News Nook: Feb 8, 2025

Indian Sector Specific News:

A) BFSI:

1) RBI Pushes Rupee Trade & FTAs in Progress

The RBI has allowed 123 banks from 30 countries to open 156 Special Rupee Vostro Accounts (SRVAs) with 26 Indian banks, helping businesses trade directly in local currencies. It has also partnered with the UAE, Indonesia, and the Maldives for local currency trade.
India is negotiating Free Trade Agreements (FTAs) with Oman, Australia, the UK, and the EU while working on easing e-commerce exports by addressing banking fees, payment delays, and regulatory challenges.
Source: UpStox

2) Sebi Cracks Down on Asmita Patel’s Illegal Advisory Fees

Sebi has seized ₹53.6 crore from Asmita Patel Global School of Trading and related entities for illegally collecting investment advisory fees under the pretense of educational courses. Patel, known as the "She-Wolf" of the stock market, allegedly shared stock tips through Telegram and WhatsApp, violating Sebi regulations.
The probe found false profit claims, GST evasion, and misleading testimonials. Despite earning ₹104 crore from courses, her firm made only ₹12 lakh in actual trading profits. Sebi’s October 2024 circular prohibits influencers from using live market data in educational programs.
Source: LiveMint

B) Automobile:

1) Electric Vehicle Sales Rise in January

EV sales grew 19.4% from December and 17.1% from last year, reaching 1.69 lakh units in January. Two-wheeler sales were the highest, with Ola Electric selling 24,336 units, despite a 25% drop from last year.
Sales peaked in October 2024 at 2.19 lakh units, helped by government subsidies on electric three-wheelers. More EV launches in 2025 and strong demand are expected to boost market share further.
Source: Business Standard

2) Rate Cut to Boost Two-Wheeler & Small Car Demand

RBI cut the repo rate to 6.25%, making auto loans cheaper. This, along with income tax relief, is expected to increase demand for budget-friendly two-wheelers and entry-level cars.
Lower interest rates will help rural markets grow, making vehicles more affordable and boosting sales across the auto sector.
Source: Business Standard

C) Pharma:

1) Pharma Sector to Grow 9-10% in FY26

India's pharmaceutical sector will see 9-10% revenue growth, driven by chronic drugs, US generics, and contract manufacturing, while operating margins remain stable.
US-focused companies may grow 8-9%, supported by stable pricing, favorable currency movement, and patent expiries, while API business growth remains weak.
Source: Express Pharma

D) Telecommunication:

1) Sar Televenture Surges 7% After Tikona Infinet Acquisition Deal

Sar Televenture's stock jumped 6.7% intraday after revising its deal to acquire 91% of Tikona Infinet for ₹578 crore, fully through a share swap.
The company aims to expand services, increase market share, and improve efficiency, with Tikona's strong presence in banking, IT, healthcare, and retail.
Source: Trade Brains

E) Energy:

1) IEA, OPEC to Share Oil Market Insights at India Energy Week 2025

IEA and OPEC leaders will attend India Energy Week (IEW) 2025, scheduled from February 11-14 in New Delhi, to share insights on India's oil and gas sector.
OPEC’s World Oil Outlook (WOO) session will cover oil demand, supply, refining, global economy, and sustainability trends, while IEA’s Nobuo Tanaka will discuss India’s rising energy demand.
Source: Economic Times

F) IT:

1) Kerala Allocates ₹517.64 Crore to Boost IT Sector

Kerala's state budget earmarks ₹517.64 crore for IT sector growth, focusing on AI, emerging technologies, and digital infrastructure, with Thiruvananthapuram set to become an automotive technology hub.
Key initiatives include a ₹10 crore GPU cluster for AI & AVGC, a ₹1 crore national hackathon for Agentic AI systems, ₹10 crore for fintech development, and an MoU with Oxford University for PhD scholarships.
Source: New Indian Express

G) Infrastructure:

1) Budget Boosts Private Investment in Infrastructure

Government prioritizes infrastructure investment to drive India's economic growth under Viksit Bharat, encouraging private sector participation to accelerate development.
Budgetary measures focus on roads, railways, and urban infrastructure, aiming to enhance connectivity, boost logistics efficiency, and attract foreign investments in key projects.
Source: Construction World

2) Metal Stocks Jump Up to 7% as Repo Rate Cut Fuels Infra and Real Estate Hopes

RBI cuts repo rate by 25 bps to 6.25% in its first policy meeting under Governor Sanjay Malhotra, aiming to boost economic growth amid a slowdown.
Metal stocks surge as infrastructure and real estate demand rises, with Jindal Steel up 4.8%, Tata Steel up 4%, and Welspun Corp up 7% following the rate cut.
Source: Trade Brains

H) FMCG:

1) Consumer Stocks Give Up Budget Day Gains as Inflation Hurts Margins

Nifty FMCG Index erased budget day gains, declining 6% over the last five sessions as inflation pressures continue to impact margins.
RBI’s 25 bps rate cut to 6.25% failed to boost consumer stocks, as CPI inflation is projected at 4.8% for FY25.
ITC fell 3% due to weak FMCG revenue growth, while Britannia dropped 2% as commodity inflation hit 11%, requiring a 6.5% price hike to offset costs.
Radico Khaitan (-14%), Varun Beverages, Balrampur Chini Mills, and United Spirits (-13%) lead FMCG sector losses in 2025.
Source: Economic Times

Indian Sector Specific News:

Budget focuses on agriculture, MSMEs, investment, and exports, with ₹15.48 lakh crore allocated to capital expenditure and ₹20,000 crore for R&D. Farmers benefit from a higher Kisan Credit Card limit (₹3 lakh to ₹5 lakh).
Tax reforms aim to boost economic growth, including customs duty cuts on key imports, simplified compliance for businesses, and upcoming Income Tax Bill reforms for efficiency.
RBI expects India's economy to grow 6.7% in FY26, slightly up from 6.6% in FY25, but lower than earlier estimates.

Bonus Briefs:

WTI oil falls to $70.35 as US-China trade tensions rise, but Middle East tensions may limit further decline.
RBI cuts repo rate to 6.25% after 5 years to boost growth but warns of global risks to India's economy.