Every Friday, Plain Facts publishes a compilation of data-based insights, with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by.
The shares of Adani group companies plunged on Thursday after the US indicted chairman Gautam Adani and other executives for allegedly bribing Indian officials. The government plans to expand the scope of the Prime Minister Internship Scheme, while Bitcoin prices are skyrocketing.
Adani trouble
Nearly two years after US short-seller Hindenburg Research accused the Adani Group of “brazen stock manipulation” and an “accounting fraud scheme,” fresh troubles have surfaced for the conglomerate. On Thursday, the US Department of Justice filed an indictment alleging that Gautam Adani, his nephew, and six others paid $265 million in bribes to Indian state officials, while misrepresenting this during fundraising efforts in the US. The revelation sent shockwaves through the markets, with Adani Group stocks tumbling and several hitting their lower circuits.
Muted quarter
Amid optimism surrounding India’s growth story, corporate performance in the September quarter painted a less rosy picture. Combined revenue for 3,832 BSE-listed companies grew at just 8.3% year-on-year—the slowest pace in four quarters—according to a Mint analysis. Net profits fared slightly better, rising 9.5%. However, this growth was largely propped up by the banking, financial services, and insurance (BFSI) sectors. Excluding BFSI, revenue growth slipped to 5%, while profit growth dwindled to 5.5%.
Meta’s penalty
₹213 crore: Is the penalty amount the Competition Commission of India (CCI) has slapped on Meta for alleged abuse of its dominant position through WhatsApp’s 2021 privacy policy update. The CCI claims the update undermined users’ ability to opt out of data sharing with Meta’s social media platform, Facebook. In addition to the fine, the regulator has directed WhatsApp to refrain from sharing user data with other Meta entities for advertising purposes for the next five years.
Populist pangs
Political parties in India are trying to woo voters with several populist measures, especially cash transfers to women, subsidized gas cylinders and free electricity. These populist measures are adding further stress to already stressed state budgets. While such populist measures, or freebies, have also been announced by the central government, they have managed to stay on the fiscal consolidation path, while the state governments are seeing a rise in their fiscal deficit as a percentage of GSDP in recent years, Mint reported.
Tariff worry
Donald Trump’s victory in the US presidential election has reignited global fears of a potential trade war. Throughout his campaign, Trump repeatedly vowed to impose import tariffs, a promise that carries weight given his track record. During his previous term, average tariffs on Chinese and Indian imports into the US surged—doubling and tripling, respectively, to around 8% in 2019, according to a Mint report. This escalation sparked a trade war, with several countries imposing retaliatory tariffs on US goods. While services trade offers some relief, it is unlikely to fully offset the impact on goods trade.
Widening scope
18–25 years: That is the new age criterion the government is considering for the Prime Minister Internship scheme, widening it from 21-24 years, Mint reported. The idea is to give candidates a larger window to apply for the scheme and improve their chances of getting an internship. The scheme is currently restricted to applicants whose families earned less than ₹8 lakh in 2023-24 and do not have any member holding a permanent government job. Over 125,000 internship opportunities are available across 20+ sectors, offered by around 280 leading companies.
Standing out
Tata Group-owned Indian Hotels Co Ltd (IHCL) is thriving in the hospitality sector, and its managing director and chief executive officer (CEO) Puneet Chhatwal is on a mission to redefine its mission, Mint reported. Chhatwal earlier this week said the hotels and revenue should double by 2030 and the return on capital employed should rise 20%-plus. While this may be considered optimistic, IHCL has delivered in the past five years, with its share price surging over 400%, more than any other listed hospitality company.
Bitcoin buzz
Trump’s pledge to support cryptocurrencies, marking a reversal of the US government’s previous hardline stance, has propelled Bitcoin to new heights following his victory. After its dramatic crash in 2019, Bitcoin has now surpassed the $97,000 mark and is expected to continue its upward trajectory.
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