Trade and Agreements
India's trade landscape has been active with several developments. Discussions are underway for a trade pact between India and the EU, aiming to narrow
existing differences. Simultaneously, India and the US are nearing a trade deal, as indicated by the Commerce Secretary. Furthermore, talks with New Zealand are also nearing completion regarding a Free Trade Agreement (FTA). India has also engaged in discussions with Mexico, proposing a trade deal to address tariffs. The country's exports have shown a positive trend, with a 19.37% rise in November, and an impressive 22.6% increase in exports to the US during the same period. Additionally, India and Oman are poised to sign a trade pact, the CEPA. These developments signal a proactive approach to international trade relations.
Investment and Markets
Various sectors in India are experiencing investment activities. The UP AI City plan saw discussions involving Adityanath and Tata regarding potential investments. A Hapur Investment Summit generated proposals worth Rs 1300 crore. Additionally, KSH International's IPO secured Rs 213 crore from anchor investors, and 360 One raised a Rs 2,300 crore realty fund. The stock market, however, closed lower amidst foreign fund outflows. The real estate market also saw activity, with UP RERA approving 16 real estate projects. In the realm of IPOs, HRS Aluglaze's IPO was oversubscribed 44.90 times. Moreover, Pajson Agro's IPO was subscribed 6.59 times on day 3, and Renny Strips filed for an IPO to raise Rs 300 crore.
Financial Sector News
The financial sector is also bustling with significant developments. The Unified Pension Scheme saw 1.22 lakh government employees opting in. BHEL paid a dividend to the government for 2024-25. NCDEX received Sebi's nod for a mutual fund platform, indicating regulatory support for financial market infrastructure. SBI Yono 2.0 was launched, accompanied by plans to hire 10,000 staff, signifying growth and expansion. Furthermore, the ICICI Prudential AMC IPO was subscribed 2.11 times. The falling cost of battery storage, now at Rs 2.1 per unit, indicates advancements in the energy sector. Also, GST has been identified as a boost for retail loans.
Industry Specific Updates
Several specific industry updates emerged. MTNL sold its BKC property to Nabard for Rs 350.72 crore. Shares of Corona Remedies jumped 35% on their market debut. Hyundai India appointed Tarun Garg as MD & CEO. Delhivery launched intra-city shipping services in Mumbai and Hyderabad. Candi Solar secured $58.5 million in funding led by IFC. Star Air inaugurated flights from Navi Mumbai Airport. Raghu Vamsi launched a UAV and defense facility. Engineering exports increased by 23.7% in November, as reported by EEPC India. IHH Healthcare plans to expand its capacity to 7,000 beds. Moreover, TCS is expanding its operations in Romania to bolster its European network. The RBI is expected to address the shortage of small notes, following a request from AIRBEA. Furthermore, the Ministry of Power mentioned that the cost of battery storage fell to Rs 2.1 per unit.
Other Economic Indicators
The rupee hit a record low, with the INR/USD exchange rate at 90.74. Gold futures reached a record high of Rs 1,35,496, and silver also saw a surge. Gold prices in Delhi reached Rs 1.37 lakh, and gold imports decreased by 60% to $4 billion in November. Fuel prices varied significantly across regions, with Andhra Pradesh having the highest costs and Andaman the lowest. The DGCA is investigating IndiGo flight disruptions at its headquarters. Overall, India’s trade deficit remained low.
