ONTENTS

Topic Page No.

1 Global……………………………………. 1

2 India Inc..…………………………………. 2
3 Govt. Policies……………………………... 3
4 Start-Ups…………………………………. 4
5 Global Indices……………………………. 5
6 Equities…………………………………… 6
7 Nifty50…………………………………… 7
8 Sector Updates…………………………… 8
9 IPO……………………………………….. 11
10 Fixed Income…………………………….... 12
11 Risk……………………………………….. 13
12 Derivatives………………………………... 14
13 Commodities……………………………… 15
14 Currency………………………………….. 16
15 Other Asset Classes………………………. 17
16 AMC……………………………………… 18
17 Mergers and Acquisitions….……………… 19
18 Strategy…………………………………... 20
19 Marketing and Branding…………………. 21
20 Opinion Poll………………………………. 22
 LOBAL
Changing the Chip Industry!
With the ongoing trade moves between
the U.S. & China, the latter has banned
the product of Micron Technology, citing
national security risks. This move has forced major
Chinese companies to seek alternative memory chip
suppliers, creating a geopolitical impact. With
Micron's ban, Korean companies Samsung and SK
Hynix, the other top memory chip manufacturers
globally, have an opportunity to expand their
market presence. A large market lacking large-
scale competition should be an easy contest for the
Korean duo. Well, that's not the case. The two
companies are in a tight corner as the trade conflict
between the U.S. and China puts South Korea’s
technology firms at the center. Conversely, China
may turn to domestic alternatives like Yangtze
Memory Technologies and ChangXin Memory
Technologies to enhance its technological
capabilities. Amidst the escalating trade tensions
and geopolitical shift, a question arises: how will the
interplay between national security concerns, market
competition, and technological self-reliance shape
the future landscape of the chip industry?
Germany’s Inflation to Recession
In the first quarter of 2023, the German
economy experienced a setback and
stepped into a recession after contracting by 0.3%
over the prior three months. This is the second
consecutive quarter of contraction after the fourth
quarter of 2022 had a fall of 0.5%.
Who is to be blamed for this? Firstly, inflation led to
a decline of 1.2% in household spending along with
a substantial decline of 4.9% in government
spending. Despite the positive contributions from
increased investment in machinery, equipment, and
construction, as well as a rise in exports, the
economic recovery was insufficient to pull the
country out of the recessionary zone. Although there
are prospects of recovery in the second half of the
year, will Germany be able to tackle the several
challenges that loom over the economy? These
include a decline in purchasing power, weakened
industrial order books, tightening monetary policies,
and an anticipated slowdown in the US economy.
01
Global Markets Brace for Debt Crisis?
As the US debt limit standoff continues
to intensify, concerns over its financial
implications grow among world leaders. The
potential impact on global markets and economies
looms large, prompting central bank officials and
finance ministers to monitor the situation closely.
What would happen if the debt ceiling is not
raised? One likely consequence would be a
downgrade of US credit ratings, triggering a
severe financial crisis, leading to increased
borrowing costs, market volatility, and a loss of
confidence in the US dollar as a stable reserve
currency. Investors worldwide have long considered
US government debt a safe-haven asset, but a
failure to pay interest on its debts on time will cause
market turmoil. Amidst this scenario, world leaders
urge US policymakers to swiftly resolve the impasse
and raise the debt limit to avoid a catastrophic
financial fallout. The outcome of this standoff carries
enormous weight, as it not only shapes the economic
future of the United States but also has far-reaching
implications for the global financial landscape.
Britain’s Recession Spoiler!
The British economy is poised to dodge
a recession, but there is something to
be worried about - Inflation. The domestic demand
had proven more resilient than anticipated in the
face of the surge in energy costs caused by the
pandemic coupled with Russia’s invasion of Ukraine.
It was observed that the IMF had revised its growth
projection, now foreseeing a 0.4% expansion, up
from a 0.3% decline. However, inflation remains at
a higher end and is not expected to return to the
Bank of England's 2% target before mid-2025.
The Bank of England, like other central banks, has
responded by aggressively raising interest rates
over the past year and a half after continuous
inflationary pressures caused inflation to drop below
10% for the first time since August. But amidst these,
one cannot overlook the current government’s move
to restore credibility after the "stress episode," which
was initiated by the significant tax cuts by the
previous government.
 NDIA INC.
Aquatic Allies: India-Israel Water Nexus
Sustainable management solutions for
India's water sector is crucial, considering
the looming threats of droughts and floods. A
significant milestone has been achieved with the
establishment of the India-Israel Centre of Water
Technology (CoWT), a collaborative partnership
between the Indian Institute of Technology (IIT)
Madras and Israel. This center aims to leverage
Israel's renowned expertise in water management to
develop tailored solutions for India's water needs
while working on sustainable management solutions.
The collaboration holds great promise in supporting
the success of India's "AMRUT" Mission, led by the
Ministry of Housing and Urban Affairs (MoHUA).
Bringing together experts from both nations, the
CoWT will serve as a platform for comprehensive
discussions and consultations on various water-
related topics, wastewater management, and
exploration of potential areas for intervention. This
alliance also stands as a testament to both countries’
commitment to promoting sustainable management
practices.
Supercomputing Weather Wizardry Unleashed
Union Minister of Earth Sciences, Kiren Rijiju,
announced the acquisition of a new
supercomputer, named 'Mihir,’ by the National Centre
for Medium Range Weather Forecasting (NCMRWF) in
Noida. The supercomputer, costing ₹900cr, boasts a
computational power of 2.8 petaflops. As per the
ministry's decision, NCMRWF will receive eight
petaflops of supercomputing power, while the
remaining 10 petaflops will be allocated to the Pune-
based Indian Institute of Tropical Meteorology (IITM).
The allocation of higher supercomputing power to IITM
stems from its requirement to handle seasonal weather
forecasts, while NCMRWF specializes in medium-range
forecasts spanning three to seven days in advance. This
high-power computer facility is anticipated to enhance
block-level weather forecasts, enabling weather
scientists to offer more precise resolutions and forecast
ranges for phenomena like cyclones, ocean states, and
marine water quality with heightened accuracy. The
introduction of the new supercomputer aims to refine
the existing 12km resolution forecasts to a more
detailed 6km resolution, ultimately aiming for one-
kilometer resolution forecasts.
02
AI Gold Rush: Investors Embrace Growth
Investors are witnessing significant growth
potential in the AI sector, as evident from
US Venture Capitalists (VCs) who appear to
disregard the financing winter in this particular
industry. There has been a ~44% increase in
investments in 2023 compared to 2022. The
enthusiasm surrounding Generative AI, triggered by
the release of ChatGPT and similar software, is
fueling a funding race in the US, resulting in soaring
valuations. Recent data reveals that over $13bn was
invested in AI startups in the US during January-
March 2023, as opposed to $9bn in the same
period in 2022. Homegrown startups, particularly
those centered around Computer Vision, such as Mad
Street Den, LightMetrics, and Entropik, have secured
a significant portion of the capital deployed this
year. Despite some startups raising relatively
modest amounts, these indicators strongly suggest
that AI will thrive as the funding landscape evolves.
Defense Going “AATMNIRBHAR”
India is one of the largest importers of
arms globally. Now, the Indian government
wants to reduce dependence on military imports
and support domestic defense manufacturing.
Seems interesting, but how do we go about doing
it? To address this, the government launched the
Positive Indigenisation List (PIL), which consists of
items that can only be procured by the Indian
armed forces from domestic manufacturers.
Recently, the government released its fourth
Positive Indigenisation List (PIL) of 928
strategically-important line replacement units/sub-
systems/spares and components, including high-end
materials and spares, with import substitution value
worth ₹715cr. The Defence Public Sector
Undertakings (DPSUs) will be undertaking the
whole indigenization process and have already
started working on the list and are expected to
initiate procurement of these items from domestic
manufacturers soon. As a result, it will promote
domestic demand and create a lot of room in the
market for new domestic players. It’s too early to
predict how this will work in the long run. Still, it is
clear that the Indian government's decision to go
“Atmanirbhar” will positively impact the Indian
economy.
 OVT. POLICIES
Taxing Travel: India's TCS Surprise
The Ministry of Finance announced a 20%
Tax Collection at Source (TCS) rate on
international card usage with effect from July 1,
2023. This will be applicable on overseas tour
packages, and funds remitted under LRS (other than
for education and medical purposes).
So, the next time when someone spends, the tax will
be collected at the time of the spending and will be
adjusted against the actual tax that is to be paid
by the individual and can be claimed as a refund
only after the end of the financial year - TCS payee
can claim credit and adjust it against his/her IT or
advance tax liability. Now, let’s look at how this will
impact the business ecosystem. Indian startups and
businesses that allow their employees to use
corporate credit cards for business and international
travel expenses coupled with other foreign spends
like subscriptions will see a spike in their costs and
possibly face a short-term cash flow crunch.
Drafts Schemes for Cabs and Deliveries!
The Delhi Government has approved a policy draft
named ‘Delhi Motor Vehicle Aggregator and
Delivery Services Provider Scheme’ for cab
aggregators and delivery services to ensure the
safety and security of end consumers. The policy
draft includes key features such as mandatory panic
buttons in taxis, integration with emergency number
112, and prompt redressal of user grievances. The
policy also emphasizes legalizing EV bike taxis and
transitioning from oil-powered cabs to EVs.
Furthermore, the scheme involves the fitness of
vehicles, pollution control, and validity of permits
while monitoring driver performance in case of non-
compliance with required standards.
Another highlight was that the Delhi Government
legalized bike taxi aggregators, including Ola,
Uber, and Rapido, which were earlier banned. It
was observed that the scheme aims to regulate cab
aggregators and delivery services and mandates a
phased transition to EVs, among other regulations.
The policy draft has been put in the public domain,
and the Government is seeking public feedback and
suggestions.
03
New Green Hydrogen Policy on Cards
A Green Hydrogen Policy!
Seems interesting; let us understand this.
India is committed to an ambitious target
of achieving net zero by the year 2070. This shows
a clear sign of India's commitment to addressing
climate change. The Himachal government took a
major step by implementing a “green hydrogen”
policy. This policy aims to promote the use of green
hydrogen and establish the state as a leading hub
for its production by attracting large-scale
investment in renewable energy projects. The state is
an ideal location for generating green hydrogen
with abundant renewable energy resources,
including ample sunlight, water, and wind. To speed
things up, the government has signed a memorandum
of understanding with Oil India Limited to produce
green hydrogen and ammonia on a beta basis.
Moreover, the National Hydroelectric Power
Corporation (NHPC) is also setting up a Green
Hydrogen Mobility Project in the Chamba district on
a pilot basis.
PLI Scheme For IT
The Central government has approved the
Production Linked Incentive Scheme 2.0 for IT
Hardware with a budgetary outlay of ₹17,000cr
with a tenure of 6 years. India's electronics
manufacturing sector has shown a remarkable run
over the years, growing at a CAGR of 17% over
the past 8 years, crossing a major milestone of ₹9
lakh crore production this year. The primary
objective is to attract big global IT hardware
manufacturers to shift their production base to
India. The scheme for IT hardware will cover
laptops, tablets, all-in-one PCs, servers, and ultra-
small form factors. The Ministry has stated that this
scheme is expected to elevate the incremental
production of ₹2,430cr, creating employment for
75,000 people. The previous PLI scheme was an
outperformer and has set a high benchmark. This
new scheme is set to boost the local production of
laptops, servers, and personal computers, among
other IT hardware products.
 TART-UPs st th
Major Funding Raised by Startups for the Period 01 May'23 to 27 May’23
250 ($ Million)

100

52
45
40
28 28
20 19 16 14 11 10
Source: Entrackr
106 start-ups received approximately $882.6mn of funding. The funding fell below the $1bn mark. Will
A total of 84 start-ups raised approximately $910mn this month. Bengaluru-based startups top the list inthe
funding scene in India continue to plummet?
acquiring funds, followed by Mumbai. Fintech, e-commerce, and AI have been the most prominent sectors
regarding the number of deals as start-ups.
KiarX: Revolutionizing Mine Management Empowering Payments for GenZ
Mine management through a single app? The buy-now-pay-later market
Well, it's possible - KiarX has decided to is going through an uncertain time.
address the critical challenges being faced by Problems with the BNPL leader, ZEST Money, have
mining companies since 2020. Using advanced raised concerns among investors regarding this
technologies such as AI, ML, and IoT, KiarX brings all market. One such start-up, Snapmint, has entered
the mining business components into a single app this space and aims to democratize online
and website. Leveraging its approach of combining installment payments by addressing limited
cutting-edge technology with deep domain affordability and rigid payment options.
expertise, it has created a moat around its business. Snapmint primarily focuses on the GenZ segment
Apart from this, KiarX secured its seed funding round while providing 0% EMI purchases using minimum
of $0.15mn, which will be used for marketing, team documentation and leveraging technology. It offers
expansion, and product development. various payment options like debit cards, UPI, or net
KiarX's innovative products offer several features, banking other than the usual credit card system.
including live mines report, inventory management, Furthermore, what sets Snapmint apart is that it
and diesel management, to name a few. allows customers to avail of the EMI option without
By addressing these industry challenges, KiarX drives having a credit score with a 2-minute approval
positive economic changes, improving efficiency, process. Therefore, by democratizing access to
minimizing environmental impact, and contributing to installment payment plans, Snapmint promotes
job creation in the mining sector. financial inclusion and stimulates economic growth.
Transforming Sustainable Packaging
With a lack of viable alternatives, farmers often end up burning stubble to prepare their land
for their next harvest. The Faridabad-based B2B startup, Dharaksha, addresses this issue by providing an
economically viable solution to the farmers and aims to curb over 23mn tonnes of stubble waste going
forward. The company tackles the problem of agricultural waste by employing an innovative technology
that efficiently converts crop residues like wheat straw into eco-friendly packaging materials. It procures
stubble from the farmers via a network of aggregators who do the bailing work.
Dharaksha is poised to transform the market by promoting environmentally responsible packaging practices.
The clients range from white goods companies and FMCG to even pottery companies. Dharaksha works with
several brands like The Gourmet Jar, BioQ, Fyllo, Kyari, Son of Soil, Bonomi, V-Guard, and Havells.

04
15,000
LOBAL INDICES
NASDAQ 100 (in USD) Nikkei225 (in JPY)
31,500

14,000
30,500

13,000 29,500

7.7% 28,500
6.1%
12,000
1-May 6-May 11-May 16-May 21-May 26-May 31-May 1-May 6-May 11-May 16-May 21-May 26-May 31-May

The index initially saw a moderate increase,
followed by a sharp rise fueled by strong demand
for tech stocks. This was accompanied by Google's
introduction of advanced AI features in its core
search product. Despite a rebound in treasury
yields, tech stocks remained resilient, and investors
redirected their attention to mega-cap stocks amidst
U.S. debt ceiling negotiations, contributing to further
rise.
16,500 DAX Performance Index (in EUR)
Nikkei225 witnessed an upward movement reaching an
18-month high. Key tailwinds include upbeat corporate
reports and a weaker Yen. Favorable valuations and
loose monetary policy also supported the movement.
Moreover, optimism about the US avoiding default and
a strong performance by electronics makers and
service-sector firms further boosted investor sentiment.
FTSE100 Index (in GBP)
8,100
7,800

16,000
7,500

15,500
4.2%
0.4%
7,200
2-May 7-May 12-May 17-May 22-May 27-May

15,000 The index has exhibited a fluctuating pattern,

2-May 7-May 12-May 17-May 22-May 27-May
predominantly leaning towards a downward
The DAX index had a volatile month, with a notable
trajectory. The upturn was driven by a temporary
uptrend followed by a crash. Anticipation of
stabilization of the global banking system.
increased corporate earnings accompanied by
However, a strengthened pound, concerns
positive sentiment surrounding the prospects of a
regarding the Bank of England and European
debt ceiling agreement in the US led to an uptrend.
Central Bank to implement additional measures in
However, the index slipped as German industrial
response to heightened inflationary pressures, and
production fell partly due to weak performance by
the U.S. debt ceiling led to a downward movement.
the automotive sector, intensifying recession fears.
KOSPI (in WON)
21,000 Hang Seng Index (in HKD) 2,700

20,000 2,600
8.5%
19,000 2,500
2.1%
18,000 2,400
2-May 7-May 12-May 17-May 22-May 27-May 2-May 7-May 12-May 17-May 22-May 27-May
The Hang Seng index rose slightly in the first week
due to decreasing expectations of a June Fed rate The KOSPI index witnessed an upward movement
hike accompanied by a rise in healthcare and primarily driven by South Korean shipbuilders post a
energy stocks. However, later it experienced a fall in the first half of the month. Despite uncertainties,
decline as concerns about economic growth foreign investors' relentless interest in South Korean
weighed, particularly in light of Hong Kong's GDP stocks, especially semiconductors, led to a further
numbers with weak Chinese economic data increase. Technology, oil, and chemical companies
dampening the reopening-led recovery hopes. experienced losses. However, this decline was offset by
Source: Investing support from automobile producers.
05
 QUITIES
FII Net Investment in May’23 (₹ Crores) DII Net Investment in May’23 (₹ Crores)
4000 2,000

3000 1,500

2000 1,000

1000 500

-1000 -500

-2000 -1,000

-3000 -1,500

-4000 -2,000
2-May 7-May 12-May 17-May 22-May 27-May 2-May 7-May 12-May 17-May 22-May 27-May
Source: NSDL Source: NSDL

Amidst signs of an impending peak of an interest rate hike in the US, India's robust economic growth has
attracted significant FII investment in May, amassing a net position of ₹27,856.48cr. Conversely, DIIs
divested ₹3,306.35cr owing to unfavorable governmental policy developments, particularly in anticipation
of imminent elections.
Brokers Battle: Traditional vs. Discount
Traditional broker or discount broker? Who is better? After the pandemic, why has there been a sudden
surge in the demand for discount brokers? What is SEBI doing about them? Let’s take a look!
Discount brokers have been observed to have disrupted the traditional brokerage industry by providing
fast, cutting-edge technology at a lower cost. However, traditional brokers still play a crucial role in the
ecosystem by providing comprehensive services like asset management, retirement planning, advisory
services, etc., apart from regular buying and selling activities. Now, SEBI is into the picture with its
regulatory changes – mandating brokers to separate advisory services from the broking business,
implement risk management policies, and increase disclosure requirements. This may lead to a spike in
compliance costs for discount brokers and lure investors into traditional brokers, primarily because of their
advisory services and investment ideas.

2nd May’23 31st May’23

Index Change (%) Trend
(In ₹) (In ₹)
NIFTY Auto 13,283 14,199 6.9
NIFTY Bank 43,352 44,128 1.8
NIFTY Consumer Durables 24,351 26,083 7.1
NIFTY Financial Services 19,208 19,446 1.2
NIFTY FMCG 47,750 51,043 6.9
NIFTY IT 28,025 29,320 4.6
NIFTY Media 1,723 1,756 1.9
NIFTY Metal 5,882 5,890 0.1
NIFTY Oil & Gas 7,578 7,432 2.0
NIFTY Pharma 12,590 12,678 0.7
Source: NSE

06
 IFTY50 NIFTY50 May’23 (In ₹)
18,800

18,400

18,000
2.1%
17,600
2-May 7-May 12-May 17-May 22-May 27-May
Source: NSE India

Nifty 50 concluded the month on a robust note, buoyed by optimistic sentiments surrounding the release of
FY23's Indian GDP figures, which are expected to exceed the forecasted growth rate. The benchmark will
be significantly influenced by the US's agreement to raise the debt ceiling in the coming weeks.

Wipro partnering with Google? Reliance Sets Sight on Diesel Market

Leveraging technology to enhance Reliance Industries, the world’s largest
refining complex operator, has launched
customer experience is the leading objective
premium diesel at rates less than the public sector
of all businesses, and Wipro is no exception - (PSU) competitors. The fuel retailing joint venture of
Wipro FullStride Cloud Studio partners with Google Reliance Industries Ltd and UK's bp Plc -- Jio-bp --
Cloud's RaMP. This partnership aims to help has followed the low pricing strategy to disrupt the
businesses tackle unique industry challenges while market. The company launched an additive-laced
also improving common enterprise functions, premium diesel mixed with detergents and
including consumer experiences, marketing, supply
dispersants at ₹1 cheaper per liter than gasoil sold
chain performance, and financial modeling, to name by PSUs. This seemingly minor price cut will lead to
a few. Wipro will also train 20,000 associates on
annual savings of up to ₹1.1 lakh per vehicle for
Google Cloud’s generative AI technologies to drive truckers, along with providing fuel efficiency.
AI-led transformations at scale. Moreover, for this Earlier, it was observed that Jio-bp used to export
project, Wipro will integrate its proven framework, to other countries at a higher rate than PSUs, thus
together with AI and automated tooling, into RaMP, enjoying high-profit margins. However, diesel
providing up to 5x faster Cloud adoption at 30% margins have fallen substantially following Russia's
lower cost, 90% automated post-migration invasion of Ukraine, making local sales economically
activities, and 3x faster business acceptance. feasible.
Top Gainers|NIFTY50 |May’23 Top Losers |NIFTY50 |May’23
Company Name Change (%) Company Name Change (%)
Adani Enterprise 29.5% Dr Reddys Laboratories -8.7%
HDFC Life 11.8% UPL -7.5%
IndusInd Bank 11.6% Hindalco -6.9%
Bajaj Finance 11.3% Larsen -6.7%
Eicher Motors 11.2% HDFC -4.9%
Asian Paints 10.0% JSW Steel -4.0%
Maruti Suzuki 9.1% ONGC -2.6%
Tech Mahindra 9.0% Tata Steel -2.0%
HUL 8.6% Power Grid Corp -1.4%
Tata Motors 8.5% Sun Pharma -1.3%
Source: NSE India

07
 ECTOR UPDATES
Pharma Sector
Despite a significant increase in their
quarterly bottom line figures, pharmaceutical
giants Gland, Ipca Laboratories, and Dr. Reddy's
Laboratories witnessed a sharp decline in their
share prices, leading to a negative impact on the
Nifty Pharma index in the middle of the month.
However, the decline was soon made up when
Sanofi India, Glenmark Pharma, and Lupin
emerged as the top performers in the sector,
gaining double digits. The top gainer in this sector
was Lupin observing a growth of 13.39%.
NIFTY Pharma May’23 (In ₹)
13,000
7,800
Oil and Gas Sector
The sector kicked off the month on a positive
trajectory, driven by increasing demand in
countries such as the USA and China. This was
complemented by tighter supplies and a favorable
forecast for higher global demand by the International
Energy Agency (IEA). However, towards the end of the
month, oil futures experienced a slight decline. This was
due to weaker-than-expected economic data, including
lower industrial output and retail sales growth in China,
which counteracted the positive outlook provided by
the IEA's forecast of increased global demand.
NIFTY Oil & Gas May’23 (In ₹)

12,500
7,600

12,000
0.7% 7,400
1.9%
11,500
02-May 08-May 12-May 18-May 24-May 30-May 7,200
02-May 08-May 12-May 18-May 24-May 30-May
Source: NSE
Source: NSE

FMCG Sector Consumer Durables Sector

The FMCG sector has shown signs of a
revival returning to its normal growth cycle.
The sector's positive performance was driven by
volume growth, margin improvement, and a
rebound in rural sales. Overall, it was a successful
month for the sector. Varun Beverages emerged as
the top gainer, experiencing 17.25% growth, while
Procter & Gamble was the top loser, incurring a
relatively modest loss of -3.39% indicating
resilience and potential for further growth in the
FMCG sector.
NIFTY FMCG May’23 (In ₹)
52,000
The Consumer Durables sector had a positive
month, having successfully recovered from
the dip observed in AC sales during April in May.
Havells, a heavyweight player in the index,
announced an aggressive pricing strategy aimed at
gaining a larger market share. A majority (65%) of
the stocks in the Consumer Durables sector witnessed
growth during the month, with Dixon Technologies
gaining 33.05%. This indicates the sector's ability to
adapt and capitalize on consumer needs, resulting
in overall positive performance.
NIFTY Consumer Durables May’23 (In ₹)

26,500

50,000

25,500

48,000

6.9% 24,500

46,000
02-May 07-May 12-May 17-May 22-May 27-May
7.1%
23,500
Source: NSE
02-May 07-May 12-May 17-May 22-May 27-May

Source: NSE

08
 ECTOR UPDATES
Telecom Sector
BSNL is gaining stability in the market with
recent operating profits. Jio is reportedly in
talks with Tesla to establish a captive private
network for the automaker. Telecom operators are
implementing strategies like blocking incoming calls
after pack expiration and limiting data top-ups in
voice plan validity to boost average revenue per
user (ARPU) without an increase in tariff. Vodafone
Idea had a strong month gaining 12.56%, followed
by Bharti Airtel gaining 8.51%.
Addition During March’23 (Lakhs)
Media Sector
The media sector experienced significant
growth in the recent month, which can be
attributed to several factors. JioCinema will now
introduce a premium subscription for accessing HBO
and other content. The viewership of IPL TV
witnessed a rise, with 451mn unique audiences. The
CEO of Sony expressed expectations of the Sony-
Zee merger to be finalized by September.
Additionally, Zee Media has obtained board
approval to bid for Reliance Broadcast Network
Limited TV18 Broadcast was the top gainer,
gaining 16.03%, and the top loser was Dish TV at -
8.97%.
NIFTY Media May’23 (in ₹)
1,800

1.9%
1,750
10.4 30.5
-12.1

1,700

Airtel Jio Vodafone 1,650

02-May 07-May 12-May 17-May 22-May 27-May
Source: TRAI
Source: NSE
Auto Sector
IT Sector
May was a stellar month for the Auto sector The Indian IT sector witnessed a gradual
as nearly all stocks recorded gains, except recovery this month following the Infosys fiasco
Bharat Forge and Bosch experienced a modest decline. and experienced remarkable growth. Notably, all
Many stocks within the sector saw double-digit growth, stocks ended on a positive note. Coforge and
with TVS Motor Company gaining 14.45% as the top LTIMINDTREE Ltd emerged as the top gainers,
gainer. The industry attracted a net flow of $572mn, experiencing significant rises of 10.28% and
the highest fortnightly inflow in over four years, taking 9.90%, respectively. Infosys celebrated a strategic
milestone by being selected as the primary
the total sectoral inflow to $1.2bn since April.
application services partner for integrated energy
Automakers' emphasis on cost control increased
company BP. This indicates a positive turn for Infosys
margins, reaching new highs. and reflects the sector's resilience in overcoming
challenges.
NIFTY Auto May’23 (In ₹) NIFTY IT May’23 (In ₹)
30,000
15,000

29,000
14,000

28,000
13,000
4.2%
6.9% 27,000
12,000 02-May 07-May 12-May 17-May 22-May 27-May
02-May 07-May 12-May 17-May 22-May 27-May
Source: NSE
Source: NSE

09
 ECTOR UPDATES
Financial Services Sector
Nifty Financial Services experienced a month
of high volatility but concluded on a positive
note. The volatility can be attributed to the recent
TER changes because it leads to lower charges
which is the revenue source of the asset
management ecosystem. Major AMCs such as HDFC
will take the full brunt of these changes. The top
gainer was Cholamandalam Investment & Finance
Company Ltd, with a 20.64% gain, and Housing
Development Finance was the top loser, with a
4.87% loss.
NIFTY Financial Services May’23 (In ₹)
20,000
Banking Sector
The Indian banking sector has been
resilient amid the banking crisis globally,
especially in the US, by being at a record high. The
US dollar's retracement from record highs, along
with ongoing purchasing by foreign institutional
investors (FIIs), has helped India's banking sector
outperform other categories in recent sessions. This
expansion and demand will fuel credit growth in
Indian banks, allowing Bank Nifty to continue its
upward path. The top gainer was AU Small Finance
Bank (17.03%), and Federal Bank (-7.19%) was
the top loser.
NIFTY Bank May’23 (In ₹)
46,000

19,500
44,000

19,000
42,000

1.2% 1.8%
18,500
40,000
02-May 07-May 12-May 17-May 22-May 27-May
02-May 07-May 12-May 17-May 22-May 27-May
Source: NSE Source: NSE

Realty Sector Metal Sector

The realty sector observed a volatile trend
because of rising interest rates, tech MNCs (accounts for
the majority demand) hiring slowdown, and delayed
implementation of the DESH bill, which sought to
decrease vacancy in estates. The real estate sector's
performance was also driven by significant sales made
by real estate developers in the March quarter of FY
2022-23, which established the chart's uptrend. The top
gainer was heavyweight Sobha Ltd., while the top loser
was Indiabulls Real Estate Ltd., with 13.54% and -
7.62% movements, respectively.
NIFTY Realty May’23 (In ₹)
520
India's mining and metals industry recovered
and expanded steadily, with businesses like
Hindalco and JSW Steel reporting significant revenue
increases in Q4FY23. The government's focus on
increasing domestic production of metals and the push
towards infrastructure development are expected to
drive demand for metals in the medium to long term.
Additionally, the sector is expected to benefit from the
recent increase in import duties on certain metals.
Welspun Corp, Adani Enterprises drove the sector
upwards with over 20% rise in the month.
NIFTY Metal May’23 (In ₹)

6,100

480
5,900

440
5,700
0.1%
7.6%
400 5,500
02-May 07-May 12-May 17-May 22-May 27-May 02-May 07-May 12-May 17-May 22-May 27-May
Source: NSE Source: NSE

10
 PO
JSW Infrastructure: Ports to Profits?
JSW Infrastructure, part of a
multinational conglomerate - JSW Group is poised
to make its debut in the capital market filing for a
₹2,800cr fresh issue. Renowned for its rapid growth
in cargo handling capacity and volumes, JSW stood
as India's second-largest commercial port operator
in terms of cargo handling capacity. It intends to
employ these funds primarily for debt repayment
and bolstering its business verticals. From the issue,
₹880cr will be channeled to JSW Dharamtar Port
and JSW Jaigarh Port, facilitating their debt
settlement. The company plans to invest ₹868cr in
the LPG Terminal project, ₹59cr in the electric
substation, and ₹103cr for the installation of a
dredger. Furthermore, JSW intends to use the issue
to fund the capital expenditure requirements. In
order to ensure substantial participation from
discerning market participants, it strategically
reserved 75% of the equity shares for qualified
institutional bidders and 15% for non-institutional
investors. In comparison, retail investors would
receive the remaining 10%.
Tata Play’s Confidential IPO
Tata Play's upcoming IPO in India breaks
new ground as it becomes the first to employ
confidential pre-filing, setting it apart from others
and piquing curiosity. The company is planning to
raise ₹3,000cr, which includes fresh and secondary
share sales. However, Tata Play has opted for
confidential pre-filing, where the details of the
preliminary documents are not shared with the
public, unlike the traditional IPO route. Moreover,
there is no pressure on the company to go for an
IPO. This confidentiality provides the company with
several advantages as it provides the flexibility to
adjust the issue size, the number of freshly issued
shares, or the offer for sale by existing
shareholders while safeguarding sensitive business
information, protecting it from premature
disclosure. This approach empowers Tata Play with
more control over the timing and details of its
public offering. With Tata Play employing
confidential pre-filing, other firms considering
public listings must assess the market's response to
determine the effectiveness of this approach.
11
Fin “care” for the Unbanked
Fincare Small Finance Bank, a
“digital-first” lender focusing on unbanked and
under-banked customers, primarily in rural and
semi-urban regions, has refiled with SEBI to raise
funds through an IPO. The IPO comprises a new
issuance of up to ₹625cr in equity shares with a
face value of ₹10 each, alongside an offer for
sale of up to 1.7cr equity shares. It plans to
optimize the funds in raising its Tier-I capital base
in order to satisfy its bank's future capital needs.
Since its establishment in 2017, the bank has
excelled in delivering low-cost banking services to
rural communities and aims to enhance banking
services for individuals, MSMEs, and unorganized
entities. With 15+ years of experience in
microloans, the bank aims to offer affordable
financial products and services through technology
and last-mile distribution. Observing the growth
trajectory of Fincare Small Finance Bank post-IPO
will be intriguing, as it competes in a dynamic
industry alongside established players.
Upcoming IPOs IPO Size (Approx.)
IKIO Lighting ₹607 Cr.
Oravel Stays Ltd. ₹7,000 Cr.
Aadhar Housing Finance ₹7,300 Cr.
One Mobikwik Systems Ltd. ₹1,900 Cr.
ideaForge’s Drones Set to Fly High
ideaForge, a leading company in the Indian
unmanned aircraft systems market, is set to
launch its IPO consisting of a fresh issuance of shares
valued at ₹300cr and an offer for sale of up to
48.69 lakh shares with a face value of ₹10 per
share. A portion of ₹50cr will be allocated toward
general corporate requirements and loan
repayments. Additionally, ₹135cr will be utilized
for working capital, while ₹40cr will be invested in
product development. ideaForge holds the
distinction of being the largest operational
deployment of indigenous unmanned aerial vehicles
being used for a variety of applications. An
average of one drone taking off every five minutes
makes the company a 50% market shareholder in
the industry. The global drone industry was
estimated at $21.1bn in CY22, growing at a CAGR
of 20%.
 IXED INCOME
US 10 Year Treasury Yield May’23 (In %)
4.0
3.6
3.2
2.1%
2.8
1-May 6-May 11-May 16-May 21-May 26-May
Source: US Department of the Treasury
The US 10-Year Treasury Yield initially faced a
decline but swiftly rebounded, surging to its highest
level since March at 3.69%. This upward movement
is viewed as an effort to counter the looming
recession. Apprehensive about potential defaults,
money market fund managers have been steering
clear of Treasury bills with upcoming maturities.
Consequently, prices have dipped, causing yields to
rise. However, the likelihood of a prolonged failure
by the United States to meet its financial obligations
is considered extremely low. While concerns persist,
the surge reflects the market's cautious response to
recessionary pressures as participants seek to
balance risk and anticipate economic stability.
Insurers Embrace Bond Market
In India, there has been a remarkable surge in the
trading of government securities (G-Sec) STRIPS.
The face value of STRIPS trades has skyrocketed by
661.5%, reaching ₹1.34 lakh crore in FY23 from
₹17,659.46cr in FY19. This surge can be attributed
to insurance firms' focus on providing long-term
income-related plans, where investors receive
guaranteed returns over an extended period. To
meet these obligations, insurers sought long-term
assets with minimal or no reinvestment risk. This is
where STRIPS come into play, as they offer a long-
term asset without reinvestment risk, allowing
insurers to manage long-term commitments
efficiently. Because there is no need to manage
intermediate cash flows, such a facility benefits
insurance businesses, who must manage long-term
commitments with dexterity. By embracing the
potential of the bond market and diversifying
investment strategies, insurers not only explore new
growth opportunities but also enhance the stability
of their investment portfolios.
12
IRDAI Boosts Surety Insurance
The Insurance Regulatory and Development Authority
of India (IRDAI) has taken a significant step to
promote the growth of the surety insurance market
by relaxing norms for 'surety bonds.' These bonds
serve as insurance policies that safeguard the parties
involved in a transaction or contract against potential
financial losses arising from breaches or non-
31-May
performance. In a move to expand the availability
of such products, IRDAI has reduced the solvency
requirement for surety bonds from 1.875 times to 1.5
times. Additionally, the exposure limit of 30% on
each contract underwritten by insurers has been
removed too. These changes aim to meet the
increasing demand for surety insurance across
various sectors of the economy, particularly in
infrastructure development. This move is expected to
enhance contractors' liquidity and significantly boost
the infrastructure sector. The revised norms not only
increase the accessibility of surety insurance products
but also create opportunities for more insurers to
participate in this promising domain.
April’s Inflation Story
India's annual inflation rate experienced
a significant slowdown in April 2023, dropping to
4.7%. The decline was primarily driven by lower
food inflation, which stood at 3.84%, driven by
reduced prices for vegetables, oils, fats, and meat,
partially offsetting the increased costs of cereals,
milk, and spices. This decline in inflation can be
attributed to a high base effect and the cooling of
commodity prices, which also influenced a decrease
in the Wholesale Price Index (WPI).
The RBI anticipates CPI inflation will reduce this fiscal
year and forecasts FY24 inflation at 5.2%.
Month Inflation (%)
November’22 5.72
December’22 6.50
January’23 6.52
February’23 6.44
March’23 5.66
April’23 4.70
Source: MOSPI
 ISK
Warning on Credit Crunch Risk
The Federal Reserve has issued a stark
warning, highlighting the potential risk of a
credit crunch, which could pose threats to the
stability of the financial system. The central bank of
the United States has expressed particular
apprehension regarding the rapid expansion of
corporate debt and the relaxation of lending
standards. As the threat of a potential U.S. default
looms over the economy, fears of reduced lending
by banks arise. The Treasury Secretary warned
that the United States could breach the debt ceiling
as early as June 1, resulting in an economic and
financial disaster. Officials in the Biden
administration have discussed invoking the US
Constitution's 14th amendment to allow the
government to continue issuing additional debt to
pay social security recipients, bondholders,
government employees, and others without
legislative consent. This Fed warning underscores
the importance of robust risk management to
safeguard financial stability. Consequently,
regulators and market participants are expected
to intensify their focus on monitoring corporate
debt levels and promoting responsible lending
practices to mitigate the risk of a credit crunch.
Tough Stance on Banks
Too-big-to-manage. What does that mean?
Let’s dive deeper! In response to recent bank
failures and concerns over risk management, the
Office of the Comptroller of the Currency (OCC) has
introduced a new policy targeting complex banks
with persistent weaknesses. The OCC's guidelines
primarily apply to banks with at least $50bn in
consolidated assets but can be extended to any
institution deemed sufficiently complex or risky. This
agency will focus on banks with weak management
ratings for several years, a history of poor risk
management, “too big to manage,” and those
subject to multiple enforcement actions in a three-
year period or failure to take corrective measures.
Penalties will be imposed on banks which show
continued shortcomings. In extreme cases, the OCC
could mandate the divestment of business lines or
exit certain markets. The OCC's policy reflects an
effort to address the rapid meltdowns of several
banks in recent months.
13
AI Integration: Efficiency vs. Systemic Risk
Gary Gensler, SEC Chair, has warned that
the utilization of AI by companies could
potentially trigger the next financial crisis, raising
concerns about the technology's widespread use and
its systemic risk. Banks and other financial institutions
have integrated AI into various operations,
streamlining tasks like customer evaluation and
transaction monitoring that are traditionally time-
consuming. Despite the potential efficiency
improvements, close scrutiny of these systems is
essential. The escalating concerns over an
overreliance on generative AI as the core
infrastructure for multiple fintech applications have
amplified fears among industry experts. While
proponents of AI argue that these systems can be
designed to avoid the unconscious biases present in
humans, regulators have repeatedly emphasized the
risk of unintentionally amplifying biases originating
from either the designers or the training data used.
Regulators have also suggested a threat of data
leaks if corporations keep using AI. Law enforcement
agencies have expressed their commitment to
addressing AI discrimination and bias in lending,
housing, and hiring domains.
India VIX May’23
14
13
12
0.6%
11
2-May 7-May 12-May 17-May 22-May 27-May
Source: NSE India
The Nifty VIX has continued to hover below the 13-
level, testing its pre-pandemic levels, as the Nifty
index gracefully maintained a range-bound
movement. Though the fear gauge increased
slightly mid-month, attributed to elections and US
debt concerns, the prevailing bullish sentiment has
overshadowed it, causing the VIX to rise to
dissipate. This suggests investors remain optimistic
about market conditions, resulting in a subdued
volatility index. However, such a low level of fear
barometer makes the market vulnerable to profit-
taking bouts.
 ERIVATIVES
Unleashing New Trading Opportunities
Brace yourself for exciting changes as the
BSE, the oldest stock exchange in India,
relaunched its Sensex and Bankex derivative
contracts. In a bid to enhance accessibility and
flexibility, BSE has reduced lot sizes and introduced
an overhauled expiry cycle for these derivative
contracts. The reduced lot sizes make it more
accessible for a broader range of participants to
engage in derivative trading, opening doors for
both experienced traders and newcomers to the
market. This move aims to increase liquidity and
improve overall market efficiency. The new expiry
cycle brings added convenience and flexibility,
aligning with global practices and providing traders
with more options to manage their positions
effectively. However, the potential rise in trading
frequency due to greater affordability highlights
concerns over higher market volatility. Since its
launch, BSE has seen a steady increase in turnover
and open interest in these derivative contracts. This
relaunch is set to ignite a surge in participation,
injecting fresh energy and making way for new
opportunities in the derivatives segment.
Financial Passports by SEBI
SEBI has granted a registered foreign portfolio
investors (FPIs) a passport to the coveted
Exchange Traded Commodity Derivatives (ETCDs)
market. Direct Market Access (DMA) allows a
broker's clients to directly contact the exchange
trading system via the broker's infrastructure to
place orders without the broker's manual
intervention. DMA offers brokers benefits such as
direct control over orders, faster order execution,
reduced risk of errors associated with manual order
entry, maintaining secrecy, lower impact costs for
large orders, and adopting better hedging and
arbitrage techniques. This permission is subject to
several requirements, including brokers adhering to
the DMA application procedure, operational
standards, client authorization, broker-client
agreement, risk management, etc. This decision
showcases a progressive approach toward
embracing global investors, positioning India as an
attractive destination for foreign portfolio investment
in the ever-evolving world of commodity derivatives.
14
Opacity Threatens EU Gas Derivatives Market
Since Russia's full-scale invasion of Ukraine,
more deals in Europe's €4trn natural gas
futures market have migrated off-exchange as
stressed corporations try to minimize trading
expenses. According to a report by the European
Securities and Markets Authority (ESMA), the share
of deals on the over-the-counter market increased
from 15% last summer to 27% this year, pushing
away from the regulated futures exchanges.
The report highlights potential risks arising from the
lack of visibility in this market, which could have
repercussions for both investors and consumers.
Margin payments, which exchanges require as
insurance to secure agreements, more than trebled
in 2022. As a result, many businesses were obliged
to draw on bank credit lines, seek emergency
financing, and conduct more trades privately,
where margin requirements are lower. While most
trades are still made on exchanges, the transition to
OTC serves as a wake-up call for regulators and
market participants to address the transparency
concerns in the EU gas derivatives market.
0DTE Options: A Same-Day Trading Rollercoaster
The world of derivatives trading is undergoing a
significant transformation as the frenzy for fast-
twitch stock options has taken hold on Wall Street.
However, the latest development that the market
must grapple with is the potential equity market
disruption.
The emergence of Zero Days to Expiration (0DTE)
options, which are options contracts that expire on
the same day they are traded, is causing
noticeable shifts in underlying asset behavior. The
S&P 500's daily volatility increased by nearly
14% as the traded volume of 0DTE options
increased by one standard deviation. 0DTE options
may attract short-term traders who are more prone
to participate in speculative trading activities,
resulting in less informative pricing and lower price
efficiency.
As 0DTE options continue to surge, the stock market
finds itself in uncharted territory. Striking a balance
between innovation and stability remains a
challenge, testing the resilience of financial
markets.
 OMMODITIES
Gold Spot Price (In ₹ per 10 grams)
62,000
61,000 0.4%
60,000
59,000
1-May 6-May 11-May 16-May 21-May 26-May
Source: MCX
Gold prices skyrocketed at the onset of May,
reaching a lifetime high of ₹61,490 per 10g.
This surge was prompted by the Federal Reserve's
indication of a possible pause in further interest rate
hikes. While the Fed did announce a 25 basis points
hike, aligning with market expectations, concerns
about inflation and the US debt situation led to a
weakening of the greenback.
The depreciation of the USD supported the strength
of gold, which had already been gaining due to its
status as a safe-haven asset. However, as the
worries about a potential US credit default
subdued, gold gradually lost some of its gains.
Nevertheless, gold has experienced increased
demand in domestic markets ever since the Reserve
Bank of India announced the ban on the ₹2,000
note.
India Bans Apple Imports!
To match the price of low-cost imported
apples, the price of domestic apples was
falling, forcing many farmers to switch to non-
agricultural sources of income. To address this issue
and support farmers, the agricultural ministry
banned the import of apples wherever the CIF
(cost, insurance, freight) import price is less than or
equal to ₹50 per kg, moving them from the free
to the prohibited category. This amendment comes
during a lean season for apples. This minimum
price condition is not applicable for imports from
Bhutan.
Meanwhile, imports of apples above ₹50 per kg
are allowed. However, this ban will affect many
countries, such as Brazil, UAE, Afghanistan, France,
Italy, Turkey, South Africa, and Poland.
15
Crude Oil Spot Price (In ₹ per barrel)
6,500
6,000
5,500
8.5%
5,000
31-May 1-May 6-May 11-May 16-May 21-May 26-May 31-May
Source: MCX
Oil prices fell sharply at the start of May,
as the uncertainty that the United States
will avoid a debt default loomed over the global
markets. However, the plunge was short-lived as the
concerns eventually wiped off with the raising of the
debt ceiling. The oil prices made short spikes
throughout the month as OPEC hinted at a possible
supply cut. Further, spikes were seen with the US
data pointing to the drop in inventory levels and
tightened fuel supply. Additionally, the lower-than-
ever demand rose marginally as the Indian
government slashed windfall gain tax for domestic
entities.
Crude Oil & Natural Gas Futures?
One of the world’s most traded commodity
derivatives contracts – The NYMEX WTI Crude Oil
and Natural Gas. This month, NSE has expanded its
product offering in the energy basket and the overall
commodity derivatives segment by launching the
rupee-denominated NYMEX WTI Crude Oil and
Natural Gas futures contracts. Apart from this, NSE
signed a data licensing agreement with CME Group,
allowing NSE to list, trade and settle rupee-
denominated NYMEX WTI Crude Oil and Natural
Gas derivatives contracts on its platform. These would
provide effective trading and hedging opportunities
to the market participants, with the availability of
key energy products on a single trading platform.
The overall commodity derivative market seems
lucrative, with foreign portfolio investors (FPIs) now
allowed to participate in cash-settled non-agricultural
commodity derivative contracts and indices.
 URRENCY US Dollar Index (USD) RBI Bids Adieu to ₹2000 Notes
105
Major news: withdrawal of all the ₹2000
104
notes from circulation; Pursuance of the
103 clean note policy. What happens next?
102
2.0% The RBI has decided to withdraw all ₹2000 notes in
101 circulation, but they remain legal tender. This
1/May 6/May 11/May 16/May 21/May 26/May 31/May
change might seem sudden. However, the printing
Source: Investing
of ₹2000 notes was stopped way back in 2018-
The US dollar Index throughout the initial days of
19, and the notes were printed primarily to meet
May persisted at the relatively low level of ~101, the nation’s currency requirements after the
primarily due to the looming threat of a credit crisis. demonetization of ₹500 and ₹1000 notes. But now,
However, constructive discussions regarding an with an adequate supply of notes in other
increase in the credit ceiling gradually instilled denominations, ₹2000 notes have served their
renewed confidence in the currency among purpose. Moreover, various steps are being taken
investors. However, despite a 25 basis points hike in to avoid disruption of regular activities of bank
interest rates, its impact on the upward momentum branches - the exchange of ₹2000 banknotes of
of the Index remained relatively insignificant. other denominations can be made up to a limit of
₹20,000 at a time at any bank.
Continued Upward Trajectory FOREX Reserve (USD Bn)
India's Foreign Exchange Reserves displayed a
5.2
continued upward trajectory in the first half of the 5.2
5.2
18.4
5.1
18.4 18.3
month, reaching closer to the significant milestone of 18.5

$600bn. The reserves neared their highest point in a 46.4

46.3 45.1
year, primarily attributed to the Reserve Bank of 45.7

India's proactive measures in building dollar

reserves. This move followed the previous utilization
of forex reserves as a means to maintain stability in 519.5 526.0 529.6 524.9

foreign exchange prices. However, during the third

week, a slight decline in reserves occurred due to
28-Apr 5-May 12-May 19-May
currency and gold price fluctuations. Foreign Currency Assets Gold SDRs Reserve Position in the IMF
Source: RBI

Currency 1st May’23 31st May’23 Change (%) Trend

INR/USD INR 81.7700 INR 82.6800 1.1

INR/EUR INR 89.7430 INR 88.3680 1.5
USD/EUR USD 1.0975 USD 1.0688 2.6
JPY/USD JPY 136.5300 JPY 139.3400 2.1
CAD/USD CAD 1.3542 CAD 1.3572 0.2
USD/GBP USD 1.2496 USD 1.2437 0.5
USD/SEK USD 0.0968 USD 0.0921 4.9
USD/CHF USD 1.1159 USD 1.0978 1.6
Source: Investing

16
 THER ASSET CLASSES
Uncertain Times - Multi-Asset the Solution?
In times of market uncertainty, investors often seek
strategies that can help mitigate risks and provide
stable returns. One such strategy gaining popularity
is investing in multi-asset mutual funds. These funds
offer a diversified approach by investing across
various asset classes like stocks, bonds, and
commodities. Diversification is a crucial benefit of
multi-asset funds. By spreading investments across
different asset classes, they can potentially reduce
the impact of volatility in any one sector or market.
The skill of professional fund managers who
actively manage dynamic allocations, allowing them
to react to changing economic conditions, is a
significant advantage of multi-asset funds. Over the
past five years, multi-asset funds have
demonstrated a notable performance, delivering an
impressive return of approximately 13%. In
comparison, the widely recognized Nifty 50 index
has provided a slightly lower return of 11.7%. The
consistent outperformance of multi-asset funds
highlights their ability to capitalize on opportunities
across different sectors and asset types, thereby
mitigating risk and maximizing returns.
No Leverage for AIFs
SEBI has unveiled a proposal to fortify
corporate governance rules within the
Alternative Investment Funds (AIFs) sector. According
to the proposal, Category I and Category II AIFs
should neither borrow funds directly or indirectly
nor use leverage to make investments. Category I
AIF invests in start-ups, venture capital, social
ventures, SMEs, infrastructure, etc., considered
socially/economically desirable by the government.
In contrast, Category II AIF includes private equity
and debt funds without specific regulatory
incentives. Subject to certain criteria, these AIFs may
borrow to cover a deficit in drawdown while
making an investment in an investee firm. Overall,
SEBI's decision is poised to elevate the AIF sector,
strengthening the corporate governance mechanism,
alongside positioning it as a reliable and secure
investment option. The strengthened rules will
benefit investors, market stability, and the long-term
growth of the AIF industry as a whole.
17
REITs: The Next Big Boom?
In the last few years, there has been an
explosion of web-based platforms giving
fractional ownership of real estate assets. When an
investor decides to invest in such real estate, the lack
of conventional, uniform selling processes, as well as
the dearth of independent valuation or verification
of information or materials offered to potential
investors, may result in investors falling victim to
errors.
To create reliable liquidity in the traditionally
illiquid asset class, SEBI has proposed that new MSM
REITs will have minimum ticket sizes of ₹25cr and
assets ranging from ₹25cr to ₹499cr. This sizable
95% reduction in minimum asset size opens doors
for various new players to join the triopoly of REITs
in India, providing immense liquidity, diversification,
and potential long-term returns to investors.
Fractional real estate platforms will be required to
register with SEBI as MSM REITs. By introducing
these regulations, SEBI seeks to foster investor
protection, encourage market growth, and enhance
transparency within India’s real estate investment
landscape.
Bittrex: From Boom to Bankruptcy
Bittrex, one of the biggest cryptocurrency
exchanges in the United States, finds itself
in dire straits after being hit with a complaint from
the U.S. Securities and Exchange Commission (SEC).
The regulatory body accuses Bittrex of operating
as an unregistered securities exchange and
conducting token sales in violation of regulatory
guidelines. The embattled exchange has taken the
step of filing for bankruptcy to protect its
remaining assets without affecting its global
presence. Bittrex is the most recent crypto firm to
declare bankruptcy. Last November, the crypto
exchange FTX filed for bankruptcy protection
facing criminal charges. This development sheds
light on the challenges faced by cryptocurrency
exchanges as they grapple with an ever-changing
regulatory landscape and current financial stress
for the sector. Authorities have intensified their
scrutiny of the crypto industry, aiming to enforce
compliance measures that safeguard investor
interests and uphold the market’s integrity.
SIP Inflows
MC
In April, SIP inflows marginally declined
by around 3.8%, to ₹13,727cr from the
previous month's all-time high of ₹14,276cr. Despite
this decrease, the number of SIP accounts reached
6.42cr, and the AUM rose from ₹6.83 lakh crores in
March to ₹7.17 lakh crore in April, reflecting a 5%
growth, which is the highest seen in a single month.
This growth was primarily driven by a market rally
in March, mainly influenced by year-end investments
following the introduction of the new financial bill.
Conversely, the anticipated decline in inflows can be
attributed to investor caution after the sharp rally in
March -Investors probably are adopting a wait-
and-watch approach.
SIP Contribution Net Investments (₹ Cr.)
₹13,728
₹13,306
Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23
Source: AMFI
Equity Inflow
The Equity MF inflows plunged by 68% to
₹6,480cr in April, lowest since November
2022. This decline resulted from the previous
month's remarkable market rally, prompting
investors to secure profits and adopt a cautious
approach before allocating funds. It was seen that
small and mid-cap funds attracted the highest
investments of ₹2,182.4cr and ₹1,790.98cr
respectively, following price corrections due to an
active month in March.
Moreover, in April overnight funds, liquid funds and
money market funds saw inflows of ₹6,107cr,
₹63,219cr and ₹13,960cr, respectively. With rise
in market volatility and valuations investors were
seen favoring fixed-income products, resulting in a
substantial inflow in debt MFs.
18
Total Expense Ratio Changes for MFs?
SEBI aims to enhance cost transparency
for mutual fund investors, proposing a
uniform Total Expense Ratio (TER) across schemes.
This has affected listed Asset Management
Companies’ (AMCs) stock prices. TER represents the
percentage of a scheme's corpus that mutual fund
houses charge for expenses.
Currently, SEBI allows AMCs to charge investors
four types of expenses beyond the TER limit:
brokerage, transaction costs, distribution commission
for B-30 city inflows, and goods and services taxes.
However, TER should include all these charges to
ensure comprehensive cost coverage. SEBI also
proposes that AMCs design their distribution
commission policy to promote financial inclusion,
transparency, and reward inflows from B-30 cities.
AMCs can consider higher commission percentages
for B-30 cities compared to T-30 cities.
To level the playing field for small AMCs, SEBI
suggests revised TER slabs calculated at the AMC
level instead of the scheme level.
India’s First-Ever Defense Fund!
India, with the third largest defense expenditure in
the world, presents a multi-decadal growth
potential amid the government pushing
“Aatmanirbharta” into the defense sector.
Capitalizing on this opportunity, HDFC introduced a
first-of-its-kind “HDFC Defence Fund,” following a
bottom-up portfolio construction approach within the
defense ecosystem. It intends to focus on growth
and quality at reasonable valuations with
investments across large, mid, and small-cap
companies. The open-ended fund plans to invest at
least 80% of its net assets in defense and allied
sector companies, including aerospace, explosives,
and shipbuilding segments. The fund benchmark is
the Nifty India Defence Index, with historical
performance exceeding both Nifty Midcap and
Nifty 50. Self-reliance in the sector, led by strong
R&D and manufacturing focus, has created
opportunities for Indian companies to tap into the
large export potential alongside serving the
domestic market. The unfolding of this unique
investment opportunity in the long term promises
captivating possibilities for discerning investors.
 ERGERS &
Diamond Meets Blackstone
World’s largest alternative asset manager, Blackstone,
has taken a bold step in the gemology industry by
acquiring a 100% stake in the International
Gemological Institute (IGI) for a substantial amount of
$53mn. With a strong presence in 10 countries, IGI has
become a major player, boasting 29 laboratories and
18 gemology schools worldwide. What sets IGI apart is
its ISO accreditation in both natural and lab-grown
diamonds, making it a trailblazer in the certification of
these precious stones. The acquisition comes at a time
when the global retail market of lab-grown diamonds
is rapidly expanding, with a valuation of $7bn with a
CAGR of 15% from CY19-22 and 90% of rough
diamonds polished in India. The acquisition marks a
significant milestone in Blackstone's inorganic expansion
plans and reinforces India's prominent position in the
gemology landscape. The company intends to leverage
its operational expertise, technological capabilities, and
successful track record in business expansion to enhance
IGI's global reach. However, the question lies in whether
Blackstone can maintain IGI's legacy and position in the
industry moving forward.
Vodafone to Change Telecom Landscape
Vodafone and Three, a subsidiary of CK Hutchison, are
poised to create the largest mobile operator in the UK,
serving 28mn customers. With £9bn in equity and £6bn
in debt, the combined company's enterprise value adds
up to ~£15bn, with Vodafone holding a controlling
51% stake and the remaining by CK Hutchison. The two
companies are anticipating unlocking huge cost savings
in the initial years. The impending deal signifies a
monumental consolidation of the UK market into a
handful of major operators that were previously
blocked. Such a historic shift has faced regulatory
obstacles in the past, making the approval all the more
intense and protracted. It is important to note that this
move comes as Vodafone faces investor pressure to
streamline its business and pursue opportunities in
competitive markets like the UK. However, Three UK
has struggled with low investment and returns, earning
below its cost of capital since 2019. Therefore, a major
concern arises: can Vodafone truly benefit from this
deal despite Three's poor performance?
19
CQUISITIONS
Lytus Tech: Set to Enhance Connectivity
The content provider of Sony, Zed TV, and Star TV
(Disney), Lytus Technologies, is ready to expand its
services by acquiring a 51% stake in Sri Sai Cable
and Broadband. With India’s growing
telecommunication sector and the world’s second-
largest subscriber base of 1.17bn, the acquisition
marks an important milestone for Lytus Technologies.
This move will enable the company to leverage its
assets and provide a broader range of innovative
services while catering to the increasing demand for
reliable, high-speed connectivity solutions. Moreover,
it aligns with the vision of delivering high-quality
connectivity solutions to customers. With a network of
over 6,500 local cable operators, Sri Sai Cable and
Broadband, a prominent regional multi-service
operator based in Telangana, commands over 40%
of the market share in their dedicated network area.
It will be interesting to note how Lytus Technologies
utilizes the extensive network and the market
dominance of local cable operators to drive
innovation and capture a larger market share in
India's telecommunications sector.
Microsoft’s “Game-Changing” Acquisition
Microsoft is set to redefine the gaming landscape
with its staggering $68.7bn acquisition of Activision
Blizzard. The global gaming market generated
$184bn revenue in 2022, with mobile gaming
leading the way at $92bn. Recognizing the
immense potential of the mobile segment and
having little presence in the industry, Microsoft
seized the opportunity to bolster its presence.
Activision Blizzard's iconic franchises, including Call
of Duty and Candy Crush, which generated revenue
of $8.14bn in 2022, are set to gain a significant
foothold in mobile gaming under Microsoft's wing.
This strategic move propels Microsoft to the
forefront of the industry, allowing it to expand its
gaming portfolio and solidify its position against
rivals like Sony and Tencent. Furthermore, the deal
not only fuels growth for both companies but also
catalyzes the gaming industry with promising new
opportunities and heightened competition.
 TRATEGY
The “Nameless” Sneaker
Why would a company launch a new product and,
in fact, use posters to promote it while lacking the
most fundamental element—the name? As weird as
it may sound, it actually happened in the streets of
London and Manchester, wherein Google joined
forces with renowned sportswear brand Ellesse to
create a limited-edition trainer like no other. This
extraordinary shoe, which seamlessly merges the
realms of fine art and digital culture, has a distinct
feature that sets it apart from other footwear - it
has no name. However, looking for a sneaker
without a name is impossible, right? But Google has
its mastermind strategy planned. In order to entice
inquisitive passers-by to join them on a virtual
journey, a treasure hunt was organized with posters
portraying the nameless trainers dotting the streets.
As people encounter these intriguing posters, their
curiosity is piqued, and all they have to do to win
the trainers is tap the camera icon in the Google
App, upload a picture of the shoes, and submit their
details. This unique collaboration aimed to showcase
the power of visual search and highlighted the ease
with which one-of-a-kind items can be discovered,
even when traditional search terms may fail. In an
astute way, Google and Ellesse redefined the ease
of finding things when you cannot put your thoughts
into words.
Apple is Now a Bank
Putting your money in any or public or private bank
seems normal right? Now, what if you can put your
money with Apple and earn interest? Apple is known
for consistently setting the stage for innovation in
consumer electronics. But little did anyone expect that it
would revolutionize the banking industry challenging
the regional bank in the U.S. While traditional banks
offer measly returns on savings accounts, Apple is
offering a 4.15% return on savings, with no minimum
requirements or lockups, all while being fully FDIC-
insured. Unsurprisingly, just four short days after the
announcement, $1bn was withdrawn from banks and
deposited into Apple's alluring savings account. But
how is Apple benefitting here? One must possess an
Apple device to access the savings account, boosting
sales. Moreover, it grants the company access to
invaluable customer spending data, the kind of insight
that companies want. And guess what? Apple isn't even
the one paying the interest to their customers. Goldman
Sachs, partnering with Apple, will utilize the deposited
funds and repay interest, leaving Apple free to reap
the rewards without denting their own pockets. This
move comes at a time when major bank failures have
created turmoil in the U.S. banking industry, leaving
customers to ponder: Does this open up a new realm of
possibilities, or will history repeat itself with another
potential failure on the horizon?

The Story You Know, The Motive You Don’t

In today's noisy and competitive media landscape, where numerous brands are vying for attention, it can be
challenging for customers to retain the brand’s ultimate message. But one powerful approach to combat this is
through the art of storytelling. But how exactly do stories build brands?
Dove faced the challenge of marketing beauty products to men, but instead of bombarding their audience with
ubiquitous advertisements of clear skin, it chose to tell a touching story. It shared the story of a military dad who
longed to be with his child, and Dove orchestrated a heartfelt reunion by bringing his family to him. Though
seemingly unrelated to soap, this story used the emotional connection on Father's Day and successfully resonated
with dads worldwide. The motive here is clear: to foster a stronger bond with the target audience, you must
understand and empathize with their concerns. Similarly, Samsung India's heartwarming ad portrays a TV
technician traveling far to fix a TV for visually impaired individuals eager to watch their friend in a singing reality
show, demonstrating the company's commitment and care for customers, regardless of distance or circumstances.
Thus, harnessing the power of storytelling enables brands to establish an authentic and lasting bond by appealing
to the emotional dimension of customers.
20
 ARKETING & RANDING
Someone Just Hacked the Apple Store!!
Ever wondered if a company’s feature could be turned
into a marketing weapon by another company? Well,
Back Market, which connects trusted refurbishment
factories with consumers, just did that with Apple's
Airdrop to promote their product. Here’s how- Over
4,000 messages were successfully Airdropped to
customers browsing iPhones in the store, aiming to
convince potential buyers to choose a refurbished
device instead of a new one. When customers
accepted the Airdrop request, which appeared as a
pop-up message saying '“Back Market” would like to
share the website “backmarket.co.uk,”' they were
greeted with persuasive messages. These messages
included enticing phrases like 'This iPhone 12 comes in
pink, blue, black, and greener. Switch to refurbished'
and 'The iPhone you love without the carbon footprint
you hate.’ Back Market's bold guerrilla campaign
showcases its ability to think outside the box and seize
opportunities in unexpected ways.
By leveraging existing technologies and integrating
persuasive marketing messages, they successfully
position themselves as a compelling alternative to the
conventional retail market. In a world of fierce
competition, Back Market's campaign serves as a
reminder that innovation and valiantness can turn the
tables and transform a competitor's feature into a
powerful marketing tool.
Minecraft: Sandbox to Uncensored Library
Step into a realm where truth reigns supreme, where
the shackles of oppression are shattered, and voices
once silenced echo through the corridors of freedom.
Welcome to "The Uncensored Library," a project
conducted in the sandbox game “Minecraft” that
transcends the boundaries of reality and empowers
journalists to disseminate uncensored information.
Amid growing oppression in the news, “Reporters
Without Borders” have found a new medium to
channel their voices. But, this is not merely a symbolic
gesture. The Uncensored Library goes beyond that,
actively combating censorship with the aid of
Minecraft's worldwide accessibility and popularity.
The forbidden articles within the library are
contained in in-game book items, which can be
opened and read by multiple players
simultaneously. Additionally, it shows the Press
Freedom Index and the current state of freedom of
the press in every country in the index. 17mn
players, young and old, immersed in this game for
entertainment, find a taste of the “true aspect” of
journalism and the political world. This has sparked
curiosity among millions, resulting in over 760 news
features, drawing 25mn visits to the library's page,
and generating an astounding 47.3mn social media
engagements. This digital sanctuary bridges the gap
between the virtual and real worlds, engaging
young minds with accurate information.

Twist, Lick, Dunk & Save

Why would a cookie brand be interested in launching a campaign to save coins?
This question baffled everyone’s mind who encountered Oreo’s playful posters, which read ‘Save the ₹20 coins’.
This was soon all over various media channels, including Outdoor, Digital, etc. But no one could figure out the
mastermind marketing strategy behind all these. Oreo had ingeniously tapped into the fact of the ₹20 coin's
anonymity among most Indians, despite being in circulation for three years, and astutely harnessed this lack of
familiarity and transformed it into a compelling promotional platform for their latest product, priced at ₹20.
Oreo went further and launched a 7-day ‘Save the ₹20 coin store’ - where ACs, washing machines, iPhones, etc.,
were sold for ₹20 coins. The impact of the campaign didn't end there. Oreo took it a step further, creating e-
certificates to honor every coin savior. Oreo not only managed to captivate the audience's attention through its
quirky campaign but also successfully built awareness around the launch of its new product, leaving an indelible
impression and redefining the boundaries of marketing.

21
 "India is a major player in the world, in the
UN, in multilateralism, it’s a major player in
peacekeeping as well, but not only through
importance of its contribution in terms of
troops & police"
- Jean-Pierre Lacroix
Under secretary-general for peace
operations, UN

"Inflation is likely to remain stubbornly

high over the coming years and only
return to the Bank of England’s target
of 2% in mid-2025, six months longer
“We have reached the than it predicted earlier this year"
tipping point of a new - IMF
computing era. Everyone
is a creator now"
- Jensen Huang
CEO, Nvidia Corp

22
 About Us
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Business Consultancy firm. We are built
around four business verticals – Consulting,
Research Advisory, Corporate Training and
Learning and Development. We provide
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worldwide. Our team consists of experienced
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