News Nook: Dec 19, 2024

 Indian Sector Specific News:

A) BFSI:

1) Reliance Nippon Life & IndusInd Bank Eye Bancassurance Tie-Up

• Reliance Nippon Life Insurance is in talks with IndusInd Bank for a bancassurance partnership as IndusInd’s parent, IIHL, nears completion of its acquisition of Reliance Capital.
• The partnership aims to expand Reliance Nippon’s insurance reach, supported by IIHL’s strong capital base, with the deal expected to finalize next month.
• Source: Economic Times

2) SEBI's New Market Reforms Aim to Boost Investor Protection

• SEBI has introduced stricter norms for SME IPOs, requiring ₹1 crore operating profit in two of the last three years and capping promoter sales at 50% during IPOs. It also restricted IPO proceeds' use for loan repayments to related parties.
• ESG reporting rules have been eased, debt listing requirements simplified, and surveillance of trading platforms enhanced to improve transparency and investor confidence.
• Source: Economic Times

3) SEBI Rejects Controversial PUSTA Regulations

• SEBI’s Board has not approved the Prohibition of Unexplained Suspicious Trading Activities (PUSTA) Regulations, which would have shifted the burden of proof to entities accused of suspicious trading.
• Concerns arose that the proposed regulations violated natural justice principles and were overly harsh, though SEBI justified the move due to challenges in detecting and proving fraudulent activities using traditional evidence.
• Source: Moneycontrol

B) Automobile:

1) Honda and Nissan Explore Merger to Rival Toyota

• Honda and Nissan are in early talks for a potential merger, considering options like a holding company or capital tie-ups. Mitsubishi Motors might also join, potentially reshaping Japan's auto sector.
• Nissan shares surged 24%, while Honda shares dropped 3.4% after news broke. The merger aims to boost global competitiveness against EV giants like Tesla and Chinese automakers.
• Source: goodreturns

2) Ministry of Heavy Industries 2024 Highlights

• Launched major EV-focused schemes like PLI for Auto Industry (₹25,938 crore) and FAME-II (₹11,500 crore) to boost manufacturing and adoption, benefiting over 16 lakh EVs.
• Introduced initiatives like PM E-DRIVE (₹10,900 crore) and ACC Battery PLI (₹18,100 crore) to enhance green mobility, battery storage, and domestic manufacturing.
• Source: PIB Delhi

3) India's EV Market Growth in 5 Years

• India registered 36.39 lakh EVs in five years, capturing a 3.38% market share.
• EV adoption driven by supportive government schemes like FAME-II and state-level incentives.
• Source: Economic Times 

C) Pharma:

1) Senores Pharma IPO Details

• Price band set at ₹372-391 per share, requiring a minimum investment of ₹14,858 for 38 shares.
• ₹582.11 crore IPO opens on December 20, closes on December 24, and listing is expected on December 30, 2024.
• Source: LiveMint

D) Telecommunication:

1) Broadcasters Defend Broadcasting's Unique Identity

• Broadcasters opposed TRAI's move to bring broadcasting under the Telecom Act, warning it could harm the sector's unique identity and creative freedom.
• Industry leaders urged content regulation to stay under the Ministry of Information and Broadcasting, while DTH players demanded regulatory oversight for OTT platforms.
• Source: Pitchonnet

E) Energy:

1) Oil Prices Edge Higher Ahead of US Fed Rate Decision

• Oil prices saw a slight increase as investors awaited the US Federal Reserve's interest rate decision, which could impact demand outlook.
• Market caution persisted with focus on economic signals and the Fed's policy stance.
• Source: The Economic Times

2) Urja Vikas Issues Tender for 3,200 MW Thermal Power Projects

• Urja Vikas has launched a new tender for 3,200 MW thermal power projects, after canceling a joint tender for solar and thermal projects totaling 11,200 MW.
• This move comes as part of the state government's efforts to boost power generation capacity.
• Source: Construction World

 Indian Economy and Government Initiatives:

• India's small businesses, a key part of the economy, are facing difficulties due to rising costs, weak demand, and limited access to credit, leading to a slowdown in growth.
• The country's GDP growth dropped to a seven-quarter low of 5.4%, confirming the concerns of small businesses about the worsening economic conditions.
• The Indian government is launching a ₹9,000-crore incentive scheme to increase the local production of batteries for electric vehicles (EVs), aiming to reduce reliance on imports.
• This initiative will focus on manufacturing key battery components like anodes and cathodes, boosting the EV and clean energy sectors, and potentially lowering vehicle costs.
• Retailers in India are urging the government to provide affordable financing, lower interest rates, and a special fund for small businesses in Budget 2025 to boost the retail sector's growth.

 Stock Market Update

• On December 19, 2024, the Indian stock market faced significant losses, with the Sensex plunging nearly 1,200 points and Nifty falling to 23,951.70.
• This marks the fourth consecutive session of losses, with the Sensex dropping 3.5% and Nifty 3.3% over the past few days.
• The market decline was driven by signals from the US Federal Reserve indicating slower rate cuts in the future.
• The Sensex ended the day 964 points down (1.2%), while Nifty closed 247 points lower (1.02%).