News Nook: Oct 22, 2024

Indian Sector Specific News:

A) Indian BFSI: 

1) Q2FY25 Early Results: Slowdown Continues for India Inc

• Corporate revenue grew by 7%, the slowest in five quarters, with net profit up just 5% year-over-year.
• Banks are facing slower credit growth and shrinking margins, while consumer demand in FMCG, automotive, retail, and cement remains weak.
• IT services showed slight improvement, exceeding revenue and earnings expectations.
• Source: Business Standard

B) Indian IT:

1) Samir Arora: Financials Strong, IT Recovery in Sight

• Financials remain a top focus with banks like HDFC Bank, Kotak Bank, and Bajaj Finance showing improvement.
• The IT sector faced challenges since 2022, but Arora believes the worst is over, expecting positive updates ahead.
• Key investment themes include Finance, IT, and Consumer sectors, which dominate portfolios.
• Source: Business Today

C) Indian Pharma:

1) Pharma Exports Grow by 8% in H1 FY25

• India's pharma exports reached $14.43 billion in April-September 2024, up 7.99% year-over-year; September exports grew 7.22% to $2.57 billion.
• In rupee terms, exports increased 9.5% to ₹1.21 lakh crore, while imports grew 5.44% to $4.3 billion during the same period.
• FY24 pharma exports totaled $27.85 billion, a notable rise from $25.39 billion in FY23.
• Source: PharmaBiz

2) Alembic Pharma Gets USFDA Nod for Hypertension Drug

• Alembic Pharma received USFDA approval for Diltiazem Hydrochloride Extended-Release Capsules, used to treat hypertension and chronic stable angina, with an estimated market size of $28.2 million.
• The company has 217 ANDA approvals, including 190 final and 27 tentative approvals.
• In Q1 FY25, Alembic's net profit rose 11.69% YoY to ₹134.71 crore, with a 5.09% revenue increase to ₹1,561.73 crore.
• Source: capitalmarket

D) Indian Agriculture:

1) OUAT Issues Cyclone Advisory for Odisha Farmers

• Odisha University of Agriculture and Technology (OUAT) advised farmers to minimize damage from Cyclone Dana by harvesting early paddy, draining excess water, and protecting crops with polythene.
• Farmers should take plant protection measures against pests in rice, pulses, and oil seeds, with a focus on draining water and harvesting mature crops to prevent damage.
• Vegetable farmers were advised to re-sow seedlings if damaged and halt rabi crop sowing until conditions improve.
• Source: New Indian Express

2) Rural Households Becoming More Agricultural

• The All India Rural Financial Inclusion Survey (2021-22) revealed that 57% of rural households are now "agricultural," up from 48% in 2016-17, indicating increased dependence on farming.
• Agricultural households have higher average monthly incomes (Rs 13,661) than non-agricultural ones, with more income coming from farming activities.
• The trend may be influenced by COVID-19 lockdowns, where the farm sector remained resilient, potentially boosting the share of agriculture in rural livelihoods.
• Source: Indian Express

E) Indian FMCG:

1) Urban Slowdown Hurting Consumer Goods Growth

• Rural demand for essentials is recovering, but urban areas are struggling due to rising food prices.
• Quick commerce platforms like Zepto and Blinkit are reshaping shopping habits, affecting traditional stores.
• Source: Economic Times

2) FMCG Distributors Raise Concerns Over Quick Commerce Practices

• FMCG distributors have reported unfair practices by quick commerce companies, including predatory pricing and monopolistic behavior, to the Competition Commission of India (CCI).
• The All India Consumer Products Distributors Federation (AICPDF) calls for dialogue among stakeholders and a comprehensive investigation into the operational models of these platforms, which they argue undermine traditional retail.
• Source: Business Standard

3) Blinkit to Launch Express Dark Stores for 30-Minute Deliveries of High-Value Items

• Zomato-owned Blinkit is setting up express dark stores aimed at delivering high-value items, such as instant water heaters and air purifiers, within 30 minutes, expanding from its current 10-minute grocery delivery model.
• The new dark stores will be larger, at around 7,000 to 8,000 square feet, to accommodate bigger products, and the launch is expected around mid-FY26 as Blinkit aims to increase its average order value and compete with major players like Flipkart and Amazon.
• Source: cnbctv

4) Zomato CEO Deepinder Goyal Launches Health and Wellness Venture 'Continue'

• Deepinder Goyal has launched 'Continue', a platform focused on health tracking and mental wellness, aiming to be "The Ultimate Health Tracker," reflecting his personal interest in longevity and wellness.
• The startup operates under Upslope Advisors Pvt Ltd, with Goyal as a director, while Zomato maintains that this is Goyal's personal venture, and the company will continue focusing on its existing businesses.
• Source: upstox

F) Indian Infrastructure:

1) Real Estate Most Preferred Investment in India

• A recent survey shows 59% of respondents prefer investing in real estate, mainly for personal use.
• The residential market is projected to grow to $1.04 trillion by 2029, with many buyers seeking homes priced between ₹45-90 lakh.
• Over half of investors plan to buy properties for rental income due to rising rental rates.
• Source: Business Standard 

2) Mumbai Metro Expansion Update

• The first phase of the metro line, covering 12.5 km between Aarey and BKC, significantly enhances the city's transport network.
• This new line will connect with Mumbai Metro Line 1 at Marol Naka, improving connectivity across key areas in Mumbai.
• Source: propnewstime

Indian Economy and Government Policies:

1) KTR Blames Congress for Telangana's Economic Decline

• BRS working president KT Rama Rao criticized the Congress government's 'Bulldozer Raj' policies for causing a sharp economic downturn in Telangana, citing a drop in GST collections to below 1% in September, a significant fall from the 15% year-on-year growth under the BRS regime.
• He emphasized that Telangana is now competing with Uttar Pradesh's economy and condemned Congress for placing the state last in GST collections, while noting that liquor sales are the only sector still showing growth.
• Source: Telangana Today

Stock Specific News:

• Ajmera Realty's stock has soared 50% in just two weeks, reaching a new high of Rs 908, and has more than doubled by 107% in 2024, significantly outperforming the BSE Sensex, which rose only 12% during the same period.
• Tejas Networks' stock price surged 17.11% to Rs. 1427.55 on October 21, 2024, benefiting from a positive trend in the IT hardware sector, and it has outperformed the sector by 7.53% today, making it a potential investment opportunity.

Bonus Briefs:

• The global currency market is being affected by several factors: the European Central Bank is being cautious, tensions in the Middle East are making people seek safe investments like gold, and uncertainty about the U.S. presidential election is causing market fluctuations..
• The U.S. dollar fell a bit as investors were encouraged by new stimulus measures from China, and stock markets reached new highs due to strong earnings from companies. 
• Gold prices rose over 1% to all-time highs because of the election uncertainties and Middle East issues. 
• Meanwhile, the euro gained slightly against the dollar but is still struggling as investors worry about Europe's economy and U.S. interest rates.