🛴 FMCG boom

Good morning. Fun fact: Initially, Raksha Bandhan was celebrated between husbands and wives, with roots in Hindu mythology like the story of Lord Indra and his wife Sachi.

Over time, the festival expanded to include other relationships, particularly the bond between brothers and sisters.

Today, Raksha Bandhan is widely recognised as a celebration of the brother-sister bond, though it still encompasses other relationships and can symbolise protection and care between any two individuals.

On that note, a very Happy Raksha Bandhan to all 🥳🍬 

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• 🛴 FMCG boom

• 💥 Increased sales, courtesy of Raksha Bandhan

• 🗞️ Bite-sized summaries

  • 📈 India wants US securities

  • 🇮🇳 2036 India Olympics

  • 🪐 Citizens uncover a mysterious celestial object

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian equity indices Sensex and Nifty50 surged over 1% in the week's final session, with widespread gains across sectors. IT, Auto, Media, and Realty sectors led the rally, with midcap and smallcap shares outperforming. The India VIX declined 6.18%.

🌍️ International

• U.S. stocks capped their best week of 2024, with the S&P 500 and Nasdaq extending gains for seven consecutive sessions. Recession fears eased as positive economic data boosted investor confidence. All eyes now turn to the Jackson Hole symposium, where Fed Chair Jerome Powell's speech could signal future rate cuts.

ECONOMY

🛴 FMCG boom

India's Fast-Moving Consumer Goods (FMCG) sector is showing promising signs of growth, despite ongoing economic challenges.

As of August 2024, industry leaders are optimistic about sustaining volume growth in the coming quarters, buoyed by recovering rural demand and favourable monsoons.

Key Highlights:

1. Rural resurgence: Companies like HUL, ITC, and Dabur report 'green shoots' in rural markets, supported by government policies aimed at boosting the rural economy.

2. E-commerce boom: The sector is experiencing robust growth in e-commerce channels, particularly through quick commerce platforms like Zepto, Blinkit, and Swiggy Instamart.

3. Volume growth: The industry witnessed a 6.6% volume growth in the April-June quarter of the current fiscal year.

4. Inflation concerns: While optimistic, companies are wary of elevated food inflation, especially in coffee and cocoa prices, which may lead to potential price hikes.

5. Channel performance: Modern trade and e-commerce are outperforming traditional urban channels, which have shown some slowdown.

6. Future outlook: FMCG leaders expect gradual improvement in demand, driven by stable retail inflation, healthy monsoons, and government initiatives.

Challenges and Opportunities:

• Food inflation: Rising prices of cereals and grains are a concern, potentially necessitating price increases in some categories.

• Quick commerce: This emerging channel presents significant growth potential, especially for food businesses.

• Rural focus: Companies are optimistic about rural growth, citing factors like better monsoons, moderate inflation, and high rural employment.

Overall: While industry leaders like Mohit Malhotra (Dabur CEO), Saugata Gupta (Marico MD & CEO), and Varun Berry (Britannia Vice Chairman & MD) express cautious optimism about the sector's trajectory, they emphasise the importance of monitoring food inflation and rainfall distribution while leveraging emerging channels for growth.

Read more: Economic Times

CONSUMPTION

💥 Increased sales, courtesy Raksha Bhandan

1,200 × 900

This year, the Confederation of All India Traders (CAIT) forecasts a tremendous surge in Rakhi festival sales, with expectations soaring beyond ₹12,000 Cr. across India. Markets are experiencing a frenzy of activity as enthusiastic shoppers prepare for the celebration, with CAIT encouraging the use of Indian-made goods.

A notable trend this year is the overwhelming preference for indigenous Rakhis, completely eclipsing Chinese alternatives. 

Some numbers: 

• CAIT's National General Secretary, Praveen Khandelwal, highlights the consistent growth in Rakhi business over recent years, from ₹3,000 Cr. in 2018 to the projected ₹12,000 Cr. this year.

• CAIT anticipates overall festive sales to exceed ₹4 lakh Cr. due to an extended celebration period from 19 August to 15 November. This encompasses a series of festivals, including Janmashtami, Ganesh Utsav, Navratri, Diwali, and more.

Overall: The business community across India is well-prepared to meet consumer demands, having stocked up on all products for the festive season. 

Traders are optimistic about a prosperous and culturally rich celebration that not only boosts the economy but also strengthens local craftsmanship and national pride.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

📈 India wants US securities - India's ownership of US government securities hit a record $241.9B in June 2024, up from $235.4B the previous year. This places India 12th among global holders, with Japan, China, and the UK leading the list. Despite global economic uncertainties, including high inflation and geopolitical tensions, India's holdings have steadily increased. The US economy showed strong growth in the June quarter, while the IMF describes the global economy as in a "sticky spot", projecting 3.2% growth for 2024.

🇮🇳 2036 India Olympics - Prime Minister Narendra Modi reaffirmed India's aspiration to host the 2036 Olympics during his Independence Day address. Modi highlighted India's successful organisation of the G20 Summit, emphasizing the nation's readiness for large-scale events. Ahmedabad is considered a frontrunner to host. Modi also congratulated India's athletes for their six-medal haul at the Paris Olympics and extended wishes to the upcoming Paralympic contingent. With competition from Saudi Arabia, Qatar, and Turkey, India awaits the International Olympic Committee's decision, which is expected next year.

🪐 Citizens uncover a mysterious celestial object - Citizen scientists collaborating with NASA's Backyard Worlds: Planet 9 project have discovered CWISE J1249, a mysterious object hurtling out of the Milky Way at about 1 million miles per hour. Detected using data from NASA's WISE mission, this low-mass, low-metallicity object challenges classification and could be one of our galaxy's oldest entities. The finding highlights the crucial role of amateur astronomers in scientific research and the importance of infrared astronomy.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• US official says Mideast mediators are preparing for implementation of a cease-fire deal in advance.

• How did Mpox become a global emergency? What’s next?

• Bill Gates flags off 1st Indian Independence Day celebration in Seattle area, describes India as “global leader.”

• After Swiggy, Zomato rolls out new feature for users to place orders in groups.

• OYO snaps up Paris-based Checkmyguest for $27.4M.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Premier League updates: Man City beats Chelsea 2-0. Leaderboard here.

• Aditi Rao Hydari-Siddharth, Karan Johar amongst others show up for Eka Lakhani and Ravi Bhagchandka's engagement party.

• Independence Day movie releases:

  • Stree 2 approaches the ₹200Cr. mark after an incredible opening weekend. Review here.

  • Vedaa maintains a steady performance at the box office closing off the weekend with ~₹10Cr. in earnings. Review here.

  • Khel Khel Mein surpases Vedaa earnings ever so slighting with ~₹11Cr. in earnings. Review here.