Indigo Airlines: The Trillion Rupee Titan of Indian Skies ✈️

Thursday, June 29^th 2023

Good Morning ☕

Looks like Indigo is flying high in the market skies, leaving the competition trailing behind! With a trillion-rupee market cap, they've truly taken off and are giving their rivals a run for their money. I guess it's time for other airlines to buckle up and try to catch up with this budget carrier's soaring success. Maybe they should consider offering free snacks on board to entice investors too!

1. Power sector reforms: Fin min allocates ₹1.4 trillion incentives to states for FY24

The Indian Finance Ministry has allocated INR 1.4 trillion ($18.6 billion) in incentives to states for the power sector in FY24. The allocation is part of the government's efforts to build a greener and more sustainable India by allocating INR 350 billion ($4.3 billion) towards energy transition and Net Zero objectives. The government has also allocated INR 7,327 crore ($885 million) for the solar power sector, including grid, off-grid, and PM-KUSUM projects. The Ministry of Power has identified 81 thermal units that will replace coal with renewable energy generation by 2026 to meet India's 500 GW renewable energy target.

2. IndiGo becomes India's leading airline to touch ₹1 lakh crore in market value

InterGlobe Aviation Ltd, which operates budget carrier Indigo, has become India's first aviation company to cross Rs 1 trillion market cap after its shares hit a record high with 29% gains so far this year. The stock hit a high of Rs 2,595 on the BSE, up 2.5% from its previous close, with a market cap of Rs 1.01 trillion. Indigo ranks 10th in terms of market value among the world's top 10 listed aviation firms. Delta Airlines Inc is the world's biggest airline by value, with a market cap of $29.62 billion followed by South West Airlines Co and Ryanair Holdings PLC.

3. Cabinet approves ₹3.68 trillion for fertilizer subsidy schemes for 3 years

The Union Cabinet has approved a subsidy of INR 38,000 crore for non-urea fertilizers for the Kharif season in 2023. The subsidy is part of a total of INR 1.08 lakh crore that the government will spend on fertilizers during the Kharif season in 2023-24. The subsidy aims to ensure that fertiliser prices remain unchanged for farmers and will benefit around 12 crore farmers. The subsidy rates for nitrogen, phosphorus, potassium, and sulphur have been reduced by 22%, 39%, 36%, and 67%, respectively.

4. Cabinet approves ratification of Headquarters Agreement between India, CDRI

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the categorization of the Coalition for Disaster Resilient Infrastructure (CDRI) as an international organization and the signing of the Headquarters Agreement (HQA) with CDRI for granting it the exemptions, immunities, and privileges. The CDRI is a global partnership of national governments, UN agencies, multilateral development banks, private sector, and knowledge institutions committed to promoting the resilience of new and existing infrastructure systems to climate and disaster risks. The ratification of the HQA would provide the CDRI with the necessary legal framework to function effectively as an international organization.

5. ‘Arrested’ Supertech chairman sent to ED custody in money laundering case

RK Arora, the chairman of real estate developer Supertech, has been arrested by the Enforcement Directorate (ED) in a money laundering case. Arora was taken into custody under the criminal sections of the Prevention of Money Laundering Act (PMLA). The ED had initiated a probe against Supertech Group of Companies and others under the PMLA on the basis of FIRs registered in UP, Delhi, and Haryana. Arora is also the chairperson of National Real Estate Development Council (NAREDCO), an organization of builders.

6. Banks' asset quality best in a decade, expected to improve further: RBI

The Reserve Bank of India (RBI) has reported that the gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) fell to a 10-year low of 3.9% in March 2023. The net non-performing assets (NNPA) ratio also dropped to 1.0% in March 2023 from 6.1% in March 2018. The provisioning coverage ratio (PCR) has improved to 74.0% in March 2023 from 40.1% in June 2016. The RBI's bi-annual Financial Stability Report (FSR) said that the GNPAs of the scheduled commercial banks are expected to improve further to 3.6% by March 2024.

7. Global economy faces heightened uncertainty amidst banking system fragility: RBI

According to the RBI's Financial Stability Report, the global economy is facing heightened uncertainty due to banking system fragility in certain countries and persisting geopolitical tensions. However, the Indian economy has made a solid recovery despite these challenges, according to RBI Governor Shaktikanta Das. The report also states that the banking system in India remains resilient and fortified by a low level of non-performing assets. The International Monetary Fund's Global Financial Stability Report from April 2023 also highlights the challenges posed by the interaction between tighter monetary and financial conditions and the buildup in vulnerabilities since the global financial crisis.

8. Google to help firms join ONDC with ready APIs

Google Cloud is helping companies join the Open Network for Digital Commerce (ONDC) by providing ready APIs. ONDC is a government-led initiative in India that aims to create a digital infrastructure for the country's e-commerce sector. Google Cloud's APIs will enable companies to integrate with ONDC's platform and offer services such as logistics, payments, and customer support. The move is part of Google's broader efforts to expand its presence in India's digital economy.

9. Meta launches $250K mixed reality fund for 5 Indian startups

Social networking giant Meta has announced a new Mixed Reality (MR) program in India, along with a grant of $250,000 for Indian startups and developers. The program will provide up to five Indian developers and startups with a financial grant, dedicated mentoring, and guidance from Meta Reality Labs experts. The initiative marks a significant milestone in India's journey towards becoming a leader in the development of XR apps and experiences.

10. Pune, Mumbai lead housing sales growth in Q2 2023

According to research data by Anarock, approximately 1.15 lakh housing units were sold across the top seven cities in India in Q2 of 2023, which is a 36% yearly rise from the units sold in Q2 of CY2022. The top seven cities include NCR, MMR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata. NCR is the only city to see just a single-digit yearly growth (7%) in housing sales among all cities. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 90% of sales in the quarter. New launches across the top seven cities breached the 100,000 mark and witnessed a 25% yearly rise.

11. Global Power Synergy Public invests $233 mn in Avaada Group

Global Power Synergy Public Company Limited (GPSC) has invested $233 million in Avaada Group, an Indian renewable energy company, bringing its total investment in Avaada to around $779 million. The funding round also included $1 billion from Brookfield Renewables. GPSC's investment in Avaada is part of its strategy to expand its renewable energy portfolio and enter the clean energy market in India with new projects. Avaada has been successful in bidding for solar power generation projects in India, including a 560 MW solar power project. The investment in Avaada strengthens GPSC's commitment to green energy.

12. TCS writes to board members about job scandal allegations: Report

Tata Consultancy Services (TCS) has written to each member of its board to inform and clarify the claims of a recruitment scandal. The company has reportedly roped in external auditors to investigate the matter. TCS is consulting with external auditors to investigate the situation. Meanwhile, quarterly housing sales in India are at an all-time high with over 1.15 lakh units sold in Q2 2023 across the top 7 cities.

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