores
(Market data as of 11:00 PM on 04/10/2022)
ECONOMY
Investors are frantically trying to pinpoint the weakest points in the global financial system as interest rates rise and asset prices decline. Every bear market creates victims that are impaled on a national and corporate level. Thailand's economy collapsed during the 1997–1998 slump, as did ltcm, a hedge fund. In the 2008–2009 recession, Lehman Brothers and Iceland both suffered losses.
Today, one nation has already been eliminated: Britain, where the value of the pound has declined and the central bank has been forced to intervene in the bond market to save the pension system, whose administrators had naively staked a sizable amount of money on sustained low volatility. Credit Suisse, a venerable Swiss company that offers wealth and asset management, private banking, and investment banking, is now thought to be an institutional victim of the great market sell-off of 2022.
This year, its credit-default swaps, which gauge default risk, have increased while its shares have dropped by 55%. Anyone who saw Wall Street corporations struggle in 2008–2009 would be familiar with these two warning signs, as will the managers of Credit Suisse's claims that the bank had a good liquidity and capital position. The confidence panic at the bank this year has a brand-new twist thanks to a flurry of false, irrational, and nasty rumours spreading on Twitter and other social media. Welcome to the social media era's too-big-to-fail issue.
However, Credit Suisse does not, at least thus far, represent a corporate model that, through its spectacular excesses and implosion, represents a more generalized market craziness. Instead, it serves as an illustration of how pressure can build up on a relatively weak corporation as financial conditions tighten and the economy struggles. In numerous other industries, there will be a great deal more of these. The search for "the big one" will continue in the interim on the markets.
AUTOMOTIVE
Key Facts:
The number of utility vehicles (Brezza, Ertiga, S-Cross, XL6, Grand Vitara) increased from 18,459 units in September 2021 to 32,574 units in September 2022.
Alto and S-Presso, which are classified as mini cars, sold 29,574 units. Baleno, Celerio, Dzire, Ignis, Swift, Tour S, and WagonR, which are classified as compact cars, sold 72,176 units.
Tata Motors reported its highest-ever monthly sales of 47,654 units, including 3,655 electric vehicles and 43,999 internal combustion engine (ICE) vehicles.
The Story:
The automobile sector was battling to emerge from the woods at this time last year. It was hampered by the COVID second wave's lingering effects, an increase in input costs, and supply chain issues.Due to a low base from the previous year, an eased semiconductor shortage, a closing supply-demand gap, exciting new launches, and the excitement of a COVID-free holiday season after two years, the automobile sales graph is, however, beginning to trend upward halfway through the current financial year.
The company's second best month in 42 months, according to Maruti Suzuki Senior Executive Director Shashank Srivastava. The industry broke the one million sales barrier in a quarter for the first time. With sales of 19.37 lakh units, the first six months' wholesales are the best ever for the sector. Additionally, Hyundai Motor India also had a 50% increase from the same time last year.
Hemant Sikka, President of M&M's Farm Equipment Sector, claims that the company had its best-ever sales month."Due to the holiday boost, demand stayed robust throughout the month, and we anticipate that it will do so again in October. The mood is upbeat as the Kharif crop harvest gets underway soon and agricultural prices remain stable. An above-average monsoon has raised reservoir levels and increased the soil's moisture content, which is extremely good for better food grain output in the approaching rabi season, the official said.
FMCG
The Story:
Weak rural demand has impacted the country's fast-moving consumer goods (FMCG) sales in the month of September as compared to August, which also saw heavy stocking ahead of the start of festive season, according to data by Bizom -- a retail intelligence platform.
Sales of FMCG products in the urban markets, however, continued to grow even in September.
Bizom pointed out that rural sales were impacted in September due to excessive rainfall in some areas and weak rainfall in some other regions, thereby affecting agri yields and household incomes in the hinterland.
Sales in rural India fell by 14.3 per cent, while urban sales growth stood at 1.1 per cent in September compared to the previous month. Overall FMCG sales in the country fell by 9.6 per cent in September, compared to August.
Rural sales form 65-70 per cent of overall FMCG sales, according to Bizom. Among categories, on a month-on-month basis, commodity products (wheat, rice, edible oil, etc) posted the highest decline in sales by 14.5 per cent, followed by home care products, which was down 8.6 per cent. Personal care, though was an exception with sales flat as compared to the previous month.
TECH
Key Facts:
Locally produced iPhones are valued to $1.3 billion as of march 2022.
Last year India produced about 3 million V/S 230 million iPhones of China
Bloomberg reports suggest an outbound iPhone from India to Europe and the Middle East will be worth $2.5 billion in the next 12 months.
The Story:
For the past five years, India has started manufacturing iPhones in India and has a considerable potential to become the center of export for the tech giants. But can India really compete with China, or are we gaining the advantage from the tussle between US and China?
The tussle to earn the status of the world’s biggest economy between the US and China is helping India to have an unbiased advantage in the world market. This fight currently relies on semiconductor production. Joe Biden’s administration has sanctioned an enormous budget and incentives to manufacture and research semiconductor chips.
The market believes that India has great potential to cater to the exports of the world. But it is a steep climb to even compete with China’s well-oiled ecosystem for manufacturing of iPhone. India will surely gain from the tussle between the two giants. Still, it is undeniable that recent reforms of the Indian government for exports and manufacturing is creating an ecosystem to cater to the demand in Europe and other parts of the world.
Want More Bits?
The Story:
The history of humanity has always piqued interest. What is our origin? What connections do we have to those who came before us? What distinguishes modern humans from extinct hominids? These questions had left us puzzled, well not anymore!
Svante Paabo, a swedish scientist who studied the origin of existing humans from the DNA of our close extinct relatives won the 2022 Nobel Prize in physiology or medicine. Pääbo sequenced the genome of one of our closest extinct ancestors, the Neanderthals (Homo neanderthalensis), and contributed to the spectacular discovery of another previously undiscovered hominin, the Denisovan. He did this by overcoming the enormous technical challenges presented by the degradation of DNA over tens of thousands of years. According to Pääbo's discoveries, both of these species coexisted alongside humans, resulting in a DNA amalgam after modern humans left Africa around 70,000 years ago.
Not only do Pääbo's insights shed light on the origins of humans, but they also shed light on how Homo sapiens achieved enormous success. The main genetic variations that set us apart from Neanderthals and Denisovan, as well as their implications for how Homo sapiens came to rule the earth, are becoming more obvious as a result of Pääbo's discoveries, but more research is still needed.
