News Nook: Oct 11, 2024

 Indian Sector Specific News:

A) Indian Telecommunication

1) India's Digital Public Infrastructure Expands Globally

• 12 countries, including Nepal, Sri Lanka, Singapore, and France, are adopting India's digital public infrastructure to provide essential services.
• India is working with 20 nations to share its technology, with agreements signed to transfer digital expertise. Bhutan was an early adopter of India’s UPI system.
• India is helping developing countries build their digital infrastructure through partnerships with the UN, focusing on open-source technologies and financial inclusion.
• Source: ET Telecom

B) Indian Renewable Energy:

1) India Needs $200 Billion for Renewable Energy by 2030

• India requires about $200 billion to develop renewable energy assets by 2030, with energy demand expected to grow due to expanding data centers, electric vehicles (EVs), and green hydrogen.
• The country's installed power capacity is set to grow at a 10% annual rate, from 450.8 GW now to 777.1 GW by FY30, driven by supportive policies and industrial efforts.
• Renewable energy auctions must increase to 60 GW per year to meet the goal of 500 GW of renewable energy by 2030.
• Source: Economic Times.

C) Indian BFSI:

1) Banks' Earnings Slow Down in Q2FY25

• Indian banks made less profit in Q2FY25 due to slower loan growth and higher costs for attracting deposits.
• The gap between loans and deposits narrowed, and banks had to offer higher interest rates, which reduced their profit margins.
• Big banks like HDFC and ICICI are handling these challenges better, while public sector banks are feeling more pressure.
• Source: Business World

2) RBI's Policy Shift to Neutral

• RBI changed its stance from reducing rates to a neutral position, focusing on managing inflation and supporting domestic growth.
• Inflation risks remain due to rising food prices, global tensions, and increasing oil and commodity costs.
• To cut rates in the future, RBI wants to see slower retail lending and improved household savings.
• Source: Economic Times

Indian Economy and Government Initiatives

1) Amit Shah at PHD Chamber Annual Session

• Amit Shah praised PM Modi's leadership in transforming India's economy and infrastructure over the last decade.
• He highlighted achievements like boosting public bank profits, attracting foreign investment, and digital advancements.
• Shah honored Ratan Tata's legacy and discussed India's future goals of becoming a global leader by 2047.
• Source: PIB Delhi

2) Economy News Highlights for October 10, 2024

• India's inflation likely hit a three-month high in September, mainly due to rising vegetable prices and base effects.
• UNDP has partnered with India to boost manufacturing, job creation, and sustainable development, focusing on private collaboration.
• Source: Livemint

Indian Stock Market Overview:

• Indian stock market (Nifty 50 and Sensex) is expected to open weak, with Gift Nifty indicating a small discount.
• Nifty 50 formed a small negative candle, suggesting range-bound action between 25,150 and 24,950 levels.
• If Nifty falls below 24,900, it may drop further to 24,750–24,700; resistance is around 25,150–25,300.
• Bank Nifty is showing indecisiveness, with possible upside, though weakness persists, with resistance at 51,700.
• Tata Group shares saw strong gains, with Tata Investment Corporation leading at 15% and other stocks like Tata Teleservices, Tata Chemicals, Tata Elxsi, and Tata Power rising as well. 
• This surge reflects investor sentiment following Ratan Tata's passing, honoring his legacy by buying shares across the group .
• Source: LiveMint

International Markets:

• The World Bank projects India's GDP growth at 7% for FY25, supported by strong agricultural output and policies that boost employment.
• Inflation remains within the RBI’s target range of 2–6%, and services exports are resilient despite muted goods exports.
• Carbon price shocks from the EU ETS lead to an immediate decline in global stock returns, particularly affecting high-emission sectors, with spillovers across countries via supply chains.
• The impact is significant but short-lived, showing no reversal in the months after the shock, with future research exploring further determinants of these effects.