News Nook: Jan 28, 2025

 Indian Sector Specific News:

A) BFSI:

1) Banking and NBFC Stocks Rally on RBI Liquidity Infusion

• RBI injected Rs 1.5 trillion into the banking system through various measures, including bond purchases and repo auctions, boosting banking and NBFC stocks by nearly 2%.
• While the move is positive for loan growth and profitability, Nomura suggests the liquidity deficit needs to move to neutral for long-term growth.
• Source: Financial Express

2) Supreme Court Rejects Plea for SEBI Report on Adani-Hindenburg Case

• The Supreme Court of India dismissed a lawyer's application seeking SEBI’s investigation report on the allegations made by Hindenburg Research against the Adani Group.
• The court upheld a prior order from August 2024, which had declined to register a petition demanding a strict timeline for SEBI’s investigation into the matter.
• Source: Livemint

B) Pharma:

1) PHARMEXCIL Strengthens India-UAE Pharma Partnership

• PHARMEXCIL is working to enhance India-UAE collaboration in pharmaceuticals by focusing on drug development, vaccines, and Active Pharmaceutical Ingredients (APIs).
• PHARMEXCIL will showcase Indian pharmaceutical excellence at the India Pavilion during Arab Health 2025 in Dubai, with 65 leading companies participating.
• Source: Express Pharma

C) FMCG:

1) FMCG Companies Reassess Loyalty Strategies to Strengthen Customer Engagement

• FMCG companies are shifting focus to tailor loyalty programmes for deeper customer connections, moving beyond traditional methods like rebates and discounts. Brands like Unilever, L'Oréal, and Reckitt Benckiser are leveraging direct-to-consumer sales and personalised rewards to boost engagement.
• Emphasis is on innovation and personalisation, using AI and data analytics to create unique experiences. Sustainability and convenience are key priorities, with examples like Hellmann’s Meal Reveal tool and Nestlé’s eco-focused rewards driving customer loyalty.
• Source: Euromonitor

D) Agriculture:

1) Budget 2025: Key Agriculture Priorities to Address India's Farming Challenges

• India’s agricultural sector faces productivity gaps compared to global leaders, with challenges in seed access, mechanization, livestock productivity, and post-harvest management. The upcoming Budget should focus on enhancing access to quality seeds, improving livestock productivity, subsidizing feed and fodder, and promoting mechanization for smallholders to increase farm output and income.
• Initiatives like reducing post-harvest losses, boosting high-value exports, and building global awareness about India’s agricultural produce are essential to improve competitiveness and income for farmers, supporting the growth of India’s agri-sector.
• Source: CNBC TV18

2) IFAD Associate Vice President Meets Agriculture Secretary to Discuss Collaborative Projects and Priorities

• Shri Donal Brown, Associate Vice President of IFAD, commended India’s pivotal role as a founding member and its strong partnership with IFAD, highlighting ongoing projects in the North Eastern and Himalayan regions. These projects focus on building climate-resilient agricultural value chains and empowering marginalized communities.
• Shri Devesh Chaturvedi, Agriculture Secretary, emphasized the Ministry’s priorities, including food security, climate-resilient agriculture, and improving farmer incomes. He stressed the need for sustainable Farmer Producer Organizations (FPOs), the promotion of agricultural entrepreneurship, and innovative farming solutions, aligning with IFAD’s support for these initiatives.
• Source: PIB

E) Energy:

1) IGX to Launch Long-Duration Gas Contracts in February for Greater Flexibility

• The Indian Gas Exchange (IGX) is launching new 3-6 month gas contracts starting February 3, 2025. 
• These contracts will allow buyers more flexibility in how they buy natural gas. They can choose between different pricing options, including one linked to international gas prices. This move aims to make India's gas market more transparent and efficient.
• Source: Economic Times

2) Indian Oil’s Caution on Russian Oil Amid US Sanctions

• Indian Oil hasn't contracted any new Russian oil since January 10, 2025, due to concerns over US sanctions affecting the supply chain and is looking for "clean" deals.
• Despite sanctions, Indian Oil believes there is enough global oil supply and will continue buying oil from sources offering competitive prices.
• Source: Economic Times

F) IT:

1) Nasscom Seeks Support for IT Sector Growth in Budget 2025

• Nasscom urges the government to create a deep tech fund for AI, quantum computing, and blockchain startups and simplify rules to boost innovation in the IT sector.
• The organization also emphasizes the growth of Global Capability Centres (GCCs) in India, which are vital for employment and innovation in the IT industry.
• Source: CNBCTV18

 Indian Economy and Government Initiatives:

• The Indian government plans to stick to its borrowing and spending targets, with an expected fiscal deficit of 4.5% of GDP for the upcoming year, slightly tighter than last year’s 4.8%.
• Economists expect possible tax cuts to boost consumption, but the government will continue to prioritize spending on agriculture and infrastructure.
• Industry players call for policies to boost local manufacturing, reduce GST on consumer durables, and provide financial incentives for PLI schemes to stimulate consumer spending.
• Support for sustainable manufacturing, innovation in green technologies, and tax exemptions for sectors like drones and GIS are also key demands.

 Indian Stock Market Update:

• The Sensex rose by 535 points (+0.71%) to 75,901.41, and the Nifty increased by 128.1 points (+0.56%) to 22,957.25, ending a 2-day losing streak.
• Sector-wise, banking, auto, and real estate indices saw gains, while capital goods, power, metal, FMCG, healthcare, and IT sectors experienced declines.
• Despite a relief rally, market sentiment remains cautious due to global uncertainties and disappointing domestic economic indicators, with mid- and small-cap stocks continuing to fall.

 Bonus Briefs:

• Experts predict increased geopolitical uncertainty in 2025, particularly with U.S.-China tensions and potential trade wars under President Trump.
• Global inflation is expected to decrease, with interest rate cuts projected for major economies, including the U.S. and the Eurozone.
• The global economy is expected to maintain stable growth, with global GDP forecasted between 2.7% and 3.2%.
• Advancements in AI and autonomous technology are anticipated to drive significant change, with AI infrastructure projects like the Stargate Project gaining momentum.