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- Bit by Bit 7th November || Banks in adjustment mode over increasing loan demands || Maruti's future plans & More
Bit by Bit 7th November || Banks in adjustment mode over increasing loan demands || Maruti's future plans & More
Good Afternoon! A beautiful week with countless opportunities has begun.
So, here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
NIFTY 50 : ₹18,117.15 (+0.36%)
BSE SENSEX : ₹60,950.36 (+0.19%)
NIFTY BANK : ₹41,258.45 (-0.10%)
USD/INR : ₹82.02 (-0.86%)
BRENTOIL : $98.09 (+3.61%)
MCXGOLD : ₹50,866 (+1.36%)
FII Net Cashflow : + ₹1436 crores
DII Net Cashflow : - ₹548 crores
(Markets data as of 11:00 PM on 4/11/2022) Markets were closed on weekend.
ECONOMY
Key Facts
Loan demand from companies and customers has pushed the credit growth to 17.95% as of October.
Deposit Collection has taken hit, as the five-year average is still at the 9.4%.
The Story
Indian companies and customers have increased the demand for credit. In general, the consecutive increase in CPI has reached 7.4%, and the next CPI data is expected to be at the same level (which will be released on the 12th of November). This increase in Inflation is seen all over the world, hence the RBI has increased the Repurchase Rate (Repo Rate) for the Banks in the last 5 months to accommodate the inflation within the limits of 6%.
Whereas Indian Banks have seen a huge demand in the credit market, and are expecting credit growth to remain high. The Lenders are dependent on the debt funds and deposits from customers to match the supply for the credit requirements. With the deposit collection not keeping up with the pace of the rise in credit demand, Banks have taken the roads to lure customers to increase their deposits. This is one such example of banks' adjustments to the higher demands of loans. Each Indian Bank strategized differently to match the supply.
AUTOMOTIVE
Maruti to launch more SUVs, focus on new plants; will invest ₹7k crore
Key Facts
Maruti Suzuki India is to spend more than 7,000 crores this year on a number of projects, such as the development of its new facility in Haryana and the introduction of new models.
The largest automaker in the nation has already started work for a new site in the Sonipat district.
The Story
The CFO Ajay Seth explained the investment plans and stated that the money set aside would be used for a variety of purposes.
With its two manufacturing facilities in Haryana and its parent company Suzuki Motor's site in Gujarat, Maruti Suzuki India (MSI) can currently produce more than 22 lakh vehicles annually. Together, the two Haryana facilities (Gurugram and Manesar) produce about 15.5 lakh units a year.
The company's third establishment in the nation, the Kharkhoda-based facility, is anticipated to be operational by 2025 and have a first-phase installed production capacity of 2.5 lakh units. Maruti Suzuki had announced in May, to invest ₹11,000 crores in the first phase of the Sonipat facility.
"We'll need to make orders with several vendors (for the Sonipat plant). That will therefore make up a sizable chunk of the CAPEX "Seth said
He continued, "We must invest in tooling and other things for all our new model launches. That will likely require a large amount of capital expenditure. These two areas will therefore have the highest CAPEX."
The CAPEX would also go into other areas like R&D, and regular maintenance among others, Seth added.
FMCG
The Story
The FMCG sector saw pressure on volume in the September quarter as high inflation persisted, but it anticipates an improvement in its margins and hopes to return to the rural market by the third quarter.
With the start of the holiday season, a healthy monsoon, and a good agricultural harvest in the rural areas, producers of fast moving consumer goods (FMCG) are now witnessing green shoots of recovery.
Listed FMCG businesses like HUL, ITC, Dabur, Nestle, Tata Consumer, Britannia, and Marico reported margin erosion in the July–September quarter along similar lines to the prior quarter and noted the demand situation remained difficult with inflation having an impact on consumption. However, FMCG companies anticipate a sequential improvement in their gross margins and mid-single-digit volume increase as a result of the softening of commodity prices for palm, khopra, etc.
Despite all of this, the FMCG manufacturers are still concerned about how the weakening Indian rupee compared to the US dollar may affect their imports.
TECH
The Story
The new Twitter CEO has made up his mind that he is okay with being jeered about the $8/month blue tick fee, but he won't back down from it. Musk implied that he would rather to be teased by the Twitterati than modify his mind when he tweeted, "Trash me all day, but it'll cost $8." He has received criticism on Twitter for his decision to charge for the Twitter blue tick ever since he said he would charge $20/month for it.
Musk has made some significant organizational changes at Twitter after finalizing his purchase of the company late last month. The most recent example is the wave of mass layoffs that started on Friday and which some Twitter employees actually experienced. Among other places and divisions, Musk laid off about 180 people in India.
The CEO of Tesla has also chosen fresh faces to assist him in overhauling Twitter. One of Musk's picks, American entrepreneur and podcaster Jason Calacanis, tweeted a few days ago to inquire if users would be ready to pay for a Twitter Blue subscription in order to maintain their blue ticks. Brian Chesky, the CEO of Airbnb, responded by saying that getting verified should be free for everyone.
Want a BIT More?
Total Eclipse of the Moon on 08th, 2022, Tuesday, 17 Kartika, 1944 Saka Era
Key Facts
When the moon rises, the eclipse is visible throughout India. However, as the phenomenon will already be underway before Moonrise, neither the partial nor total phases of the eclipse will begin to be visible from anywhere in India.
South America, North America, Australia, Asia, the North Atlantic Ocean, and the Pacific Ocean will all be able to see this eclipse
On a full moon day, a lunar eclipse happens when the earth passes directly between the Sun and the Moon and when all three celestial bodies are in line.
The Story
A lunar eclipse will occur on 8 November 2022 (17 Kartika, 1944 Saka era). From the eastern regions of the country, both the full and partial phases are ending. From the rest of the country, only the partial phase's conclusion is visible. At 14:39 IST, the eclipse will officially start. Totality will begin at 15 hours and 46 minutes IST. The totality will end at 17:12 IST. and the partial phase will end at 18:19 IST. The following lunar eclipse, a partial eclipse, will be visible from India on October 28, 2023. The last lunar eclipse that India could see was a partial eclipse on November 19, 2021.
On a full moon day, a lunar eclipse happens when the earth passes directly between the Sun and the Moon and when all three celestial bodies are in line. A partial lunar eclipse only occurs when a portion of the moon passes through the umbral shadow of the Earth, whereas a total lunar eclipse happens when the entire moon does.
