News Nook: Dec 3, 2024

 Indian Sector Specific News:

A) BFSI:

1) SBI Report Highlights Banking Sector's Credit Growth Challenges

• SBI reports a sharp decline in incremental credit (₹9.3 lakh crore, YTD 5.3%) and deposits (₹13.7 lakh crore, YTD 6.7%) as of November 15, 2024, compared to last year’s robust growth.
• Credit growth slowed across sectors, with sharp drops in housing and consumer durables, while chemicals and construction showed some resilience.
• Source: Financial Express

2) NBFC Asset Growth to Moderate Amid Regulatory and Quality Challenges

• NBFC AUM growth is expected to slow to 15-17% over the next two years, compared to 23% in the last fiscal, due to regulatory compliance and asset quality concerns.
• Housing finance companies targeting the affordable segment may grow faster at a CAGR of 22-23%, while vehicle finance growth is projected to remain healthy at 15-16%.
• Source: Financial Express

3) Shivraj Singh Chouhan Pushes for 33% Women's Reservation in Parliament

• Madhya Pradesh CM Shivraj Singh Chouhan advocates implementing 33% reservation for women in Parliament and State Assemblies during a rally in Ujjain.
• He also highlighted schemes for women's empowerment, like free LPG connections under the Ujjwala Yojana.
• Source: Economic Times

4) SEBI Probes Whistle-blower Claims of Misconduct in ICICI Securities Merger

• SEBI is investigating allegations from a whistle-blower that Bank of America Securities issued a rushed fairness opinion to favor ICICI Bank in the ICICI Securities merger, potentially compromising minority shareholders’ interests.
• The whistle-blower alleges ethical violations, insufficient evaluation time, and evidence of collusion, with SEBI following leads that could impact the merger's validity.
• Source: Moneylife

5) Adani Group Entities File for Settlement Over SEBI Violations

• Adani-linked entities, including Adani Enterprises and Adani Ports, filed settlement applications with SEBI over alleged public shareholding violations, following a show cause notice issued in September 2024.
• The settlement proposals involve figures like Vinod Adani and focus on procedural resolutions without admission of guilt, while SEBI's investigation into the matter continues.
• Source: Economic Times

6) India's FDI Inflows Rise 45% to $29.79 Billion in Apr-Sep FY25

• Foreign direct investment surged 45% year-on-year to $29.79 billion in April-September FY25, with notable growth in services, computer, telecom, and pharma sectors.
• Total FDI, including equity inflows and reinvested earnings, increased by 28% to $42.1 billion, as per DPIIT data.
• Source: Business Standard

7) GST Collection Rises by 8.5% to Over ₹1.82 Trillion in November

• Gross GST revenue grew 8.5% year-on-year to ₹1.82 lakh crore in November, driven by a 9.4% rise in domestic transactions and a 6% increase in import-related taxes.
• Net GST collection after refunds (₹19,259 crore) rose by 11% to ₹1.63 lakh crore. October's GST collection was ₹1.87 lakh crore, the second-highest ever, with April 2024 holding the record at ₹2.10 lakh crore.
• Source: Business Standard

B) Automobile:

1) Automobile Sales in November 2024

• Mahindra & Mahindra's sales rose 12% YoY to 79,083 units, driven by strong utility vehicle and tractor demand.
• Bajaj Auto's sales grew 5%, led by exports, while Ashok Leyland saw a 1% rise with heavy commercial vehicle growth offsetting light vehicle decline.
• Source: Jagran

C) Pharma:

1) MSMEs Embrace Revised Schedule M for Drug Quality

• Indian Pharma MSMEs are proactively adopting the Revised Schedule M guidelines to enhance drug quality by establishing robust Pharmaceutical Quality Systems (PQS) and integrating Quality Risk Management (QRM).
• The workshop on ‘Vendor Validation and Audit’ emphasized GMP compliance, equipment qualification, and strengthening India's global pharmaceutical position.
• Source: PharmaBiz

D) Agriculture:

1) Smallholder Agriculture Key to Achieving Viksit Bharat Goal

• PK Mishra stressed that addressing smallholder agriculture is essential for achieving a developed India (Viksit Bharat) by 2047, highlighting its role in poverty reduction, especially in rural areas.
• Despite agriculture’s declining share in GDP and workforce, Mishra emphasized that promoting agricultural growth can reduce income inequality and improve rural employment.
• Source: Business Standard

E) Telecommunication:

1) Ananth Technologies Becomes First Private Indian Satellite Operator

• Ananth Technologies is now authorized to develop and operate a Geostationary Orbit (GSO) communication satellite, becoming the first private Indian company with this opportunity.
• The satellite will use Ka-band frequencies to provide high-speed communication, bridging the connectivity gap in underserved rural areas across India.
• Source: FE Online

F) Energy:

1) O2 Power Signs 100 MW Renewable Energy PPA with East Central Railways

• O2 Power has signed a Power Purchase Agreement (PPA) for 100 MW of renewable energy with East Central Railways, marking a significant step in India’s transition to sustainable energy.
• The agreement aims to supply renewable power to the railway division, supporting its green energy goals.
• Source: Economic Times

2) Peak Power Demand Projected to Rise 5.4-7.8% Between December and February

• Peak power demand is expected to increase by 5.4-7.8% year-on-year, reaching 230 GW in December, 237 GW in January, and 234 GW in February.
• The government is confident that the existing capacity will meet the increased demand, with steps in place to avoid any shortfalls.
• Source: Economic Times

3) Cochin Shipyard in Talks for $550 Million Jack-Up Rig Deal with ONGC

• Cochin Shipyard is in advanced discussions with ONGC for a potential $550 million order to build two jack-up rigs.
• The deal represents a significant step for Cochin Shipyard, India's largest commercial shipbuilder, in expanding its operations in the oil and gas sector.
• Source: Construction World

G) IT:

1) Experts Stay Optimistic on Indian Stock Market Despite Q2 GDP Decline

• India's GDP growth for Q2FY25 was 5.4%, the lowest in nearly two years, but experts remain optimistic due to a strong private consumption recovery.
• Analysts recommend focusing on sectors like consumer goods and financials.
• Source: LiveMint

H) FMCG:

1) Govt Implements Advanced Tech for Better Monitoring of Fuel Outlets

• The government has launched a robust monitoring system for retail fuel outlets, using advanced technologies like OTP-based calibration and digital payment systems for real-time data tracking.
• The initiative, developed under the Legal Metrology Act, 2009, aims to enhance oversight, protect consumers, and ensure a transparent fuel market.
• Source: Business Standard

 Indian Economy and Government Initiatives:

• India's GDP growth slowed to 5.4% in Q2 FY25, below expectations, leading economists to lower their full-year growth projections. 
• Corporate earnings also showed the weakest growth in years, with many top companies reporting slower revenue and profit growth.
• India is aiming for developed nation status by 2047, despite being surrounded by crisis-hit neighbors like Afghanistan, Bangladesh, Sri Lanka, and China.
• With initiatives like ‘Make in India’ and ‘Digital India,’ India is strategically cushioning itself against external shocks while also supporting countries like Bangladesh and Sri Lanka during financial crises.
• The RBI’s Monetary Policy Committee will meet this week to address India’s slowing growth, persistent inflation, and liquidity pressures. Despite global rate cuts, the RBI is unlikely to reduce rates yet due to high inflation, opting instead for liquidity management measures like CRR cuts or open market operations.