Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, November 22, 2024. This is Nelson John, let's get started.

Billionaire Gautam Adani has been indicted by US prosecutors on charges of bribery and corruption. Varun Sood writes that the US Department of Justice's allegations followed a two-year probe into the conglomerate based on revelations from two whistleblowers. Adani group stocks lost about ₹2.24 trillion in market cap on Thursday after the US charges surfaced, just as the conglomerate seemed to have moved past the impact of allegations made by shorter seller Hindenburg Research last year.

Cotton farmers have begun to shift to rice plantation following recurring crop failures. As rice needs around five times as much water as cotton, this has led to a rapid decline in soil quality. Sayantan Bera writes that India produced cotton in excess and exported more than $10 billion of it last year. However, the change in production patterns could threaten the livelihood of around 45 million people. Despite being the world's second-largest producer of cotton, India is projected to be a net importer of the textile this year. India's cotton yields remain significantly low compared to global averages, leading to this crunch. Sayantan explains how we got here.

As the air quality in Delhi and the National Capital Region gets worse, most schools and many offices have remained shut. Soumya Gupta writes that respiratory issues are on the rise and OPDs are reporting three times the usual number of admissions. People have stopped outdoor activities, and air purifiers, masks and respiratory drugs are selling in record numbers. Many are travelling to hill stations to escape the toxic fumes in the capital. Soumya calls this the "smog economy”.

One category of goods that doesn’t seem to be part of the "smog economy" is electric vehicles. Sales of EVs in Delhi declined 79% in September. Alisha Sachdev reports that the withdrawal of incentives led to a sharp increase in the price of EVs, causing sales to plummet. Alisha writes that as the pollution gets even worse, policymakers may look to bring back these subsidies to incentivise EVs.

If you're an aspiring CEO, prepare for some long and rigorous interviews. Devina Sengupta writes about candidates who have had to endure as many as 11 rounds to bag the top job. These interviews cover a wide variety of topics such as financial strategy, climate change, and even geopolitics. Devina writes this is because companies are extremely wary of big-ticket hires not working out. The hiring process can take more than eight months to complete, underscoring the reduced risk appetite for hiring across India Inc.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, November 21, 2024. This is Nelson John, let's get started.

As more people splurge on travel, the hospitality sector finds itself in a comfortable place. Dipti Sharma writes that several hotel-related IPOs are planned in the near future. Examples include Brigade Hotel Ventures, Schloss Bangalore, and Oyo. Strong travel demand and government initiatives have helped the sector bounce back from a disastrous pandemic period. Room occupancy rates are at near all-time highs, and the industry is likely to reach a total valuation of $475 billion by the end of the decade. Both vacation as well as business hubs are seeing an uptick in business, leading the charge for public listings.

VIP Industries is in talks with a global private equity firm for a stake sale. Sneha Shah reports that Advent International is looking to acquire a controlling stake in the the luggage maker. The promoter group, led by Dilip Piramal, has been looking to reduce its stake in the company for more than a year. Currently, VIP has a market value of more than ₹6,500 crore. The promoters are hoping for a premium of around 10 to 15% on top of that valuation. VIP has a 44% market share in the organise luggage sector, but faces stiff competition from up and coming brands.

Did you know that the Adani Group had a 5G license? That doesn't mean India's beleaguered telecom market is getting another player — large corporates buy spectrum for a variety of reasons. However, Gulveen Aulakh reports that the Group is looking to surrender its share of the spectrum it owns. It had paid ₹212 crore in the 2022 auctions for the spectrum, but maintained inactivity. Since there isn't a rollout, the government has been imposing penalties on Adani for failing to do so. Adani Enterprises had bought the spectrum via a subsidiary to develop a private 5G network at the company's facilities, but that hasn't materialised.

Until the early 2000s, outsourcing in India meant business process outsourcing (BPO) call centres. Today, the business has evolved, morphing into ‘global capability centres’ that serve high-end strategic and innovation needs of US-headquartered companies. India is still attractive because we have plenty of tech talent and relatively cheap real estate. The Karnataka government, sensing a long-term opportunity, has introduced an official GCC Policy. What is it and how will it help GCCs (and jobs) grow in India? Madhurima Nandy explains in today’s Mint Primer.

It hurts to lose ₹50. Imagine how difficult it would be to write off a whopping $500 million. But that's what Prosus, a tech investor, did after the Byju's debacle. Prosus was quick to lick its wounds as it secured a major victory with Swiggy listing publicly. Prosus has been prolific in India, securing deals worth more than $8 billion across 24 transactions. Sneha Shah and Ranjani Raghavan write that unlike traditional venture capital funds, Prosus uses its own balance sheet to invest in companies. This approach allows it to take a long-term approach without having to worry about securing quick, profitable exits. All companies are subject to market fluctuations, and between Byju's and Swiggy, Prosus knows it best.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, November 20, 2024. This is Nelson John, let's get started.

The stock market is down more than 10% from its recent peak. Buying the dip is generally considered a good strategy, and Indian investors have been doing so at every opportunity. Ram Sahgal reports that despite the bearish market, retail investors have bought stocks worth more than ₹33,000 crore. But while buying the dip every time may be tempting, the strategy is more suitable for seasoned investors, especially during times of stubborn inflation, high interest rates, and geopolitical uncertainties, Ram adds. Mutual fund managers are increasingly holding cash, looking to wait out the skittish markets.

While some Indians are reducing their discretionary spending, rich Indians are splurging like there's no tomorrow. Soumya Gupta writes that affluent consumers continue to spend on luxury goods, travel, and lavish weddings. The ever-rising income disparity means that shifts in affluent consumers' spending could significantly affect large, mass-market companies. The likes of Maruti-Suzuki and Hindustan Unilever, for instance, have reported muted demand of late. This is bad news for India's consumer economy, which accounts for half the country's GDP.

State Bank of India, Bank of Baroda, and Punjab National Bank are vying to finance an oil refinery project worth ₹39,000 crore in Tamil Nadu. Shayan Ghosh reports that more than ₹27,000 crore of this will be sourced through loans. Banks are seeking to capitalise on such public sector projects as demand for retail loans is declining.

Puneet Chhatwal, MD and CEO of the Tata Group’s Indian Hotels Company Limited, is a man in a hurry. Since taking over in 2017, Chhatwal has aggressively targeted growth and relied on rapid expansion to achieve this. IHCL stock, meanwhile, has given investors 400% returns in the past five years. So far, so good. But what’s next? Varuni Khosla reports that while the company’s expansion strategy under Chhatwal has received much praise, some have raised questions about its sustainability.

Is coconut oil sold in a 200 ml bottle an edible oil or a cosmetic product? The question may sound silly, but has significant ramifications for the fast-moving consumer goods industry as cosmetic products are taxed at a higher rate than edible oils. The Supreme Court is due to rule on the issue soon, and its decision will set a significant precedent, writes Krishna Yadav.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, November 19, 2024. This is Nelson John, let's get started.

In what could be construed as a nudge to RBI to cut lending rates, finance minister Nirmala Sitharaman emphasized the need for more affordable bank lending rates to support India's growth. But she acknowledged that the government could do more to improve storage for perishable foods to mitigate the inflation volatility. Shayan Ghosh writes that RBI has maintained interest rates since February 2023, and due to inflationary concerns might not change that for now. Union Commerce Minister Piyush Goyal had also called for rate cuts last week.

India has new advertising guidelines for coaching classes. The new rules aim to prevent misleading claims by holding institutes accountable for false advertisements. Devina Sengupta writes that coaching centres must now provide refunds for unmet promises and disclose if their courses are accredited by relevant authorities. These regulations seek to protect students, who often enroll in coaching hubs like Kota under inflated expectations of success. For many years now, coaching classes have misled students and their parents with tall promises — these regulations are aimed at tempering them.

The government had announced a wide-ranging internship programme during the Union Budget a few months ago. While the original plan was meant for 21-24-year olds, Gireesh Chandra Prasad reports that the scheme might be expanded to the age group of 18-25 years. The focus will continue to remain on candidates from families with annual incomes below Rs 8 lakh and without permanent government jobs. Currently, over 125,000 internships are available in companies like ONGC and Reliance Industries.

Who said science and faith cannot co-exist? In a move that merges technology with cultural preservation, an AI powered digital twin of St Peter’s Basilica was unveiled earlier this month. Leslie D’monte writes that such technology can help you explore the world from your living room. AI-related tech is also being used to restore broken artifacts by designing what the missing pieces look like.

An idle mind, they say, is the devil’s workshop. An IT professional from Bengaluru, rated

as a top performer by his employer, discovered this to his detriment recently. Having

moved from the hellish environmental extremes of Delhi to Bengaluru in the Beautiful

South, he had it all going for him. But instead of making the most that the easygoing IT

capital of India had to offer, he found himself consumed by a hellish addiction to

pornography, which soon made its way from his home to the workplace. Psychologists

blame his addiction on boredom, a silent threat that is looming over employers who fail

to keep their employees occupied in meaningful tasks. As Devina Sengupta writes, if it

is not identified and addressed, boredom’s cascading effects can have a long-term

impact on the prospects of both the employer and the employee.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, November 18, 2024. This is Nelson John, let's get started.

Stock markets have been brutal of late. Investors have lost a cumulative ₹50 trillion over the past seven weeks, during which the Nifty and Sensex have fallen 10% from their peaks. Ram Sahgal reports that foreign investors are pulling out in hordes. Poor Q2 results across the board haven’t helped, either. Analysts have remained optimistic of a rebound but are worried about the long-term sustainability of the bull runs that we have seen until a couple of weeks ago.

A tax on crude oil and fuel exports is being scrapped soon. Rituraj Baruah, Gireesh Chandra Prasad and Utpal Bhaskar report that this tax was originally imposed in 2022 following a surge in prices after the Russia-Ukraine war broke out. As oil prices have remained low, the union government wants to reduce and eventually eliminate it entirely. This decision will benefit oil companies in India, allowing them to compete globally.

The RBI’s crackdown on unsecured personal loans has led to a reduced demand for off-roll workers in the banking sector. Shayan Ghosh and Devina Sengupta report that the in-house shift of KYC norms has also affected this type of employment. These roles typically did KYC, loans sales and loan collections. While the RBI's change aims to increase compliance and prevent money laundering, it may inadvertently push borrowers towards unregulated money lenders.

India's roads are dangerous. A road accident in Dehradun last week resulted in 6 deaths and one critical injury. Sumant Banerji writes that 171,000 people died in road accidents in 2022 alone—accounting for nearly 12% of global road fatalities. Key causes include speeding and careless driving, which account for more than 87% of incidents. Unsurprisingly, two-wheeler riders are the most vulnerable. Despite these startling facts, education on road safety remains inadequate.

More than 60% of India's domestic textile demand is for cotton. In a humid country like ours, it's not difficult to see why. Things are different across the world. Man-made fibers such as polyester are much more common in countries such as. China, Taiwan, and Vietnam, which already cornered a lion's share of that market. N. Madhavan writes about these man-made fabrics, their endless potential, and the limitations in the Indian manufacturing and consumer verticals that might prevent them from succeeding like their East Asian counterparts. The government, for its part, has announced a PLI scheme for these fabrics that exceeds ₹10,000 crore. It has already found takers for nearly double that amount. But will it work?

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, November 15, 2024. This is Nelson John, let's get started.

China's export restrictions are hurting the Indian economy. Essential materials like Germanium and Gallium have been banned from being exported from China, and are crucial for solar panel and electric vehicle production. Dhirendra Kumar and Utpal Bhaskar report that Indian companies are trying a workaround by rerouting these minerals and other critical machinery through Dubai. However, this proves to be costly as prices have increased by 10% and timelines are delayed by months. Such tactics also further widen India's trade deficit with China, draining foreign exchange.

If your company does any business in the US, you're probably thinking about the implications of Donald Trump's return to the big seat. Law firms are inundated with similar queries. Krishna Yadav writes that law firms are advising their clients to include protective clauses in contracts such as 'Force Majeure' and 'Material Adverse Change'. They are worried that Trump's 'America First' policy can complicate investments as well as invite widespread scrutiny. Cross-border deals might then come to a halt until there's further clarity on international policy.

It seems that automakers ar a rare breed — they don't want any subsidies. The government's ₹26,000 crore PLI scheme has only found takers for subsidies worth ₹500 crore so far. Alisha Sachdev reports that these companies are Tata Motors, Mahindra, Toyota, and Ola Electric. Primarily, the 50% domestic value requirement poses a major challenge for them, as they can't qualify for the scheme. Claims are likely to increase next financial year, when other automakers are more compliant and have bigger expansion plans.

Would you let a robotic arm, controlled by artificial intelligence, operate on you? Leslie D'monte writes that an autonomous AI surgeon named the da Vinci robot is now on the market. It has been trained through imitation learning, like most other AI models. It could potentially revolutionize surgical procedures by replicating complex tasks such as suturing and tissue manipulation. Challenges include precision, cost, and regulatory compliance. And since these devices are entirely digital, a single cyberattack could prove to be quite harmful.

Maharashtra is gearing up for its first state election since the split of its two key regional parties—the Nationalist Congress Party and Shiv Sena. With the second highest number of parliamentary seats in the country, it is a politically crucial state. Between the Mahayuti government and opposition Maha Vikas Aghadi, populist schemes and promises have taken centre stage to mobilize voters. In a state, where unemployment and rural distress are key electoral issues, will this guarantee a win?

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, November 14, 2024. This is Nelson John, let's get started.

Markets crashed for a second straight day on Wednesday, confirming a shift to bearish sentiment. Ram Sahgal reports that options traders are cutting their put positions on the Nifty index as uncertainty mounts, prompting investors to hedge their portfolios. However, the rising cost of put options has intensified selling pressure. Ram notes that in this bearish climate, call options have become cheaper. The takeaway? Investors are hoping the market has finally bottomed out.

One company bucked the market trend: Swiggy. It made its market debut yesterday, closing with a 7.7% premium over its issue price. Mansi Verma and Priyamvada C report that the listing was a significant liquidity event for major backers like SoftBank and Prosus. Analysts have generally maintained a positive outlook for the stock, though some urge caution, pointing to potential cash flow challenges.

Official data shows India’s consumer price index (CPI) surged to 6.2%, breaching the Reserve Bank of India’s upper tolerance limit. The primary driver was food inflation, which remains high at 10.9%. N. Madhavan reports sharp increases in the prices of vegetables, fruits, pulses, and edible oils. The RBI had aimed to keep inflation near 4.8% through the year’s end, but that target now seems elusive. Furthermore, hopes for an interest rate cut have also been dampened.

Foxconn, the world’s largest contract electronics manufacturer, has been in India for nearly two decades and has already invested $10 billion. As this Taiwanese giant and a key Apple supplier plans to ramp up investments with sprawling industrial townships, all four southern states are competing for its attention. A potential ‘Foxconn city’ would encompass not just factories but also housing and social infrastructure, generating substantial employment and helping states move up the manufacturing value chain. In today’s long-form story, Gulveen Aulakh and N. Madhavan explore how states are vying for this pivotal investment.

Indian authorities are struggling to investigate a recent wave of bomb hoaxes because of stringent European regulations. Shouvik Das reports that Indian authorities need specific warrants to request information from European countries, but European agencies are citing strict data protection laws to deny these requests. Tracing the calls to individuals has been difficult, as virtual private networks (VPNs) mask users' identities. India’s lack of data-sharing agreements with Europe adds another layer of complexity, slowing cross-border information exchange and further delaying the investigation.

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, November 13, 2024. This is Nelson John, let's get started.

It's never a problem raising money if you're a well-to-do quick commerce player. Zepto is raising around $250 million from high net worth individuals and wealth management firms, report Priyamvada C. and Sneha Shah. Firms like Motilal Oswal, IIFL, and InCred are looking to invest in the company at its previous valuation of $5 billion. If this goes through, this will be Zepto's third capital raise in six months. Zepto wants to balance its capital ahead of a planned IPO next year. Apart from its dark stores, Zepto has also recently launched "Zepto cafe", which competes with established platforms like Swiggy and Zomato.

Finfluencers have a new entity that they have to be wary of: Youtube. The google-owned website has started blocking access to videos following complaints from a government entity. This has led to sharp criticism and potential legal action from these creators. These finfluencers said their videos were removed without prior notice, write Pratishtha Bagai and Neha Joshi. In its response to Mint, Youtube said that it complies with local laws and handles removal requests. But the finfluencers are accusing Youtube of censorship.

History repeats itself, sometimes much faster than we’d think. Donald Trump will soon be back as POTUS, and already, the trade wars that marked his previous term seem to have returned. The US government has reportedly asked TSMC, the world’s largest chip maker, to stop selling advanced ‘AI’ chips to Huawei, China’s largest tech conglomerate. Huawei has been in trouble with American authorities since 2019 after it was accused of cyber espionage. But why will TSMC and Huawei bow to the US’ will? It all has to do with the legacy of chip design, Shouvik explains in today’s Mint Primer.

In its first ever earnings report, Hyundai India disappointed. It reported a 16% drop in net profit for the July-September quarter. Alisha Sachdev writes that weak domestic demand and the Red Sea crisis affected its exports, leading to the drop in numbers. Revenue was down too, primarily due to poor domestic sales. Hyundai doesn't expect demand to pick up significantly either. Moreover, high interest rates will hinder future earnings as well, the automaker added. It is counting on launching its first India-made EV next year to provide a boost for its lagging sales.

There's been a stark rise in cyber crimes of late. Scammers pose as police officers and convince people that they were involved in money laundering. People have fallen prey to such scams and lost lakhs — in some cases, crores — of rupees. Suman Banerji writes that over 1.5 million cyber crime complaints were filed in 2023. But this number could be higher. Experts suggest that many cases go unreported due to embarrassment and indifference from local police. Victims range widely across different demographics, including younger people that might be more savvy, but still got duped.