News Nook: Jan 27, 2025

 Indian Sector Specific News:

A) BFSI:

1) India’s Growing Data Centre Demand

• India’s data centre market is rapidly expanding, with 407 MW of IT capacity already used and 191 MW added across major cities due to rising demand for cloud computing, AI, e-commerce, and digital transformation.
• The demand is projected to reach 450 MW of IT capacity in 2025, with a supply increase of 600 MW, supported by the rise of 5G and mobile applications in both large and smaller cities.
• Source: IBEF

2) Infosys Files Counter-Suit Against Cognizant

• In August 2024, Cognizant sued Infosys, claiming it stole trade secrets related to healthcare insurance software, but Infosys denied the allegations and filed a counter-suit.
• Infosys accuses Cognizant of anti-competitive practices, including poaching key executives and hindering the launch of Infosys Helix by delaying development.
• Source: Live Mint

3) No Extension for Madhabi Buch as SEBI Chief

• Madhabi Puri Buch’s tenure as SEBI Chairperson will conclude on February 28, 2025, with the Finance Ministry seeking applications for her successor.
• Unlike her predecessors, Buch will not receive an extension, and the new SEBI Chief will face significant challenges in managing the financial landscape and maintaining credibility.
• Source: Business Today

B) Automobile:

1) 19% Growth in Automobile Exports in 2024

• India’s automobile exports grew 19% in 2024, reaching 50,98,810 units, driven by strong demand from emerging markets like Latin America and Africa.
• Two-wheeler exports rose 23% to 39,77,162 units, with motorcycles growing by 24%, while passenger vehicle exports grew 10% and utility vehicles surged by 33%.
• Source: Business Standard

C) Pharma:

1) Odisha to Launch Exclusive Pharma Policy to Boost Industry

• Odisha is set to release its Pharma Policy 2025, aiming to transform the state into a pharmaceutical powerhouse in eastern India, with a pharma CEOs' conclave scheduled in Bhubaneswar in three months.
• The policy will focus on setting up a pharma park in a special economic zone (SEZ) and attracting pharmaceutical companies, with support from leading industry associations and academic communities.
• Source: Pharmabiz

D) FMCG:

1) Budget 2025: Key Sectors to Watch

• The Budget will likely focus on infrastructure projects like roads, metro, railways, defence, and green technologies, with a capital spending boost of 15-17%.
• The government may expand the PLI scheme and focus on creating more jobs and investment-driven growth.
• Source: Outlook Business

E) Agriculture:

1) Govt Plans Direct Farm Sales to Boost Farmer Income

• Agriculture Minister Shivraj Singh Chouhan announced a model enabling farmers to sell directly to consumers, reducing middlemen and maximizing their income.
• The government is committed to supporting farmers through MSP procurement, technology promotion, natural farming, and crop diversification.
• Source: Economic Times

F) Energy:

1) India’s Crude Oil and Petroleum Product Output Increases in December

• India's crude oil production rose by 0.6% in December 2024, while petroleum product output grew by 2.9%, showing signs of improved energy sector performance.
• The growth highlights efforts to boost domestic energy production and reduce import dependency.
• Source: Economic Times

G) IT:

1) Budget 2025: Tech Sector Seeks Deep-Tech Fund and Policy Changes

• Nasscom urges safe harbour rule tweaks, SEZ reserve utilization, and a central deep-tech fund to boost India's startup ecosystem.
• Industry also calls for a grant framework for deep tech and tax deferment on ESOPs for employees of all DPIIT-recognized startups.
• Source: Business Standard

H) Infrastructure:

1) Budget 2025: Real Estate Seeks Tax Reliefs and Policy Reforms

• Real estate players seek lower GST on cement, home loan tax exemption increase to ₹5 lakh, infrastructure status, and affordable housing reforms to boost growth.
• Demands include easing REIT taxation, incentives for green buildings, and institutional financing for coworking spaces in non-metro cities.
• Source: CAclubIndia

Indian Economy and Government Initiatives:

• Government spending remains crucial, comprising 25-30% of GDP over three decades, with states accounting for 60% of total expenditures. Declining private consumption (55.8% of GDP in FY24) and low investment shift economic growth responsibility to government-led infrastructure and welfare programs.
• Fiscal deficit reduced from 9.5% of GDP in FY21 to 5.6% in FY24, but public debt and subsidies (3.6% of GDP) continue to strain finances.
• The 2025 Budget may include alternate funding methods for infrastructure, credit guarantee funds for agriculture, and PLIs for MSMEs in key sectors like textiles and electronics.
• Proposals also suggest introducing a green taxonomy for sustainability, a Disaster Pool for calamities, and reforms in affordable housing and education.

Indian Stock Market Update:

• The Indian stock market had a tough day, with Sensex falling by 824 points (-1.08%) to 75,366 and Nifty slipping 263 points (-1.14%) to 22,829. 
• The IT and media sectors were hit hardest, dropping by 3.4% and 4.7%, respectively. HCL Tech and Tech Mahindra led the losses, while ICICI Bank and Britannia Industries provided some relief with gains. A bearish sentiment prevailed across the board.