India Stocks: Summary of Top Articles

Reliance's telecommunications division, Jio, could be listed in 2025, and brokerage firm Jefferies, a global brokerage, reported in a research note that the valuation at the time could reach 112 billion dollars, according to Business Standard. Reliance Industries may separate Jio Platforms and list it after price discovery.

Reliance's move to list Jio is expected to garner enthusiastic support from both retail and institutional investors. Both domestic and international investors generally prefer spin-offs in India, as the discount on holding companies is significantly lower in India compared to other regions in Asia.

There is a possibility that the plan of South Korean automaker Hyundai Motor to list its Indian subsidiary for 30-35 billion dollars could accelerate the recovery of international companies aiming to list their subsidiaries in India. It is expected that the valuation of Hyundai Motor India's shares after listing will reach nearly 20 billion dollars.

This stock sale is expected to be the second largest in India, and for other multinational companies, it will be a clue to the benefits of a resilient stock market, a robust economic outlook, and an expanding consumer base.

Canadian asset management company Brookfield has invested over $0.2 billion in Leap Green Energy, a renewable energy company based in Tamil Nadu.

Brookfield's investment is another example of investor interest in India's green energy transition. Deals in this sector are expected to accelerate in the near future.

According to the Economic Times, a government committee has proposed raising the revenue threshold for companies required to maintain and audit input cost calculations. It would require a threshold of INR 7.5 billion for the past three years, with INR 2.5 billion for six regulated sectors and INR 3.5 billion for thirty-three non-regulated sectors to maintain and audit cost calculations.

This move to raise the threshold for accounting standards would effectively relieve all small and medium-sized enterprises from compliance burdens, which would be welcomed by the SME sector.

According to the analysis by Hindu Businessline based on the National Sample Survey Office's survey of unincorporated enterprises, the small-scale manufacturing sector in the unincorporated sector has been particularly hard hit from 2015-16 to 2021-22, showing a rapid decline. The number of non-agricultural non-corporate enterprises in 2015-16 was 0.634 billion companies, but it increased to just 0.65 billion companies in 2022-23. The most significant decline was in the manufacturing industry, with 2.4 million companies decreasing. The share of small-scale manufacturing decreased from 31% in 2015-16 to 27.4% in 2022-23.

The slowdown in the manufacturing industry has been a long-standing blow to the Indian economy. A series of events such as demonetization, GST introduction, and the pandemic have been the main factors behind the significant decline.

According to the plan prepared by the Airports Authority of India, India is planning to double the number of airports to over 300 by 2047, as reported by the Mint newspaper, in anticipation of an eightfold increase in passenger numbers. The plan includes developing existing runways into full-fledged airports and constructing new airports from scratch.

The annual air passenger traffic is expected to increase from 300.76 million in 2047 to 3 to 3.5 billion, of which 10-12% could be international. The low penetration rate of air tickets, rising income levels, and improved connectivity to new destinations will be important growth drivers for the aviation industry.

According to reports by the Economic Times, consumer goods manufacturers are once again focusing on India's rural areas by launching low-priced packs and strengthening distribution and product lineup in rural grocery stores. Companies like ITC, Dabur, Marico, Britannia, Parle Products, Emami, and Hindustan Unilever, which had been focusing on premiumization for the past 2 years, are now taking a contrasting approach.

FMCG companies are expecting policy measures in the budget to strengthen the recovery of demand in India's rural areas and improve rural income due to expectations of a good monsoon season.

According to Business Standard, the cumulative valuation of the top 100 real estate developers in India has increased by 70% in the 12 months ending in May. According to the 2024 GROHE-Hurun India Real Estate 100 report, the valuation of these companies has increased in 86 companies, reaching a total of 0.62 billion rupees. Currently, the total valuation of the top 100 real estate companies in India is 1.42 billion rupees.

The real estate sector in India, which has been struggling for several years, is outpacing China in terms of growth rate. This is also reflected in the strong performance of the S&P BSE Real Estate Index, which has shown a growth of 110% in the past 12 months.

According to provisional data cited by Mint, India is estimated to have created 1.89 million jobs from 2019-20 to 2023-24, significantly surpassing the increase of 76.8 million people from 2005-06 to 2019-20. In 2023-24 alone, India is estimated to add 46.7 million jobs.

This employment data set has caused a significant shock among economists tracking the Indian economy.

The decision by the state of Uttar Pradesh to provide preferential treatment to hybrid cars has perplexed electric vehicle manufacturers. This has caused a division in the industry between manufacturers that rely on pure electric vehicles, such as Tata Motors, and those that prefer a hybrid approach, such as Toyota and Suzuki.

India's electric car market may follow the global trend of slowing sales after the euphoria of 2023. However, if other states follow Uttar Pradesh in exempting registration fees and significantly reducing initial purchase costs, there is potential for a recovery in hybrid car sales in India.