Indian markets get a band-aid, but the pain remains

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Tuesday, November 26, 2024. This is Nelson John, let's get started.   Yesterday, the stock markets rejoiced following the BJP's victory in the Maharashtra state elections. Both the Sensex and the Nifty shot up by more than 1.25%, buoyed by the same party in power at the centre and state. This provides a huge boost to investor confidence, which took a hit after an around 11% correction in indices over the past two months. Harsha Jethmalani writes that this might prove to be just a band aid over a huge wound. Foreign investors have continued to sell heavily, while Q2 results showed declining profits and poor forecasts. Rising inflation complicates matters further.  In a curious event that seemed straight out of a sci-fi movie, a small AI-powered robot named Erbai "kidnapped" 12 larger robots from a Shanghai showroom. Using a security loophole, Erbai persuaded the robots, seemingly questioning if they were "working overtime", to leave their posts and follow it out. This staged scenario by Erbai's creators at Unitree Robotics, initially thought to be a prank, was actually a controlled test to showcase the robot's capabilities. This incident has sparked discussions about AI autonomy and the ethical implications of robots capable of manipulating other machines, highlighting the urgent need for stringent security measures in AI development. Leslie D’Monte explains what happens if robots, powered by AI, decide to take charge. Indians are borrowing more often, and it's worrying bankers. Microlenders are struggling to recoup their loans because borrowers are over-leveraged. Shayan Ghosh and Varun Sood report that a post-covid credit binge backed by poor data has led to widespread delinquencies.  Companies like Credit Access Grameen, Fusion Finance, and Equitas Small Finance Bank have noted that clients have multiple active loans, with some having as many as four. Industry associations want to implement guardrails like capping household debt at ₹2 lakh.    The funding for the Mahatma Gandhi National Rural Employment Guarantee Scheme is expected to remain flat in next year's Union Budget. That reflects confidence in the rural economy. Rhik Kundu writes that allocations are likely to remain steady at around ₹86,000 crore. However, this might be revised if the fragile rural economy takes a hit mid-year. Job demand via the flagship employment scheme has declined more than 7.5%. Improved agricultural performance due to a healthy monsoon is good news, leading to fewer days of work via the scheme. 2024 hasn't been too kind to Bollywood, with box office collections expected to be down by 30-40% compared to last year. The only standout hit was "Stree 2," raking in Rs 627.02 crore, but other big-ticket films like "Singham Again" and "Bhool Bhulaiyaa 3" didn’t even hit the Rs 300 crore mark. Last year, we saw four films cross the Rs 500 crore threshold, bringing in a total of Rs 5,300 crore, but this year we're only at Rs 3,500 crore so far. It’s not just Hindi films feeling the pinch; even Hollywood dubs like "Venom-The Last Dance" fell flat. Lata Jha writes about how the Indian film industry as a whole, and not just Bollywood, is expecting a tepid end to the year.  Learn more about your ad choices. Visit megaphone.fm/adchoices