Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, October 18, 2024. My name is Nelson John. Let's get started.
Indian stock market benchmarks—the Sensex and Nifty 50—extended their losing streak for a third straight session on Thursday. The Sensex slipped 0.61 per cent, while the Nifty 50 declined 0.89 per cent by the close.
It's raining bomb scares, with over 22 hoax threats reported in recent days. In response, the civil aviation ministry is engaging with international bodies to devise strategies for managing such incidents. Mihir Mishra reports that proposed measures include imposing flight bans on offenders. The ministry is also in talks with VPN operators to trace the origins of these hoaxes.
Over 400,000 Indian students are currently enrolled in Canadian universities, but this figure could shrink by 100,000 next year driven by diplomatic tensions and stricter student visa rules. Amid a housing crisis, Canada has introduced a two-year cap on new student permits, with a significant reduction expected by 2025. The financial proof requirement for living expenses has also doubled, prompting students from regions like Punjab and Haryana to explore alternatives in Australia and Europe. The potential drop in Indian enrollments is raising alarms at Canadian universities, where they form a crucial part of the international student community. Devina Sengupta explores the impact of diplomatic strains on the future of Indian students in Canada.
Bajaj Auto's stock price plummeted by 11 per cent on Thursday, after the company announced its Q2 results. The automaker posted a bleak domestic demand outlook for two-wheelers this festive season. Despite a 24 percent increase in year-on-year ebidta, Bajaj's results were well below analyst expectations. Abhinaba Saha writes that this massive selloff casts a huge shadow on not just Bajaj, but the entire two-wheeler industry at large. Entry level products, in particular, have been poor as the market moves to more premium options.
Not long ago, Northern India's political scene would periodically erupt with sugarcane farmers' protests, disrupting traffic and even threatening the capital's water supply due to the notorious "sugar cycle." However, this cycle has been broken thanks to the ethanol blending programme, which has turned excess sugar production into ethanol, stabilizing the industry and benefiting farmers. This shift has not only aided farmers but has also significantly contributed to India's energy security goals. Yet, challenges persist. Grain-based ethanol producers are grappling with rising feedstock costs for rice and maize, raising concerns of financial losses and potential loan defaults. Additionally, diverting maize to ethanol production has inflated poultry feed prices. Sayantan Bera unpacks the successes and hurdles of India’s ethanol blending programme in today’s Long Story.
Byju Raveendran, founder of Byju’s, addressed the challenges facing his company during a candid virtual press conference on Thursday. Amid investor backlash and a bankruptcy filing, Raveendran dismissed rumours of fleeing India, clarifying that his move to Dubai was for his father’s medical treatment and reaffirming his commitment to return and steer the edtech company forward. He defended his leadership, pointing out that the very investors who once backed Byju’s rapid expansion are now retreating as the company grapples with financial troubles. Raveendran also recounted that top investors, including Sofina and Prosus, had sought his ouster, holding him accountable for mismanagement. Despite the setbacks, he emphasized that subsidiaries like Aakash Educational Services remain profitable, contributing to ₹5,500 crore in annual recurring revenue. However, he acknowledged that Byju’s core business has stalled, no longer generating revenue—a stark decline from its peak in 2021.
Govt mulls banning hoax threat culprits from flights, examines global practices
India-Canada row: It’s failing Indian students
Bajaj Auto investors get a demand reality check
Ethanol blending: The good, the bad and the googlies
Raveendran blames investors, eyes new edtech avatar, says $533 mn used u