Best of the Week: Arrival in Nara

Dear reader,

First off, I'd like to thank my colleagues Sashind Ningthoukhongjam and Ranjani Raghavan for taking over Best of the Week for a couple of editions in December, while Siddharth and I enjoyed some time off.

Now, what did I do on my 18-day break? I moved. I moved houses. I moved cities. And perhaps most excruciatingly, I moved my dog.

I had briefly mentioned last time around that I had recently adopted a dog. I'll regale you with the story of my adoption some other day. For the recent break, I was fretting about my dog on a crowded railway station, and opening boxes for what felt like eternity.

While I'm glad that I had this experience, I wouldn't do it again. Moving houses, let alone cities, is a laborious task. As is inevitable, I also lost a couple of valuable items during the move. 

All said and done, I'm glad to be back in the thick of things. Despite the world hibernating the week between Christmas and the New Year, our newsroom remained as busy as ever. Let's take at the week that was, starting with some markets-related stories:

🐂 What's the connection between Apple's iPhone and Indian stocks? Both became increasingly desirable commodities in 2024. Abhinaba Saha writes that while the upper strata of society continued to buy iPhones, those with less disposable income continued to prioritise necessities. This is called a K-shaped recovery. The Indian stock market mirrored this consumption dynamic: Nifty Realty and Nifty India Consumption indices performed strongly due to a trend toward premiumization. However, FMCG companies struggled due to declining sales. Investors too have caught on to this trend, and are focusing on established premiumization trends, Abhinaba writes.

📊 All said and done, Nifty 50's returns of 9% in 2024 were about average. Expectations for the new year are understandably moderate. Abhinaba writes that despite these forecasts, one sector that is likely to do well is real estate. Consumer durables will also be aided by strong demand and government support. Additionally, banks that will capitalise on the upcoming credit cycle are also likely to fare well, Abhinaba writes.

📉 The Indian stock market experienced significant volatility in 2024, with the Nifty 50 plunging nearly 11% from its September peak amid heavy foreign investor selling and a weakening rupee. Mayur Bhalerao notes that over 25% of stocks are trading below their peak values, presenting potential buying opportunities. However, elevated valuations, particularly in the mid-cap and small-cap segments, continue to be a concern.

😡 In a report released on Monday, the Reserve Bank of India flagged concerns about stress in unsecured retail credit spilling over to larger borrowings, such as housing and auto loans. Shayan Ghosh reports that nearly half of personal loan borrowers also have outstanding secured loans. According to RBI’s Financial Stability Report, defaults in unsecured loans could prompt lenders to classify other loans held by the same borrower as non-performing. While the gross non-performing asset ratio for unsecured loans currently stands at 1.7%, RBI cautioned that rising write-offs could be masking the true extent of asset quality risks.

🏎️ India's overburdened legal system is the recipient of many jokes. However, the tide turned in 2024: district courts disposed of more cases than usual, making it the first time in our country's history that the number of resolved cases exceeded pending ones. Manas Pimpalkhare writes that this was the result of enhanced efficiency driven by technological integration and virtual hearings. The central government's eCourts scheme received a lot of funding and support to improve how cases are handled, Manas writes.

🐍 According to the Chinese zodiac, 2025 is the Year of the Snake—symbolizing flexibility, growth, and change. Devina Sengupta writes that India Inc. is set to experience all these dynamics, with employees expected to switch jobs at a faster pace. Companies will likely go beyond salary hikes to focus on upskilling initiatives. While rural hiring in the FMCG sector is projected to rise by 10%, weak consumer demand, driven by inflation, may dampen growth. High demand for talent is anticipated in sectors like AI, data science, and digital transformation. Compensation increases are forecasted to average around 9.5%, underscoring the competitive landscape for skilled professionals.

🇺🇸 America's sought-after H-1B visa is under the scanner because of anti-immigration concerns in the US. This visa is essential for hiring specialized foreign workers. Usually, skilled workers from India and China are first in line for such a visa. Shelley Singh writes that Elon Musk's interest in hiring more workers via the H-1B visa is at loggerheads with US president-elect Donald Trump's conservative supporters, who want tighter immigration norms. However, the Indian IT sector is becoming less reliant on the H1-B visa as more American companies open offices in India.

💎 Diamonds might be forever, but their returns are certainly not. Anil Poste spoke to experts, who said that asset classes like diamonds can stagnate for years. Diamond prices had plateaued for two decades, and are now falling — thanks to lab-grown diamonds. Unlike equities that tend to grow in value through innovation and profitability, diamonds lack a reliable resale market. Jewellers often only offer exchanges, instead of buying back diamond for cash. Experts caution buyers to treat diamonds as luxury purchases rather than dependable investments, unlike gold.

✍️ Our Mint Lounge issue this week, the first of the year, is all about fiction. It's a quarterly exercise—a love letter to the best kind of writing and reading there is. I'll present two of them to you: ‘Gas’, by Nikhita Thomas, and ‘No End’, by Ruth Vanita. Both are poignant pieces, and will make for a great read for your relaxed weekend.

🐃 Our last story for the week is about a bull. It's not an ordinary bull, and it's not about the markets: I'm writing about Anmol. Sayantan Bera visited Bathinda and Hisar in Haryana to report about a Murrah buffalo. Anmol is a prized animal because of his semen, which is used for artificial insemination to impregnate female buffaloes. An estimated 25,000 calves have been fathered by him, his handler estimates. This is an informative, if not fun read—one that's worth your time.

That's all for this week. I hope you enjoyed this roundup!

On a slightly personal note, my role and responisbilities at Mint will change a little. Rest assured, I'll still be in the mix of newsletters, and still be contributing to Best of the Week (much to Siddharth and his workload's relief!). 

Best,

Shashwat Mohanty

Assistant Editor