News Nook: Sep 29, 2024

Indian Sector Specific News:

A) Indian Telecommunication:

1) Nokia Selected by Vodafone Idea as Major 4G & 5G Partner

• Nokia is chosen as a key partner for Vodafone Idea's (Vi) 4G and 5G network expansion in India.
• Part of a $3.6 billion deal with Nokia, Ericsson, and Samsung for network equipment over three years.
• Vi plans to spend ₹55,000 crore to expand 4G coverage and launch 5G services in key markets.
• Despite financial losses, Vi remains optimistic about securing future funding for its network expansion.
• Source: Economic Times 

2) Team Telecom Armenia Announces Major Network Upgrade

• Team Telecom Armenia is launching its biggest network and software upgrade from September 30 to October 1.
• During the upgrade, customers may face disruptions in payments, mobile, internet, and other services.
• The upgrade will improve the company’s network infrastructure, server equipment, and core systems to enhance service quality and support.
• This is part of the company’s long-term commitment to improving telecom services across Armenia.
• Source: Telecom Armenia Official Announcement.

B) Indian Power:

1) India's Power Sector Set for Major Growth

• India's power sector is expected to see a ₹40 trillion investment opportunity over the next decade, driven by growing demand and economic growth.
• Power demand is projected to increase by 7% annually, fueled by factors like urbanization, electric vehicles (EVs), and data centers.
• A large part of the investment will focus on renewable energy, with India aiming for 500 GW of renewable capacity by 2030.
• The shift towards cleaner energy sources and modern infrastructure will help reduce reliance on coal and improve earnings visibility.
• Source: Economic Times .

C) Indian Renewable Energy

1) Windergy India 2024: Advancing Wind Energy in India

• Windergy India 2024, a major trade fair and conference for wind energy, will take place from October 23-25, 2024, at the Chennai Trade Centre.
• The event will focus on India's wind energy sector, showcasing innovations and promoting collaboration among industry leaders, policymakers, and international participants.
• With India aiming for 500 GW of offshore wind capacity, the conference will highlight key advancements, investment opportunities, and regulatory frameworks in wind energy.
• Around 300 exhibitors from India and abroad will showcase cutting-edge solutions, with international pavilions from countries like Denmark, Spain, and the UK.
• Source: Indian Wind Turbine Manufacturers Association (IWTMA).

D) Indian E-Commerce:

1) Digital Growth Opportunities for MSMEs in India

• Micro, small, and medium enterprises (MSMEs) play a crucial role in India's economy, contributing nearly 29% to the country's GDP. However, many face challenges in accessing finance and larger markets due to a lack of assets and digital infrastructure.
• Digitalisation, especially through online financial platforms like UPI and e-commerce, is helping MSMEs overcome these hurdles. In fiscal 2024, UPI transactions grew significantly, highlighting the shift toward digital payments.
• Government initiatives such as the Credit Guarantee Scheme and platforms like Open Network for Digital Commerce (ONDC) and Government e Marketplace (GeM) are supporting MSMEs in adopting digital tools, improving their market reach, and providing easier access to credit.
• Despite progress, a significant number of MSMEs are still in the process of going digital. As more MSMEs embrace technologies like social media marketing and digital payments, they can expand their businesses and contribute to India's economic growth.
• Source: CRISIL Survey and Economic Survey 2024

2) Surge in Quick Commerce Sales in India

• India's quick commerce industry has seen sales increase by over 280% in the past two years, with the Gross Merchandise Value rising from USD 0.5 billion in FY22 to USD 3.3 billion in FY24.
• Quick commerce is growing at an impressive annual rate of 73%, significantly outpacing traditional e-commerce, which has a growth rate of 14%.
• The market is expected to grow to USD 9.95 billion by 2029, indicating a substantial opportunity for further expansion, especially since it currently captures only 7% of the total addressable market valued at USD 45 billion.
• Quick commerce platforms are increasingly partnering with manufacturers for direct sourcing to streamline operations and reduce costs, ensuring faster and more efficient delivery services.
• Source: Economic Times

Indian Stock Market Overview:

• Policybazaar shares plummeted by 15%, while CE Info Systems recorded its biggest weekly gain. Nykaa has been downgraded to a ‘sell’ recommendation .
• Foreign Portfolio Investors (FPIs) invested ₹57,359 crore in Indian equities in September, marking the highest inflow year-to-date, driven by a shift in the US Federal Reserve's policy .
• Oil prices saw a weekly decline, with WTI down by 5% and Brent losing 3% to $71 due to OPEC+ supply concerns amidst China's lack of fresh stimulus .
• Mutual fund managers are holding substantial cash reserves, indicating a cautious approach toward potential market corrections. Meanwhile, the Sensex is approaching 100,000, driven by optimistic economic growth .
• Source- livemint

International Markets:

• The Dow Jones Industrial Average reached a new record high, indicating strong performance in that index.
• While the Dow performed well, both the S&P 500 and Nasdaq Composite experienced slight declines, showing varied performance across Wall Street.
• Martin Schulz, Head of International Equity Group at Federated Hermes, discussed key observations from three significant international markets: China, Japan, and Brazil.
• Source: YahooFinance