News Nook: Dec 26, 2024

Indian Sector Specific News:

A) BFSI:

1) India's Insurance Coverage Drops in FY24

• India's insurance penetration fell to 3.7% in FY24, marking a second consecutive decline, with life insurance at 2.8% and non-life insurance at 1%. Global insurance penetration rose to 7% in 2023.
• Life insurance premiums grew 6.1% to ₹8.3 lakh crore, led by private insurers (15.1% growth), while public insurers grew by only 0.2%.
• Source: Economic Times

2) Three Entities Settle AIF Rule Violation Case with SEBI

• Three entities paid ₹28.5 lakh to settle a case with SEBI for violating Alternative Investment Fund (AIF) rules.
• The settlement ends regulatory proceedings, with SEBI not pursuing further action.
• Source: Economic Times

3) REL Stock Surges Amid SEBI Approval and Restructuring

• Religare Enterprises Limited's (REL) stock rose 25% in a month, crossing ₹300 from ₹240 in November 2024, boosted by SEBI's approval for management and shareholding changes in Religare Broking Limited.
• Over the last year, the stock gained 42% and 130% in three years, while the Burman family's recent 5.27% stake acquisition at ₹235 per share reflects growing investor confidence.
• Source: CNBC TV18

B) Automobile:

1) Auto Industry Shifts Towards Sustainable Mobility

• The Indian auto industry is focusing on advanced technologies like EVs, autonomous driving, hybrids, biofuels, and CNG, with the Bharat Mobility Global Expo and Auto Expo set for January 2025 in Delhi-NCR.
• Automakers plan to showcase eco-friendly vehicles with diverse powertrains, catering to various customers, as sustainable mobility adoption gains pace in 2025.
• Source: Moneycontrol

C) Pharma:

1) India's Drug Regulation Needs Urgent Fix

• India's drug laws have issues like corruption and weak rules, risking the quality of medicines and public health. Experts suggest centralizing control and stricter inspections to improve safety.
• Cases like Ranbaxy show how fake data harms people. Stronger laws and better-trained inspectors are needed to stop such problems and maintain trust in Indian medicines globally.
• Source: The Leaflet

D) Telecommunication:

1) Government Acts to Stop Fraudulent International Calls

• A new system by the telecom department blocks fake international calls disguised as Indian numbers, reducing such calls from 1.35 crore to 6 lakh in a year.
• People are warned to stay cautious of calls from unfamiliar international numbers and report scams to the cybercrime helpline or official website.
• Source: Deccan Chronicle

E) Agriculture:

1) Government Launches 10,000 New Cooperative Societies

• Amit Shah inaugurated 10,000 PACS to support farmers in marketing organic products, dairy, and seeds, aiming for 200,000 such societies across India.
• PACS modernization includes micro ATMs, RuPay Kisan Credit Cards, and integration with 32 activities, boosting transparency and rural employment.
• Source: Hindustan Times

F) Energy:

1) India to Lead Global Oil Demand Growth Until 2035

• India will drive global oil demand, adding nearly 2 million barrels per day by 2035, while China's oil demand for transport declines due to EVs.
• This shift could create oversupply challenges for oil producers, with reduced oil demand for passenger cars projected by 2030.
• Source: Economic Times

2) BPCL Selects Andhra Pradesh for India's Last Greenfield Refinery Project

• Bharat Petroleum Corporation Ltd (BPCL) has chosen Andhra Pradesh for the country's final greenfield refinery project.
• The move marks a significant step in expanding India's refining capacity, contributing to its growing energy needs.
• Source: Economic Times

3) BPCL Wins NTPC Solar Project Bid, Set to Develop 150 MW Capacity

• BPCL emerged as the lowest bidder for NTPC’s solar power project, securing a 150 MW capacity.
• The project, with an investment of Rs 756 crore, is expected to generate Rs 100 crore annually from clean energy production.
• Source: Economic Times

Indian Economy and Government Initiatives:

• Economists and industry bodies have urged the government to reduce income tax rates, rationalize customs tariffs, and support exports in the 2025 Budget to boost economic growth and consumption.
• Key proposals include tax reforms, simplification of compliance, and the introduction of GST 2.0, alongside measures to control inflation and incentivize job creation.
• India's GDP is projected to grow at 6.5% in FY25 and FY26, despite challenges from weak private consumption, rising household debt, and reduced government spending.
• The slowdown in GDP growth is attributed to declining private consumption, low investment growth, and a sharp contraction in government investment expenditure.
• Indian banks have seen six consecutive years of profitability, with strong balance sheets and low NPAs, according to an RBI report.
• The Federal Reserve is advised to adopt clearer monetary-policy rules and better explain any deviations from them in the new year.

Indian Stock Market Update:

• Sensex ended flat at 78,472.48, while Nifty rose by 22.55 points, closing at 23,750.20 on December 26, 2024.
• Auto stocks like Adani Ports and Maruti Suzuki saw gains, while FMCG and media sectors experienced selling pressure.
• The market remained muted due to holiday breaks, FII outflows, and concerns over the depreciating rupee and US dollar strength.

Bonus Briefs:

• Europe's main stocks index, STOXX 600, rose by 0.2%, driven by gains in mining and energy stocks amid light trading volumes before the Christmas break.
• Trump’s economic war, focusing on tariffs against China, Canada, Mexico, and Europe, aims to maintain US economic dominance and prevent China’s high-tech development, leading to fears of a trans-Atlantic trade war and global economic disruption.
• China's growing manufacturing power poses a challenge to US hegemony, with its increasing role in global production and the potential for intensified economic warfare, possibly escalating into military conflict as both nations compete for dominance.