Trade & Agreements
India's trade sector has experienced notable developments. Discussions for a trade deal with the United States are nearing completion, as indicated by
the Commerce Secretary. Moreover, talks are progressing towards a Free Trade Agreement (FTA) with New Zealand. Also, India is poised to sign a trade pact, a Comprehensive Economic Partnership Agreement (CEPA), with Oman. A recent surge of 19.37% in November's exports demonstrates positive growth, despite a trade deficit. Exports to the US have also risen, with a 22.6% increase recorded in November. The government is also considering a trade deal with Mexico aimed at addressing tariffs. These developments highlight India's commitment to broadening its international trade relations.
Market Fluctuations
Several market dynamics have been observed, influencing the financial landscape. The rupee hit a record low against the US dollar, with the exchange rate reaching 90.74 INR per USD. Concurrently, the stock markets concluded on a lower note, influenced by foreign fund outflows. The gold market witnessed a significant shift, with imports slumping by 60% to $4 billion in November. Gold prices hit a record high, reaching Rs 1.37 lakh in Delhi, indicating the impact of geopolitical factors, as reported by the Finance Ministry. Additionally, the small note shortage has led the All India Railwaymen's Benefit Association (AIRBEA) to request action from the Reserve Bank of India (RBI).
Investment & Funding
Investment and funding have played a crucial role. Candi Solar secured $58.5 million in funding, spearheaded by the International Finance Corporation (IFC). KSH International’s Initial Public Offering (IPO) raised Rs 213 crore from anchor investors, demonstrating investor confidence. 360 One raised Rs 2,300 crore for a real estate fund. Moreover, HRS Aluglaze IPO was significantly oversubscribed, with a subscription rate of 44.90 times. Texmaco Rail secured a Rs 132 crore order for wagons, while Renny Strips filed for an IPO, aiming to raise Rs 300 crore. These activities signify ongoing investment interest and fund mobilization within the Indian market.
Corporate Developments
Various corporate announcements have also been made. MTNL sold its BKC property to Nabard for Rs 350.72 crore. Corona Remedies shares saw a surge of 35% on their market debut. Hyundai India appointed Tarun Garg as MD & CEO. BHEL paid a dividend to the government for the fiscal year 2024-25. IHH Healthcare plans to expand its capacity in India, aiming to reach 7,000 beds. Furthermore, Ravi Ranjan has been appointed as SBI MD, and IHCL opened Avantika in Varanasi. Additionally, Nasscom and Applied Materials are working together to establish STEM labs in Karnataka, signifying investment in skill development.
Government Initiatives
Government initiatives and policies are shaping the business environment. The government is incentivizing industry collaboration to address skill gaps. The Unified Pension Scheme saw 1.22 lakh government employees opt-in. The UP government is planning an AI City and is discussing investment possibilities with Tata. The Real Estate Regulatory Authority (RERA) in UP approved 16 real estate projects. The Ministry of Power reported a decrease in battery storage costs, now at Rs 2.1 per unit. The government’s focus on encouraging collaboration, pension scheme updates, infrastructure projects, and renewable energy signifies a robust focus on growth and development.
Sector-Specific Highlights
The aviation sector also revealed key updates. Star Air introduced flights from Navi Mumbai Airport. Meanwhile, the Directorate General of Civil Aviation (DGCA) launched a probe at its headquarters concerning IndiGo flight disruptions. The retail sector showed growth, with GST boosting retail loans, even as young borrowers remain cautious, as indicated by Cibil. The Engineering Exports Promotion Council (EEPC) India reported that engineering exports rose by 23.7% in November. Moreover, Delhivery launched intra-city shipping services in Mumbai and Hyderabad, showcasing expanding logistics networks.
