Aniket Pujari
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Rupee hits all-time low of 85 against dollar: A look at factors driving the decline
The Indian rupee slipped to an all-time low of 85 against the US dollar on Thursday, December 19, as global and domestic factors continued to weigh on the currency.
It opened at 85 against dollar compared to Wednesday’s close of 84.95 against dollar.
Here’s a look at the key factors driving the rupee’s decline: Hawkish Fed signals boost dollar strength The US Federal Reserve’s hawkish stance at its December meeting sent ripples through global markets.The Fed now projects only two rate cuts in 2025, down from four estimated in September.The Fed raised its forecast for core PCE inflation to 2.8% in 2024 and 2.5% in 2025, signaling prolonged inflation concerns.The dollar index surged to a two-year high, further pressuring emerging market currencies, including the rupee.
Fed signals slower rate cuts amid rising inflation, upgraded GDP forecasts
In its latest policy meeting, the Federal Reserve lowered its benchmark interest rate by 25 basis points, taking it to a target range of 4.25%-4.50%. However, officials signalled just two additional rate cuts in 2025, down from the four forecasted in September.
The revised projections reflect heightened caution as the Fed grapples with persistent inflation and an economy performing above expectations.
The Fed upgraded its GDP growth forecast for 2024 to 2.5%, compared to the 2% projected in September, citing resilient economic activity. However, growth is expected to taper to its long-term trend of 1.8% from 2026 onward.
Inflation estimates were revised upwards, with the 2025 forecast now at 2.5%, up from 2.1%, and core inflation projected at 2.8% for the same year.
Policymakers reduced their unemployment outlook for 2025, reflecting confidence in a strong labour market.
Jhunjhunwala family-backed IKS Health shares list at a 43% premium to their IPO price
Shares of Inventurus Knowledge Solutions (IKS Health) made an impressive start on the stock exchanges on Thursday, December 19, after listing at a premium of 43% over the issue price of ₹1,329.
The stock listed at ₹1,900 on the NSE, a premium of 42.96%, while it listed at a premium of 39.65%, at ₹1,856 on the BSE.The listing was better than grey market estimates where shares were commanding a premium of 32%. The grey market operates as an unofficial platform where shares are traded prior to opening of the subscription until the listing day. This unregulated market allows investors to speculate on the pricing.
The IPO was subscribed a solid 52.68 times at close, fetching bids for ₹72,500 crore. The portion for the qualified institutional bidders (QIBs) was subscribed 80.64 times while the category allocated for non-institutional investors (NIIs) was booked 23.25 times. Allocations for retail investors and employees were subscribed 14.55 times and 5.20 times, respectively.
Swiggy an ‘underappreciated winner’, JPMorgan says with its highest share price target
Swiggy shares, which have already run up close to 50% from their IPO price of ₹390, still have more room to run, brokerage firm JPMorgan said after initiating coverage on the stock on Thursday, December 19.
The brokerage now has a “buy” rating on the food delivery aggregator, with a price target of ₹730. JPMorgan’s price target implies a potential upside of 27% from Wednesday’s closing levels. This is also the highest price target for Swiggy’s shares on the street, just a few days after CLSA had ascribed a target of ₹708 with an “Outperform” rating. JPMorgan expects Swiggy to catch up across both food delivery and the Quick Commerce segments, owing to a renewed focus and improved execution.
#TechTalks
A ₹1.5-lakh crore opportunity is waiting for India
Niket Shah, Chief Investment Officer at Motilal Oswal Mutual Fund, says a ₹1.5-lakh crore opportunity is ripe for the plucking for India in the mobile phone manufacturing space.
Speaking during a CNBC-TV18 special on Wednesday, December 18, Shah said the government’s production-linked incentive (PLI) schemes and a surge in domestic production, coupled with India’s semiconductor aspirations, has presented the country with a golden opportunity.
Shah noted how India and China were on the same footing in the 1970s, and how China went on to become a global manufacturing powerhouse — the country is home to 18% of the world’s population and contributes 18% to global GDP, while India — with 17% of the world’s population — contributes around 3%. Shah believes the government is on the right track.
Indian banks reported over 23,000 cybersecurity incidents in 2023: Government to Parliament
The government told Parliament on Wednesday, December 18, that the Indian banking system experienced 23,158 cybersecurity incidents in 2023. While this is significantly lower than the 1.22 lakh incidents reported during the height of the COVID-19 pandemic in 2021, it’s still a cause for concern.
The government, citing data available with the Indian Computer Emergency Response Team (CERT-In), said there were 39 attempts to hack a bank’s website and 401 phishing attempts last year. The incidents reported cover a wide range of attack vectors, including viruses, phishing, network scanning & probing and website hacking.
#DailyData
#PersonalFinance
Fixed vs Floating Interest Rates: Which option should you choose?
When choosing a home loan, potential borrowers are often faced with the decision between fixed and floating interest rates. Understanding the difference between these two options is essential, as it can significantly impact repayment plans and overall loan costs.
Viral Bhatt, Founder of Money Mantra, explains the dilemma of borrowers well:” Imagine two friends, Priya and Rohit, planning a road trip. Priya rents a car with a fixed rate of ₹10 per kilometer, while Rohit opts for a rental where the rate depends on fuel prices—sometimes it’s ₹8, sometimes ₹12. Who made the better choice? That depends on the journey ahead,” Bhatt says. Similarly, when it comes to loans, borrowers must weigh the pros and cons of fixed and floating interest rates, as each option presents different advantages and risks.
This mutual fund has turned ₹10,000 monthly SIP into ₹23 crore in 31 years
Franklin India Prima Fund, which completed 31 years of inception on December 1, 2024, has delivered decent returns over its long track record. A monthly Systematic Investment Plan (SIP) of ₹10,000 invested in the fund over 31 years would have grown to over ₹23 crore, according to Value Research.
This translates to annualised returns of 21.03% and represents a total investment of ₹37.2 lakh over the period. As of November 30, 2024, the fund’s Assets Under Management (AUM) stood at ₹12,441 crore. The current Net Asset Value (NAV) is ₹2,821.7187, as of December 18, 2024, according to Value Research.
#StartupsWorld
What is the net worth of Zerodha founders Nikhil and Nithin Kamath?
Siblings Nithin and Nikhil Kamath who founded one of India’s leading discount broking platforms Zerodha, are ranked eighth on the list of India’s top 10 self-made billionaires.
The 14-year-old Zerodha is estimated to be worth ₹64,800 crore ($7.7 billion at ₹84 to a US dollar), by a report released by Hurun in association with IDFC First Private Banking on December 18. This is significantly higher than the $3.6 billion valuation reported by the bootstrapped startup in September 2023.The two billionaire brothers own nearly all shares in the company. With over ₹5.6 lakh crore worth of assets in custody and over ₹4,700 crore in annual profit in FY24, the Bengaluru-based firm is now only second to Groww (another app-based broker founded in 2016) by market share, according to latest data compiled by B&K Securities.
An AI company is raising $10 billion in a single round
Databricks, a San Francisco-based company specialising in data and artificial intelligence (AI), announced that it is raising $10 billion in its Series J funding round. The company said it has secured $8.6 billion of the total amount to date, with the round valuing Databricks at $62 billion.
Thrive Capital led the funding with Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management. Other participants include existing investor Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital, and Wellington Management. The funding comes on the heels of Databricks reporting significant growth —a year-over-year revenue increase of over 60%, driven by growing demand for AI solutions.
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