Topic: Reports and Indices
1. From 58.4 in November to 59.3 in December, the HSBC final India Services Purchasing Managers' Index increased.
- Although it was lower than an initial estimate of 60.8, this was its highest level since August.
- For over three years, the services sector has been showing expansionary activity.
- For the first time in four months, the new business sub-index increased at the fastest rate.
- Increased capacity and strong demand kept optimism for the next year.
- Businesses kept hiring at one of the fastest rates ever since the survey's started in 2005.
- However, it decelerated from its 19-year high of November.
- The sub-indices of input prices and prices charged both decreased. This reduced inflationary pressures.
- Although they have fallen from their 15-month high in November, input prices still remained high.
- A decline in manufacturing growth was balanced by increase in services activity.
- The overall Composite PMI increased from 58.6 in November to 59.2 in December due to an increase in services activity.
Topic: RBI
2. RBI became the second biggest central bank gold buyer globally till November 2024.
- RBI purchased eight tonnes of gold in November and continued accumulation for reserves in 2024.
- On the whole, RBI bought 73 tonnes between January and November 2024 and became 2nd largest buyer after the National Bank of Poland.
- As of November-end 2024, RBI’s total holdings of gold have been estimated at 876 tonnes.
- In November, National Bank of Poland increased its gold reserves by 21 tonnes.
- One feature of November purchases was resumption of gold buying by the People Bank of China.
- In November, National Bank of Kazakhstan turned the net buyer for the first time in 2024.
- In November, largest seller was the Monetary Authority of Singapore.
Topic: Indian Economy/Financial Market
3. Exim Bank of India has raised $1 billion through a 10-year USD-denominated bond.
- Exim Bank achieved the lowest-ever spread of 100 basis points over 10-year US treasuries for a BBB-rated issuer in Asia.
- This sets benchmark for Indian issuers in 2025. This also shows increased foreign investor interest in Indian debt.
- Exim Bank is rated BBB-(stable) by Fitch, BBB-(positive) by S&P and Baa3 (stable) by Moody’s.
- Export-Import Bank of India (Exim Bank) was established in 1982. Its headquarters are located in Mumbai.
- It provides loans to Indian exporters and foreign governments for infrastructure projects
- It is wholly owned by the government of India and was set up to finance, facilitate and promote India’s international trade.
Topic: Corporates/Companies
4. Abu Dhabi Investment Authority (ADIA) has invested ₹6,300 crore in GMR Group.
- This funding will assist GMR Group in lowering the debt of promoter group entity GMR Enterprises Pvt Ltd (GEPL).
- On January 7, GMR Infra Enterprises Pvt Ltd (GIEPL) received the funds for the issuance of Optionally Convertible Debentures (OCDs).
- The company is a wholly-owned subsidiary of GEPL.
- GMR Group operates three airports in India (Delhi, Hyderabad and Goa). It operates two airports in the Philippines and Indonesia.
- Abu Dhabi Investment Authority (ADIA) is Abu Dhabi's sovereign wealth fund.
Topic: Appointments
5. 24 Judicial and Technical Members have been appointed to the NCLT’s Principal Bench in New Delhi.
- Ministry of Corporate Affairs (MCA) has made the announcement about their appointment on 7 January.
- 24 members include 11 Judicial Members and 13 Technical Members.
- They will serve a five-year tenure or until they reach the age of 65, whichever comes first.
- The Judicial Members include Justice Jyotsna Sharma, Sunil Kumar Aggarwal, and others.
- The Technical Members include Reena Sinha Puri, Siddharth Mishra, and others.
- The appointments will reduce pendency and fast-track resolutions.
- The National Company Law Tribunal adjudicates issues related to Indian companies.
- It is a quasi-judicial body and was founded on 1 June 2016.
- Its headquarters is in New Delhi. Chief Justice (Retd) Ramalingam Sudhakar is its current President.
Topic: Banking System
6. RBI has mandated that credit bureau records must be updated by all lenders every 15 days.
- This rule has become effective from 1 January, 2025. Its aim is to provide a more accurate and timely representation of borrowers' financial activities.
- Earlier, credit bureaus received updates from lenders only once a month.
- This earlier rule led to delays in reflecting borrowers' repayment behavior. This could adversely affect their credit scores.
- The RBI's directive permits lenders and credit bureaus a transition period to upgrade their systems.
- Under the earlier system, defaults took up to 40 days to appear on credit report of a borrower.
- As a result, lenders relied on outdated information for judgments regarding creditworthiness of a borrower.
- With new 15-day reporting cycle, defaults will be reflected in the credit score rapidly.
- This will allow lenders to make decisions based on current financial behavior.
Topic: Indian Economy/Financial Market
7. India’s GDP will likely to grow 6.4% in 2024-25.
- As per the Ministry of Statistics, gross domestic product (GDP) growth has been estimated at 6.4 per cent for the financial year 2024-25.
- It is lower than the 8.2 per cent GDP growth registered in the financial year 2023-24.
- Nominal GDP has witnessed a growth rate of 9.7 per cent in FY 2024-25.
- The agriculture and allied sector showed improvement with a Real GVA growth estimated at 3.8 per cent in FY25. It is more than the the 1.4 per cent of the last year.
- The construction sector's Real GVA is projected to rise by 8.6 per cent.
- The financial, real estate and professional services sector is expected to grow by 7.3 per cent.
- Private Final Consumption Expenditure (PFCE) at Constant Prices has witnessed a growth rate of 7.3% during FY 2024-25 as compared to growth rate of 4.0% in the previous Financial Year.
Topic: Corporates/ Companies
8. A $3 billion investment in India announced by Microsoft, along with plans to train 10 million individuals in AI skills.
- On January 7, Microsoft CEO Satya Nadella announced a $3 billion investment to enhance the company's cloud and AI infrastructure in India.
- He said the company has made its biggest expansion ever by investing an additional $3 billion to expand its Azure capabilities in India.
- Microsoft is an American multinational technology conglomerate. Microsoft was founded by Bill Gates and Paul Allen. Satya Nadella took over as CEO in 2014.
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