🌏️ Geopolitical threats

Good morning. FYI - Diwali Muhurat Trading for 2024 is scheduled for November 1, from 6:00 to 7:10 pm on the BSE.

This symbolic session marks the financial new year for brokers. Historically a time of gains, it remains brief and often volatile, requiring traders to close intraday positions 15 minutes before the session ends.

Mark your calendars 📆 📑 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🌏️ Geopolitical threats

• 🚗 EU imposes tariffs on Chinese EVs

• 🗞️ Bite-sized summaries

  • 🧨 Diwali burst (in sales)

  • 🛵 Swiggy sets new IPO target

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• The BSE Sensex and NSE Nifty 50 gained for the second day, with Sensex up 363.99 points and Nifty 50 up 127.70 points. Banking stocks led gains, with the PSU Bank index rising 3.64%, while midcap and smallcap indices also advanced. However, Auto, Pharma, IT, FMCG, and Healthcare sectors declined.

🌍️ International

• Global stocks rose slightly on Tuesday as investors anticipated earnings from major U.S. tech companies, including Alphabet, Meta, Microsoft, Apple, and Amazon, due throughout the week. Treasury yields reached multi-month highs, reflecting market caution ahead of these results and the upcoming U.S. presidential election, with polls showing a close race.

GEOPOLITICAL ISSUES

🌏️ Geopolitical threats

External Affairs Minister S. Jaishankar recently addressed the Army Commanders' Conference 2024, stressing the need for the Indian military to adapt swiftly to evolving geopolitical dynamics and security threats.

At the conference’s closing session, Jaishankar emphasized a “whole-of-government” approach to national security, urging the Army to remain vigilant and capitalize on technological advancements and insights from global conflicts.

His address, titled "Global and Geopolitical Intricacies: Opportunities for India and Expectations from the Armed Forces," coincided with discussions on operational readiness, administrative priorities, and the near-completion of troop disengagement with China in eastern Ladakh.

The conference also highlighted the importance of joint operations and cross-domain military integration:

• Chief of Defence Staff Gen Anil Chauhan underlined the need for improved synergy across military branches to meet future challenges effectively.

• Meanwhile, the Ministry of Defence reaffirmed its commitment to advancing transformation initiatives to align with India’s strategic objectives.

Held at a crucial time, the conference comes as India navigates complex geopolitical tensions, particularly border issues with China, where the disengagement process at Demchok and Depsang Plains remains sensitive. Jaishankar's call for agility reflects the growing threats posed by regional instability, terrorism, and cyber warfare, which demand a proactive military stance.

Overall: Technological innovation remains central to India’s defence strategy, with a focus on integrating artificial intelligence, robotics, and automation.

Programs like the Innovations for Defence Excellence (iDEX) scheme aim to bolster Indigenous defence technology, supporting India’s Atmanirbhar Bharat (self-reliant India) vision.

Through a whole-of-government strategy, joint military operations, and technological integration, India’s armed forces are positioning themselves to address current and emerging security challenges more effectively.

Read more: Economic Times

GLOBAL TARIFFS

🚗 EU imposes tariffs on Chinese EVs

The European Union has imposed tariffs of up to 45.3% on Chinese-made electric vehicles (EVs), accusing China of providing unfair subsidies that distort the EU market.

Why now?

• This decision, coming after a year-long investigation, affects brands like Tesla, facing a 7.8% tariff, and China’s SAIC, which will see tariffs as high as 35.3%.

• This move is intended to counterbalance China's production surplus of around 3 million EVs annually, nearly double the size of the EU market, especially as the U.S. and Canada maintain high import barriers against Chinese EVs.

In response, China has criticized these tariffs as protectionist, launched probes into EU imports like brandy and dairy, and challenged the EU’s actions at the World Trade Organization.

• Chinese EVs have rapidly gained traction in the EU, now holding 8% of the market share, a figure expected to hit 15% by 2025, with Chinese models priced about 20% below EU-produced cars.

• The tariffs have divided EU member states, with Germany opposing the measure due to its potential impact on German car exports to China. France, however, supports the tariffs, citing fair trade concerns.

Overall: While the EU and China continue discussions on alternatives, the final impact of tariffs on EV prices in the EU remains uncertain.

Meanwhile, China’s EV exports to the EU dropped by 7% for the year but surged in August and September as exporters anticipated the tariff imposition.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🧨 Diwali burst (in sales) - Quick commerce platforms like Blinkit, Swiggy Instamart, and Zepto have seen a significant rise in Diwali gift orders, adding features like EMI options, postpaid, and 10-minute returns for certain items to attract customers. They’ve also curated festive sections on their apps with popular products like puja items, sweets, and decor. This trend aligns with increased demand for last-minute, need-based purchases for gifts and groceries. D2C brands report substantial growth in quick commerce sales during the festival period, with some categories, such as cookies, home decor, and quick gratification items, seeing spikes up to 20 times above normal levels.

🛵 Swiggy sets new IPO target - Swiggy has raised its primary fundraising target for its IPO to ₹4,499 Cr., reducing its secondary share sale. Key investor Prosus has scaled back its share divestment to 109.1 million shares, while other investors, including early backers and Swiggy’s founders, will also partially exit. Swiggy plans to invest heavily in its quick commerce unit, Instamart, with increased funds for dark stores and technology. For the June quarter, it posted a revenue of ₹3,222 Cr., despite widening losses from the competitive quick commerce segment. Swiggy’s IPO valuation could reach $11.3B, approaching rival Zomato’s market cap of $26.5B.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• VW labour chief sounds alarm on mass layoffs and three German plant closures.

• Robinhood just got on the election-betting bandwagon.

• Over 200,000 subscribers flee 'Washington Post' after Bezos blocks Harris endorsement.

• Israeli strike in northern Gaza kills at least 60, officials say.

• Russia to deploy 10,000 North Korean troops against Ukraine within ‘weeks’, Pentagon says.

• China vows to take ‘countermeasures’ over US and Taiwan $2B arms deal.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Yeh Kaali Kaali Ankhein Season 2 arrives this 22 November, only on Netflix.

• Mirzapur series is to be turned into a standalone film.

• Pregnant Gisele Bündchen steps out as she prepares to welcome her first baby with boyfriend Joaquim Valente.