News Nook: Oct 26, 2024

 Indian Sector Specific News:

A) Indian BFSI:

1) BT Best Banks Awards 2023-24 Jury Announced

• Business Today has assembled an experienced jury to evaluate banks, large NBFCs, and fintech firms in India, meeting on November 11 to assess growth, size, and strength.
• The jury includes prominent figures like Jayant Sinha, with women leaders Kalpana Morparia and Alice Vaidyan, showcasing growing female representation in finance.
• The evaluation, supported by insights from KPMG, involves analyzing over 35 financial ratios to award the best performers in the sector.
• Source: Business Today

2) PB Fintech’s New Initiatives Fueling Growth

• PB Fintech’s “New Initiatives” segment, which includes PB for Business, PB Partners, and Policybazaar.ae, now makes up one-third of the company's revenue.
• PB Partners allows small insurance agents (PoSPs) access to products from 25-26 insurers, enhancing their reach.
• PB Fintech has expanded into corporate and retail insurance, leveraging a broker license obtained in 2021 to diversify its offerings.
• Source: Financial Express

B) Indian Automobile:

1) Mercedes-Benz Earnings Drop Amid China Slowdown

• Mercedes-Benz reported a 64% decline in profit from its car division and a 54% drop in quarterly net profit, largely due to China’s slowing luxury spending and high model revamp costs.
• European carmakers, including BMW, are also feeling the strain, as weak demand in China and potential EU tariffs on China-made EVs threaten further losses.
• India’s auto sector remains strong with resilient demand for local brands, though two-wheeler sales have dipped during the festive season, affecting companies like Bajaj Auto and Hero MotoCorp.
• Source: The Week

C) Indian Telecommunication:

1) ITBP Telecommunication Recruitment 2024: Apply for 526 Posts

• The Indo-Tibetan Border Police (ITBP) has announced 526 vacancies for Constable, Head Constable, and Sub Inspector positions in telecommunications.
• Applications open online from November 15 to December 14, 2024, with 447 positions for men and 79 for women.
• Candidates can check eligibility, selection process, and salary details on the official ITBP website.
• Source: jagranjosh

2) India and JICA Discuss Enhanced Collaboration in Agriculture

• Agriculture Secretary Devesh Chaturvedi and JICA Chief Takuro Takeuchi discussed expanding partnerships in agriculture, with JICA showing interest in integrating technologies like AI and drones in the sector.
• Chaturvedi highlighted goals for modernizing Indian agriculture, focusing on export-driven horticulture, precision farming, and digital infrastructure.
• They also explored research and student exchange programs to bolster skills in agriculture and climate resilience.
• Source: Business Standard

3) Telangana and Malaysia Discuss Agri Processing Collaboration

• Telangana’s Agriculture Minister Tummala Nageswara Rao met Malaysia’s Agriculture Minister to discuss establishing agri-processing units in Telangana, emphasizing investment-friendly conditions.
• Talks included sharing best practices for oil palm farming with Malaysia’s Federal Land Development Authority and exploring agricultural technology at Tenasha Private Ltd.
• Malaysia showed positive interest in supporting Telangana’s agricultural goals.
• Source: Times of India

D) Indian Energy:

1) B.Grimm Power Seeks LNG Supplies for Energy Transition

• Thailand's B.Grimm Power is pursuing both short-term and long-term LNG supply deals to meet rising energy demands as the country advances in its energy transition.
• The company aims to secure stable LNG sources to support Thailand's renewable energy goals and future energy security.
• Source: Construction World

2) ADB Approves $434.25 Million Loan for Energy Security in India

• The Asian Development Bank (ADB) has approved a $434.25 million loan to an Indian state, aimed at bolstering energy security and supporting renewable energy initiatives.
• The funds will assist in infrastructure development to enhance power supply and resilience in the energy sector.
• Source: Economic Times.

E) Indian FMCG:

1) Kirana Stores Face 30% Sales Decline During Diwali

• Urban kirana stores in India are experiencing a 25-30% month-on-month sales drop as they approach the Diwali season, despite the overall FMCG market benefiting from quick commerce growth.
• Quick commerce platforms are gaining popularity, with major FMCG companies like Nestle reporting record online sales.
• Kirana stores, vital for FMCG distribution, are seeing their dominance challenged in urban areas as consumer behavior shifts.
• Source: Business Standard

F) Indian IT:

1) Trump Victory Could Impact India's IT and Auto Sectors

• A potential Trump win in the U.S. elections may pose challenges for India's IT sector due to stricter work visa policies, complicating operations for firms reliant on expatriate talent.
•  However, Indian IT companies are adapting by hiring locally and establishing near-shore delivery centers. 
• Meanwhile, the automobile sector might see decreased demand for EV components but could stabilize with a shift to hybrid vehicles. 
• Trump's infrastructure plans could also benefit Indian auto component manufacturers.
• Source: Economic Times

G) Indian Pharma:

1) Serum Institute in Talks to Sell Stake in SCHOTT Poonawalla

• Serum Institute of India is negotiating to sell a 40% stake in its joint venture, SCHOTT Poonawalla, to private equity firm TPG, valuing the venture at over $600 million.
• SCHOTT Poonawalla specializes in primary glass packaging for the pharmaceutical sector and is a 50:50 partnership with SCHOTT Pharma AG.
• Serum plans to retain a 10% stake in the joint venture, which has four manufacturing sites in India.
• Source: cnbctv18

 Indian Economy and Government Initiaves:

1) PM Modi’s Policies Boost Rural Demand

• PM Modi's initiatives, like direct cash support for farmers and financial inclusion efforts, have significantly increased rural consumption in India. 
• Reports suggest a GDP growth projection of 7-7.2% for FY 2024-25, fueled by robust domestic activity. 
• Key factors driving this growth include increased credit to agriculture and rising incomes in rural areas, leading to a surge in demand for various sectors, including food and automobiles.
•  Initiatives like PM-Kisan and Jan Dhan Yojana have further enhanced disposable income, supporting retail growth.
• Source: news18

 Bonus Briefs:

• The final quarter of 2024 is expected to be marked by geopolitical tensions and volatility, notably due to the worsening Middle East conflict.
• Asset managers highlight geopolitics as a primary challenge to macroeconomic stability, particularly with the unresolved conflicts in the Middle East and Ukraine.
• Predictability from central banks, especially the Fed and ECB, is seen as a stabilizing factor, despite ongoing discussions about rate cuts.
• Analysts suggest focusing on specific sectors and geographies, with interest in real estate, healthcare, and telecommunications as favorable investment areas.