News Nook: Nov 19, 2024

Indian Sector Specific News:

A) Indian BFSI:

1) India Plans 100% FDI in Insurance Sector

• The government may allow 100% foreign investment in insurance to attract global players, improve market competition, and boost insurance coverage as part of the Insurance Amendment Bill.
• Individual agents might soon sell policies from multiple companies, a shift from current rules, to improve efficiency and customer choices.
• Source: Economic Times 

2) SEBI Updates Loan Default Rules, Removes 'Technical Default' Provision

• SEBI has removed "technical default" from its Credit Rating Agencies (CRAs) guidelines to streamline default classification and ensure consistent practices.
• Defaults caused by factors like incorrect account details now require CRAs to verify issuer funds and mandate payments through escrow accounts.
• Source: CnbcTv

3) SEBI Cracks Down on Unregistered Online Bond Platforms

• SEBI has ordered altGraaf, Tap Invest, and Stable Investments to halt operations for selling unlisted bonds without proper registration, citing investor risks and regulatory violations.
• These platforms raised over ₹4,800 crore collectively and have 21 days to respond as SEBI continues its investigation.
• Source: Business Standard

B) Indian Automobile:

1) Dealers Expect Boost in EV Sales After Full Tax Exemption

• The Telangana government’s decision to exempt road tax and registration fees for electric vehicles (EVs) is expected to drive significant growth in EV sales.
• The policy, effective from November 18, 2024, will last for two years and has no cap on the number of vehicles registered.
• Source: Telangana Today

C) Indian Pharma:

1) Independent Labs Crucial in Drug Development, Says Dr. Saurabh Arora

• Independent labs like Auriga Research play a key role in drug development, from early testing to post-market surveillance, ensuring compliance with safety standards and regulatory requirements.
• These labs assist pharmaceutical companies, regulatory bodies, and procurement agencies, and are quick to respond to new challenges, such as detecting impurities in drugs.
• Source: Pharmabiz

2) Only 4 Out of 46 Pharma Companies in Tamil Nadu Fully Compliant with Revised Schedule M

• In the first phase of inspections, only 4 out of 46 pharmaceutical companies in Tamil Nadu were fully compliant with the Revised Schedule M guidelines, with over 50% of companies meeting 80% of the norms.
• The drug control department plans to inspect 306 more companies after January 4, 2025, and is providing support to help them comply with the updated regulations.
• Source: Pharmabiz 

D) Indian Telecommunication:

1) SpaceX to Launch ISRO's GSAT-N2 Satellite for Enhanced Broadband and In-Flight Internet

• ISRO's GSAT-N2 satellite, set to launch aboard SpaceX’s Falcon 9 rocket, aims to improve broadband in remote areas and provide in-flight internet connectivity. The $60-$70 million mission is scheduled for midnight on November 19, 2024.
• The satellite, featuring advanced technology and efficient coverage, will support high-speed internet demand, especially in underserved regions, with dedicated beams for the northeastern states.
• Source: Livemint

2) Pensioner Samman Mahotsav to be Held in New Delhi

• The Department of Telecommunication will organize the Pensioner Samman Mahotsav at Sanchar Lekha Bhawan, New Delhi, starting on November 20, 2024, offering pensioners a range of informative activities to support health, digital literacy, financial security, and social well-being.
• Activities include health management sessions, banking mela for financial literacy, tree plantation in honor of mothers, and digital life certificate verification camps to promote digital accessibility among telecom pensioners.
• Source: PIB Delhi

E) Indian Agriculture:

1) Soil Degradation Threatens Agriculture, Says Agriculture Minister

• India’s Agriculture Minister, Shivraj Singh Chouhan, expressed concern that 30% of the country's land is affected by soil degradation, urging urgent action to improve soil health to ensure sustainable farming and achieve key Sustainable Development Goals (SDGs).
• The government is implementing initiatives such as soil health card distribution and promoting sustainable farming practices, but Chouhan emphasized that more efforts are needed, particularly considering the challenges posed by climate change.
• Source: PTI

F) Indian Energy:

1) Delhi HC Seeks Response from Norway's Pure E&P on ONGC's Rs 252 Crore Arbitration Award

• The Delhi High Court has sought a response from Norway's Pure E&P regarding ONGC’s petition to enforce a Rs 252 crore arbitral award granted in December. The court has also ordered DNB Bank to freeze funds in Pure E&P's escrow account, which holds 50% of the award amount.
• ONGC claims that Pure E&P has only paid Rs 114.36 crore, leaving a shortfall of over Rs 137.64 crore, and disputes the foreign company’s assertion of full payment.
• Source: ET Bureau

2) Oil Prices Retreat Amid Ongoing Geopolitical Tensions

• Oil prices eased after a recent rally driven by the Russia-Ukraine war.
• Despite the pullback, the market remains cautious due to ongoing geopolitical uncertainties.
• Continued concerns about the conflict’s impact on global oil supply influence market sentiment.
• Source: Economic Times

G) Indian IT:

1) India's Smartphone Exports Reach New Heights

• India's smartphone exports crossed $2 billion in October 2024, a record high, with total exports surpassing $10 billion in the first seven months of FY25, primarily driven by iPhone shipments.
• Apple and its suppliers like Foxconn and Tata Electronics played a key role in this growth, with Apple’s share accounting for nearly two-thirds of the export value. Exports are expected to continue rising, with projections reaching $18–20 billion by FY25.
• Source: Business Standard

2) IT Industry Sees Strong Recovery in Q3

• India’s $250 billion IT outsourcing sector saw a boost in deal activity, with 60 deals signed in the September quarter, up from 47 in the previous quarter.
• Key players like Infosys, Cognizant, and Accenture secured major deals, with a notable revival in the banking and financial sectors in North America, contributing to optimism for the upcoming quarters.
• Source: Economic Times

H) Indian Infrastructure:

1) Construction Costs Rise by Up to 11% in 2024

• In the past year, construction costs have increased by up to 11%, with labor costs playing a significant role, rising by 25%.
• Despite a 15% drop in cement prices and a marginal decrease in steel prices, the overall cost surge is mainly due to higher labor expenses, especially for skilled workers, and regulatory costs.
• Source: ETRealty.

Indian Economy and Government Initiatives:

1) Government Opposes RBI Proposals on Bank Reserves

• The Indian government is resisting two key proposals by the RBI that would require banks to set aside more funds: 5% for infrastructure projects and 5% for reserves against online deposits.
• The government fears these proposals could restrict credit growth, which has been growing at nearly 14% annually.
• Source: Economic Times

2) Govt Initiatives Boost FDI Inflows

• Government initiatives like PLI schemes and investments in infrastructure (roads, railways, ports) have made India more competitive and attracted foreign investors.
• FDI inflows have risen from $45.14 billion in 2014-15 to $70.95 billion in 2023-24, reflecting increased foreign interest in India’s growing manufacturing sectors.
• Source: Business Standard

3) RBI Governor Shaktikanta Das Likely to Get Term Extension

• The Indian government is expected to extend the term of RBI Governor Shaktikanta Das, making him the longest-serving RBI chief since the 1960s.
• Das, appointed in 2018, is already serving beyond the usual five-year term, and the extension would likely last another year, with the final decision resting with Prime Minister Modi.
• Source: Economic Times 

Stock Market Overview:

• Glenmark Pharmaceuticals Ltd's stock is down 0.5%, continuing its decline for the fifth consecutive session, but it has seen a 94.35% increase over the past year.
• The Indian stock market opened lower, with IT stocks facing the most significant losses.
• Arfin India's stock has hit a 52-week low, with market analysts rating it as a "Strong Sell" due to investor concerns.