Data recap: TaMo split, MF heat, services PMI

Every Friday, Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by. Tata Motors Ltd has decided to split and list its commercial and passenger vehicle businesses separately. Retail investors’ preference for mid- and small-cap mutual funds is overheating in the segment, portending a correction. India’s services PMI has slowed but remained strong in February.

Investment Slump

THE GROWTH in private investments in fixed assets decelerated in FY23 after a post-pandemic rebound seen in FY22. In real terms, private investments in fixed assets rose by 6.4% in 2022-23. This was lower than the 16.4% surge seen in 2021-22, which came after a contraction of 8.4% in 2020-21 due to the covid-19 outbreak. A sustained revival in private investments would require wage growth to stimulate domestic consumption and strong exports, according to experts.

Bucking Trend

EVEN AS exports are under pressure due to global headwinds, the electronic goods sector is the sole key sector to see growth in the first 10 months of FY24. Of the five leading sectors by value, petroleum products, gems and jewellery, and chemicals saw lower exports in 2023-24 compared with the previous year, while those of engineering goods were flat. Electronic goods exports have seen a dramatic rise in the past few years and now contribute 6% to India’s exports value.

13 Trading Options

THAT’S THE number of commodities the finance ministry has notified now for derivatives trading. Manganese, freight (road, shipping, and airways), skimmed milk powder, and white butter are among the commodities newly eligible for trading on the National Stock Exchange. With this, the total number of commodities for trading now stands at 104. Recognized national stock exchanges will require Sebi’s nod to launch derivative trading on these commodities.

Investor Concerns

MID-CAP AND small-cap funds have been a preferred choice for retail investors, accounting for 42% of overall inflows into domestic equity mutual funds in the first 10 months of 2023-24, up from 30% in 2022-23. As a result, there are signs of overheating in the segment, raising concerns about a potential correction in the near future, a Mint analysis showed. This has led the Association of Mutual Funds in India to urge fund houses and managers to take pre-emptive steps to safeguard investors.

Demerger deal

TATA MOTORS is splitting and listing its commercial and passenger vehicle operations separately to unlock value and demonstrate confidence in the potential of each sector. The commercial vehicles unit of Tata Motors makes trucks, vans and buses, while the passenger vehicles division builds cars, SUVs and electric vehicles. The automaker aims to finalize the demerger in the next 12–15 months and all shareholders of Tata Motors will have identical shareholding in both the listed entities.

$533 million Fund Transfer

THAT’S THE sum Byju’s has transferred to a 100% non-US subsidiary from Camshaft Capital Fund in the wake of a legal dispute with overseas lenders over alleged concealment of funds. The dispute could have potentially led to jail time for Camshaft Capital’s founder William Morton, Bloomberg reported. Byju’s has been embroiled in several legal battles after its subsidiary, Whitehat, failed to accede to the loan agreement as an additional guarantor.

Down, but Strong

INDIA’S SERVICES activity slowed, but remained strong in February. The HSBC Services Business Activity Index’s reading of 60.6 in February was down from its six-month high of 61.8 in January, but higher than its long-term average and far higher than the 50-mark, which separates expansion from contraction. Notably, new business from overseas directed towards services companies in India increased for the 13th straight month and there was a respite from input cost inflation.

Chart of the Week: Gender Gap

GENDER DIVERSITY remains a challenge for India’s top management institutes. A Mint analysis of the past five years’ data from institutes such as Indian Institutes of Management reveals a consistent gender ratio of about 30–70 female students for every 100 male students. Follow our data stories on the “In Charts” and “Plain Facts” pages on the Mint website.