Aniket Pujari
On a more optimistic note, India’s potential as a global manufacturing and services hub is gaining momentum amid the ‘China plus one’ strategy. Meanwhile, in the Middle East, Israel claims to have killed 250 Hezbollah fighters as tensions flare along the Lebanon-Syria border.
On the banking front, Q2 updates from Federal Bank, HDFC Bank, IndusInd Bank, and IDFC First Bank show robust growth in deposits and advances. While India’s economic progress is strong, FM Sitharaman warns AI could disrupt the labour market.
In diplomatic news, Jaishankar is set to attend the SCO summit in Pakistan. In Haryana, BJP aims for a hat-trick win, as the Congress eyes a decade-long comeback. Lastly, quick commerce apps are reshaping consumer habits, putting supermarkets and kirana stores under pressure.
Here are the top 10 buzzing stories from markets, business, economy, and beyond.
Worst Nifty week since June 2022 wipes out ₹17 lakh crore in investor wealth
Investors on Dalal Street lost over ₹17 lakh crore in what turned out to be the worst week for the Nifty 50 since June 2022. The 50-stock benchmark index ended 4.7% lower for the week, while it had declined 5.6% in the week between June 6-10, 2022.
A combination of escalating tensions between Iran and Israel and the subsequent rise in oil prices, coupled with the rally in the Chinese stock markets, which has led to tactical money moving out of India, triggered the fall in the markets this week.
Experts see India as global hub for manufacturing, services amid ‘China plus one’ strategy
India’s growth potential continues to capture global attention, with top economists and trade experts forecasting strong medium to long-term prospects for the country across various sectors, particularly manufacturing and services.
Speaking with CNBC-TV18, Robert Lawrence, Professor of International Trade and Investment at Harvard Kennedy School, praised the significant improvements in India’s infrastructure, highlighting how services for poorer populations, such as water and sanitation, have enhanced welfare.
Lawrence also noted that India’s geopolitical positioning as a neutral player could be instrumental in resolving global conflicts, making it an attractive destination for companies seeking alternatives to China.
Israel claims 250 Hezbollah fighters killed; Lebanon-Syria border cut off following airstrike
The Israeli military reported on Friday, October 4, that approximately 250 Hezbollah fighters have been killed since the launch of its ground operation in Lebanon earlier this week. Lieutenant Colonel Nadav Shoshani stated that the military is currently assessing the damage from airstrikes carried out in southern Beirut on Thursday night, targeting Hezbollah’s intelligence headquarters.
Hezbollah has yet to release any information regarding its casualties. Meanwhile, Israel has conducted a series of powerful airstrikes overnight in the southern suburbs of Beirut, one of which disrupted the crucial border crossing between Lebanon and Syria, which has become a lifeline for tens of thousands fleeing the relentless Israeli bombardment.
The Israeli military did not provide immediate details on the specific targets; however, Lebanon’s state-run National News Agency reported that the area experienced more than ten consecutive airstrikes.
##Bank Q2 Updates
Federal Bank Q2 Update: Deposits surge 16%, advances grow by 19% on-year
Federal Bank on October 4 provided a business update for the second quarter of FY25, reporting total deposits of ₹2.69 lakh crore, reflecting a 16% year-on-year (YoY) increase from ₹2.32 lakh crore in the corresponding quarter last year.
The bank’s customer deposits, excluding interbank and certificates of deposit, also saw a 16% increase to ₹2.53 lakh crore compared to ₹2.19 lakh crore in Q2 FY24.
HDFC Bank Q2 business update: Advances rise 7%, deposits 15% up
HDFC Bank’s gross advances increased by 7% year-on-year (YoY) and 1.3% quarter-on-quarter (QoQ) in seDeposits rose 15.4% YoY and 3.1% QoQ to ₹23.5 lakh crore on average.
HDFC Bank’s total advances under management, which include loans securitised or sold, stood at ₹26.34 lakh crore by the end of September 2024.cond quarter (Q2). The same was reported at ₹25.2 lakh crore as of September 30, 2024.
IndusInd Bank Q2 business update: Advances rise 13%, deposits 15% up
IndusInd Bank on Friday (October 4) released its business update for the quarter ending September 30, 2024. The bank reported a year-on-year (YoY) increase of 13% in net advances, which grew to ₹3.57 lakh crore from ₹3.15 lakh crore in the same quarter last year.
On a quarter-on-quarter (QoQ) basis, net advances increased by 3%, up from ₹3.48 lakh crore in June 2024.
Deposits surged by 15% YoY to 4.13 lakh crore as of September 30, 2024, compared to ₹3.60 lakh crore in the same period last year.
IDFC First Bank Q2 Update: Deposits jump 32%, loans grow 21% on-year
IDFC First Bank has reported strong growth across key financial metrics for the quarter ending 30th September 2024. Loans and advances grew by 21.3% year-on-year, rising from ₹1.83 lakh crore as of 30th September 2023 to ₹2.22 lakh crore in the same period this year.
Customer deposits witnessed an even stronger increase, surging by 32.2% year-on-year. Total deposits stood at ₹2.17 lakh crore as of 30th September 2024, up from ₹1.64 lakh crore in the previous year. This growth is largely driven by the bank’s focus on raising funds to repay legacy borrowings.
CNBC TV18’s Citizens’ MPC votes 3-2 that RBI should soften to neutral stance in upcoming Policy
CNBC-TV18’s Citizens’ MPC members have voted 3-2 for a change in RBI stance to neutral. But 4-1 against a cut. Catch Latha Venkatesh in conversation with Pronab Sen, Former Chief Statistician, Sonal Varma, MD & Chief Economist-India, Nomura Fin Advisory & Securities Samiran Chakraborty, Chief Economist – India, Citi, Sajjid Chinoy, Chief India Economist, JPMorgan and Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India.
AI to have sizeable impact on labour market, may pose a threat to prosperity: FM Sitharaman
Even as India’s economic performance is credible, there are certain challenges, including geopolitical ones and the advent of artificial intelligence, which may pose a threat to prosperity, Union Finance Minister Nirmala Sitharaman said on October 4.
“India must develop domestic capacity as it seeks to double its per capita income in a few years. The country is facing Several persistent geopolitical challenges that may pose a threat to prosperity,” she said. The minister added that the advent of artificial intelligence shall have a sizable impact on the labour market and that too may pose a threat to prosperity.
Sitharaman was addressing the third edition of Kautilya Economic Conclave with the theme ‘The Indian Era’ organised by the Department of Economic Affairs and Institute of Economic Growth.
Jaishankar to travel to Pakistan to attend SCO summit
India on Friday announced that External Affairs Minister S Jaishankar will travel to Pakistan to attend a conclave of the Shanghai Cooperation Organisation (SCO) in mid-October.
The announcement was made by external affairs ministry spokesperson Randhir Jaiswal.
The last Indian external affairs minister to visit Pakistan was Sushma Swaraj. She had travelled to Islamabad in December 2015 to attend a conference on Afghanistan.
Pakistan is hosting the SCO Council of Heads of Government (CHG) meeting on October 15 and 16.
BJP eyes hat-trick, Cong a comeback after a decade as Haryana votes on October 5
The fate of Chief Minister Nayab Singh Saini, Bhupinder Singh Hooda and Vinesh Phogat of the Congress besides JJP’s Dushyant Chautala and 1027 other candidates will be decided on Saturday as elections to the 90-member Haryana assembly will be held with over 2 crore people eligible to vote.
The ruling BJP is eyeing a hat-trick of wins in the state while the Congress is hoping to make a comeback after a decade. Counting of votes will be held on October 8.
Haryana’s Chief Electoral Officer Pankaj Agarwal said 2,03,54,350 voters, including 8,821 centurions, are eligible to exercise their franchise and the voting will be held from 7 am to 6 pm.
Supermarkets, kirana stores struggle as consumers shift to quick commerce apps
Quick commerce, which was once primarily used for urgent, small-scale purchases, is now becoming a preferred option for larger, regular grocery shopping. According to a Nielsen IQ report, 20% of offline shoppers have transitioned to buying their entire grocery needs online. Nearly 31% of shoppers are purchasing their essential grocery items online, while 39% use quick commerce apps for top-up purchases. Furthermore, 60% of shoppers are now opting to buy their monthly staples online, indicating a profound shift in consumer behaviour.
India becomes fourth nation to reach $700 billion in forex reserves
India’s forex reserves have crossed the $700 billion mark for the first time, increasing by $12.6 billion during the week ended September 27, according to data released by the Reserve Bank of India (RBI). With this milestone, India becomes the fourth economy in the world to surpass $700 billion in foreign reserves, joining China, Japan, and Switzerland.
The increase of $12.6 billion is also the largest weekly addition since July 14, 2023. In comparison, the overall reserves had grown by $2.8 billion to $692.3 billion in the previous reporting week. Stable oil prices and inflows into the nation’s stocks and bonds have boosted the foreign exchange reserves to $705 billion.
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