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Demand for premium products across categories, including television, smartphones, and large appliances, dominated the Diwali season sale during the Amazon Great Indian Festival (AGIF) 2024 that commenced from September 27, a senior company official said on Saturday.

Amazon India Vice President Saurabh Srivastava told that the company recorded 10-times growth in Apple iPad sales and five-times growth in Samsung tablets during the Amazon Great Indian Festival (AGIF) 2024.

“One clear trend that was there is premiumisation. When we look at it, whether it is televisions or fashion and beauty, gaming laptops, home and kitchen appliances, we have seen a clear trend of premiumisation. People are preferring more premium products. Again, this is not limited to just top cities,” Srivastava said.

He said large-screen TVs contributed to about 30 per cent of the total unit sales in the segment and there was 10-times growth in their demand on a year-over-year basis with Samsung, Xiaomi, and Sony emerging as the most-preferred TV brands.

“In tablets, Apple and Samsung are premium products. Apple tablets grew 10 times, and Samsung tablets 5 times year on year (YoY). When you think about large appliances, obviously, these are washing machines and refrigerators and ACs, but premium ones like front-load washing machines, or side-by-side refrigerators, or bigger than 1.5-ton ACs, grew 30 per cent YoY,” Srivastava said.

He said the fashion and beauty segment recorded a 400 per cent spike in premium categories across watches, fragrances, handbags, Korean beauty, jewellery, luggage, etc.

Srivastava said the company registered 20 per cent more customers visiting during AGIF 2024 compared to the festive season sale during the same period a year ago.

“The Amazon Great Indian Festival 2024 witnessed 140 crore customer visits — the highest ever. More than 85 per cent customers were from non-metro cities,” Srivastava said.

Amazon India saw 50 per cent year-on-year growth in B2B customers who made their first purchase from Amazon Business.

“AGIF 2024 also set new milestones for seller success and witnessed more than 70 per cent increase in sellers surpassing a crore in sales compared to last year. The online marketplace bolstered its fast delivery capabilities, delivering over 3 crore products to Prime members across India within the same or next-day which is 26 per cent increase from previous year,” he said.

Amazon India said in a statement that 70 per cent of Prime members who shopped during the festive season were from Tier-2 and 3 cities compared to 60 per cent last year.

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The Nifty 50 index has demonstrated resilience, closing Samvat 2080 with a nearly 25 per cent gain despite an 8 per cent pullback from its peak. 

This performance marks one of the best years for the index since the post-Covid surge in Samvat 2077, when it soared by 38 per cent.  

These gains reflect investor confidence and the market’s ability to recover from fluctuations, showcasing the overall strength of bluechip stocks in the current economic landscape.

 This year’s rally in the Nifty 50 follows a period of modest returns in the previous two Samvat years, with gains of 10.5 per cent and 9.4 per cent in Samvat 2079 and 2078, respectively.

The robust performance in Samvat 2080 has been broad-based, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each gaining over 37 per cent.

 Nifty ended Thursday’s session at 24,205, a decline of 136 points.

Meanwhile, the BSE Sensex tumbled 553 points, or 0.69 per cent, to settle at 79,389.06. 

While India’s equity markets have shown solid performance, they ranked in the middle compared to global peers, with the US markets (S&P 500 and Nasdaq), Germany’s DAX, and Taiwan leading the pack.  

However, India has outperformed many emerging markets and Asian counterparts, such as China, Japan, Brazil, Thailand, and Indonesia, highlighting its relative strength in the region.

“We had three years of strong economic growth post-Covid, which converted to strong corporate earnings growth and strong equity market returns. There was a synchronised global rally after the Covid stimulus, and most markets, barring China — which had its own structural problems — have done well,” said Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers. 

Strong domestic liquidity and foreign flows underpinned this year’s gains until the recent $10 billion pullout by foreign portfolio investors (FPIs). 

The sharp pullback from FPIs over the past month saw the domestic markets give up a fourth of the gains made during the year.

The sustained weakness in China’s markets prompted several foreign funds to pivot to India, the only other major market in the emerging market (EM) pack. 

“For domestic investors, it was a discovery of a new asset class for them after the pandemic. The average office goer has come to markets directly or through mutual funds. This structural change is well entrenched in the markets and capable of absorbing large outflows,” said UR Bhat, co-founder of Alphaniti Fintech.

Samvat 2080 was also punctuated with turbulence amid headwinds such as uncertainty about the rate hikes in the US, geopolitical tensions, and concerns over Yen carry trade reversals. 

More recently, the resurgence in China, following government measures to revive its economy and equity markets, dimmed some appeal for domestic equities. 

Furthermore, slowing earnings growth in India also acted as a major headwind This has prompted FPIs to book profits in India to cash in on the growth of much cheaper Chinese equity markets. 

However, strong domestic support is helping Indian markets withstand the selling pressure. 

“The economic cycle has softened, and we will likely get a few quarters of soft earnings growth. It will have a moderating effect on the stock market,” said Mukherjea.

During the early part of Samvat 2080, strong corporate earnings growth and political stability added to the lure for Indian equities. 

Last November, the ruling Bharatiya Janata Party (BJP) won three of the four key state elections, which paved the way for hopes of the continuation of a single-party majority government at the Centre. 

During the General Elections in May, though the BJP could not get a majority, it quickly cobbled a coalition and formed the government. 

After the initial disappointment over the election results, markets returned and continued their upward trajectory.

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 Tata Motors on Friday, November 1 reported a decrease in total sales to 82,682 units in October 2024, down from 82,954 units in the corresponding period last year. In a regulatory filing, the company stated that domestic sales saw a marginal increase, reaching 80,839 units compared to 80,825 units in the same month a year ago.

Passenger vehicle (PV) sales, which include electric vehicles, experienced a small decline, totalling 48,423 units in October versus 48,637 units in the previous year. Breaking down further, domestic PV sales reached 48,131 units, showing a slight drop from 48,337 units year-on-year. In the commercial vehicle (CV) segment, Tata Motors recorded sales of 34,259 units, down marginally from 34,317 units in October 2023.

The shares of the Tata Group company ended nearly a percent in the red on Thursday, October 31.

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 The Reserve Bank of India (RBI) is well-equipped to deal with a potential sudden outflow of foreign funds and any steep fall in the rupee if Republican candidate Donald Trump wins next week’s U.S. presidential election, two sources familiar with the bank’s thinking said.

The Reserve Bank of India would be able to tap its large foreign exchange reserves to defend the domestic currency in the event of global market volatility and an outflow of foreign funds, the sources said. They spoke on condition of anonymity because of the sensitivity of the matter.

“The reserves have been built up to take care of excessive volatility. If there are sharp outflows, RBI will step in to manage it, as it has been doing,” one of the sources said.

The RBI did not reply to an email requesting comment.

The sources also warned that any steep rise in U.S. tariffs towards China could trigger knock-on effects in India and other emerging economies, including imported inflation and fallout from China’s policy responses that could affect India’s monetary policy.

Republican candidate Donald Trump and his Democratic opponent, Vice President Kamala Harris, are effectively tied going into the Nov. 5 election, according to the latest Reuters/Ipsos poll published on Tuesday. Trump has vowed to impose 60% duties on imports from China.

The U.S. treasury yield has risen about 50 basis points this month and the dollar index strengthened 3.3% as election day approaches. There has been a record outflow of more than $10 billion in foreign funds from India stocks, while foreigners pulled $700 million from the debt market.

The rupee has hit a series of record lows this month, prompting central bank intervention, although it has been one of the least volatile major Asian currencies, holding to a narrow range of 83.79-84.09 per dollar.

India’s foreign exchange reserves dropped for a third week to $688.27 billion as of Oct. 18, their lowest in more than a month, the latest RBI data showed, although they remain the world’s fourth-largest, sufficient to cover its entire level of external debt and nearly a year of imports.

The RBI is also closely monitoring the prospects for new tariffs that the next U.S. administration might impose on imported goods, as this could fuel a fresh round of U.S. inflation that indirectly affects emerging market economies, the second source said.

“If there’s imported inflation pressures, then monetary policy will remain in a restrictive mode for longer,” the source added.

India’s retail inflation accelerated in September to its highest in nine months. The RBI has held rates steady for 10 straight meetings but changed its stance to “neutral” from “withdrawal of accommodation” in October. Central bank officials have not committed to or signalled any timing for a rate cut.

The sources said the central bank will be watching how post-election developments play out for China, which is considering more than 10 trillion yuan ($1.4 trillion) in extra debt issuance in the next few years to revive its fragile economy.

China’s stimulus efforts, which could intensify if U.S. tariffs further hurt its economy, have been a factor driving foreign funds out of India and other emerging markets into China.

“At the current time, we are actually bleeding to China, all EMs are losing money to China, so if Trump wins, a new source of spillover will be created,” the second source said.

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 HDB Financial Services – the non-banking lending arm of HDFC Bank – has filed the Draft Red Herring Prospectus (DRHP) with Sebi for an initial public offering of up to Rs 12,500 crore ($1.49 billion), the bank informed exchanges on October 31.

The DRHP was filed on Wednesday, and the IPO remains subject to necessary regulatory approvals and market conditions, the bank said.

The Initial Public Offering comprises of fresh issue of shares aggregating up to Rs 2,500 crore, and an offer for sale of shares aggregating up to Rs 1,000 crore by existing shareholders of the company. HDFC Bank holds 94.6% stake in the lender, and will sell shares worth up to Rs 10,000 crore through the OFS route.

HDB Financial has said that plans to use the IPO sale proceeds for capital requirements, including onwards lending.

Last month, HDFC Bank approved the unit’s IPO, marking the group’s first public float in six years as it aims to meet the financial regulator’s deadline that “upper layer” non-banking financial companies (NBFCs), based on their size, activity and perceived risk levels, be listed by September 2025.

Post-IPO, HDB Financial Services will remain a subsidiary of HDFC Bank, complying with relevant regulations.

HDB Financial Services has engaged four investment banks as advisors for its proposed big-bang initial public offering (IPO), namely Jefferies, JM Financial, Morgan Stanley & Nomura.

Fundraising through initial public offerings (IPOs) has hit a new high in 2024, exceeding the previous record set in 2021, with two months still remaining in the year. So far, total funds raised through IPOs have reached over Rs 1.22 lakh crore, surpassing the Rs 1.18 lakh crore record of 2021. Approximately 70% of this record-breaking amount has been generated since August.

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