News Nook: Oct 20, 2024

Indian Sector Specific News:

A) Indian BFSI:

1) ACESO Expands Life Insurance Assignment Services

• ACESO has made it easier for people with life insurance policies to get cash by assigning their policies to all major private insurers. 
• This means policyholders can access money from their policies without losing the life cover as  their ALIP program offers a better option than surrendering the policy, where they'd only get a small part of its value. 
• ACESO uses a secure online platform, with a trusted SEBI-registered organization to manage the process safely, making it simple for policyholders to unlock the value of their insurance.
• Source: Economic Times

2) RBI May Take Action Against More NBFCs to Curb Lending Malpractices

• The RBI has ordered four NBFCs, including Asirvad Microfinance and Arohan Financial Services, to stop loan approvals and disbursements starting October 21, 2024, due to regulatory non-compliance.
• A Morgan Stanley report suggests more NBFCs could face similar scrutiny, with lending rates alone not being the sole reason for action.
• RBI’s move aims to enforce fair lending practices and protect borrowers, with restrictions staying until the NBFCs comply fully with regulations.
• Source: Economic Times

B) Indian IT:

1) IT Sector Rebounds with Strong Hiring

• Top five Indian IT companies hired over 17,500 employees in Q2 FY25, reversing a seven-quarter decline.
• The surge follows increased demand and new deal wins, led by Tech Mahindra and TCS.
• Companies plan to hire 82,000 freshers in FY25.
• Source: Economic Times

C) Indian Agriculture:

1) Rome Declaration and Global Family Farming Forum at WFF

• Rome Declaration: Focuses on addressing water scarcity in agriculture due to climate change, promoting sustainable food systems.
• Global Family Farming Forum: Highlights that family farms produce 70-80% of the world’s food but struggle with access to resources and markets.
• IFAD Initiative: Aims to raise $10 billion over the next three years to enhance rural productivity and resilience.
• Source: downtoearth

2) National Agriculture Conference 2024 Highlights

• Agriculture Minister Shivraj Singh Chauhan emphasized better cooperation between the Centre and states to address farming challenges, such as price protection for farmers and climate-resilient crops.
• Stressed the need for tailored farming practices for different regions, like terrace farming for hill states.
• Arunachal Pradesh asked for more funding for farming schemes, support for terrace farming, and a new Organic Agriculture University.
• Source: Easternsentinel

D) Indian Telecommunication:

1) Robotics for Good Youth Challenge in India

• The ITU-WTSA 2024 hosted a Robotics for Good Youth Challenge in New Delhi on October 17, 2024, featuring 51 teams from 11 states competing to create robotic solutions for disaster management.
• The competition aims to promote inclusivity in learning robotics and coding, with teams building robots to save earthquake victims as part of a simulated disaster scenario.
• Winners from the junior and senior categories will advance to the international finals in Geneva for the AI for Good Global Summit 2025.
• Source: PIB Delhi

E) Indian Pharma:

1) Gujarat FDCA Training Initiative

• The Gujarat FDCA is training 150 officers on updated guidelines to ensure drug manufacturers meet global safety and quality standards.
• The revised Schedule M guidelines focus on maintaining cleanliness and preventing contamination in pharmaceutical facilities.
• This initiative aims to protect public health and strengthen Gujarat’s position in the global pharmaceutical market.
• Source: pharmabiz

2) New Gargle Formulation from SOA University

• Researchers at SOA University in Odisha have developed an innovative gargle formulation that provides relief for up to four hours with a single use, compared to the 15-30 minutes of existing products.
• The formulation, based on nanofiber technology, is set for commercial production following a licensing agreement with the National Research Development Corporation.
• This breakthrough is expected to enhance drug efficacy and reduce the need for multiple doses, marking a significant advancement in throat infection treatments.
• Source: newindianexpress

F) Indian Automobile:

1) Mahindra's Revolution in the SUV Market

• Mahindra & Mahindra, led by Veejay Nakra, has transformed SUVs in India from basic vehicles to tech-driven lifestyle icons, emphasizing innovation and design.
• The company has introduced pioneering technologies, such as CRDi in the Scorpio and a 6-inch touchscreen in the XUV500, aiming to democratize automotive technology.
• Their latest model, the Thar Roxx, showcases advanced features like ADAS and a panoramic sunroof, reinforcing the brand's commitment to creating aspirational vehicles at competitive prices.
• Source: Business Today

2) Vehicle Exports from India Increase by 14% in H1 FY2025

• Indian vehicle exports rose 14% in the first half of FY2025, totaling 2.52 million units, recovering from a decline the previous year.
• Growth was seen across various segments: passenger vehicles up 12%, two-wheelers up 16%, and commercial vehicles up 12%.
• Major exporters included Maruti Suzuki for passenger cars and Bajaj Auto for two-wheelers, with positive demand expected to continue.
• Source: Autocarpro

3) Overdrive's Latest Insights on Automobiles and Motorcycles

• Overdrive features test drives of the new 2025 Mercedes-Benz E-Class, which sets a new luxury standard in executive sedans exclusive to India.
• The upcoming Skoda Kylaq is generating buzz as a compact SUV with 95% localization, ensuring competitive pricing and a global launch under the same brand.
• Retro motorcycle enthusiasts can look forward to the BSA GoldStar 650, adding charm to the latest lineup of vehicles.
• Source: cnbctv

G) Indian Infrastructure:

1) BEML and PFC Join Forces for Defence and Infrastructure Projects

• BEML and PFC have signed a strategic MoU to enhance cooperation in financing and executing critical infrastructure projects, focusing on defence and rail transportation.
• The agreement aims to support the Indian government's AatmaNirbhar Bharat vision by advancing defence manufacturing and promoting self-reliance in production.
• This partnership combines BEML's expertise in infrastructure and defence with PFC's financial capabilities to drive transformative projects that will benefit India's economy and security.
• Source: Business Standard

2) Afcons Infra to Launch Rs 5,430-Crore IPO on October 25

• Afcons Infrastructure Ltd, part of the Shapoorji Pallonji Group, plans to launch a Rs 5,430-crore IPO on October 25, consisting of fresh shares and an offer for sale from promoter Goswami Infratech.
• The IPO proceeds will be allocated for purchasing construction equipment, working capital, debt repayment, and general corporate purposes.
• The offer size was reduced from an initial Rs 7,000 crore following pre-IPO fundraising, with the bidding for anchor investors starting on October 24.
• Source: Economic Times

Indian Economy and Government Initiatives

1) Sitharaman Discusses Strengthening India-Mexico Economic Ties

• Finance Minister Nirmala Sitharaman met Mexico's Finance Minister Rogelio Ramirez de la O, discussing mutual interests and enhancing economic ties.
• She emphasized collaboration through India's startup ecosystem, infrastructure spending, and digital transformation, highlighting opportunities in pharma and automotive sectors.
• At the India Mexico Trade and Investment Summit, she stressed joint efforts on diversification and resilience in critical sectors like semiconductors and electronics.
• Source: Outlook Business

2) Canada-India Relations Strained Over Allegations

• Canada's allegations against India, particularly about the involvement in Hardeep Singh Nijjar's death, have severely strained diplomatic relations.
• Experts highlight that Canada is not actively pursuing de-escalation, with India responding firmly by recalling diplomats and expelling Canadian diplomats.
• Defense expert Shiwalee Deshpande criticized Trudeau's remarks as irresponsible, while KP Fabian suggested further diplomatic staff reductions are possible.
• Both countries face pressure to de-escalate, but tensions remain high.
• Source: Economic Times

Stock Specific News:

• Oxygenta Pharmaceutical, a microcap in the pharmaceutical industry, reached an all-time high stock price of Rs.96.5, with a 96.94% gain in 20 days, outperforming the sector by 1.67%, and showing 210.29% annual growth compared to Sensex’s 23.30%
• Jio Financial Services reported a 3% rise in Q2 net profit to ₹689 crore, with revenue up 14% to ₹693.5 crore; it also became a Systemically Important Core Investment Company (CIC) after RBI approval in July 2024.
• Tech Mahindra's net profit surged 46.8% sequentially to ₹1,250 crore in Q2, boosted by operational improvements and a one-time land sale gain. Revenue grew 2.4% sequentially to ₹13,313 crore, led by communication, hi-tech, and media sectors. Operating margin improved to 9.6%.

Bonus Briefs:

• The IMF warns that global issues like wars, trade barriers, and high debt are slowing economic growth, making it harder for countries to reduce poverty and invest in clean energy.
• Global monetary easing by central banks, geopolitical tensions (Israel-Iran), and stronger-than-expected economic data are influencing asset prices and market sentiment.
• Key economic events next week include the Bank of Canada’s interest rate decision, ECB and BoE speeches, and global PMI releases, which could impact currencies and market movements.
• Gold prices surged over 30%, reaching $2,720/ounce due to Middle East tensions, US election uncertainty, and expectations of monetary easing. Analysts predict it could reach $3,000/ounce within 6-12 months.
• The US dollar rose for five consecutive days before falling on October 18, driven by Chinese economic stimulus. Despite the dip, the dollar index is up 2.7% this month, its biggest rise since February. The Federal Reserve may cut interest rates in November, fueling market speculation.