BJP scores well in welfare schemes

Top of the Morning

Good morning listeners,

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, May 3, 2024. My name is Nelson John. Let's get started:

Indian markets rose slightly on Thursday. Both Nifty and Sensex were up by around 0.18 percent. Godrej Industries was the biggest loser, washing away gains made by the announcement of its plans to split.

Vedanta is another conglomerate that wants to head for a demerger. It has been preparing for this possibility for months, but the group finally has a crucial go-ahead: that of its lenders. Anirudh Laskar and Shayan Ghosh report that a consortium of lenders, led by the State Bank of India and including Bank of Baroda, ICICI Bank, Axis Bank, and Punjab National Bank, has given its go-ahead for the proposed split of Vedanta Limited into six different entities. Vedanta will now begin the process of dividing its debt worth seven billion dollars into these new companies.

Freshworks now has a new person at the helm: founder and longtime CEO Gireesh Mathrubootham stepped down yesterday. The news did little to excite investors: The Freshworks stock was down more than 25 percent at the time of recording this podcast. Dennis Woodside will be replacing Mathrubootham. Woodside came into the organisation as its president 18 months ago, a period that was meant to be transitional. He has his task cut out, and investors might find him more palatable than his predecessor, writes Ranjani Raghavan.

Another reason why American investors have turned bearish is the lack of interest rate cuts by the US Federal Reserve. For months now, Americans have been anticipating a rate cut. But the Federal Reserve and its chairman, Jerome Powell, have consistently maintained the status quo citing fragile macroeconomic data. Despite Powell's hawkish stance, data show inflation to be favourable. The Fed’s current interest rate is the highest in nearly 25 years, write our partners at the Wall Street Journal. A rate cut now will spur the economy, but the Fed wants to be sure of subdued inflation before confirming any cuts. It's a precarious position, and Americans aren't the only ones watching: every central banking authority throughout the world, including the RBI, looks at the US Federal Reserve for guidance on setting their own interest rates.

All political parties promise some form of welfare schemes as a part of their poll promises. Over the past decade, voters seem to remember the BJP's initiatives fondly. These schemes include monetary benefits as well as construction of roads and toilets. We invited political writer Ruhi Tewari to write about how the incumbent party is faring well on these issues. Ruhi visits Assam, Uttar Pradesh, and Madhya Pradesh to speak to voters and the real effects of the BJP's welfare schemes. Turns out these initiatives haven't trickled down well enough to certain people. Ruhi gets their inputs too as the election season rages on.

Speaking of raging, let's talk about forest fires. Half of Uttarakhand's districts are currently seeing global warming-induced forest fires. In India, an abundance of dry leaves and high temperatures turns out to be the perfect combination to inflame the woods. Sumant Banerjee writes about these fires—their causes, effects, and what the authorities can do to prevent or contain them. It's difficult to fight fire, but we can take measures to mitigate the damage caused by them, he explains.

We'd love to hear your feedback on this podcast. Let us know by writing to us at [e-mail]. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

Show notes:

Vedanta demerger: Key lenders signal green light after months of deliberation

Investors may find Dennis Woodside a better chief for Freshworks

Banking on suvidha: How state welfare schemes can help BJP win a third term

Fed chair Jerome Powell projects optimism, but inflation data in driver’s seat

Burning forests: We did start the fires that rage