TMS Ep270: Oracle's trouble, Reliance JioMart, IT stocks, NaVIC

US technology giant Oracle has been accused of bribing government officials in India, Turkey and UAE to grab business contracts. Charged with violating America’s Foreign Corrupt Practices Act, the company is paying $23 million as penalties to settle the case. In 2012 too, Oracle was accused of bribing Indian officials, and had to settle the matter in the US. Walmart and Cognizant too have faced similar allegations. While multinationals are held accountable and pay for such violations in the US, does the same happen in India?

Meanwhile, US multinationals Amazon and Walmart -- which owns Flipkart -- are up for a stiff competition. Reliance JioMart is upping its game, trying hard to catch up with the two giants. Ahead of festival season, it is offering a one-stop-solution for all shopping needs, from electronics and consumer durables to fashion, lifestyle and grocery. This ambitious digital push raises a crucial question. Can Reliance repeat its brick-and-mortar success in e-commerce? 

Stock of Reliance Retail has soared over 200% in the last five years, in tune with its growth during the period. Meanwhile, fears of a global recession have weighed heavily on domestic IT stocks this year. As investors remain bearish on these counters due to concerns that the US and European clients may slash their IT budgets, do the sector valuations make them a contrarian bet? 

After the IT stocks, let us shift our focus to the government’s plan to make India self-reliant. Mobile manufacturers recently assured the government that they will install NavIC -- a homegrown navigation system developed by ISRO – in new 5G devices starting January 1, 2025. NavIC is India’s alternative to GPS. Let us find out more about it in this episode of the podcast.