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, December 27, 2024. This is Nelson John, let's get started.

Former Prime Minister and finance minister during the 1992 economic liberalisation, Dr. Manmohan Singh, passed away at the age of 92 at Delhi’s AIIMS last night. Dr. Singh, who is often credited with opening up the Indian economy, retired from the Rajya Sabha earlier this year—ending a 33-year stint in the Upper House of Parliament.

After a soaring streak, India’s residential property market took a downturn in 2024, experiencing a 4% drop in home sales. This marked the first slowdown since the pandemic, with a corresponding decrease in new project launches. However, despite the dip in sales and new supplies, property prices didn't follow suit and instead climbed higher, writes Madhurima Nandy. In the top seven cities, residential sales didn't reach the peaks anticipated for 2024, as reported by Anarock Property Consultants. Election activities and a sluggish process for project approvals contributed to fewer new project launches. While sales volumes dropped, the value of sales actually increased by 16% due to rising home prices and larger unit sizes.

As the allure of prestigious campus placements at Indian Institutes of Technology (IITs) begins to wane in the face of a global economic downturn, the institutions are rallying behind their students, especially those who have missed the initial rush of high-profile recruiters. In response to the challenging job market, IITs are introducing innovative support systems to aid their students in securing employment. Recognizing the importance of mentorship and preparation, IIT Delhi has launched the "Call a Friend" program. This initiative connects final-year students with peers who have successfully navigated the placement process. The idea, Devina Sengupta reports, is to provide real-time advice and emotional support from those who understand the stress and demands of securing a good job offer.

In its annual report on the trends and progress of banking for the fiscal year 2023-24, the RBI outlined a series of potential regulatory changes aimed at strengthening the banking system further. Gopika Gopakumar reports on the changes that include eliminating prepayment penalties on floating rate term loans for small businesses, tighter oversight of inter-linkages between banks, NBFCs, and private credit firms, and more stringent regulations for payment aggregators. RBI is also set to finalize guidelines that will require financial institutions to disclose climate-related financial risks, incorporating scenario analysis and stress testing to gauge these risks better.

In India, niche American dramas and smaller Hollywood movies like Tom Hanks' Here and Michael Keaton’s Goodrich are carving out success at the box office by appealing to a specific audience that doesn't mind shelling out a bit more for tickets. These films, often showcased in select urban theaters, come with a higher price tag, sometimes over ₹500 a pop. Despite this, they manage to attract a dedicated crowd that values quality storytelling over blockbuster effects. Lata Jha spoke to industry insiders who explained that these movies, typically acclaimed at festivals or tipped for awards, draw viewers who appreciate premium content and are prepared to pay for it. Films like Here and Goodrich have made respectable earnings in India by targeting their ideal audience with higher ticket prices, balancing out their more modest box office hauls.

The Sanskrit word Simhavalokana refers to the retrospective glance of a lion as it surveys the path it has traversed. This idea captures the essence of reflecting on key lessons from the financial markets in 2024. This year offered several critical takeaways for investors. Industry consolidation emerged as a strong theme, particularly in sectors like telecom and airlines in India. With the market share of top players increasing significantly, this trend highlighted the potential for multi-year returns from survivors in consolidated industries. Economic events also underscored the dominance of climate-driven food inflation over monetary policy. Valuation metrics also delivered important lessons. Markets in politically and economically troubled regions like Argentina and Pakistan delivered unexpected returns, proving that bad macroeconomic news is often already priced in. Meanwhile, IPOs emerged as a cautionary tale. Swanand Kelkar, managing partner at Breakout Capital Advisors, shares market lessons from the year gone by.

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, December 26, 2024. This is Nelson John, let's get started.

Honda and Nissan are set to merge by mid-2025, along with Mitsubishi, creating the world’s third-largest auto group after Toyota and Volkswagen. The new entity, valued at $50 billion, is expected to generate $191 billion in revenue and sell over 8 million cars annually. The merger is driven by challenges in China, where both brands are losing market share, and the need to accelerate EV development. The merger promises cost savings, shared resources, and a stronger push into electrification, though sceptics question its potential success, citing previous failed auto tie-ups. N Madhavan explains what the whole merger is about. In India, where Honda and Nissan hold marginal market shares of 1.4% and less than 1%, the impact may involve shared platforms and streamlined operations, but specifics on their manufacturing facilities remain unclear.

N Srinivasan, CEO and MD of India Cements, along with other board members, resigned yesterday, following UltraTech Cement's acquisition of a 32.72% stake in the company. The Aditya Birla Group-owned UltraTech, now the majority shareholder, has made India Cements its subsidiary. The resignations, including those of Srinivasan's family members Rupa Gurunath and Chitra Srinivasan, as well as V.M. Mohan, marks the end of the existing promoters' control over the South-based cement maker.

India's leading banks and financial institutions are embracing AI to improve services, cybersecurity, and efficiency. SBI, BoB, HDFC Bank, Axis Bank, and Poonawalla Fincorp are developing in-house AI capabilities, focusing on proprietary models to leverage sensitive data securely. SBI is seeking patents for its AI/ML innovations, avoiding reliance on Big Tech’s public models. BoB is extending AI and Generative AI across its operations. HDFC Bank uses AI for fraud prevention, customer service, and pre-approved offers while exploring private Large Language Models. Axis Bank is piloting AI-driven solutions for fraud detection in international payments. Experts see this as a shift from banks relying on tech firms to developing their own AI intellectual property. Shouvik Das and Shayan Ghosh report on how Indian lenders are taking AI more seriously than ever.

A string of blockbuster films, including Pushpa 2: The Rule, Bhool Bhulaiyaa 3, and Mufasa: The Lion King, has rejuvenated shopping malls and retailers in late 2024, following a sluggish start to the year. Mall operators report a high single-digit growth in sales for the December quarter, fueled by these hits and festive season demand. Lata Jha spoke to industry insiders who highlighted that, footfalls, which had dropped earlier in the year, doubled in this period, driven by cinema releases and festive shopping. Multiplexes, a key driver of mall traffic, spurred consumption across categories like apparel, food, and jewellery. However, inflation and reduced government spending during elections had earlier cooled retail demand.

As 2024 wraps up, it’s clear that some of the year’s biggest tech innovations fell short of their lofty promises. Generative AI faced mounting skepticism over its high costs, errors, and limited real-world adoption. India’s Smart Cities Mission struggled to deliver on its promise of true urban transformation. The metaverse failed to live up to its hype amid technical and economic challenges. Web3 and NFTs lost their early momentum due to regulatory hurdles and market volatility. Even quantum computing, while advancing, remains far from everyday application. Leslie D’Monte takes a close look at these tech letdowns from the year gone by.

As we head into 2025, wealth managers are zeroing in on sectors poised to thrive and those better avoided. Financial services stocks stand out as a top pick, with reasonable valuations and the potential for monetary stimulus to revive credit growth and stabilize margins. In contrast, metals face persistent challenges like sluggish global growth and overcapacity in China, making them a sector to steer clear of. Here’s what the experts recommend for the year ahead. Dipti Sharma writes on the top sectors to pick and avoid in the coming year.

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, December 25, 2024. This is Nelson John, let's get started.

The Department of Pharmaceuticals recently penalised AbbVie Healthcare India for allegedly violating the Uniform Code for Pharmaceutical Marketing Practices. AbbVie reportedly spent ₹1.91 crore flying 30 doctors to Paris and Monaco under the guise of a medical conference, including lavish hospitality. The UCPMP, now mandatory, prohibits such expenses unless doctors are speakers at events. AbbVie argued the trips occurred before the March 2024 UCPMP mandate and were compensation for services, but the DoP rejected this and directed the company to spend the same amount on treating poor patients in government hospitals. Further probes by tax authorities and the National Medical Council may follow. Soumya Gupta explains the situation in today’s Primer.

Packaged goods makers are focusing more on rural markets. Companies like Zydus Wellness, Dabur India, and Godrej Consumer Products have launched affordable packs and brands tailored for these areas. Rural markets are experiencing more growth compared to urban ones, with FMCG volume growth in rural areas at 6%, double that of urban areas at 2.8%, according to NielsenIQ. Godrej Consumer has introduced smaller products like hair colour and incense sticks specifically for rural consumers. Dabur is enhancing its rural distribution and rolling out new innovations. Suneera Tandon reports that rural consumers are embracing branded commodities and dairy products more than before, boosting the FMCG sector, which gets 37% of its sales from these areas.

Renewable energy developers are racing against time to complete projects before the inter-state transmission system waiver, which allows free transmission for 25 years, expires on 30 June. This urgency drove a 43% jump in power capacity additions during April-November, with green energy leading the charge. The Central Electricity Authority reports that 14.9 GW of renewable energy—solar, wind, and small hydro—was added during the period, nearly double last year’s 7.53 GW. Developers are leveraging favourable solar module prices, revived wind turbine manufacturing, and strong investor interest to meet the deadline. However, industry groups are pushing for an extension of the waiver, Rituraj Baruah reports.

Smartphone addiction is pushing brands like Vivo, Oppo, and HMD to embrace digital detox as a selling point. Features like OnePlus’s Zen Mode and HMD’s Detox Mode help users disconnect by temporarily hiding distracting apps. Vivo’s study highlights the problem: parents average 5.5 hours and kids 4.5 hours of daily screen time, with 64% of children feeling addicted. Most kids even think their parents' phones should stick to basics like calling and messaging. Gulveen Aulakh reports on how brands are responding with smarter tools. HMD's Detox Mode makes taking a break easy, while Vivo’s devices offer focus modes and screen-time reminders. Feature phones are also being reimagined with essentials like UPI payments to encourage reduced smartphone dependency.

This December has been a tough one for markets, with a 1.7% drop so far, making it the second-worst in a decade after 2022’s 4% fall. Profit-booking, foreign investor outflows, and IPO-driven sector shifts have hit large-cap stocks, but experts see this as a chance for savvy investors to buy. FPIs have been pulling back, driven by a stronger dollar and valuation concerns, while IPOs have drawn much of the inflow. Yet, December has seen ₹20,071 crore in FPI inflows, signalling some recovery, writes Niti Kiran. Analysts expect IPO momentum to continue into 2025, potentially crossing ₹2 trillion, though inflation and global uncertainties may stir volatility. Historically, December has often been a positive month for markets, with gains in three out of every four years. Despite current challenges, local buying and January optimism could stabilize markets, keeping December’s reputation for resilience alive.

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, December 23, 2024. This is Nelson John, let's get started.

Many investors have burnt their hands during the bull run of 2024. Take for example the Nifty India Defence Index, which saw a stunning 60% return this year. However, one of its main stocks is prone to volatility: Cochin Shipyard has dropped 30% in the past six months. Abhishek Mukherjee writes that sectors like pharmaceuticals and manufacturing have thrived due to post-COVID dynamics and strategic shifts, but many investors have fallen prey to herd behavior and overinflated narratives. Thus when experienced investors book their profits, sharp corrections occur — leading to widespread portfolio losses.

Indians are borrowing more money against their gold, and the Reserve Bank of India is worried. Regular defaults are leading to increased collateral auctions to recover these loans. Anshika Kayastha writes that Muthoot Finance and Manappuram Finance reported significant auction amounts in recent quarters. This reflects a shift towards standardized auctioning policies in compliance with new regulations. The RBI has tightened its rules: there are now limits on cash disbursements for gold loans and requiring a review of lending practices.

When companies apply for any incentive scheme by the central government, they are supposed to invest some money to receive further subsidies. However, about 12 companies will be excluded from the government's production-linked incentive scheme for failing to meet these norms. Manas Pimpalkhare and Rituraj Baruah report that these companies include state-owned Bharat Heavy Electricals or BHEL, and Kia Motors India. Kia had expressed intent to withdraw from the scheme as its manufacturing plans have not materialised. The PLI-Auto scheme had an estimated outlay of 26,000 crore rupees over five years, but only 500 crore has been claimed so far.

After a long bout of lean hirings, the IT sector is looking better. Accenture's recent hiring of 49,000 employees globally over six months indicates a positive growth outlook moving forward. Jas Bardia writes that this would bode well for Indian IT companies like TCS, Infosys, and HCL Technologies as well. While growth for Indian IT companies has been slow, analysts suggest that recovery may be on the horizon. This recovery will be aided by a potential increase in demand following interest rate cuts and decision-making in the US under the upcoming Trump administration

Everyone in India's startup ecosystem is looking for the next big bet. Shelley Singh writes that deep tech might be it. This field is rooted in science and engineering and addresses major global challenges. It covers sectors such as space tech, biotech, and climate tech, and focuses on long-term goals. However, challenges such as the need for a supportive ecosystem involving academia, government, and investors remain abundant. Moreover, deep tech firms need strong intellectual property and scalable business models as well.

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, December 19, 2024. This is Nelson John, let's get started.

Adar Poonawalla's recent dive into Bollywood, in which he snagged a 50% stake in Karan Johar’s Dharma Productions for a cool ₹1,000 crore, isn’t just a one-off. It hints at a bigger potential shift across Bollywood. Poonawalla, known best for producing vaccines, teaming up with a giant like Dharma Productions could just set off a trend. Industry insiders weren’t taken aback by this development, as Dharma had been actively seeking fresh funding amid a string of less-than-stellar box office returns and cooling interest from streaming platforms. Before Poonawalla stepped in, giants such as Saregama and Reliance Industries were also in the running, highlighting the attractiveness of film studios as potential investment opportunities for diverse business conglomerates. This move could encourage more such strategic investments, writes Lata Jha. It could also reshape how Bollywood studios align themselves with broader business interests, potentially leading to a wave of revitalisation that could impact content creation, distribution and marketing strategies across the industry.

Despite allegations of anti-competitive practices by Zepto, Instamart and Blinkit, the Competition Commission of India is unlikely to launch an investigation into quick commerce companies. Sources told Dhirendra Kumar and Gireesh Chandra Prasad that the information provided to CCI didn’t convince them there was any anti-competitive behaviour that warranted further examination. This booming sector, projected to hit $6 billion in sales by 2024, seems too competitive and beneficial to consumers for the CCI to take action on its own. Meanwhile, concerns persist among traditional retailers, represented by the All-India Consumer Products Distributors Federation. They claim the platforms’ allegedly predatory pricing and inadequate enforcement of FDI rules could threaten traditional retailers, and are urging a closer look to prevent potential monopolistic outcomes.

Sebi's tightening of rules in India's F&O market aims to cool intense retail trading driven by expectations of quick profits and the gamification tactics of brokerages. Measures such as increasing index contract sizes to ₹15-20 lakh and adding a steep 14% loss margin for contract sales on expiry days kicked in on November 20. More rules such as upfront collection of option premiums by brokerages are expected to take effect in February 2025. For retail investors, these higher barriers mean trading in F&O will require more money and a deeper understanding of the markets—essentially pushing out those looking for quick, easy profits. Brokerages, particularly discount ones such as Zerodha and Angel One, could take a hit to their bottom lines as reduced volumes will force them to rethink pricing or diversify their services. Abhinanda Saha takes a look at this new era in India’s F&O market.

In India, companies are stepping up their game on diversity hiring for roles ranging from software development to mechanical engineering. They're not just looking to fill positions – they're trying to show they're progressive and uphold strong corporate governance. From big names such as Robert Bosch GmbH and IBM Corp to Noida's Coforge Ltd, there's a growing trend of including people from diverse backgrounds, including those who are differently abled. For example, over at R.V. College of Engineering in Bengaluru, they've already recruited 26 students under diversity categories this year. This push towards diversity isn't just about doing good; it's also about looking good, reports Jas Bardia. Companies are increasingly aware that strong diversity practices boost their brand and appeal to investors who value robust environmental, social and governance (ESG) standards. This is in stark contrast to the US, where some big companies and universities are pulling back on their diversity initiatives, wary of running afoul of anti-discrimination laws.

TVS Credit is in talks to buy Avendus Capital from KKR, aiming to boost its financial services, sources told Ranjani Raghavan. It’s considering funding the purchase through internal accruals and may consider debt later. KKR, which invested $120 million in Avendus in 2015, appointed Rothschild after Nomura withdrew from facilitating the sale. Avendus, known for its strong investment banking and startup advisory services, could be valued between $500 and $700 million for a 70% stake. Serious bidders include Mizuho and Carlyle, but a final decision is likely to be pushed to January owing to the holidays. A successful bid could significantly expand TVS’s financial-sector footprint, adding investment banking and asset management to its portfolio.

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, December 18, 2024. This is Nelson John, let's get started.

The Indian government has unveiled a 3 billion dollar incentives plan to stimulate the creation of electronics brands and enhance private research & development spending in the sector. The initiative is aimed at attracting investments and generating business worth over 15 billion dollars. The goal is to shift from merely assembling devices, which leaves most profits with foreign firms, to manufacturing core components domestically and owning patents for commercially sold devices. Historically, local brands such as Onida, Karbonn, Lava, and Micromax have struggled against international competition due to a lack of innovation. Shouvik Das explains how investing in R&D could revitalise Indian consumer electronics brands by fostering homegrown innovation and enabling them to compete globally.

Aditya Birla Group and Adani Group, which were initially interested in acquiring Akzo Nobel NV's Indian paint operations, did not finalize their discussions, leading to a shift in potential bidders. Now, Indigo and JSW are negotiating – p otentially with private equity investors such as Warburg Pincus, TPG, Carlyle, and CVC – for a bid valued between 2.1 and 2.5 billion dollars. If completed, it could be the largest in India's paint industry, in which Akzo Nobel, which owns brands such as Dulux and Sikkens, holds a 5-6% market share. The decorative business, comprising two-thirds of Akzo Nobel's valuation, is a key attraction, Anirudh Laskar and Sneha Shah report. Pidilite Industries has proposed a share swap deal, while others suggest an all-cash transaction.

JSW Group, Stonepeak Infrastructure Partners and Waaree Energies have placed their binding offers for Enel Group’s renewable venture in India, eyeing a deal that may value the company’s equity between 350 and 400 million dollars. Tack on the debt and we're talking of a total enterprise value north of 500 to 550 million dollars. The assets in play include 760 megawatts of wind and solar installations that are already up and running, plus a promising pipeline of projects that could add another 2 gigawatts. Enel Green Power India has been on the block since last year, and with these bids in, a deal could be wrapped up by the end of the fiscal year, insiders told Sneha Shah.

The Election Commission of India looks set to retain its power to postpone assembly polls, even as India shifts towards a 'one nation, one election' system. This power is enshrined in the proposed Constitutional amendment introduced in the Lok Sabha, Manas Pimplakhare reports. The amendment aims for simultaneous elections across all levels of government but allows the ECI to seek deferrals from the President under special circumstances, a change from the current rules, under which the governor decides. The move to synchronize elections is aimed at improving financial efficiencies and reducing policy paralysis. However, if the Lok Sabha or state assemblies are dissolved prematurely, the incoming government will serve only the remainder of the term, maintaining a fixed election cycle every five years. Critics doubt the bill will pass soon, as the current government lacks the majority needed to push the amendment through.

The Hindi version of Allu Arjun's Pushpa: The Rule-Part 2 has been a blockbuster hit, crossing the 500 crore rupee mark and giving single-screen cinemas in north India a much-needed boost. However, cinema owners are worried. After the Pushpa 2 wave, there's no big commercial hit in sight for a while, and sustaining their businesses looks tough. They are pinning their hopes on Salman Khan’s Sikandar, which is set to release on the Eid weekend in March. Cinema owners Lata Jha spoke to called 2024 one of the worst years for these businesses, especially those in small towns. Themes such as nationalism aren’t pulling in crowds like they were before, and movies that resonate with the common man, such as Pushpa 2, are rare. With Bollywood not churning out many mass-market hits, and the popularity of OTT platforms growing, the future looks challenging for single screens.