News Nook: Nov 2, 2024

Indian Sector Specific News:

A) Indian BFSI:

1) Bank Lending Trends in Retail and Industry

Retail loan growth slowed to 16.4% in September 2024, with reduced demand for personal, vehicle, and credit card loans, though housing loans grew.
Industrial credit improved, with a 9.1% rise driven by sectors like chemicals, food processing, and petroleum.
Source: Economic Times

2) PSU Banks Monetize Scrap for Cleanliness and Efficiency

Public sector banks and financial institutions earned ₹4.5 crore from scrap disposal in a campaign focused on reducing pendency and enhancing cleanliness, freeing 11.79 lakh sq. ft. of space.
They also reactivated nearly 80 lakh dormant accounts, contacted 1.45 lakh pensioners, and resolved all identified public grievances.
Source: Economic Times

3) Banks Face Increased Compliance Under RBI's Revised Fraud Management Directives

RBI’s updated 2024 Fraud Risk Management guidelines increase compliance demands for banks, focusing on bolstering fraud prevention and investigation processes.
While resource-intensive, these guidelines aim to curb financial misconduct and improve due diligence quality, including stricter KYC checks.
Source: Financial Express

4) SEBI Proposes Doubling Threshold for High Value Debt Listed Entities

SEBI has suggested increasing the threshold for High Value Debt Listed Entities (HVDLEs) from ₹500 crore to ₹1,000 crore to lessen compliance burdens, including governance obligations and reporting formats.
The proposal includes a sunset clause for governance requirements if outstanding debt falls below the threshold and introduces a dedicated chapter for HVDLE governance within existing regulations.
Source: Economic Times

B) Indian Automobile:

1) October Auto Sales Snapshot: Maruti Leads, Mahindra Hits Record

Maruti Suzuki led the market with record-breaking sales of 2,06,434 units in October, a 4% rise year-on-year.
Mahindra & Mahindra achieved its highest monthly sales at 96,648 units, a 20% increase over last year.
Tata Motors sold 82,682 units, trailing Mahindra with a slight dip.
Hyundai India fell behind Mahindra, recording 70,078 units.
Toyota Kirloskar and MG Motors saw strong growth, with Toyota at 30,845 units and MG posting a 31% year-on-year rise.
Source: Free Press Journal

C) Indian Pharma:

1) Suven and Cohance Set Ambitious Revenue Goal

Suven Pharmaceuticals and Cohance Lifesciences target ₹6,000 crore revenue by FY29, focusing on expansion through partnerships and new projects.
Approved for a merger, the companies will emphasize CDMO (Contract Development and Manufacturing Organization) and API (Active Pharmaceutical Ingredient) growth in response to rising demand.
Source: Business Standard

D) Indian Telecommunication:

1) Satcom Service Licensing Update in India

Companies in India may need a new license to provide satellite communication (satcom) services, even if they already hold an existing one.
Currently, two licenses are required: VSAT-CUG and GMPCS. TRAI is consulting on whether additional authorization should be required specifically for Satellite Earth Station Gateways.
Source: Business Standard

2) SBA Expands Central American Telecom Presence

SBA Communications acquired 7,000 telecom towers from Millicom for $975 million, bolstering its footprint in Central America.
This strategic move focuses on high-growth international markets and will impact telecom infrastructure in countries like Guatemala, Honduras, and Panama.
Source: Capacity Media

E) Indian Agriculture:

1) Affordable Grain Distribution to Tackle Rising Prices in Bengaluru

The Indian government launched affordable grain distribution in Bengaluru, offering Bharath rice at ₹34, wheat flour at ₹30, chana dal at ₹70, and moong dal at ₹107 per kg, significantly lower than market prices.
The initiative, led by the Ministry of Consumer Affairs and NCCF, aims to make quality grains accessible to residents, reducing the impact of inflation.
Source: Business Standard

F) Indian FMCG:

1) A.O. Smith Completes Acquisition of Pureit Business from HUL

A.O. Smith Corporation has finalized its acquisition of Hindustan Unilever's Pureit water purification business, expanding its reach in the water technology sector.
The acquisition enhances A.O. Smith's offerings in water purification products, aiming to strengthen its market presence in India and beyond.
Source: Economic Times

Indian Economy and Government Initiaves:

Renowned economist Bibek Debroy passed away at 69, leaving behind a legacy as a key advisor to the Modi government and chairman of the economic advisory council, where he championed India's Amrit Kaal vision for a self-reliant economy.
His death prompted tributes from leaders like Prime Minister Modi, who celebrated Debroy's significant impact on India's intellectual landscape.
Source: Hindustan Times

The Karnataka government has approved a Tourism Policy for 2024-29, allocating ₹1,349 crore for infrastructure development aimed at attracting international tourists, as announced by Minister Laxmi Hebbalkar.
The policy reflects a broader commitment to socio-economic empowerment, including educational grants, irrigation projects, and initiatives to promote Kannada culture and language.
Source: Economic Times

Stock Specific News:

Tata Motors reported a marginal decline in sales for October 2024.
Ola Electric saw a significant increase in vehicle registrations, jumping 74% compared to the previous year.
Eicher Motors experienced contrasting trends, particularly with its joint venture VE Commercial Vehicles.
Kwality Pharmaceuticals reported a 35.83% year-on-year profit rise and a 12.91% increase in operating income quarter-over-quarter.

Bonus Briefs:

Asian markets are treading cautiously, with Japan's Nikkei index declining while China's Hang Seng index gained ground.
Investors are on edge as they anticipate significant economic events in the U.S, which could impact global markets.
Political uncertainties, like those from the upcoming U.S. elections, make markets sensitive, affecting assets like gold as investors seek safe havens.