News Nook: Sep 30, 2024

Indian Sector Specific News:

A) Indian Edtech:

1) Vedantu Secures INR 19.25 Crore in Funding for Sustainable Growth

• Vedantu raised INR 19.25 crore ($2.4 million) through a mix of debt (INR 17.5 crore in non-convertible debentures) and equity funding.
• Its FY23 revenue fell to INR 152.5 crore, reflecting challenges in the Indian edtech sector, including increased competition and concerns over screen time.
• The funds will likely be used to expand course offerings, improve technology, and enhance marketing to attract more students.
• Vedantu’s strategy of combining debt and equity funding aims to promote sustainable growth and long-term profitability in a competitive market.
• Source: Adapted from a news article on Vedantu's recent funding round.

B) Indian Construction:

1) Sustainable Building Market Grows in India's Tier I Cities

• India’s sustainable building market is growing rapidly in Tier I cities, with companies like DLF and ITC Hotels adopting green practices.
• A white paper projects that the green building market will reach Rs 3.2 lakh crore by 2025, driven by the adoption of sustainable construction standards.
• Key industries, including cement and steel, are implementing renewable energy strategies to cut emissions, despite the challenges of energy-intensive processes.
• Although advanced sustainability features may increase construction costs by 2-5%, they lead to long-term benefits such as lower utility bills and higher resale value.
• Source: BusinessToday

C) Indian Renewable Energy:

1) NLC India Aims to Boost Renewable Energy Capacity to 10 GW by 2030

• NLC India aims to increase its renewable energy capacity to 10 GW by 2030, up from the current 1.4 GW, and has established new subsidiaries to support this initiative with several new projects underway in Neyveli, Barsingsar (Rajasthan), Gujarat and Assam.
• NLCIL signed a 25 year power usage with Telangana state DISCOMs for 200 MW of solar energy and aims for 10,000 MW of capacity by 2030. 
• NLC is committed to continue the vast journey, aiding to reach the target of zero emissions by 2070 set by the Prime Minister, and transitioning from lignite to renewable energy sources. 
• Source: aninews

2) Fossil Fuels' Dominance in Electricity Generation to End by 2030: RBI

• Fossil fuel dominance in India's electricity generation is expected to end by 2030, says RBI.
• Renewable energy is predicted to cross 50% globally in the same period.
• The RBI report stresses tripling investments in renewable energy to meet net-zero targets.
• It highlights the need to focus on hard-to-abate sectors like steelmaking and aviation, where low-carbon alternatives are still developing.
• Source: Economic Times.

3) India Seeks 6,000 MW Renewable Power with Storage for Peak-Hour Supply

• India aims to connect 35 GW of solar and wind energy by March 2025, targeting a 500 GW non-fossil power capacity.
• State-run SJVN issued a tender seeking 6,000 MW of renewable energy with storage for peak-hour electricity supply.
• India added 10 GW of renewable capacity from April to August 2024, reaching a total of 153 GW.
• Source: Business Standard

D) Indian Economy and Government Policies:

1) Govt Considering Regulatory Mechanism for FDI Supervision

• India is discussing setting up a foreign investment regulatory system to monitor and review FDI after investments are made.
• The mechanism will ensure that FDI benefits the economy and comes from legitimate sources.
• India remains a top FDI destination due to its market size, stable policies, and skilled workforce.
• Steps like easing FDI norms in sectors like space, e-commerce, and digital media, along with production-linked incentives (PLI), have bolstered investment.
• Source: Economic Times

2) India Climbs to 39th Rank in Global Innovation Index 2024

• India ranks 39th in the Global Innovation Index 2024.
• The ranking reflects improvements in research, technology, infrastructure, and human capital.
• Key contributors include government initiatives like Make in India, Startup India, and Atal Innovation Mission.
• Increased public and private investments in R&D and digital transformation contributed to the rise.
• India continues to face challenges in infrastructure, education, and regulatory frameworks to climb further.
• Source: indianewsnetwork

3) Global IT Market Recovery Signals Growth for Indian Tech Companies

• Accenture's strong Q4 FY24 results suggest a recovery in the global IT sector, benefiting Indian tech firms.
• Increased demand for outsourcing and large-scale deals drives the rebound, with Indian IT companies likely to follow suit.
• HDFC Securities highlights Accenture’s growth as an indicator of potential positive trends for Indian firms.
• However, growth may vary across sectors, with Indian companies having less exposure to public services deals.
• Source: ddnews

E) Indian BFSI:

1) Tamilnad Mercantile Bank Expands with Focus on MSMEs

• Tamilnad Mercantile Bank (TMB) plans to open 40 new branches beyond Tamil Nadu.
• The bank is focusing on growing its MSME sector, digital banking, and retail portfolios.
• TMB has hired consultancy firm McKinsey to enhance its MSME lending capabilities.
• Vincent Menachery Devassy is the new Executive Director, effective September 27, 2024.
• Source: Financial Express

F) Indian Agriculture:

1) Viksit Bharat 2047: Advancing Agriculture for Higher GDP

• CropLife India held a national conference during its 44th AGM, focusing on the role of crop protection in Indian agriculture.
• Key discussions revolved around boosting agriculture's contribution to India's GDP growth, aiming for 7-8% by 2047.
• Ministers emphasized partnerships with farmers, using technology, and regulatory reforms to drive sustainable agricultural growth.
• The conference also highlighted the importance of public-private partnerships and modern innovations like drone technology and AI for enhanced agricultural practices.
• Source: ptinews

Indian Stock Market Overview:

• The Indian stock market sees the Nifty Metal Index outperforming despite broader market weakness, and large-cap stocks gaining traction.
• IPO activity remains robust, with notable upcoming listings from Hyundai and Swiggy expected to raise ₹60,000 crore in the coming months.
• Gold prices are reported at ₹77,573 for 10 gm in Delhi, while silver is at ₹98,100 per kg.

International Markets:

1) Impact of Israel-Hezbollah Conflict and China's Stimulus on Global Stock Markets

• Asia's stock markets showed hesitation due to ongoing Israel-Hezbollah conflict and uncertainties in the Middle East, while China's shares continued to rally.
• The Shanghai Composite rose 4.4%, supported by new stimulus measures, despite weak manufacturing data, while Japan's Nikkei fell 4.1% amid concerns over the new Prime Minister’s stance on interest rates.
• Investors are also awaiting major U.S. economic data, including a payroll report that could impact the Federal Reserve's rate decisions .
• Source: Hindustan Times