Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, December 23, 2024. This is Nelson John, let's get started.

Many investors have burnt their hands during the bull run of 2024. Take for example the Nifty India Defence Index, which saw a stunning 60% return this year. However, one of its main stocks is prone to volatility: Cochin Shipyard has dropped 30% in the past six months. Abhishek Mukherjee writes that sectors like pharmaceuticals and manufacturing have thrived due to post-COVID dynamics and strategic shifts, but many investors have fallen prey to herd behavior and overinflated narratives. Thus when experienced investors book their profits, sharp corrections occur — leading to widespread portfolio losses.

Indians are borrowing more money against their gold, and the Reserve Bank of India is worried. Regular defaults are leading to increased collateral auctions to recover these loans. Anshika Kayastha writes that Muthoot Finance and Manappuram Finance reported significant auction amounts in recent quarters. This reflects a shift towards standardized auctioning policies in compliance with new regulations. The RBI has tightened its rules: there are now limits on cash disbursements for gold loans and requiring a review of lending practices.

When companies apply for any incentive scheme by the central government, they are supposed to invest some money to receive further subsidies. However, about 12 companies will be excluded from the government's production-linked incentive scheme for failing to meet these norms. Manas Pimpalkhare and Rituraj Baruah report that these companies include state-owned Bharat Heavy Electricals or BHEL, and Kia Motors India. Kia had expressed intent to withdraw from the scheme as its manufacturing plans have not materialised. The PLI-Auto scheme had an estimated outlay of 26,000 crore rupees over five years, but only 500 crore has been claimed so far.

After a long bout of lean hirings, the IT sector is looking better. Accenture's recent hiring of 49,000 employees globally over six months indicates a positive growth outlook moving forward. Jas Bardia writes that this would bode well for Indian IT companies like TCS, Infosys, and HCL Technologies as well. While growth for Indian IT companies has been slow, analysts suggest that recovery may be on the horizon. This recovery will be aided by a potential increase in demand following interest rate cuts and decision-making in the US under the upcoming Trump administration

Everyone in India's startup ecosystem is looking for the next big bet. Shelley Singh writes that deep tech might be it. This field is rooted in science and engineering and addresses major global challenges. It covers sectors such as space tech, biotech, and climate tech, and focuses on long-term goals. However, challenges such as the need for a supportive ecosystem involving academia, government, and investors remain abundant. Moreover, deep tech firms need strong intellectual property and scalable business models as well.

Bullruns and bullshit

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