Reform-Driven Market Optimism in South Africa Faces Ongoing Risks and Uncertainty

10th December 2024  South Africa ended last week on a positive note, with the JSE FTSE All Shares Index adding 0.11%, driven by growing investor optimism. Political stability under the Government of National Unity (GNU) has contributed to market confidence, particularly with over 250 days of uninterrupted electricity supply. Incremental reforms, such as privatization in energy and infrastructure, have also helped improve sentiment. Retail and banking stocks could see increased interest, supported by pension reforms that enhance liquidity, while South African bonds have gained on expectations of steady growth without inflationary pressures. This positive momentum suggests a bullish near-term outlook for equities, especially in sectors benefiting from reforms. However, the medium-term outlook remains uncertain due to ongoing structural challenges.

Despite these gains, South Africa faces significant challenges, including high unemployment, bureaucratic hurdles, and underinvestment in sectors like mining. While incremental improvements provide market confidence, caution remains, recalling past periods of optimism that faded without substantial change. Persistent challenges suggest a cautious investor sentiment, with risks of slower growth and potential market corrections if reforms stagnate.

Meanwhile, foreign investors continue to favour government bonds, purchasing ZAR 25.8 billion in bonds this year while selling ZAR 127 billion in equities. Bonds have delivered strong returns, while equities face external risks such as U.S. tariffs and China’s economic slowdown. This preference for bonds over equities may weigh on South African stocks and limit substantial upside potential.

The 2025 TVS Ronin Debuts at Motosoul 4.0 with Stunning Design and Upgraded Tech

 TVS  Ronin

Chandigarh, 10th December 2024 TVS MotoSoul 4.0, the premier celebration of motorcycling organised by the TVS Motor Company, concluded at Vagator, Goa with an impressive display of innovation, diverse racing formats, and pioneering collaborations. On the final day of the festival, the new and refreshed 2025 TVS RONIN was unveiled. The motorcycle, now available in two striking color options—Glacier Silver and Charcoal Ember—perfectly balances timeless retro design with cutting-edge modern features. It has updated vibrant colours, graphics, state-of-the-art connected technology and performance tailored to suit any mood.

The final day at TVS MotoSoul 4.0 brought an adrenaline-fueled climax to the thrilling new motorcycle race formats that pushed riders to the limits. From high-speed flat track races and gritty dirt track challenges to intense obstacle courses and more, the competition was fierce and the excitement palpable. These high octane events not only showcased the riders’ skills but also elevated the energy of the festival, bringing together a community united by their shared love for the machine. With each race, the thrill of the ride reached new heights, solidifying TVS MotoSoul as the ultimate celebration of motorcycling passion.

Commenting on the last day of the festival, Mr. Vimal Sumbly, Head Business – Premium, TVS Motor Company said, “TVS MotoSoul 2024, with its theme ‘Feel the Adrenaline, Feel the Inspiration, Feel the Groove,’ has been a true celebration of passion, creativity, and community. With every edition, we aim to elevate the spirit of motorcycling, offering exciting experiences for riders and enthusiasts alike. It is inspiring to see the motorcycling community thrive, and we remain dedicated to creating unique experiences that strengthen the bond between man and machine.”

New Unveil (All New TVS RONIN):

The New TVS Ronin impressed with the unveil of two striking new color options: Glacier Silver and Charcoal Ember. These colors replace the previous Delta Blue and Stargaze Black. The new colours enhance the motorcycle’s lineup and upgrade the mid-variant, reinforcing TVS Motor’s commitment to innovation and customer satisfaction.

For the first time, the mid-variant will be equipped with Dual-Channel ABS, which enhances safety and stabiliy for riders. This upgrade creates a more consistent differentiation across all three variants of the TVS Ronin, providing clear distinctions not only in color and graphics but also in functionality.

Collaboration with GIVI:

TVS Motor Company also announced an exciting new collaboration with GIVI, a global leader in motorcycle luggage systems, aimed at delivering an elevated and integrated riding experience for enthusiasts. This partnership will offer a comprehensive range of premium luggage solutions tailored to various riding styles and storage needs, seamlessly blending functionality with style. As part of the collaboration, custom-designed frames and mounts will be developed specifically for TVS two-wheelers, providing riders with a seamless, innovative luggage solution that enhances both practicality and riding enjoyment. This partnership marks a significant milestone in the evolution of two-wheeler accessories, bringing together cutting-edge design and convenience for the modern motorcyclist.

Retail Giant Vishal Mega Mart to Open ₹8,000 Crore Initial Public Offering in December

Chandigarh, 10th December 2024: Vishal Mega Mart Limited (VMM), shall open the Bid / Offer Period in relation to its initial public offer of the Equity Shares on Wednesday, 11th December, 2024 and close on Friday, 13th December 13, 2024. The Total Offer Size of equity shares (face value ₹ 10 each) aggregating up to ₹8,000 crore comprises of offer for sale by Kedaara Capital-led Samayat Services LLP.

VMM is one of India’s leading retail players, achieving ₹8,900 crore in revenues in FY24. The company has 645 stores across 414 cities in 30 states and union territories, with 11.5 million retail sq. ft. VMM offers a diversified merchandise mix, with Apparel contributing 45% of sales, General Merchandise 28%, and FMCG 27%.

  • Track record of profitable and capital-efficient growth
  • Double-digit same-store sales growth across categories
  • Leadership in opening price points across product categories with a diverse and growing portfolio of own brands
  • Capital-efficient, Omni-channel platform

The Anchor Investor Bid/Offer Period opens and closes on Tuesday, 10th December, 2024. The Equity Shares are proposed to be listed on BSE and NSE. The Book Running Lead Managers (BRLMs) to the Offer are:
Kotak Mahindra Capital Company Limited, ICICI Securities Limited, Intensive Fiscal Services Private Limited, Jefferies India Private Limited, J.P. Morgan India Private Limited, and Morgan Stanley India Company Private Limited.

  • 50% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs)
  • 15% of the Offer shall be available for allocation to Non-Institutional Bidders
  • 35% of the Offer shall be available for allocation to Retail Individual Bidders

RuPay Expands Footprint with New ‘On-The-Go’ Campaign to Simplify Transit Payments

Chandigarh, 10th December 2024: The National Payments Corporation of India (NPCI) has launched its latest campaign, ‘RuPay On-The-Go,’ to promote awareness and adoption of the RuPay National Common Mobility Card (NCMC). This campaign positions RuPay NCMC as the ultimate payment solution for transit, delivering unmatched speed, convenience, and ease of use.

The RuPay NCMC is an innovative payment solution that addresses the challenges of India’s transit ticketing systems. With its unified, open-loop, and interoperable design, the card consolidates payments for metro, bus, tolls, parking, and retail into a single, seamless solution. With the stored value function, travellers enjoy swift, offline transactions, ensuring a quick and uninterrupted journey, even without internet connectivity.

RuPay NCMC operates across a growing list of transit networks, including metros in cities like Mumbai, Delhi, Bengaluru, Chennai, Ahmedabad, and Kanpur, as well as bus services in cities like Mumbai (B.E.S.T), Guwahati, Haryana, Jammu, Srinagar, Himachal and Aurangabad.

The ‘RuPay On-The-Go’ campaign highlights RuPay NCMC’s role as the ideal companion for dynamic individuals who value time and efficiency. By enabling multimodal utility across metros and buses, the campaign connects seamlessly with the everyday needs of commuters. The contactless symbol on RuPay cards reinforces its association with public transit, while the card’s versatility as both a transit and payment solution, cements its position as a go-to choice for modern, on-the-move lifestyles.

Kunal Kalawatia, Chief of Products, NPCI, said, “RuPay On-The-Go transforms public transportation in India, offering a quick and convenient transit payment solution. It’s not just a payment method, it’s a lifestyle enabler. Designed for those who push boundaries and demand more from every moment, this campaign positions RuPay as the perfect partner for efficient and seamless transit. By expanding this contactless payment option across metros and buses, we are committed to making the daily commute smoother for millions across the country.”

Sterling Weighs Heavily on GBP/USD as Fed Rate Hike Speculations Intensify

By: Rania Gule, Senior Market Analyst at XS.com

The GBP/USD pair faces multiple challenges as the new week begins, remaining trapped in a narrow trading range near the mid-1.2700 level during Monday’s session. Despite hovering near a more than three-week high above 1.2800, reached last Friday, the market’s fundamental backdrop, in my view, highlights the importance of patience and caution for traders betting on an upward trend.

The latest U.S. Non-Farm Payrolls report is at the forefront, revealing a slight uptick in November’s unemployment rate. While the report bolstered expectations for the Federal Reserve to lower borrowing costs in December, market reactions were short-lived. Instead, fresh bets emerged that the central bank might slow down or pause rate cuts in January, stabilising the U.S. dollar above its one-month low.

This resilience of the dollar, in my opinion, weakens the pound’s attempts to gain upward momentum. The greenback continues to enjoy support from external factors, including global geopolitical tensions, economic concerns surrounding China, and the possibility of new tariffs under President-elect Donald Trump. Together, these factors strengthen the dollar’s appeal as a haven, dampening investors’ appetite for the British pound.

On the other hand, the pound faces additional pressure due to the pessimistic outlook of Bank of England Governor Andrew Bailey. His projections of four rate cuts in 2025 have raised concerns among investors about the British currency’s future. This negative sentiment toward the UK’s monetary policy further complicates any sustainable upward movement for the GBP/USD pair.

Amid these dynamics, traders are eagerly awaiting the release of the U.S. Consumer Price Index (CPI) report, scheduled for Wednesday. This report is expected to offer clearer insights into the Federal Reserve’s monetary policy path, particularly regarding rate cuts during the December meeting. In my view, this data could prove pivotal in shaping the dollar’s short-term movements, thereby determining the next directional phase for the GBP/USD pair.

Simultaneously, the market is keeping an eye on a speech by Bank of England Deputy Governor David Ramsden, also set for Monday. Any additional hints regarding UK monetary policy could impact pound movements, opening up short-term investment opportunities.

Thus, this pair remains governed by a web of complex and interconnected factors, ranging from global geopolitical tensions to market expectations for central bank decisions. With the dollar continuing to benefit from its role as a haven, the pound finds itself in a challenging position, facing both internal and external obstacles that hinder any strong upward movement.

In conclusion, I believe the future of the GBP/USD pair hinges on upcoming economic data, particularly U.S. inflation figures, and official statements from the Bank of England. As markets seek to decipher the monetary policies of both central banks, expectations are fraught with uncertainty, compelling traders to approach with caution and be ready to seize any opportunities amid the volatility.

Vedanta Chairman Anil Agarwal Pushes for Economic Growth and Investment in Rajasthan

Chandigarh, 10th December 2024: Vedanta Chairman Anil Agarwal today called Rajasthan as India’s sweet spot and said that sustainable exploration can increase the state’s growth manifold. Addressing the Rising Rajasthan Summit, Mr Agarwal said there is a wealth of natural resources in Rajasthan including oil, gas, potash, rock phosphate, lead, zinc and silver.

“All the successful countries of the world have developed due to below-the-ground resources. We should also move forward on that path. There are three times more building stone reserves here than Italy. Rajasthan can get a lot of benefit by being a neighbour of the most industrialized state Gujarat, which also has a port. There is oil, gas, potash, rock phosphate, lead, zinc, silver here. If you invest in Rajasthan, you will get profitability quickly,” he said in his speech.

During his speech, Mr. Agarwal announced that Vedanta will invest an additional Rs 1 lakh crore in the state in the coming years. He also announced plans to set up a non-profit zinc park that will provide land, raw materials, and energy supply to hundreds of SMEs, thereby fostering the establishment of around 500 new industries.

Vedanta’s strong and longstanding commitment to the state of Rajasthan has played a key role in driving its industrial and economic growth and is powering Rajasthan’s ambition of becoming a US$350 billion economy by 2030, further strengthening its position as a global hub for metals, minerals, and industrial innovation.

Highlighting their own contribution to Rajasthan’s growth, he shared, “Since 2002, we have invested over ₹1 lakh crore in Rajasthan, creating over 1 lakh jobs and supporting the growth of more than 5,000 companies. We are proud to be the largest taxpayer in Rajasthan, contributing ₹50,000 crore annually to the National Exchequer. We aim to triple this contribution in the coming years.”

Booming Growth: India’s Entertainment and Media Revenue to Soar to INR 365,000 Crore by 2028, Says PwC

Chandigarh, 10th Dec 2024: According to PwC India’s report “Global Entertainment & Media Outlook 2024–28: India perspective,” the Indian E&M industry is projected to grow at CAGR of 8.3% to hit INR 3,65,000 Crore (19.2 Bn USD) outpacing the global rate of 4.6%.

Despite economic challenges and geopolitical tensions, global E&M revenues grew 5.5% year-on-year, from INR 13,891,000 crore in 2022 to INR 17,359,000 crore in 2023. Currently, the US leads the global E&M market by revenue, with China in the 2nd place and India at the 9th.

Manpreet Singh Ahuja, Chief Digital Officer and TMT Leader at PwC India commented, “India’s Entertainment & Media sector is on the cusp of a major transformation. According to our Global Entertainment & Media Outlook 2024-2028, key growth drivers such as digital advertising, OTT platforms, online gaming, and Generative AI are shaping the future of the industry. These rapidly expanding segments are positioning India as a global leader in innovation and growth. Businesses that adapt and innovate in these areas are poised to seize unparalleled opportunities in this dynamic landscape.”

With India’s improved connectivity, rising advertising revenues and favourable Government policies around foreign direct investment (FDI), the country is predicted to see one of the highest growth rates in the next five years. The country’s large millennial and Gen-Z population base of over 91 crore has access to the world’s cheapest data costs. At present, India has 80 crore broadband subscriptions, 55 crore smartphone users and 78 crore internet users. In fact, Indians are spending 78% of their time on mobile phone apps related to E&M. Leveraging India’s strong growth trajectory in the E&M sector, the Government of India is set to host the inaugural WAVES a summit, boosting its E&M sector globally through stakeholder collaboration and innovation.

With growing consumption and gross domestic product (GDP) growth in India, the advertising market is projected to grow at a 9.4% CAGR from INR 1,01,000 crore in 2023 to INR 1,58,000 crore in 2028, which is 1.4x the global average. Most of this growth will come from digital front (internet advertising), which is expected to grow at a 15.6% CAGR, rising from INR 41,000 crore in 2023 to INR 85,000 crore in 2028. Internet advertising’s year-on-year growth, which was 26.0% in 2023, will remain in double digits throughout the forecast period (2024–28), and is expected to be 12.2% in 2028.

This shift towards cord-cutting is expected to accelerate. Traditional TV advertising will grow at a 4.2% CAGR between 2023 to 2028, while global revenues are set to drop by -1.6%. India is poised to become the fourth-largest TV advertising market by 2026.

As per the 2024 outlook, other subsectors will also witness growth that surpasses global averages:

● The total online gaming and esports revenue in India stood at INR 16,480 crore in 2023 and is expected to reach INR 39,583 crore by 2028, growing at a CAGR of 19.2%. With the inclusion of real money gaming (as per PwC’s India Gaming Report ‘24) the total gaming and esports revenue would amount to INR 33,000 crore (4BnUSD) in 2023 and is expected to reach INR 66,000 crore (8BnUSD) by 2028 at a CAGR of 14.5%. Globally, video games and esports revenue will increase at a CAGR of 8.0%.

● Over-the-top (OTT) will be the third-fastest growing segment with a CAGR of 14.9%, putting the country in lead by 2028.

● Infrastructure enhancements have supported massive growth in India’s out-of-home (OOH) advertising market which grew by 12.9% in 2023. It is expected to continue to grow at a 7.6% CAGR.

● When it comes to print advertising revenues, despite a global decline at a CAGR of -2.6%, India’s market is expected to grow at a rate of 3%, making it the 3rd largest Print market in the world by 2028

● India’s cinema market continues to expand, growing at a 14.1% CAGR.

● The total music (live, recorded and digital) revenue grew from INR 2,416 crore (293 Mn USD) in 2019 to INR 6,686 crore (811 Mn USD) in 2023. It is expected to cross INR 10,899 crore (1.3 Bn USD) by 2028, growing at a CAGR of 10.3%.

● At a 5.6% CAGR, India will stand out as having the highest B2B revenue growth rate in the world over the next five years. In contrast, global B2B revenue growth is forecasted at a 1.9% CAGR.

The report highlights four key opportunities in the E&M sector. Internet advertising emerges as the fastest-growing market in Asia-Pacific and the second globally, with a projected 15.6% CAGR (2023–2028). Companies can prioritise regulatory compliance and leverage data analytics to enhance trust and implement targeted advertising strategies.

OTT platforms in India, the world’s fastest-growing, saw a 20.9% rise in 2023, reaching INR 17,496 crore (2.1 Bn USD), and are projected to double by 2028 (14.9% CAGR). Focusing on advertising-supported tiers, market consolidation and regional narratives can boost engagement.

Online gaming and esports are rapidly expanding, projected to represent 9% of the E&M sector by 2028. Promoting responsible gaming and investing in high-quality AAA games will position Indian studios on the global stage. Lastly, generative AI (GenAI) is set to transform content creation, personalisation and monetisation, with over 70% of global companies expected to adopt it by 2025. Early adoption of GenAI in India can drive hyper-personalised content and dynamic advertising campaigns.

The report also outlines strategic approaches for companies to enhance success. It recommends consolidation among regional or niche players through mergers and acquisitions to increase size and scale. It also highlights the use of social media for marketing and distribution, as media companies leverage these platforms for content promotion. The report suggests innovation in content strategy, including esports, online gaming, and indigenous sports to meet changing consumer behaviours. It advises investment in cost optimisation through analytics, audits, and automation to lower operational and production costs. Finally, it points to the use of GenAI for creating hyper-personalised content discovery and improving user experiences, especially for regional players aiming to match the technological capabilities of global peers.

Transforming Lives Through Colors: JSW Paints’ Latest Digital Campaign Shines

Chandigarh, 10th December 2024: JSW Paints, the country’s leading environment-friendly paints company and a part of the US$ 24 billion JSW Group, encapsulates the power of transformation through paint in its latest digital film.

Titled ‘Room of Hope’ and conceptualized by TBWA\India, the film brings to life the journey of an orphanage that, with the help of vibrant colours, turns an empty, lifeless room into a beautiful homestay filled with promise and opportunity. The campaign has been launched across all digital platforms on Monday, December 9th

Capturing heart-warming stories of how acts of thoughtfulness can spark transformation – this film poignantly portrays the struggles of an orphanage striving to provide for its children while balancing limited resources. It explores how a simple idea of repurposing an unused room becomes a beacon of hope. With a fresh coat of JSW Paints playing the catalyst of positive change, the room is transformed into a warm and welcoming homestay.

The film eloquently conveys JSW Paints’ brand philosophy of delivering beautiful messages, showcasing how a simple transformation can empower people to create opportunities for a better future.

Commenting on the new campaign, Mr. A S Sundaresan, Joint MD and CEO of JSW Paints said “A single act of transformation can spark endless possibilities. At JSW Paints, we believe in creating beauty through our products as well as through the stories we tell. This film reflects our philosophy of delivering beautiful messages and showing how thoughtful action can bring about positive transformation to create a better world.”

Mr. Ashish Rai, Chief Business Officer of JSW Paints, added “Extending our commitment beyond paints, we aim to create a positive impact on communities by unlocking the transformative power of colour. The ‘Room of Hope’ celebrates the resilience and vision of people who strive to make a difference, aligning with our values of fostering beauty and opportunity in every space we touch.”

Govind Pandey, CEO, TBWA\India said, “A thought is beautiful when it makes new possibilities come to life. JSW Paints believes in the power of ‘Khoobsoorat Soch’ to create these new possibilities that make an impact on our homes and lives.”

According to Russell Barrett, CCExpO, TBWA\India, “There are so many people doing such amazing work all around us. In this film JSW Paints demonstrates how a beautiful thought can help those very people who have dedicated their lives to making the world a more beautiful place.”

With its heart-warming narrative, ‘Room of Hope’ serves as a testament to the brand’s commitment to creating beauty in spaces while fostering opportunities for growth and community well-being.

Range-Bound Dollar: Investors Look to U.S. Inflation Report for Clues

By Maria Agustina Pati, Financial Markets Strategist Consultant at Exness

“The U.S. dollar started the week trading with low volatility as investors await key U.S. inflation data later this week. Inflation is projected to rise modestly to 2.7%, but a significant overshoot could alter expectations regarding Federal Reserve rate cuts at the upcoming meeting. Markets are strongly expecting a 25 basis point interest rate cut next week. A higher-than-expected inflation reading could also temper the outlook for future rate reductions, providing additional support for the greenback.

Robust U.S. economic data, including stronger-than-anticipated NFP numbers and improved consumer sentiment, continue to stabilize the dollar. Meanwhile, the U.S. 10-year note yield has fallen below the 4.2% mark, weighing on the currency.

While the US dollar has been retracing for the last few weeks, it remains on an uptrend since September. The currency and US yields could find support in any stronger-than-expected data in addition to the cautious comments of the Federal Reserve members and expectations of inflationary policies from the upcoming US administration.”

Optimism for the Mexican Peso: Week Opens Strong Amid Rate Cut Expectations

By Quasar Elizundia, Expert Research Strategist – Pepperstone

“The Mexican peso started the week with a slight gain, awaiting the release of crucial U.S. inflation data. A higher-than-expected figure could dampen potential rate cuts by the Federal Reserve, limiting the recent positive momentum of the peso. Conversely, softer data would reinforce a normalization stance, although not as aggressive as previously considered by the Fed, boosting the appeal of the Mexican currency.

Domestically, annual consumer inflation surprised to the downside in November, standing at 4.55%, below market expectations. This figure, the lowest since March, paves the way for the continuation of the normalization process by Mexico’s Central Bank. However, this news has not had a significantly positive impact on the peso, as a lower interest rate environment could reduce its appeal against the dollar.

Additionally, the inflation outlook is not entirely optimistic. Producer inflation rose to 6.38%, particularly in the primary and secondary sectors. This data could temper an accommodative approach and lead Banxico to be more cautious about the pace of monetary easing.

Looking ahead, the peso’s trajectory will largely depend on the evolution of the Mexican economy. Upcoming data on industrial production and business confidence will be key in determining the currency’s strength. Weakness in these metrics could reintroduce pressure on the peso, while positive surprises could bolster it.”