News Nook: Dec 17, 2024

Indian Sector Specific News:

A) BFSI:

1) PSBs Divided Over Perquisite Tax Burden for Staff

• Public sector bank employees face retrospective tax on concessional loans, with SBI and BOB covering the cost, while PNB and Union Bank have asked employees to pay. PNB is offering personal loans to help, but these loans will also attract tax.
• The Supreme Court upheld taxing concessional loans as fringe benefits, leading banks to recover the tax via TDS from December 2024 salaries.
• Source: Financial Express

2) SEBI Proposes New Algo-Trading Norms to Curb Illegal Practices

• SEBI's December 13 consultation paper aims to tighten algo-trading regulations, making it nearly impossible for traders to manage or share algorithms for extended family members' investments.
• Earlier rules requiring machine ID, IP address tracking, and daily token generation will further prevent unauthorized sharing of algo-trading systems.
• Source: Moneycontrol

3) HDFC Bank Receives Second SEBI Warning in a Week

• HDFC Bank received another SEBI warning for a three-day delay in disclosing the resignation of senior employee Arvind Kapil and failing to provide an explanation for the delay.
• SEBI has warned the bank to avoid such lapses in the future, directing it to present its response to the Board and disclose it to stock exchanges.
• Source: ETMarkets

B) Automobile:

1) Auto OEMs to Invest $323 Billion in EVs by 2070: CSI Report

• Auto OEMs are projected to invest $323 billion by 2070 for decarbonizing transport, with $263 billion allocated to four-wheelers and $45 billion to trucks.
• EV sales could add $9.6 trillion to OEM revenues by 2070, with cars contributing 83% of total EV revenues post-2030. Battery costs are expected to drop below $100/kWh by 2030, boosting EV price competitiveness.
• Source: Business Standard

2) 55th GST Council Meeting May Clarify 22% Cess on Utility Vehicles

• The GST Fitment Committee is reviewing a proposal to clarify the 22% cess applicability on utility vehicles from July 26, 2023, onwards, following concerns raised by auto manufacturers.
• Automobile companies, particularly SUV sellers, have faced inquiries and notices over cess calculations since July 2017, with SIAM escalating the issue to the Ministry of Finance.
• Source: CNBC TV-18

C) Pharma:

1) Senores Pharmaceuticals IPO to Open on December 20

• The IPO comprises a fresh issue of ₹500 crore and an offer for sale (OFS) of 21 lakh shares, closing on December 24. Proceeds will fund subsidiary investments, debt repayment, acquisitions, and corporate purposes.
• Financials: Revenue rose from ₹353.37 million in FY23 to ₹2,145.24 million in FY24, with profits jumping to ₹327.08 million in FY24. The stock is expected to list on December 30 on the BSE and NSE.
• Source: LiveMint

2) 2024: A Pivotal Year for India’s Pharma Sector – OPPI DG Anil Matai

• Landmark initiatives like the PM-JAY expansion, modified PRIP guidelines for KSMs and APIs, and Patent (Amendment) Rules 2024 have bolstered innovation and inclusivity in healthcare. The TEPA agreement with EFTA nations also highlights India’s global strides.
• Technological advancements (AI, precision medicine), ethical frameworks like UCPMP, and strengthened regulations will position India as a global hub for affordable, high-quality pharmaceuticals, ensuring patient-centric care in 2025.
• Source: Express Pharma

D) Telecommunication:

1) C-DOT and Trois Infotech Collaborate on "Face Recognition Using Drone" Under TTDF Scheme

• C-DOT and Trois Infotech signed an agreement under the Telecom Technology Development Fund (TTDF) to develop drone-based facial recognition technology with advanced imaging, real-time processing, and 4G/5G-enabled seamless communication.
• Innovations include long-range imaging (500m+), Face Adaptive Exposure Control, high-accuracy edge AI processing, and applications in traffic management, emergency response, defence, and environmental monitoring, supporting India's "Atmanirbhar Bharat" vision.
• Source: PIB Delhi

2) C-DOT and Silizium Circuits Partner to Develop LEO Satellite Components and GNSS RF Front End ASIC

• C-DOT and Silizium Circuits signed an agreement under the Telecom Technology Development Fund (TTDF) to develop advanced semiconductor solutions for LEO satellite components, focusing on power efficiency, high-speed data transmission, and robust signal integrity.
• This collaboration aims to enhance India’s satellite communication infrastructure, contributing to global and domestic markets while supporting the vision of a self-reliant, future-ready satellite communication network.
• Source: PIB Delhi

3) India's Smartphone Exports Surpass Rs 20,000 Crore Mark in November 2024

• In November 2024, India's smartphone exports reached a record Rs. 20,395 crore (US$ 2.44 billion), marking a 92% increase from the previous year. Apple iPhones led the charge, contributing Rs. 14,000 crore (US$ 1.67 billion), with over 80% of iPhones produced in India being exported.
• The smartphone PLI scheme has driven this growth, making smartphones the third-largest export commodity from India. The scheme has created significant employment opportunities, particularly for young women, and generated Rs. 1.1 trillion (US$ 13.14 billion) in incremental GST revenue since its inception.
• Source: IBEF

E) Agriculture:

1) Union Agriculture Minister Holds Pre-Budget Consultations with Stakeholders

• Union Agriculture Minister Shri Shivraj Singh Chouhan held consultations with farmers, agricultural entrepreneurs, organizations, and Farmer Producer Associations at Krishi Bhawan, New Delhi. Suggestions focused on value addition in agriculture, improving export facilities, expanding research, and addressing issues related to agricultural inputs and farmers' losses.
• The suggestions will be reviewed and submitted to the Finance Minister. The Ministry is also conducting an internal study to finalize its proposals for the budget and is reviewing older schemes. The government is exploring new initiatives like Kisan Panchayat to support farmers.
• Source: PIB Delhi

2) Centre Launches Rs 1,000 Crore Credit Guarantee Scheme for Farmers

• Union Food Minister Pralhad Joshi launched a Rs 1,000 crore credit guarantee scheme aimed at easing access to post-harvest loans for farmers through electronic warehouse receipts (e-NWRs). The scheme intends to reduce banks' reluctance to lend against these receipts.
• Food Secretary Sanjeev Chopra highlighted the potential for post-harvest lending to grow from Rs 4,000 crore to Rs 5.5 lakh crore over the next 10 years with collaborative efforts from the banking and warehousing sectors.
• Source: Business Standard

F) Energy:

1) India's Import of Russian Oil Drops in November

• India's imports of Russian crude oil fell by 55% in November, marking the lowest level since June 2022, due to shrinking discounts on Russian oil.
• Despite the decline, Russia remains India's largest oil supplier, with Russian oil previously accounting for almost 40% of India's total imports, up from less than 1% before the Ukraine conflict.
• Source: ET Energy

2) TotalEnergies Sells 50% of Shares in UK Gas Power Plant

• TotalEnergies has sold 50% of its shares in the 1.3 GW West Burton Energy gas power plant in the UK.
• The sale aligns with the company’s strategy to reduce its exposure to traditional energy sources and invest more in renewables.
• Source: Indian Chemical News

G) IT:

1) Indian IT Sector to Grow in Mid Single Digit for FY25: ICRA Report

• The Indian IT services sector is expected to achieve revenue growth in the range of 4-6% for FY25, slightly better than the 3.8% growth in FY24.
• Hiring in the sector is anticipated to remain low, with significant hiring recovery expected only by H1 FY26.
• Source: Business Standard

H) Infrastructure:

1) PM Modi Inaugurates Rs 55Bn Projects in Prayagraj

• Prime Minister Narendra Modi inaugurated various development projects worth Rs 55 billion in Prayagraj, Uttar Pradesh.
• The projects aim to enhance infrastructure and boost economic growth in the region.
• Source: Construction World

2) India's Cement Sector Sees Strong Activity in 2024

• India's cement sector witnessed over 10 major deals in 2024, valued at over $3.5 billion, marking the highest activity in a decade.
• The deals were led by top companies UltraTech Cement and Ambuja Cements, mainly in South India, and focused on acquisitions and new investments.
• Source: Business Standard

Indian Economy and Government Initiatives:

• Finance Minister Nirmala Sitharaman blamed the economic policies under Nehru and Indira Gandhi for keeping India's economy weak for the first five decades post-independence. She criticized the adoption of the Soviet economic model, stating it did not benefit the country.
• Governments borrow to finance their expenses when they exceed their income, leading to a fiscal deficit. Borrowing helps expand the economy and spread the debt burden across generations.
• The 15th Finance Commission recommends a debt path for the central and state governments to manage and reduce debt in the coming decade.

Indian Stock Market Overview:

• Indian markets ended lower on December 17, with Nifty closing below 24,350 and Sensex down 1.30% at 80,684.
• Shriram Finance and Bharti Airtel were the biggest losers, while Cipla was the only gainer.
• All sectors, including auto, bank, and metal, experienced declines.
• Technical analysts suggest a bearish sentiment, with Nifty facing potential support at 24,200 and a risk of further declines if it breaks below that level.

Bonus Briefs:

• Despite earning a modest salary of $80,000 annually at Amazon, Jeff Bezos made $8 million per hour in 2024, largely due to his significant ownership in the company.
• His financial strategy of prioritizing equity over salary allows him to minimize his tax liability, resulting in a net worth of nearly $246 billion.
• Brent crude futures fell 0.81% to $73.89 a barrel, while U.S. West Texas Intermediate crude dropped 0.98% to $70.59, following weaker-than-expected consumer spending data in China, the world’s largest oil importer.
• Analysts cited the Chinese economic outlook, which has pressured oil prices, while traders await U.S. Federal Reserve's upcoming interest rate decision, which could influence oil demand.