News Nook: Nov 26, 2024

 Indian Sector Specific News:

A) Indian BFSI:

1) PSBs Plan Big Bond Raises in FY25

• Public sector banks aim to raise ₹54,800 crore through AT-1 and Tier-2 bonds in FY25, a 37% increase from ₹39,880 crore in FY24.
• These bonds help banks meet Basel III capital rules; AT-1 bonds are higher-risk as they can be written off in financial crises.
• Source: Business Standard

2) C2C Advanced Systems Listing Delayed

• SEBI postponed 'C2C Advanced Systems' listing (originally planned for Nov 29) until it appoints an independent auditor to review financial accounts, following a complaint from an investor.
• Investors can withdraw applications before share allocation, and NSE will monitor post-listing fund usage; the company aimed to raise ₹99.07 crore through the IPO.
• Source: Moneycontrol

3) US Indicts Adani Group for Alleged Bribery

• Gautam Adani, his nephew, and others face a US indictment for allegedly paying $265 million in bribes to secure power purchase deals from 2020-2024, breaching the Foreign Corrupt Practices Act.
• SEBI was not informed of a related FBI raid and US investigation; the group reportedly denied these allegations despite evidence.
• Source: The Wire

4) SEBI Proposes Changes to Clearing Corporations' Ownership

• SEBI suggests diversifying clearing corporations' (CCs) ownership, including a model where stock exchanges have no stake, overhauling the current structure requiring majority ownership by exchanges.
• Clearing corporations ensure trade settlement and maintain a guarantee fund to handle defaults, emphasizing their critical role beyond commercial interests.
• Source: Moneycontrol

B) Indian Automobile:

1) Hyundai to Invest $480 Million in Malaysia for Production Expansion

• Hyundai will invest $480 million over five years starting 2025 to enhance production capacity, including upgrading its CKD plant to produce multipurpose vehicles and SUVs for Malaysia and Southeast Asia.
• The company also aims to boost Malaysia's EV ecosystem by expanding EV sales, charging infrastructure, and battery production facilities.
• Source: Zee Business

2) Maruti Suzuki Achieves 3 Million Car Export Milestone

• Maruti Suzuki exported 3 million cars globally, mainly to Latin America, Africa, Asia, and the Middle East, with 17 models sold in nearly 100 countries.
• In April-October FY24, exports grew 17.4% Y-o-Y to 181,444 units, contrasting with tepid domestic sales, reaffirming Maruti's leadership in India's vehicle exports.
• Source: Business Standard

C) Indian Pharma:

1) India's Pharma Sector Records Strong Q2FY25 Growth

• Pharmaceutical companies posted 10% YoY growth in Q2FY25, driven by robust performance in North America (10.8% YoY) and India (9.8% YoY). Chronic therapies grew by 9%, while acute therapies lagged with 4% growth due to weak seasonal demand.
• The sector anticipates a strong pipeline in biosimilars, GLP-1, and peptides over the next three years. Hospital revenues rose 17.6% YoY, with improved occupancy rates and growth in high-demand therapies like cancer and cardiac care boosting future potential.
• Source: Business World

D) Indian Energy:

1) TotalEnergies Halts New Investments in Adani Group Amid Bribery Allegations

• TotalEnergies, a key foreign investor in the Adani Group, has paused new financial investments until founder Gautam Adani is cleared of bribery allegations involving $265 million in bribes to Indian officials for solar contracts.
• The French energy giant, invested in Adani Green Energy and Adani Total Gas, emphasized its commitment to ethical practices and protecting its existing assets, noting it was previously unaware of the corruption investigation.
• Source: Economic Times

E) Indian Agriculture:

1) Cabinet Approves ₹2,481 Crore National Mission on Natural Farming

• The union cabinet, led by PM Modi, launched the National Mission on Natural Farming (NMNF) with a ₹2,481 crore allocation. It will integrate prior efforts like the Gobardhan Mission, targeting 1 crore farmers across 750,000 hectares over two years, with a focus on sustainable agricultural practices.
• Initiatives include 10,000 Bio-input Resource Centres for organic inputs, 2,000 model farms for training, and deploying 30,000 Krishi Sakhis for awareness. Experts highlighted concerns over soil nutrient deficiencies, suggesting natural farming's scalability may require additional inputs like organic manure.
• Source: Business Standard

F) Indian FMCG:

1) TCPL Sees Food Inflation as Short-Term Challenge, Focuses on Volume Growth

• Tata Consumer Products Ltd (TCPL) expects food inflation to ease in the next two quarters, while focusing on maintaining volume momentum despite margin pressures. The company plans to achieve double-digit growth in both top-line and bottom-line, without significant price hikes to avoid demand shocks.
• TCPL is also expanding rapidly in online and quick-commerce sales, with e-commerce growing to 15% of their portfolio. The company is prioritizing market share growth and innovation, aiming for 6% innovation-to-sales ratio, and continues to explore organic and inorganic growth opportunities, including integrating recent acquisitions like Capital Foods and Organic India.
• Source: Economic Times

G) Indian Infrastructure:

1) ED Raids Delhi-NCR Premises in ₹500 Crore Real Estate Fraud Linked to Money-Laundering

• The Enforcement Directorate (ED) has raided a dozen locations in Delhi-NCR, investigating a ₹500 crore money-laundering case involving real estate firms Orris Infrastructure, Greenbay Infrastructure, and Three C Shelter. Promoters Vijay Gupta, Amit Gupta, Sardar Nirmal Singh, and other directors are under scrutiny for alleged fraud.
• The probe, initiated after FIRs by the Delhi and Gurugram police, focuses on misappropriation of funds and fraudulent practices, including the sale of land without approvals and diversion of funds, resulting in stalled projects despite raising over ₹1,000 crore.
• Source: cnbctv

 Indian Economy and Government Initiatives:

• India’s economic outlook is "cautiously optimistic" for the coming months, with concerns over fragile geopolitical conditions impacting inflation and supply chains.
• The government plans to launch a paperless, online system for PAN cards through the Pan 2.0 initiative.
• PM Modi emphasizes the need for a collaborative financial model to ensure easier and transparent financing for co-operatives.
• S&P cuts India’s GDP growth forecast for FY26 and FY27, projecting a 6.8% growth for FY25.
• The government is dispatching 150 tonnes of onions to Jammu & Kashmir to curb rising prices, with onions priced at ₹60-₹90 per kg in the region.
• Despite declining inflation, urban households remain pessimistic, with high inflation expected to continue, particularly affecting the youth and middle class.
• India climbs to second place in emerging markets due to a rebound in export growth.
• The Cabinet Committee on Economic Affairs has approved the PAN 2.0 Project worth ₹1,435 crore, which will provide free upgrades to existing PAN cards, including the addition of a QR code, enhancing digital taxpayer services and streamlining the PAN/TAN system.
• India has unveiled a US$ 5 billion (Rs. 42,245 crore) plan to boost domestic electronics component production, aiming to reduce reliance on Chinese imports and strengthen local supply chains.
• Source: Livemint, Economic Times, IBEF

 Bonus Briefs:

• Crude oil prices fell back after reaching a two-week high as investors rebalanced positions amid concerns over the Ukraine war escalation.
• Key global economic drivers last week included stabilizing mortgage rates, job growth, and steady economic conditions, with monetary policy remaining in focus.