Can Air India Soar Again?

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In today’s edition — Can Air India reclaim its lost glory?; India’s pharma exports hit new highs; declining rice exports raise concerns; and Bajaj Auto shakes up the e-rickshaw market.

PODCAST

On Episode 504 of The Core Report, financial journalist Govindraj Ethiraj talks to Dr. K Joseph Thomas, Head of Research for Emkay Wealth Management. We also feature an excerpt from our interview with Kamal Kishore Chatiwal, Chairman of Indraprashta Gas Limited (IGL) as part of our Energy Special series with IEW.

1. Markets are now wary of Trump announcements.

2. Will there be more interest rate cuts now?

3. Gold is inching towards Rs 90,000 per 10 gm.

4. Why are there long lines outside India’s CNG pumps?

5. Europe’s stocks are suddenly looking hot.

CORE NUMBER

$27 Billion

This is the total value of India’s pharma exports in 2023, a significant increase from $19 billion in 2018, reflecting an 8% annual growth rate, according to a new report by Bain & Company in collaboration with Indian pharmaceutical bodies. The sector has remained resilient, driven largely by formulations, which account for over 70% of exports, while bulk drugs and intermediates make up around 20%. India’s pharmaceutical industry is also expected to expand even further, with Bain’s projections estimating a market size of $120–130 billion by 2030 and a massive $450 billion by 2047. Despite India’s growing role as a pharma exporter, it remains underrepresented in key global markets, with Bain pointing out that Indian generic formulations account for less than 5% of total pharma sales in North America, Europe, Northeast Asia, and Latin America.

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FROM THE PERIPHERY

—📉 Indian rice export prices have declined to a 19-month low, influenced by increased supplies from the new harvest and a depreciating rupee. The Economic Times reported that India's 5% broken parboiled rice is now priced between $418 to $428 per metric ton, down from $429 to $435 the previous week. A record 60.9 million metric tons of domestic stock, eight times the government's target, combined with a weak rupee, has driven prices lower. However, the excess stock risks depressing domestic prices, impacting farmers. Vietnam's 5% broken rice has also plunged to a 29-month low at $404 per ton, intensifying competition.

—🛺 Bajaj Auto is set to enter the electric rickshaw (e-rickshaw) segment by the end of FY5, marking a significant shift in India's rapidly growing EV market. Unlike electric two-wheelers and cars, e-rickshaws were the first mass EV adoption in India, now forming an estimated $1.3 billion industry. However, the segment remains highly fragmented, dominated by local manufacturers and unorganised players shipping around 45,000 units a month. This move also comes as Bajaj holds nearly 25% market share in electric two-wheelers but trails behind leaders like Ola Electric.

—💰 Despite foreign portfolio investors (FPIs) continuing their selling streak, six of India’s top-10 most valued firms added Rs 1.18 lakh crore in market capitalisation last week, supported by a firm trend in equities. HDFC Bank led the gains, adding Rs 32,639 crore, followed by Bharti Airtel (Rs 31,003 crore) and Bajaj Finance (Rs 29,032 crore). Reliance Industries retained its position as India’s most valued firm with a market cap of Rs 17.14 lakh crore. However, ITC, Hindustan Unilever, SBI, and TCS together lost Rs 1.15 lakh crore, reflecting the ongoing volatility amid FPIs pulling out Rs 7,300 crore from equities last week.

—🤳 Online streaming platforms are struggling to hold audience attention as second-screen viewing—where viewers scroll through their phones while watching content—becomes increasingly common. Over 75% of Indian digital consumers engage in this behaviour, driven by affordable smartphones and better internet access, Mint reported quoting industry sources. AAO NXT CEO Kaushik Das says viewers now expect gripping content from the very first minutes. Samar Khan of Juggernaut Productions acknowledges the challenge, while Warner Bros. Discovery’s Sai Abishek noted that streaming platforms themselves are now creating short-form extras to maintain engagement.

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