News Nook: Jan 2, 2025

Indian Sector Specific News:

A) BFSI:

1) Finance Ministry Urges Fast Resolution of Public Grievances

• The Finance Ministry has asked public sector banks and insurance companies to quickly resolve public grievances, focusing on customer satisfaction and quality of solutions.
• Senior officers are now required to review 20 resolved complaints each month to ensure proper resolution, following the Prime Minister's directions. 
• Source: Economic Times

2) SEBI Launches Simplified Compliance Framework for Listed Companies

• SEBI has introduced a new framework for listed companies, requiring governance filings to be submitted within 30 days after each quarter ends and within 60 days for year-end submissions.
• The framework also restricts auditors from performing certain services like internal audits and compliance management to maintain impartiality. 
• Source: Business Today

B) Automobile:

1) M&M Ranks 11th Among World's Most Valuable Automobile Manufacturers

• Anand Mahindra announced that Mahindra & Mahindra (M&M) is now the 11th most valuable automobile manufacturer globally.
• This achievement reflects the company's growth and success, as highlighted in Mahindra Group's New Year address to employees. 
• Source: DTNext

C) Pharma:

1) Sun Pharma Sells Stake in Japanese Arm to Zaza Industrial Holdings

• Sun Pharmaceutical Industries has sold its 100% stake in Sun Pharma Japan Technical Operations to Zaza Industrial Holdings K.K., Japan, for a nominal consideration of JPY 1.
• The transaction, signed on December 31, 2024, is expected to be completed by January 31, 2025, as part of Sun Pharma's strategy to streamline operations. 
• Source: Business Standard

D) Telecommunication:

1) Madras HC Issues Guidelines on Foreign Economic Offenders Traveling Abroad

• The Madras High Court has issued guidelines for trial courts on allowing foreign nationals facing economic offence charges to travel abroad, balancing individual rights and protecting the economy.
• The court approved Aircel founder C Sivasankaran's request to travel abroad, emphasizing the need for a balanced approach.
• Source: DTNext

E) Agriculture:

1) Agri and Allied Sector Expected to Grow 3.5-4% in FY25

• Agriculture Minister Shivraj Singh Chouhan forecasts a growth of 3.5-4% in the agriculture and allied sector for FY25, a significant rise from 1.4% in FY24.
• Chouhan highlighted rural welfare initiatives and emphasized efforts to ensure fair prices for farmers' produce. 
• Source: Business Standard

F) Energy:

1) India's Power Consumption Up 6% to 130.4 Billion Units in December

• India's power consumption increased by nearly 6% to 130.40 billion units in December 2024, compared to 123.17 billion units in December 2023.
• Peak power demand in December 2024 rose to 224.16 GW, with an expected peak of 270 GW in summer 2025. 
• Source: Economic Times

2) Upcoming Renewable Green Energy IPOs in 2025

• SJVN, ONGC Green Energy, NHPC, and NLC India Renewables are planning IPOs to raise funds for expanding their renewable energy projects.
• These companies are involved in hydropower, solar, wind, and green hydrogen, with plans to boost energy capacity significantly.
• Source: Investor Academy

G) IT:

1) 2025 Outlook for India's IT Services Sector

• India's IT sector is expected to grow in 2025, fueled by higher tech spending, increased hiring, and a rise in artificial intelligence deals and software investments.
• Despite challenges like inflation and macroeconomic uncertainties, IT exports are set to increase, with a recovery in the US market, and sector stocks show improvement after a period of underperformance.
• Source: Economic Times

2) IT Sector Faces Challenges Amid Economic and AI Risks: Digant Haria

• Digant Haria, from GreenEdge Wealth, is cautious about the IT sector, highlighting its expensive valuations compared to growth potential, and warns of possible market corrections.
• He also discusses broader economic concerns, including regulatory tightening, high interest rates, and asset quality deterioration, impacting the financial sector in 2025.
• Source: Economic Times

Indian Economy and Government Initiatives:

• India's unemployment challenge threatens its demographic dividend, with economists urging the 2025 budget to focus on labor-intensive industries, vocational training, and MSME support to create jobs amid slowing economic growth.
• Indian states' record borrowing of 4.73 trillion rupees in Q1 2025 may increase borrowing costs and pressure banking liquidity.
• Karnataka's agricultural sector faces distress with declining growth rates, requiring urgent stimulus and a long-term policy to support farmers.
• India's goods and services exports are expected to exceed $800 billion in 2024, with merchandise exports reaching $441.5 billion.

Indian Stock Market Update:

• Sensex rose by 1,436 points (1.83%) to 79,943.71, while Nifty gained 445.75 points (1.88%) to 24,188.65 on January 2, 2025.
• Eicher Motors was the biggest gainer, up 8.65%, while Sun Pharma was the biggest loser, down 0.63%.
• All sectoral indices ended in the green, with Nifty Auto leading the way, up 3.79%.

Bonus Briefs:

• Bond market expectations focus on potential interest rate cuts by the Federal Reserve, with investors closely watching rate adjustments in 2025.
• The travel sector, especially American Airlines, is poised for strong demand and growth in 2025, benefiting from a rebound in tourism and business travel.