News Nook: Dec 2, 2024

Indian Sector Specific News:

A) BFSI:

1) India Inc. Q2 2024-25 Performance Highlights

• Aggregate profits of BSE 500 companies fell by 0.5% year-on-year, with weak demand, poor government spending, and excess rainfall affecting growth. Excluding financials, profit growth dropped by 9.8%, dragged down mainly by the energy sector, while healthcare and industrial sectors provided some support.
• Sales growth slowed to 4.8%, the lowest in three quarters, leading to EBITDA margins shrinking to a six-quarter low of 15.6%. Over half of the non-financial companies reported weaker profit margins despite stable global commodity prices.
• Source: Economic Times

2) C2C Advanced Systems IPO Update

• C2C Advanced Systems IPO allotment has been finalized, with its grey market premium (GMP) surging nearly 90%, recovering from a dip last week due to regulatory concerns delaying the listing.
• The IPO saw withdrawals of 3.72 lakh applications worth ₹27 crore. Subscribers can check allotment status on the registrar's official website, Link Intime India Pvt Ltd, using their application or PAN details.
• Source: Moneycontrol.

B) Automobile:

1) November 2024 Auto Sales Highlights

• Major automakers like Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai, and Hero MotoCorp began releasing monthly sales data on December 1. Maruti's utility vehicle sales grew by 20%.
• Analysts use these reports to evaluate the performance of passenger vehicles, commercial vehicles, two-wheelers, and EVs, reflecting the overall health of India's automobile industry.
• Source: Zee Business

2) Maruti Suzuki November 2024 Sales Highlights

• Maruti Suzuki's total sales rose 10% year-on-year to 1,81,531 units, with domestic passenger vehicle sales growing 5% to 1,41,312 units.
• Utility vehicle sales surged 20% to 59,003 units, while exports increased to 28,633 units from 22,950 units in November 2023. Compact car sales dropped slightly to 61,373 units.
• Source: Zee Business

C) Pharma:

1) Beta Drugs Limited Funding Update

• Beta Drugs Limited raised ₹117 crore from HealthQuad, Inti Capital, and other investors to accelerate its growth plans in oncology-focused operations.
• The funds will be used to expand the company's product portfolio and strengthen its position in the pharmaceutical industry.
• Source: Economic Times

D) Telecommunication:

1) Satellite Communication Licensing in India

• The Indian government is considering relaxing security conditions for satellite communication licences to align with global standards, which could allow companies like Starlink (Elon Musk) and Amazon Kuiper to offer telecommunication services in India.
• Discussions with law enforcement and telecom officers are ongoing, and a meeting with satcom players is expected soon.
• Source: Economic Times

E) Agriculture:

1) Agriculture Growth Outlook for H2FY25

• Agriculture is expected to grow robustly in the second half of FY25, supported by favorable monsoon conditions and high reservoir levels.
• A recovery in overall economic growth is anticipated with increased government spending, investment, and rising rural consumption.
• Source: BW Online

2) Digital Farmer ID Initiative

• The government aims to create digital IDs for 11 crore farmers, starting with 6 crore in FY24-25, through the Kisan Pehchaan Patra scheme.
• States are encouraged to organize camps for faster registration, with financial incentives provided for each camp and Farmer ID generated.
• Source: Indian Express

F) Energy:

1) ONGC Offshore Rig Contracts

• ONGC is in talks with domestic shipyards to build two offshore jack-up drilling rigs, with an estimated cost between $500 million and $550 million.
• The move is part of ONGC’s efforts to boost its offshore drilling capabilities and engage local industries for the construction.
• Source: Construction World

2) India’s Natural Gas Sector Faces Mixed Trends

• In October 2024, India saw a 10.8% increase in LNG imports to 2941 MMSCM, reflecting higher demand for imported gas.
• However, domestic natural gas production declined by 1.6% to 3111 MMSCM, presenting a challenge for self-sufficiency.
• Source: Economic Times

3) India to Invest Rs 9 Trillion in Power Transmission by 2032

• India plans to invest Rs 9.12 trillion to improve power transmission infrastructure by 2032, according to the Union Minister for Power, Shripad Yesso Naik.
• The investment will enhance transmission capacity to meet growing energy demand and support the nation’s power sector growth.
• Source: Construction World

G) IT:

1) What to Expect in the Indian IT Services Industry in 2025

• The demand for IT services will rise, especially in sectors like financial services, healthcare, and insurance, leading to growth in both Tier-1 and Tier-2 vendors. However, margin pressures will persist.
• AI will drive efficiencies in cloud and data services, although businesses may face challenges in realizing the expected ROI. The job market will see growth, increasing attrition and employee costs.
• Source: Financial Express

H) FMCG:

1) Slowdown in Urban FMCG Demand, Rural Markets Show Hope

• FMCG growth in India for October-November 2024 has slowed due to weak urban demand, with growth at 4-5% and volume growth at just 3%. Challenges include rising urban costs and stagnating wages.
• Rural markets are seeing recovery, aided by favorable agricultural trends, providing optimism for FMCG growth despite urban struggles.
• Source: Business Standard

I) Infrastructure:

1) Real Estate Leads AIF Investments in FY25

• Real estate has attracted the highest share (17%) of Alternate Investment Funds (AIFs) in India, totaling Rs 75,468 crore in the first half of FY25. Other sectors like IT/ITeS, Financial Services, and Pharma also saw significant investments.
• AIFs' overall commitments have risen by 340% in the last six years, reaching Rs 12,43,083 crore in H1 FY25, highlighting a growing preference for alternative investment strategies.
• Source: Business Standard

 Indian Economy and Government Initiatives:

• India's Q2 growth slowed to 5.4%, increasing political pressure on the Reserve Bank of India to cut interest rates. 
• However, the RBI is focused on tackling inflation, which remains high at 6.2%, making a rate cut unlikely for now.
• India is preparing strategies to counter the potential impact of US President-elect Donald Trump's protectionist trade policies. 
• With Trump advocating for tariffs, particularly targeting countries like India, the government is assessing how these policies might affect trade relations, given that the US is India's largest trade partner. India’s ministries are already brainstorming responses to safeguard its interests amid these uncertainties.