India's New Crorepatis

Over 100,000 new crorepati taxpayers have emerged in India in three years.

The New wave of crorepati taxpayers spans legacy investors, fresh entrants in the futures and options space,  successful startup founders and executives in select companies and sectors.

Key Reasons for the surge in Crorepati Taxpayers 

• Booming stock market

• Robust profits and large bonus payouts in select companies 

• Aggressive talent poaching with salary hikes

• Stringent tax enforcement 

• Dividends getting taxable in the hands of individuals (since FY 2020-21)

The new rule of taxing dividends at the individual -

Rather than the corporate level has driven numerous CEOs and senior executives across sectors into the ₹1 crore-plus tax bracket.

India is now home to more than 220.000 people with a taxable income of over ₹1crore. This is a staggering five-fold increase over the past decade. Even more dramatically, 100,000 of them joined the group of high earners in just three years, since the onset of the Covid pandemic. Who are newcomers to this bracket of super-rich Indians.

Rise of the Rich

In assessment year 2013-14,corresponding to FY2012-13, India had around 40,000 individuals reporting a taxable income of more than ₹1 crore, according to recent SBI Research report that sourced its raw data from the income -tax department. By AY 2020-21 (FY2019-20) which remained largely unaffected by the pandemic, the number of crorepati taxpayers climbed to 120,000,with a modest increase to 130,000 the following year. A sharp rise in the number of super-rich Indians in the ₹1 crore-plus bracket was observed only in AY2022-23 and AY 2023-24, reaching 190,000 and 220,000, respectively, according to the same data set.

"There is a demand for talent, with requisite experience and skills, in rapidly expanding industries such as AI-based tech sector, green energy, professional services, startups in emerging areas travel and hospitality and real estate," 

Senior executive have also greatly benefited from a surging stock market, with the BSE Sensex leaping from 29,000 at the end of FY2019-20 to 73,000 by March-end 2024.

"After Covid, the great resignation wave hit corporates, which forced them to increase remuneration by 20-30%mid - year, and it also contributed to several salaried income taxpayer going above the crore mark,".

High corporate profitability, along with large bonus payout in recent years, has swelled the number of individuals in the crore-plus income pool.

(Source :ET)

High-tech idea shaking Up World of Study Abroad-Agri

India students from farming heartland urban centres alike are increasingly heading abroad to study agriculture and allied fields a shift sparked by the global demand for sustainable farming practices, technological innovation in food production and immigration pathway this route offers.

Interest in these programmes ranging from agronomy and precision agriculture to agri-tech and food sciences - has surged over the past few years, driven by the EU's 'Farm to Fork' strategy and Canada's Agri-Food Pilot.

"It's a perfect storm of opportunities. These students are looking at agriculture through a new lens that combines technology, sustainability and global food security.

The EU's Farm To fork strategy and similar initiatives worldwide have created a massive demand for agricultural experts.

Countries like Canada and Germany are offering faster permanent residency pathways for individuals with expertise in modern agricultural practices,".

Tata Motor's

Tata Motors recorded an about 10% decline in its Q2 FY25 profit to Rs 3,450 crore, which was much lower than the Street's estimates of Rs 5,038 crore. Revenue also decreased by 3% to little over Rs 1 lakh crore.

Operating profit, a measure of underlying business performance, dropped by about 20% to Rs 5,799 crore. Expenses fell by 3% to Rs 97,330 crore.

Operating profit of its UK unit Jaguar Land Rover declined by about 16% to Rs 4,521 crore. The JLR business was impacted by aluminum supply constraints and a hold placed on 6,029 vehicles for quality control checks. Operating profit of non-JLR vehicles such as Tata and other brands of passenger cars fell by about 90% to Rs 25crore in Q2 FY25.

This unit was affected by slow consumer demand and seasonal factors.

The operating profit of Tata commercial vehicles declined by 16 % to Rs 1,354 crore.

The commercial vehicle business was impacted by a slowdown in infrastructure project execution, reduction in mining activity, and an overall drop in fleet utilization due to heavy rain..

Tata Motor's management is hopeful for the festive seasons, substantial investment in infrastructure and an easing of supply challenges to improve its performance.

Markets end the week in red: NIFTY50 & SENSEX close marginally lower, IT and PSU banks gain for the week

After a small pause in the last week markets resumed the correction as NIFTY 50 and SENSEX ended 0.2% lower on Friday. IT and PSU Bank index were the top sectoral gainers with gains up to 1.8% and 4% respectively.

Indian equity benchmarks ended the week in red as selling pressures from the FIIs and weak earnings dampened overall investor sentiment. The week was crucial in terms of two key events that went past. First, the US presidential elections ended with Donald Trump becoming the 47th president, beating Vice-president Kamala Hariss. Second, the Federal Reserve maintained its dovish policy stance by cutting interest rates by 25 bps. The Federal Reserve Bank of England also followed suit by cutting its benchmark rates by 25 bps.

The weekly wrap

Markets resumed the correction after taking a pause the previous week. The NIFTY 50 and SENSEX closed the week marginally lower with 0.2% losses. Trent, Coal India, Asian Paints, and Grasim Industries were the top weekly losers in the NIFTY 50, with losses ranging from 5% to 11%. Meanwhile, M&M, Apollo Hospitals, and Tech Mahindra were the top gainers, with gains ranging from 4.5% to 9%.

Sectorally, NIFTY IT (+4.1%), NIFTY PSU Bank (+1.8%) and NIFTY Auto (+1.2%) were the top three weekly gainers. While NIFTY Reality (-3.2%), Media (-2.9%) and Energy (-2.3%) were the top three sectoral losers.

The Broader markets too corrected as NIFTY smallcap fell 1.8% and NIFTY Midcap closed 0.2% lower for the week.

Markets started slightly positive but soon became volatile amid persistent foreign fund outflows. On November 7, foreign institutional investors (FIIs) sold equities worth Rs 4,888 crore.

The BSE Sensex ended at 79,486.32, down 55.47 points or 0.07% after trading between 79,117.37 and 79,807.26. The index had 14 advancing stocks and 16 declining stocks.

The NIFTY50 ended at 24,148.20, down by 51.15 points or 0.21% after trading between 24,066.65 and 24,276.15. There were 23 stocks advancing against 27 stocks declining on the index.

On the global front, European markets traded lower on the back of mixed earnings results, while heavyweight luxury firms fell after Richemont's results failed to impress. European markets were trading lower; UK’s FTSE 100 decreased 53.5 points or 0.66% to 8,087.24, France’s CAC fell 59.11 points or 0.8% to 7,366.49 and Germany’s DAX was down by 127.92 points or 0.67% to 19,234.60.

Asian markets ended mixed after the Bank of England and the U.S. Federal Reserve cut interest rates by a quarter point.Market participants shifted the focus to stimulus announcements from China later in the day as the meeting in the Standing Committee of the National People's Congress ended.

India should be in Superpowers list, says Putin

'Our vison of where and at what pace our relations will develop is based on today's realities '

Russian president Vladimir Putin has called for India's inclusion among the global superpowers, citing its fast-growing economy, large population and rich culture.

He said joint manufacturing defense equipment reflects the growing degree of trust between Moscow and New Delhi.

"India should undoubtedly be added to the list of superpowers, with its billion-and-a half population, the fastest growth among all economies in the world, ancient culture, and very good prospects for further growth," Putin said at the plenary session of Valdai Discussion Club - a leading think tank forum in Russia - in Sochi on Thursday.

"Our vision of where and at what pace our relations will develop is based on today's realities. The volume of our cooperation is increasing many times over, every year," he said 

"Look at how many types of Russian military equipment are in service with the Indian armed forces.

There is a great degree of trust in this relationship." Putin's comments come on the heels of PM Modi's Kazan visit to attend the Brics Summit last month.

Source: ET

Ola electric sees 39% jump in Op revenue, loss down to ₹495 cr

Chief executive Bhavish Agrawal terms second quarter as seasonally weak period.

The key highlight for us in Q2 has been that we have maintained our market leadership and there is also a quarter level competitive action that got aggressive.

 Electric two wheeler maker ola electric on Friday reported a 39% year-on-year increase in operating revenue at ₹1.214 crore for the July - September period. Its net loss during the second quarter narrowed to ₹495 crore from ₹524 crore year earlier.

On sequential basis, however, revenue fell 26% and net loss widened. Deliveries also dropped 21% from a quarter earlier to 98.619 units.

Chief executive Bhavish Agarwal termed the second quarter as a week period, and during an earnings call predicted a recovery from the ongoing three-month period ending December.

He also underscores the increased competitive intensity in the two-wheeler market.

"The grass margin specifically for the ( company's ) auto segment is 20.6% which is flat quarter on quarter, and this is despite enhanced competitive dynamics in the industry. The key highlight for us in Q2 has been that we have maintained our market leadership, our market share is around 33% and there is also a quarter level competitive action that got aggressive,"

In September ola electric's market share dropped to 27% from 31% in August, as larger two-wheeler makers Bajaj auto and TVS Motor gained ground in the EV market. The company had a peak market share of 58% in May this year.

 Agrawal told analysts that the company aims to grow at a rate of 30% year-on-year from here on.

During the three-month period ended September 30, Ola electric's operational performance took a hit sequentially with the company reporting a negative Ebitda margin of 28. 4%, compared with a negative 9.6% in the previous quarter.

Lately, Ola Electric has been announcing sale events in an effort to ramp up its sales. On October 10, it launched the 'Biggest Ola Season Sale', a three-day campaign offering discounts on the S1 electric scooter lineup.

Agrawal said the company took one-time expenses during the quarter pertaining to its initial public offering in August.

On Friday, its shares ended trading 2.5% down at ₹72.74 on the BSE. The results were announced after market hours.

Source: ET

Nifty, Sensex pull back after the Trump rally: Key factors behind stock market crash

Benchmark indices Sensex and Nifty declined more than a percent on November 7 after a two-day rally, as investors moved on the sidelines, possibly to gauge the Federal Open Market Committee (FOMC) outcome later tonight.

The BSE Sensex declined 1.19 percent or 958.79 points to its intraday low of 79,419.34 at around noon. The NSE Nifty dropped over 300 points or 1.2 percent to 24,181.95.

Nifty IT, metals, auto, financials among others contributed to the softness in trade, despite a very strong handover from US markets overnight, following Republican Presidential nominee Donald Trump's victory.

Here are the top factors that may have led to the decline:

1) FOMC Overhang: Investors remained on the sidelines ahead of the US Federal Reserve interest rate decision, where a 25 basis point rate cut is anticipated, with investors closely watching Chair Jerome Powell's remarks for insights into the future direction of the rate trajectory.

"Trump's pro- business initiative of ‘America First’ can strengthen the American economy. But if he walks his talk and imposes a 60% tariff on Chinese imports and 10-20% tariff on imports from other countries, that would trigger inflation and jeopardise the Fed’s policy of containing inflation, necessitating a rethink of the Fed’s present policy of rate cut. This has the potential to negatively impact global stock markets," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

2) Rupee at Fresh Low: Rupee declined to a lifetime low on November 7 in the wake of expectations that Donald Trump's victory is likely to boost the dollar in the coming months.

3) Relentless FII outflows: Unabated foreign fund outflows has further dented investor sentiment. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,445.59 crore on Wednesday, after selling a record Rs 94,000 crore in the month of October.

4) China Stimulus Hopes: Investors are closely watching China's top legislature the 14th NPC Standing Committee (NPCSC) meeting till November 8. A Reuters report said China is weighing over 10 trillion yuan in additional borrowing in coming years. The CSI 300 Index and Hang Seng were up over a percent on potential announcement of a large stimulus package at the ongoing meet.

5) Weak Earnings Overhang: Subdued September quarter results continue to weigh on the domestic markets. Some analysts have hinted that the equity market is experiencing headwinds due to a slowdown in earnings growth in some sectors.

6) Awaiting Trump's Policy Fine print: Any anti-China stance taken by U.S. President-Elect Donald Trump could potentially benefit India, since it may open up new opportunities for trade and strategic collaboration between the two countries. However, Trump has also criticized India for high tariff rates, and has shown a willingness to impose tariffs on Indian exports to the United States, which could potentially impact Indian businesses.

7) Selloff in IT Shares: After a strong rally following Trump's victory on November 6, IT stocks fell on concerns of possible protectionism under Trump's presidency, which may pose risks to the earnings of Indian IT companies catering to US clients for software exports. Mphasis, LTI Mindtree, Tech Mahindra among others fell up to 2.5 percent mid-day on November 7.

Meanwhile, both the Dow and S&P 500 registered their biggest one-day percentage rise since November 2022, and the Nasdaq notched its biggest daily percentage gain since February, after the election verdict.

(Source : Money control)