News Nook: Dec 13, 2024

Indian Sector Specific News:

A) BFSI:

1) IRDAI to Reduce Dependence on Parent Banks for Insurance Distribution

• The Insurance Regulatory and Development Authority of India (IRDAI) plans to limit life insurers' reliance on parent banks for business, encouraging them to diversify across distribution channels.
• Diversification aims to ensure balanced industry growth, while companies can still leverage parent banks' strengths without overdependence.
• Source: Business Standard

2) SEBI Proposes New Rules for Retail Algorithmic Trading

• SEBI suggests mandatory registration of self-developed algos by retail investors and empanelment of algo providers with stock exchanges via brokers.
• The proposed framework aims to ensure safe and fair participation in algo trading, with public feedback invited until January 3, 2025.
• Source: Moneycontrol

3) SEBI Warns HDFC Bank Over Non-Compliance in Investment Banking

• SEBI issued a warning to HDFC Bank over non-compliance in its investment banking activities during a routine inspection, causing the stock to dip 0.7%.
• Despite the warning, HDFC Bank's stock has performed well recently, gaining 18% over six months due to strong Q2 results and FII buying interest.
• Source: Economic Times

B) Automobile:

1) Nitin Gadkari Stresses Public Transport to Address Traffic and Parking Issues

• Transport Minister Nitin Gadkari highlighted India's growth in population and vehicle numbers, noting challenges like limited parking in cities such as Delhi.
• He emphasized strengthening public transport to reduce car numbers and projected India's road infrastructure would soon surpass America's, benefiting the economy and logistics.
• Source: Economic Times

2) Nitin Gadkari Confident of Indian Automobile Industry Leading Globally

• Nitin Gadkari aims to make India the world's largest automobile industry in 5 years, highlighting its growth from ₹7 lakh crore to ₹22 lakh crore and plans to reduce logistics costs to 9% within 2 years.
• He emphasized adopting biofuels like bio-ethanol to cut costs and pollution, along with innovative recycling projects to convert waste into hydrogen and other materials.
• Source: Editorji

3) Tesla Resumes Showroom Search in New Delhi, Signaling Renewed Push into Indian Market

• Tesla is exploring showroom spaces in New Delhi, considering DLF’s Avenue Mall and Gurugram's Cyber Hub for a customer experience center and delivery operations. Discussions with real estate giant DLF are ongoing.
• While Tesla's India strategy remains undecided, government incentives aim to boost EV sales from 2% to 30% by 2030, potentially attracting Tesla to local manufacturing.
• Source: BNE News Desk

C) Pharma:

1) India Participates as Vice-Chair in 2nd Supply Chain Council Meeting under IPEF

• India, represented by Additional Secretary Rajesh Agrawal, emphasized collaboration to strengthen supply chains in critical sectors like pharmaceuticals, semiconductors, and critical minerals. India proposed hosting the next SCC meeting in early 2025.
• Leading the Pharma/Healthcare Action Plan Team, India aims to reduce API (Active Pharmaceutical Ingredient) import dependency, boost domestic manufacturing, and advance healthcare resilience, leveraging its global pharmaceutical leadership.
• Source: PIB Delhi

D) Telecommunication:

1) Nationwide Rollout of 5G Technology Progresses Across India

• As of October 31, 2024, 5G services are available in 779 out of 783 districts in India, with over 4.6 lakh 5G Base Transceiver Stations (BTSs) installed since the October 1, 2022 launch.
• Government initiatives, including spectrum auctions, reforms in Adjusted Gross Revenue (AGR), simplified clearance processes, and the PM GatiShakti Sanchar portal, have streamlined the rollout, surpassing minimum obligations set for Telecom Service Providers (TSPs).
• Source: PIB Delhi

E) Agriculture:

1) Tech in Agriculture Takes Center Stage at KISAN Exhibition

• The 33rd KISAN exhibition, held from December 11-15, 2024, at the Pune International Exhibition and Convention Centre, spans 15 acres with over 500 companies participating, showcasing advanced farm technologies like drones, modern tractors, and harvesters.
• Special pavilions on agri-inputs, water management, and protected cultivation aim to provide innovative solutions tailored to Indian agro-climatic conditions, fostering knowledge exchange between farmers and industry.
• Source: Indian Express

2) CCFI Opposes Patent Evergreening for Agrochemicals

• The Crop Care Federation of India (CCFI) urged the government to reject patent evergreening for agrochemicals, citing concerns over monopolistic market conditions that could harm farmers and domestic manufacturers. CCFI emphasized that the existing 20-year patent term is sufficient for R&D cost recovery.
• Between 2010-2022, 62 pesticide molecules were patented in India, but only 27 were commercially launched. The federation warned that extending patent protections would lead to overpricing, reduced accessibility for small farmers, and pressure to extend similar provisions to pharmaceuticals.
• Source: Indian Express

F) Energy:

1) Experts Highlight Importance of Oil in India's Future Energy Mix at ET Oil & Gas Expo 2024

• At the 2nd day of the Economic Times Oil & Gas Annual Conference & Expo 2024, experts emphasized the need for a balance between traditional fuels and emerging energy technologies to meet future energy demands.
• Rajinder Kumar, Economic Advisor (IFD), Ministry of Petroleum and Natural Gas, noted a shift in global trade dynamics, with countries focusing more on internal demand and supply, reducing the influence of multilateral platforms like the WTO since 2015-16.
• Source: Economic Times

G) Infrastructure:

1) Indian Airports' Cumulative Capex to Grow 12% to Rs 60,000 Crore by FY27

• The cumulative capital expenditure (capex) of Indian airports is projected to grow 12% to Rs 60,000 crore over the next three years (FY24-27), from Rs 53,000 crore during 2022-2024, aimed at enhancing infrastructure to cater to 65 million passengers annually.
• A study by CRISIL on 11 private airports, accounting for 60% of total passenger traffic, indicated that passenger traffic at Indian airports is expected to grow at a compounded annual growth rate (CAGR) of 8-9% between FY25 and FY27, driven by rising domestic and international demand.
• Source: Business Standard

2) REITs and InvITs: Mobilizing Trillions for Infrastructure Development

• India faces a significant infrastructure funding shortfall of US$ 18 billion, but innovative solutions like Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are helping to bridge this gap by attracting private capital, including investments from pension funds and individuals.
• In FY24, fund-raising through REITs and InvITs in India reached Rs. 17,116 crore (US$ 2.05 billion), marking a significant increase from the previous year's Rs. 1,166 crore, signaling growing investor interest and the effectiveness of these platforms in mobilizing capital for infrastructure projects.
• Source: IBEF

Indian Economy and Government Initiatives:

• Despite a 5.4% GDP growth in the September quarter due to weak manufacturing and mining sectors, Piyush Goyal is confident that India's economy will rebound by March 2025, driven by factors like festive spending, rural growth, banking activity, and infrastructure spending.
• India's economy has strong stability but needs growth-friendly policies to boost growth and job creation, with optimism in rural and youth potential, say top business leaders.

Indian Stock Market Overview:

• The Indian stock market is expected to open flat due to mixed global cues, with the Nasdaq reaching 20,000 points and US inflation data boosting hopes for a rate cut by the Federal Reserve.
• Stock markets will remain open on January 1, 2025, despite some thinking it would be a holiday like Christmas, with only one holiday in January, on Republic Day (January 26), which falls on a Sunday.

Bonus Briefs:

• Google has unveiled its Gemini 2.0 Flash model, enhancing AI capabilities with a deep research mode.
• Google Workspace is saving organizations 171 hours per user annually, improving productivity.
• Australia is introducing new rules that could impose financial penalties on companies like Google, Meta, and TikTok if they fail to compensate media outlets for news content.