Tracking Latest Stock Market Headlines & Top Developments | India Business Hour | Top News

Summary

The latest business news covers a range of important updates, including India’s longest bull market, with Sensex and Nifty gaining ground. Veteran banker KV Kut raises concerns over fintech and corporate bank licenses. Zomato faces a GST demand over unreported delivery charges, while Bajaj Auto leads the electric two-wheeler market. The quick commerce space heats up as Blinkit and Zepto enter the 10-minute food delivery market, competing with Swiggy’s Bolt. International developments include Switzerland’s withdrawal of MFN status for India and global aircraft delivery delays affecting Indian airlines.

Takeaways

• 😀 India's stock market is experiencing the longest bull run in its history, with both Sensex and Nifty ending the week in the green, despite midcaps underperforming.
• 😀 The Indian rupee has strengthened against the US dollar, bucking trends in other emerging markets.
• 😀 Veteran banker KV Kamath highlights that corporate and fintech companies may take more time to secure banking licenses due to red flags in the sector and the need for careful regulation.
• 😀 The central government's new 'Just in Time' fund transfer system via RBI is leading to reduced idle deposits in state government accounts, despite concerns from PSU banks about liquidity loss.
• 😀 Bajaj Auto has surpassed Ola Electric to become the leader in the electric two-wheeler market in India, with a market share of 28%.
• 😀 Zomato faces a GST demand of over ₹800 crore for failing to include delivery charges in its GST returns between 2019 and 2022, with penalties also levied.
• 😀 The tension between Israel and Syria continues, with Israel's airstrikes intensifying while the UN calls for de-escalation amid concerns over the humanitarian crisis.
• 😀 India’s aircraft industry is facing significant delays, with less than 10% of aircraft orders fulfilled and airlines struggling with an aging fleet and a backlog of orders.
• 😀 The global aviation industry is grappling with a slowdown in aircraft deliveries, with a backlog of over 177,000 aircraft and a projected delay of up to 14 years for delivery fulfillment.
• 😀 Zomato’s Blinkit enters the 10-minute food delivery market, launching Beastro to compete with Zepto Café and Swiggy's Bolt, signaling a new growth frontier for the food delivery industry.

Q & A

What has been the recent trend in India's stock market performance?

The Sensex and Nifty have turned positive for the week, driven by a strong rally on Friday. This marks the longest bull market in India's history, surpassing the previous one from 2003 to 2008.

What concerns are being raised about the corporate sector’s involvement in banking?

Veteran banker KV Kut emphasized that corporate and fintech licenses for banking should take more time, citing signs of rash behavior and red flags in the fintech sector. He also mentioned that the safety of deposits must be the regulator's priority.

How has the Union Government changed its fund transfer system to states?

The Union Government has introduced a Just-in-Time fund transfer system through an RBI platform. This system aims to reduce idle deposits in state government accounts, although it has led to complaints from public sector banks due to reduced deposit flows.

What impact has the new fund transfer mechanism had on public sector banks?

Public sector banks are protesting the new system because it has led to a reduction in stable deposits from state governments' current accounts, resulting in a slowdown of deposits and liquidity issues for the banks.

How has Bajaj Auto performed in the electric two-wheeler market?

Bajaj Auto has overtaken Ola Electric to become the leader in the electric two-wheeler market, achieving a market share of 28% in December, according to Vahan data.

What is the controversy surrounding Zomato's GST payments?

Zomato is facing a GST demand notice of over 800 crore rupees from the Maharashtra tax authorities. This relates to the company's failure to include delivery charges in its GST returns between 2019 and 2022, resulting in penalties and interest charges.

What are the latest developments in the 10-minute food delivery market?

Zomato’s Blinkit has launched a 10-minute food delivery service called 'Beastro,' aiming to compete with Zepto's 'Zepto Cafe.' Swiggy has also entered the space with 'Bolt,' a 10-minute food delivery offering. The competition is heating up as consumer demand for quick food delivery continues to grow.

What is Zepto's approach to the 10-minute food delivery service?

Zepto’s 10-minute food delivery service, 'Zepto Cafe,' focuses on offering ready-to-eat meals sourced from local vendors, and it is set to expand with a separate app for this service.

What are the challenges faced by the aviation sector in India?

The Indian aviation sector is grappling with a significant backlog in aircraft deliveries, which has slowed the expansion of airlines like Indigo and Air India. Manufacturers are facing supply chain issues, delaying the delivery of planes, which affects airlines' growth plans.

How has the Swiss government’s decision to withdraw the Most Favored Nation status affected India?

Switzerland has withdrawn the Most Favored Nation status granted to India, citing an adverse court ruling against Nestle. This move is expected to result in higher taxes on dividend income and other tax liabilities for Indian entities operating in Switzerland.