News 1
Dollar Rebounds as Traders Reduce Odds of Large Fed Rate Cut
The dollar regained some ground on Monday, recovering from last week’s losses, as investors awaited U.S. inflation data following Friday’s mixed payrolls report. The yen weakened by 0.7% to 143.35 per dollar, retreating after a four-day streak of gains, with attention turning to the upcoming U.S. inflation report, a key indicator for the Federal Reserve’s September policy decision.
The euro dipped 0.3% to $1.1048, and the pound fell 0.3% to a two-week low of $1.3083. Against a basket of currencies, the dollar rose 0.37% to 101.56. Friday’s jobs report left traders uncertain about the size of the Fed’s next rate cut. While employment gains were below expectations, lower unemployment and steady wage growth kept speculation alive about whether the Fed would opt for a 25 or 50 basis point cut at its mid-September meeting.
The European Central Bank’s policy meeting on Thursday is expected to result in a 25 basis point cut, bringing its rate to 3.50%. The ECB, which began its rate-cutting cycle in June, is forecast to continue gradual reductions. In China, weak producer prices and a slowing economy reignited calls for further stimulus, while the offshore yuan slipped 0.4% to 7.1215.
News 2
Bajaj Housing Finance IPO Fully Subscribed on Day 1; Retail and NII Segments Oversubscribed
The Bajaj Housing Finance IPO was fully subscribed within four hours of its opening on September 9 and ended the day oversubscribed by 2.02 times, according to stock exchange data. The Non-Institutional Investors (NII) category was subscribed 4.35 times, while the Retail Individual Investors (RII) portion saw a 1.51 times subscription. The Qualified Institutional Buyers (QIB) segment received bids for 19 crore shares, surpassing the 17.75 crore shares available.
Priced between ₹66 and ₹70 per share, the IPO includes a fresh issue of ₹3,560 crore in equity shares and a ₹3,000 crore offer-for-sale by Bajaj Finance. The proceeds will be used to strengthen Bajaj Housing Finance’s capital base, in line with RBI regulations that mandate non-banking finance companies to be listed by September 2025.
Ahead of the IPO, Bajaj Housing Finance raised ₹1,758 crore from anchor investors. The issue's book-running lead managers include Axis Capital, Goldman Sachs, SBI Capital Markets, and others. The grey market premium (GMP) stands at +₹59, indicating a potential listing price of ₹129.5, which is an 85% increase over the IPO's upper price range.
News 3
India, China, and Russia to Jointly Build Nuclear Power Plant on Moon for Future Lunar Colony
India, China, and Russia are set to collaborate on building a nuclear power plant on the Moon by 2033-35, according to reports from Russia’s state-owned agency Tass. The project, led by Russia's nuclear corporation Rosatom, aims to develop a small nuclear plant capable of generating up to half a megawatt of energy, which will support lunar base operations. The announcement was made by Rosatom's head, Alexey Likhachev, during the Eastern Economic Forum, where he emphasized the collaborative nature of the venture with India and China.
Russia's space agency chief, Yuri Borisov, noted that the nuclear plant would be crucial for powering future lunar settlements, as solar panels would not generate sufficient electricity. He added that the installation would be conducted automatically, without human presence. Borisov also highlighted Russia's plans to develop a nuclear-powered cargo spaceship capable of transporting large loads and addressing space debris, though cooling the reactor remains a technical challenge.
This ambitious project marks a significant collaboration between the three nations, with China aiming to send its first astronaut to the Moon before 2030. Despite recent setbacks in Russia's space program, including the Luna-25 mission failure, the country remains focused on further lunar exploration and potential future crewed missions with China.
News 4
Home Loans for Properties Over ₹75L Surge 1.5x in Four Years
Recent reports highlight a robust growth trend in the residential real estate market, particularly within the premium and luxury segments. The share of home loans for properties valued at ₹75 lakh and above has surged from 19% in March 2020 to 31.4% in March 2024, according to Times of India.
Knight Frank's report shows that home loan applications exceeding ₹1 crore now constitute 41% of India's housing sales, indicating a sustained upward trend rather than a temporary spike. The proportion of homes priced over ₹75 lakh has steadily increased from 20.6% in FY21 to 27.3% in FY23.
While public sector banks lead in the market for loans below ₹75 lakh, private banks dominate the ₹75 lakh and above segment. Housing finance companies are prominent in the below ₹35 lakh category. As of March 2024, the total outstanding home loan portfolios across various lenders reached ₹36.2 lakh crore
News 5
Nitin Gadkari Predicts EVs Will Equal Petrol and Diesel Vehicle Costs in 2 Years
Transport Minister Nitin Gadkari stated that the cost of electric vehicles (EVs) will be on par with petrol and diesel vehicles within two years. Speaking at the 64th ACMA annual session, Gadkari noted that subsidies for EVs may no longer be necessary as production costs decrease and consumer preference shifts towards EVs and CNG vehicles.
Last year, EVs held a 6.3% market share in India, marking a 50% increase from the previous year. Bhavish Aggarwal, CMD of Ola Electric Mobility, echoed this sentiment, predicting that EVs will soon be as affordable as or cheaper than internal combustion engine (ICE) vehicles. He highlighted that EVs benefit from decreasing battery costs and potential zero running costs if charged via rooftop solar.
A report by the Rocky Mountain Institute (RMI) supports this outlook, forecasting that EVs could achieve price parity with fossil-fuel vehicles in Europe by 2024 and in the U.S. by 2026. The report also predicts that battery costs will drop significantly, making EVs cheaper to purchase and operate by 2030. RMI's analysis suggests that EV sales will surge, potentially capturing up to 86% of the market by 2030.
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