Gold prices surge amid festive fervor, global cues

Gold prices surge amid festive fervor, global cues

In the latest edition on Business Bytes, we delve deeper into:

  • About 91% of Indian consumers plan for festive shopping
  • LEAD: Gold prices in India hit a record high of Rs 78,300 per 10 grams on October 2, driven by increased safe-haven buying
  • Media companies are expected to grow ~8% annual revenue to Rs 60,000 crore by fiscal 2027, driven by digital expansion
  • FACT: Navratri festivities are set to generate over Rs 50,000 crore nationally, with Delhi expecting over Rs 8,000 crore
  • An RBI research paper suggests increasing private mandis to improve the income of farmers and transparency in marketing Tomato, Onion, and Potato (TOP) vegetables
  • HIGHLIGHT: RBI reported a 52% increase in earnings from its overseas reserves in the June quarter, driven primarily by higher returns on treasury bonds and interest from deposits with other central banks.
  • India’s decision to allow the export of non-basmati white rice on October 2, 2024, and reduce export duty on parboiled rice has led to a global drop in rice prices

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About 91% of Indian consumers plan for festive shopping

With the vibrant festive season in India on the horizon, Glance has released a report called “The Marketer’s Guide to India’s Festive Season.” Based on a survey of Indian mobile users, the report provides data-driven insights, presenting valuable opportunities for brands to engage with consumers during this high-spending festive period.

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LEAD STORY

Gold prices in India hit a record high of Rs 78,300 per 10 grams on October 2, driven by increased safe-haven buying amid escalating geopolitical tensions in the Middle East and a decline in US bond yields. The Rs 1,500 jump from the previous day highlights global uncertainties that are prompting investors to seek the stability of gold.

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Media industry set for 8% growth by 2027 amid digital surge

Media companies are expected to grow ~8% annual revenue to Rs 60,000 crore by fiscal 2027, driven by digital expansion. The digital segment’s share is set to increase from 12% to 18%, despite initial profitability challenges. Improved ad targeting and cost management will help operating margins rise to 18%.

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FACT OF THE DAY

The ten-day Navratri festivities, including Ramleela, Garba, and Dandiya, are projected to generate over Rs 50,000 crore in business nationwide, with Delhi alone expecting more than Rs 8,000 crore. The Confederation of All India Traders (CAIT) anticipates over 100,000 festive events showcasing a range of religious and cultural programs.
Image Credit: Pexels

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RBI study reveals low farmer earnings, recommends private mandis

An RBI research paper suggests increasing private mandis to improve the income of farmers and transparency in marketing Tomato, Onion, and Potato (TOP) vegetables. The study found that farmers receive only 33-37% of consumer spending for these vegetables. It also recommends leveraging e-national agricultural markets (e-NAM) and introducing futures trading in onions to reduce market inefficiencies.

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HIGHLIGHT OF THE DAY

The Reserve Bank of India (RBI) reported a 52% increase in earnings from its overseas reserves in the June quarter, driven primarily by higher returns on treasury bonds and interest from deposits with other central banks. However, potential rate cuts by the US Federal Reserve could impact these gains in the future.

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Global rice prices fall as India starts white rice exports

India’s decision to allow the export of non-basmati white rice on October 2, 2024, and reduce export duty on parboiled rice has led to a global drop in rice prices. The new supply, supported by an upcoming harvest and increased state inventories, helped lower costs, benefiting importers in Asia and Africa.

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