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Every Friday, Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by. Tata Motors Ltd has decided to split its commercial and passenger vehicle business and list them separately. Byju’s has transferred $533 million to a 100% non-US subsidiary following a legal dispute. India’s services PMI has slowed but remained strong in February.
Investments slump
The growth in private investments in fixed assets decelerated in 2022-23 after a post-pandemic rebound seen in the previous year. In real terms, private investments in fixed assets increased by 6.4% to ₹19.7 trillion in 2022-23. This was lower than the 16.4% surge seen in 2021-22, which came after a contraction of 8.4% in 2020-21 due to the covid-19 outbreak. A sustained revival in private investments would require wage growth to stimulate domestic consumption and strong exports, according to experts.
Bucking trend
Even as exports are under pressure due to the global headwinds, the electronic goods sector is the only one among the top sectors to witness growth in the first ten months of the current financial year. Out of the five leading sectors, by value, petroleum products, gems and jewellery, and chemicals witnessed lower exports in 2022-23 compared to the previous year, while those of engineering goods were flat. Electronic goods exports have seen a dramatic rise in the past few years and now contribute 6% to India’s exports value.
Trading options
13: That’s the number of new commodities notified by the finance ministry for derivatives trading. Commodities like manganese, freight (road, shipping, and airways), weather, cement, bitumen, garlic, skimmed milk powder, white butter, timber, bamboo, and palladium have been made eligible for trading on the National Stock Exchange (NSE). With this, the total number of commodities for trading now stands at 104. Recognized national stock exchanges will require SEBI’s nod to launch derivative trading on these new commodities.
Investor concerns
Mid-cap and small-cap funds have been a preferred choice for retail investors, with 42% of the overall inflows into domestic equity mutual funds in the first 10 months of 2023-24, up from 30% in 2022-23. Consequently, there are indications of overheating within the segment, raising concerns about a potential correction in the near future, a Mint analysis showed. This has led to the Association of Mutual Funds in India (AMFI) to urge fund houses and managers to take preemptive steps to safeguard investors.
Demerger deal
Tata Motors has decided to split its commercial and passenger vehicle operations and list them separately to unlock value and demonstrate confidence in the potential of each sector. The commercial vehicles (CV) unit of Tata Motors specializes in constructing trucks, vans, and buses, while the passenger vehicles (PV) division focuses on producing cars, SUVs, and electric vehicles (EV). The automaker aims to finalize the demerger within the next 12-15 months and all shareholders of Tata Motors will have identical shareholding in both the listed entities.
Byju’s troubles
$533 million: That’s the amount of funds Byju’s has transferred to a 100% non-US subsidiary from Camshaft Capital Fund following a legal dispute. The funds came under scrutiny due to a legal dispute between Byju’s and its overseas lenders during which allegations of concealment were made, which could have potentially led to jail time for Camshaft Capital’s founder William Morton, Bloomberg reported. The edtech company has been embroiled in several legal battles after its subsidiary, Whitehat, failed to accede to the loan agreement as an additional guarantor.
Down, but strong
India’s services activity slowed down but remained strong in February. The HSBC Services Business Activity Index recorded a reading of 60.6 in February. While this was down from its six-month high of 61.8 in January, the reading was higher than its long-term average and significantly higher than the 50-mark, which separates expansion from contraction. Notably, new business from overseas directed towards services companies in India increased for the thirteenth consecutive month and there was a respite from input cost inflation.
Chart of the week: Gender disparity
Gender diversity remains a challenge for India’s top management institutes. A Mint analysis of the past five years’ data from premier institutions like the Indian Institutes of Management (IIMs) reveals a consistent gender ratio of approximately 30–70 female students for every 100 male students.
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Published: 08 Mar 2024, 07:00 AM IST
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