Week 60

After a long break😮‍💨

August 05, 2023

Good Morning,

Welcome! I hope you have your “Subah Kee Chai” ready and are excited to read your weekly 10-minute digest.

We're back after a three-week break! We were unable to upload the newsletter because of Moharram, and we're extremely sorry to leave you hanging! I mean, we all know how dependent you are on us. Without your Subah Kee Chai, it must have been difficult to start conversations, or even know what people are talking about. But don't worry, We're back in the game and not going anywhere!

This week saw a change in the world's economy, violence in Indian regions and much more! The BEST buses in Mumbai have been on strike, with over 1400 buses off-road! Make sure to stick around till the end to read all about this week's news!

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

Now let’s get into the news.

Markets

Market News

The domestic stock indices, namely NSE Nifty 50 and BSE Sensex, concluded Thursday's trading session on a downward trajectory, extending the decline observed in the preceding session. The Nifty 50 index experienced a substantial drop of 145 points, reaching a level of 19,381, while the Sensex exhibited a decline of 0.82%, closing at 65,240.

The prevailing market sentiment seems pessimistic, with investors closely monitoring unfolding global events. The Bank Nifty also recorded a decrease of 1.07%, finishing just slightly above the 44,513 mark. Notably, sectors such as Nifty Private Bank, Nifty Realty, and Nifty Financial Services encountered significant losses, whereas Nifty Pharma and Nifty Media displayed gains of 0.91% and 1.04% respectively.

In the broader scope of the market, indices such as Nifty 100, Nifty 200, and Nifty 500 concluded the session with lower values. On the other hand, Nifty Midcap 100 and Nifty Smallcap 100 indices demonstrated positive performance, finishing the session with higher values.The National Stock Exchange is considering the gradual extensions of trade timings in India. Click here to read more.

Haryana (Nuh) violence

Three individuals have had First Information Reports (FIRs) filed against them by the Nuh police due to their incendiary posts on social media, which were identified as catalysts for the recent outbreak of violence in the district.

This development follows a series of communal clashes that commenced on Monday in Nuh. The clashes, originating from an effort to halt a procession organized by the Vishva Hindu Parishad (VHP), resulted in the unfortunate loss of six lives, including those of two home guards and a religious leader. The turmoil subsequently extended to Gurugram over the course of the preceding days.

Among the 10 First Information Reports (FIRs) initiated by the Nuh police, three have been lodged against individuals identified as Shahid, Aadil Khan Mannaka, and an online persona by the name of 'Shayar Guru Ghantal'.

The identity of the individual operating the 'Shayar Guru Ghantal' account, which shared provocative content in the form of posts and videos, is currently undisclosed by the police.

Consequently, in response to the recent surge of violence in Nuh, Sohna, and Gurugram earlier in the week, a leader within the Muslim community has declared that they have collectively decided not to conduct Friday namaz (prayer) at any mosque or public area.

Word of the week!

Three weeks without a new word? That's tough! The word for this week is:

ancillary"AN-suh-lair-ee"Ancillary is an adjective used as a synonym of supplementary to describe things that provide something additional to a main part or function of something else. Ancillary can also mean "of lower or secondary class or rank." Her job is to oversee the flagship store and its ancillary outlets.

Is India overtaking China?

India has been growing rapidly since the past decade and major progress can be seen throughout the country. Whether it's architecture or space missions, the world has acknowledged us. Here is a study describing the possibility of

India overtaking China as the world's leading manufacturer.

A recent Economic Times report said that India is actively pursuing the 'plus-one' strategy.

Only India’s labour force and domestic market are comparable to those of China

. India is seen as a natural partner for Western nations, with the Indian government working towards making it easier for businesses to set up their manufacturing units in India.

India’s manufacturing potential

, according to a Times of India report,

stems from benefits like

a sizable-trainable workforce, digital infrastructure facilitating efficient operations, investments in logistics infrastructure, proximity to different countries for supply chain diversification, a strategic location for accessing emerging markets, and cost advantages in low-cost and economical manufacturing, supported by a strong legal system and patent protection.

Key challenges encountered

in the process of manufacturing in India

encompass a range of issues.

Notably, high tariffs, antiquated labour regulations, the presence of fragile policy frameworks, regulatory unpredictability, and unfavourable growth conditions within a foreign nation constitute significant concerns. Additional hurdles include the acquisition of land with well-defined ownership, the imposition of substantial import duties, and the intricacies of a market that is particularly price-sensitive.

Upon successfully establishing manufacturing units in India, penetrating the Indian market presents an additional hurdle. A case in point is the divergent approaches of Ford and Hyundai Motors, which entered India simultaneously. Hyundai's focus on vehicles tailored to local preferences propelled it to become the second-largest automaker in the country. Conversely, Ford's emphasis on Western-market vehicles led to a bitter exit from India years later.

End of India-Pakistan dispute

The two countries have been at each other throats since the British split us apart. But the statements made by India and Pakistan's ministers have finally given us hope. Maybe this time we can set our differences aside and live in harmony. What are your thoughts on this rivalry?Following Pakistan Prime Minister Shehbaz Sharif's expressed openness to dialogue with India, the Ministry of External Affairs (MEA) Spokesperson, Arindam Bagchi, emphasized India's interest in cultivating amicable relations with its neighbour. However, Bagchi highlighted the necessity for an environment devoid of terror and violence as a prerequisite for fostering such a relationship.Click here to see the statement by Bagchi, In the course of a weekly MEA briefing, Bagchi stated, "We are aware of statements made by the Pakistan PM on this matter. India maintains a consistent stance, aspiring to normal relations with all neighbouring nations, including Pakistan. The fundamental requirement for this is an atmosphere free from terror and hostility."During the Mineral Summit's opening ceremony in Islamabad, Pakistan Prime Minister Shehbaz Sharif conveyed his willingness to engage in discussions with India, underscoring a spirit of neutrality. He emphasised that this stance is not directed against any specific party. Sharif expressed a readiness to engage in dialogue with neighbouring countries, emphasising the shared goal of nation-building. This sentiment was shared during the summit held on Tuesday.