Indian Sector Specific News:
A) BFSI:
1) Aditya Birla Capital Invests in Health Insurance Arm
- Aditya Birla Capital invested ₹23 crore in Aditya Birla Health Insurance through a rights issue to strengthen the insurer's financial stability.
- The investment helps maintain a 45.89% stake in the health insurance company.
- Source: Business Standard
2) Insurers' Commission Expenses Surge in FY24
- Life insurers' commission expenses rose 22% to ₹51,524 crore, while general insurers' expenses doubled to ₹39,601 crore after IRDAI removed caps on payouts in April 2023.
- Insurers exceeding management expense caps must present a compliance plan within three years as per IRDAI's guidelines.
- Source: Economic Times
3) Two Individuals Settle Insider Trading Case with SEBI
- Nimai Parekh and Rahil Dalal settled an insider trading case with SEBI by paying ₹74 lakh without admitting or denying the allegations.
- The case involved sharing Unpublished Price Sensitive Information (UPSI) related to a merger during December 2021 to April 2022.
- Source: Economic Times
4) SEBI Fines Investment Advisory Firm ₹19 Lakh
- SEBI fined Sai Proficient Research ₹19 lakh for regulatory violations, including misleading investors and colluding with an unregistered entity, SSPFS, to offer illegal advisory services.
- The firm’s defense was dismissed as a “cock and bull story” after investigations revealed ₹4 crore in fraudulent transactions across linked accounts.
- Source: Economic Times
B) Automobile:
1) Nissan-Honda Integration Could Boost Nissan’s Credit: Moody's
- Moody's suggests Nissan's credit profile may improve more than Honda's following their integration, enhancing financial synergies and operational efficiencies.
- The partnership is expected to strengthen Nissan's competitive position compared to Honda.
- Source: ANI News
C) Pharma:
1) Akums Drugs Shares Surge After ₹1,760 Crore MOU
- Akums Drugs & Pharmaceuticals shares jumped 4.7% to ₹626 after signing a ₹1,760 crore agreement with a global pharma company.
- The stock, specializing in contract development and manufacturing (CDMO), has a market cap of ₹9,411.37 crore.
- Source: Trade Brains
D) Telecommunication:
1) DoT Reduces Spoofed International Calls by 90%
- The Department of Telecommunications' system blocked 90% of spoofed calls since October 2024, reducing daily fraudulent calls from 13.5 million to 6 lakh by December.
- The system prevents cybercrimes involving fake caller IDs, often used for scams like impersonation and fraud.
- Source: CNBCTV
E) Agriculture:
1) Drop in Nano Urea Sales Worries Fertilizer Industry
- Nano urea sales fell 43.2% in FY24, with 21.3 million bottles sold, compared to 37.5 million in FY23, despite a 59% rise in production capacity to 269.3 million bottles.
- The decline raises concerns about the product's appeal among farmers, launched amid high expectations.
- Source: Business Standard
F) Energy:
1) Natural Gas Production Drops, LNG Imports Surge
- India’s gross natural gas production declined by 2.3% in November 2024, as per Petroleum Planning and Analysis Cell (PPAC).
- Meanwhile, LNG imports rose sharply by 25.1%, highlighting increasing reliance on imported gas.
- Source: Economic Times
2) India and Kuwait to Strengthen Energy Ties and Explore Renewable Cooperation
- India and Kuwait agreed to elevate their bilateral relationship to a "Strategic Partnership," with a focus on strengthening energy ties.
- The nations will also explore collaboration in the renewable energy sector.
- Source: Construction World
3) Indian State Refiners May Buy Mideast Spot Oil to Replace Russian Shortfall
- Indian state refiners, facing reduced Russian crude supply, are considering sourcing oil from the Middle East to compensate for the shortfall.
- The shortfall, estimated at 8-10 million barrels for January, is attributed to rising Russian domestic demand and commitments under the OPEC pact.
- Source: Economic Times
G) FMCG:
1) Inflation Hits FMCG Industry, Urban Growth to Slow in H1/2025: Kantar Report
- FMCG volume growth dropped to 4.3% in August-October 2024, down from 6.4% in the same period last year, with urban growth slowing to 4.5% from 6.9% in 2023.
- Average household FMCG spending increased by 13% to ₹6,761 per quarter, while per KG FMCG prices rose by ₹4 from May-July to August-October 2024. Urban growth is expected to remain slow due to persistent inflation.
- Source: YourStory
2) Rising Wheat Flour Prices Hit FMCG Sector, Rural Growth Slows
- Wheat flour (atta) prices hit a 15-year high, reducing consumption and contributing to slower growth in rural FMCG sales, which grew by only 4% in the October quarter, slower than urban growth of 4.5%.
- Despite government efforts to curb food inflation, atta prices remain elevated, with the all-India average retail price at ₹40 per kg in December, impacting rural families' budgets.
- Source: NDTV Profit
H) IT
1) Depreciation of Rupee Boosts Indian IT Sector
- The recent rupee depreciation against the dollar benefits India's IT sector, which earns 50-60% of its revenue from the US, with every 1% depreciation leading to a 0.5% revenue increase and a 1.5% rise in profit.
- Source: Communications Today
Indian Economy and Government Initiatives:
- India's Finance Ministry is considering removing customs duty exemptions on certain imported components, like raw materials for insulin production and LED parts, to promote local manufacturing as part of the "Make in India" initiative.
- The review of these exemptions, set to expire by September 2025, aims to strengthen domestic production, enhance value addition, and align with global value chains, with inputs from industry stakeholders being considered.
- Top economists have urged the government to reduce income tax rates, rationalize customs tariffs, support exports, and focus on skills development and agricultural productivity in Budget 2025, with employment generation and data quality emphasized by Prime Minister Modi.
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