News Nook: Oct 28, 2024

Indian Sector Specific News:

A) Indian BFSI:

1) Mega-Merger in India’s Insurance Market

• Insurance aggregators InsuranceDekho and RenewBuy are in talks to merge, which would make them the second-largest insurance marketplace in India.
• The merger would value InsuranceDekho at over ₹5,000 crore ($670 million) and RenewBuy at about ₹3,000 crore, with plans to raise additional funds before a potential public listing.
• This merger aims to challenge PolicyBazaar in India’s insurance market, the fifth-largest in the world for life insurance.
• Source: Livemint

2) PhonePe’s Strategic Success Amid Fintech Challenges

• PhonePe has achieved over ₹5,000 crore in revenue, mostly from payment transactions, while cutting initial cashbacks to ₹15 crore from ₹950 crore in FY19 and posting profits of ₹197 crore in FY24.
• Expanding into new revenue streams like loans, insurance, and wealth products, PhonePe sees these financial services boosting revenue, despite payments remaining its core business.
• Staying asset-light, PhonePe refrains from building a loan book, focusing instead on financial services distribution and leveraging its 550 million user base for cross-selling.
• With strong corporate governance and compliance, PhonePe maintains a leading 50% share in UPI transactions, backed by NPCI’s allowance, distinguishing itself in a stringent regulatory landscape.
• Source: Financial Express

B) Indian Automobile

1) Upcoming Car Updates in India

• Hyundai Venue, Maruti Suzuki Dzire, and Honda Amaze are set for major updates, with launches expected this year and in 2025.
• Hyundai Venue's new model will sport a boxy design with a taller bumper and wider grille, while Dzire will get a more premium look with a sleek front.
• Honda Amaze’s new generation will have design upgrades and retain its current 1.2L engine.
• Source: KalingaTv

2) Mahindra XUV 3XO EV Set to Rival Nexon EV

• Spy shots reveal the Mahindra XUV 3XO EV, with copper accents and a charging port on the front fender, indicating its electric model identity.
• The EV closely resembles the XUV 3XO's ICE version but features unique elements like a blanked-off grille and copper-colored roof.
• A connected LED light setup and similar alloy wheel design to the ICE version were also spotted.
• Source: trak

C) Indian Pharma:

1) Abhay HealthTech Acquires MNP Healthcare to Boost OTC Presence

• Abhay HealthTech announced its acquisition of MNP Healthcare to expand its reach in the over-the-counter (OTC) healthcare segment.
• This acquisition is expected to strengthen Abhay HealthTech's consumer healthcare portfolio significantly.
• The company aims to leverage MNP's distribution network to enhance its product accessibility and market share.
• Source: Economic Times

2) Piramal Pharma Plans $85 Million Capex for FY24 Growth

• Piramal Pharma will invest $85 million this fiscal year in capacity expansion, maintenance, and de-bottlenecking across CDMO sites, with around $30 million allocated for maintenance.
• The company aims for $2 billion in revenue by FY30, with major expansions in India and a $80 million investment in its U.S. Lexington facility to complete by FY27.
• Piramal is also focused on growing its CDMO, critical care, and consumer healthcare divisions, targeting $1.2 billion, $600 million, and $200 million, respectively, by FY30.
• Source: Rediff Money

D) Indian Telecommunicaton:

1) BSNL Gains Profitability and 60 Lakh New Users Amid 4G and 5G Expansion

• BSNL has achieved operating profit after gaining 60 lakh new users, driven by tariff hikes from private competitors.
• The state-owned telecom completed successful trials of indigenous 5G tech in the 3.6 GHz and 700 MHz bands and plans to deploy 100,000 4G sites, upgradeable to 5G by 2025.
• With access to the premium 700 MHz band, BSNL aims to enhance coverage, becoming the first to deploy homegrown 4G and 5G.
• Source: trak

2) Salt Typhoon Breach: Chinese Hackers Infiltrate US Telecoms and Presidential Campaigns

• "Salt Typhoon," a sophisticated Chinese hacking group, breached US telecom networks, including Verizon, impacting presidential campaigns and political intelligence.
• This cyberattack focuses on counterintelligence data over financial gain, sparking national security concerns about exposure of sensitive communications and decision-making networks.
• Experts are assessing the breach’s scope, with fears that China could now access intelligence on high-ranking US officials and surveillance operations.
• Source: Moneycontrol

E) Indian Agriculture:

1) Construction and Agriculture Slow India Inc's Q2 Revenue Growth to 5-7%: Crisil Report

• India's Q2 FY25 revenue growth dipped to 5-7%, the slowest in 16 quarters, mainly due to weak performance in construction, industrial commodities, and agriculture sectors.
• Agriculture sector revenue dropped by 20-22%, while export growth slowed to 5%; IT, pharmaceuticals, and consumer sectors saw strong growth, expanding EBITDA margins to 21-21.5%.
• Among top sectors, 8 out of 10 reported EBITDA margin improvements, despite slower overall revenue growth.
• Source: Economic Times

2) MoCCAE Focuses on Supporting Farmers and Boosting Agricultural Productivity in Eastern UAE

• The Ministry of Climate Change and Environment (MoCCAE) held a meeting with Eastern Region farmers to enhance crop productivity and address their needs, introducing initiatives like the 'Plant the Emirates' National Programme.
• The meeting aimed to promote sustainable agricultural practices, engage with farmers for input, and emphasize the role of modern climate-smart agriculture solutions in boosting productivity.
• Key objectives include increasing the number of productive farms, providing training and financial support, and enhancing collaboration between federal and local authorities and the private sector.
• Source: ANI

F) Indian FMCG:

1) FMCG Volume Growth Declines Due to Inflation and Weather Conditions

• The volume growth for fast-moving consumer goods (FMCG) has slowed to 4.1% in the September quarter, down from 7.2% a year ago, as consumers cut back on packaged food and beverages due to inflation and heavy rains.
• Urban areas saw a growth of 4.3%, while rural regions recorded 3.9%, significantly lower than last year's growth rates of 8.1% in cities and 6.3% in villages.
• Personal and home care products are expanding faster than food and beverages, indicating a shift in consumer spending habits amidst economic pressures.
• Source: Economic Times

G) Indian Infrastructure:

1) India Embraces Technology for Land and Property Management

• India is leveraging innovative technologies to enhance land management and streamline property transactions, addressing long-standing disputes that often hinder business and infrastructure projects.
• The government is advancing the digitisation of land records, while the prop-tech market is projected to grow significantly, from $38 billion in 2024 to $170 billion by 2034, driven by advancements in AI, IoT, big data, and blockchain.
• This technological shift is expected to accelerate economic activity and improve the efficiency of the property market in India.
• Source: Business Standard

2) Ulwe Becomes a Hotspot for Real Estate Investment in Mumbai

• The opening of the Atal Setu has drastically reduced travel time between Ulwe and south Mumbai from two hours to just 30 minutes, transforming the area into a desirable location for homebuyers and real estate investors.
• Property prices in Ulwe and surrounding regions like Uran, Palaspe, Dronagiri, and Pushpak Nagar have surged by 8-10%, now exceeding ₹1 crore for some apartments, fueled by increased accessibility and development plans, including the proposed ‘Third Mumbai’ project.
• Potential buyers, like Panvel resident Renuka C, are facing challenges as prices for modest homes, such as a 1BHK apartment, have reached around ₹60 lakh, creating urgency in the market due to the rapid escalation in property values.
• Source: Hindustan Times

3) Industrial and Logistics Real Estate Demand Surges in Q3 2024

• Demand in India's industrial and logistics sector grew by 53.5% in Q3 2024, with 17.5 million square feet absorbed, up from 11.4 million square feet last year.
• Tier 1 cities accounted for 80% of this demand, mainly driven by the third-party logistics sector (38%) and manufacturing (16%).
• The sector also saw a fresh supply of 19.3 million square feet, indicating ongoing growth supported by government initiatives and rising demand from various industries.
• Source: BW Online Bureau

 Indian Economy and Government Initiaves:

1) EAM Jaishankar highlights link between Central and State Government Policies

• External Affairs Minister S. Jaishankar emphasized that the effectiveness of Central government policies relies on the intentions of state governments implementing them.
• He called for a "double-engine government" to enhance the execution of development policies and urged voters to support the NDA-backed Mahayuti coalition in the upcoming Maharashtra Assembly elections.
• Jaishankar reassured that investor decisions depend on state merits, not just on comparisons with Gujarat, and noted the significance of the India-Middle East-Europe Economic Corridor for Maharashtra's development.
• Source: OMMCOM NEWS

2) India’s space economy will play a critical role in the country’s growth: Science & Technology Minister Dr. Jitendra Singh

• Dr. Jitendra Singh stated that India's space economy is set to significantly contribute to the nation's overall development and economic progress.
• He highlighted ongoing efforts to enhance the capabilities of the Indian Space Research Organisation (ISRO) and foster private sector involvement in the space industry.
• The minister emphasized that advancements in space technology will benefit various sectors, including telecommunications, agriculture, and disaster management.
• Source: News on air

 Bonus Briefs:

• Safe-Haven Demand Up: Ongoing geopolitical tensions, especially in the Middle East, have increased investor interest in safe assets like gold and silver. Additionally, the upcoming US election adds uncertainty to the market.
• Central Bank Policy Divergence: While the European Central Bank (ECB) may cut rates to support the Eurozone economy, the Bank of England (BoE) might keep a cautious eye on inflation, which could strengthen the Pound. Meanwhile, the US Federal Reserve (Fed) is balancing economic growth and inflation, keeping the Dollar steady.
• Commodity Market Impact: Slow economic growth, particularly in China, has reduced demand for oil and other commodities, affecting their prices. Electric vehicle growth in China and the US is also contributing to lower oil demand.

• Upcoming Economic Events:

1. October 30: US and Eurozone GDP data could influence the Dollar and Euro.
2. October 31: Bank of Japan’s policy decision will impact the Yen.
3. November 1: US Non-Farm Payrolls Report, the top indicator of the US job market, could have a big effect on the Dollar.

• Medium Impact Events: BoC Governor's speech, US Consumer Confidence, and Eurozone inflation data are some of the events that could slightly influence currencies in the coming days.