Good morning! It's been a year, and we can make it official: India and Apple are going strong. Last April, Tim Cook flew down to India to open Apple’s very first retail stores in Mumbai and New Delhi. A year on, he must be a happy man as both Apple stores, chic and seductive, have posted impressive revenue of Rs 190-210 crore each, per The Economic Times. The word is Apple is now in serious talks for new stores in Noida, Pune and Bengaluru. This is, well, a love story, and India is Apple's new sweetheart. We approve.

🎧 A year on, how are Apple Stores doing in India? Also in today’s episode: boba tea billionaires. Tune in on Spotify, Apple Podcasts, Amazon Music, Google Podcasts, or wherever you get your podcasts.

Soumya Gupta and Anup Semwal also contributed to today’s edition.

The Market Signal* 

Stocks & Economy: Reliance Industries’ revenue crossed Rs 10 lakh crore (~$120 billion) in FY24 and despite a dip in the fourth quarter, it became the first Indian company to clock a pre-tax profit of Rs 1 lakh crore. Net profit at Rs 79,020 crore was 7% more than the previous year’s. 

US markets rebounded after a week-long drubbing even as investors awaited Big Tech earnings. About 180 companies in the S&P 500, including those known as the Magnificent Seven, are due to report their quarterly performance. Asian markets took the cue as equities gained in early trade. 

Oil prices, which had eased, have begun to move up again as tensions in West Asia continued to simmer. Gift Nifty indicates Indian equities may start the day flat or in the negative zone. 

ENERGY 

Adani Is Spring Cleaning 

Among research firm Hindenburg’s most damning allegations against the Adani Group was the charge that its foreign portfolio investors were shell firms closely linked to the Adani family. Sebi has reportedly found many of them violated disclosure rules and investment limits. They are hoping to settle by paying a penalty without admitting guilt. 

Eight of them — including Adani-linked Elara Capital - have filed settlement applications and agreed to pay fines, The Economic Times reported. 

Besides, in FY24, Adani has freed shares worth Rs 26,500 crore ($3.17 billion) of five listed group companies from pledges with lenders. Fewer pledged shares indicate a company is earning cash and paying down debt. 

💰⚡: Meanwhile, Adani is steadily selling equity abroad. Mint reports it is in talks with European funds for $400-500 million for its green energy business. It also wants $4-4.5 billion in bonds in the next four years by 2030. 

PODCAST

Tune in every Monday to Friday as financial journalist and host Govindraj Ethiraj gives you the most important take on the latest in business and economy.

Today, he speaks to Nilesh Sathe, ex-member, Insurance Regulatory and Development Authority of India (IREDA) about the insurance regulator wanting new health insurance products, including for older people. Will companies deliver?

CONSUMER

‘Dal Mein Kuch Kaala Hai’

This Hindi equivalent of ‘something’s fishy’ could be a premonition. Singapore’s food agency found Indian spice brand Everest was selling fish curry masala mixed with ethylene oxide, a pesticide. It ordered a recall last week. 

Hong Kong too has banned four products made by MDH and rival Everest, for high ethylene oxide levels. Long-term exposure to the pesticide can cause cancer. 

It’s especially troubling because MDH and Everest are leaders of India’s branded spices market, expected to be worth ₹50,000 crore by next year. India’s biggest consumer company Hindustan Unilever had recently considered acquiring MDH.

Sugar rush: So where is India’s food regulator? The FSSAI is investigating a Swiss NGO’s allegations that Nestle added sugar to its baby food brand Cerelac in India (but not in western markets).

The FSSAI is now testing MDH and Everest for pesticides. Little remedy for missing it in the first place. 

ECONOMY

Post-Election, The Shoe Could Pinch

No one really predicted that the US dollar would be ruling the roost in the first quarter of 2024. Yet here it is, up 4% since the year began. The dollar’s rise has upended currencies across the world, making central banks hop, skip and jump.  

Red hot US: The greenback is drawing fuel from the US economy, which is chugging along at a good pace despite the Federal Reserve’s best efforts to slow it down. The Japanese yen fell to its lowest level against the dollar since 1990 a week ago. The Indian rupee followed on Friday, sliding to a lifetime low of 83.57 before recovering. 

Unless the US economy slows down, the Fed may not cut rates this year. Those who were betting on the dollar weakening are reversing those. 

That brings us to the question: what awaits the next Indian finance minister who will take charge in June?

The Signal

A post-election market slump is widely expected. Some investors will exit while others, waiting for lower valuations, will enter. A strong dollar and high commodity prices could fuel inflation, making it difficult for the RBI to lower interest rates. Prices of commodities such as oil, aluminium and copper are rising, thanks to US sanctions on Russia and the conflict in West Asia. That’s a double whammy as demand for these commodities is increasing. Which means importers will have to buy more even as the exchange rate pinches. The Core explains how the scenario is building up. 

FYI

Tank full: Vodafone Idea’s Rs 18,000 crore follow-on share sale has been fully subscribed. GQG Partners, Fidelity and Investments and Capital Group reportedly invested big money.

Gone bust: Indiabulls Housing Finance has filed for Zee Entertainment chairman emeritus Subhash Chandra to be declared personally bankrupt. The National Company Law Tribunal has admitted the plea. 

Unopposed: Bharatiya Janata Party’s candidate from Surat, Mukesh Dalal, has got a walkover after all opposing candidates withdrew their nominations following the Congress’ candidate’s nomination being rejected. Voting is scheduled for May 7 in the constituency. 

Free for all: Meta has opened up Horizon OS, the operating system that powers its Quest VR sets, for third party device makers.  

Top that: Private equity firm Blackstone has bid $1.5 billion to buy Hipgnosis Songs Fund, which owns rights to artists Shakira and Blondie’s music.

THE DAILY DIGIT

$3.5 million

The price a 1942 Rolex 4113 fetched at the Monaco Legend Group auction. Only nine of a dozen that were made are known to exist. (Bloomberg)

FWIW

Rinse and repeat: There are two ways to think about Unilever's new detergent that purportedly washes away stains invisible to the naked eye. First take: okay, here’s a detergent that can clean away the invisible “cocktail” of sweat, salt, skin cells, body oils, and cellular DNA that our bodies routinely shed onto the clothes we wear. Impressive, isn't it? Or, second angle: what an incredible marketing gimmick! Imagine billboards and ads shouting at us to rinse our clothes daily—or maybe every four hours—because, well, you think your shirt doesn't need a wash, but you're actually wearing your dead skin cells to work. Gross. You pick your side, but we'd like this wonder wash to hit Indian markets, because our ad creatives truly rock at making those detergent ads. It’s time to recall their golden words: daag acche hain!