News Nook: Oct 25, 2024

 Indian Sector Specific News:

A) Indian BFSI:

1) Increase in Background Check Issues in BFSI Sector

• Background check discrepancies in the Banking, Financial Services, and Insurance (BFSI) sector are on the rise as digital growth accelerates.
• Digital hiring trends have made it easier to find talent, but they have also led to a higher number of inaccuracies in candidates’ backgrounds.
• These discrepancies range from incorrect qualifications to false work history details, highlighting the need for stricter verification processes in the sector.
• Source: ANI News

2) Cyber Threats Surge in India, Cyber Insurance Becomes Crucial

• India ranks third worldwide for phishing attacks, with major data breaches affecting millions in 2023, like ICMR and BSNL.
• Companies saw nearly 2,800 cyberattacks weekly in early 2024, marking a 33% increase from last year.
• With internet users expected to reach 900 million by 2025, more companies are adopting cyber insurance to help cover financial losses from cyberattacks.
• Source: Business Standard

B) Indian Automobile:

1) Renault’s Quarterly Revenues Increase Despite Market Challenges

• Renault reported a 1.8% revenue rise to €10.7 billion, driven by strong demand for its newer, higher-priced models.
• Global sales volumes fell by 5.6%, but revenue exceeded analysts' forecast of €10.35 billion, aided by a 5% revenue boost at constant exchange rates.
• The company remains on track to achieve its 2024 margin target.
• Source: cnbctv18

2) High Demand for Hybrid Vehicles and SUVs on Dhanteras in Lucknow

• Demand in Lucknow’s automobile market surged with expected deliveries of 4,000 two-wheelers (up from 2,900) and 2,500 four-wheelers (up from 1,900) on Dhanteras.
• Mid-range SUVs and two-wheelers priced between ₹7-15 lakh and ₹80,000-1 lakh are popular among buyers, with hybrid vehicles in high demand for their fuel efficiency.
• Sales are expected to rise by 15% in two-wheelers, 11% in four-wheelers, and a 30% increase in CNG vehicles compared to last year.
• Source: Hindustan Times

C) Indian Pharma:

1) Mutual Funds Boost Investment in Key Pharma Stocks

• Mutual funds increased stakes in top pharma companies like Ami Organics, Eris Lifesciences, and Gland Pharma, reflecting strong interest in the growing sector.
• Revenue for these companies rose in Q2, though some experienced slight profit drops; for instance, Eris Lifesciences saw a 55% revenue jump, while Gland Pharma's revenue grew by 16%.
• The Indian pharma industry is expanding rapidly, expected to reach $65 billion by 2024, making it a focal point for investment.
• Source: Trade Brains

2) FIHAV 2024: Key Platform for Indian Pharma Expansion in the Caribbean

• The upcoming 40th Havana International Trade Fair (FIHAV) offers Indian pharmaceutical and biotech companies a chance to expand into Cuba and the Caribbean.
• FIHAV draws about 5,500 exhibitors and 250,000 visitors annually, providing Indian companies a valuable platform to showcase their products and form business partnerships.
• Pharmexcil encourages Indian companies to use this event to tap into new markets and strengthen ties with the region.
• Source: Pharmabiz

D) Indian Telecommunication:

1) ITU Kaleidoscope 2024 Wraps Up, Emphasizes Connectivity and Inclusivity

• ITU Kaleidoscope 2024 focused on bridging the digital divide and explored youth involvement in telecommunications standards, particularly for technologies like 5G, AI, and quantum computing.
• Key discussions included standardization for quantum-safe encryption and expanding access to affordable internet, with India's PM-WANI model highlighted as a successful example for rural inclusion.
• Awards were given for innovative tech projects, including an AI-driven device for stroke survivors and a wellness companion app for elderly health monitoring.
• Source: PIB Delhi

2) WTSA 2024 Prioritizes Global Standards for Digital Infrastructure and AI

• The World Telecommunication Standardisation Assembly (WTSA 2024) in Delhi has adopted two significant resolutions pushed by India, focusing on Digital Public Infrastructure (DPI) and artificial intelligence (AI).
• India emphasized the importance of DPI technologies like Aadhaar and UPI, aiming to enhance interoperability and accessibility for public services, which garnered interest from developing economies, particularly in Africa.
• The resolutions will guide the ITU’s standardization efforts over the next four years, aligning with India's vision for inclusive digital growth.
• Source: Business Standard

3) Innovation Xchange Highlights Emerging Technologies at ITU-WTSA 2024

• The Innovation Xchange event at ITU-WTSA 2024 brought together global leaders, startups, and researchers to discuss key themes in emerging technologies like 5G/6G, AI, and quantum communications.
• India's Minister of State for Communications, Dr. Pemmasani Chandra Sekhar, emphasized the country’s growth in the startup ecosystem and encouraged young innovators to focus on solving real problems and building purpose-driven businesses.
• The event successfully connected research and practical applications, fostering collaboration between startups and industry leaders to drive technological advancements and address real-world challenges.
• Source: PIB Delhi

E) Indian Agriculture:

1) World Bank to Double Agriculture Funding to $9 Billion

• The World Bank plans to double its agricultural funding to $9 billion annually by 2030, as announced by President Ajay Banga, in response to climate risks and job gaps in developing countries.
• The new strategy aims to enhance agricultural productivity and create a robust agribusiness ecosystem centered around smallholder farmers, anticipating a more than 50% rise in food demand in the coming decades.
• Banga emphasized that transforming agribusiness is crucial for job creation, with 1.2 billion young people entering the workforce in developing nations over the next decade, against only 420 million expected jobs.
• Source: Economic Times

F) Indian Energy:

1) HPCL Seeks Bids for Long-Term Green Hydrogen Supply to Visakh Refinery

• Hindustan Petroleum Corporation (HPCL) has invited bids for supplying 5,000 tons of green hydrogen annually to its Visakh Refinery for 25 years. 
• Bidders must submit proposals by January 21, 2025, along with an earnest money deposit of ₹10 million. 
• They need to establish a Green Hydrogen Generation Unit and ensure compliance with local laws. 
• The evaluation will focus on the lowest quoted rate for green hydrogen supply, considering technical requirements as well.
• For more details, you can read the full article here.

2) Wind Power Crisis: A Major Barrier to Global Green Energy Goals

• The world is facing a wind power crisis that threatens to hinder the achievement of global green energy targets. 
• Challenges such as supply chain issues, regulatory hurdles, and insufficient investment are impacting the deployment of wind energy projects. 
• As countries prepare for the COP28 climate talks, the urgency to address these challenges is increasing, emphasizing the need for cohesive policies and support to enhance wind energy's role in the renewable energy transition.
• Source: Economic Times

G) Indian IT:

1) NVIDIA CEO Calls for India to Drive AI Innovation

• Jensen Huang, CEO of NVIDIA, believes India has the potential to become a global leader in artificial intelligence (AI) instead of merely exporting software.
• He emphasizes the importance of India not repeating past mistakes by being just a support center for AI technology.
• Source: Business Times

H) Indian Infrastructure:

1) UP Government Approves New Noida Development Project

• The Uttar Pradesh government has greenlit the ‘New Noida’ project to enhance real estate and infrastructure in the National Capital Region (NCR) over the next 15 years, including industrial, residential, and commercial zones.
• The Noida International Airport in Jewar is expected to further boost land values and economic growth in the area, with property prices already rising 20-25%.
• Source: indiatvnews

 Indian Economy and Goverment Initiatives:

1) Cabinet Approves ₹1,000 Crore Fund for Space Startups

• The Union Cabinet has approved a ₹1,000 crore venture capital fund to support startups focused on the space sector in India, as part of the IN-SPACe program.
• Union Minister Ashwini Vaishnaw announced this initiative aimed at boosting innovation and development in the country's growing space industry.
• Source: Economic Times

2) Government Lifts Restrictions on Rice Exports

• The Indian government has removed the minimum export price for non-basmati rice and exempted parboiled and husked rice from export duty, effective October 22.
• This decision follows a previous lifting of the blanket export ban on non-basmati white rice, aiming to enhance rice exports while maintaining stable domestic prices.
• Source: Economic Times

Stock Specific News:

• The outcome of the 2024 US elections may not trigger an immediate reaction in the Indian stock market, but it could significantly influence Indian investors through trade policies, foreign direct investment (FDI), rupee strength, global market sentiment, and interest rates, impacting overall economic growth.
• Hyundai Motor's Q3 operating profit dropped 7% to 3.6 trillion won ($2.6 billion), missing analyst forecasts due to warranty costs and a global car demand slowdown, with retail sales declining by 5%. The company expects continued market uncertainty affecting growth.
• Pharmaids Pharmaceuticals' stock has hit a 52-week low of Rs. 32.68 as of October 24, 2024, following a 12.11% decline over three days. MarketsMojo has issued a 'Strong Sell' rating, noting the stock's consistent downward trend and poor performance compared to the Sensex.
• Colgate-Palmolive India reported a 16.17% increase in net profit for Q2 2024, reaching Rs 395.05 crore, driven by portfolio gains and higher advertising spend. Sales also rose by 10.04% to Rs 1,609.21 crore.

Bonus Briefs:

• At the New York Fed Central Banking Seminar, RBI Deputy Governor Michael Debabrata Patra emphasized India's transition from economic divergence to convergence, focusing on the need for financial stability and flexible monetary policy in response to global challenges.
• The US Federal Reserve's recent policy shift aims to cushion the economy and foster favorable conditions for bond markets, but risks such as rising oil prices and trade tensions may disrupt this outlook.