News Nook: Dec 30, 2024

Indian Sector Specific News:

A) BFSI:

1) India’s Digital Services Exports Hit Record High in October

• Continuous investments in digital infrastructure like data centers and high-speed internet, along with policy support, helped India's services exports reach a historic $34.31 billion in October 2024, a 22.3% rise from October 2023.
• India's digital services exports have grown from $30 billion in 2005 to $257 billion in 2023, with strong growth post-Covid, making India a global leader in digitally delivered services.
• Source: Business Standard

2) FinX Secures $6 Million to Expand and Upskill Graduates

• FinX, a corporate training platform for the BFSI sector, raised $6 million in seed funding to expand into tier-two cities and equip graduates with industry-specific, job-ready skills.
• The company plans to train 15,000 students across 12 states in 2024, aiming to impact 100,000 students annually within five years.
• Source: CNBC-TV18

3) SEBI Extends Suspension of Commodity Derivative Trading

• SEBI has extended the suspension of trading in derivatives of key commodities like wheat, mustard seeds, and crude palm oil until January 31, 2025, aiming to curb price fluctuations.
• The ban, first imposed in December 2021, has been extended yearly, supported by traders to prevent market manipulation by speculators.
• Source: FNB News

4) Stockbrokers Can Request ITRs to Monitor PMLA Compliance

• Stockbrokers may ask clients for updated Income Tax Returns (ITRs) to verify if trading activity aligns with declared income and to prevent money laundering under SEBI guidelines.
• Discrepancies, such as low income with high trading volumes, can trigger investigations, and violations of the PMLA could lead to penalties, including jail terms of up to 7 years.
• Source: ET Online

5) Venture Capital Investments in India Surge in 2024

• VC investments in India reached $16.8 billion across 888 deals from January to November 2024, a 14.1% increase in value and a 21.8% rise in deals compared to 2023, led by tech sector funding at $6.5 billion.
• Experts predict more IPOs, later-stage funding, and growth in areas like green energy, fintech, and deep tech in 2025.
• Source: BILKUL Online

B) Pharma:

1) Senores Pharmaceuticals Makes a Stellar Market Debut

• Shares listed at ₹593.70, a 51.84% premium to the issue price; reached a high of ₹609 and a low of ₹573 on the BSE with 5.77 lakh shares traded.
• The IPO, with a price band of ₹372-391 per share, raised ₹500 crore via a fresh issue and ₹82.11 crore via an offer for sale, achieving a subscription rate of 93.69 times. Proceeds are earmarked for manufacturing facilities, debt repayment, working capital, and investments.
• Source: Business Standard

C) Telecommunication:

1) VIL Welcomes Government’s Bank Guarantee Waiver

• Vodafone Idea Limited (VIL) hailed the Indian government’s decision to waive Bank Guarantees (BG) for spectrum purchases as a major relief for telecom operators, enhancing investments in 4G and 5G infrastructure.
• Previously, VIL had to provide BGs of about ₹24,800 crore for each spectrum installment, creating financial strain. The waiver applies retroactively to spectrum auctions from 2012 to 2021 under the telecom reform package.
• Source: TNIE

D) Energy:

1) India to Boost Power Generation, Transmission Infrastructure for 24x7 Power by 2025

• India plans to establish additional coal-fired and hydro-power plants while enhancing transmission infrastructure to ensure 24x7 power supply nationwide by 2025.
• The initiative is part of the government’s commitment to meeting growing energy demands and improving reliability in power delivery systems.
• Source: Economic Times 

2) BPCL to Invest $2.9 Bn in Mozambique and Brazil Exploration

• Bharat Petroleum Corporation Limited (BPCL) will invest ₹25,000 crore (~$2.9 billion) over the next three years in exploration and production projects in Mozambique and Brazil.
• This move highlights BPCL's commitment to expanding its global upstream portfolio and ensuring long-term energy security.
• Source: Construction World

E) Agriculture:

1) India Set for Record Foodgrain Production in 2025

• India is expected to reach a new peak in foodgrain output with a record 164.7 million tonnes of kharif (summer) production for the 2024-25 crop year, boosted by favorable monsoon rains.
• While foodgrain production is promising, challenges remain in pulses and oilseeds, and potential heat waves could impact the winter wheat harvest.
• Source: Business Standard

2) Servotech Power Shares Rise After Securing UPNEDA Order

• Servotech Power Systems rose 4.18% to Rs 168.10 after winning a contract to supply 1,100 grid-connected agriculture pumps under the KUSUM Component C-1 Scheme from UPNEDA.
• Valued at Rs 31 crore, the project will involve the manufacturing, installation, and maintenance of solar-powered pumps across Uttar Pradesh, contributing to renewable energy goals.
• Source: Business Standard

F) IT:

1) Indian IT Sector Prepares for Growth in 2025 Amid AI Investments

• The Indian IT sector is cautiously optimistic for 2025, buoyed by AI investments and increased tech spending, with predictions for growth and profitability recovery by late 2025 or FY26.
• Industry focus is shifting towards AI, machine learning, and cloud services, with increased demand for specialized roles. The IPO market is also expected to remain active, reflecting strong investor interest in tech startups.
• Source: TNIE

Indian Economy and Government Initiatives:

• Uday Kotak emphasizes economic growth, eliminating the current account deficit, investing in defense, fiscal consolidation, and avoiding protectionism to ensure competitiveness. He also calls for less regulation and free markets.
• Kotak urges action to reduce pollution in cities and highlights the importance of maintaining clean urban environments for long-term prosperity.

Indian Stock Market Update:

• The Sensex dropped 450.94 points (0.57%) and the Nifty 50 fell by 168.50 points (0.71%) on December 30, 2024, due to FII outflows, weak global cues, and a depreciating rupee.
• The Nifty Auto index saw the biggest decline, dropping nearly 2%, followed by losses in sectors like banking, energy, infrastructure, and IT.
• Defensive sectors like pharma and IT managed to buck the trend, with pharma gaining 1.01%.
• Market sentiment remains fragile, with volatility increasing as FII selling continues, while investors await upcoming earnings and policy announcements for direction.