Morning Scan: All the big stories to get you started for the day

Morning Scan: All the big stories to get you started for the day

#1. Regulator finds WhatsApp violated India’s competition law with 2021 service terms

Three years after a contentious update to WhatsApp’s privacy policy and service terms outraged users, India’s competition watchdog has concluded that the messaging giant’s parent Meta broke the country’s competition law that prohibit abuse of dominance, the Mint reported. The Competition Commission is set to issue an order in the case that could include a penalty.

Why it’s important: India is the most important region for Meta and WhatsApp because the messaging app has close to 536 million users, the highest in the world. WhatsApp has faced regulatory action in other countries as well for abusing its dominant position.

#2. With Noel Tata in charge, Tata Group may reconcile differences with Shapoorji Pallonji  

Seven years after a bitter corporate battle, the Shapoorji Pallonji and Tata groups could be making efforts to reconcile as Noel Tata takes charge of the Tata Trusts, the Hindu Businessline reported. Noel Tata is married to Aloo Mistry, daughter of the late Pallonji Shapoorji Mistry. He is known for his non-confrontational leadership style and could be a potential mediator.  

Why it’s important: For Shapoorji Pallonji, a reconciliation with the Tata Group would ease financial challenges. But the future of its stake in Tata Sons, valued at over Rs 3 lakh crore, could be a sticking point.

#3. Reliance Industries in discussions to acquire stake in Karan Johar’s Dharma Productions  

Reliance Industries is in talks to purchase a stake in Bollywood producer and director Karan Johar's Dharma Productions, the Economic Times reported. Johar has been trying to monetise his stake in Dharma, but deals have fallen through due valuation disagreements. Johar owns 90.7 percent in Dharma.

Why it’s important: A deal will strengthen Reliance’s position in content production. Dharma’s pursuit of a partnership underscores the financial challenges facing Hindi film industry, including rising production costs, falling theatre attendance and growing popularity of streaming platforms.

#4. Ola Electric faces regulatory action for misleading pricing practices, may lose subsidy  

The Automotive Research Association of India has raised concerns over Ola Electric’s recent pricing practices. It flagged Ola’s failure to inform it about a price reduction for a model before the launch of a sale. It sold its S1 X 2 kWh model for Rs 50,000 but declared an ex-factory price of Rs 75,001 to ARAI.

Why it’s important: India’s largest electric scooter maker could face legal action and lose its subsidies. The development comes after ARAI was directed to investigate consumer complaints related to the company.

#5. India’s startups make small gains through IPOs but provide lucrative exits for investors  

In 2024-25 so far, the offers for sale have accounted for 64 percent of startup IPO share sales, the highest in four years, against 51.21 percent in the overall IPO market, the Mint reported. For comparison, in 2021-22, OFS by investors accounted for 48 percent of the total startup IPO share sales by value, against 63.3 percent in the broader IPO market.

Why it’s important: IPOs have been the most favored exit route for startup investors looking to harvest the faith they placed in an emerging company. While this means startups raise less capital from IPOs, it leaves more money on the table for new investors looking to ride India’s startup wave.

#6. Companies mobilize record Rs 88,678 crore via qualified institutional placements this year 

Fundraising via qualified institutional placements has hit a record high in 2024 with favourable valuations and liquidity support prompting big-ticket launches by large corporate firms, the Business Standard reported. So far, 71 firms have raised Rs 88,678 crore through this route, the highest in a calendar year.

Why it’s important: QIPs are the preferred mode for raising follow-up fresh capital in a bull market because they are time efficient and inexpensive. The gains in equity markets have helped stocks command higher valuations, which in turn helped companies raise capital with lower dilution.

#7. Regulatory panel mulls allowing mutual funds to offer schemes that invest fully in commodities  

A committee appointed by the Securities and Exchange Board of India is deliberating on whether mutual funds can launch a separate category of actively managed funds that invest fully in commodities via exchange traded commodity derivatives, the Hindu Businessline reported. In 2019, the watchdog had allowed funds to participate in ETCDs. For multi-assets schemes, the exposure to ETCDs was capped at 30 percent of the net asset value of the scheme. The cap for other hybrid schemes was 10 percent.

Why it’s important: There could be opportunities to provide good returns in this segment. Mutual fund investors could make money if the regulator allows the schemes to hold net long positions.

#8. India might raise bar to restrict entry of substandard steel from Chinese mills  

The central government could soon expand the ambit of its stringent quality norms amid an increase in large-scale dumping of substandard steel, largely from China, the Economic Times reported. The development comes after a comprehensive review of local production and imports by the steel ministry in early October, which revealed the sector’s increased vulnerability to global trade diversions.

Why it’s important: India is a net importer of steel. Stringent quality checks could stem the tide of imports as producers scour for markets amid sluggish demand and steep duties imposed by the US and the EU.

#9. Infosys hands out promotions to 25 senior executives after exodus in past two years  

Infosys has rewarded at least two dozen senior executives with top spots this year in what could be the biggest promotion drive in the company’s history following a senior management exodus in the previous two years, the Mint reported. The IT company has promoted 25 employees, most of whom have been with it for at least two decades, to executive vice-president and senior vice-president roles.

Why it’s important: Infosys handed out promotions to retain its best executives and ensure continuity for its top clients. The promotions come after Infosys lost top-level talent to rivals over the past two years.

#10. State Bank of India talent emerge as high-yielding assets for private sector banks  

In the past six months, at least three former State Bank of India executives have been appointed managing director and CEO of different private sector banks, with Partha Pratim Sengupta being the latest at Bandhan Bank, the Business Standard reported. There are now six private sector banks where the CEO is from SBI, with Sengupta set to become the seventh. Additionally, there are three banks, including one public sector lender, where a former SBI official serves as a non-executive chairman.

Why it’s important: The banking regulator seems comfortable with the idea of an SBI official heading other banks. Appointment of a public sector banker as CEO provides stability to a private sector lender.