Week 53

It's Getting Hot in Here šŸ„µ

April 30, 2022

Good Morning,

Welcome! I hope you have your ā€œSubah Kee Chaiā€ ready and you're excited to read your weekly 10-minute digest.  

Back after a week! How is everyone doing? I know I am struggling in this heat, oof it is HOT! Make sure you are drinking enough water to stay hydrated. Maybe sip something cold today while you read your Subah Kee Chai!. 

This week saw positive markets, a bold statement on Ukraine, renewable energy deals, Mumbai Indian's continued poor form, and Elon Musk buying Twitter! 

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I hope you enjoy today's newsletter and have an amazing Sunday! 

Now letā€™s get into the news.

Markets

Markets

Friday morning saw the Indian indices continue the positive trading session from Thursday, however towards the end of the trading day, the indices slowed their gains, primarily due to large selloffs. Reliance Industries climbed to a record high followed by Wipro which posted higher than expected March-quarter results.

In the global market, US Tech Stocks had a slight positive trading session, however, the overall sentiment over the last few months has been negative. Asian shares inched higher on Friday, however poor Western market performances forced investors to remain pessimistic about future market performances. 

Hindustan Unilever Limited, Asian Paints, NTPC, Power Grid, Reliance Industries and Wipro were among the top gainers on Thursday, with shares in Reliance rising as much as 1.3%. On the contrary, however, Bharti Airtel, M&M, HCL Technologies and HDFC were the top losers. 

Crypto prices have been on the decline as well, with the price of Bitcoin and Ethereum falling approximately 2% over the last week.

#WhenMoon? 

Ukraine

Bold message...

On Tuesday, External Affairs Minister S Jaishankar defended

on the situation in Ukraine by stating that western powers have been oblivious to pressing issues affecting nations in Asia, including last year's events in Afghanistan. He further stated that the situation in Ukraine should serve as a "wake up call" for Europe to look at what has been happening in Asia over the last 10-15 years. 

Despite its neutral stance, India has been pressing for an urgent cessation of violence and fighting in Ukraine and has called for a return to diplomacy and dialogue, which stresses the need to respect the sovereignty and territorial integrity of the states involved. 

Each nation across the world understands the implications of war, however, the selective response of primarily western nations is something India is pointing out. Wars are happening all across the globe - why not act to rectify and resolve all of them? 

Operation Ganga

The hostilities in Ukraine placed approximately 20,000 Indians, mainly students, in direct danger, and the Indian government worked swiftly to ensure these citizens were safely evacuated from the nation. The government completed 90 evacuation flights from Romania, Poland, Hungary and Slovakia to successfully bring stranded Indians back home.

Russian Oil

India's decision to continue

is heavily criticised globally, however, it is important to note that India's oil imports from Russia are less than 2% of India's total imports. As one of the world's largest importers of energy, India's policy will be guided by the nation's interest to ensure energy security. 

Presently, Indian refiners are currently negotiating a

to import millions of barrels per month. Western sanctions against Russia have prompted many oil importers to stop trading oil from Russia, making Russian oil cheap! How can an Indian ever shy away from a discount? 

Slap a discount on a product you're selling - I guarantee an Indian will be the first one knocking on your door. 

Simply put, Indian oil companies are working in their best self-interest. Indian Oil Corp is negotiating a deal to import 6 million barrels of oil per month, while Bharat Petroleum Corp and Hindustan Petroleum Corp are looking to buy 4 million barrels per month respectively. 

Renewable Energy for the win!

India šŸ¤ Maldives 

Both countries plan to set up a transmission interconnection for the transfer of renewable power between the

. The plan is still in the preliminary stages with members of government from both sides currently negotiating the key logistics. A draft agreement is being prepared for the memorandum of understanding on transmission interconnection under which a technical team from India will visit the Maldives to assess the feasibility of the long-term project. Subsequently, a detailed project report will be prepared jointly with Indian and Maldives agencies to determine efficient undersea cable routes and network augmentations. 

Shell

On Friday, energy conglomerate

for USD 1.55 billion. Shell stated that the acquisition is a step towards boosting low-carbon output and a shift away from oil and gas. Sprng Energy supplies solar and wind power to electricity distribution companies in India, and the acquisition will triple Shell's current renewables capacity in operations. Shell joins a number of foreign energy companies that have invested in India's renewables and power sector in recent years, namely BP through LighSource BP and TotalEnergies through its 20% stake in Adani Green Energy. 

#TimeToGoElectric

Tata Empire

AirAsia

After picking up Air India for a whopping USD 2.4 billion equity-and-debt deal, back in January, Tata Group has proposed to buy the entire equity share capital of low-cost carrier

. Tata Group is currently the majority shareholder in the low-budget airline, holding an 83.67% stake. The acquisition will merge Air India and AirAsia India into a single airline company. 

Experts within the airline industry are not surprised by this move, as it made no sense for Tata to own stakes in separate airlines. By agreeing to acquire Air India and AirAsia India, Tata Group has embarked on what will go down as one of the most challenging airline realignments or turnarounds in modern history. It won't be easy - however with the strong financial backing from Tata Group, and its investors, I am excited to see India's flagship carrier soar the skies once again! 

What challenges does Tata face? 

Despite Air India's lucrative landing spots, the company's ageing fleet, poor financial record, and lack of customer satisfaction have seen the airline slip in the rankings over the last 10 years. Tata has the task of refreshing the fleet, improving the customer service, and upgrading the overall flight experience to compete with global leading airlines. What is one feature you look for in an airline? For me, personally, LEG SPACE IS EVERYTHING! 

#AirAsiaIndia 

Following this acquisition, Tata Group will own Vistara (a joint venture with Singapore Airlines), Air India, and now AirAsia India.

IPL

Bro Mumbai? 

Some say the year is 2040 and the Mumbai Indians still haven't won a game (Update: Mumbai won their first game yesterday against the Rajasthan Royals)...but seriously, 9 games in and the Mumbai Indians are pretty much out of contention. Back to the drawing board for the 5 times IPL champions - we'll get them next time. 

Here's your weekly IPL round-up: 

IPL debutants Gujarat Titans are really showing their force, having lost only 1 game in 8, putting them at the top of the table. Behind them are the Rajasthan Royals and the Lucknow Super Giants on 12 points each. 

A royal, Jos Bulter sits at the top of the batting leaderboard having scored an impressive 499 runs in 8 games, with an average of 71.28 per game. Honestly, just take a bow...cause WOW! 

Leading the bowling front is another Royal, Yuzvendra Chahal, who has managed to pick up 18 wickets in 8 games with a bowling economy of 7.09. I don't know about you, but my fantasy has been on fire because of him! 

Games to keep an eye on this coming week: 

1. Kolkata Knight Riders v Rajasthan Royals (Monday)

2. Gujarat Titans v Punjab Super Kings (Tuesday) 

3. Chennai Super Kings v Royal Challengers Bangalore (Wednesday) 

4. Delhi Capitals v Sunrisers Hyderabad (Thursday)

5. Gujarat Titans v Mumbai Indians (Friday) 

#YeAbNormalHai #IPL2022

This run-down is as of 30/04/2022. 

Other News

1. With rising daily temperatures, India experienced its

ever! Luckily, the day you read this newsletter is the last day of the 4-day heatwave, however, get your ACs ready - the month of May is about to be HOT! 

2. India's

is down by USD 3.271 billion to USD 600.423 billion. 

3. Actress Akshata Padavapura is ecstatic as her film

is set to be screened at the New York Indian Film Festival next month! 

4. Mukesh Ambani has eyes on the

, as his newly opened shopping mall worth USD 1 billion will be the portal through which the biggest brands will pass...

5. Elon Musk bought Twitter for USD 44 billion. That's it. That's the news. 

Quiz

Oooooo it's quiz time! 

To the sight, I may be plainOr I may cause you to rack your brainMy makeup is not without rhyme or reasonBut finding me might give your brain some teasin'It would not be unusual at allTo find me on a surface, like a wallI suggest that you follow meTo have that dress made properlyIt's not me if there is no repeatingNow tell me what I am, without cheating

Think carefully...

See you next week!

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Quiz Answer: a pattern! 

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Written by: Adnan Bahrainwala