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Marketing is at the forefront of customer insights and the "voice of the client back to the business" says PwC global CMO Antonia Wade

<ul class="summary-list"><li>Chinese Premier Li Qiang spurred market expectations for more stimulus in a speech.</li><li>China's services activity and business confidence rose in October, boosting market sentiment.</li></ul>China is playing up its economy as the US heads to the polls in a closely watched presidential election.On Tuesday, Chinese Premier Li Qiang touted his country's economy, saying he's confident of hitting its GDP growth target of <a target="_blank" class="" href="https://www.businessinsider.com/china-economy-two-sessions-growth-goal-challenging-economists-2024-3">around 5%</a> this year, according to <a target="_blank" class="" href="https://www.chinadaily.com.cn/a/202411/05/WS6729c795a310f1265a1cb90a.html">state media.</a>He also drummed up market expectations for more economic stimulus, saying Beijing has "ample space for fiscal policy and monetary policy."Li's remarks came just as the Purchasing Managers' Index survey from Caixin and <a target="_blank" class="" href="https://www.pmi.spglobal.com/Public/Home/PressRelease/5d38599b37f34180bcdfef3a667df95b">S&amp;P Global</a> showed October services activity in China expanded at its fastest pace in three months. Business confidence also rose to the highest level since May, the private-sector survey showed.Wang Zhe, a senior economist at Caixin Insight Group, said China's <a target="_blank" rel="" href="https://www.businessinsider.com/china-economy-aggressive-monetary-stimulus-interest-rate-rrr-2024-9?utm_medium=ingest&amp;utm_source=markets">aggressive stimulus</a> in late September has improved sentiment."The Caixin manufacturing and services PMI surveys showed that market demand stabilized and optimism improved, early signs of the new policies' impact," Wang said.Deutsche Bank analysts wrote in a note that Li's comments highlight China's "significant policy flexibility." China's services PMI survey results on Tuesday also boosted risk sentiment in the world's second-largest economy, they added.China's benchmark <a target="_blank" class="" href="https://markets.businessinsider.com/index/csi-300">CSI 300 Index</a> closed 2.5% higher, while <a target="_blank" class="" href="https://markets.businessinsider.com/index/hang_seng">Hong Kong's Hang Seng Index</a> closed 2.1% higher.<h2 id="728bb7ef-12d6-4f0a-b8fc-e67a8f141cfd">Beijing is watching the US presidential election</h2>Amid Li's show of confidence, Beijing is watching the US presidential election closely to determine its next course of action.China's Standing Committee of National People's Congress — its top legislative body — is meeting through Friday and is expected to announce fresh fiscal stimulus to prop up its economy, which has been mired in a prolonged economic downturn amid an epic property crisis."Whispers are that Beijing may have to augment the size and details of the fiscal stimulus depending on whether it is a Harris or Trump Presidency," Vishnu Varathan, Mizuho Bank's chief economist of Asia excluding Japan, wrote in a note on Friday.China's legislative body would be considering a plan to raise $1.4 trillion in extra debt over the next few years to fund a part of an economic rescue package, <a target="_blank" rel=" nofollow" class="" href="https://www.reuters.com/world/china/eyeing-us-election-china-considers-over-14-trillion-extra-debt-over-next-few-2024-10-29/">Reuters</a> reported on Tuesday, citing two sources with knowledge of the matter.Beijing is likely to roll out a bigger stimulus to buffer market volatility if Republican candidate Donald Trump wins, Varathan wrote.

China is boosting market sentiment by playing up hopes for stimulus

<keyword id="20242921" type="General" weightage="100" keywordseo="Adobe" source="keywords" meta.keywordsubtype="org" meta.entityname="Adobe" meta.hostid="261" meta.entityid="Adobe">Adobe</keyword> has launched two new initiatives aimed at empowering both learners and marketing professionals through advanced AI technologies. The announcements were made at Adobe MAX 2024, which is underway at Miami Beach, Florida. The company unveiled a new global initiative designed to provide <keyword id="21872144" type="General" weightage="20" keywordseo="AI-literacy" source="keywords">AI literacy</keyword>, content creation and <keyword id="20399182" type="General" weightage="20" keywordseo="digital-marketing" source="keywords">digital marketing</keyword> skills to 30 million next generation learners so that they can carve a niche for themselves in the modern workforce. <h2>Collaborating with <keyword id="20153384" type="General" weightage="20" keywordseo="Coursera" source="keywords" meta.keywordsubtype="org" meta.entityname="Coursera" meta.hostid="261" meta.entityid="Coursera">Coursera</keyword> </h2> Adobe is collaborating with Coursera, educational institutions, NGOs, and other education platforms to make its training and certification accessible to a diverse range of emerging professionals. Adobe’s initiative also features a focus on responsible AI use, ensuring learners are equipped to handle emerging technologies in an ethical manner. The curriculum will cover various areas such as generative AI, social media content, and multi-channel advertising. Courses have already been rolled out globally on Coursera. To enhance inclusivity, Adobe is providing $250,000 in scholarships and expanding partnerships with nonprofits like DECA and NPower to integrate skilling opportunities into youth education programs. The company has pledged over $100 million this year through scholarships, product access, and partnerships to help learners from all backgrounds thrive in today’s workforce. Adobe’s Stacy Martinet, VP of Marketing Strategy and Communications, said that the goal is to ensure AI becomes a bridge, not a barrier, in helping professionals succeed. “Adobe’s mission has always been to design products that create opportunities and empower people from all backgrounds to change the world,” she said and added, “We want AI to bridge the digital divide not widen it, and this program will open doors for emerging professionals to succeed in the future workforce with AI literacy, content creation and marketing skills.” <h2><keyword id="23563843" type="General" weightage="20" keywordseo="GenStudio" source="keywords">GenStudio</keyword> for Performance Marketing </h2> Simultaneously, Adobe also launched GenStudio for Performance Marketing, an AI-driven application that aims to accelerate the creation and management of marketing campaigns. By integrating generative AI tools such as Adobe Firefly and third-party large language models, GenStudio empowers marketers and creative teams to generate high volumes of personalised content for digital campaigns. The new tool addresses a critical challenge faced by businesses today: the demand for dynamic, on-brand content that can be tailored to individual consumer preferences across multiple platforms. GenStudio streamlines the content supply chain, from creation to activation, enabling marketing teams to respond quickly to shifting consumer trends. Adobe has forged key partnerships with platforms like Google Campaign Manager 360, Meta, TikTok, Microsoft Advertising, and Snap, allowing brands to activate and adjust campaigns based on real-time insights. This integration, Adobe says, provides marketers with a comprehensive view of campaign performance, helping them tailor content to resonate more effectively with their target audiences. Prativa Mohapatra, Adobe India’s VP and Managing Director, highlighted how the new AI-powered workflows bring marketing and creative teams closer together. Brands like Air India and HDFC Bank have already begun exploring the possibilities of GenStudio, with plans for broader adoption across various industries. “With collaborations across industry leaders like Air India, HDFC Bank, Hero MotoCorp, Adobe is empowering marketing and digital teams to seamlessly manage multi-channel campaigns, with real-time insights to optimize performance. We’re excited to see how more Indian businesses will harness GenStudio to revolutionize their marketing strategies and deliver exceptional customer experiences,” she said.

Adobe collaborates with Coursera and others to help people develop AI skills, announces new AI-powered marketing tool

<ul><li>This year’s initial <keyword id="19894908" type="General" weightage="20" keywordseo="festive-season" source="keywords">festive season</keyword> has been good for smartphone makers, with an 11% increase in sales.</li><li><keyword id="19897758" type="General" weightage="20" keywordseo="Samsung" source="keywords" meta.keywordsubtype="org" meta.entityname="Samsung" meta.hostid="261" meta.entityid="Samsung">Samsung</keyword> has emerged as the biggest smartphone maker in the first phase, followed by <keyword id="19894961" type="General" weightage="20" keywordseo="Apple" source="keywords" meta.keywordsubtype="org" meta.entityname="Apple" meta.hostid="261" meta.entityid="Apple">Apple</keyword>.</li><li>Samsung recorded a 20% market share in the first phase, followed by Apple with a 16% market share.</li></ul>The festive season is here and e-commerce platforms Amazon, Flipkart and others have started their festive sales, offering devices such as smartphones at a discounted price. According to a report by Tech Insights, <keyword id="21017681" type="General" weightage="20" keywordseo="smartphone-sales" source="keywords">smartphone sales</keyword> recorded an 11% growth in the first wave of the festive season sales in India between September 26 to October 6. Among the smartphone makers, Samsung topped the chart with a 20% market share in volume terms during the first phase. "Samsung led the smartphone sales volume with a 20% market share followed by Apple in the first wave of the festive season," Tech Insight said in a blog. Apple is also gaining speed in the Indian market, with over 10 lakh iPhones being sold during the 11-day sale period. The top-selling models for Samsung include the Samsung Galaxy M35, Galaxy S23, Galaxy A14, Galaxy S23 FE and more. "Samsung was also the main sponsor for sales events on Flipkart and Amazon which also gave it an additional push. Samsung sales in unit terms grew 17% year-on-year in 2024's first wave compared to 2023's first wave," the blog said. The platform estimates that online sales volume accounted for 78% of the total sales during the phase 1 period. It was driven by online sales festivals like Big Billion Days on Flipkart and The Great Indian Festival on Amazon India while offline sales started to pick momentum with the start of Navratri. Apple was a surprising second with a 16% market share driven by strong sales of the iPhone 15 which crossed a million mark in 11 days of sales. iPhone 13 followed but the sales gap between iPhone 15 and 13 was significant. Oppo, OnePlus, Xiaomi, and Realme were also among the top vendors in the first wave of the festive season by volume. "North region sales were less compared to other region sales due to the importance of Shradh in this region. Also, states like West Bengal and Gujrat experienced better sales compared to other regions given the preparation for the popular Durga Pooja festival in these states," the blog said. With inputs from agencies. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/byd-emax-7-electric-mpv-launched-in-india-starting-at-26-9-lakh/slidelist/114046121.cms">BYD eMax 7 electric MPV launched in India starting at ₹26.9 lakh</a> <a href="https://www.businessinsider.in/personal-finance/news/heres-how-a-reddit-user-was-able-to-get-an-iphone-16-at-under-27000/articleshow/114035179.cms">Here’s how a Reddit user was able to get an iPhone 16 at under ₹27,000</a> <a href="https://www.businessinsider.in/stock-market/news/hyundai-swiggy-ather-upcoming-large-ipos-in-india/slidelist/114014140.cms">Hyundai To Swiggy: Everyone wants to cash in on the IPO bonanza</a>

Samsung leads the first phase of festive sales with a 20% market share

<ul class="summary-list"><li>US stocks were mixed on Monday as investors await third-quarter earnings from major companies.</li><li>Investors will monitor retail sales and jobless claims data this week.</li></ul>US stocks were mixed on Monday as investors await a wave of third-quarter earnings results this week.More than 40 <a target="_blank" class="" href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500</a> companies are set to report results this week, including <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/nflx-stock">Netflix</a>, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/ms-stock">Morgan Stanley</a>, and <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/gs-stock">Goldman Sachs.</a>According to data from Fundstrat, 6% of S&amp;P 500 companies have already reported their results. Of those companies, 74% beat profit estimates by a median of 6%, while 58% beat revenue estimates by a median of 2%.It's a relatively muted week on the economic data front, with investors likely to focus on the Thursday releases of September retail sales and initial jobless claims.Both data points will give investors insights into the health of the consumer and job market, respectively.There is also some Fedspeak this week, with Federal Reserve Governor Christopher Waller scheduled to speak at 3 p.m. today, followed by Fed Governor Adriana Kugler on Tuesday.Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,836.88, up 0.38%</li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,762.38, down 0.24% (-101.48 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,475.06, up 0.72%</li></ul>Here's what else is going on:<ul><li><a target="_blank" class="" href="https://www.businessinsider.com/nike-ceo-elliott-hill-takes-over-faces-challenges-2024-10">It's the first day for Nike's new CEO, Elliott Hill, who started working at the company as an intern in 1988.</a></li><li><a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-saudi-arabia-oil-price-war-supply-opec-cuts-2024-10">Saudi Arabia could create a crisis for Russia's economy by flooding the market with oil.</a></li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-bull-rally-anniversary-earnings-interest-rates-sp500-2024-10">The bull market in stocks is 2 years old. Here's what tends to happen next.</a></li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">West Texas Intermediate</a> crude oil was down 1.93% to $74.10 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a>, the international benchmark, was lower by 1.81% to $77.61 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> was down 0.41% to $2,665.20 an ounce.</li><li>The 10-year Treasury yield was flat at 4.105%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> was higher by 2.96% to $64,715.</li></ul>

Stock market today: Indexes trade mixed as investors await wave of earnings results

<div type="image" title="For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire" height="900" width="1200" msid="114064202" hostid="261" caption="&amp;lt;p&amp;gt;For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire&amp;lt;/p&amp;gt;"></div> Once upon a time, there thrived a wild, wild land. Here, it was all about super high monetary stakes, lightning-fast trade deals, and bucketloads of money shifting hands every single second. This wilderness lured millions of individuals with the promise of super duper high returns. But, at what cost? Welcome to the unforgiving, ultra-risky wild west of <keyword id="19991165" type="General" weightage="20" keywordseo="Indian-equity-markets" source="keywords">Indian equity markets</keyword> called the <keyword id="145718" type="General" weightage="100" keywordseo="Futures-and-Options" source="Orion">futures and options</keyword>. Here, everyone seems to just fly right through the bright red-flagged warnings of financial risks to earn even a fraction of these promised returns. Most burn themselves in the process, but carry on nevertheless, as if nothing ever happened. <h2>Chasing the cloudy profits</h2>The data conclusively proves that every 9 out of 10 individuals only lost their hard-earned money in this land. But hey, what do the numbers know? Some hide their losses out of shame, some out of fear. The proponents, meanwhile, proudly boast unusually high returns on their investments, some open social media channels while others encourage their friends and family to take the plunge. Naturally, news of this unstoppable and humongous en-masse migration to the F&amp;O (futures and options) town has reached sheriff <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SEBI" meta.hostid="261" meta.entityid="SEBI">SEBI</keyword>, galvanising them into action. After all, it was time to put a leash on this madness and save the common man. The inhabitants of this town doubled in the last 2 years, from 51 lakh in FY22 to 96 lakh in FY24—99.8% of whom were small and mid-income traders. But profits? Well, that's a different, rather completely absent story. <h2>Que Sera Sera, much?</h2>A recent report by SEBI (Securities and Exchange Board of India) that studied profits and losses made by traders in the equity derivatives segment between FY22-24 exposed the mad mania of futures and options trading in India, especially since the pandemic. Per the report, 91.1% of individual traders, or about 73 lakh traders had only lost money trading in futures and options in FY24. Between FY 22-24, over 1 crore traders, or about 92.8% of individual traders, had lost Rs 2 lakh each. But once bitten, twice shy? Well, not in this case. More than 75% of individuals, who had only made losses trading in F&amp;O in FY22 and FY23, continued to trade vigorously in FY24 as well, without any changes in the bottom line, which remained deep in red and negative. So, then all these traders must be uber-rich, with tons of cash and not much care to spare? Nope. 76% of traders in the F&amp;O space in FY24 had an annual income of less than Rs 5 lakh. 2 years ago, their share stood at 71%. And their choice of poison? Options! In FY24, 60% of traders made losses trading in futures, but a whopping 91.5% burnt their funds trading in options. Mind you, futures are riskier than options. With futures, which require significant capital investment, the buyer and seller both are contractually bound to adhere to the pre-determined strike price of the futures or options contract, irrespective of whether the prevailing prices are higher or lower (and thus, resulting in losses for either the buyer or seller). With options, since this adherence ain't necessary, individuals end up taking debt to take highly leveraged positions while trading here. <h2>Scale of the explosion</h2>Anyone who trades even infrequently will tell you that a demat account is the mitochondria or powerhouse of the trading cell. As of August 2024, India had over 17.1 crore <keyword id="20957284" type="General" weightage="20" keywordseo="demat-accounts" source="keywords">demat accounts</keyword>, which are a prerequisite for trading in the markets. India is the 9th biggest country in the world, in terms of total demat accounts. Did you know that our demat accounts are at par with the entire population of Bangladesh? Talk about scale! Just 4 years ago, in March 2020, this number was a mere 4 crore. Naturally, the total F&amp;O turnover on both <keyword id="20004725" type="General" weightage="20" keywordseo="NSE" source="keywords" meta.keywordsubtype="org" meta.entityname="NSE" meta.hostid="261" meta.entityid="NSE">NSE</keyword> and BSE has hit the roof, and also broken it. As of October 4, 2024, the total futures and options turnover on NSE stood at a massive Rs 4,78,27,27,750.30 crore. Good luck counting the thousands! <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Turnover (Both Futures and Options) (In Rs Crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64,36,03,951.51 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,69,52,33,134.47 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2022-23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,82,23,26,468.06 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2023-24 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,99,27,67,152.43 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source : NSE Another metric that underlines the meteoric growth of trading in India is the collection of STT or <keyword id="20930760" type="General" weightage="20" keywordseo="Securities-Transaction-Tax" source="keywords">Securities Transaction Tax</keyword>. As of September 2024, India's STT mop-up had gone past Rs 26,000 crore. Traders have to pay STT whenever they buy or sell any security in the market. So, more trading brings in more STT, and hence, more revenue for the government, so they're not really complaining. After all, this is certainly what they'd call enviable growth. As of August 2023, our STT collection stood at about Rs 21,599 crores. And in FY20-21, India's STT collection had been Rs 16,000 crore. If only our salaries also managed to grow at this rate! <h2>So, what's happening?</h2>Two things. One, it's the big bulls who are raking in all the moolah. And it's the younger lot (those aged under 30) who are propping them up for this. In FY24, 43% of individual traders in the market were less than 30 years of age. In just one year, this number has swelled by 12 percentage points from just 31% of individual traders. But who says ageing is bad? Wrinkles and silver hair seemingly have a propensity of incurring lesser losses in the market. In FY24, only 79% of traders aged above 60 years made losses, as compared to 93% of those aged below 30. Small and mid-income traders, which make up 98% of the total trader base, witnessed average losses per person of Rs 65,000 and Rs 1.5 lakh in FY24 in futures and options, respectively. The winner here? Clearly, the big bulls, who declared an annual income of over Rs 1 crore, ended up with average profits of Rs 96,000 per person this year. <h2>What’s the sheriff up to?</h2>The government has finally swung into action, hiking the STT rate for F&amp;O during this year’s budget. Effective October 1, 2024, the STT on futures stands at 0.02%, up from 0.0125%. For options, it was upped to 0.1% versus 0.0625% previously. Small margins, but huge impact oncoming. Says Puneet Sharma- CEO and Fund Manager at Whitespace Alpha, “SEBI aims to enhance market stability while safeguarding investor interests, reflecting the regulator's intent to balance risk management with market participation”. But this might come with its own share of challenges, too. “Stricter norms around leverage, transparency, and capital adequacy could limit the ability of investors to determine their own risk appetite, thereby stifling innovation in trading strategies. Over-regulation in an environment that thrives on strategic flexibility and creativity could dampen the market’s dynamism, affecting India's competitiveness in the global derivatives landscape”, he observes. SEBI recently came out with a set of guidelines that aim to thwart <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' participation in futures and options and hinder them from taking undue risks. Here's a quick recap of what's to come for the residents of the F&amp;O town Margin Requirements: To battle the high volatility and chaos which is generally seen on expiry days(i.e the last mandated date, post which an option becomes invalid), SEBI will put in place an extreme loss margin (ELM) of 2% for all open short options on the day of expiry. Translation? Traders will need to pony up more cash upfront, leaving them with fewer funds to take on risky bets. It ain't a choice: No more of one expiry every single day! Going ahead, an exchange like BSE or NSE will just be able to offer weekly expiries, that too, only on one benchmark index, as opposed to an entire buffet it currently offers. At present, NSE offers weekly options contracts for its financial index, bank and midcap indices. But say goodbye to this, and hello to derivatives on only 1 index per exchange. Raising the bar: Effective November 30, 2024, the minimum contract value for index derivatives will be upped to Rs 15 lakh, from the present Rs 5-10 lakh. The hope is that by making it ultra-expensive to enter these trades, investors will be dissuaded from taking on risky trades. Pay upfront: Starting February 2025, those trading in options will have to pay the entire options premium upfront, even before their trades are executed. This is because options generally carry very high leverage, and paying a significant sum upfront can force traders to think twice. Invigilation Pro Max: Starting April 1 2025, to make sure that the number of positions for equity index derivatives does not slyly slip over the mandated limit, especially on expiry days when trade volumes are huge, the exchanges will have to take a minimum of 4 position snapshots randomly. The question is, will these injections of sobriety be enough to calm down the steroid-fed bull of the futures and options market in India? Well, only time and market turnover will tell! For more insights into the financial markets and business news, stay tuned to our site and social media handles. And don’t forget to subscribe to Business Insider India’s newsletters for your weekly dose of Simply Put! Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

<ul class="summary-list"><li>Investors are eagerly awaiting Nvidia's earnings on Wednesday after the closing bell. </li><li>Nvidia's GPU chips are pivotal for sustaining the stock market's booming AI trade, analysts say.</li></ul>This could be the stock market's most important week of the year as investors await <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/nvda-stock">Nvidia's</a> second-quarter earnings results on Wednesday, according to one Wall Street analyst.Wedbush analyst Dan Ives called <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-earnings-ai-hype-investors-returns-jensen-huang-big-tech-2024-8">the imminent Nvidia results</a> the "most important tech earnings in years" in a note last week."We believe the most important week for the stock market this year and potentially in years for the Street will be next week as the Godfather of AI Jensen and Nvidia have earnings on deck," Ives said on Friday.The <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-earnings-ai-hype-investors-returns-jensen-huang-big-tech-2024-8">results are so important</a> because the stock market's booming AI trade hinges on Nvidia's GPU chips, with Ives calling it the "only game in town."For Nvidia's stock to see a positive reaction on Wednesday, "the bulls needs to see enterprise demand on AI carry the torch to move this market higher led by tech," Ives explained.But Deepwater Asset Management co-founder Gene Munster isn't expecting a rise in Nvidia stock following its earnings results this week.In an interview with CNBC on Monday, Munster said there's a risk to Nvidia stock due <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-ai-chip-blackwell-delay-new-annual-product-launch-2024-8?utm_medium=ingest&amp;utm_source=markets">to reported delays of its next-generation Blackwell GPU.</a>"I think that for investors who are just hyperfocused on every minute of what this company is doing, that could be viewed as a slight negative," Munster said of the reported Blackwell delays.Additionally, Nvidia stock is up 30% over the last three weeks and is just 5% shy of its all-time high, so that could set the stock up to tumble if the earnings report isn't a showstopper, according to Munster."I think this Blackwell piece is probably the most important x-factor about the quarter, and so that's why I think the stock is going to trade down modestly," Munster said.Munster added: "I think this is going to probably be a more difficult week for big tech, but I think that ultimately shares are going to recover quickly as investors come to grips with what I think is a stronger AI trade than what many believe is today."Treasury Partners CIO Richard Saperstein said in an email on Monday that Nvidia remains "an important component" and that its earnings reports will always be a "cliffhanger.""The bar remains high for Nvidia to demonstrate that AI spending is continuing at a torrent pace," Saperstein said.Aside from Nvidia, earnings results from <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/crm-stock">Salesforce</a> on Wednesday will be another important data point for investors to consider."We believe based on our recent checks [Salesforce] will have a bounce back quarter with some headwinds remaining, but ultimately speak to a tech spending environment that is generally healthy with AI deployments/use cases front and center driving larger deals," Ives said.In addition to earnings, investors will closely monitor data releases later this week that will impact the future path of the Federal Reserve's interest rate cuts.Investors will get more insight into the current state of the jobs market on Thursday with the weekly release of initial jobless claims, while the path of inflation will be showcased with the Friday morning release of the PCE Index, which is considered to be the Fed's preferred inflation gauge.While the Fed is largely expected to make its first interest rate cuts at its September FOMC Meeting, there is still uncertainty as to whether it will be a 25-basis point or 50-basis point rate cut.All-in, investors are navigating a big week for stocks as the market closes out the summer — and it's starting with a bang as <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-today-investors-assess-path-fed-interest-rate-cuts-2024-8">the Dow Jones Industrial Average notched fresh record highs Monday morning.</a>

All eyes are on Nvidia earnings this week in the stock market     

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Happy Friday! You might think Instagram would be a natural fit for Gen Zers if TikTok gets banned, but you'd be wrong. In fact, <a target="_blank" href="https://www.businessinsider.com/gen-z-use-anything-but-instagram-reels-if-tiktok-banned-2024-4">they're embarrassed you'd even think that</a>.In today's big story, we're looking at how <a target="_blank" href="https://www.businessinsider.com/gdp-gross-domestic-product-first-quarter-economy-growth-2024-4">the latest GDP data</a> has shifted the expectations of where the economy is headed. (Hint: <a target="_blank" href="https://www.businessinsider.com/stagflation-recession-us-economy-outlook-gdp-dimon-inflation-rate-cuts-2024-4">It's not good</a>.)What's on deck:<ul><li>Markets: Trying to work in tech on Wall Street? <a target="_blank" href="https://www.businessinsider.com/top-recruiters-hiring-staffing-tech-job-wall-street-headhunters-2024-4">Start with these recruiters</a>.</li><li>Tech: Google parent Alphabet's shares surge after a <a target="_blank" href="https://www.businessinsider.com/google-q1-2024-earnings-dances-2024-4">blockbuster first-quarter earnings report</a>.</li><li>Business: Ghostwriting for executives' LinkedIn profiles <a target="_blank" href="https://www.businessinsider.com/how-pr-firms-are-making-linkedin-ghostwriting-a-big-business-2024-4">is big business</a>.</li></ul>But first, from bad to worse.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h3>The big story</h3><h2>RIP soft landing</h2><div type="image" title="A dollar-sign balloon floating against a red background." height="900" width="1200" msid="109630216" hostid="261" sizebytes="27400"></div>A soft landing is coming, they said. It'll be great, they said.New data from the Bureau of Economic Analysis dashed dreams of a smooth economic exit in which the Fed tames inflation while avoiding a recession.US real gross domestic product <a target="_blank" href="https://www.businessinsider.com/gdp-gross-domestic-product-first-quarter-economy-growth-2024-4">rose at an annualized rate of 1.6%</a> in the first quarter, representing a significant drop from last quarter's growth of 3.4%, writes Business Insider's Madison Hoff.The real GDP figure was well short of estimates — experts forecast a 2.5% increase — but not worrisome by itself. But inflation rearing its ugly head again proved problematic for the market.One of the Fed's favored inflation measurements, <a target="_blank" rel="noopener" href="https://www.bea.gov/news/2024/gross-domestic-product-first-quarter-2024-advance-estimate">the core PCE price index</a>, rose at a 3.7% annual rate in the first quarter, above estimates.That data means the market will likely have to wait even longer for interest rate cuts, with relief potentially <a target="_blank" href="https://www.businessinsider.com/interest-rate-2024-outlook-us-economy-fed-cuts-powell-jobs-2024-4">delayed until as late as 2025</a>. It's a shocking turnaround for a market pricing in <a target="_blank" href="https://markets.businessinsider.com/news/stocks/fed-first-interest-rate-cut-outlook-stock-market-bet-policy-2024-2">six rate cuts for 2024</a> just a few months ago.<div type="image" title="US Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the headquarters of the Federal Reserve on January 31, 2024 in Washington, DC." height="2731" width="4096" msid="109630217" hostid="261" sizebytes="381236"></div>The soft landing's demise means another financial term to learn…but you won't like this one.Fears of stagflation, when economic growth slows while inflation and unemployment rise, <a target="_blank" href="https://www.businessinsider.com/stagflation-recession-us-economy-outlook-gdp-dimon-inflation-rate-cuts-2024-4">began to bubble up off the back of the report</a>, writes BI's Filip De Mott.The economic condition, last seen in the US in the 1970s, is arguably worse than an actual recession. Stagflation's issue is how difficult it is to manage. Cutting interest rates — a natural remedy during a recession — risks fueling inflation even higher during stagflation.JPMorgan CEO Jamie Dimon alluded to <a target="_blank" href="https://www.businessinsider.com/jamie-dimon-soft-landing-outlook-recession-inflation-jpmorgan-geopolitics-2024-4">the threat of stagflation</a> in a recent interview with The Wall Street Journal.Still, the job market <a target="_blank" href="https://www.businessinsider.com/jobs-wages-growth-in-march-unemployment-rate-labor-market-2024-4">remains relatively strong</a>. And while inflation is a concern, the economy is much stronger than a typical stagflation scenario, Matt Miskin, co-chief investment strategist for John Hancock Investment Management, told me. (The Bureau of Economic Analysis releases its inflation data today, another closely watched datapoint.)But the specifics don't always matter to investors."You don't have to get the definition perfectly right for the markets to trade that way," he added.Now, the economy will need some type of event (see: bubble popping) for rate cuts to become an option anytime soon, Miskin said."It likely cements a market rotation," he added.One prime candidate could be a sector that helped buoy the market for so long: AI.Meta's stock dropped Thursday despite a strong earnings report after outlining plans <a target="_blank" href="https://www.businessinsider.com/meta-earnings-mark-zuckerberg-ai-spending-tech-investors-stock-2024-4">to invest "aggressively" in "AI research</a>." Mark Zuckerberg said it might be a while before <a target="_blank" href="https://www.businessinsider.com/meta-q1-results-ai-investment-payoff-mark-zuckerberg-2024-4">returns on those investments are realized</a>.The tech giant likely won't be alone in spending big to keep up in the AI race. And if investors aren't willing to foot the bill, it could spell trouble for a wider market that has relied on the trend to keep its rally going.<h2>3 things in markets</h2><div type="image" title="A person in a suit talking on the phone." height="975" width="1300" msid="109630218" hostid="261" sizebytes="202756"></div><ol><li>For these bankers, ball is life. Dealmaking in sports is exploding, and these bankers are leading the charge. BI identified <a target="_blank" href="https://www.businessinsider.com/top-investment-bankers-leading-sports-mergers-acquisitions-and-investments">the top sports-focused dealmakers</a> across bulge-bracket banks like Goldman Sachs and JPMorgan and boutique shops like Park Lane and Galatioto Sports Partners.</li><li>These recruiters are helping Wall Street build out their tech armies. AI fever has hit the Street, and finance firms are eager to stock up on specialists. The top recruiters helping firms fill roles detail <a target="_blank" href="https://www.businessinsider.com/top-recruiters-hiring-staffing-tech-job-wall-street-headhunters-2024-4">what they're hearing from clients</a>.</li><li>Guess what's back. The World Bank said in a report on Thursday that <a target="_blank" href="https://markets.businessinsider.com/news/commodities/inflation-outlook-high-commodity-prices-oil-price-rate-cuts-economy-2024-4">global inflation could flare up again</a> due to a recent rally in commodity prices. Energy price shocks could bring the world economy to a "vulnerable moment," chief economist Indermit Gill warned.</li></ol><h2>3 things in tech</h2><div type="image" title="Google CEO Sundar Pichai" height="1000" width="2000" msid="109630220" hostid="261" sizebytes="214436"></div><ol><li>Google hits a home run. Parent company Alphabet's first-quarter earnings, posted late Thursday, <a target="_blank" href="https://www.businessinsider.com/google-q1-2024-earnings-dances-2024-4">smashed analysts' expectations</a>. The Big Tech giant also said it would issue a <a target="_blank" href="https://www.businessinsider.com/alphabet-issues-first-ever-dividend-beats-estimates-stock-buyback-2024-4">$0.20 per share dividend</a>, its first ever. Its stock surged 12% ahead of Friday's opening bell.</li><li>Microsoft won't stop splashing the cash on AI. In its own quarterly earnings report, the Redmond-based firm said it would continue <a target="_blank" rel="noopener" href="https://www.businessinsider.com/microsoft-plans-spend-more-ai-infrastructure-capex-earnings-azure-chips-2024-4">investing in artificial intelligence and cloud services</a> because of growing demand and a rise in average spending on its cloud platform, Azure. Microsoft shares rose 4% in early-morning trading.</li><li>VC firm Redesign Health is targeting $250 million in its latest fundraising push. With a model that's half VC firm, half startup incubator, <a target="_blank" href="https://www.businessinsider.com/exclusive-vc-firm-redesign-health-raise-250-million-2024-4">Redesign has launched more than 65 healthtech companies</a> since 2018. Most recently, the firm landed $65 million in Series C funding.</li></ol><h2>3 things in business</h2><div type="image" title="Anonymous man in a social media window with reaction icons" height="1500" width="2000" msid="109630221" hostid="261" sizebytes="62960"></div><ol><li>Your favorite LinkedIn influencer might be a ghostwriter. As the platform becomes more cool, some <a target="_blank" href="https://www.businessinsider.com/how-pr-firms-are-making-linkedin-ghostwriting-a-big-business-2024-4">executives are turning to PR firms to run their LinkedIn profiles</a>. It's turning ghostwriting into a booming business.</li><li>Walmart's boss charts how to rise to the top. In an interview with the Stratechery podcast, CEO Doug McMillon shared his <a target="_blank" href="https://www.businessinsider.com/walmart-ceo-doug-mcmillon-how-to-move-up-corporate-ladder-2024-4">top three tips for moving up the corporate ladder</a>. He'd know, having started his 40-year career at the retailer making $6.50 an hour on the loading docks.</li><li>Meet 17 PR pros helping influencers grow their careers. Business execs aren't the only ones who need PR guidance. Some of the most successful content creators across YouTube, Instagram, and TikTok are <a target="_blank" href="https://www.businessinsider.com/top-publicists-pr-pros-for-influencers-in-creator-economy-2024-4">turning to these PR professionals</a> to promote their work.</li></ol><h2>In other news</h2><ul><li><a target="_blank" href="https://www.businessinsider.com/supreme-court-trump-january-6-trial-timing-delay-2024-election-2024-4">Supreme Court might not give Trump sweeping immunity — but it's likely to give him the one victory he wants</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/twilio-founder-jeff-lawson-bought-the-onion-2024-4">Twilio founder Jeff Lawson appears to have just bought The Onion</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/apple-software-engineer-left-after-2-years-side-hustle-2024-4">I got my dream job at Apple on my fourth attempt. Here's why I left the 6-figure job after only 2 years</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/ukraine-aid-bill-help-american-jobs-military-defense-business-economy-2024-4">Billions of dollars of Ukraine aid are set to be spent in the US. Here are the cities that could get a boost</a>.</li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/its-not-just-boeing-airlines-are-hemorrhaging-cash-too-2024-4">It isn't just Boeing that's bleeding billions — major US airlines are hemorrhaging cash too</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/billionaire-barry-sternlicht-nantucket-beach-house-destroyed-erosion-2024-4">Billionaire's million-dollar Nantucket beach house has officially been swept away</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/bird-flu-cattle-outbreak-repeat-mistakes-former-surgeon-general-warning-2024-4">Bird flu could jump to humans any day. A former surgeon general says it feels like 2020 again</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/fisker-tells-staff-startup-in-talks-with-4-automakers-buyout-2024-4">Fisker tells employees that 4 automakers are in talks to buy the struggling startup</a>.</li></ul><h2>What's happening today</h2><ul><li>Today's earnings: ExxonMobil, Chevron, and other <a target="_blank" href="https://markets.businessinsider.com/earnings-calendar">companies are reporting</a>.</li></ul>The Insider Today team: <a target="_blank" href="https://www.businessinsider.com/author/dan-defrancesco">Dan DeFrancesco</a>, deputy editor and anchor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/jordan-parker-erb">Jordan Parker Erb</a>, editor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/hallam-bullock">Hallam Bullock</a>, senior editor, in London. <a target="_blank" href="https://www.businessinsider.com/author/george-glover">George Glover</a>, reporter, in London.

We have more insights as to where the economy is headed — and it's not good

<ul class="summary-list"><li>US stocks traded mixed as investors looked ahead to the central bank's meeting minutes.</li><li>The release will offer more insight into what the Fed is thinking about monetary policy and inflation.</li></ul>US stocks were mixed early Wednesday as traders looked ahead to the minutes of the Federal Reserve's last policy meeting, which should give further guidance on the path of interest rates for the rest of the year. All three benchmark indexes traded slightly in the red, while bond yields were up slightly. Investors will be parsing through the Fed's latest meeting minutes later on Wednesday, which will give more insight into what central bankers are thinking about the economy and the trajectory of rate cuts this year and beyond. Monetary policy is in focus after an unexpectedly hot job report in September, fueling doubt over whether the Fed will issue another jumbo rate cut this year."The minutes of the last Federal Reserve meeting are due, and should be fascinating," Paul Donovan, the chief economist of UBS Global Wealth Management, said in a note. "The tone of the Fed minutes should not change expectations of further rate cuts—the Fed is still scrambling to catch up with inflation slowing in the US, and started cutting rates late. But expectations about the pace of easing may be set by the minutes."According to Pantheon Macroeconomics, the Fed is more likely to begin cutting rates in 25-basis-point increments rather than issuing another 50-basis-point rate cut."Even so, we still think the FOMC is putting undue emphasis on the current strength of the economy rather than the direction of travel and the lagged impact of earlier tightening still in the pipeline," economists at the research firm said in a note. "We expect a 25bp easing in November but think a soft run of jobs and activity data in Q4 and Q1 will soon have the Fed scrambling to avoid falling behind the curve."Central bankers will assess another jobs report and the September Consumer Price Index, which will be published Thursday morning, before making their next rate move. The inflation report will be a high-stakes data point for the Fed after the big September payroll report, with markets anxious that officials may have to turn their attention back to prices after pivoting to the labor market at their last meeting. Markets are pricing in an 88% chance the Fed will issue a quarter-point cut, while odds of another jumbo-sized cut have been slashed completely, according to the <a target="_blank" class="" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME FedWatch tool</a>.Google parent Alphabet fell 1% in early trading as the US Department of Justice <a target="_blank" class="" href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.223205/gov.uscourts.dcd.223205.1052.0_1.pdf">indicated it could break up the tech giant</a>. Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,752.93, up 0.06% </li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,194.38, up 0.27% (+114 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,150.47, down 0.18%</li></ul>Here's what else is going on:<ul><li><a target="_blank" class="" href="https://www.businessinsider.com/fed-interest-rate-cuts-outlook-economy-recession-no-landing-borrowing-2024-10?_gl=1*i6n3nu*_ga*OTI1ODIwOTQ2LjE3MTYzOTg2NjU.*_ga_E21CV80ZCZ*MTcyODQ3ODgzNS40MjMuMS4xNzI4NDgwNDc4LjMxLjAuMA..">The economy is facing a "no-landing" scenario</a> that could take away some relief from higher interest rates.</li><li><a target="_blank" class="" href="https://www.businessinsider.com/mortgage-rate-increase-since-federal-reserve-cut-interest-rates-housing-2024-10?_gl=1*i6n3nu*_ga*OTI1ODIwOTQ2LjE3MTYzOTg2NjU.*_ga_E21CV80ZCZ*MTcyODQ3ODgzNS40MjMuMS4xNzI4NDgwNDc4LjMxLjAuMA..">Fed rate cuts were expected to push mortgage rates lower</a>, but the opposite has happened.</li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stocks-q3-earnings-lower-rates-stocks-returns-outlook-bofa-2024-10">The bar for corporate earnings is low</a>. That's good news for stocks, as long as companies are feeling upbeat about rate cuts, according to Bank of America.</li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">West Texas Intermediate</a> crude oil dipped 2% to $72.06 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a>, the international benchmark, was fell 2% to $75.63 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> slipped 0.39% to $2,612.00 an ounce.</li><li>The 10-year Treasury yield was about flat at 4.041%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> edged lower 0.8% to trade at $61,930.</li></ul>

Stock market today: US stocks trade mixed with Fed minutes and rate outlook in focus

<div type="image" title="Are Indians depositing less money in banks, or more in mutual funds? Turns out, it&amp;#39;s neither of those." msid="113663806" hostid="261" sizebytes="1121785"></div> Over the past few months, there’s been a lot of brouhaha about the lagging pace of <keyword id="20202062" type="General" weightage="20" keywordseo="bank-deposits" source="keywords">bank deposits</keyword> in India. Simply put, the rate at which Indians are depositing their hard-earned money in banks has been falling constantly, and some blame the increasing financialisation of <keyword id="20751315" type="General" weightage="20" keywordseo="household-savings" source="keywords">household savings</keyword> in the country or the rising preference of Indians towards <keyword id="19929240" type="General" weightage="20" keywordseo="mutual-funds" source="keywords">mutual funds</keyword> and shares. So, the hypothesis is that people are choosing to invest more in mutual funds and the Indian <keyword id="19949641" type="General" weightage="20" keywordseo="equity-markets" source="keywords">equity markets</keyword> through direct investments, IPOs, or NFOs, the money flowing into Indian banks in the form of deposits is slowing down. But is that really the case? <h2>A crisis or a phase?</h2><keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords" meta.keywordsubtype="org" meta.entityname="RBI" meta.hostid="261" meta.entityid="RBI">RBI</keyword> data suggested that for the quarter ended June 2024, bank deposits grew at 11.7%. On the other hand, credit growth has outpaced this at 15%. This means that the outflow from banks as loans is far greater than the inflow into them in the form of deposits in Q1 of FY 2024-25. The situation largely saw cut-copy-paste in the first week of September as well, with loans registering a 13.3% YoY growth during the period, while deposits rose only 11.1%. This gap has only been widening for the last 3 years. Since deposits are how banks gather assets to further lend and earn interest income as a consequence, even a slight dip could set the alarm bells ringing for banks, and rightfully so. And truth be told, mutual funds are indeed taking on bank deposits in a big way. Per a report by Franklin Templeton, in August 2024, the AUM (assets under management) of Indian mutual funds, or the total funds managed by them, stood at 31.3% of total bank deposits in the country, up from 24.20% during the year-ago period. As of August 2024, the AUM of mutual funds stood at Rs 66.17 lakh crore, an all-time high. But all said and done, is this really the reason why the rate of bank deposits is falling behind? SBI has dismissed this to be a “statistical myth”, and experts point out that since equity and fund houses also keep the cash in their respective bank accounts, there’s no cause for concern. So, is financialization really to be blamed for the trailing tempo of deposits? Or is something else happening behind the scenes? We take a closer look: <h2>First, are household deposits really slowing down? And is that a cause of concern?</h2>Data from Motilal Oswal suggests the contrary. Deposits grew by around 10.4% between March 2020 and August 2024. Data from RBI also highlights that as of August 9, 2024, bank deposits witnessed a YoY growth of 10.8%. The loan-to-deposit ratio for the retail segment, which indicates what percentage of its total deposits the banks lend out as loans, has stayed at 77.5%, above the 77% mark for the tenth straight month. <div type="image" title="Yes, household deposits (as % of total deposits) have dipped, but the drop is far from significant" msid="113663882" hostid="261" sizebytes="306706"></div> Also, we can’t forego the fact that the share of Indian households in bank deposits has indeed slowed down. However, data from Axis AMC shows that the dip is marginal—from 63% in 2022 to 62% in 2023 and 61% in 2024. What has slowed down even more considerably is the share of government deposits in the aggregate bank deposits, which has dipped from 14% in 2018 to 9% in 2024. So, it's not just household deposits, you see. Moreover, as of March 2024, the collective CASA ratio (current and <keyword id="114757" type="General" weightage="20" keywordseo="savings-account" source="Orion">savings account</keyword> deposits) of all commercial banks in India stood at 41.00%, down from 43.1% in March 2023 and 45.2% in March 2022, marking a nearly 5% point decline over the past year, while still staying over the 10-year average of 39.2%. This implies that Indian banks are relying more on higher-cost funds (savings accounts), which can limit their profitability. <h2>What is this financialisation of savings we are talking about?</h2>Then again, there is no doubt about the growing affinity of Indians towards mutual funds and stock markets. Recent data from CBDT (Central Board of Direct Taxes) highlights that India’s net direct tax collection surged by around 22%, driven exclusively by the significant uptick in the collection of Securities Transaction Tax (STT), which doubled to Rs 26,154 crore, from Rs 13,352 crore in the year-ago period. Why does this matter? STT is levied when you buy or sell equity shares on stock exchanges, sell <keyword id="6361918" type="General" weightage="20" keywordseo="equity-mutual-funds" source="Orion">equity mutual funds</keyword>, and trade in futures and options in the equity segment. Such taxes, including the multiple other taxes in equity market investments, are considered as leakages as the money moves out of the economy into government coffers. Data from a ValueQuest report explains that over the last 20 years, the markets have handsomely rewarded the investors, generating over $900 billion in incremental value for them. This is the major driver behind the dramatic rise in investment flowing towards the equity markets. There’s further proof of this budding romance, if you check the demat pudding. The number of demat accounts, which are a primary requisite for participating in the stock markets, also burgeoned by 42.3 lakh in August 2024, taking India’s total tally of demat accounts beyond 17 crore. To put this in perspective, this is almost equivalent to the population of just 8 nations in the world, including China, the US, Brazil and more. Vivek Iyer, Partner, Grant Thornton Bharat thinks it's rather important, as well. “Financialisation of household savings in India is an indication of deepening capital markets in the market, especially from a retail investor standpoint. Bank deposits with a modest rate of return are no longer the only option for savings for investors. Investors today have more avenues for wealth creation in the form of public capital markets, which have democratized wealth creation and provided equality of opportunity to retail investors”, he says. Yes, Indians are investing more and more in the markets, and in mutual funds. But is it a sin to look out for inflation-beating returns, which the stock markets offer, and vanilla bank deposits don't? After all, the allure of 12-13% annual returns offered by <keyword id="45369" type="General" weightage="20" keywordseo="equities" source="Orion">equities</keyword> can certainly pale the stability offered by good old deposits, which generally do not go beyond 9% when it comes to annual returns. But all of this is not what is behind the slowdown. India is still a toddler in the school of savings financialization, with less than 10% of the population holding a demat account, and less than 5% of us saving in equities. That's a drop in the ocean of deposits, far inadequate to trigger a tsunami. <h2>Tell me why lagging deposits have nothing to do with Indians investing more in mutual funds!</h2>Says Shweta Rajani, Head - Mutual Funds, Anand Rathi Wealth Limited, “Households' equity holdings composition grew from 11.1% in FY 23 to 14.7% in FY 24. This trend reflects a growing awareness of investment options, empowering individuals to take control of their financial futures. Despite this transition towards equities, banks still hold a significant share of household financial savings—33.5% in FY24 compared to 34.9% in FY23”. Also, household savings and their subsequent financialization do not have much to do with deposit creation, which is entirely made by banks. What actually drives increased deposits is credit growth or increased lending. When interest rates are eased, people tend to borrow more and spend more, which circulates more money in the economy. For the past 4 years, RBI has been tightening the screws on interest rates, which raises the cost of borrowings, and makes it more expensive to take loans, putting a dampener on credit growth, but effectively curbing inflationary pressures. The last time RBI cut the repo rate by 40 basis points was back in May 2020, 4 years ago. The lag in <keyword id="19998084" type="General" weightage="100" keywordseo="deposit-growth" source="keywords">deposit growth</keyword> we’re witnessing is almost 3 years old. Coincidence much, or just good old economics at work? But with the Fed recently setting a rate cut precedent by slashing 50 bps off its interest rate, RBI is expected to follow suit in the next MPC (Monetary Policy Committee) meeting, scheduled for November 2024. A rate cut would ease the aforementioned high cost of borrowing, and increase loan-taking for corporates and institutional investors, thereby stoking consumption in the economy. And then, deposit creation in banks is likely to return to its former glory. If not, then that would be a curious case to unravel! But that worry is for another day. Do you have insights or personal experience to share on your personal finances or money? Contact us at <a target="_blank" class="c-link" href="mailto:businessinsider@timesinternet.in">businessinsider@timesinternet.in</a>.

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