News Nook: Nov 21, 2024

 Indian Sector Specific News:

A) Indian BFSI:

1) IRDAI Chief on Bankers' Role in Insurance

• IRDAI Chairman Debasish Panda urged bankers to prioritize their main banking duties and not focus solely on selling insurance, highlighting concerns about "mis-selling" and its impact on trust.
• He emphasized the need for cautious use of bancassurance to expand insurance coverage while ensuring financial stability and protecting policyholders' interests.
• Source: Financial Express

2) SEBI's Unusual Stand on Piramal Pharma Case

• SEBI’s review order re-exonerated Piramal Pharma, stating alleged non-disclosures were not material as they occurred before its demerger from Piramal Enterprises. This marks a rare instance where harsher penalties were not imposed during a review.
• The order emphasizes stricter disclosure standards for listed entities, particularly on environmental and regulatory issues, urging companies to refine materiality policies for better compliance.
• Source: Moneycontrol

3) SEBI's New F&O Rule Effective November 21, 2024

• Starting November 21, 2024, all new F&O contracts will have an increased lot size, ensuring a minimum contract value of ₹15 lakh as mandated by SEBI to curb excessive speculation.
• NSE and BSE will align new index F&O contracts with this rule, fixing lot sizes to maintain contract values between ₹15 lakh and ₹20 lakh.
• Source: Business Standard

4) SEBI Bans Three Unregulated Bond Platforms: Key Takeaways

• SEBI banned unregistered platforms altGraaf, Tap Invest, and Stable Investments for selling unlisted non-convertible debentures (NCDs) to retail investors, circumventing public-issue norms. 
• The platforms had large user bases, violating the 200-investor limit of private placements.
• The platforms might have acted with issuing companies to break the law, and SEBI suspects fraudulent practices, requiring further investigation.
• Source: Moneycontrol

B) Indian Automobile:

1) Why Hybrids May Lag Behind in India’s Auto Market

• By FY30, EVs are projected to reach 18% of India’s vehicle market and CNG vehicles 30%, while hybrids are expected to account for only 4.1%, due to limited growth potential.
• Analysts suggest India's focus on EVs and CNG as cleaner, cost-efficient alternatives reduces the appeal for hybrid vehicles.
• Source: Business Standard 

2) SRO Eyes Made-in-India Car Sensors

• ISRO Chairman S Somanath emphasized the need to indigenize car sensors using space tech, as most automotive sensors in India are currently imported.
• He urged collaboration between industries to mass-produce low-cost, Indian-made sensors, highlighting their importance for the automotive supply chain.
• Source: New Indian Express

C) Indian Pharma:

1) Pharma Company Explosion in Hyderabad

• An explosion at Aurora Pharmaceutical Company during reactor cleaning killed one and injured three; two workers are critically injured.
• The injured were taken to Yashoda Hospital, and investigations are ongoing.
• Source: Times of India

D) Indian Telecommunication:

1) Supreme Court Allows Cenvat Credits for Telcos

• The Supreme Court has ruled in favor of telecom companies, allowing them to claim Cenvat credits on duties paid for infrastructure, marking a significant win for the sector.
• This decision is expected to provide financial relief to telcos, supporting their operational cost management.
• Source: Economic Times

E) Indian Agriculture:

1) Midterm Review of Agricultural Schemes in Southern States

• The Ministry of Agriculture reviewed schemes like Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana (KY) in Visakhapatnam, urging states to address funding issues and adopt initiatives like Dharti Aaba Janajatiya Gram Utkarsh Abhiyan (DA-JGUA) for tribal empowerment.
• Key topics included Pradhan Mantri Fasal Bima Yojana (PMFBY) for crop insurance, Digital Agriculture Mission, natural farming, and e-National Agriculture Market (e-NAM) to enhance farmer benefits and sector growth.
• Source: PIB

2) India-Guyana Sign 10 MoUs on Key Sectors

• India and Guyana signed MoUs in agriculture, hydrocarbons, UPI, defence, and health during PM Modi's visit, including the deployment of a UPI-like payment system and collaboration in natural gas and crude sourcing.
• Agreements also cover cultural exchange, affordable medicines under PMBJP, and cooperation in broadcasting, pharmaceuticals, and national security training.
• Source: ddnews

F) Indian Energy:

1) Government Pushes for Cheaper and Better Energy Storage

• The government has asked states not to take free electricity from energy storage projects like pumped storage to make them more affordable and encourage their use as India moves to renewable energy.
• New projects, including battery storage tenders, aim to ensure round-the-clock power. Experts also stress the need for safe battery recycling to reduce waste.
• Source: Economic Times

G) Indian FMCG:

1) OH!SOME Wins FMCG Asia Award for Customer Experience

• OH!SOME, a trendy retail brand, won the Customer Experience Initiative of the Year – Indonesia category at the FMCG Asia Awards 2024 for its innovative membership service system.
• The brand uses AI and big data to integrate online and offline experiences, offering unique in-store events and tiered membership, which has helped it expand across Southeast Asia with over 80 stores.
• Source: News Patrolling

H) Indian IT:

1) Why Indian IT Service Providers Aren't Tapping Into the Domestic Market

• Indian IT service providers have historically focused on international markets due to the higher revenue potential from countries like the US, Europe, and Japan, which are major investors in technology.
• The domestic market is seen as limited in size and price-sensitive, making it less attractive compared to the lucrative foreign markets.
• Source: Business Standard

I) Indian Infrastructure:

1) Real Estate Developers Apply for Deregistration of 19 Projects in Maharashtra

• Developers like Lodha Group, K Raheja Corp, and Lokhandwala Infrastructure have applied for the deregistration of 19 projects across cities such as Mumbai, Pune, Thane, Nashik, and Nagpur.
• MahaRERA has allowed 30 days for the public to file objections against the deregistration applications, which can be made due to reasons like lack of funds, legal disputes, or changes in government policies.
• Source: Hindustan Times

 Indian Economy and Government Initiatives:

1) Rising Welfare Spending at State Level in India

• Indian state governments have rolled out around 107 new welfare schemes, totaling Rs. 5.1 trillion, which accounts for 1.6% of GDP, with a focus on income transfers to women and farmers, subsidized LPG, and free electricity.
• Although some schemes have been successfully implemented, funding challenges and political pressures may lead to compromises in capital expenditure and delayed implementation of promises, potentially impacting long-term growth.
• Source: Financial Express

Stock Market Overview:

• The stock market today experienced mixed results, with 4 sectors advancing and 34 sectors declining. 
• The IT sector, including NIFTYIT, BSE IT, and TECK, saw gains, while NIFTYPSUBANK, S&P BSE Utilities, and NIFTYENERGY faced declines.
• Coforge, Cigniti Tech., and Adani Green were key drivers of gains, while Adani Energy Sol and Bank Of Baroda led the declines. NIFTYIT had the best performance, with an advanced-decline ratio of 1.5.