The week in charts: Slowing urban demand, Swiggy windfall and PM internship scheme

Samvat 2080

As we enter Samvat 2081 today, a look at the Samvat 2080 denotes that the markets have had a good run. The Nifty50 has surged nearly 25% since the previous Samvat, fuelled by sustained gross domestic product (GDP) growth, strong corporate earnings, and ample liquidity. Tata-owned Trent emerged as the biggest winner in the past year, rising nearly 186%. A Mint inaugural quarterly survey of 16 analysts shows that the sentiment, though, is mixed for the times ahead. Opinions on the Sensex hitting the 100,000 mark by March 2025 are divided. While 47% of respondents expressed optimism, citing factors like continued economic growth and strong corporate earnings, 53% remain cautious, citing global challenges as a major concern.

Urban jitters

Coming in the Diwali week, the finance ministry’s economic review for September highlighted softening urban demand due to moderating consumer sentiment, Mint reported. The urban trend diverged from the rural trend. In 2023-24, rural demand fell due to poor monsoon rains. Urban consumer goods sales rose 11.5% year-on-year in Q2 FY25 vs 14.5% in rural and semi-urban areas, respectively, according to data from Bizom. Auto sales fell 2.3% in the April-September period, mainly on account of weaker sales in the second quarter. Housing sales and launches have also declined. The review also flagged potential risks from global market volatility and geopolitical tensions, which could further dampen household spending and economic growth.

Swiggy windfall

Food delivery and quick-commerce platform Swiggy, whose ₹11,300-crore IPO will open for subscription on 6 November, will see its early investors like Accel, Apoletto, Elevation Capital, and Norwest Venture Partners make significant gains, Mint reported. The company aims for a valuation of $11.3 billion, a slight increase from its previous $10.7 billion valuation. Accel will potentially make a 35x return, followed by Elevation Capital’s and Apoletto Asia’s 34x and 26x return on investment, respectively. The IPO will include a fresh issue and an offer for sale (OFS) by existing investors. Other investors like Tencent, Alpha Wave, Coatue, Prosus, and Meituan are also selling shares in the OFS.

Steel imports

Indian steelmakers are in for some relief as a recent surge in steel imports has seen an abrupt halt, Mint reported. Key exporting countries like China and Vietnam are grappling with compliance issues due to new Indian import regulations. Stricter import norms, including mandatory BIS certifications, have significantly reduced the number of Chinese steelmakers active in the Indian market. Vietnamese steelmakers are also facing challenges, with an ongoing anti-dumping investigation further hindering their exports to India. This dual pressure from regulatory hurdles and trade disputes has led to a decline in steel imports, providing much-needed relief to the domestic steel industry. The influx of cheap, often substandard steel had eroded profit margins for domestic steel producers.

Interns’ roll-call

Chennai and Bengaluru lead the way in offering the most internships under the Prime Minister’s scheme, followed by Gurugram and Hyderabad, Mint reported, citing government data. A state-wise look shows that Maharashtra offers the highest number of internships overall. Businesses in Chennai offer 7,875 internships, while Bengaluru offers 5,179. The top 10 districts account for over 39,200 of the total 127,000+ internships available. The top five sectors internships-wise are oil and gas, automotive and travel and hospitality, BFSI and metals and mining. Jubilant Foodworks, Eicher Motors, Larsen & Toubro, Tech Mahindra, Mahindra & Mahindra, Bajaj Finance, and Muthoot Finance are among the companies offering internships.

Chart of the week: Label alert

Nearly a quarter (27%) of urban Indians find it difficult to understand food nutrition labels, shows the findings of the latest YouGov-Mint-CPR Millennial Survey conducted in July 2024. The share is higher among residents of smaller cities. A region-wise analysis shows respondents living in South India found it most difficult to understand these labels. The survey results have been released by Mint over the last few weeks.

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