Business News at 10:00 am on 7th August, 2024

Let’s begin… The Securities and Exchange Board of India (SEBI) will review 126 out of 339 recommendations aimed at improving the ‘ease of doing business’ during its quarterly board meeting scheduled for September. According to data presented by Sebi chairperson Madhabi Puri Buch at an event, the regulator has accepted 66% of the total recommendations. Of these, 59 have already been implemented and 38 are set for discussion in the December meeting. The rest have either been rejected or are under process. “We had set up 16 working groups for ease of doing business because we have a very large number of stakeholders, including exchanges, depositories, brokers, listed companies and asset management companies.” Buch said.

Up next, The political upheaval could not have come at a worse time for Bangladesh’s showpiece ready-made garments (RMG) industry. The South Asian country, which is the world’s second largest supplier of apparel products, was to grapple with loss of tariff-free access to Europe’s fashion industry in 2025, and the resultant possible shift in manufacturing base to India and Vietnam, among other countries. India’s garment industry, which has underperformed in the last decade, may gain incrementally in export markets in the short term. But it may face tough competition from Vietnam and China and other countries, if prolonged problems in Bangladesh result in a major rejig of the RMG supply chains over the long term.

In other news, Tata Power will look at new thermal projects depending on the opportunities and returns they offer, said Praveer Sinha in a call with media persons on Tuesday . Tata Power has so far maintained that it will not do new thermal projects as it is focusing on renewable energy — targeting for it to be two thirds of the capacity by 2030. “The situation is evolving. We will examine it as and when opportunity comes (for new thermal projects),” he said, adding that the company will examine it from energy security point. Sinha also said the company is working on the technical side of setting up nuclear power plants. “We will examine the opportunity to add to our clean energy portfolio,” he said.

Moving on, India’s online fashion and lifestyle market is set to grow from $16-17 billion to $40-45 billion by 2028, according to a Bain & Company and Myntra report titled “Decoding India’s Online Fashion and Lifestyle Shopping Trends”. The report, titled “Decoding India’s Online Fashion and Lifestyle Shopping Trends,” provides a comprehensive overview of the evolving e-lifestyle landscape in India. The overall lifestyle market in India, valued at $130 billion in 2023, is expected to grow at a CAGR of 10-12% to reach $210 billion by 2028. E-commerce penetration in the lifestyle sector is projected to increase from the current 13% to 18-22% by 2028, meaning one in five dollars spent on lifestyle will be online.

Furthermore, Airlines’ maybe getting into add-on services like hotel bookings, tour packages, car rentals and travel insurance, as natural extension of their core business, but they don’t pose a threat to online travel agencies (OTAs), say analysts. The reason for the same is that travel tech startups and OTAs like MakeMyTrip, ixigo, Goibibo, Yatra, EaseMyTrip and Cleartrip, are in a much better position to provide broader offerings at more competitive prices. Simply put, this is their core operations as opposed to that of airlines. “While small OTAs may see this (airlines) as direct competition, established travel tech companies such as Goibibo, MakeMyTrip, EaseMyTrip, and Yatra are not necessarily pressured by this trend,” Prateek Tosniwal, co-founder, IVY Growth Associates and partner, MI CAPITAL Services, said.

Insurance companies will have to pay a penalty of 12% to farmers on the claims if there is a delay in claim settlement beyond stipulated period under the Pradhan Mantri Fasal Bima Yojana (PMFBY) agriculture minister Shivraj Singh Chouhan said on Tuesday. “If there is a delay, the insurance company will pay a 12% penalty, which will go directly to the farmer’s account. If we look at the reasons for the delay, the biggest reason is the delay in releasing their share of the premium subsidy by most states,” Chouhan said in Lok Sabha. “It has been made mandatory to assess the loss not visually but through remote sensing at least 30% of crops covered,” Chouhan said.

Lastly, Stocks to watch include Lupin, Tata Power, PB Fintech, SBI, Suzlon Energy, Godrej Consumer and ABFRL. Furthermore, Pharma major reported a 77.2% year-on-year jump in net profit, reaching Rs 801.3 crore for the first quarter that ended June 30, 2024. This marks a substantial rise from the Rs 452.3 crore net profit posted in the corresponding quarter of the previous year. Udaipur-based agrochemicals maker reported a 17.2% year-on-year increase in net profit, reaching Rs 448.8 crore for the first quarter that ended June 30, 2024. This compares to a net profit of Rs 383 crore posted in the corresponding quarter of the previous year.