ONTENTS

Topic Page No.

1 Global……………………………...……... 1
2 India Inc..…………………………………. 2
3 Govt. Policies……………………………... 3
4 Start-Ups…………………………............... 4
5 Global Indices……………………………. 5
6 Equities…………………………………… 6
7 Nifty50…………………………………… 7
8 Sector Updates…………………………… 8
9 IPO……………………………………….. 11
10 Fixed Income…………………………….... 12
11 Risk……………………………………....... 13
12 Derivatives………………………………... 14
13 Commodities…………………………......... 15
14 Currency………………………………....... 16
15 Other Asset Classes……………………...... 17
16 AMC……………………………………..... 18
17 Mergers and Acquisitions….……………… 19
18 Strategy…………………………………... 20
19 Marketing and Branding…………………. 21
20 Opinion Poll……………………………… 22
 LOBAL
Denmark's Eco-Tax: Farming Forward Yen's Wild Ride: BoJ Takes Action
Denmark's coalition government has The Bank of Japan has raised its
approved a landmark plan to implement benchmark interest rate to 0.25% and
the world's first carbon emissions tax targeting farms, announced a reduction in its monthly bond purchases
significantly advancing the country’s environmental from ¥6tn to ¥3tn by spring 2026, marking a
efforts. Agriculture, predominantly pork and dairy significant policy shift. This move aims to address the
production, contributes significantly to Denmark’s yen's prolonged weakness, which has been
pollution. Consequently, the government will impose a exacerbated by contrasting US Federal Reserve
tax of $96 per cow annually starting in 2030, based policies. The yen strengthened over 1% to ¥150.70
on their greenhouse gas emissions. This initiative is part against the dollar following the announcement. The
of a broader agreement, allocating $3.7bn for rate hike, the highest since late 2008, reflects concerns
environmental restoration projects like tree planting over inflation driven by the weak yen, despite recent
and wetland creation. The tax will start at $43 per weak economic data. Core inflation remains above the
tonne of CO2-equivalent emissions in 2030, and will BoJ's 2% target, but Japan’s economy contracted
increase to $107 by 2035, with an initial 60% tax earlier this year. Market reactions indicate the
break, reducing the charge to $17 per tonne in 2030. potential for further yen appreciation, influenced by
The dairy sector, while supportive of climate goals, both BoJ's actions and future Fed policies. The BoJ’s
interest rate hike and bond purchase reduction could
expresses concerns about the complexity of the tax and
stabilize the yen and potentially enhance its value, yet
its competitive impacts. The revenue from the tax will
they may also pose risks of economic strain and market
aid the agricultural sector in adopting sustainable
volatility.
practices, with calls for alignment with EU regulations to
maintain market competitiveness. Portugal's Talent Attraction Reforms
Portugal has announced the reinstatement of
Geopolitical Tensions Rattle Oil Markets tax breaks aimed at attracting skilled foreign
India's oil import bill rose to $13.25bn in workers, reversing a previous decision to scrap
February, a 10% increase from the previous incentives perceived as inflating the housing market. This
month’s total of $12.04bn, despite a slight decrease in move, part of broader economic stimulus legislation,
domestic consumption, according to the Ministry of aims to enhance Portugal's economy by enticing
Commerce and Industry (MOCI). In the month of professionals to the country. The renewed policy will
february, Russia remained India's leading crude oil reintroduce a 20% flat tax rate on salaries and
supplier with shipments worth $3.61bn. This represents professional income for high-value-added jobs,
excluding dividends, capital gains, and pensions.
a 19% drop from January's $4.47bn, attributed to a
Notably, this flat rate contrasts with the progressive tax
decrease in discounts, which have plummeted from over rates currently in place for Portuguese citizens, ranging
$30 per barrel in 2022 to under $5 now. Saudi Arabia from 14.5% to 48%. This decision marks Portugal's
overtook Iraq as India's second-largest supplier, with latest adjustment in its approach to foreign workers,
imports surging 67.5% to $2.6bn from $1.55bn in amid ongoing debates over their economic impact and
January. Iraq, previously second for most of the past housing affordability. Critics argue that such incentives
two years, dropped to third with February imports of may exacerbate the cost of living for local residents,
$2.24bn, an 11.6% decrease from $2.54bn in while advocates see them as crucial for attracting
January. Geopolitical tensions in West Asia, including entrepreneurial and innovative talent. Portugal's
recent Iranian attacks on Israel, have intensified evolving immigration policies reflect a balancing act
between economic growth, demographic challenges,
concerns over oil supply security, adding to market
and social integration priorities within the EU
volatility. However, oil prices have stabilized below the framework. The goal is a strong economy, a broader
90 dollars per barrel mark. tax base, and support for Portugal's aging population.

01
 NDIA INC.
India's Push for Coal Power Expansion Indexation Benefits: A Goodbye
India's government has directed power In a significant shift announced in the 2024
companies to accelerate their procurement budget, indexation benefits for capital gains
of equipment, aiming to bolster coal-fired power tax on property transactions have been eliminated.
capacity by adding 31 gigawatts over the next 5- Previously, indexation helped adjust the purchase
6 years. This unprecedented move, aimed at price for inflation, potentially lowering the capital
gains tax. With this change, investors may face
meeting surging electricity demand, mandates
higher tax obligations as their inflation-adjusted
major players like NTPC, SJVN, Adani Power, and
returns could be taxed. The new tax regime imposes
Essar Power to collectively order equipment worth
a 12.5% long-term capital gains tax on properties
$33bn this year alone. Traditionally, companies
sold after July 23, 2024, which is a reduction from
decide on tendering timelines independently, but the previous rate of 20% with indexation benefits,
the recent directive underscores a strategic push by with potential total rates reaching up to 15% when
the government to expedite capacity additions. The including surcharges and cess. While this shift may
urgency arises as India grapples with record power initially seem unfavorable, the Finance Secretary
shortages amid robust economic growth and assures that 95% of property sellers will not
frequent heat waves. Bharat Heavy Electricals Ltd experience adverse effects. The new rates are
(BHEL) is expected to secure most contracts, having designed to simplify and rationalize the tax system,
monopolized equipment auctions last year, while aiming to benefit most taxpayers by reflecting
Larsen & Toubro's limited participation highlights actual market dynamics. According to the tax
market dynamics. Policy shifts and reduced orders department, the new regime will generally be
in recent years have led to the closure of advantageous for properties held for extended
manufacturing units of other equipment suppliers. periods, appreciating significantly.
This initiative seeks to address power deficits
Efficient Imports with Self-Certification
promptly, despite concerns about environmental The Indian government's amendment to
implications and India's carbon reduction goals. the Customs Act, which replaces the
India-UK Tech Security Leap traditional "certificate” of origin with "proof” of
The Governments of India and the origin, marks a significant advancement in import
UK have introduced the Technology Security facilitation under Free Trade Agreements (FTAs).
Initiative (TSI) to fortify their strategic alliance, Previously, importers were required to obtain a
recognizing the crucial role of technology in national "certificate" of origin from designated authorities to
security and economic development. This initiative confirm compliance with origin criteria, crucial for
underscores both nations' acknowledgment of customs clearance and duty determination. This
technology's pivotal impact on their security and process typically involved third-party verification to
economic progress. As outlined in the India-UK ensure adherence to trade regulations and
Roadmap 2030, the TSI will enhance collaboration agreements. The updated provision now empowers
across several vital technology sectors. A bilateral importers to self-certify the origin of goods, in line
framework, overseen by the National Security with global standards aimed at expediting customs
Advisors (NSAs) from both countries, will tackle trade procedures, enhancing operational efficiency, and
and technology issues, ensuring comprehensive reducing administrative complexities. This reform is
discussions on key areas of cooperation. Major focus poised to promote transparency and compliance,
areas include advancements in telecommunications, particularly beneficial for sectors like electronics,
critical minerals, semiconductors, artificial anticipating expedited cargo clearance and
intelligence, quantum technologies, biotechnology, improved business operations. It underscores India's
and advanced materials. Prime Minister Narendra commitment to modernizing trade facilitation and
Modi has emphasized his commitment to reinforcing India's appeal as a preferred trade
strengthening ties with the UK, particularly as the partner while simplifying regulatory requirements
Labour government prioritizes global partnerships. for international businesses.
02
 OVT. POLICIES
SIGHT Set for Hydrogen Future Capital Gains Tax Twist
The Ministry of New and Renewable Energy The Union Budget 2024, presented by
has announced the "Strategic Interventions Finance Minister Nirmala Sitharaman,
for Green Hydrogen Transition (SIGHT) Programme" brought several noteworthy adjustments to capital
aiming to produce 450,000 Tonnes Per Annum (TPA) gains taxes. The short-term capital gains (STCG) tax
of green hydrogen, with 40,000 TPA allocated for on equity investments has increased from 15% to
biomass-based pathways and the rest for 20%, while the long-term capital gains (LTCG) tax
technology-agnostic pathways. Managed by the has been raised from 10% to 12.5%. Additionally,
Solar Energy Corporation of India (SECI), the the exemption limit for LTCG has been elevated
scheme will see bidding based on the lowest from ₹1lkh to ₹1.25lkh, offering some relief to small
average incentive quoted, with specific bid investors. The removal of indexation benefits for real
capacities for each bucket. Launched on January 4, estate investments may significantly impact home
2023, with an outlay of ₹19,744cr up to FY 2029- sellers, who could face higher tax liabilities on
30, the national green hydrogen mission aims to property sales. The increase in STCG is expected to
decarbonize the economy, reduce fossil fuel imports, deter speculative trading, potentially reducing short-
and establish India as a leader in green hydrogen term market volatility. Conversely, the slight rise in
technology. The norms will identify gaps in existing LTCG is deemed manageable for long-term
testing facilities for components, technologies, and investors, who may continue to find equity mutual
processes in the green hydrogen value chain, and funds appealing due to India's robust economic
support the creation and upgrading of testing prospects. Overall, while the budget introduces
facilities to ensure safe operations. This initiative will higher taxes, it reflects a focus on fiscal responsibility
significantly decarbonize the economy, reduce and infrastructure investment, encouraging investors
dependence on fossil fuel imports, and enable India to adhere to a disciplined, long-term investment
to assume technology and market leadership in strategy.
Green Hydrogen.
China's Tech Visa Bottleneck Eases
India’s Oceanic Leap Forward
India’s Union Cabinet, led by Prime India is moving to address significant visa
Minister Narendra Modi, has approved the delays impacting Chinese technicians, a
signing of the Biodiversity Beyond National crucial step in easing the country’s manufacturing
Jurisdiction (BBNJ) Agreement, a pivotal sector’s woes. The Department of Promotion of
international treaty aimed at conserving and Industry and Internal Trade, in collaboration with the
managing marine biodiversity in areas beyond Ministries of Home and External Affairs, is
national borders. This treaty, also referred to as the developing a framework to expedite visa approvals
‘High Seas Treaty,’ is part of the United Nations for Chinese engineers and technicians. Currently,
Convention on the Law of the Sea (UNCLOS) and obtaining a visa for Chinese workers can take up to
focuses on sustainable marine use through 4-5 months, but the new rules aim to reduce this to
international cooperation. By signing this agreement, 30 days. This change comes in response to complaints
India will enhance its role in protecting global from businesses that the current slow visa process is
marine environments. The BBNJ Agreement hampering India’s ambition to become a major
emphasizes fair sharing of benefits and integrating manufacturing hub. The restrictions, imposed after a
traditional and scientific knowledge. For India, this 2020 border clash with China, had significantly
move opens up opportunities for increased scientific slowed Chinese investments and limited the issuance
research, access to marine samples, and of visas. By streamlining the process, India hopes to
collaborative conservation efforts. It also supports mitigate rising costs, unblock investments, and
India’s strategic interests by allowing a more active enhance the credibility of Indian firms. This move is
presence in international waters, strengthening critical as India seeks to boost its manufacturing
marine conservation, and promoting technology sector and offset the impacts of strained relations
transfer, which will benefit global marine health and with China, which have already led to substantial
India’s environmental commitments. losses in production and job opportunities.
03
 TART-UPs st th
Major Funding Raised by Startups for the Period 1 July'24 to 27 July'24
($ Million)
120

32.0 30.0 29.0

25.0 24.0 22.0 21.0 19.1 18.0 15.0 14.7 14.0

Source: Inc42
106 start-ups received approximately $882.6mn of funding. The funding fell below the $1bn mark. Will
In July, 68 startups majorly based out of Bangalore and Delhi raised an impressive $761mn in funding, showcasing the
funding scene in India continue to plummet?
the strength of the startup ecosystem. E-commerce-based startups dominated fundraising activities, reflecting
recognition and support for innovative solutions across industries through cutting-edge technology.
Hyperlab's Helios: Fitness Reimagined Wahter's Affordable Hydration Revolution
Hyperlab, an Ahmedabad-based startup, Amitt and Kashiish Nenwani, co-founders
is revolutionizing fitness with its innovative of Wahter, were inspired to make bottled
device, Helios. Co-founded by Hitarth Parikh and Chahil water affordable after witnessing a child drink from a
Patel, Helios enhances agility, reflexes, and stamina roadside puddle of water during a business trip.
using advanced laser projections to measure and record Established in 2023 in Gurugram, Wahter aims to sell
movement patterns. This provides invaluable data for bottled water at just ₹2 per 500 ml. The startup
athletes and fitness enthusiasts to improve their allocates 80% of its bottle label space to advertising
performance. Entirely manufactured in India, Helios partners, allowing them to customize designs and
offers customization to cater to various user needs. target specific markets via a tech-enabled platform.
Operating on a B2B model, Hyperlab has already Wahter's distribution network covers Delhi NCR, and
received 600 orders. The company aims to expand its
they have partnered with brands like Vijay Sales and
market presence, diversify its product line, and scale
production to reduce costs, making advanced fitness boAt Lifestyle to maximize reach. They also
technology more accessible. The founders are committed collaborate with Scrapbuddy to recycle PET bottles.
to enhancing athletic performance and overall health With projections of significant revenue growth, Wahter
through innovation and quality. With a focus on making expects to reach revenues of ₹250-300cr by FY
high-tech fitness solutions available to a broader 2025-26 and ₹3600cr by FY 2028-29. The founders
audience, Hyperlab envisions Helios becoming a are committed to making clean drinking water
significant player in the fitness industry, transforming how accessible to everyone, particularly underprivileged
fitness is perceived and practiced in India. communities.
Eco Rides for Urban Commutes
Snap E-Cabs, a Kolkata-based startup, is revolutionizing urban mobility with its electric vehicle (EV)
ride-hailing service. Founded by Mayank Bindal, the company addresses environmental concerns by
offering an on-demand fleet of electric cabs accessible via a user-friendly mobile app. This initiative aims to
combat air pollution and reduce carbon emissions in cities like Kolkata, where congestion and environmental
impact are significant issues. Snap E-Cabs provides convenient booking options for eco-conscious travelers,
emphasizing both ease of use and environmental responsibility. The startup plans to expand its EV fleet and
service coverage to meet increasing demand for sustainable transportation solutions. By integrating technology
with a strong commitment to sustainability, Snap E-Cabs is leading the way in promoting cleaner and efficient
urban transport options, positioning itself as a pioneer in the evolving landscape of eco-friendly ride-hailing
services and contributing positively to urban environmental health and quality of life.
04
 LOBAL INDICES
NASDAQ 100 (in USD) Nikkei225 (in JPY)
21,000 42,500

20,500 41,400

20,000 40,300

19,500 39,200

19,000
5.13% 38,100
1.34%
18,500 37,000
1-Jul 8-Jul 15-Jul 22-Jul 29-Jul 1-Jul 8-Jul 15-Jul 22-Jul 29-Jul

The Nasdaq 100, which surged early in the month, In July, the Nikkei 225 initially surged but ended the
ultimately dropped by 5.13% as concerns grew that month down 1.34%. Investors sold off export-related
the artificial intelligence boom might be losing steam. stocks as the yen strengthened against the dollar. The
The decline was prompted by a mixed earnings report index saw gains after Japan's central bank raised the
from Alphabet Inc., which included higher-than- benchmark interest rate to around 0.25%, marking the
expected capital expenses. Chip stocks were hit hard, first time since December 2008 that it exceeded 0.1%.
with NVIDIA and AMD falling by 5.86% and 8.38%, This shift in monetary policy reflects a significant change
respectively. in Japan's economic approach.
DAX Performance Index (in EUR) FTSE100 Index (in GBP)
8,400
18,850
8,330
18,630

18,410 8,260

18,190 8,190

17,970
1.11% 8,120

8,050
2.57%
17,750
1-Jul 8-Jul 15-Jul 22-Jul 29-Jul 1-Jul 8-Jul 15-Jul 22-Jul 29-Jul

In July, the DAX index rose by 1.11%, driven by London stocks finished July strongly, with the FTSE
positive earnings reports and anticipation of central 100 index increasing by 2.57%, achieving its best
bank decisions in the U.S. and U.K. The healthcare and performance since April. Gains in energy and
industrial sectors saw significant gains, with Merck and mining stocks, alongside positive corporate updates,
Airbus surging 9% and 6.3% respectively. Investors boosted market sentiments. HSBC bank surged
were encouraged by strong quarterly results. The 4.0% after pledging a $3bn share buyback and
market's focus was on upcoming central bank actions, reporting stable first-half profits that exceeded
which are expected to influence future policies. investor expectations.

18,550
Hang Seng Index (in HKD) KOSPI (in WON)
2,925
18,200
2,860
17,850 2,795
17,500 2,730

17,150 2,665

16,800
2.39% 2,600
1.20%
2-Jul 9-Jul 16-Jul 23-Jul 30-Jul 1-Jul 8-Jul 15-Jul 22-Jul 29-Jul

The Hang Seng Index hit its lowest level in three months in In July, South Korea’s benchmark KOSPI index
July. This was driven by weak performance in the property experienced volatility, ending the month with a 1.2%
sector and mounting challenges from recent pay cuts in the overall decline. This was driven by a decline in key
financial services sector. Investors are closely monitoring sectors like the automobile and ecommerce sectors.
upcoming data on Chinese companies’ industrial profits Foreign investors offloaded $29.85mn in shares,
which is expected to provide insights into second-quarter showing caution due to uncertainties around the U.S.
earnings for Chinese listed firms. Federal Reserve policies and domestic interest rate
Source: Investing
debates.
05
 QUITIES
FII Net Investment in July'24 (₹ Crores) DII Net Investment in July'24 (₹ Crores)
7500 7,500

5000 5,000

2500 2,500

0 0

-2500 -2,500

-5000 -5,000

-7500 -7,500
1-Jul 8-Jul 15-Jul 22-Jul 29-Jul 1-Jul 8-Jul 15-Jul 22-Jul 29-Jul
Source: NSDL Source: NSDL

In July, Foreign Institutional Investors (FIIs) were net buyers for the second month in a row, acquiring equities worth
₹5,407.8cr. Domestic Institutional Investors (DIIs) continued their buying trend, investing ₹23,486cr in equities. This
purchasing activity was driven by strong fiscal discipline and positive earnings growth in the broader market. The
recent changes in taxation did not pose any significant obstacles to the market.
TCS leads the way for IT
The Indian IT sector captured significant attention on Friday, fueled by Tata Consultancy Services' (TCS) impressive
June quarter earnings that surpassed market expectations. This positive performance acting as a catalyst sparked
a rally in IT stocks, driving the Nifty IT index to a fresh 52-week high of 38,698.9 marking a substantial 3.7%
increase above the previous closing. The company's consolidated net profit for the quarter stood at ₹12,040cr and
reported revenue from operations at ₹62,613cr. The wave of optimism generated by TCS's performance
extended to other major IT firms as well. This surge in IT stocks played a crucial role in pushing the Nifty 50 and
Sensex to record highs. Brokerages highlighted their positive outlook on the sector throughout the year and
anticipated that robust deal-wins from recent quarters would gradually translate into revenue growth as US
macroeconomic conditions improve. As investor confidence remains buoyant, the IT sector is poised to continue its
significant contribution to the overall strength of the Indian stock market.

1st July'24 31st July'24

Index Change (%) Trend
(In ₹) (In ₹)
NIFTY Auto 25,324 26,685 5.4
NIFTY Bank 52,575 51,553 1.9
NIFTY Consumer Durables 38,666 39,762 2.8
NIFTY Financial Services 23,631 23,412 0.9
NIFTY FMCG 57,155 62,082 8.6
NIFTY IT 36,869 40,851 10.8
NIFTY Media 2,041 2,150 5.4
NIFTY Metal 9,883 9,583 3.0
NIFTY Oil & Gas 12,270 13,255 8.0
NIFTY Pharma 19,758 21,777 10.2
Source: NSE

06
 IFTY50 NIFTY50 July'24 (in ₹)
26,000

25,600

25,200

24,800

24,400

24,000
3.35%
1-Jul 8-Jul 15-Jul 22-Jul 29-Jul
Source: NSE India
In July 2024, the Nifty 50 index rose by 3.35%, ending the month at 24951.2, reflecting strong
performance despite daily volatility. On July 31, Indian indices reached new closing highs, driven by
positive global cues, including Fed Chair Jerome Powell's indication of a potential US interest rate cut in
September amid easing inflation and a cooling job market.

A Bold Step Towards Clean Mobility Adani goes global

Bajaj Auto, a pioneer in the Indian The Indian giant, Adani Group set its
motorcycle industry has disrupted the sight on Vietnamese flourishing trade
market with the launch of the world’s first CNG and has secured an “in principle approval” to build
bike, Freedom 125 at affordable prices. This lead a port at Da Nang. This “greenfield” project will
and sulfur-free innovation can significantly reduce include container terminals and multipurpose berths
CO2 emissions and noise pollution. The potential to to handle cargo and shipments. After the success of
deliver substantial cost savings while being Adani’s new mega port in Southern India, the
environmentally friendly to its customers resulted in company emphasized its fourth international port
the company receiving 6000 orders in the first asset in an attempt to capture the overseas market
week itself. Powered by a 125cc single cylinder and fulfill the goal of making India a maritime hub.
engine, this product is available in 6 colours and Their prime focus lies on countries with high
three variants. The dual-fuel capability provides for manufacturing output or a large population that will
a CNG tank that covers essentially 200 kms in just 2 eventually lead to high consumption. Currently,
kgs of CNG fuel and an extended 2L petrol tank international operations account for 5% of the total
that offers an additional 130 kms in case of volume of Adani Ports and Special Economic Zone
exhaustion of the CNG fuel. Ltd. but it plans to double this figure by 2030.

Top Gainers|NIFTY50 |July’24 Top Losers |NIFTY50 |July’24

Company Name Change (%) Company Name Change (%)
Oil & Natural Gas Corp Ltd. 22.4 Axis Bank Ltd. 7.6
HDFC Life Insurance Co. Ltd. 19.1 Bajaj Finance Ltd. 6.5
Infosys Ltd. 17.4 HDFC Bank Ltd. 5.3
SBI Life Insurance Co. Ltd. 15.2 Tata Steel Ltd. 5.0
ITC Ltd. 16.8 Nestle India Ltd. 4.4
Tata Motos Ltd. 15.4 Reliance Industries Ltd. 3.5
Bharat Petroleum Corp Ltd. 14.9 Hindalco Industries Ltd. 2.9
Sun Pharma Industries Ltd. 13.1
NTPC Ltd. 12.5
HCL Technologies Ltd. 11.8
Source: NSE

07
Pharma Sector
ECTOR UPDATES Oil and Gas Sector
The index surged by 10.22%, fueled The sector saw an overall increase of
by robust quarterly results and the 8% for the month, starting with modest
exemption of customs duty on three cancer drugs in gains before encountering mixed increases and
the Union Budget, which notably benefited declines. Early optimism was tempered by market
AstraZeneca. Additionally, industry players volatility driven by shifting supply-demand
received approvals to launch new products in the dynamics and geopolitical concerns. Notably, India
US and Mexico, further boosting growth prospects. cut its windfall tax on petroleum crude from ₹7,000
Granules India Ltd. emerged as the top gainer with to ₹4,600 per metric ton, effective August 1, which
a 27.38% increase, reflecting significant positive influenced market sentiments. Despite mid-month
sentiment. strength, the sector ended with a mixed outlook,
with ONGC as the top gainer, rising by 22.44%.
NIFTY Pharma July'24 (in ₹)
22,000
21,400 NIFTY Oil & Gas July'24 (in ₹)
13,500
20,800
13,100
20,200
19,600
10.22% 12,700

19,000
12,300
01-Jul 08-Jul 15-Jul 22-Jul 29-Jul
Source: NSE
11,900
8.09%
FMCG Sector 11,500
01-Jul 08-Jul 15-Jul 22-Jul 29-Jul
By the end of the month, the index had Source: NSE
gained approximately 8.62% driven Consumer Durables Sector
by increased rural consumption outpacing urban
The AC segment of the sector outperformed
consumption in Q4FY23. The budget allocated
due to expectations of a strong quarter
₹2.66 lkh cr for rural development, focusing on
as rising temperatures increased demand for air
employment and tax benefits, which are expected
conditioners in the April-June quarter. Consumer
to boost consumption further. Additionally,
Electronics and Appliances Manufacturers
companies are anticipating the upcoming festive
Association (CEAMA) anticipates 14mn RAC sales in
season of Rakshabandhan and are planning to
2024, implying a volume growth of 27% year-on-
increase their advertisement expenditure in
year. Nifty Consumer Durables index gained 2.8%
response. Colgate Palmolive Ltd. was the top
this month, with TTK Prestige Ltd. being the top
gainer with a 19.24% increase, while Nestle India
was the top loser, declining by 4.35%. gainer and Amber Enterprises Ltd. the top loser with
16.87% and 3.43% respectively.
NIFTY FMCG July'24 (in ₹)
NIFTY Consumer Durables July'24 (in ₹)
64,000
41,000

62,000
40,000

60,000
39,000

58,000
38,000

56,000
8.62% 37,000
2.80%
54,000
01-Jul 08-Jul 15-Jul 22-Jul 29-Jul 36,000
01-Jul 08-Jul 15-Jul 22-Jul 29-Jul
Source: NSE
Source: NSE

08
 ECTOR UPDATES Media Sector
Telecom Sector
The sector is eagerly advancing The Nifty Media sector increased
towards 6G technology, harnessing the by 5.35% overall despite significant
power of AI with ambitious plans to bring it to volatility. While most companies reported widening
commercialization by 2029-2030. At the same losses in their Q1 results, SunTV performed strongly
time, the Department of Telecommunications (DoT) is due to a substantial ₹280cr deal and a broadcast
overhauling the classification of traded telecom agreement with Measat. The sector benefited from
equipment to enhance trade tracking. However, in a technological advancements and increased demand
surprising twist in the Union Budget, Finance Minister for OTT content, improving investor sentiment and
Nirmala Sitharaman proposed raising the Basic market performance. Network 18 Media and
Customs Duty (BCD) on telecom equipment from Investments Ltd. was the top gainer, rising 19.48%,
10% to 15%, a move that diverges from industry while Zee Entertainment Enterprises Ltd. was the
expectations. top loser, falling 2.79%.
Addition During May'24 (Lakhs) NIFTY Media July'24 (in ₹)
2,200

21.95 2,140
12.50
2,080

2,020
-9.24
1,960

1,900
5.35%
01-Jul 08-Jul 15-Jul 22-Jul 29-Jul
Source: NSE

Auto Sector IT Sector

In July, the Nifty Auto index gained 5.38%, The index surged by 10.8% in July, fueled
driven by strong sales expectations and by positive quarterly results from some
positive investor sentiment. Major automakers like IT giants, although overall sentiment remained
Maruti Suzuki, Mahindra & Mahindra, and Tata cautious due to global economic uncertainties. The
Motors were set to announce robust quarterly sector saw mixed earnings, with some companies
results, boosting market optimism. The auto sector exceeding expectations while others faced
maintained a positive sales outlook, with two- challenges from slowing deal closures and project
wheelers performing well and new launches like the delays. The rupee's depreciation against the US
Tata Curvv EV generating excitement. Tata Motors dollar helped increase revenue margins. IT
was the top gainer, gaining by 15.43%, while Tube companies continued to focus on digital
Investments of India emerged as the top loser, transformation, Generative AI, and cloud services.
falling by 2.28%.
NIFTY IT July'24 (in ₹)
NIFTY Auto July'24 (in ₹) 41,500
27,000
39,900
26,300
38,300
25,600
36,700
24,900

24,200
5.38%
35,100
10.80%
23,500 33,500
01-Jul 08-Jul 15-Jul 22-Jul 29-Jul 01-Jul 08-Jul 15-Jul 22-Jul 29-Jul

Source: NSE Source: NSE

09
 ECTOR UPDATES
Financial Services Sector Banking Sector
The Nifty Financial Services sector The index ended the month down 1.94%
showed moderate fluctuations due to a amid volatility and disappointing earnings.
mix of regulatory measures, macroeconomic factors, New RBI norms propose increasing the liquidity
and global financial trends and ended the month cover for 'stable deposits' from 5% to 10% and for
marginally 0.93% down. The Reserve Bank of 'less stable deposits' from 10% to 15%, aiming to
India's ongoing regulatory actions aimed at enhance the liquidity management of banks. A
ensuring financial stability influenced investor deposit crunch and rising borrowings suggest a shift
sentiment. Additionally, the sector was impacted by in savings behavior, with more individuals investing
concerns over inflation and broader global in capital markets instead of keeping money in
economic uncertainties. ICICI Prudential Life banks. The top gainer was Federal Bank, up by
Insurance was the top gainer in the sector. 13.3% during the month.
NIFTY Financial Services July'24 (in ₹)
24,500 53,500 NIFTY Bank July'24 (in ₹)
24,000 52,400

23,500 51,300

23,000 50,200

22,500
0.93% 49,100
1.94%
22,000 48,000
01-Jul 08-Jul 15-Jul 22-Jul 29-Jul 01-Jul 08-Jul 15-Jul 22-Jul 29-Jul
Source: NSE Source: NSE

Realty Sector Metal Sector

The Nifty Realty index had a volatile month, In July, the metal sector index saw a notable
ending with a marginal decline of less than decline of approximately 3.03%. Concerns
1%. The removal of indexation benefits for long-term about a potential global economic slowdown and
capital gains on property sales, as outlined in the Union weakening metal prices negatively affected investor
Budget, negatively impacted the sector. However, sentiment. Additionally, China's economic slowdown, as
some realty companies, like DLF, reported strong a major consumer of metals, put downward pressure
quarterly results, including a remarkable 214% year- on metal prices. Increased inventory levels among
on-year increase in new sales bookings, which led to metal producers further fueled worries about demand-
the index’s recovery. Swan Energy remained the top supply imbalances. Among the sector's performers,
gainer with a 23.35% increase, while Macrotech Welspun Corp. emerged as the top gainer with a
developers experienced a 13.98% decline. 14.7% increase, while JSL was the top loser, falling by
8.73%.
NIFTY Realty July'24 (in ₹)
1,170
10,500 NIFTY Metal July'24 (in ₹)
1,130 10,100

1,090 9,700

1,050 9,300

8,900
1,010
0.66% 3.03%
8,500
970 01-Jul 08-Jul 15-Jul 22-Jul 29-Jul
01-Jul 08-Jul 15-Jul 22-Jul 29-Jul
Source: NSE Source: NSE

10
 PO
IPO Goldmine: A Winning Debut Bansal Wire's Fresh Issue
Sanstar Limited, a leading Indian Incorporated in December 1985,
manufacturer of plant-based specialty Bansal Wire Industries Limited (BWIL)
products and ingredient solutions for food, animal specialises in manufacturing over 3,000 types of
nutrition, and industry, operates advanced facilities steel wire products, including high-carbon, low-
in Dhule and Kutch. They produce high-quality carbon (mild), and stainless steel wires. The
ingredients like liquid glucose, maltodextrin powder, company caters to more than 5,000 customers
and maize starches, renowned for enhancing global across various industries, offering a wide range of
food and industrial applications. With over six wire sizes from very thin to very thick. Recently,
decades of combined expertise, Sanstar Limited is BWIL made a significant stride by launching its IPO
recognized for innovation and reliability. Their as a book-built issue, raising ₹745cr through the
recent IPO, valued at ₹510.15cr, consists of a fresh issuance of 2.91cr shares. Priced between ₹243 to
issue of 4.18 crore shares worth ₹397.10cr and an ₹256 per share with a face value of ₹5, the IPO
offer for sale of 1.19 crore shares totaling
debuted at a robust market premium of 39%.
₹113.05cr. The company plans to use net proceeds
Managed by SBI Capital Markets Limited and Dam
from the fresh issue for expanding its Dhule facility,
Capital Advisors Ltd, the offering's proceeds are
repay debt, and other general corporate purposes.
earmarked to repay debt, bolster working capital
Subscription ran from 19 July to 23 July 2024, with
listing planned for 26 July 2024 on the BSE and reserves, and support general corporate
NSE. Sanstar's shares are listed at a 10.83% objectives. BWIL's successful IPO debut underscores
premium on the BSE, priced at ₹106.4 per share. its dedication to innovation and industry
leadership, cementing its position as a prominent
Dose of Delight in Pharma player in the wire manufacturing sector.
Established in 1981, Emcure
Pharmaceuticals Limited is an Indian IPO Size
Upcoming IPOs
firm specializing in the development, manufacture, (Approx.)
and global distribution of a diverse portfolio of Ola Electric Mobility Ltd. ₹ 6,145 Cr.
pharmaceutical products across key therapeutic Brainbees Solutions Ltd. ₹ 4,193 Cr.
areas. The company recently conducted an IPO Ceigall India Ltd. ₹ 1,252 Cr.
amounting to ₹1,952cr through a book-built issue. Unicommerce eSolutions Ltd. ₹ 276 Cr.
This offer consisted of a fresh issue of 0.79 crore Electric Dreams: Tunwal’s IPO Unveiled
shares, raising ₹800cr, and an offer for sale of Founded in October 2013, Tunwal E-Bike
1.14 crore shares, amounting to ₹1,152cr. Notably, stands as a prominent player in the
the offering garnered significant investor interest, electric vehicle industry, specializing in the
with the subscription rate reaching 67.9 times the manufacturing of 100% electric two-wheelers. The
total shares available. In detail, the retail investor company is at the forefront of revolutionizing
category saw a subscription rate of 7.4 times, mobility by offering both economical and premium
while the Qualified Institutional Buying (QIB) electric scooter options designed to meet diverse
category saw an overwhelming subscription rate of consumer needs. Tunwal E-Motors is now entering the
191.24 times, and the Non-Institutional Investor capital markets with an initial public offering (IPO),
(NII) category stood at 49.3 times. Emcure aiming to raise ₹115.64cr. The IPO is priced at ₹59
Pharmaceuticals shares debuted strongly on July per share. The IPO was subscribed 12.3 times and
10th, opening at ₹1,325.05, marking a 31.5% got listed at a premium of 8.5% on July 23, 2024.
premium over the issue price of ₹1,008 per share. The high subscription rate and premium listing
The company intends to utilize the net proceeds underscore investor optimism about Tunwal E-Motors'
from the fresh issue primarily to repay existing potential, signaling strong market confidence in the
debt obligations and for general corporate company's future growth and its role in advancing
purposes. electric mobility.

11
 IXED INCOME
US 10 Year Treasury Yield July'24 (in %) Fiscal Deficit Drops, Bonds Soar!
4.5 The FY24-25 budget brings notable
changes to the bond market, starting
4.4
with the government lowering its fiscal deficit target to
4.3
4.9% of GDP, down from the previously proposed
4.2 5.1% in the Interim Budget. Additionally, the Centre has
revised its gross borrowing target for 2024-25 to
4.1
6.23% ₹14.01 lkh cr, which is ₹1.4 lkh cr lower than earlier
4
1-Jul 8-Jul 15-Jul 22-Jul 29-Jul
estimates for FY24. This reduction in borrowing is
Source: US Department of the Treasury significant as the government primarily finances its fiscal
In July, several factors affected the yield on the US deficit through the issuance of bonds. The lower fiscal
treasuries, causing volatility. The 10-year U.S deficit and reduced borrowing could lead to a
Treasury yield began at 4.48% before gradually decrease in the supply of sovereign bonds, potentially
decreasing to 4.16%. It then stabilized around driving up bond prices and lowering yields.
4.25% before falling to 4.1% by the end of the Furthermore, a key policy shift in the budget involves
month. Treasury yields slipped after key June taxing capital gains on unlisted bonds under section
inflation data. These yield movements were also 50AA of the Income Tax Act. This measure is expected
shaped by Federal Reserve signals and economic to incentivize the issuance and investment in listed
conditions. Investors seek clearer signals on future bonds, as investors seek more tax-efficient options.
rate cuts and their timing, investors believe that rate These changes are likely to have a considerable impact
cuts are imminent and will be significant, resulting in on investor behavior and the overall dynamics of the
the yields falling, reflecting expectations of a more bond market.
accommodative monetary policy in the future,
ahead of the US elections. Inflation
RBI's Tactical Bond Balancing Act The consistent downtrend in inflation since December
In response to the surge in foreign capital 2023 has been broken with a 4-month high inflation of
inflows following the inclusion of Indian 5.08% in June. The trend of rural inflation being more
sovereign bonds in JPMorgan’s Emerging Market Bond than urban inflation remained constant. Inflation which
Index, the Reserve Bank of India (RBI) has implemented had been under the 5% threshold for the last 3 months
strategic measures to stabilize the market. During the was breached by a rise in food prices which rose by 67
week ending July 14th, the RBI sold $406mn worth of bps to 9.36%. Economists expected food inflation to be
bonds in the secondary market over four days, aiming higher on account of the impact of higher MSP on the
to manage the liquidity influx and curb volatility. food basket but this rise was mainly caused by the
Concurrently, the RBI bolstered its reserves by $9.7bn. delay in monsoon.
Foreign inflows into Indian bonds have surged,
exceeding $1bn in July alone and totaling $7.2bn since
June, as reported by the Clearing Corporation of India Month Inflation (%)
(CCIL). These inflows have been driven by increased
June'24 5.08
demand from global investors seeking to capitalize on
India’s growing market presence. By selling bonds, the May'24 4.75
RBI is absorbing excess cash from the system to
stabilize the bond market, balancing the inflow of April'24 4.83
foreign capital with its monetary policy goals of
controlling inflation and managing exchange rates. This March’24 4.85
approach reflects the RBI’s commitment to maintaining
market stability and fostering a conducive economic February’24 5.09
environment. Source: MOSPI

12
 ISK
Japan's Reaction to Russia-North Korea Pact Cloud Crash Chaos
Putin’s recent defense agreement with On July 18, 2024, a major global outage
North Korea significantly impacts Japan’s impacted Microsoft 365, Azure, and other
strategic planning. The Russia-North Korea axis, services due to a critical bug in a CrowdStrike
including the potential delivery of precision weapons software update. This bug, stemming from a null
to Pyongyang, largely increases the threat to Japan,
pointer error, caused severe memory access
with implications for U.S. bases there. Moscow’s aid
to North Korea's missile programs, particularly violations and system crashes. The disruption
ICBMs, could enable retaliation against the U.S., affected millions of users worldwide, leading to
raising the risk of decoupling from its Northeast Asian significant operational and service disruptions across
allies. Putin’s nuclear threats complicate Japan’s various sectors. CrowdStrike and Microsoft quickly
security, especially given North Korea’s bolstered responded to the crisis, working tirelessly to issue
capabilities. Japan’s Indo-Pacific strategy faces new patches and provide support to affected customers.
challenges, particularly with increased Russian This incident underscores the critical need for
influence and cooperation with China. Prime Minister rigorous code reviews and thorough testing
Kishida must address defense spending and manage processes in software development. Additionally, it
diplomatic relations amidst these threats. The U.S.,
highlights the importance of collaboration between
Japan, and South Korea must strengthen trilateral
ties and crisis management, especially with tech companies to ensure robust security and
simultaneous challenges from China and Russia. This reliability of their services. The outage serves as a
situation underscores Japan’s vulnerability and the stark reminder of the vulnerabilities inherent in even
need for robust, coordinated responses to maintain the most advanced systems and the necessity of
regional stability. Strengthening defense capabilities continuous vigilance and proactive measures to
and enhancing regional alliances are essential for safeguard against such major disruptions in the
Japan to navigate this complex and evolving security future.
environment effectively and efficiently.
India VIX July'24
Potential Market Downturn 16

Recent weaknesses in the S&P 500 raise 15

concerns about a potential medium-term 14
global risk-off event. Significant losses in the 13
"Magnificent 7" stocks—Apple, Amazon, Microsoft,
Nvidia, Tesla, Alphabet, and Meta—have contributed 12
4.19%
to the worst daily performance for the Nasdaq 100 11
1-Jul 8-Jul 15-Jul 22-Jul 29-Jul
since October 2022. This decline highlights risks of a Source: NSE India
medium-term downturn for the S&P 500, which may In July 2024, the Indian VIX exhibited significant
trigger broader risk-off sentiments in global markets.
volatility, opening at 13.64 and peaking at 16.06
Key factors include the S&P 500's low implied
on July 22. The index dropped to its lowest point
volatility and stock correlation, which may reverse,
causing further sell-offs if upcoming earnings reports of 11.27 on July 24. The first ten days showed a
are disappointing. A critical support level is 4310; downward trend, with minor fluctuations. Mid-
breaching this could confirm the downturn. month, volatility increased sharply, reflecting
Geopolitical tensions, economic data, and central market uncertainty and investor sentiment. The VIX
bank policies will also influence market direction. closed the month at 13.3 on July 30, slightly lower
Investors should closely monitor these elements, as than the opening value, highlighting ongoing
they could exacerbate market instability. The market turbulence and investor concerns throughout
interplay between earnings results and the period. The VIX's movement underscores the
macroeconomic indicators will be crucial in fluctuating risk perceptions in the market during
determining the market's trajectory in the coming July.
months.

13
 ERIVATIVES
Europe’s First Covered Call ETPs SGX Thrives on RBI’s Curbs
Leverage Shares has introduced Following recent regulatory changes by
Europe’s first covered call exchange the Reserve Bank of India (RBI) concerning
traded products (ETPs) focused on single stocks. The rupee/dollar currency futures, traders have
initial lineup includes three ETPs targeting Nvidia, observed a significant transformation in market
Tesla, and the SPDR Gold Shares ETF (GLD). dynamics. The RBI's initiative aimed to promote
Covered call strategies involve selling call options on greater domestic trading of rupee derivatives,
underlying assets, generating premium income while thereby enhancing regulatory oversight and control
capping potential gains. This approach has seen over currency fluctuations. However, revised rules
significant growth in the US, with assets rising from mandating underlying foreign exchange exposures
$16.6bn in early 2022 to $77.1bn, driven by funds for trading in local exchange derivatives
like JPMorgan’s Equity Premium Income ETF (JEPI). inadvertently prompted a surge in trading activities
European adoption remains limited, with the on the Singapore Exchange (SGX). This unintended
JPMorgan Global Equity Premium Income ETF (JEPG) consequence is evidenced by a substantial increase
holding just $154mn. However, Leverage Shares in open interest up by 400% since the beginning of
aims to fill this gap, capitalizing on increased the year, now amounting to 268,000 contracts with
volatility in individual stocks to enhance premium a notional value nearing $6.5bn. In contrast, the
income. Their ETPs will sell slightly out-of-the-money National Stock Exchange of India (NSE) has seen a
call options, balancing yield with potential capital significant decline in open interest, down to 2.7
gains. Leverage Shares plans to expand this offering million contracts valued at $2.7bn. The shift
with additional ETPs under a new IncomeShares underscores challenges faced by regulatory bodies
brand and is preparing to launch index-based in aligning market behaviors with policy objectives,
derivative income ETPs soon. potentially impacting liquidity and hedging
strategies in the region's currency markets.
EU's First Perpetual Futures Venue
One Trading has achieved a notable Trading Costs Soar: STT Increase
milestone by becoming the sole provider The Indian government has proposed
of perpetual futures trading in the European Union a 60% increase in the Securities Transaction
and the first to offer cash-settled perpetual Tax (STT) on select equity derivative transactions, as
contracts throughout Europe. This advancement outlined in the recent budget. The new rates,
follows the award of an Organized Trading effective October 1, will raise the STT on option
Facility (OTF) license from the Dutch Authority for sales from 0.0625% to 0.1% of the option premium
the Financial Markets (AFM), allowing the company value and on futures sales from 0.0125% to 0.02%
to operate as a regulated crypto derivatives of the futures price. This change translates to an
exchange. Previously known as Bitpanda Pro, One increase from ₹62.5 to ₹100 per lakh for options,
Trading is now officially recognized under the and from ₹12.5 to ₹20 per lakh for futures. The
Markets in Financial Instruments Directive (MiFID) II. hike aims to moderate the high trading volumes in
This regulatory designation expands the company's the futures and options category, which has surged
ability to provide institutional-grade solutions within
by more than 40 times in daily notional turnover
the digital asset space. The introduction of cash-
from May 2018 to June 2024. Market experts
settled perpetual contracts is expected to attract a
anticipate that this increase, along with potential
diverse range of institutional investors, who have
previously lacked such opportunities within the EU regulatory measures from Sebi, may dampen
market. The company has outlined plans to launch overall trading volumes. Analysts suggest the STT
regulated products, starting with Bitcoin and rise targets high-frequency traders and may
Ethereum, to fill the existing gap in onshore EU- indirectly discourage retail participation in the F&O
regulated venues. segment.

14
 OMMODITIES
Gold Spot Price (in ₹ per 10 grams) Crude Oil Spot Price (in ₹ per barrel)
7,150
73,000
6,950
71,400
6,750
69,800
6,550
68,200

66,600
3.44% 6,350
8.05%
65,000 6,150
1-Jul 8-Jul 15-Jul 22-Jul 29-Jul 1-Jul 8-Jul 15-Jul 22-Jul 29-Jul
Source: MCX Source: MCX

Gold prices on MCX hit a three-month low The Indian basket of crude oil experienced
of ₹67,700, down from ₹74,700 on July 17, notable fluctuations this month, opening at
2024. Gold rate on MCX has dropped by nearly ₹6,800 per barrel and closing at ₹6,200. These
3.44% in July, the biggest monthly drop since May changes closely followed global Brent crude trends
2021. Comex Gold's fall below $2,375 pressured and were affected by the Rupee's fluctuation against
MCX Gold, dropping it by ₹1,100 to settle at the US Dollar, impacting import costs. Key factors
₹67,850. The Union Budget 2024's unexpected cut in included OPEC+ maintaining current production
gold customs duty caused prices to drop over five levels despite calls to increase output to control rising
percent in one day, erasing around ₹10.7 lkh cr in prices, alongside increasing demand for crude oil in
value, marking the sixth-largest wealth erosion in China. Meanwhile, US shale oil production increased,
Indian market history. The market experienced and a 7 million barrel drop in US inventories
significant movement, peaking mid-month due to indicated strong domestic consumption and exports.
heightened demand and global economic factors. The overall market sentiment was bullish, driven by
these supply constraints and a recovering global
Loophole Exploitation in Platinum Imports
demand, highlighting the complex interplay of
India's surge in platinum imports in the last geopolitical and economic factors in the oil market.
4 weeks from mid-June has stirred the
India's Edible Oil Imports Decline
bullion market, revealing a clever use of regulatory
India's edible oil imports dipped to 10.09
gaps. Dealers labeled alloys containing around
million tonnes (mt) in the first eight months
90% gold as platinum to dodge higher duties,
of the 2023-24 oil year, marking a 2.62% decline
bringing in more than 13 metric tonnes of alloys,
valued at approximately $1bn, far surpassing the from the previous year's 10.36 mt. Yet, June 2024
9.97 metric tons imported in 2023. This clever witnessed a resurgence with imports surging to 1.52
masking exploited a rule-defining alloy with over mt, a 16.46% increase from June 2023. The Solvent
2% platinum as platinum. Thanks to a trade Extractors' Association of India (SEA) highlighted a
agreement with the United Arab Emirates, platinum reduction in palm and soybean oil imports. Palm oil
incurs only a 5% duty compared to gold’s duty of imports fell to 5.7 mt from 6.03 mt, while soybean
15%. This allows dealers to sell refined gold at oil imports dropped to 1.86 mt from 2.48 mt.
enticing discounts, disadvantaging legitimate Conversely, sunflower oil imports soared to 2.46 mt
importers. As a result, India's tax revenue from from 1.85 mt. Indonesia and Malaysia remained key
these sources has dropped, and gold discounts have suppliers, while Russia led in sunflower oil exports.
widened, causing significant market disruptions. SEA’s Executive Director, BV Mehta, urged a hike in
Gold discounts soared to $34 per ounce, the highest duty differences between crude and refined oils,
in three and a half months. This situation highlights proposing a 15% differential to bolster domestic
the need to review import rules to ensure fairness production and reduce import dependence to 15-
and stability. 20% over the next decade.

15
 URRENCY
US Dollar Index (USD) Zambia’s De-dollarization Push
Zambia is making headlines with the
106.5 adoption of a de-dollarization policy which
105.7 1.37% aims at phasing out the use of foreign currencies
104.9 including US Dollars and strengthening Kwacha,
104.1
their local currency as the sole tender for all
103.3
domestic transactions. Yet to be approved as a
102.5
1-Jul 8-Jul 15-Jul 22-Jul 29-Jul statutory instrument by the Minister of Finance and
Source: Investing National Planning, this bold move intends to
In July, the US Dollar Index surged near the 104.2 mark strengthen the economy and reduce Zambia’s
after its four-month low of 103.6. The upcoming US dependence on the US Dollar. Dollarization does not
elections and the Federal Reserve Policy are expected only hinder the economy’s exchange rate policy
to dampen investor sentiments. The probability of management system but also exposes the economy
Donald Trump emerging victorious is leading investors to to liquidity and credit risk. Non-compliance with the
seek the safe haven of US dollars. Critical remarks regulations regarding the use of Kwacha could
regarding Fed rate cuts to battle inflation and an
result in the violators facing 10 years of
expansionary monetary policy could significantly bolster
imprisonment or hefty fines.
the dollar causing the US Dollar Index to rise.

India's Forex Reserves Rise FOREX Reserve (USD Bn)

India’s Forex Reserves hit an all-time high of 4.6
4.6
18.2
$670.85bn in the third week of July. Foreign Currency 4.5
4.5 18.1
18.0
Assets experienced a notable jump to $588.05bn 18.0

following the announcement of Indian bonds inclusion in 58.7 60.0

the JP Morgan Global Bond Index. Concurrently, gold 56.5
57.4

reserves rose to $60bn whereas SDRs increased to

$18.21bn. The recent depreciation of several
currencies like the Yuan, Yen, and Won helped RBI in 585.5 588.0
572.8 577.1
making Indian exports more attractive globally. The
RBI strategically weakened the dollar which benefited
the exporters and helped maintain substantial forex 28-Jun 5-Jul 12-Jul 19-Jul
Foreign Currency Assets Gold SDRs Reserve Position in the IMF
reserves. Source: RBI

Currency 1st July'24 31st July'24 Change (%) Trend

INR/USD INR 83.4415 INR 83.7002 0.34

INR/EUR INR 89.5900 INR 90.7530 1.14
USD/EUR USD 1.0736 USD 1.0844 1.01
JPY/USD JPY 161.5050 JPY 150.1665 7.02
CAD/USD CAD 1.3738 CAD 1.3807 0.50
USD/GBP USD 1.2645 USD 1.2852 1.64
USD/SEK USD 0.0941 USD 0.0936 0.53
USD/CHF USD 1.1072 USD 1.1394 2.91
Source: Investing

16
 THER ASSET CLASSES
Bengaluru Dominates Real Estate Market Liquidity Boosts Crypto Stability
In Q1 2024, Bengaluru emerged as a The stablecoin market cap has surged to
dominant force in India's real estate market $164bn, marking a significant recovery after
with 16,995 housing units sold, marking a 30% growth months of stagnation. This growth is primarily driven by
year-on-year. Despite a 15% decline from the record Tether’s USDT, which has reached an all-time high
set in Q4 2023, Bengaluru showed significant recovery, market cap of $89bn. Stablecoins are cryptocurrencies
exceeding the quarterly average sales volumes from designed to maintain a stable value by being pegged
2019-2022 by 124%. The city's appeal lies in its to a reserve asset, such as a fiat currency or commodity.
robust infrastructure, thriving IT sector, and favourable This stability makes them appealing for investors seeking
business conditions, attracting both investors and to avoid the volatility typical of other cryptocurrencies.
homebuyers. Notably, 90% of sales were in under- The expansion represents a major trend reversal from
construction projects, indicating strong buyer confidence. the prolonged downturn that began in May 2022 during
Bengaluru, Mumbai, and Pune collectively accounted for the crypto winter. Analysts attribute this resurgence to
64% of total sales, with each city showing robust improving liquidity and renewed investor confidence in
activity in specific price segments. The overall the cryptocurrency market. Fresh capital is flowing into
residential market across India saw prices rise 3-15% stablecoins, underscoring their crucial role in the broader
year-on-year, driven by a limited inventory of high- crypto ecosystem. This upward trend indicates more
quality launches and strategic pricing by developers stable market conditions and an increasing acceptance
launching new project phases at higher price points. This of stablecoins as reliable assets. The surge in investments
price surge is due to the rapid sale of high-quality new shows that investors are regaining confidence in the
launches, leading to a severe shortage of inventory and stability and potential of cryptocurrencies, highlighting
prompting developers to introduce new phases at the evolving digital finance landscape.
elevated prices. Hedge Funds Flock to Dubai
Sustainable Investments Capture Interest Over the past 18 months, the Dubai
The INVL Sustainable Timberland and International Financial Centre (DIFC) has evolved
Farmland Fund II – Capital Fund, a specialized into a premier global hub for hedge funds and
sub fund within a closed-end umbrella investment fund alternative investments. This transformation results from a
designed for informed investors, has successfully raised combination of strategic factors. Dubai’s high
an additional €1.28mn. This sub fund, which focuses on concentration of wealth and favorable regulatory
investing in forest and agricultural land across Central environment make it an appealing location for financial
and Eastern European EU countries, continues to attract firms. The DIFC now hosts over 370 wealth and asset
interest from both local and regional investors. Four management firms, including more than 50 hedge funds
years post-launch, the fund remains a compelling choice managing substantial assets. The center is noted for its
for those seeking alternatives to traditional asset swift regulatory approvals, a critical advantage for
classes, offering diversification and stable returns. Asta financial operations. Additionally, Dubai's strategic
Jovaišienė, head of INVL Financial Advisors under the geographical position as a trading bridge between
INVL Family Office brand, notes the growing emphasis Asia, Europe, and North America enhances its
on sustainability among investors, reflecting a desire for attractiveness. The city’s high living standards, low taxes,
investments that not only provide financial benefits but
and absence of personal income tax further draw top
also align with environmental values. The INVL
global talent. DIFC’s proactive initiatives and supportive
Sustainable Timberland and Farmland Fund II – Capital
infrastructure have solidified its reputation as a leading
Fund is distributed by the INVL Family Office with a
minimum investment of €125,000. Managed by INVL destination for hedge funds and alternative investments.
Asset Management, the fund targets sustainably This development highlights Dubai’s competitive edge, its
managed forest and agricultural land, operating under robust financial ecosystem, and its growing significance
stringent sustainable forestry and farming principles. in the ever-evolving global financial market landscape,
The master fund has raised a total of €95.2mn. showcasing its resilience and adaptability.

17
 MC
SIPs Inflows Getting Popular Equity MFs Consecutive Inflows
In June 2024, investments in Systematic Investment In June, inflows into equity mutual funds
Plans (SIPs) reached ₹21,262cr, marking a rise from surged 17% to a record ₹40,608.2cr,
₹20,904cr in May. The month also saw 55.13 lakh
as reported by the Association of Mutual Funds of
new SIP registrations, with the SIP Assets Under
India (AMFI) on July 9. The mutual fund industry's
Management (AUM) hitting an all-time high of ₹12.44
Assets Under Management (AUM) reached a
lkh cr. The number of SIP accounts rose to a record milestone of ₹61.16 lkh cr. Despite net outflows of
8.99 crore in June, compared to 8.76 crore in May. ₹1,07,357.6cr from debt funds and overall net
This growth was supported by significant inflows due outflows of ₹43,108.8cr from open-ended funds,
to the favorable overall macroeconomic factors, equity fund inflows continued to thrive. The industry
including ₹14,370cr from the launch of 11 new equity continued to gain from persistent investments in
fund offerings (NFOs) and increased investments in equity-oriented mutual funds, hybrid funds, and
sectoral/thematic funds. passive funds. Sectoral/Thematic Funds led with
SIP Contribution Net Investments (in ₹ Cr.) net investments of ₹22,351.7cr, driven by new fund
21,262 offers (NFOs) and market corrections. The ongoing
18,838 interest in equities shows growing investor
confidence, even amid market volatility. This
confidence persisted despite a brief dip and a
quick rebound in benchmark indices following the
recent general elections. Investors seem to view
these equities as reliable, indicating a robust
Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 market recovery and a positive outlook.
Source: AMFI
SEBI’s Innovative Asset Proposal
Luxury Giant’s Strategic India Fund
India's capital markets regulator,
In a pioneering move, L Catterton,
SEBI, has proposed the introduction of a
the consumer-focused private equity
new asset class designed for high-risk investors,
firm supported by French luxury giant LVMH, is
aimed at increasing flexibility in portfolio
setting up a dedicated investment vehicle for India.
management. This proposal seeks to bridge the
The firm aims to raise ₹4000cr over the next year gap between mutual funds and Portfolio
under Category II AIF guidelines. This initiative Management Services (PMS) by offering products
follows L Catterton’s announcement in March 2024 that include features such as Systematic Investment
of a joint venture with former HUL CEO Sanjiv Plans (SIPs) and the option to invest in derivatives
Mehta. The new India-focused fund, pending SEBI beyond mere hedging. The new asset class will set
registration, will co-invest alongside L Catterton’s a minimum investment threshold of ₹10 lakh, a
Pan Asia dollar fund on a pro rata basis. Targeting measure intended to discourage casual retail
investments across 7-9 deals, the fund will seek investors while appealing to those with investable
contributions from banks, insurance companies, amounts between ₹10 lakh and ₹50 lakh. The
pension funds, family offices, and high-net-worth proposal is designed to provide access to
individuals, aiming to drive substantial growth and sophisticated investment strategies like long-short
returns. Led by Sanjiv Mehta, Executive Chairman equity funds and inverse ETFs. These strategies
of India, and Partner Anjana Sasidharan, the allow investors to take both long and short positions
vehicle will focus on both majority and minority or to bet against market indices. Industry experts
stakes in the consumer sector. L Catterton’s Asia view this proposal as a promising development,
team, under Managing Partner Scott Chen, has potentially reducing reliance on unregulated
previously invested over $1bn in 19 Asian investment schemes and offering a regulated
companies, including Jio Platforms and Drools. alternative for sophisticated investors.

18
 &A
Raymond Group Restructures Organic for Inorganic-Growth
Raymond Limited has announced the Edible oil giant Patanjali Foods Ltd
demerger of its real estate business into announced this month its plan to acquire
its wholly-owned subsidiary, Raymond Realty Limited the home and personal care business of Baba Ramdev-
(RRL). Once the demerger is complete and all statutory led Patanjali Ayurved (also a promoter in Patanjali
approvals are obtained, Raymond Ltd and RRL will Foods Ltd) for ₹1,100cr. This move is part of Patanjali
function as separate listed entities under the Raymond
Foods' strategy to become a leading FMCG company.
Group. According to the scheme, shareholders of
The board has approved the acquisition of the entire
Raymond Ltd will receive one share of RRL for each
Raymond Ltd share held, facilitating RRL's automatic non-food business, including hair care, skin care, dental
listing on stock exchanges. Raymond's real estate care, and home care products. This includes all movable
business has shown significant growth, reporting a assets, immovable properties, contracts, licenses, records,
revenue of ₹1,593cr, a 43% year-on-year increase, employees, and certain assumed liabilities of Patanjali
and an EBITDA of ₹370cr in FY24. This growth positions Ayurved, through a slump sale arrangement on a going
the real estate business to pursue its trajectory as an concern basis. Patanjali Foods will fund the ₹1,100cr
independent entity. The demerger aligns with the deal through internal cash reserves, paying in five
Group’s strategic objectives of simplifying its corporate tranches. The acquisition, expected to conclude in the
structure and enhancing shareholder value through current quarter, includes major brands like Dant Kanti
operational and structural benefits. It will enable and Kesh Kanti. Additionally, Patanjali Foods and
dedicated management teams to focus on industry-
Patanjali Ayurved will enter into a licensing agreement,
specific expertise, sharpening business focus and
tailoring investment strategies to each sector's unique allowing the use of trademarks and associated
dynamics. intellectual property rights owned by Patanjali Ayurved.

Filtering Portfolio Cementing Its Position

Hindustan Unilever Limited Exactly a month after acquiring
(HUL) has announced the a 23% stake from DMart founder
sale of its two-decade-old water Radhakishan Damani, UltraTech
purification business, Pureit, to AO Smith for an Cement, part of the Aditya Birla Group and the
enterprise value of $72mn (₹601cr). This decision largest player in the sector, announced plans to
aligns with HUL's strategic focus on its core acquire an additional 32.72% stake in South India-
categories. Pureit, known for providing essential based India Cements at ₹390 per share. This move
water purification solutions, will benefit from AO will be followed by a mandatory 26% open offer,
Smith's ownership, ensuring its growth and continued and if fully subscribed, UltraTech will hold 81% of
service to loyal consumers. The deal will cost India Cements, marking the exit of the promoter
approximately $120mn in cash to AO Smith subject group led by N Srinivasan. The acquisition price is
to customary adjustments and is expected to close 46% higher than the ₹267 per share Damani
by the end of 2024 and will not materially impact received for his holding. Strategically, this acquisition
HUL's earnings in the first year. The transaction will gives UltraTech a significant foothold in the South
occur through a slump sale via a business transfer Indian market, which is fragmented with over 45
agreement between HUL and AO Smith India Water players. The region's capacity utilization is low, at
Products. In FY24, Pureit generated a turnover of 60-65%, compared to the national average of
₹293cr, accounting for less than one percent of around 70%. This move also aims to preempt the
HUL’s total turnover. Until the transaction is Adani Group-owned Ambuja Cements, which has
completed, HUL will continue to manage the Pureit been acquiring assets like Sanghi, MyHome’s
business, ensuring a smooth transition for the grinding unit, and Penna, and secures UltraTech’s
stakeholders involved. position in the South.

19
 TRATEGY
Cruising from crisis to glory Polishing the Illusion: De Beers
In the 2000s, Royal Enfield, now a leader in the Established in 1888, De Beers Group has cemented
cruising segment of the biking industry, was on the its status as the world’s leading diamond company,
verge of shutting down. The turnaround began when renowned for its expertise in the exploration, mining,
its ex-CEO refocused the company’s strategy. He marketing, and retailing of diamonds. At its peak,
De Beers controlled upwards of 90% of the natural
closed 13 of 15 operations, choosing to excel in a
diamond market, shaping the industry and public
few areas rather than being mediocre in many. His
perception of diamonds. De Beers understood the
vision was to cultivate a biking culture in India, power of scarcity and its impact on demand.
adding a recreational dimension to the experience. Leveraging their monopoly, they created an
Royal Enfield organized annual events and rides, artificial scarcity for diamonds in the market. Despite
sponsored mountain biking, and cross-country runs, diamonds being one of the most commonly found
fostering a strong community and aspirational brand gems, this manipulation made them appear rare
value. The CEO emphasized on the quality, and, consequently, exorbitantly priced. This strategy
developing parts with much lower failure rates and increased the allure of diamonds and also
introducing newer, more powerful, and efficient positioned them as luxury items. They marketed
engines. This meticulous attention to detail sets Royal diamonds as eternal symbols of love, emphasizing
Enfield apart from competitors, offering a cruising that diamonds are the quintessential standard for
engagements and lifelong commitments. Although De
bike at an unmatched price range, complete with a
Beers' market share has decreased from its peak
rugged, appealing look for riders. This strategic shift and it no longer controls 90% of the market, the
led Royal Enfield to increase its sales from 25,000 company still commands a significant portion of the
units in 2005 to an impressive 8,24,066 units in diamond market. The demand for diamonds remains
2023. It solidified the brand’s market position and strong, perpetuated by the lasting impact of De
cemented its iconic status among biking enthusiasts, Beers' marketing strategies and the perceived value
especially for dream trips through the valleys of Leh of diamonds in society. De Beers Group's legacy in
Ladakh, by creating a unique and desirable biking the diamond industry is marked by its strategic
lifestyle. creation of scarcity and effective marketing.

From Tata’s Salt To Nation’s Salt

In the 1980s, India’s salt market was highly fragmented, dominated by unbranded products, and
characterized by traditional hand-harvesting techniques. During this time, TATA introduced TATA Salt, a
premium product noted for its superior quality and higher price. Utilizing vacuum evaporation methods,
TATA Salt offered far greater hygiene, marking a significant departure from the norm. This innovation
improved food taste and addressed critical nutritional deficiencies in the Indian diet. TATA employed
strategic marketing to forge a strong emotional connection with consumers. Their branding evolved from
"Namak ho TATA ka" to "Desh ka Namak," instilling national pride and unity. Recognizing the widespread
iodine deficiency in India, TATA saw an opportunity to meet a vital public health need. Through TATA Salt,
they provided not merely a seasoning but an essential source of iodine, benefiting a vast segment of the
population. This dual focus on quality and health allowed TATA Salt to transition from a mere commodity to
a trusted household name. It reshaped the Indian salt market by setting new standards for hygiene and
nutrition. TATA Salt's success story illustrates the impact of innovation and strategic marketing in
transforming a basic product into an essential element of the Indian diet.

20
 ARKETING & RANDING
Play Your Own Way: Decathlon Pintola’s Mystery Truck
Decathlon's latest campaign champions the message Pintola’s dazzling 'truck campaign' became the talk
that sports are for everyone, transcending age, of the town, artfully blending a 2D cut-out of cricket
gender, background, and fitness levels. At the heart sensation Suryakumar Yadav with a striking 3D
of this initiative is a compelling video that highlights peanut butter jar. Launched amidst the fervor of the
women breaking barriers and embracing their T20 Cricket World Cup, this campaign was a
uniqueness through sports. This powerful portrayal heartfelt tribute, a collective manifestation of victory
features women from diverse backgrounds for Team India. On Instagram, Pintola ignited a
participating in various sports and overcoming thrilling treasure hunt encouraging fans to share their
challenges, symbolizing resilience and discoveries on their Instagram stories, tagging
empowerment. To reinforce its commitment, Pintola and using #HelpUsFindPintola. Fans loved
Decathlon shares testimonials from its female the challenge, eagerly searching for the truck and
teammates across India. These stories highlight sharing their finds. Pintola's collaboration with local
personal journeys and experiences, showcasing how influencers who crafted captivating reels,
women within the organization challenge norms and documenting their playful quests to locate the lost
cultivate a culture of inclusivity and empowerment.
truck, further amplified the buzz. When India's
In celebration of Women's Day, Decathlon also
triumphant victory in the ICC T20 World Cup was
launched an ad audio challenge, encouraging
sealed, Pintola celebrated it with a rally in
everyone to participate, and invited women to join
Ahmedabad, with their iconic truck at the forefront.
the conversation using the hashtag
This created a big splash on social media and
#HERoesofDecathlon. This campaign vividly
resulted in boosted engagement for the peanut
illustrates Decathlon’s belief in the transformative
power of sports to uplift and inspire. It empowers butter brand. The 'truck campaign' was a masterful
women to take pride in their strength and blend of creativity, community spirit, and national
individuality and reinforces the notion that sports is pride, leaving a lasting imprint on the hearts of
a powerful tool for personal and societal growth. millions.

Zomato’s Sweet Sixteen

Zomato celebrated its 16th anniversary with a unique twist. They enlisted the witty stand-up comedian
Samay Raina to roast the beloved brand. With sharp humor, Raina critiqued Zomato’s quirky, cheesy
notifications that tempt people to explore diverse culinary delights through their app. He also poked fun at
Zomato’s customer service and playfully jabbed at their friendly rivalry with Swiggy, adding another layer
of humor. The post created quite a buzz, with brands like Swiggy, Uno, Britannia, and Book My Show
humorously commenting that they wouldn't want such a roast. In an epic response, Zomato quipped, "Samay
aane pe tum bhi sahoge," hinting at both comedian Samay Raina and perfect timing. They issued ads on
the front pages of national newspapers which grabbed everyone’s attention. It featured key team
members, including Goyal, co-founder Akriti Chopra, CFO Akshant Goyal, and food delivery CEO Rakesh
Ranjan which cleverly parodied well-known birthday posters and ads put up by political parties. The
language and designations in the ad were humorously altered to fit this theme, with a ticker clarifying the
ad’s playful intent. On LinkedIn, the post about this campaign drew numerous comments, with many netizens
joining the fun by posting birthday wishes in Hindi. This blend of humor and creativity fosters a deeper
connection with users, making Zomato a beloved brand that people feel a part of.

21
 “India is finally opening up to different
investment products, styles and approaches.
Passive, factor, inverse ETFs, alts and more.
There is no single way to invest.”
- RADHIKA GUPTA
MD AND CEO, EDELWEISS MUTUAL
FUND

“We are the envy of the world in

terms of our growth in GDP. We
are the preferred destination of the
world for investment because of the
“The Indian economy is on a belief in our future.”
strong wicket and stable - ANAND MAHINDRA
footing, demonstrating CHAIRMAN, MAHINDRA GROUP
resilience in the face of
geopolitical challenges.”
- V.ANANTHA NAGESWARAN
CHIEF ECONOMIC ADVISER

22
 About Us
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