Morning Scan: Catch up on all the major headlines to start your day

 Morning Scan: Catch up on all the major headlines to start your day

A summary of the best news articles to stay one step ahead of the competition

Top newspaper articles summarized as follows: 1. Sensex enterprises' earnings have not kept pace with the sharp increase in corporate profits.

Over the last two quarters, corporate profits in India have increased significantly, but this has not yet been reflected in the results of Sensex businesses. The aggregate net profits of the top 30 firms are tracked by the benchmark's earnings per share, which increased 7.2% year over year to Rs 2,826.3 from Rs 2,635.7 at the end of November of the previous year. In contrast, the September quarter saw a 43.1 percent increase in the total net earnings of about 3,000 listed companies, reaching an all-time high of Rs 3.26 lakh crore.

Why this matters: The uneven pattern of recent quarters' profits growth points to a dramatic slowdown in the top listed companies in India's earnings growth. The varying weightages assigned to various corporations within the index have an impact on the aggregate profits of Sensex companies.

#2. Indian stock markets will be upgraded by Goldman Sachs, the newest outside brokerage.

The most recent foreign brokerage to improve the Indian markets is Goldman Sachs. Citing strong profits growth, the US-based business has advised taking an overweight position in local shares. According to a statement from Goldman Sachs, the market has produced the strongest long-term return compound annual growth rate of any regional index and provides a variety of alpha-generating topics.

Why this matters: This year has seen a sharp increase in local stocks, which has fueled positive outlooks. However, unfavorable events in geopolitics as well as rising oil and US government rates might cause volatility to escalate.

3. The Income-tax department is looking into Big Tech for potential Rs 5,000 crore in tax evasion.

The income-tax department is looking into potential tax evasion at the Indian subsidiaries of Google, Apple, and Amazon. In relation to a 2021 investigation, the authorities have requested comprehensive answers from the tech titans on their transfer pricing policies. Authorities have disregarded many explanations offered by these corporations and are pursuing a tax demand of more than Rs 5,000 crore.

Why this matters: Authorities in several nations have often accused the practice of transfer pricing, which accounts for the rates at which multinational corporations and its units deal with one another, of tax avoidance. There will probably be legal challenges to the tax requests.

#4. US taxes of $250–300 million might be collected from Razorpay's decision to relocate its base to India.

Razorpay intends to relocate its parent company to India via a cross-border merger in response to the country's stricter fintech legislation. As a result, the US, where it is now headquartered, may have to pay $250–300 million in taxes. Recently, Razorpay and its investors have explored merging at a price below the $7.5 billion that was formerly estimated for the company in 2021.

Why this matters: Although a dramatic reduction in value might result in a lesser tax bill, authorities may not be in favor of it. In order to pay the taxes, Razorpay could need to approach investors for additional funding.

#5. WeWork is hesitant to sell its India branch to Embassy Group, but the matter is still up for negotiation.

Although it has not ended negotiations with the primary owner of the India operation, US-based WeWork Inc. has turned down the offer from Embassy Group-owned WeWork India to repurchase its 27% ownership part in the domestic firm. WeWork India made an offer to repurchase the parent company's share after the global counterpart's US bankruptcy filing.

Why this matters: WeWork India is a lucrative enterprise that aims to increase its presence in the co-working market, in contrast to its US version. The bankrupt brand holder's hesitation may not hold.

#6. The government is thinking of taking out 5–10% of the state in banks where it owns more than 80 percent.

In state-run banks where it owns more than 80 percent of the stock, the central government is thinking of selling off 5–10 percent of the holding. Soon, a path should become more solidified. In the Bank of India, Indian Overseas Bank, Punjab & Sind Bank, Bank of Maharashtra, Central Bank of India, and Uco Bank, state ownership surpasses the threshold.

Why this matters: In recent years, the government has often fallen short of its disinvestment goals. If it is successful in obtaining a fair price for the share it plans to put up for sale is yet to be seen.

#7. October had the lowest level of retail inflation in four months, at 4.87 percent.

Food prices declined in October, causing retail inflation in India to drop to 4.87 percent, a four-month low. This has led to anticipation that the central bank would likely hold policy rates steady when it reviews them next month. For the second consecutive month, the Consumer Price Index was 5.02 percent in September, staying within the Reserve Bank's comfort zone of 2 to 6 percent. October of the previous year had 6.77 percent of retail inflation.

Why this matters: The retail inflation trend's downward tendency supports the Reserve Bank's decision to postpone increasing the benchmark policy rate. Prior to next year's legislative elections, the administration will be pleased with the reduced number.

#8. Indian automakers want to revamp their business approach based on a razor-thin market share.

Eight of India's 15 automakers have a market share of less than 2%, which raises questions about their viability in a nation where General Motors and Ford Motors have closed their doors. The fact that the top four brands—Maruti Suzuki, Tata, Hyundai, and M&M—accounted for 81% of the market between April and October indicates the industry's increasing consolidation.

Why it matters: There's a good chance that other manufacturers may decide to leave the regional market. In the next three to four years, it is not implausible that there would be no more than seven or eight players in India.

#9. The government is considering tighter guidelines for local production of electric cars.

In light of incidents where businesses have broken phased manufacturing program rules by assembling cars using imported parts, the government is thinking of enacting stronger regulations to compel the use of local components to support domestic production of electric vehicles.

Why it's important: If the nation does not develop into a manufacturing powerhouse, the government believes that offering commercial advantages to manufacturers of electric cars may be counterproductive.

#10. The largest group of investors in the Dubai real estate market is now Indian.

In the Better houses Residential Market Report, Indians have risen to the top of the nationalities list for both the June and September quarters. In the first quarter, UK nationals led the field when it came to purchasing new houses or investing in real estate for higher returns.

Why this matters: Traditionally, the top five house purchasers in Dubai have been wealthy Indians. The stifled demands from Russian billionaires living in Britain during the conflict in Ukraine may have contributed to the pole position.