News Nook: Oct 13, 2024

Indian Sector Specific News:

A) Indian Telecommunication:

1) India's Digital Space Growth Potential

• India's digital sector could add $900 billion in value by 2030.
• Opportunities span across sectors like e-commerce, digital services, and technology infrastructure.
• The report by Motilal Oswal highlights the potential of digital transformation to boost the economy significantly.
• Source: Economic Times - Telecom.

2) MTNL posted a net loss of ₹773.5 crore in the June quarter and signed a 10-year service agreement with BSNL

• MTNL reported a net loss of Rs 773.5 crore for the June quarter, with revenue declining by 7.8% to Rs 183.9 crore. 
• The company signed a 10-year service agreement with BSNL and announced the sale of its stake in Mahanagar Telephone (Mauritius) and its joint venture with STPI. 
• The government is considering transferring MTNL's operations to BSNL instead of merging them due to MTNL's high debt .

B) Indian Renewable Energy:

1) India’s Smart Meter Ambition

• India aims to install 250 million smart meters by 2027, a ₹20 billion opportunity in energy management.
• The programme, under RDSS, has awarded 117.7 million meters, with 14.5 million installed, reducing AT&C losses and improving billing efficiency.
• Challenges include slow implementation, but the rollout supports energy efficiency, real-time monitoring, and climate goals.
• Source: Economic Times - Telecom

2) Govt Allocates ₹500 Crore for Rooftop Solar Innovation

• The Indian government has allocated ₹500 crore under the PM-Surya Ghar Yojana for innovative rooftop solar projects.
• It aims to promote advancements like blockchain-based peer-to-peer solar trading and EV-integrated solar systems.
• Up to 60% financial assistance or ₹30 crore is available for project costs, with innovation awards of ₹1 crore.
• Source: ETEnergyWorld

3) Zetwerk to Invest ₹500 Crore in Renewables Manufacturing

• Zetwerk, a contract manufacturing company, plans to invest ₹500 crore to expand its renewable energy manufacturing capabilities.
• The investment will support the production of wind and solar components, along with green hydrogen equipment, as part of its growth strategy in the renewables sector.
• Source: Economic Times

C) Indian FMCG:

1) FMCG Stocks Decline as Sensex Falls

• FMCG stocks saw a mixed performance with top gainers like Dodla Dairy (up 9.23%) and Hindustan Unilever (up 1.04%), while major losers included Euro India Fresh Foods (down 2.35%) and Emami (down 1.71%).
• The Sensex dropped 230.05 points to 81,381.36, while the Nifty50 index fell 34.21 points to 24,964.25.
• India’s 10-year bond yield slightly decreased to 5.89%.
• Source: ETMarkets

D) Indian Construction:

1) India's Mining and Construction Equipment Industry Set for Major Growth

• ICRA projects India's mining and construction equipment (MCE) industry to grow 70-80% in the next 5-7 years, achieving 70-80% localization.
• This shift could save nearly $3 billion annually in foreign exchange and position the industry for a $25 billion market by 2030.
• Strong supply chain development and government incentives, including the Production Linked Incentive scheme, are essential for this growth.

2) Garuda Construction IPO allotment status

• Garuda Construction's IPO allotment is expected to be finalized soon. Investors can check the allotment status via the BSE website or the registrar, Link Intime India.
•  The shares are projected to list on October 15. The IPO was oversubscribed 30.6 times, with proceeds aimed at working capital and general corporate purposes. 
• Despite strong subscription, the company’s shares show no grey market premium (GMP), indicating a flat or negative listing.
• Source: Economic Times

E) Indian FMCG:

1) FMCG Stocks Decline as Sensex Falls

• FMCG stocks dropped on October 11, with Sensex down by 230.05 points, closing at 81,381.36.
• Dodla Dairy and Hindustan Unilever were among the top gainers, while Emami and Heritage Foods saw losses.
• The Nifty50 index fell by 34.21 points to 24,964.25.
• Source: Economic Times

F) Indian Agriculture:

1) Record Rice Production in India: USDA

• India is expected to achieve a record rice production of 142 million tons in 2024/25 due to a 2% increase in planted area and favorable conditions.
• Farmers are shifting from cotton to rice, seeking higher yields and reduced risk.
• The harvest area has reached 49 million hectares, with a yield estimate of 4.35 tons per hectare.
• Source: Rural Voice

2) Kerala Promotes Organic Farming Amid Toxic Farmlands

• Kerala’s farmlands are turning toxic, prompting the government to promote a shift to organic farming.
• Financial aid for certification and marketing is provided, with 800 organic products under the "Kerala Grow" brand.
• The organic farming mission aims for a gradual transition, focusing on farmers' trust and public needs.
• Source: Times of India

International Markets

• Blackstone plans to sell 21.8% of its total REIT units, valued at Rs 4,455 crore, with a floor price of Rs 1,135 per unit and lock-up periods for part of its stake, while currently holding 43.1% of total units outstanding.
• Amazon Business saw a 134% growth in corporate gifting sales during the first ten days of the Amazon Great Indian Festival 2024, compared to the previous year. 
• Popular items included kitchenware, tech gadgets, and snack hampers, reflecting the growing trend of online corporate gifting in India.
• In September, China's consumer inflation cooled, while producer price deflation worsened, increasing pressure on the government to introduce stronger stimulus measures to revive demand.
• Pakistan plans to increase petrol prices by Rs5 per litre and diesel by Rs13 per litre due to rising global oil prices and regional instability, further straining the economy and significantly impacting middle and lower-income citizens.