News Nook: Dec 28, 2024

Indian Sector Specific News:

A) BFSI:

1) Women’s Financial Inclusion and Insurance Challenges

• Government schemes like Jan Dhan Yojana and Jan Suraksha have increased women’s access to financial services, but many women still lack the benefits.
• Savings accounts help include women in finance, but challenges like insurance claim processes and lack of persistence remain barriers.
• Source: Business Standard

2) SBI General Insurance Partners with Abhyudaya Co-op Bank

1. SBI General Insurance has teamed up with Abhyudaya Co-operative Bank to offer the bank’s customers a wide range of insurance products, including motor, health, home, travel, and cyber insurance.
2. The partnership aims to enhance customer satisfaction and expand access to financial and insurance solutions for communities served by the bank.
3. Source: SMEStreet

3) SEBI Allows ICEX to Exit Exchange Business

1. SEBI revoked the recognition of Indian Commodity Exchange Ltd. (ICEX), formally approving its voluntary exit from the exchange business after fulfilling regulatory requirements.
2. ICEX, which was derecognized in 2022 due to non-compliance with minimum net worth and infrastructure standards, assured SEBI of no undisclosed liabilities and accepted responsibility for future financial claims.
3. Source: LiveMint

4) SEBI Clarifies Rules on Share Transfers and Ownership Changes

1. SEBI stated that share transfers among immediate relatives (spouses, parents, siblings, and children) or inheritance will not count as a change in control for intermediary firms like investment advisors and research analysts.
2. Ownership changes in proprietary firms via inheritance and partnerships with only two partners require SEBI approval and fresh registration, ensuring regulatory compliance.
3. Source: LiveMint

B) Automobile:

1) Osamu Suzuki, Father of India's Automotive Revolution, Passes Away at 94

1. Osamu Suzuki, the chairman of Suzuki Motor Corporation, passed away on December 25, 2024, at the age of 94 due to lymphoma. He is credited with revolutionizing the Indian automobile market by partnering with Maruti Udyog in 1981 to launch the Maruti Suzuki 800, which sparked a car sales boom in India.
2. His vision and leadership transformed India’s automotive industry, leading to Maruti Suzuki capturing over 40% of the market share. Prime Minister Narendra Modi and Maruti Suzuki’s chairman, R.C. Bhargava, praised his profound impact on the sector, with Bhargava calling him a key figure in India's automotive transformation.
3. Sources: TNIE

C) FMCG:

1) Urban FMCG Demand Recovery Delayed, Growth Driven by Premium Products

• The FMCG industry expects urban demand to fully recover only by mid-2025, with premium products driving growth in bigger cities as consumers seek high-quality goods despite inflationary pressures.
• Rural areas are seeing recovery, but urban discretionary spending remains weak due to high inflation, with some calling for policy support to boost mass consumption. 
• Source: TOI

D) Agriculture:

1) Delayed Winter Rains to Benefit Rabi Crops

• Winter rains across northern and central India are expected to benefit standing rabi crops, especially wheat and mustard, which have been affected by a dry spell since October.
• Wheat sowing this season has matched normal levels, with 31.22 million hectares under cultivation. Experts suggest the rains could save irrigation cycles for wheat​.
• Source: Business Standard

E) IT:

1) IT CEO Salaries Rise 160%, Freshers See Just 4% Increase

• Salaries of top executives at India's leading IT firms increased by 160% in the last five years, while freshers' salaries grew by only 4%. CEOs' median pay in FY24 was close to Rs 84 crore, while freshers earned between Rs 3.6 lakh and Rs 4 lakh.
• Critics highlight the growing pay disparity, noting the widening gap between CEO pay and freshers' compensation, which may impact economic consumption. Experts suggest raising fresher salaries to Rs 5 lakh annually​.
• Source: Trak

2) India's Electronics Industry Aims for USD 500 Billion Output by 2030

• India’s electronics industry plans to quintuple its output to reach USD 500 billion by 2030, bridging a USD 400 billion production gap. Mobile phones contribute 43% of current production, with sectors like consumer electronics and auto electronics growing.
• This growth is expected to create 12 million jobs by 2027, including roles for engineers, ITI-certified professionals, and specialists in AI, ML, and data science.
• Source: TOI

F) Pharma:

1) Akums Signs Rs 1,760 Crore Contract to Supply Pharma Products to Europe

• Akums has secured a long-term contract worth Rs 1,760 crore to supply pharmaceutical formulations to a global partner in Europe, aligning with its goal to expand in regulated markets.
• The company will receive Rs 100 million for product development and site approval, and will manufacture multiple oral liquid formulations for the partner to market across Europe​.
• Source: Economic Times

G) Energy:

1) Risks Increasing for Middle East Crude Oil Shipments

• The risks to crude oil flows from the Middle East are rising due to increased geopolitical tensions, according to Rapidan Energy Group.
• This instability could lead to fluctuations in global oil prices and affect countries that rely on Middle Eastern oil sources. 
• Source: The Economic Times

Indian Economy and Government Initiatives:

• The government has partially attributed the 5.4% economic growth in July-September to the Reserve Bank of India's (RBI) tight monetary policy, which affected demand. It hopes for better growth in the second half of the fiscal year as restrictions ease.
• Economists have downgraded growth forecasts for FY2024-25 to 6.5%, and anticipate potential rate cuts by the new RBI governor to support recovery.
• India will implement mandatory Multi-Factor Authentication (MFA) for all GST taxpayers and enforce new E-Way Bill restrictions, requiring documents to be under 180 days old for generation, aiming to improve security and reduce fraud.
• Thailand will expand its e-Visa system to all countries, making it easier for international travelers, including Indians, to apply online. The US Embassy in India will allow one free rescheduling of non-immigrant visa appointments.

Bonus Briefs:

• Central bank policies, particularly from the U.S. Federal Reserve, along with fluctuations in crude oil prices and concerns over economic stability in Europe and China, will significantly influence global stock market trends in 2025.
• Crude oil prices and the global economic growth pace, especially in the Middle East, will play a crucial role in shaping the market outlook for 2025.