ECONOMY | PAGE 2 COMPANIES | PAGE 5 Goyal: India seeks deep tieswithTrump govt BACK PAGE | PAGE 14 The rise and fall ofDunzo co-founder KabeerBiswas H-1B debate intensifies ahead ofTrump’s oath MUMBAI, SATURDAY, JANUARY 4, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXV NO. 4, 14 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 79,223.13 ▼ 720.58 NIFTY: 24,004.75 ▼ 183.90 NIKKEI 225: 39,894.54 ▼ 386.62 HANG SENG: 19,760.27 ▲ 136.95 `/$: 85.78 ▼ 0.03 `/€: 88.26▲ 0.52 BRENT: $76.21 ▲ $0.28 GOLD: `77,098 ▲ `378 Unlisted share space on a high as investor interest grows PRIVATE BENCHMARKS TRACKING the unlisted share market rose to new highs during the week, reports Surender Negi. ■ PAGE 6 FE S P E C I A L S Hyundai Creta EV to run into strong rivals at launch Battle heats up with Tata Curvv EV, MG ZS EV, Mahindra B6, followed by Maruti eVitara, & a Toyota EV ■ MOTOBAHN, P9 Keep equities at 60%, fixed income at 40% Stick to SIPs, STPs to avoid market-timing risks ■ PERSONAL FINANCE, P9 annual data protection impact assessmentsandpresenttheirfindings to the Data Protection Board,a regulatory body established under the Act.The board,which will operate digitally with remote hearings, is tasked with investigating breaches, imposing penalties and ensuringcompliance.Asearch-andselection committee will appoint the board’s chairperson and members, reinforcing its independence and accountability. Continued on Page 10 After buoyant start to 2025, reality check for indices KISHOR KADAM Mumbai, January 3 AFTER RISING 2.3% in the first two days of the calendar year, investors resorted to profit-booking on Friday, leadingtoadeclineofupto0.90%in the benchmark indices.However,the indices managed to close the week with gains of up to 0.80%,marking thesecondconsecutiveweeklyrise. The Sensex opened over 129 points higher but slipped into negative territory and remained there throughout the session,ending the day at 79,223.11, down 720.60 points, or 0.90%. Similarly, the NSE’s Nifty fell 183.90 points, or 0.76%, to close at 24,004.75. The benchmark indices had gained 0.47% and 1.83% on Wednesday and Thursday, respectively, driven by demand for auto, IT, and financial sector shares. “The markets remainedvolatile throughout the week, with multiple factors influencing investor sentiment. WEEKLY GAINS Jan 2 Top Sensex gainers (weekly, %) 9.19 79,943 7.72 7.26 5.31 Jan 3 79,223 4.67 *between December 27 and January 3 Dec 27, 2024 Mcap gain/loss (in ` crore) 78,699 Jan 1, 2025 78,507 Dec 31 Dec 30 78,248 78,139 SENSEX Dec 30 2024 Dec 31 2024 Jan 01 2025 Jan 02 2025 Jan 03 2025 -96,154 63,615 2,43,952 6,03,942 -69,216 Continued on Page 10 Swiggy, Zomato to retain `10 fee FOOD DELIVERY platforms Zomato and Swiggy are likely to continue charging customers the increased platform fee of `10 per order even after the festive season ends,sources aware of the matter told FE, reports Anees Hussain.The platforms had raised their fees to `10 in October 2024. ■ PAGE 4 Sebiwarning forJM Financial THE SECURITIES and Exchange Board of India (Sebi) has issued JM Financial an administrative warning for regulatory non-compliance during the initial public offering (IPO) of its client, Western Carrier (India), reportsAkshataGorde.Sharesofthe investmentbankingfirmclosed2.3% lowerat`129.90onFriday. ■ PAGE 6 GenAI intensifies pricing pressure THE RAPID adoption of GenAI is reshapingspendingpatternsintheIT servicesindustry,butthistechnological shift is intensifying pricing pressures for providers,reports Padmini Dhruvaraj. Despite the growing demandforGenAI,clientsareincreasinglydemandingthatefficiencygains bepassedontothem. ■ PAGE 4 ■ Minimalist sells its products online through its own website and e-commerce channels like Nykaa as well as through offline channels MOHIT YADAV, CO-FOUNDER AND CEO, MINIMALIST We don’t believe a lot in terms of the pricing growth lever, instead we focus on more innovation and finding gaps which can be tapped per Tracxn data. The company had raised a $2-million seed round in 2019 from Peak XV and then $15 million in SeriesAtwo years later. Like most new-age beauty startups, Minimalist sells its products online through its ownwebsite and e-commerce channels like Nykaa as well as through offline channels.Its skincare and haircare products, which focuses on active ingredients,have helped its revenue rise to `350 crore in FY24, an 86% jump over the preceding financial year. Most of the company’s products are priced between `300-700.“We don’t believe a lot in terms of the pricing growth lever, instead we focus on more innovation and finding gaps which can be tapped,” cofounder and CEO Mohit Yadav had told FE in a recent interaction. Continued on Page 10 Re fall drives forward premium rates past March 2022 high Social security framework for gigworkers by early FY26 PRIYANSH VERMA New Delhi, January 3 THE GOVERNMENT IS likely to introduce a framework to provide social security coverage to gig and platform workers in the next four to fivemonths,officialsourcessaid.The plan to roll out the benefits for the fast-growinglaboursegmentbyearly next fiscal is despite the fact that the implementation of the four labour codes, approved by Parliament in 2020/2021,is being delayed. “As of now, the design of the framework (for gig workers' social security) is not final. Whether a schemeisintroducedtoprovidesocial security to them,or some provisions of the Code on Social Security (CSS) willbeinvoked…hastobeseen,”saida personawareofthedevelopment. “However, the framework most likelywouldbeintroducedbeforethe labourcodes are officiallynotified by the Central government,” the person added.The government is aiming to provide such workers with health & lifeinsurance,accidentinsurance,and pensioncoverage. AccordingtoNitiAayog,therewere 7.7milliongigandplatformworkersin 2020-21,whichareestimatedtoriseto 23.5millionby2029-30. Thegovernmentismullingtoprovide the gig and platform workers a unique identity like the Aadhaar, which would be accessible by all the companies,who hire them, namely Zomato,Swiggy,Zepto,Urban Companyetc.Theuniqueidentitywillstore all the information of the workers, such as their monthly earnings,past workrecords,etc. Continued on Page 10 ANUPREKSHAJAIN Mumbai, January 3 AT A NEW LOW WITH THE RUPEE touching yet anotherlowof85.81adollar,before settling at 85.78 on Thursday, forwardpremiumrateshaveincreased to multi-yearhighs.Driven byhuge liquidity deficit in the banking system and an increase in hedging bets by importers, the one-month dollar/rupee forward premium rose to 3.30%, the highest since March 2022. The one-year forward rate rose to 2.54%, highest since October 2022. The dollar-rupee forward premium is used by companies to make forexhedgingdecisions.Ahigherforward premium indicates that the market expects »INSIDE« the rupee rise in thefuture. MOBIUS: WEAK Anychange or RUPEE MAY GIVE A LEG-UP inversion in the TO EXPORTS premium curve PAGE 6 could impact the tenure of the hedges and thus, a company's decision on taking a hedge.“Continuous intervention through buy/sell swaps have led to this inversion in the forward premium curve," said a forex traderwithastate-ownedbank.” Importers say that in the nearterm, the rupee may fall past 86/$ markduetoastrongdollar,supported byhigh USTreasuryyields,and likely tariffpoliciesofthenewUSPresident, DonaldTrump,saidforextraders.This haspromptedthemtoincreasehedging bets on the dollar/rupee,pushing thenear-termforwardratesupwards. At the same time, the Reserve Bank of India (RBI) has been selling Jan 2 (close) 85.76 ■ The dollar/ rupee forward premiums are used by firms to make forex hedging decisions Jan 3 (close) 85.78 (inverted scale) sensitive data from potential exploitation abroad, aligning with national security interests. While the Act had dropped specific provisions relating to compulsorily storing personal data in the country, it had stated that cross-borderflowof data can be done with friendly nations. The rules seem to suggest that the committee will from time to time provide either provide a ‘blacklisting’ or ‘whitelisting’ approach. The draft mandates that significant data fiduciaries conduct ■ HUL’s investment arm Unilever Ventures invested in Minimalist’s Series A round in 2021 and holds a minor stake ■ The Reserve Bank of India (RBI) has been selling dollars in the spot market to support the rupee ■ Importers say in the near term, the rupee may fall past the 86/$ mark due to a strong dollar dollars in the spot market to support the rupee.This has drained out the rupeeliquidityfromthebankingsystem.In the last few days,the system liquiditycrossedthedeficitof`2lakh crore. In the day,the rupee touched all-time low of 85.81/$, before settling at 85.78/$ against 85.76/$ On Thursday.Although,themovementin therupeewasrangeboundduetothe RBI's intervention but demand from oil companies and importers led the rupeetotouchanotherall-timelow. Continued on Page 10 Extreme penury minimal, researchers cite rising rural mobility, DBT Povertybelow5%,urban-ruralgapreducing:SBIResearch FE BUREAU New Delhi, January 3 INDIA'S POVERTY FELL sharply from close to 22% in 2011-12 to well under 5% in 2023-24, with almost minimal incidence of extreme povertyand a shrinking of urban-rural gap,researchers at the State Bank of India (SBI) have said. Citing the results of the Household Consumption Expenditure Survey (HCES) 2023-24 released last week, SBI group chief economic adviser Soumya Kanti Ghosh said that based on fractile distribution,rural povertyplunged from 25.7% in 2011-12 to 7.2% in 2022-23 to 4.86% in 2023-24. Urban povertydeclined from 4.6% in 2022-23 to 4.09% in 2023-24. SHARP DECLINE IN RURAL NUMBERS Poverty ratio using HCES (%) 7.2 4.6 Rural Urban 4.9 4.1 Inflation adjusted poverty line (`) Rural All India (%) 2011-12 21.9 25.7 Urban 1,944 WITH THE SUCCESSFUL trials of the Vande Bharat sleeper trains at the peak speed of 180 km per hour, sources have told FE that these trains would come into service from May this year, reports Manu Kaushik. ■ PAGE 3 The draft also lists a framework for consent managers, who will grant or revoke data processing consent ■ ■ Most of the company’s products are priced between `300-700 1,632 Vande Bharat sleeper services from May These rules, open for public consultation until February 18, mark a pivotal step towards robust data governance ■ FMCGMAJORHINDUSTANUnilever is in talks to acquire direct-to-consumerbeautystartupMinimalistina deal valued at »INSIDE« about `3,000 crore ($350 milFMCG lion). That’s well REVENUE above MinimalGROWTH LIKELYTO ists’ last known STAY MUTED valuation of PAGE 4 around $75 million.HUL’sinvestmentarmUnileverVenturesinvested inMinimalist’sSeriesAroundin2021 andholdsaminoritystake. If the deal goes through, Minimalist would join a host of beauty and personal care brands at HUL like Dove, Pond’s, Lakme, Lux, Simple,Acne-Squad and Lifebuoy. The founders of Minimalist, Jaipur-based siblings Mohit and RahulYadav,togetherown83.7%of the company, while the earliest backer Peak XV holds a 6% stake as 1,849 STARTING THE NEW calendar year on a positive note, Bank of Baroda, Bank of India, Yes Bank and IDFC First Bank have reported strong growth in advances and deposits in the third quarter, reports Sachin Kumar. ■ PAGE 6 AYANTI BERA Bengaluru, January 3 A specialised committee will determine which categories of personal data must remain within India’s borders ■ 1,545 Banks post strong growth in advances and deposits in Q3 THE GOVERNMENT ON Friday released the draft rules under the Digital Personal Data Protection (DPDP) Act, introducing specific provisions governing cross-border data flow,parental consent forprocessing children's data and new obligations for data fiduciaries. These rules, open for public consultation until February 18, mark a pivotal step towards robust data governance. Central to the draft is the government'scontrolovercross-border data flow.A specialised committee, appointed by the government, will determine which categories of personal data must remain within India’s borders. Additionally, data fiduciaries seeking to process personal data outside India must comply with specific conditions to be outlinedthroughgovernmentnotifications. Officials suggest that these measures aim to safeguard The draft mandates that significant data fiduciaries conduct annual data protection impact assessments ■ Minimalist, Jaipur-based siblings Mohit and Rahul Yadav, together own 83.7% of the company 1,000 THE COUNTRY'S SMARTPHONE market is expected to cross $50 billion (`4.3 lakh crore) in value in 2025, according to Counterpoint Research. The growth will be driven by the premiumisation trend. ■ PAGE 4 JATIN GROVER New Delhi, January 3 WHAT LIES AHEAD ■ The founders of 816 Market value of smartphones to cross $50 bn in 2025 data flow at govt’s discretion IN THE CART FY21,beautystartup outlierinthespace IndusInd Bank SHARES OF CITY Gas Distribution companies rallied up to 6% on Friday after the oil ministry slashed allocation of natural gas used for LPG production and diverted it to city gas retailers. ■ PAGE 2 ● Cross-border ● Profitablesince Tata Motors Govt boosts gas supplies to CGD firms, stocks rise gripondatahandling Bajaj Finance INDIA'S FOREIGN EXCHANGE reserves fell for the fourth consecutive week and stood at an eight-month low of $640.28 billion, as of December 27, data from RBI showed on Friday, reports Reuters. ■ PAGE 6 Bajaj Finserv Forex reserves at eight-month low of $640.28 bn HULnears deal to buyD2C Draftrulestightengovt brand Minimalist for `3k cr PENALTYFORDPDPACTVIOLATIONCANREACH`250CR Maruti Suzuki IN THE NEWS 2023-24 2011-12 2022-23 “At an aggregate level, we believe povertyrates in India could nowbe in the range of 4-4.5%with almost minimal existence of extreme poverty,” noted Ghosh. In 2011-12, the poverty rate was 21.9% and in 2004-05, it was 2023-24 2011-12 4-4.5 37.2%. These observations corroborate a statement made by Niti Aayog CEO BVR Subrahmanyam in February this year, following the release of HCES 2022-23 results, that population of the poor in 2022-23 2023-24 Source: SBI Research, HCES India is already below 5%. The monetarythreshold forpovertyset by the Tendulkar committee (2009) was extrapolated by the think tank for making that assessment. SBI Reserach has drawn, based on the HCES 2023-24, the new poverty line for rural areas at monthly per capita consumption expenditure (MPCE) of `1,632 and for urban areas at `1,944. 201112, the respective figures were `816 and `1,000. However, the negative growth rates in real wages for rural occupations over the recent years appear to be at variance with these estimates. According to the HCES 202324,the lowest fractile class in rural areas at 0-5% had MPCE of `1,677 in 2023-24, up 22% from `1,373 in 2022-23. In urban areas, the corresponding MPCE was `2,376 in 2023-24, up 18.7% from `2,001 in 2022-23. In 2023-24, the consumption inequality, both in rural and urban areas, declined from 2022-23. The Gini coefficient has declined to 0.24 in 202324 from 0.27 in 2022-23 for rural areas and to 0.28 from 0.31 for urban areas. Continued on Page 10