TMS Ep530: FMCG & inflation, e-gaming, real estate stocks, Cauvery dispute

FMCG companies are facing a double whammy of sorts. Consumers have turned circumspect due to soaring inflation. And input costs - including that of crude oil-- are threatening to cast a long shadow over their profit. And it comes when festival season is around the corner. So, should FMCG firms be worried? And what may be the way out? 

While FMCG firms sweat to get their strategies right in the battle against inflation, India’s e-gaming industry is fighting for survival, it seems. Facing cumulative GST demands of over 55,000 crore rupees, they are planning to move court. Even as they brace for the impact of the 28% GST regime, these notices which they say are “retrospective”, may spell more trouble for them. So will Indian e-gaming survive the tax blow? 

Shares of leading real money gaming firm Delta Corporation recently hit 52-week low. But, the plight of India’s real estate was a study in contrast. It is expected to expand to 5.8 trillion dollars by 2047, contributing nearly 16% towards the country’s GDP. At the bourses, the gauge tracking related stocks is hovering close to its all-time high level, zooming 50% in six months. Explore your investment strategy for the real estate sector.

The resurgence in property demand is indeed good news, not just for the sector but for the country’s economy too. Bengaluru was one the leading cities which saw significant jump in property prices. The average appreciation was an impressive 10% over the past year. But the IT capital of India wore an almost deserted look in the last two days. Pro-Kannada outfits and farmer unions had called for a two-day ‘bandh’ against the release of 5000 cusecs of Cauvery water to neighbouring Tamil Nadu for 15 days. But why has this Cauveri dispute flared up again? Listen to this episode of the podcast for answers.