News Nook: Nov 15, 2024

Indian Sector Specific News:

A) Indian BFSI:

1) RBI’s VRRR Auctions See Low Participation Amid High Liquidity

• Banks showed minimal interest in the RBI’s variable rate reverse repo (VRRR) auction, parking only ₹8,405 crore out of the ₹1.75 lakh crore offered, preferring shorter tenures to manage liquidity amid strong credit demand and upcoming GST outflows.
• The banking system's liquidity surplus exceeded ₹2.05 lakh crore, leading the RBI to conduct multiple VRRR auctions in November, but most have seen lukewarm responses.
• Source: Financial Express

2) Jabil to Invest ₹1,000 Crore in Gujarat’s Dholera Region

• Jabil signed an MoU with Gujarat's Science and Technology Department to invest ₹1,000 crore in a new electronics manufacturing unit at Dholera Special Investment Region, expected to create 5,000 jobs by 2027.
• The unit will focus on sectors like networking, automotive, and capital goods, strengthening Gujarat’s electronics manufacturing ecosystem.
• Source: Business Standard

3) Kotak Mahindra Bank Seeks Digital Creative Agency for Engagement

• Kotak Mahindra Bank has issued an RFP to onboard a digital creative agency to redefine BFSI communication with innovative, trend-driven approaches, targeting India's digitally-savvy consumers.
• With 60% of its ₹100-150 crore marketing budget allocated to digital, Kotak aims to enhance its digital-first strategy to engage its growing customer base of 5.1 crore effectively.
• Source: Campaign India

4) SEBI Study Reveals High Royalty Payments to Related Parties

• SEBI's study found that Indian listed companies paid royalties exceeding 20% of net profits to related parties in 25% of instances, with half of these cases paying more royalties than dividends to non-related shareholders.
• From FY 2014-23, 233 companies made 1,538 royalty payments (5% or less of turnover), including ₹1,355 crore by 63 loss-making firms, highlighting governance concerns.
• Source: Economic Times

B) Indian Automobile:

1) Vehicle Retail Sales Rise 12% During Festive Period: FADA

• Vehicle retail sales surged 12% to 43 lakh units during the 42-day festive period, led by 13.79% growth in two-wheelers due to strong rural demand, while passenger vehicles grew by 7.1% amid discounts and pent-up demand.
• Heavy rains and Cyclone Dana in South India impacted sales, preventing FADA from reaching its 45 lakh-unit target.
• Source: Moneycontrol

2) Maruti Suzuki, Hyundai Market Share Hits 12-Year Low in 1HFY25

• The combined market share of Maruti Suzuki and Hyundai dropped to a 12-year low in the first half of FY25 as Mahindra & Mahindra (12.5%) and Toyota gained ground with SUVs, while Tata Motors slightly fell to 13.3%.
• Despite overall PV industry challenges, October PV sales hit a record 3.93 lakh units (+0.9% YoY), though passenger car sales declined by 17%.
• Source: KalingaTV Bureau

C) Indian Pharma:

1) Cadila Pharmaceuticals Launches Iron Supplement 'Militol'

• Cadila introduced Militol, containing ferric maltol, folic acid, and vitamins B12, C, and D to improve iron absorption and address iron deficiency with fewer gastrointestinal side effects.
• Targeting India’s high anaemia prevalence (57% women, 25% men), Militol offers holistic support for fatigue, reduced immunity, and cognitive decline caused by low iron levels.
• Source: Express Pharma

D) Indian Telecommunication:

1) TRAI Hosts 25th Meeting of South Asian Telecommunication Regulators’ Council

• TRAI organized SATRC-25 in New Delhi (Nov 11-13, 2024), with 120+ delegates from 10+ countries, discussing ICT development and regulatory collaboration for digital inclusivity.
• Anil Kumar Lahoti, TRAI Chairman, was elected Chair of SATRC, emphasizing regional cooperation to address emerging tech challenges and bridge digital divides.
• Source: Indian PSU

2) 8 Arrested for Illegal Activation of SIM Cards Used in Fraud

• Mumbai crime branch arrested 8 individuals, including telecom employees and mobile shop owners, for activating 150-200 SIM cards used in scams defrauding victims of crores.
• Investigation linked the accused to a fraud case where a victim lost ₹51 lakh after being duped through an investment scheme via WhatsApp.
• Source: Indian Express 

E) Indian Agriculture:

1) Netherlands Vice-Minister of Agriculture Visits India to Strengthen Bilateral Ties in Agriculture

• Mr. Jan-Kees Goet, Vice-Minister of Agriculture of the Netherlands, met with Dr. Devesh Chaturvedi, Secretary of India's Department of Agriculture & Farmers’ Welfare, to enhance cooperation in agriculture.
• Key discussions included expanding Centers of Excellence (CoEs), improving seed access for small farmers, and exploring new collaboration areas such as clean plant programs, agricultural mechanization, and supporting agri-startups.
• Source: PIB Delhi

2) Karnataka Agriculture Minister Highlights Key Initiatives at Krishi Mela 2024

• Agriculture Minister N Chaluvarayaswamy inaugurated the four-day Krishi Mela 2024, emphasizing integrated farming with modern technology for sustainable agriculture.
• The government has distributed Rs. 2,100 crore in crop insurance to farmers, promoted self-employment for agriculture graduates, and showcased advanced farming equipment at the fair.
• Source: News Indian Express

F) Indian Energy:

1) Equinix Signs First India PPA with CleanMax for 33 MW Captive Power Plant

• Equinix has signed a Power Purchase Agreement (PPA) with CleanMax to build a 33 MW captive solar power plant in India. This will serve Equinix's data centers and contribute to its sustainability goals.
• This agreement reflects Equinix’s commitment to renewable energy and carbon reduction, helping meet its global sustainability targets.
• Source: Economic Times

G) Indian FMCG:

1) Consumption-Related Stocks Fall Amid Inflation and Reduced Spending

• Higher inflation and lower consumer spending have led to a decline in consumption-related stocks, including HUL and Asian Paints.
• The recent weak festival season and overall market correction have further impacted demand and investor confidence.
• Source: Business Standard

H) Indian IT:

Indian IT Flexi Staffing Market to Grow at 7% CAGR from FY24 to FY26

• The Indian IT flexi staffing market, valued at USD 4.9 billion in FY24, is expected to grow at a 7% annual rate through FY26, driven by sectors like IT, BFSI, and Fintech.
• Emerging cities and growing demand for flexible staffing in sectors like BFSI and Fintech are contributing to the market's expansion, with Delhi NCR leading in gender diversity.
• Source: Economic Times

Indian Economy and Government Initiatives:

1) Shaktikanta Das's Future at RBI and Its Impact on Interest Rates

• RBI Governor Shaktikanta Das’s contract ends on December 10, and economists are uncertain about whether he will receive an extension, with his future potentially influencing interest rate decisions.
• While some analysts predict no rate cut in December, they expect a possible reduction in April next year, with uncertainty around a new RBI governor's stance on monetary policy.
• Source: Economic Times

2) India's October Trade Deficit Widens to $27.14 Billion

• India's trade deficit in October widened to $27.14 billion, driven by a 3.88% increase in imports, despite a 17.26% rise in merchandise exports.
• The country's total exports are expected to exceed $800 billion by March 2025, with engineering and electronics sectors showing strong growth.
• Source: Financial Express

3) Government to Introduce New Senior Citizens Policy

• The government plans to introduce a new policy for senior citizens, including health coverage for those aged 70 and above under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY), regardless of income.
• With India’s senior population expected to exceed 300 million by 2050, there is a growing need for comprehensive senior care solutions, including healthcare and housing.
  Source: Zee Biz

Stock Market Overview:

• Nifty faced a 2% drop this week, marking a six-day losing streak, driven by declines in metal and FMCG stocks.
• A stronger US dollar and rising bond yields added further pressure on Indian equities.
• Consumption-related stocks, like HUL and Asian Paints, saw losses due to inflation impacts on consumer spending.
• FMCG stocks, particularly impacted by retail inflation, saw sharp declines during trading.
• KPI Green Energy announced a 1:2 bonus issue, offering one free share for every two existing shares.