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

A round-up of top newspaper stories to keep you ahead of others.

#1. G20 finance meet finds common ground in economy, cryptocurrency framework

The third meeting of the finance ministers and central bank governors of the G20 has concluded with an outcome document and summary that saw member countries agreeing on almost all issues, ranging from a common framework for debt, strengthening multilateral development banks and a swift implementation of the crypto asset reporting framework.

Why it’s important: India has been pushing for a global framework to regulate cryptocurrencies. The important first step has been taken, which the G20 grouping would now need to build upon.

#2. Indian investors ride the big tech wave in the US, double allocations in stocks

Indians have jumping on the bandwagon of rising US tech stocks as investors have more than doubled their allocations to global tech leaders in the past six months. Tesla, Amazon, Apple, Microsoft, Google, Facebook and Nvidia are among the top stocks traded on online platforms that enable Indians to invest in the US stock markets. These platforms saw trading volumes rise by about 40 percent in the first half of 2023 compared with the second half of 2022, according to brokers.

Why it’s important: India’s millennials and NRIs have been among the key investors who see the value of investing in US tech stocks and have actively started tracking global equities.

#3. Global inflation could remain elevated for longer, IMF chief says

The medium-term growth prospects for the global economy remain weak, and high food and fertilizer prices are particularly concerning, International Monetary Fund’s managing director Kristalina Georgieva has said. Georgieva said inflation could remain higher for longer, requiring even more monetary policy tightening.

Why it’s important: Retail inflation has risen unexpectedly in India as well, driven by higher food prices. The Reserve Bank has been holding rates for now, but a reversal of tightening monetary policy seems remote.

#4. Regulator to issue guidelines on disclosures and onboarding of foreign investors

The Securities and Exchange Board of India will soon issue a standard operating procedure for designated depository participants, which act as a link between the market regulator and overseas investors, regarding disclosures and onboarding of foreign portfolio investors. The move will discourage DDP shopping by foreign investors and is being framed after discussions with the industry.

Why it’s important: The standard operating procedure would avoid any form of regulatory arbitrage, even as new disclosure norms aimed at certain overseas investors become operational soon.

#5. Gautam Adani reassures shareholders of good governance at annual general meeting

Billionaire Gautam Adani has underlined his group’s commitment to improving governance standards during Adani Enterprises first shareholder meeting after allegations of stock manipulation and accounting fraud made by US-based short-seller Hindenburg Research earlier this year. Adani was confident about the conglomerate’s growth prospects amid India’s ambitious infrastructure spending and economic resilience.

Why it’s important: The Adani Group has been clawing back credibility after a damaging market rout following the Hindenburg report. Gautam Adani has said he remains confident about governnce and disclosure standards.

#6. Multilateral development banks need to increase annual spending by $3 lakh crore

Multilateral development banks will need to increase their annual spending by $3 lakh crore by 2030, including $1.8 lakh crore for additional climate action and $1.2 lakh crore to achieve other sustainable development goals, according to the suggestions of a panel headed by N.K. Singh and Lawrence Summers. G20 members will now discuss the recommendations of the report.

Why it’s important: As current president of the G20, India intends to utilize the forum that constitutes all the major economies to boost the effectiveness of multilateral development banks for developing nations.

#7. Flagship businesses of corporate India giving older chief more time to steer companies

Older chief executives of Indian companies with mature and complex business streams as well as large profit and loss statements and balance sheets are getting longer tenures after the pandemic. Senior executives in their late 50s and 60s are either being appointed or having their appointment terms extended by risk-averse India Inc boards that increasingly prefer perseverance to panache.

Why it’s important: The huge pandemic shock has seen company boards turn conservative, valuing experience and familiarity over younger blood. Muted demand and squeezed margins in recent times have contributed to this trend.

#8. India’s infotech companies make hard pivot to generative artificial intelligence

All technology services companies, particularly those based in India, have become aggressive about riding the artificial intelligence wave. Bellwether firm Infosys, for instance, is entering into a framework agreement with one of its existing strategic clients to provide AI and automation-led development. Similar developments are taking place in other IT firms as well.

Why it’s important: Rapidly evolving generative AI has the potential to transform the ways economies and businesses operate. For tech firms, its either rise the wave or get left behind.

#9. Online smartphone sales muted ahead of this year’s festive season

India’s smartphone market is showing signs of recovery in the second quarter of 2023 ahead of this year’s festival season. However, smartphone sales in 2023 via e-commerce may not reach the highs of last year, analysts predict.

Why it’s important: the main reason offline may lead smartphone sales is because brands are increasingly ramping up their brick-and-mortar footprint in the country. This would take away share from online sales.

#10. Opposition band together under INDIA banner to defeat NDA in 2024 general elections

Twenty-six opposition parties have announced a pre-poll alliance called the Indian National Developmental Inclusive Alliance, INDIA, to take on the National Democratic Alliance led by the Bharatiya Janata Party in the 2024 Lok Sabha elections. The BJP has countered the move by rallying 38 parties in it grouping.

Why it’s important: Political maneuvering has been scaled up a notch as the country braces for a general elections next year. A nationwide opposition unity could give a tough fight to the BJP, which is predicted to return to power under the leadership of Prime Minister Narendra Modi.