News Nook: Oct 19, 2024

 Indian Sector Specific News:

A) Indian BFSI:

1) Key Highlights from Finance Minister Nirmala Sitharaman's Address at Bank of Maharashtra's 90th Foundation Day

• The Bank of Maharashtra has launched a cash flow assessment tool to better understand and meet the banking needs of Micro, Small, and Medium Enterprises (MSMEs), ensuring they receive effective assistance.
• Ms. Sitharaman emphasized that public sector banks are essential for delivering government insurance schemes to the most vulnerable populations, reinforcing their role in financial inclusion.
• She encouraged banks to enhance their digital services, making them user-friendly, as India's real-time digital payments continue to grow, showcasing opportunities for international engagement.
• Source: PIB Mumbai

B) Indian IT:

1) Stock Market Update: Banking and Metal Sectors Lead

• The stock market is showing a mix of results today, with 25 sectors gaining and 13 losing, and the BSE 500 index up by 0.27%.
• The banking sector (BANKEX) is boosted by Axis Bank's 5.85% rise, while the metal sector (METAL) benefits from Jindal Steel's 4.10% gain.
• The IT sector is facing challenges, with LTI Mindtree dropping 6.65%, negatively impacting other IT indices.
• Source: marketsmojo

2) Foreign Investors Reduce Stakes in Paytm Below 1%

• Societe Generale, UBS Principal Capital Asia, and Tiger Pacific Master Fund have reduced their stakes in Paytm to below 1%, contributing to a decline in foreign institutional ownership from 58.24% in June to 55.53% by September 2024.
• In contrast, Indian mutual funds increased their holdings in Paytm to 7.86% from 6.8%, while Indian investor Akash Bhansali slightly raised his stake from 1.21% to 1.24% during the same period.
• The exact status of the three foreign investors is unclear, as the BSE does not disclose details for shareholders with less than 1% stake.
• Source: moneycontrol

C) Indian Automobile:

1) CII NexGen Mobility Expo 2024 Highlights Future of Indian Mobility

• The CII NexGen Mobility Expo 2024 kicked off in Pune, showcasing innovations in vehicle technologies from 18th to 20th October, focusing on themes like electric, hybrid, hydrogen, and biofuel vehicles.
• Arvind Goel stated the Indian automotive industry, currently valued at $80 billion, is expected to grow to $250 billion, creating jobs and investments while aiming for net zero carbon emissions by 2070.
• Speakers emphasized the need for sustainable mobility solutions to tackle urban challenges like congestion and pollution, highlighting trends in electric vehicles, shared mobility, and technological advancements such as Advanced Driver Assistance Systems.
• Source: autocarpro

2) MG ES5 SUV Revealed as Potential Replacement for ZS EV

• MG Motor has unveiled the MG ES5 EV, which is expected to replace the MG ZS EV in international markets. The launch date has not been confirmed, especially for India.
• The ES5 features a stylish front end similar to other recent MG models and is built on the new Nebula platform. Its dimensions are 4.4 meters in length, 1.8 meters in width, and 1.6 meters in height, with a wheelbase of 2730mm—longer than the ZS EV.
• The SUV offers a single-motor rear-wheel drive setup, producing 167hp and 250 Nm of torque, with a top speed of 170 km/h and a 0-100 km/h acceleration time of 8 seconds. It will be available in three battery sizes, providing ranges of 425 km, 515 km, and 525 km.
• Source: kalingatv

3) Maharashtra Dealers Authorized for On-Site Registration of Commercial Vehicles

• Automobile dealers in Maharashtra can now register commercial vehicles under 7,500 kg GVW directly at their premises, bypassing Regional Transport Offices (RTOs).
• This change is welcomed by transporters, as it saves time and costs associated with RTO visits.
• Despite the benefits, officials express concerns about adherence to vehicle safety norms by dealers; metered taxis remain registered through RTOs.
• Source: freepressjournal

D) Indian Pharma:

1) Torrent Pharma Receives Demand Notice from NPPA

• Torrent Pharmaceuticals has been served a demand notice for ₹6.32 lakh by the National Pharmaceutical Pricing Authority (NPPA) related to the late price approval for a newly launched drug.
• The company stated that the financial impact of this penalty is non-material.
• NPPA is responsible for regulating drug prices and ensuring compliance with the Drug Price Control Order 2013.
• Source: Economic Times

E) Indian Energy:

1) India Set to Become Third-Largest Economy by 2028

• The IEA projects India will become the third-largest economy globally by 2028, with energy demand expected to increase significantly due to population growth and rising vehicle ownership.
• Oil consumption is set to rise by 2 million barrels per day by 2035, with total energy supply projected to increase from 45.4 exajoules (EJ) in 2023 to 70.5 EJ by 2050.
• India will add over 12,000 cars daily and is projected to see a 30% increase in CO2 emissions from road transport by 2035, highlighting challenges in managing infrastructure and air quality.
• Source: Business Standard

2) World Set for 'Age of Electricity' as Fossil Fuel Demand Peaks

• The International Energy Agency (IEA) forecasts that global fossil fuel demand will peak by the end of the decade, leading to surplus supplies and boosting investments in green energy.
• Despite geopolitical uncertainties, a record investment of nearly $2 trillion in clean energy is expected in 2024, almost double that of fossil fuels.
• Future oil prices may fall to $75 per barrel by 2050 under current policies, while liquefied natural gas (LNG) prices are projected to average $6.5-8 per million British thermal units (mmBtu) through 2035.
• Source: Economic Times

3) India's Energy Demand to Surge by 35% by 2035

• India is projected to add over 12,000 cars daily until 2035, leading to a nearly 35% increase in total energy demand under the IEA's Stated Energy Policy Scenario (STEPS).
• The country’s electricity demand will rise sharply, driven by a significant increase in air conditioner usage, and electricity generation capacity is expected to nearly triple to 1,400 GW by 2035.
• Despite a rapid growth in solar energy, coal will remain a dominant energy source, with coal generation expected to be 30% higher than solar PV output by 2035.
• Source: Economic Times

F) Indian FMGC:

1) Vishal Mega Mart Files ₹8,000 Crore IPO with Sebi

• Vishal Mega Mart has submitted updated IPO papers to Sebi, aiming to raise ₹8,000 crore through an entirely offer-for-sale (OFS) of shares by its promoter, Samayat Services LLP, which holds a 96.55% stake in the company.
• The IPO proceeds will go to the selling shareholder, as the company will not receive any funds from this offering.
• Vishal Mega Mart operates 626 stores across India and targets middle- and lower-middle-income consumers, with plans to tap into India's growing retail market projected to reach ₹104-112 trillion by 2028.
• Source: Rediff Money Desk

 Indian Economy and Government Initiatives

1) Karnataka Government May Impose 1-2% Transaction Fee on Aggregator Platforms

• The Karnataka government plans to introduce a 1-2% transaction fee on platforms like Zomato, Swiggy, and Uber to fund a welfare board for gig workers, improving their working conditions and providing social security benefits.
• The fee will apply to all transactions across various sectors, including food delivery and ride-sharing, with collected funds directed towards healthcare and insurance programs for gig workers.
• While consumers may experience slightly higher costs for using these services, the focus remains on supporting the welfare of gig economy workers, aligning with the proposed "Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024."
• Source: freepressjournal