The State Bank of Pakistan (SBP) said that its foreign exchange reserves had decreased by $239 million due to external debt repayments.

During the week ending on June 21, the total foreign exchange reserves of the bank fell to around 8.9 billion dollars, the SBP said in a statement on Thursday.

It added that the net foreign reserves held by commercial banks came at $5.3 billion, reports Xinhua news agency.

Total liquid foreign reserves held by the South Asian country stood at about $14.2 billion, according to the SBP.

AGENCIES

Global investment bank and financial company Morgan Stanley (NYSE:MS) has stated that the PM Gati (NS:ALLA) Shakti scheme has succeeded in giving a new fillip to India’s infrastructure development and multi-modal connectivity across highways, railways and ports that has spurred economic growth.

According to the report, India has scaled up its infrastructure strongly over the last decade, with higher investment that is also better targeted and potentially more productive.

“We expect India’s infrastructure investment to steadily increase from 5.3 per cent of GDP in FY24 to 6.5 per cent of GDP by FY29. Indeed, this implies that infrastructure investments are expected to register a strong 15.3 per cent CAGR, resulting in cumulative spending of USD 1.45 trillion over the next five years. In our view this will help to lift the investment rate, leading to a sustained period of high productive growth.”

Interestingly, the report also states that “contrary to popular perception, India’s physical infrastructure scale already compares favourably to China’s when viewed in the context of GDP differential.”

The report cites the World Bank’s Logistics Index Report, 2023, which records that the average Container Dwell Time in Indian ports was three days compared to four days for countries like the UAE and South Africa, seven days for the USA, and 10 days for Germany.

Indian Ports “turnaround time” has reached 0.9 days, which is better than the USA (1.5 days), Australia (1.7 days), Singapore (1.0 days), etc. 6. In F24, ports overall cargo growth was 7 per cent, with 53 per cent of cargo handled by major ports (government-owned).

Prime Minister Narendra Modi launched the PM Gati Shakti National master plan for infrastructure development in October 2021. It brings 16 ministries including Railways and Highways together on a digital platform for integrated planning and coordinated implementation of multi-modal connectivity projects. It is conceived as a transformative approach for economic growth and sustainable development with roads, railways, airports, ports, mass transport, waterways and logistics infrastructure constituting “7 engines “ to pull the economy forward in unison.

According to the Morgan Stanley Report, initiatives under PM Gati Shakti are yielding results. Under the PM Gati Shakti scheme so far, cumulatively 101 projects worth Rs 60,900 crore have been identified for implementation in the ports and shipping sectors.

As of April 2023, 26 projects, worth Rs 8,900 crore have been completed, 42 projects worth Rs 15,340 crore are under development, and 33 projects worth Rs 36,640 crore are under implementation.

The Ministry of Ports, Shipping, and Waterways (MoPSW) is also implementing a comprehensive port connectivity plan in coordination with the highways and railways ministries.

The Morgan Stanley report says under the Sagarmala programme, 220 projects worth Rs 1.12 lakh crore have been completed and 231 projects worth Rs 2.21 lakh crore are under implementation while 351 projects worth Rs 2.07 lakh crore are at the evaluation stage.

Similarly, National Waterways are also being developed as a more efficient and environment-friendly means of transport for both cargo and passengers.

AGENCIES

Indian equity indices opened in green on Friday following buying in largecap stocks. Sensex and Nifty made a new all-time high of 79,671 and 24,174 respectively.At 10 a.m., Sensex was at 79,558, up 314 points or 0.40 per cent and Nifty was up 93 points or 0.39 per cent, at 24,137.

NTPC (NS:NTPC), Sun Pharma (NS:SUN), Tech Mahindra (NS:TEML), Tata Motors (NS:TAMO), Power Grid (NS:PGRD), Tata Steel (NS:TISC), Nestle (NS:NEST), Asian Paints (NS:ASPN), Infosys (NS:INFY), HDFC Bank (NS:HDBK) and JSW Steel (NS:JSTL) are the top gainers. Whereas, UltraTech Cement (NS:ULTC), Axis Bank (NS:AXBK), IndusInd Bank (NS:INBK), Maruti Suzuki (NS:MRTI) and HCL Tech (NS:HCLT) are the losers.

The Nifty Midcap 100 index is up 346 points or 0.46 per cent at 55,740 and the Nifty Smallcap 100 index is up 187 points or 1.03 per cent at 18,352.

Among sectoral indices, PSU Bank, Fin service, Pharma, Metal and Energy are major gainers. Auto and realty are top laggards.

According to the experts, “The market momentum has the potential to take the Sensex to 80,000 level. The healthy trend in the recent rally is that it is driven by fundamentally strong largecaps like RIl, Bharti and the leading private sector banks.”

“Corrections can happen any time since the market is in the overbought zone and DIIs are booking profits,” They added.

AGENCIES

In a major fillip to the government’s local manufacturing push, Adani Defence & Aerospace – the defence arm of the Adani Group — has signed an agreement with the Thales Group to manufacture 70mm rockets in India.

Thales said that this partnership is not only significant for their commitment to India, “but it also allows us to strengthen our partner network worldwide”.

“We congratulate the Adani Group on this partnership. Together, we seek to contribute to the further growth and success of India’s defence sector,” the Thales Group said in a post on X.

“We are thrilled to announce our partnership with the Adani Group in India. We look forward to collaborating on the manufacturing of Thales’ 70mm rockets in India,” said the Thales Group.

This partnership is a key milestone in our continued support of ‘Make in India’ and ‘Aatmanirbhar Bharat’ vision for India’s growing defence industry, the Thales Group added.

Adani Defence & Aerospace, part of the Adani Group, is a pioneer in the design, development and manufacturing of state-of-the-art defence products.

The company signed a significant agreement with EDGE Group – one of the world’s leading advanced technology and defence groups in the UAE – earlier this month.

The pact aims to establish a global platform leveraging the defence and aerospace capabilities of both companies to bring together their respective product portfolios and cater to the requirements of global and local customers.

AGENCIES

In a bid to empower micro, small and medium enterprises (MSMEs), the government has announced an initiative to onboard five lakh MSMEs on to the Open Network for Digital Commerce (ONDC).The initiative, called ‘MSME TEAM’, aims to provide financial assistance for onboarding, cataloguing, account management, logistics, packaging material and design of 5 lakh MSMEs on the ONDC network.

Half of these beneficiary MSMEs will be women-owned enterprises, said Union Minister for MSME, Jitan Ram Manjhi.

“MSMEs will be a key force in the movement towards Atmanirbhar and Viksit Bharat,” the minister added.

In a fast-changing industrial landscape, the MSMEs need to align themselves to adopting digital and technological solutions, the minister noted.

Another ministry initiative called the ‘Yashasvini’ campaign, is a series of mass awareness campaigns for formalising women-owned informal micro enterprises and providing capacity building, training, handholding and mentorship to the women-owned enterprises.

A series of campaigns will be organised by the Ministry of MSME during FY24-25 in various parts of the country, focusing on tier 2 and 3 cities.

The MSME minister also emphasised the need to deepen and broaden the effort through an inclusive and focused approach, especially in the rural areas and hinterland as per the vision of Prime Minister Narendra Modi.

AGENCIES

 Accel, one of the world’s top venture capital firms, has identified ‘Bharat’ as a massive blue ocean opportunity for Indian startups, citing promising economic indicators and evolving consumer behaviour across Tier 2, Tier 3 cities and rural areas.

Accel defines Bharat as middle-income households that earn between INR 5 to 15 lakhs annually and spread across Tier 2, Tier 3, and rural India.

In an exclusive interview with IANS, Anand Daniel, partner at Accel, discussed the immense potential of building for Bharat. Historically, startups have struggled in these markets due to inadequate infrastructure, limited digital penetration, and insufficient understanding of consumer preferences, Daniel said.

The recent advancements in technology, logistics, and payment systems have laid a foundation for sustainable growth in these underserved regions, he added.

Despite the common belief that rural means poor, the top 20-30% of this untapped market spends more per month than about half the population in urban cities, Daniel told IANS. This highlights a substantial purchasing power in rural areas that is often overlooked.

In a recent blog, Accel wrote that contrary to conventional notions, which paint this demographic as primarily price-sensitive, this segment is highly aspirational and shows a growing preference for products and services that promise a better lifestyle and reflect upward mobility. This trend is exemplified by a surge in the demand for used iPhones in Tier 2 cities and beyond, the VC firm added.

“We believe this market is more ripe for disruption than ever before. Founders need to take a crack at the Bharat Opportunity,” Daniel said.

The ‘build for Bharat’ theme has gained momentum among investors such as Accel and entrepreneurs alike, reflecting a strategic shift towards developing business models that cater to this segment of India and its unique needs.

But why have startups not succeeded in building for Bharat till now? Until recently, startups aiming to serve rural India struggled due to inadequate infrastructure, unaddressed customer behaviour, and a lack of focus, according to Accel. Challenges included poor delivery networks, incomplete pincode coverage, and inefficient reverse logistics, which inflated costs for handling small orders. Sparse digital payment options and unreliable internet connectivity added to the problems.

However, recent advancements are reshaping the landscape. The introduction of the UPI payment system has revolutionised transactions, while initiatives like Jan Dhan accounts have significantly boosted financial inclusion. Logistics firms now offer broader pincode coverage and faster delivery times, marking a pivotal improvement. These developments will unlock opportunities for startups seeking to tap into Bharat, potentially transforming how services are delivered and accessed in rural areas.

Accel anticipates that in the next decade, several enduring e-commerce companies valued at over $1 billion will emerge for Bharat. Financial services are also poised to expand, providing accessible lending solutions to underserved segments.

“From personal loans to loans for cattle or house financing, a new set of lending companies can leverage technology and provide tailored products at the right price to cater to the underserved and aspirational Bharat,” Daniel said.

Healthcare is also a ripe opportunity for innovators. In addition to that, ed-tech platforms will proliferate, addressing skill gaps and employment needs with cost-effective education and certification programs. With the advancement of artificial intelligence, startups are innovating across domains.

“We are looking for AI’s first consumer company, which will enable Bharat’s mass audience across sectors,” he noted.

AGENCIES

 In India, 94 per cent of tech micro, small and medium enterprises (MSMEs) acknowledge artificial intelligence’s (AI) ability to drive business growth while 87 per cent of them showed confidence in AI’s potential to improve overall productivity, a Nasscom-Meta report showed on Thursday.

Around 72 per cent of tech MSMEs emphasise the need for AI training programmes for their workforce, according to a white paper by Nasscom supported by Meta.

Meta (formerly Facebook) entered into a strategic partnership with Nasscom to spotlight the current state of the AI adoption journey of tech MSMEs in the country.

“Ecosystem collaboration, coupled with access to user-friendly tools and resources, is essential for tech-enabled MSMEs to harness AI’s full potential and for India to maximise its AI dividends,” said Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom.

Specifically, 48 per cent of respondents support AI’s potential in content creation and marketing, 46 per cent in customer engagement, followed by 68 per cent in developing new products and services.

“With its massive developer base and the third largest startup ecosystem in the world, India is going to be a driving force in the global AI revolution. Meta has been committed to creating an ecosystem for MSMEs to thrive, and our joint efforts with Nasscom focus on equipping MSMEs with the necessary tools and knowledge to unlock the full potential of AI,” said Sandhya Devanathan, Vice President (India) at Meta.

The white paper also identified significant challenges faced by tech MSMEs in navigating the benefits of leveraging AI for sustainable business expansion and growth.

The paper called out an awareness gap with 65 per cent of tech MSMEs struggling due to the limited awareness about available tools and resources, while 72 per cent emphasised the necessity for AI training programmes stressing the importance of skill development in facilitating adoption.

AGENCIES

Samsung on Thursday said consumers can pre-reserve its next Galaxy Z series smartphones and ecosystem products to become eligible for early access and special offers in India.

Customers can pre-reserve the next Galaxy Z series smartphones by paying a token amount of Rs 2,000, the company said in a statement.

“Those who pre-reserve the next Galaxy Z series smartphones will get benefits worth up to Rs 7,000 on purchase of these products,” said Samsung.

Additionally, customers can pre-reserve Samsung’s next Galaxy ecosystem products with a token amount of Rs 1,999 and avail benefits worth up to Rs 6,499 on purchase of these products.

The South Korean giant is set to launch the next generation of Galaxy Z series smartphones and ecosystem devices at its global event on July 10.

“The next frontier of Galaxy AI is coming. Prepare to discover the power of Galaxy AI, now infused into the latest Galaxy Z series and the entire Galaxy ecosystem,” said the company.

The market watchers expect Samsung to unveil its new Galaxy Z Fold series and Galaxy Z Flip 6 with built-in generative AI.

Samsung is also expected to showcase its first Galaxy Ring smart device and Galaxy Watch 7 series.

AGENCIES

Residential sales across top seven cities in India tamed down marginally in the second quarter this year, amid increasing property prices and a high base record of the previous quarter. Housing sales witnessed a quarterly drop of 8 per cent and stood at nearly 1,20,340 units in Q2 2024 across the top seven cities — against about 1,30,170 units sold in Q1 this year.

However, on a yearly basis, there has been a 5 per cent rise in residential sales, according to latest Anarock Research data.

The two western cities – Mumbai Metropolitan Region (MMR) and Pune – accounted for over 52 per cent of the total sales in the top 7 cities with over 62,685 units sold altogether in these cities in Q2 2024.

NCR is the only city to see a quarterly rise (of 6 per cent) in housing sales in the quarter against Q1 2024.

New launches across the top seven cities continued to break previous records with a 6 per cent rise — from about 1,10,870 units in Q1 to 1,17,170 units in Q2.

MMR and Pune saw the maximum new supply, accounting for 54 per cent of the total new launches, according to the report.

Individually, the two cities saw 31 per cent and 1 per cent quarterly increases in their new supply, respectively.

Notably, Delhi-NCR witnessed a 134 per cent jump (on-quarter) in new supply in Q2 against Q1.

“The quarterly decline seen in housing sales is essentially because of the all-time high base considered in the previous quarter, when more than 1.30 lakh units were sold,” said Anuj Puri, Chairman, Anarock Group.

Most importantly, this drop is also due to the significant hike in property prices over the last one year, which in turn has prompted many investors to take a breather, he added.

Delhi-NCR witnessed the highest quarterly residential price jump of 10 per cent in Q2 while Hyderabad saw the highest yearly jump of 38 per cent in average residential prices.

“However, if prices are kept in check henceforth, housing sales may not be majorly impacted in the upcoming quarters,” said Puri.

AGENCIES

Indian frontline indices again touched an all-time high on Thursday as strong buying was seen in IT stocks. Sensex and Nifty made an all-time high of 79,240 and 24,036 respectively. This is the first time that nifty crossed the 24,000 mark and Sensex exceeded the 79,000 level.

At 12:55 p.m., Sensex was up 418 points or 0.53 per cent at 79,092, and Nifty was up 135 points or 0.53 per cent at 24,004.

Among the sectors, buying is seen in IT, oil and gas, and FMCG while, PSU bank, auto, pharma, and media are top laggards.

According to the experts, “The market will remain bullish in the near-term despite the valuation concerns, and the ongoing momentum has the potential to take the Sensex to 80000 levels.”

“A healthy trend in the market is that now the up move is being led by fundamentally strong largecaps in sectors like banking and telecom,” they added.

In Sensex pack, Ultratech (NS:ULTC) cement, Wipro (NS:WIPR), JSW steel, Infosys (NS:INFY), Tech Mahindra (NS:TEML), NTPC (NS:NTPC), TCS (NS:TCS), and Kotak Mahindra (NS:KTKM) are top gainers. However, L&T, Maruti Suzuki (NS:MRTI), Sun Pharma (NS:SUN), IndusInd Bank (NS:INBK), and Bajaj Finance (NS:BJFN) are top losers.

AGENCIES