The Rapid Rise Of The Sensex Is A Worry | How Much Screen Time Is Good | Govindraj Ethiraj: The Core

On Episode 331 of The Core Report, financial journalist Govindraj Ethiraj talks to Pratik Jain, Partner at PwC India.
SHOW NOTES
• (00:00) The Take
• (05:02) Stories Of The Day
• (05:38) The Rapid Rise Of The Sensex Is A Worry
• (08:46) How much rainfall do we really need?
• (10:36) GST, lower numbers & seven years on
• (24:19) How much screen time do Valley Tech CEO kids get?
It's 80,000 times. The Speed Is Concerning:
On Wednesday, benchmark indices reached new record highs, led by financial giants such as HDFC Bank, State Bank of India, Axis Bank & Kotak Bank. The BSE Sensex index surpassed the 80,000 mark for the first time, peaking at 80,074 & closing at 79,987, up 545 points. The Nifty50 on the NSE also hit a new high at 24,307.25, ending at 24,287, up 163 points. The BSE MidCap & BSE SmallCap indices each rose by 0.86%. Despite these highs, the rapid market growth warrants caution, with little fundamental change except steady growth & return to political continuity. HDFC Bank notably rose 4% to Rs 1794. This is the Sensex's third fastest 5,000-point intraday rise, achieved in just 57 days, from April 9 to July 3, per Business Standard. The record was set nearly three years ago over 28 trading days. During this period, M&M surged over 37% to Rs 2900. However, excessive valuations are noted in small & mid-caps, particularly public sector defence & companies venturing into electric vehicles, with stocks surging without profit increases. Sunil Singhania of Abakkus AMC advises caution, noting the Nifty's PE ratio is close to the 10-year average, suggesting reasonable market valuations rather than euphoria.
How Much Rainfall Is Important:
The monsoon has started poorly with an 11% rainfall deficiency in June, impacting food prices, particularly vegetables. Despite the poor start, Siraj Hussain notes if IMD's forecast holds & rain distribution improves, kharif crop production should still be adequate. Southern India has received 14% excess rainfall, yet reservoir levels remain low, impacting crop production in Karnataka & Maharashtra. Normal July rains could stabilize vegetable prices by September.
GST Collections Are Down, The Broader Pictures:
Goods & services tax collection for June 2024 stood at Rs 1.74 trillion or Rs 174,000 crore, a 7.7% year-on-year (Y-o-Y) growth, an official source told Business Standard. This Y-o-Y growth is notably less than 12.4% & 10% increases recorded in April & May, respectively. Month-on-month figures, too, were flat. In May this year, the gross GST collection amounted to Rs 1.73 trillion while April witnessed a record-high GST collection of Rs 2.1 trillion. The June revenue brought the financial year-to-date total to Rs 5.57 trillion, said the source. The official acknowledged to Business Standard that growth is not as robust as in past months, with various underlying factors contributing to this. Nevertheless, the upward trend is expected to continue in the upcoming months, with gross collections likely to remain above the Rs 1.6 trillion mark,” the official said. I reached out to Pratik Jain, Partner, Indirect Tax at PWC to get a sense on how he was viewing tax collection numbers but also to ask about how, 7 years on, where GST collections stood.
Data Centres Are Going Nuclear:
Data centres, now significant energy consumers due to high-intensity AI chips, are increasingly powered by nuclear energy to meet their massive electricity needs. Amazon Web Services is close to securing power directly from a nuclear plant on the East Coast with Constellation Energy, aiming for 24-7 carbon-free power. This strategy raises concerns about diverting existing power resources, which could affect prices & emission targets.
How Much Screen Time Is Good?
Tech leaders like Peter Thiel & Evan Spiegel strictly limit their children's screen time, mindful of its potential harm. Thiel allows only an hour & a half per week for his young children, echoing a cautious approach among tech executives about the pervasive influence of screens & social media on youth.
#stockmarkettoday #financenews #techtrends #aiadvancements #investmenttips #gstupdate #monsoon2024 #screentimedebate #screentimemanagement #nuclearenergy #marketanalysis #govindrajethiraj #thecorereport #thecore
Listeners! We await your feedback.... (tinyurl.com/TCR-Listener-Survey)
For more of our coverage check out thecore.in (www.thecore.in/)
Support the Core Report (thecore-in.mojo.page/support-...) --
Join & Interact anonymously on our whatsapp channel (whatsapp.com/channel/0029Va5t...)
Subscribe to our Newsletter (www.thecore.in/category/podca...)
Follow us on:
Twitter ( / the_core_in )
Instagram ( / the.core.in )
Facebook ( / thecore.biz )
Linkedin ( / thecore-in )
TH-cam ( / @thecore_in )