News Nook: Oct 23, 2024

Indian Sector Specific News:

A) Indian BFSI:

1) IDBI Bank Financial Bids Expected in Q4

• The financial bids for the strategic sale of IDBI Bank are likely to take place in the fourth quarter of this financial year.
• Prominent bidders include Kotak Mahindra Bank, Fairfax India Holdings, and Emirates NBD, competing for a 60.72% stake in the bank.
• The disinvestment process is advancing as bidders review bank data and finalize the Share Purchase Agreement (SPA).
• Source: Financial Express

2) Choice Finserv Expands Horizons with Strategic Acquisition

• Choice Finserv has acquired the retail lending business of Paisabuddy Finance and Sureworth Financial, increasing its assets under management to ₹801 crore. 
• This acquisition will double its workforce to 1,180 employees and expand its branch network to 168 locations across multiple states.
• Meanwhile, Moneycontrol Pro has surpassed 1 million paying subscribers, affirming its status as India’s largest media subscription product. 
• Source: Rediff Money

3) HDFC Bank to List HDB Financial Services in Largest NBFC IPO

• HDFC Bank is set to launch a Rs 12,500 crore IPO for its subsidiary HDB Financial Services (HDBFS), the largest in the NBFC space.
• Of the total, Rs 10,000 crore will be sold by HDFC Bank, with Rs 2,500 crore raised through a fresh issue.
• HDBFS, a non-deposit NBFC offering secured and unsecured loans, will remain a subsidiary of HDFC Bank post-IPO.
• Source: The Week

4) Finance Minister Approves 64 New CGM Posts in Public Sector Banks

• The Finance Minister approved increasing Chief General Manager (CGM) posts in nationalized banks from 80 to 144, along with increases in other senior management positions.
• This expansion aims to improve oversight in key areas like digitalization, cyber security, fintech, and credit risk.
• The move is expected to strengthen banks’ performance through more targeted strategies and enhanced risk management.
• Source: Financial Express

B) Indian IT:

1) IT Sector Recovery On Track: Samir Arora

• Samir Arora, founder of Helios Capital, has re-entered the IT sector, after exiting it in June 2022.
• He believes the worst is over for the sector and expects moderate growth of 12-15% in INR terms.
• While growth is not "great," the sector now presents a relatively safe investment with fewer negative surprises.
• Source: Business Today

C) Indian Automobile;

1) Hybrid Cars Overtake Petrol in EU Market

• In September, hybrid vehicles accounted for 32.8% of new car sales in the EU, surpassing petrol cars.
• Sales of fully electric and plug-in hybrid vehicles slowed down during the same period.
• Volkswagen's registrations increased by 0.3%, while Stellantis saw a sharp decline of 27.1%.
• Source: Economic Times

D) Indian Pharma:

1) Lupin Appoints Claus Jepsen as President, Global Specialty

• Claus Jepsen, with over 30 years of experience in pharma, has been named president of Lupin's global specialty division.
• He previously led Takeda Pharmaceuticals' global rare diseases strategy and held key roles at GlaxoSmithKline.
• Lupin’s CEO, Vinita Gupta, highlighted his expertise in specialty strategy and commercial planning as crucial for growing the brand.
• Source: Pharmabiz

E) Indian Telecommunication:

1) TRAI Releases Consultation Paper on Network Authorizations

• The Telecom Regulatory Authority of India (TRAI) has shared a consultation paper about the rules for telecom companies to get permission to operate networks under the new Telecommunications Act, 2023.
• This came after the Department of Telecommunications (DoT) asked for advice on things like fees, charges, and the steps companies need to follow to start or expand telecom or satellite networks. 
• The goal is to set clear guidelines for how these networks should be managed based on the new law.
• Source: PIB Delhi

F) Indian Agriculture:

1) 2nd Brand R.Comm Agriculture Summit Scheduled for December

• The 2nd Brand R.Comm - Agriculture & Rural Communication Summit 2024 will be held on December 6, 2024, in New Delhi, organized by Snail Integral Pvt. Ltd.
• The summit, featuring Agriculture Minister Shivraj Singh Chouhan, will discuss communication's role in agriculture, sustainability, and rural empowerment.
• It includes panels on sustainable practices, community empowerment, policy advocacy, and a CEO panel focusing on future innovations in agriculture.
• Source: Economic Times

2) Skill Development Training for Tribal Fish Farmers in Jharkhand

• ICAR-Central Institute of Fisheries Education conducted a 3-day training on "Modern Methods of Freshwater Aquaculture" for 20 tribal fish farmers in East Singhbhum, Jharkhand.
• The program included sessions on fish culture, feed management, pond upkeep, and water quality, alongside practical demonstrations.
• Farmers expressed satisfaction with the training and showed eagerness to implement scientific practices to enhance their livelihoods.
• Source: ICAR-Central Institute of Fisheries Education

G) Indian Energy:

1) Vedanta's ₹1 Lakh Crore Investment in Rajasthan

• Vedanta plans to invest ₹1 lakh crore in Rajasthan, focusing on zinc, oil, gas, and renewable energy.
• ₹30,000 crore is allocated for Hindustan Zinc to boost zinc production to 2 million tonnes and silver to 2,000 tonnes.
• Cairn Oil & Gas will invest ₹35,000 crore, while Serentica Renewables is set to invest ₹50,000 crore for 10,000 MW renewable energy capacity.
• The investment is expected to create over 200,000 jobs in the region.
• Source: Manufacturing Today India

2) Oil and Gas Stocks Slide

• The BSE Oil & Gas index fell by 1.62%, down 480.8 points to 29,206.05.
• Major losers included Bharat Petroleum (down 3.33%), ONGC (down 2.98%), and Indian Oil (down 2.78%).
• Reliance Industries was an exception, gaining 0.57%.
• Overall, the BSE SmallCap and MidCap indices also declined, with the Nifty 50 down by 0.3%.
• Source: Business Standard

3) Oil prices decline to 7% over the past week

• Oil prices have dropped by 7% over the past week, primarily due to concerns over weakening demand from China and ongoing uncertainties in the Middle East.
• As the world's second-largest economy, China's economic health significantly impacts global oil demand, making these concerns particularly relevant.
• Source: Construction World

H) Indian Infrastructure:

1) Prayagraj Experiences Real Estate and Hospitality Boom Ahead of Maha Kumbh 2025

• Infrastructure development in Prayagraj, including roads and hotels, is driving demand for rental properties and homestays as many construction companies prepare for Maha Kumbh 2025.
• Local property dealers report a surge in inquiries for furnished rentals, while homeowners convert spaces into homestays to accommodate construction professionals and tourists.
• Hotel and restaurant operators are upgrading facilities, with many bookings already secured for the upcoming religious gathering.
• Source: Times of India

2) HUDCO to lend money in Amaravati for infrastructure development

• HUDCO will lend ₹11,000 crore for the construction of Amaravati, as part of its commitment to support infrastructure development. 
• This financing aims to enhance the region's growth and improve living standards. 
• The funds will significantly contribute to various development projects in the capital city of Andhra Pradesh.
• Source: Economic Times

Indian Economy and Government Initiatives:

1) Economy News Highlights 

• The IMF maintains India's FY25 GDP growth forecast at 7%, down from 8.2% in FY24 due to exhausted pandemic demand.
• The U.S. economy outpaces other advanced economies, benefiting from increased investments.
• India is committed to fiscal discipline, according to Finance Minister Nirmala Sitharaman at Columbia University.
• The Centre will resume subsidized sales of chana dal at ₹70/kg to combat retail inflation.
• Source: LiveMint

Stock Specific News:

• Alembic Pharmaceuticals Ltd. saw its stock fall by 3.38% on October 22, 2024, marking the fourth consecutive day of decline, while still trading above its 100-day and 200-day moving averages; analysts currently recommend holding the stock.
• Yes Bank's stock declined by 3.19% on October 22, 2024, marking its second consecutive day of losses, underperforming the sector and earning a 'Sell' rating from MarketsMojo, as it trades below all moving averages and has fallen 11.60% in the past month compared to a 4.41% drop in the Sensex.
• Welspun Specialty Solutions' stock dropped by 7.01% on October 22, 2024, marking its sixth straight day of losses and a total decline of 15.89%, as it underperformed the sector and the overall market, trading below several moving averages while remaining above its 200-day moving average.
• On October 21, 2024, Bank of Maharashtra's stock declined by 3.67%, underperforming its sector by 2.1%, with a 'Hold' rating from MarketsMojo, while trading below all its moving averages and showing a 1-day drop of 4.01% and a 1-month drop of 10.97%.