News Nook: Jan 6, 2025

Indian Sector Specific News:

A) BFSI:

1) Financial Services in India Set for Significant Growth

India's stock market now has 10 crore investor accounts, with potential to triple, surpassing the population of the US and Europe’s investors. Household savings in physical assets like gold (24,000 tonnes) and real estate dominate but need a shift to financial assets for economic growth.
An RBI paper highlights that lower unemployment boosts household investments in financial assets like deposits, mutual funds, and equities by increasing job security and risk appetite.
Source: TNIE

B) Automobile:

1) Automotive Leasing in India Set for Growth

ORIX Corporation India predicts automotive leasing will grow from 2% to 7-8% of total vehicle sales in 5-7 years, driven by younger professionals and increased travel. Profits are expected to rise 30-35% this fiscal year.
Vehicle retail sales in India increased by 9% YoY in 2024, exceeding 26 million units, with passenger vehicle sales reaching 43 lakh.
Source: Economic Times

C) FMCG:

1) MCG Q3 Results Preview

Weak urban demand and delayed winter are expected to reduce FMCG volumes, but price hikes may help boost revenues.
HDFC Securities notes subdued macroeconomic conditions and inventory corrections as key challenges for the sector.
Source: Business Standard

2) Adani Wilmar Expands FMCG Portfolio

AWL is leveraging its dominant edible oil business and distribution network to drive growth in its FMCG segment, following ITC's strategy.
The FMCG business saw 24% YoY volume growth in Q3, increasing its contribution to overall volumes to 20% and revenues to 9%.
Source: Business Standard

D) Telecommunication:

1) Enhanced Telecom Infrastructure for Maha Kumbh Mela 2025

Over 318 km of optical fiber and 328 new towers have been deployed in Prayagraj, with 575 new and 1,462 upgraded BTS units ensuring strong connectivity for millions of visitors.
Mela-specific upgrades include 78 mobile transportable towers, 150 outdoor small cells, disaster management centers, and 53 help desks for public assistance.
Source: ddnews

E) Agriculture:

1) Agri Credit Growth Expected to Surpass 13% in FY25

Agricultural credit may grow over 13%, reaching ₹27-28 trillion, reflecting reduced reliance on informal credit sources and enhanced formalization.
FY24 credit disbursements of ₹25.1 trillion exceeded the ₹20 trillion target by 25%, with challenges like inaccessible land records still impacting growth.
Source: Business Standard

F) Energy:

1) Oil Prices Reach Highest Levels Since October

Brent crude rose to $76.66 per barrel, and U.S. WTI climbed to $74.18, driven by cold weather and China's economic stimulus boosting global fuel demand.
Both oil benchmarks saw increases of 0.2% and 0.3%, respectively, marking their highest prices since October.
Source: Economic Times

G) IT:

1) Indian IT Sector Set for Growth in 2025

The Indian IT sector is expected to grow in 2025 as the economic situation improves, with lower US interest rates and a friendly business environment.
Factors like a stronger dollar and better consumer spending are likely to help Indian IT companies perform well in the coming year.
Source: Investing

H) Infrastructure:

1) Indian Realty Attracts $6.5 Billion in Investments in 2024

Indian real estate saw $6.5 billion in institutional investments in 2024, showing a 22% increase from $5.4 billion in 2023.
The growth in investments highlights the rising interest in India's real estate market.
Source: Construction World

Indian Economy and Government Initiatives:

The upcoming Union Budget is expected to boost exports of value-added products by offering competitive export credit rates, with a focus on job creation and shifting away from labour-intensive goods.
The Budget is expected to address farmer distress with measures like lower loan interest rates, increased PM-KISAN support, and focus on climate-resilient farming and biofuels.
CII suggests in the Budget 2025 that the government focus on a National Employment Policy, implementing labor codes, and increasing female workforce participation to boost job generation.

Indian Stock Market Update:

Indian markets saw a sharp decline on January 6, with the Sensex dropping 1,258 points (-1.59%) and Nifty falling 388.70 points (-1.62%).
All sectoral indices ended in the red, with PSU Bank down 4%, and metal, realty, and energy sectors also losing around 3%.
Nifty could face further consolidation within the range of 23,500 to 24,200, as it failed to sustain above the 200-day moving average.