News Nook: Jan 7, 2025

Indian Sector Specific News:

A) BFSI:

1) NSE Leads Asia in IPOs in 2024

• The NSE had 268 IPOs in 2024, raising ₹1.67 trillion (US$ 19.53 billion), including 90 mainboard and 178 SME listings.
• Hyundai Motor India's IPO was the largest in India, raising US$ 3.3 billion, driving NSE to outperform other major Asian exchanges.
• Source: IBEF

2) Banks and Infra Finance Companies Urged to Collaborate for Big Projects

• M Nagaraju, DFS Secretary, stressed the need for banks and infrastructure finance companies to work together on funding large-scale projects, especially greenfield ventures.
• He highlighted the importance of preventing fraud and fostering innovative strategies to achieve India's development goals by 2047, with IIFCL expected to lend ₹1 lakh crore in the next 3 years.
• Source: ET Bureau

3) SEBI Eases Settlement Norms for Inactive Brokerage Accounts

• SEBI has simplified rules for settling funds in brokerage accounts inactive for over 30 days, allowing funds to be returned on the next monthly settlement date.
• The new guidelines aim to reduce operational challenges for brokers and take effect immediately.
• Source: CNBCTV18

B) Automobile:

1) India Sees 9.1% Growth in Automobile Sales in 2024

• India's retail automobile sales rose 9.1% in 2024, reaching 2.61 crore units, with significant growth in two-wheelers (10.7%), three-wheelers (10.4%), and passenger vehicles (5.1%).
• Despite challenges like financing issues and competition from electric vehicles, the outlook for 2025 remains optimistic, with 66% of dealers expecting growth.
• Source: ddnews

C) FMCG:

1) FMCG Sector Faces Slowdown Amid Inflation and Weak Urban Demand

• FMCG companies in India are expected to report low single-digit growth and margin contraction for Q3FY25, as inflation and weak urban demand persist. Rural consumption remains resilient, helping companies like Marico, but the urban slump is projected to last for 2-3 more quarters.
• Despite price hikes and cost-efficiency measures, companies like Dabur and Godrej Consumer Products are struggling with high input costs and margin pressures, especially in personal care and food sectors.
• Source: LiveMint

D) Telecommunication:

1) ARPU Growth and Reduced Churn Expected for Telecom Operators in Q3FY25

• Analysts predict continued ARPU growth for Indian telecom operators in Q3FY25, driven by SIM consolidation and tariff hikes. Bharti Airtel's ARPU is expected to rise by 17.7% YoY to ₹245, while Jio's is projected to grow 11% YoY to ₹203.
• Rising data usage and premiumization trends may push more users toward postpaid plans in FY26, supporting future ARPU increases.
• Source: Business Standard

E) Energy:

1) Govt Proposes Stabilization Fund to Tackle Fuel and Power Purchase Cost Fluctuations

• The Ministry of Power has proposed reforms to the Fuel and Power Purchase Adjustment Surcharge (FPPAS) to ensure timely cost recovery for distribution companies (DISCOMs) and reduce tariff volatility for consumers.
• Key changes include introducing a Base FPPAS charge, calculated using the average surcharge of the last three years, and creating a stabilization fund to smooth out month-to-month fluctuations in power procurement costs.
• Source: Economic Times

F) IT:

1) IT Sector Stocks with Upside Potential Despite Bearish Sentiment

• Indian IT stocks may defy current bearish sentiment, with analysts identifying five stocks with potential upside growth up to 39%. While concerns regarding the impact of H1-B visa policy changes under the Trump administration exist, Indian IT companies have learned to operate without heavy reliance on H1-Bs, as seen during the COVID-19 phase.
• Trump's pro-corporate tax policies could benefit Indian IT firms, as tax cuts for US corporations may increase demand for their services. Despite the ongoing narrative, Indian IT stocks are seen as a logical investment option moving forward.
• Source: Economic Times

G) Infrastructure:

1) NAREDCO's Request for Budget 2025

• NAREDCO wants the government to increase the housing loan interest deduction limit from ₹2 lakh to ₹5 lakh to help people afford homes.
• They also suggest giving the housing sector infrastructure status to improve funding and growth.
• Source: Hindustan Times

Indian Economy and Government Initiatives:

• Manmohan Singh's economic reforms in 1991 and leadership as Prime Minister boosted India's growth, making it the fifth largest economy globally. His nuclear agreement with the US ended India's isolation and positioned it as a global power, alongside creating new platforms like BRICS and the G20.
• Singh's leadership, vision, and diplomacy helped elevate India’s global status, laying the foundation for future successes under PM Modi.
• The Uttar Pradesh government is introducing a new export policy to boost the state's share in India's exports, with incentives for food processing, handicrafts, and One District One Product sectors, aiming to reach Rs 3 trillion in exports in 2-3 years.
• PM Modi highlighted key policies to empower farmers, including crop insurance, subsidies for fertilizer prices, ₹3 lakh crore financial assistance, expanded agricultural loans, and support for over 9,000 Farmer Producer Organizations (FPOs).

Indian Stock Market Update:

• The Sensex rose by 234 points, closing at 78,199.11, while the Nifty gained 91.85 points, ending at 23,707.90.
• ONGC, SBI Life Insurance, and Tata Motors were among the top gainers, while HCL Tech, TCS, and Hero MotoCorp were the biggest losers.
• Despite the positive close, selling pressure persists, and traders are advised to focus on stock-specific opportunities during the earnings season.

Bonus Briefs:

• Key factors shaping 2025 include slower global economic growth, protectionist US policies, market volatility, geopolitical tensions, and climate impacts.
• These dynamics have significant real-world implications, affecting everything from trade and investment to food prices, job security, and global stability.