- The Core
- Posts
- More Money, More Markets. What's Missing?
More Money, More Markets. What's Missing?
The Weekend Playlist
In partnership with
Good morning.
This week, Shripal Shah examines why brokerages are moving beyond trading, while Amar Ambani explores the gap between corporate earnings and market returns.
Parthasarathi Patnaik explains why affordable credit remains elusive for smaller businesses, while Rahul Bajoria examines the risks of higher interest rates for India's investment recovery.
Elsewhere, Devish Gala explores changing demand in educational publishing, while Deepak Dhar examines the economics driving reality television.
The common thread: Growth opportunities remain, but turning them into lasting value requires adapting to changing markets and business conditions.
P.S. We're taking a short break for Diwali. We will be back in your inboxes on Wednesday, October 11 as per usual schedule.
WEEKEND EDITION
Why India's Brokerages Are Looking Beyond Trading
What happens when opening a demat account becomes easier than deciding where to invest?
In this Weekend Edition, Govindraj Ethiraj speaks with Shripal Shah of Kotak Neo about changing investor behaviour and India's brokerage business.
India has around 24 crore demat accounts and 13.5 crore unique investors, yet only 4.5 crore traded in the past year. Market access has expanded faster than active trading participation.
Yet as regulation moderates derivatives trading and investors seek diversified, long-term investments, brokerages are moving beyond digital execution towards research, advisory services and wealth management to sustain growth.
Key Insight
As digital access becomes standard, the next competitive advantage for India's brokerages will lie in meeting investors' evolving financial needs rather than relying primarily on trading volumes.
SPECIAL EDITIONS
What India's Changing Classrooms Mean For Publishers
Where will growth come from when India's school population is no longer expanding significantly?
In this Special Edition, Govindraj Ethiraj speaks with Devish Gala of Navneet Education about changing school preferences, curriculum reforms and educational publishing.
Navneet prints over two crore books annually, but growth remains below its pre-pandemic pace. With student numbers largely stable, opportunities increasingly lie in families moving towards English-medium and CBSE schools and demand for supplementary materials.
Yet digital learning has not displaced printed textbooks. Publishers are instead combining physical books with digital tools and activity-based learning.
Key Insight
With enrolment growth slowing, the next phase of India's educational publishing industry will depend on adapting content, products and distribution to changing learning preferences rather than relying on a growing student population.
The Case For Selective Investing In A Slow Market
Why aren't improving corporate earnings translating into stronger stock market returns?
In this Special Edition, Govindraj Ethiraj speaks with Amar Ambani of YES Securities about valuations, earnings growth and opportunities in Indian equities.
Several established companies trade near multi-year lows despite improving earnings expectations. Ambani sees potential in banking, consumer durables and power, alongside select mid- and small-cap stocks.
Yet continued foreign investor selling, elevated bond yields and currency pressures could keep Nifty returns in single digits over the next one to two years. The gap between corporate fundamentals and market performance makes careful stock selection increasingly important.
Key Insight
Lower valuations alone do not guarantee attractive returns. Identifying companies with sustainable earnings growth, strong fundamentals and reasonable valuations may require investors to adopt a three-to-five-year investment horizon.
BUREAU BYTES
Why India's MSME Credit Gap Persists Despite Lower Risks
If supply chain financing records low default rates, why do smaller businesses still struggle to access affordable credit?
Parthasarathi Patnaik, Chief Credit and Risk Officer at Vayana, explains why India's MSMEs remain underserved.
Banks favour large distributors and established suppliers, where financial data is available and lending costs are lower. Smaller businesses often rely on costlier credit.
Yet credit risk is only part of the problem. Despite recording default rates below 1%, supply chain financing remains costly to extend to smaller borrowers. Patnaik explains how GST records, invoices and transaction data could help banks assess borrowers efficiently and offer cheaper financing.
Key Insight
India's MSME financing gap is not simply about credit risk, but the high cost of serving smaller borrowers. Better transaction data and risk assessment could make affordable lending commercially viable at scale.
THE CORE QUIZ
Which company makes the Pulsar range of motorcycles? |
THE MEDIA ROOM
Why Reality Television Makes Business Sense
What makes reality television attractive when content budgets are under pressure?
In this episode of The Media Room, Vanita Kohli-Khandekar speaks with Deepak Dhar of Banijay Asia and Endemol Shine India about content economics and established entertainment franchises.
Dhar explains how shows such as Bigg Boss sustain engagement across television, streaming and social media, while successful formats are adapted for regional audiences.
Yet scripted and unscripted productions have different economics. Reality shows offer shorter production cycles, greater advertiser integration and returns within three to six months. Scripted dramas take longer to develop, but successful productions can generate revenue over several years.
Key Insight
As content budgets remain under pressure, the ability to generate repeatable audience engagement and returns across multiple markets is becoming increasingly important to the economics of entertainment production.
HOW INDIA’S ECONOMY WORKS
The RBI's Difficult Choice Between Inflation And Growth
Can India's economic recovery withstand higher borrowing costs as inflation and currency pressures mount?
In this episode of How India's Economy Works, Puja Mehra speaks with Rahul Bajoria, Head of India and ASEAN Economic Research at Bank of America, about the RBI's challenge of balancing growth, inflation and rupee stability.
With inflation rising, Bajoria explains why gradual interest rate normalisation may be necessary. Yet higher rates may not necessarily attract foreign capital or stabilise the rupee, as India's appeal to global investors depends more on its growth prospects than higher yields.
Aggressive tightening could instead raise borrowing costs and slow private investment just as the economy begins to recover.
Why This Matters
Using interest rates to support the rupee could weaken the very growth prospects that attract foreign investment. The RBI's challenge is to manage inflation without compromising India's economic recovery.
MESSAGE FROM OUR SPONSOR
The CBD Brand that Actually Does What It Says
CBD is having a moment and CBD brands are everywhere right now. But with so many options, it can be tough to know what to look for – and which brands actually follow through on their claims.
That’s where CBDistillery sets itself apart. For the past decade, all of CBDistillery's products have been made with non-GMO, US-grown industrial hemp and with 100% clean ingredients – no corn syrup or artificial colors, flavors, preservatives or sweeteners.
They frequently introduce new and innovative products formulated to meet a variety of wellness needs and customer preferences. And every single batch of CBDistillery’s gummies, oil tinctures, topicals and softgels are tested by an independent, accredited lab to make sure what’s in the package matches what’s on the label.
Right now, CBDistillery is offering our readers a special deal: save 50% on orders of $75 or more with code NEWS50!
Eat well without any effort.
Getting the nutrition you deserve doesn’t need to take up all your time. CookUnity delivers fresh dishes handcrafted by award-winning chefs, ready to heat in minutes. Build a custom menu for your entire week, so you can spend your evenings on your terms—not scrubbing pans. Skip, pause, or change your plan size anytime.
THE TEAM
✍️ Zinal Dedhia, Kudrat Wadhwa | ✂️ Rohini Chatterji | 📹️ Manjoosha, Vinay Joshi | 🎧 Joshua Thomas
🤝 Reach 80k+ CXOs? Partner with us.
✉️ Got questions or feedback? Reach out.
💰 Like The Core? Support us.