Bharatiya Boss Ladies: Steering Towards $5 Trillion

Good Afternoon ☕

Move over, superhero capes and magic wands, because the real secret to India's $5 trillion economic dreams might just be...women in the workforce! That's right, according to the World Bank India Chief, the path to financial glory involves unleashing the power of female professionals. Picture this: a nation where more women are on the job, not just fighting for equal pay but also boosting the GDP. So, let's gear up, India, because it's time to put the 'her' in 'hero' and watch the economy soar.

Important News of the Day

1. India needs more women workers to be a $5 trillion economy: World Bank India chief

According to the World Bank India Chief, India needs more women in the workforce to become a $5 trillion economy. The World Bank has been advocating for more women in the labor force, especially in countries like India, where more women in the labor force is essential. Increasing India's female labor force participation from 25% to 50% will add 1 percentage point to GDP growth, which is almost sufficient to help India achieve the 8% growth rate it needs without spending more money to buy more equipment or capital. Employing more women and paying them a fair salary will create more demand, which will be met because more women are employed.

2. Vedanta Q2 aluminium production rises 2% YoY to 5.94 lakh tonnes

Mining company Vedanta Ltd reported a 2% rise in its total aluminium production to 5,94,000 tonnes in the second quarter of FY24, compared to 5,84,000 tonnes in the same period last year.However, the company's mined metal output at Zinc India was down 1% to 2,52,000 tonnes from over 2,55,000 tonnes in the year-ago period.

3. Dunzo's $35 million rights issue may slash its valuation to $200 million

Dunzo, the quick commerce startup, is seeking to raise $35 million through a rights issue at a reduced valuation of about $200 million, which is just one fourth of its peak value of $800 million.The funding will come from existing supporters, including Reliance Industries and Google.Dunzo has been facing severe cash flow issues and is in talks to raise fresh funding to overcome its liquidity crunch.However, the funding round may come with a possible valuation cut of 50%, which Reliance Retail, the largest investor with 26% stake in Dunzo, is averse to.

4. Sikkim: Cloudburst causes flood-like situation in Singtam, 23 soldiers missing

A cloudburst in Singtam, Sikkim has caused a flood-like situation, leading to 23 soldiers being reported missing and some vehicles submerged under the slush. The Chief Minister of Sikkim, Prem Singh Tamang, has taken stock of the situation, and search operations are underway. Several properties have been damaged, and institutions have been requested to support Sikkim.

5. ‘Hope we can get it done’: Rishi Sunak on UK-India trade deal

British Prime Minister Rishi Sunak has expressed his hope to get a free trade deal with India done. A deal with India would be the largest bilateral post-Brexit trade deal the UK has struck, and it was one of the key priorities of the UK's trade secretary. Talks have been ongoing for some time, but progress has been slow due to issues such as tariffs on whisky and cars, and securing more visas for Indian workers and students. India's finance minister has said that she hopes to conclude talks over a free trade deal with Britain by the end of this year.

Stock Market Update 📈

1. NIIF and JBIC launch $600 million India-Japan Fund to boost investments in environmental sustainability
   The National Investment and Infrastructure Fund (NIIF) and the Japan Bank for International Cooperation (JBIC) have launched a $600 million India-Japan Fund (IJF) to increase investments in environmental sustainability and low-carbon emission strategies in India. The IJF is NIIF’s first bilateral fund, with the government of India contributing 49% of the target corpus and JBIC contributing the remaining 51%. JBIC IG, a subsidiary of JBIC, will collaborate closely with NIIFL to facilitate Japanese investments in India, bolstering economic ties between the two countries.
   

2. Businesses' one-year CPI inflation forecast jumped to 5% in August: IIM survey

   According to the latest Business Inflation Expectations Survey (BIES) of the Indian Institute of Management-Ahmedabad (IIM-A), businesses' forecast of one-year-ahead headline retail inflation rose sharply to 5% in August from 4.56% in June. The survey measures inflation expectations of firms and also asks businesses to predict Consumer Price Index (CPI) inflation one year down the line in alternate months to coincide with the meetings of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC). If the RBI makes an upward revision, similar to the increase in firms' one-year-ahead CPI inflation forecast, it could hit current market expectations of a rate cut sometime in the first quarter of 2024-25.
   

3. Indian derivative market outlook as US stock plunge, VIX curve inversion spark concerns

   The Indian derivative market outlook is uncertain due to the recent plunge in the US stock market and the inversion of the VIX curve, which has historically signaled market bottoms. While some analysts recommend a cautious approach and a bearish bias, others offer a more optimistic view, citing the outperformance of Indian markets in the last two years. The impact of the US market's performance and the inverted VIX curve on the Indian derivative market remains to be seen, but increased volatility is expected.
   

4. Billionaire Ranjan Pai to invest in beauty company Purplle

   Billionaire investor Ranjan Pai is set to invest in Purplle, an online retailer of beauty and personal care products, by buying JSW Ventures' shares in the firm for Rs 60-70 crore. This is the latest in a series of startup investments by Pai, who recently sold a controlling stake in his chain, Manipal Hospitals, to Singapore’s Temasek. Purplle raised $40-$50 million in May and plans to use the capital to expand its offline footprint by opening more stores and also strengthen its online presence.
   

5. Global sluggishness to affect India on the margin

   The global sluggishness in growth and inflation risks will have a limited impact on the Indian economy and its markets, according to an opinion piece on Moneycontrol.However, lower expansion of international merchandise trade and lower FDI will have an impact on India, albeit in a limited way. The country is expected to continue on a robust growth trajectory even when many G20 countries are faced with growth issues. The IMF forecasts 6.1% growth for India in 2023.
   

6. Resources giant Vedanta is splitting to overcome debt overhang

   Vedanta Ltd, the Indian publicly traded firm controlled by privately held Vedanta Resources, has announced a plan to split itself into six companies. For every share of Vedanta Ltd, investors will receive one share in each of the five new businesses: aluminum, oil and gas, power, steel and ferrous, and base metals. The move is aimed at overcoming the debt overhang that the company is facing.
   

7. India will drive global aluminium growth, but challenges remain

   India's per capita aluminum consumption is just 2.5 kg against the global norm of 11 kg and is poised to grow. However, the challenge is to increase domestic production and reduce imports to meet the growing demand.
   

8. Inflation woes nix chances of India yield curve steepening: Traders

   Indian traders are pessimistic about the bond yield curve steepening due to rising oil prices causing inflation concerns. The inclusion of Indian bonds in indices favors long-term bonds, but high oil prices suppress short-term yields. The yield curve is expected to remain flat with higher rates, low chance of inversion, and no imminent rate hikes preventing short-term bond selloff.
   

9. India invites France's TotalEnergies to bid for oil exploration rights
   India has invited TotalEnergies to bid for oil exploration rights in a bid to reduce costly oil imports. Oil Minister Hardeep Singh Puri asked TotalEnergies CEO Patrick Pouyanne to bid for one million square kilometers of exploration blocks opened by PM Narendra Modi's government. India aims to cut its 84% reliance on foreign oil by swiftly developing domestic hydrocarbon reserves.

Breaking News: The Scoop You Can't Miss!

1. ‘Despite ₹4-5 cr funds, Nanded hospital not purchased medicine’, says minister

Maharashtra Education Minister has raised concerns over the lack of medicine procurement despite having sufficient funds at a government hospital in Nanded. The hospital has been in the news after 31 patients died in the last three days due to an alleged shortage of medicines. The acting dean of the hospital was made to clean a dirty toilet and urinals by Shiv Sena MP Hemant Patil. The government has allotted Rs 12 crore to procure medicines and another Rs 4 crore for equipment, but the hospital has pending bills totaling Rs 100 crore, discouraging local suppliers from providing medicines.

2. Vedanta Resources nears $3 billion refinancing deal

Vedanta Resources, owned by billionaire Anil Agarwal, is in advanced talks with JPMorgan Chase and Standard Chartered Bank to secure a $3 billion refinancing facility to stave off a default. The loan will be offered at higher interest rates. Vedanta Resources has huge debt maturities of over $4 billion that will need to be refinanced in the next two years. The company is also exploring measures like brand monetization for timely debt repayments. However, analysts believe that Vedanta's split into four commodity companies is unlikely to help its parent's near-term debt crisis.

3. Paramount may drop streaming plans in India

Paramount Global, which owns a 13% stake in JioCinema's parent company Viacom18, is considering dropping its plans to launch the Paramount streaming service in India this year in favor of a deal with existing partners.The move comes after Viacom18's majority shareholder, Reliance Industries, acquired a 74% stake in the company, with Paramount Global remaining a stakeholder and content partner.Viacom18's JioCinema streaming platform has been acquiring content to become the dominant player in the Indian online video marketplace, including a recent deal with Warner Bros.

4. India's best-ever medal tally in Asian Games, now stands at 71

India has achieved its best-ever medal tally in the history of the Asian Games, with a total of 71 medals, including 16 gold medals, 26 silver medals, and 29 bronze medals.The achievement was made during the 2023 Asian Games held in Hangzhou, China. Archery was the latest sport in which India won a gold medal, contributing to the record-breaking medal tally.

5. Chanda Kochhar moves SC against HC order on her ‘termination’ from ICICI Bank

Former ICICI Bank CEO Chanda Kochhar has moved the Supreme Court to challenge an order issued by the Bombay High Court that refused to rule against her "termination" by the private lender. Kochhar has been denied post-retirement benefits and entitlements, as the bank ‘illegally terminated’ her four months after she voluntarily resigned. The high court had refused to rule in her favour.

World News 🌎

• Biden administration warned China to expect updated export curbs in Oct: Report

• Uganda Airlines to begin India operations with tri-weekly Entebbe-Mumbai flights

• Indonesia hunting a foreigner who meditated naked at Hindu temple

• Bangkok: 3 killed, 4 injured after teenager opens fire inside Siam Paragon mall

• 55 Chinese sailors killed in submarine tragedy

• 'In constant cooperation with India...continue to protect Canada': Joly

• Meta to lay off employees in metaverse silicon unit today

• SoftBank CEO Masayoshi Son says AGI will be a reality in next 10 years

• Shooting near US university campus injures 4

• US says deeply concerned over Trudeau's claim of India's role in death of Nijjar

If you found this newsletter informative and thought-provoking, why not share it with someone you think would appreciate it? Forward this email to them and help spread the knowledge.

Thank you for being a part of our community, and we look forward to bringing you more exciting content tomorrow.