Markets are tenuous — here's why

Top of the Morning

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, August 8, 2024. My name is Nelson John. Let's get started:

After crashing for a few days, the Indian equity markets recovered on Wednesday. Sensex and Nifty were up by more than 1.1 percent.

Ram Sahgal writes that much of yesterday's recovery could be attributed to a change in investor sentiment. The Bank of Japan's deputy governor soothed investors by saying that the sell-offs were temporary, and adopted a dovish stance. Markets in Japan crashed after the BOJ increased its interest rates by 25 bonus points, and its effects were felt in bourses all over the world — including India. However, market experts told Ram that any more conflicts arising in the Middle East could yet again lead to more selling of stocks.

Bangladesh was born in 1971, after being carved out of Pakistan. It was a nation grappling with poverty and socio-economic challenges and several coup attempts. However, it achieved a remarkable feat in just about four decades when it emerged as the world’s second-largest garments exporter. Bangladesh capitalized on the availability of labour to produce garments at cheaper rates and became an exporting hub, with the sector making up about 85% of its total exports. As the country continues to combat domestic unrest, Payal Bhattacharya explains the country's economic progress and the reason why a stagnant economy led to the ouster of Sheikh Hasina.

Tata Motors sells 80 percent of four wheeler electric vehicles sold in India today. But it's not resting on this laurel. Its latest model the Curvv is priced rather aggressively. Alisha Sachdev writes that such prices, combined with the reduced GST on EVs, has helped Tata corner such a large share. Alisha spoke to Sailesh Chandra, MD of Tata's passenger vehicles division. Chandra avoided calling this pricing as strategic, which is competitive with Tata's petrol and diesel versions. Tata hopes to buck the trend of slowing four wheeler sales with this launch — and its pricing will definitely help.

If you were planning on becoming an investment advisor as a career option, you'd have to register with Sebi to pursue it. Becoming a registered investment advisor or a research analyst is a long process — or at least was, until Monday. Late on Tuesday evening, Sebi came out with a draft proposal that would ease the requirements for one to become an RIA or an RA. Neil Borate and Anil Poste break down these requirements, and tell you how this notice is a shot in the arm to India's beleaguered investment advisory landscape.

Kota - was the mecca for any competitive exam aspirant. Millions of kids flocked to the coaching capital of India to try and become an engineer, doctor, or civil servant. But of late, the inflow of students has reduced greatly. A couple of years ago, nearly 200,000 students used to come to Kota. This year, coaching centres peg that the number has reduced to just around 70,000, writes Devina Sengupta. But it's not just teachers and coaching institutes that are suffering: an entire ecosystem that was built to support the large influx of students is now floundering as well. Devina presents an on-ground report from Kota about the current situation and a historical review of the town.

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Show notes:

Bear retreat lifts market, but worries stay on

Bangladesh’s economic rise and the new crisis, in charts

Tata Motors aims to match its EV prices with rivals' conventional SUVs

How Sebi’s reforms could transform India’s investment advisory landscape

Why coaching capital Kota has failed its entrance test