Mercedes-Benz India is contemplating another price hike in April 2024, driven by the weakening rupee against the euro, as per news reports.

According to Managing Director & CEO Santosh Iyer, if the rupee continues to depreciate, the luxury automaker will have to adjust its pricing to accommodate rising costs.

Rupee’s Decline Sparks Concerns

The Indian rupee has been on a downward trend against the euro, with the exchange rate dropping from 89.96 on February 12 to a record low of 95.13 on March 12, per RBI data.

As of Tuesday, the euro stood at ₹94.55. This fluctuation is causing concerns for the company, which has been pricing its models based on an exchange rate of ₹90 per euro. The 5-rupee increase translates to a 5-8% rise in costs, prompting Mercedes-Benz to consider passing the burden onto consumers.

Luxury Market Faces Headwinds

Beyond currency fluctuations, the Indian luxury car market is witnessing a period of subdued demand. Iyer highlighted that customer sentiment remains fragile due to geopolitical uncertainties and capital market fluctuations.

While the economy and consumption patterns remain structurally sound, the demand for luxury cars—being sentiment-driven—might stay under pressure for the next two quarters.

However, Iyer remains optimistic, expecting a rebound in sales once market confidence stabilises. He projects that, on an annual basis, sales will either remain flat or show slight growth compared to last year.

Impact of Maharashtra’s EV Tax

However, Iyer expressed concerns over Maharashtra’s recent proposal to impose a 6% tax on electric vehicles priced above ₹30 lakh.

The move, aimed at revenue generation, might dampen demand for high-end EVs. Historically, states that have increased EV taxes have witnessed reduced demand.

Given that tax exemptions were initially introduced to encourage decarbonisation, the new policy could slow down the momentum of EV adoption in the premium segment.

Conclusion

Mercedes-Benz India’s potential price hike underscores the impact of currency fluctuations on luxury car pricing. With the rupee’s depreciation and ongoing economic uncertainties, the industry faces a challenging period. However, as consumer confidence returns and the luxury market stabilises, Mercedes-Benz remains poised for long-term growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

On March 18, 2025, the NSE closed at 22,834.30, up by 325.55 points, marking a 1.45% increase. Meanwhile, the BSE closed at 75,301.26, gaining 1,131.31 points, a rise of 1.53%.

Top Gainers of the Day

1. ICICI Bank

ICICI Bank Limited saw a strong performance, closing at ₹1,311.50, up by 3.35%, with the day’s high reaching ₹1,313.85

2. Larsen & Toubro

Larsen & Toubro Limited also performed well, closing at ₹3,271 with a 3.07% gain, hitting a day’s high of ₹3,278.65, driven by positive market sentiment.

3. Shriram Finance

Shriram Finance Limited gained 3%, closing at ₹641.95, and reached a day’s high of ₹645.70, indicating steady upward movement.

4. Mahindra & Mahindra

Mahindra & Mahindra Limited closed at ₹2,785, up by 2.95%, with the day’s high at ₹2,798, reflecting strong investor interest.

5. Tata Motors

Tata Motors Limited closed at ₹678.80, up by 2.69%, hitting a day’s high of ₹681.70. The company announced a price hike of up to 2% on its commercial vehicles, effective April 1, 2025.

Top Losers of the Day

1. Bajaj Finserv

Bajaj Finserv Limited closed at ₹1,846.50, down by 1.34%, with the day’s low at ₹1,833.25. The company announced the acquisition of Allianz’s 26% stake in Bajaj Allianz Life & General Insurance.

2. Tech Mahindra

Tech Mahindra Limited ended at ₹1,432.90, falling by 0.50%, with the day’s low at ₹1,426.55. The company announced an expanded long-term partnership with Google Cloud to accelerate the adoption of Artificial Intelligence for enterprises globally.

3. Bharti Airtel

Bharti Airtel Limited closed at ₹1,632, down by 0.44%, reaching a low of ₹1,622.10.

Conclusion

On March 18, 2025, the Indian stock market showed positive momentum with both the NSE and BSE closing higher. While ICICI Bank and other top gainers like Larsen & Toubro and Shriram Finance demonstrated strong upward movement, stocks like Bajaj Finserv, Tech Mahindra, and Bharti Airtel faced declines.

This mixed performance highlights the dynamic nature of the market, where investor sentiment can drive notable fluctuations in stock prices. As always, investors should remain cautious and perform due diligence when making investment decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Elon Musk’s Starlink, the satellite broadband venture under SpaceX, is making strides in global connectivity. But can it truly challenge the dominance of Indian telecom giants like Reliance Jio and Bharti Airtel?

While satellite internet has its advantages, particularly for remote regions, questions remain about its affordability, speed, and overall competitiveness in India’s price-sensitive market.

Let’s evaluate whether Starlink can be a real game-changer or if it will serve a more niche role.

Jio and Bharti Airtel vs. Starlink: Price and Speed Comparison

In international markets, Starlink’s broadband plans cost anywhere between $10 and $500 per month, with an additional one-time hardware fee of $250-$380, as per news reports.

In contrast, Indian telecom providers offer home broadband plans starting as low as $5-$7 per month, with high-end packages providing 1 Gbps speeds and streaming service access for just $47 per month.

A crucial difference is data limitations—Starlink’s plans impose data caps, whereas both Jio and Bharti Airtel offer unlimited data.

Starlink’s Role: Expanding Internet Access in Rural India

Rather than competing with Jio and Bharti, Starlink is more likely to complement existing networks by providing connectivity in underserved areas.

Satellite broadband can play a crucial role in bridging the digital divide, especially in regions where fiber infrastructure is difficult to deploy.

Jio and Bharti have already partnered with SpaceX to distribute Starlink’s broadband services. Under these agreements, Indian telecom firms will sell Starlink’s equipment via their retail networks. Jio, in particular, will also offer installation and activation support, targeting businesses, schools, and healthcare centres in rural India.

However, these agreements remain subject to regulatory approval, as SpaceX has yet to receive authorisation to offer Starlink services in India, as per news reports.

Potential for Future Collaboration in Direct-to-Cell Satellite Services

As per news reports, direct-to-cell satellite technology is unlikely to disrupt India’s wireless market for several reasons:

1. Technical Challenges – Maintaining stable smartphone connectivity via satellites remains difficult due to power and antenna limitations.
2. Reliance on 4G/LTE Spectrum – Starlink needs access to telecom providers’ existing spectrum, making it dependent on Jio and Bharti Airtel rather than a direct competitor.
3. Slower Speeds and Reliability Issues – Satellite networks generally have higher latency and lower speeds compared to fiber broadband and traditional mobile networks.

Starlink’s Large Satellite Fleet: A Competitive Edge?

Starlink currently operates a massive low-Earth orbit (LEO) satellite constellation of over 6,400 satellites, giving it an advantage in terms of global coverage, as per news reports.

However, rather than competing directly with Jio and Bharti, this scale positions Starlink as a valuable partner in extending connectivity to difficult-to-reach areas.

For urban consumers, fiber and wireless broadband will continue to be the preferred choice due to their affordability, speed, and unlimited data offerings. Meanwhile, Starlink is expected to focus on niche markets such as remote villages, disaster-prone areas, and specialised enterprise solutions.

Conclusion

While Starlink’s arrival in India brings exciting possibilities, it is unlikely to replace Jio and Bharti Airtel’s broadband services in the mainstream market. The high costs, data caps, and speed limitations of satellite broadband make it less competitive for urban users. Instead, Starlink is expected to complement existing networks by expanding internet access to underserved regions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The operating margins of TV broadcasters are expected to improve by 300 basis points (bps), reaching 15% by the fiscal year 2027, as per a recent analysis by Crisil Ratings.

Digital Expansion to Drive Profitability Growth

The growth in the operating margins will be fuelled by an increasing focus on digital offerings, which are enhancing economies of scale and boosting revenue streams, Crisil Ratings said in a report. The analysis covers broadcasters contributing to 90% of the industry’s total revenue.

While this margin expansion brings profitability closer to pre-pandemic levels, the long-term sustainability of TV broadcasters will depend on how effectively they compete with digital platforms amid changing viewer preferences.

Crisil Ratings highlights that improved profitability will also strengthen credit profiles, with returns on capital expected to rise to 10-12% by FY27. However, this remains lower than the pre-pandemic levels of 12-15% and significantly below the peak of 15% recorded over the last 2 decades.

The Impact of Digital on TV Broadcasting Revenue

Between FY22 and FY25, revenue from traditional TV broadcasting has remained largely stagnant as more consumers shifted towards digital platforms, including OTT services on mobile devices and smart TVs, as well as social media platforms like YouTube and Instagram.

The expansion of broadband and internet penetration continues to accelerate this trend, with digital media offering the advantage of on-demand content and interactive engagement. Consequently, linear broadcasting revenue is expected to remain stable or experience a slight decline.

In response to this shift, TV broadcasters have actively expanded their presence in the digital space, launching their own streaming platforms and offering premium content such as live sports and news.

This strategic expansion has also enabled them to tap into higher advertising revenues, particularly from key sectors such as fast-moving consumer goods (FMCG), automobiles, e-commerce, and real estate.

Advertising and Subscription Revenue Fuelling Growth

The advertising industry has increasingly leaned towards digital channels due to evolving consumer behaviour and the ability of digital platforms to deliver targeted, data-driven advertisements.

Additionally, rising subscription revenues have supported broadcasters as they compete with OTT platforms and digital-only services for content acquisition and subscription income. To maximise profitability, many broadcasters have introduced paywalls, optimised content acquisition costs, and enhanced ad revenue strategies.

Ankit Hakhu, Director at Crisil Ratings, noted, “As a result, digital revenues of these broadcasters grew 15% on average over fiscals 2022-2025 and will continue to grow at double-digits over the next two fiscals. With the linear broadcasting segment nearly flat, this will increase the revenue contribution of digital to 25% by fiscal 2027.”

Conclusion

The digital expansion of TV broadcasters is playing a crucial role in driving profitability, helping them recover from stagnant revenues in traditional broadcasting. By leveraging digital platforms, broadcasters can optimise content distribution, increase advertisement revenue, and improve overall margins.

However, the industry’s long-term growth will depend on its ability to compete with OTT platforms and adapt to shifting consumer preferences.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.