Tuesday, November 26
The FMCG industry in India is expecting a double-digit volume-led growth in 2024, thanks to diverse catalysts such as an uptick in rural demand, higher volumes, and favorable commodity prices. Despite the challenges faced in 2023, including weaker festive demand and rainfall deficit affecting rural growth, the industry is optimistic about a better year ahead. FMCG players are focusing on innovation, premiumization, and expanding rural distribution. They also anticipate increased profit margins, branding investments, promotional schemes, and dividend payouts.
FDI into India expected to increase in 2024 due to healthy macroeconomic numbers, better industrial output, and attractive PLI schemes. The government reviews FDI policy regularly to ensure India remains investor friendly. Inflow of FDI declined in 2023, but India is still the preferred destination for foreign players. Production linked incentive schemes have attracted foreign investors, and steps to improve ease of doing business and infrastructure are being taken. Despite global challenges, India's fundamentals make it an attractive investment destination.
Foreign portfolio investors (FPIs) inject over Rs 57,300 crore into Indian equity markets this month due to political stability, robust economic growth, and declining US bond yields. Total FPI investment exceeds Rs 1.62 lakh crore this year. In 2024, FPIs are expected to increase purchases as US interest rates decline. FPIs made a net investment of Rs 57,313 crore in Indian equities this month, the highest monthly inflow in a year. FPIs were big buyers in financial services and also showed interest in autos, capital goods, and telecom sectors.
Air India’s Airbus A350-900 will begin commercial operations in January 2024. Initially, it will serve domestically for crew training before venturing into international flights spanning various continents.
ITR-1, ITR-4 FY24: The Central Board of Direct Taxes (CBDT) has notified the income tax return (ITR) forms ITR-1 and ITR-4 for the fiscal year 2023-24 (assessment year 2024-25).
Jewellery consumption is expected to grow by 10-12% this year due to the increase in gold prices, according to a report by Icra. The rating agency has revised its forecast for YoY domestic jewellery consumption growth in FY24 to 10-12% from the earlier estimates of 8-10%. Jewellery consumption rose over 15% YoY in the first half of FY24, supported by stable demand during the festival of Akshaya Tritiya and higher gold prices. However, Icra projects a moderation of the growth rate to 6-8% in the second half of the year due to tepid rural demand and inflation.
BSE Sensex, Nifty50 tank: Sensex, after reaching a fresh record peak near the 72,000 level, experienced a significant drop and fell over 1,000 points from the day's high, while the Nifty also tumbled nearly 300 points from its peak as traders decided to book profits.
VSEZ achieves over 30% increase in exports to Rs1,04,278 crore between April and September 2023. Services exports increased by over 34% and merchandise exports increased by over 21% compared to the previous year. VSEZ has 640 functioning units, attracted investments of Rs1,04,961 crore, and generated employment for over 6.6 lakh. Proposals for 11 new SEZ units and 2 EOUs approved, with an investment of Rs167 crore and employment for over 4,000 people. Proposals for 5 new SEZ units approved in Andhra Pradesh and 6 in Telangana.
