Business Standard Podcast

An undisruptive summer coupled with above-normal temperature is expected to bring some respite for consumer durable companies after facing weak demand for the past two years. According to a report by Reserve Bank of India (RBI), confidence among consumers saw a sharp uptick as retail credit surged to 14% in first half of FY22.   Despite fears of Covid’s third wave, the demand for consumer durables, too, saw a significant growth at over 69% to Rs 28,409 crore, hitting an all-time high. The air-conditioner business grew by approximately 27% in volume terms and around 38% in value terms in March this year, reports suggest. While metros and urban markets continued to show strong demand, rural and semi-urban areas witnessed moderation. Dealers expect this healthy demand momentum to continue going forward. But there is a catch. Analysts expect rising raw material prices, especially that of aluminum, copper and PVC to weigh on margin of white goods and wire and cable companies in FY23. Rising interest rates are also an overall sentiment dampener, as companies try to pass on the rise in input cost to the consumers. To offset commodity inflation, consumer durable companies took price hike of 5-10% in FY22. But earnings recovery in first half of FY23 depends on how much price hike is passed on to the consumers. According to Pranjul Bhandari, Chief India Economist, HSBC Securities and Capital Markets (India), dividing wholesale price index, or WPI, inflation into input and output prices, only 50 per cent of the input costs over the past six months have been passed on — generally, it’s about 80-90 per cent. In this backdrop, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services believes margins of consumer durable firms to remain muted in FY23 as the industry cannot fully pass elevated costs to consumers.   Except Bluestar, shares of consumer durable companies like Crompton Greaves, Voltas, Havells, Orient Electric, Whirpool and V-Guard have been under pressure as they bled from eight per cent up to 21 per cent this year.   In comparison, S&P BSE Consumer Durable index and S&P BSE Sensex tanked over 16 per cent and 10 per cent, respectively, during the same period. Moreover, the sector is sensitive to rising interest rates. With a surprise rate hike of 40 basis points by RBI, consumers are likely to spend less on discretionary items in a cash-strapped economy. Analysts believe that only companies having higher scale and lean cost structure will be able to manage cost inflation better than peers. According to Yesha Shah, Head of Equity Research, Samco Securities, unabated inflation a pain-point and price hikes can eat up demand. She adds, companies are turning to increasing sales to protect margin pressure and consumer durables in a dilemma to protect growth versus margin. Overall, analysts expect 2022 to remain mixed for the industry depending on revival of economic indicators, improvement in supply chain dynamics, and consumer confidence. Lastly, benchmark indices closed lower for fifth straight day yesterday. Both Nifty50 and Sensex tumbled over 2 per cent each. Delhivery IPO was subscribed over 23% on day-2. As regards today, investors’ will watch out Q4 results of Tech Mahindra, Escorts and Bandhan Bank.

Can a cartoon stir unrest and bring down an elected government. Police in Maharashtra thought so when they had arrested Aseem Trivedi ten years ago for sedition. Then 24, Trivedi had tried to highlight corruption through his cartoons. The sedition case went on for several years before being struck down by Bombay High Court in 2015. The case was gone, but the stigma stayed. And Trivedi, a Kanpur lad, quit the profession forever. On Thursday, when the Supreme Court put the sedition law in abeyance, Trivedi heaved a sigh of relief. Not only because he was a victim of the IPC’s section 124 (A), but also because he was one of the petitioners seeking scrapping of the law. From cartoonists to stand-up comedians and satirists to small political activists and opposition leaders, sedition law has been invoked by police in various states at what experts call a very low threshold. While arguing their case, experts point out the difference between treason and sedition. The first one is an act done against the state while the latter is against the government of the day. And criticising the government, they say, should not be penalised. Some even say that even a court decision should be under the purview of criticism. In 2016, the Allahabad High Court had held that criticism of the judiciary or a court ruling is not sedition. Former BJP leader and Union minister Arun Jaitley was the petitioner in the case. Section 124A of the Indian Penal Code, which is the law against sedition, was introduced in 1870 by the British government. And it was Thomas Macaulay who had introduced the law while drafting the penal codes. Its purpose was to stop Indian colonial subjects from expressing dissent against Britain's rule. At that time, sedition was also an offence under Britain’s own penal code. While Macaulay's own country expunged the law in 2016, it stays in India.   In the first two hearings, the central government tried to defend the law. But on the third one, on Wednesday, it told the apex court that it was reviewing it. The next hearing will take place in July now, while one of three judges listening to the case, CJI NV Ramanna, retires in August.  So what does the law say? Under British rule, the punishment prescribed was transportation “beyond the seas for the term of his or her natural life”. This was amended to life imprisonment in 1955. It is still a harsh law and entails a maximum punishment of life imprisonment for anyone who, “by words spoken or written, or by visible representation… brings into hatred or contempt, or excites or attempts to excite disaffection towards the government established by law.” And, how did the British use it? During the Independence movement, this law was used extensively to try and crush political dissent. In fact, some of the prominent pre-independence cases where Section 124A was involved were against freedom fighters like Bal Gangadhar Tilak

India’s labour market is witnessing a perplexing phenomenon. Data from the Centre for Monitoring Indian Economy (CMIE) showed that, from 428.4 million in March, the labour force increased by 8.8 million to reach 437.2 million in April this year. This was one of the largest monthly increases. The private think-tank said that such an increase is only possible if some working-age people who were out of the labour force joined back in April.  However, employment opportunities were inadequate to absorb the additional supply resulting in the unemployment rate inching up slightly.  An 8.8 million increase in the labour force and a 7 million expansion in employment in April resulted in a 1.8 million increase in the count of the unemployed. This pushed the total number of unemployed to 34.2 million. But, what was perplexing was that even as the number of jobless people soared, India’s on-demand delivery platforms witnessed a shortage of workers -- the riders who can pick and drop food, groceries and other items. Swiggy has temporarily shut down its pick-up and drop-off service Genie in Mumbai, Hyderabad and Bengaluru - three of the 68 cities where the service is available due to a shortage of delivery personnel. The company said the cricketing and festive season resulted in a surge in demand for servicing the requirements for both the food marketplace and grocery service Instamart, requiring them to prioritise deliveries accordingly.  Swiggy said it hoped to resume Genie in the impacted cities soon. While demand has gone up, delivery times have increased too in the past few weeks in top cities. Food delivery times are averaging above 40 minutes and even go up to 60 minutes or more. It is also leading to order cancellations. This is also compelling online platforms to club multiple orders in one go. The proliferation of quick commerce apps has triggered a hiring frenzy of sorts for delivery workers. B2B gig marketplace Taskmo’s Prashant Janadri says that companies must broadly increase their pay for gig workers in order to retain them longer as workers are now switching platforms in as little as 1 or 2 months. It is clear that delivery workers feel their wages are not lucrative enough anymore for the kind of effort they put in, especially in the summers.  Janadri says one of the biggest contributing factors to the crisis is the wages not going up commensurately as fuel got costlier in the last two months. But companies could be worried that increasing delivery charges could lead to suppression of demand. Meanwhile, Rohit Rathi, co-founder of Karmalife, a financial platform for gig workers, says the current situation is because of cyclical factors and the demand-supply mismatch will stabilise in a few months.   The demand for gig workers by quick commerce and logistics players, plus rising inflation due to fuel costs and the inability of players to increase i

The race to acquire Ambuja Cements and ACC seems to be entering the final lap now. The two top contenders -- Gautam Adani and Sajjan Jindal -- are now vying to take over the two leading domestic cement companies owned by international building materials giant Holcim which is now exiting India after 17 years. There are some other contenders too, like India’s top cement maker Ultratech. But why do all these leading firms want to buy Holcim’s stake? And why did the Switzerland-based company decide to quit India which contributes 27% of its global sales volumes.  Holcim’s decision to pull the plug on an emerging market like India has indeed baffled many. But, if reports are to be believed, it is doing so due to its commitment to check global warming. Similarly, but not on that scale, a 55-year-old engineer from Ladakh has been doing his bit to spread awareness about climate change for decades now. Sonam Wangchuk is now a familiar name in India, thanks to his now resounding voice on climate change and innovations in the cold mountains. His latest one is a carbon-neutral solar building that stays warm even in freezing conditions and can help clean the toxic air of Delhi and NCR. Business Standard's Nazia Iqbal caught up with him in Ladakh to know more. Like the weather, markets too are going through a volatile phase. Volatility in the secondary market against the backdrop of US Fed rate hike and ongoing Russia-Ukraine war has seen two companies – Life Insurance Corporation of India (LIC) and Delhivery -- trim the size of their initial public offers in May. Will more companies follow the suit as the markets are likely to remain choppy?  It may have hit the economy and markets adversely, but the pandemic was in a way good for the Indian pharma industry. India makes about 60% of the world’s vaccines and 20% of generic drugs. The US is a major export destination. On its part, the US administration carries out regular inspections at offshore drug making units to ensure that they stick to the standards. In one such recent check, the US FDA has issued Form 483 to a firm. This episode of the podcast demystifies the Form 483 and more.

It has all the elements to hook you in. An intense bidding battle for Ambuja Cements and ACC -- the two Indian subsidiaries of Switzerland’s Holcim Group -- is going on. And it all began with baffling media reports that Holcim -- the world’s biggest cement maker – may exit India -- a country which makes up 23 per cent of its global cement capacity. Holcim’s decision to potentially quit India – which still has millions of kutcha and semi-pucca houses and will see massive construction activities in the years to come – has surprised many. It entered the Indian cement sector in 2005. The Swiss giant is now trying to diversify away from its core business of cement and aggregates like crushed stone, gravel and sand to focus more on building technology as it increases its emphasis on sustainability. From the current 13%, Holcim is targeting to generate 30% of its net sales by 2025 from the Solutions & Products segment, which covers businesses ranging from roofing and waterproofing to insulation and renovation.   This is part of its medium-term strategy to become the global leader in innovative and sustainable building solutions called the “Strategy 2025 – Accelerating Green Growth” It has made several acquisitions in the past 12 months in Europe and the US to build up its Solutions & Products portfolio. At the same time, it has sold off its cement operations in Brazil, Northern Ireland, Zambia, Malawi, Madagascar and Russia. And according to reports, next in line is India, where Holcim is the second-biggest cement group. The Indian operations represent 24% of Holcim’s global cement capacities and 27% of sales.  It owns a 63.19% stake in Ambuja Cements and 4.5% directly in ACC. Ambuja in turn holds just over 50% in ACC. They have a combined capacity of 66 tonnes per annum compared to market leader UltraTech Cement’s 120 million tonnes.  So what makes Ambuja and ACC so attractive that it has triggered a hotly contested race between several players to buy them?    On a consolidated basis, Ambuja and ACC account for 12% of domestic capacity and 17% of the revenue market share.  Ambuja Cement and ACC reported a combined net profit of Rs 3,900 crore on revenues of Rs 30,000 crore during the year ended December 2021. The acquisition of Ambuja and ACC will give the acquirer one of the best managed and profitable cement assets in the country, which are also debt-free. To give a complete exit to Holcim, the potential buyer would have to shell out as much as $10.5 billion after accounting for mandatory open offers since both are listed entities. This would make it the largest deal in the Indian cement industry and one of the biggest exits of an MNC from India.   The high potential cost is attracting bidders with deep pockets.  Media reports indicate that India’s biggest steelmaker JSW Group, Aditya Birla Group’s UltraTech Cement and ports-to-energy conglomerate Adani Group have submitted non-binding bids to Holcim. 83-year-old cement maker Dalmia Bharat and the world’s biggest steelmaker ArcelorMittal are also said to be joining the race. Speaking to Business Standard, Manish Valecha, Lead Cement & Construction Analyst, Anand Rathi Securities says, ACC-Ambuja have plans to add another 5-8 mtpa capacity in 1-1.5 years. Any new player will directly go to number 2 position, he says. Setting up a new cement plant or adding capacity today is difficult and it takes up to 5 years to set up a 4-5 mtpa plant, he says. So, getting 66 mtpa at one go is a huge opportunity. UltraTech Cement will face antitrust hurdles with respect to its post-purchase market share in some western states including Maharashtra and Gujarat. Even so, it can offer to voluntarily divest some of its assets in those particular geographies to secure approvals from the Competition Commission of India. The deal may also face some hurdles from CCI on a different front too. The regulator has been keeping a tab on the c

Sonam Wangchuk is now a familiar name in India, thanks to his now resounding voice on climate change and innovations in the cold mountains. His latest one is a carbon-neutral solar building that stays warm even in freezing conditions and can help clean the toxic air of Delhi and NCR. Business Standard's Nazia Iqbal catch-up with him in Ladakh on that and more. Listen in

After public sector insurance behemoth Life Insurance Corporation of India (LIC) trimmed the size of its initial public offer (IPO) from over Rs 60,000 crore to Rs 21,000 crore, Softbank-backed Delhivery has trimmed its issue size from Rs 7,460 crore to Rs 5,500 crore to align with the volatile market conditions.   Delhivery’s IPO will be second biggest this year after LIC and among the top-five since 2021. Besides these two IPOs, nearly half a dozen companies plan to raise over Rs 7,500 crore via primary markets in May alone. According to a recent note by Prime Database, 54 companies plan to raise a massive Rs 1.4 trillion, including the LIC IPO, in 2022 and currently hold market regulator Securities and Exchange Board of India's (Sebi’s) approval. Another 43 companies, the note said, are looking to raise about Rs 81,000 crore where Sebi approval is still awaited.   The largest IPO in 2021-22 in terms of size, which was also the largest Indian IPO ever till the LIC IPO came around, was of One 97 Communications (PayTM) for Rs 18,300 crore.   So, what’s in store for primary markets in the months ahead? Will the fund raising frenzy slow a bit?   According to Sunil Tirumalai, strategist at UBS Securities India, primary markets will definitely see a fallout of slowing flows and pressure on valuations. The downsizing of LIC IPO is an example of the same, he says. Now let’s go to Ambareesh Baliga, an independent market analyst, to understand the dynamics in details. IPOs involve long-term planning, he says adding that trimming the IPO size is a prudent thing to do given the current markets. Timing the IPO is difficult, but companies need to leave something on the table for investors for the IPO to garner subscription, he says.    So, will the volatile market conditions see companies trim their offer size? VK Vijayakumar, Chief Investment Strategist of Geojit Financial Services says IPOs do well in a bull-market; key is to get the issue price right. LIC’s original plan to offload 5% equity was an uphill task in the current market, he says adding that issuers need not wait for a ‘favourable’ time / postpone issue. Message from the market is clear: Get the pricing right, he says.    Today, the markets will react to the US CPI numbers and how the global markets perform. Stock-specific action is likely to continue amid volatility.  

After a hiatus of two years, the US Food and Drug Administration resumed its onsite inspections of drug manufacturing units outside its borders – including China and India. It has been following this practice to make sure that all the medicines which enter into the country follow the set standards. Most inspections were put on hold in March 2020, when the world was hit by the pandemic. Indian pharmaceutical companies, on their part, try to adhere to the norms as any departure may hit their export adversely. In one such inspection at Sun Pharma’s Halol facility this month, the US FDA team issued a Form 483. The next morning of May 10, the share price of Sun Pharmaceutical Industries fell over four per cent. So, apparently, the Form 483 and 10 observations made in it were not good news for the firm. The company said that it was preparing a response to the observations, which would be submitted to the USFDA within 15 business days. The Food and Drug Administration has the responsibility of protecting public health in the US. In its own words, on the one hand, it does this by ensuring the safety, efficacy, and security of both human and veterinary drugs, biological products, and medical devices. On the other hand, the FDA is responsible for ensuring the safety of the US' food supply. It also deals with cosmetics and products that emit radiation.   According to the USFDA, an FDA Form 483 is issued to the management of the firm being inspected. It is issued at the end of the inspection if the FDA's investigators find that they have observed any conditions that might constitute violations of the Food Drug and Cosmetic Act and related Acts of the US. Observations are made when the investigators find that the conditions or practices observed indicate that any food items, drugs, devices or cosmetics have been adulterated. Or, if in their judgement, these products are being prepared, packed, or held under conditions in which they might become adulterated or rendered injurious to health.   On their part, the company that has been inspected is supposed to respond to the Form 483 in writing, along with its corrective action plan. The FDA expects that subsequently, the company will implement said plan expeditiously.

Indian Rupee weakened further on Monday and touched an all-time low figure against a surging US dollar. And experts believe that it may depreciate further -- pouring cold water over RBI’s efforts which recently raised interest rates to bring down the inflation. In the central bank’s own calculations, every 5% fall in the rupee adds about 10-15 bps to the inflation. So what does a weaker rupee mean for the Indian economy which is already weathering several storms? And what does it mean for people at large who are at the receiving end of high inflation?  A depreciating Indian rupee will indeed dent the Centre’s exchequer. But the government has several avenues to refill it. It has been eyeing the rollout of 5G for a while now -- which may help it address the revenue shortfall. But now, when the decks are cleared for it, the telecom operators look upset as some of their demands have not been fulfilled -- suggesting that the upcoming auction may get a lukewarm response.  It’s not just the 5G roll out, but the markets too are staring at a bumpy road ahead. With the US Federal Reserve and the RBI making their policy intent clear, will the equity markets across the globe now go into a correction mode? How should investors approach the markets in the backdrop of this policy shift? Will foreign funds come back into Indian equities if the economic growth remains robust? Business Standard’s Puneet Wadhwa spoke to Mark Matthews, head of research for Asia at Julius Baer to get his views on the recent developments and the road ahead for global equity markets as they adjust to the ‘new normal’ of rising interest rates. After the markets, let us move on to a technology which is crucial to 5G roll out. Short for Open Radio Access Network, the Open RAN is critical to 5G deployment. In India’s context, the Open RAN architecture is essential but also fraught with challenges. We will get to it, but let us first understand what O-RAN is in this episode of the podcast.  Watch video

Q1: With the US Federal Reserve and the RBI making their intent clear, how do you see global equity markets play out in the rest of 2022? Ans: >They’ll be choppy; many moving parts in the markets >Aura of uncertainty hanging over markets >More chances of downside than an upswing Q2: So are you a buyer on dips or a seller on a rise? Ans: >Buyers need to be nimble >Outlook is uncertain; do not advise people engage in active trading     Q3: Is the global equity market headed towards a bear phase and give negative returns in 2022? And: >Possible that equities are headed towards a bear phase >Market trajectory has taken a U-turn >Overall direction does not look positive     Q4: Where does India stand in your pecking order? Which other regions look more lucrative? Ans: >India has outperformed most regions YTD >Domestic investors continue to buy stocks; untapped potential >Rising oil a headwind for the Indian economy >Earnings growth in FY23 will come from sectors not dependent on commodity prices >Indian equities to perform in-line with global peers     Q6: Inflation fears have been known since quite some time now, but the selling over the past few days and weeks have been brutal. Has the sell-off been overdone? Ans: >Markets have surprised over the past few weeks >Assuming we’re in a bear phase, three-fourths of the pain is over >US Fed tightening expectations will prove to be exaggerated >Signs that economic growth is starting to slow; will help in cooling inflation     Q7: Investment-worthy stocks and sectors in the Indian context? Ans: >Stocks not overheated; global cues in focus >Markets trading on macro events rather than fundamentals >Commodity producers likely to do well  

For the first time, the Indian rupee breached the psychological barrier of 77 against the dollar on Monday to close at a record low of 77.46, raising fears that India’s inflation situation could worsen.  Retail inflation in March neared the 7% mark, largely reflecting the impact of geopolitical spill overs and a Reuters poll suggested that it likely surged to an 18-month high of 7.5% in April. Widening trade and current account deficits, heavy foreign fund outflows and a strengthening US dollar have pulled the currency down nearly 4% this year.  The trade deficit surged over 30% year-on-year to $20 billion in April, mainly on the back of higher energy prices.  India’s current account deficit is expected to widen from 1.5% of GDP in FY22 to as much as 3%. Meanwhile, foreign investors have pulled out a whopping $19 billion from the Indian markets in this calendar year so far. This compares to net inflows of $7 billion in 2021, $14 billion in 2020 and $19 billion in 2019.  The US dollar has been on a tear as investors piled on the safe-haven currency with the Federal Reserve seen as tightening monetary policy more than peers. Risk aversion in global markets means funds are flowing to the US. The dollar index, which tracks the currency against a basket of major currencies, is up nearly 9% this year and hit its highest in 20 years.  It is not just the rupee but most currencies were sent tumbling because of the dollar upcycle. In fact, the Indian rupee has performed relatively better than some of its emerging market peers.   Speaking to Business Standard, Rahul Bajoria, Chief Economist, India and the Antipodes, Barclays Investment Bank said rupee is not being singled out in terms of weakness. Chinese yuan, Korean won and Japanese yen fell more than rupee in last 3-4 months, he said adding that several Asian currencies have weakened across the board. The biggest impact of a weakening rupee is on inflation, given India imports more than 80% of its crude oil, which is India’s biggest import. Oil has been hovering around $100 a barrel for more than two months now and a weaker rupee will add to inflationary pressures. India is also heavily dependent on other countries for fertilizers and edible oils. The country’s fertilizer subsidy bill is already set to hit a record high of as much as Rs 1.9 trillion this fiscal, according to Crisil.  While a weak rupee makes imports costlier, it has some benefits too. It makes our exporters more competitive in theory. But in a scenario of weak global demand and lingering volatility, exporters are not cheering the currency dip. Ajai Sahai, director general of the Federation of Indian Export Organisations, recently told Business Standard that India may not gain much if a competitor’s currency is depreciating at a faster pace.  Further, Indi

Ready to enjoy blazing-fast speeds with 5G? Looking forward to enjoying entertainment options, such as immersive video and wireless holograms, which were hard to come by in the past? Well, there is good news for you, at least depending upon which city you live in. We are one step closer in our tryst with new high-speed services.   The decks have reportedly been cleared for the Department of Telecommunications, or DoT, to auction the 5G spectrum. In fact, India might see 5G services being showcased on 15th August. The Telecom Regulatory Authority of India, or TRAI, has left it to the DoT to take a decision on three crucial issues. The first is the validity period of spectrum assignment. The second is the deferment of auction in the 27.5 GHz-28.5 GHz band. And, the third is the quantum of spectrum that will be reserved for BSNL and MTNL. As a result, the whole process has become simple. Going ahead, the Digital Communications Commission, or DCC, will clear the 5G spectrum auction.  Subsequently, it will have to be cleared in the Union Cabinet. Finally, the DoT could begin the auction process in June. On their part, the telcos have said that if everything goes well, limited 5G services roll out might be seen by the end of this year.   Telcos had demanded a 90 per cent reduction in the 3.5 GHz spectrum base price, compared to the regulator's recommendation in 2019. But this demand has not been met. However, at 317 crore rupees for a pan-India 1 MHz of spectrum, the base price has been reduced by 36 per cent for a validity of 20 years. While it had earlier wanted a 30-year-period validity, the DoT took an about turn and suggested a 20-year period. According to a recent Business Standard report the base price for a 30-year period would be 1.5 times the base price for 20 years. As a result, the base price would have been 476 crore rupees, which would be pretty close to the 491 crore rupees recommended by TRAI in 2019. And, the telcos had made it clear that the price being pegged so high would discourage them from taking part in the auctions.   The 30-year period was one of the elements of the telecom package announced by the government. However, the Cabinet can still take a call on any further reductions. On the issue of private captive networks, TRAI had earlier recommended that enterprises should be allowed to get spectrum directly from DoT to run their own networks in remote locations. However, it has now changed tack and both the DoT and the regulator are on the same page on this contentious issue. Now, TRAI has reportedly said that a demand assessment would be necessary for enterprises to get spectrum directly.   Telcos, on their part, have highlighted that the bulk of the business in 5G would come from enterprises, which is a trend seen globally. While the current auction might not prove to be a similarly negative inflection point, it is worth asking that under the present terms and conditions, will an appreciable number of Indians be able to take advantage of 5G services?    

You might have come across the term Open RAN if you have been following news around 5G. Open Radio Access Network, or Open RAN, is a key part of a mobile network system that uses cellular radio connections to link individual devices to other parts of a network. It comprises antennae, which transmits and receives signals to and from our smartphones or other compatible devices. The signal is then digitised in the RAN-base station and connected to the network.   In the traditional set-up, Radio Access Network is provided as an integrated platform of both hardware and software. Therefore, it is difficult to mix vendors for the radio and baseband unit, and in most cases, they come from the same supplier. The idea of Open RAN is to change this, and enable operators to mix and match components. It goes a step further by opening the interfaces inside the base station. The Open RAN architecture allows for the separation - or disaggregation - between hardware and software with open interfaces.   RAN has been based on proprietary technologies of original equipment makers such as Ericsson, Nokia, etc. With Open RAN, telecom players would have the flexibility to use in-house solutions or solutions from multiple vendors for RAN services. This would allow telecom operators to look beyond traditional vendors, thus creating opportunities for lesser-known vendors from abroad as well as from home to be part of the growing 5G ecosystem, based on their innovation competence. Network flexibility is another advantage of the Open RAN architecture. Being software-centric, it is scalable, agile and best of networks with improved network performance using artificial intelligence and machine learning. Last, but not the least, is cost. Open RAN would reduce a telecom operator’s network deployment cost as it is interoperable with other networks such as 4G. Open RAN is a new architecture, and not something that has been extensively tested. Therefore, there are several challenges in the path to implement Open RAN such as latency issues, operations and maintenance. Since interoperability is at the core of Open RAN, the issue of latency might not show up in controlled environment testing but at a later stage when the architecture is pushed to its limits. Likewise, servicing and maintaining a multi-vendor architecture can also pose a big challenge for service providers.

Several fund managers have been under the Sebi radar for quite some time now over their alleged role in markets norms violations-- including the dubious practice of front-running. And the markets regulator is said to have expedited its probe after revelations at Axis Mutual Fund last week, where two fund managers were stripped of all the responsibilities over suspicion that they too were involved in front-running. So, is it just a stray incident? Or yet another tip of the looming iceberg? Will it dent the investors’ confidence? And what should the regulator do to check it?  Experts believe that a few such incidents may not shake the investors’ confidence in the mutual fund industry. Let us move on to India’s booming export industry. For some time now, exports have been a bright spot for the Indian economy-- which has recently emerged from the shadow of pandemic. It breached the $400-billion export mark in FY22, way before the end of fiscal year. However, despite such an achievement, the government looks circumspect. The commerce ministry has not projected any fresh exports target for FY23. Is it due to the uncertainty surrounding world trade? And how can India sustain its exports growth momentum?  India’s plan to boost its wheat export may be derailed due to the ongoing heat wave. But the extreme weather bodes well for some. Stocks of power companies usually rise in tandem with the soaring mercury. The sector is grappling with low coal inventories. So will the situation get worse amid record high power demands? And how should investors bet on it?   After the power sector stocks, let us see how the government is using technology to usher in transparency. It is now planning to roll out e-passports soon. What is it? And how different will it be from our regular passports? Let us find out in this episode of the podcast.   Watch video

Several fund managers have been under the Sebi radar for quite some time now over their alleged role in markets norms violations-- including the dubious practice of front-running. And the markets regulator is said to have expedited its probe after revelations at Axis Mutual Fund last week, where two fund managers were stripped of all the responsibilities over suspicion that they too were involved in front-running. So, is it just a stray incident? Or yet another tip of the looming iceberg? Will it dent the investors’ confidence? And what should the regulator do to check it?  Experts believe that a few such incidents may not shake the investors’ confidence in the mutual fund industry. Let us move on to India’s booming export industry. For some time now, exports have been a bright spot for the Indian economy-- which has recently emerged from the shadow of pandemic. It breached the $400-billion export mark in FY22, way before the end of fiscal year. However, despite such an achievement, the government looks circumspect. The commerce ministry has not projected any fresh exports target for FY23. Is it due to the uncertainty surrounding world trade? And how can India sustain its exports growth momentum?  India’s plan to boost its wheat export may be derailed due to the ongoing heat wave. But the extreme weather bodes well for some. Stocks of power companies usually rise in tandem with the soaring mercury. The sector is grappling with low coal inventories. So will the situation get worse amid record high power demands? And how should investors bet on it?   After the power sector stocks, let us see how the government is using technology to usher in transparency. It is now planning to roll out e-passports soon. What is it? And how different will it be from our regular passports? Let us find out in this episode of the podcast.