GROWTH PACE
Tough to sustain GDP growth above 7.5%; time-wise correction in market likely: Neelkanth Mishra
As mutual funds are sitting with Rs 1 lakh crore of cash, whenever there is a 4-5% drop from the peak, there is a spate of buying. So equities as an asset class are not seeing sharp drawdowns and in the short term make it safer to invest in and attract more funds. That is the cycle we are in, says Neelkanth Mishra.
Car sales lose pace in June, SUVs stay in front
Passenger vehicle sales in India remained sluggish for the third consecutive month in June due to a high base and reduced post-pandemic pent-up demand. Sales rose 3.7% from a year earlier but slightly declined from May, with 340,784 units sold compared to 328,710 last year. SUVs comprised 53% of sales.
Earnings growth likely to be in mid-teens; overall growth trajectory remains strong: Shibani Sircar Kurian
The building materials segment, specifically tiles, has underperformed despite significant real estate growth. Typically, when real estate sales pick up, demand and volume growth in building materials follow with a lag.
Pace of coal import growth declines from over 21 pc to below 2.5 pc in last decade: Govt
The annual growth rate of India's coal imports declined to 2.49% in the past decade, down from 21.48% in the previous decade, reflecting progress towards energy self-reliance. The share of imported coal also decreased, with a compound annual growth rate of -2.29%. India aims to optimize its indigenous coal resources and leverage technology.
UK economy grew 0.7% in first quarter of 2024
Britain's economy grew by 0.7% in the first quarter of this year compared to the previous quarter, surpassing an initial estimate of 0.6% growth, according to official figures released on Friday. This data arrives just days before a national election where opinion polls suggest Labour Party leader Keir Starmer may replace Conservative Prime Minister Rishi Sunak.
Private consumption seen growing, concerns on capex growth: Morgan Stanley Research
Consumption growth has remained weak since the pandemic, recovering at a slow pace. Private consumption is recovering, with growth is tracking at 4% in the quarter ended March 31, 2024 as against 1.5% a year ago but it is just catching up to the pre-pandemic trend and remains below the pre-pandemic average of 6.3% in 2019.
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India central bank policymakers divided over rate-growth debate
Internal members maintain hawkish stance on inflation, with Governor Das cautioning against hasty actions for fear of worsening the situation
RBI needs to shift focus from inflation management to growth promotion: MPC member Varma
With retail inflation nearing the Reserve Bank of India's (RBI) 4% target, RBI Monetary Policy Committee (MPC) member Jayanth R. Varma emphasized a shift towards promoting growth. He noted that core inflation is benign and projected CPI inflation for 2024-25 is only 0.5 percentage points above target. Varma advocated for a less restrictive monetary policy to balance disinflation and support economic growth, which is expected to be slightly lower in the coming years.
RBI flags pursuit of growth at cost of risk buildup
India's banking regulator cautioned lenders against pursuing 'mindless' business growth to avoid exposing the financial system to risks. RBI Governor Shaktikanta Das emphasized the importance of balancing business growth with risk management.
Get on the job of jobs
A thorough assessment of historical and current employment trends across sectors leads to a deeper dive into complexities of jobless growth. Mapping out the strengths and weaknesses of each sector is crucial for formulating strategies to enhance job-creating potential. In addition to understanding the employment-generation capacities of different sectors, India's low labour force participation rate (LFPR) poses a significant challenge.
Credit growth up by 19.3%, crosses deposit growth; PVBs outpace PSBs: CareEdge
Scheduled Commercial Banks (SCBs) in India saw a significant 19.3% year-on-year credit growth in the last quarter of FY24, translating to an expansion of ₹26.6 lakh crore, reaching ₹164.3 lakh crore in total credit. This surge was driven by personal loans and lending to NBFCs. Deposit growth lagged at 13.6%, with the credit-to-deposit ratio rising to 79.7%.
India's world-beating growth pace to continue, says RBI Governor Shaktikanta Das
"In the first three quarters of 2023-24, the current account deficit was 1.2% (of GDP)," Das said. "Our teams are working on the fourth quarter numbers. They look to be even lower, and when you look at the annual current account deficit number, I will not be surprised next week when we publish the current account deficit numbers - they could be even lower than 1% (of GDP)," he said at the ET Now event.
Global wind installation growth pace slows on rising costs
Global wind power growth expected to slow in 2024 due to rising costs, limited infrastructure, and policy uncertainty, with installations increasing by almost 6%.
PV sales up in low-digits as growth pace moderated in May: SIAM
Passenger vehicle dispatches increased by 3.9% in May, setting a new record. Three-wheeler sales surged by 14.7%. Two-wheelers grew by 10.1%. The industry is optimistic about steady growth in 2024-25 due to expected good monsoon and economic development.
High FD interest rates may not last long despite RBI status quo; is this the last window to book fixed deposits at higher rates?
FD Interest Rates: RBI in its MPC meeting on June 7 kept the repo rate unchanged at 6.5%. This marks the eighth consecutive MPC with status quo, benefiting fixed deposit investors with high rates. However, going forward the interest rate cycle to reverse. The potential for a rate cut later in the year is anticipated.
Home loan borrowers may have to wait longer for lower EMIs but a rate cut likely this year; how to make the most of it
Home Loan Interest Rates: The Reserve Bank of India (RBI) in its recent Monetary Policy Committee meeting decided to maintain the repo rate at 6.5%, prolonging the wait for home loan borrowers seeking relief from high interest rates and increased EMIs. Despite the current pause in repo rate the possibility of a rate reduction this year is still there.
Will the pace of the rally in PSU sector cool down? Sandip Sabharwal answers
My base case is that the current government will continue. So, if that doesn't happen, which I believe is a remote possibility, then I think the post-election strategy has to be very different.
Retail cos, QSRs expand at slowest pace in 5 years
Retailers and quick-service restaurant chains in India experienced the slowest pace of store expansion in five years at 9%, with 33,219 stores as of March 31. In FY23, the number was 30,551, up 18% from the previous year. These companies added 2,700 stores, averaging 7 a day, but that's nearly half compared to 13 doors each day in FY23. Retail sales growth rate fell year-on-year every month in the previous fiscal, reflecting weak consumer sentiment across segments like apparel, footwear, and QSR.
Indian economy likely grew at weakest pace in a year in Jan-March, says Reuters poll
India's economy likely experienced its slowest growth in a year during the January-March quarter, attributed to weak domestic demand, according to a Reuters poll of economists. This follows a surprising 8.4% GDP growth in the October-December quarter, boosted by a sharp drop in subsidies that artificially increased net indirect taxes, while gross value added (GVA) grew by 6.5%. For the January-March period, GDP growth is expected to have slowed to 6.7%, with GVA growth at 6.2%.
Private sector activity gathers pace in May, job creation highest in 18 years
India's private sector activity surged in May, marking the third strongest increase since July 2010, as per a private survey. The HSBC Flash India Composite Output Index climbed to 61.7, with both manufacturing and services sectors showing robust expansion. New export orders reached their highest level since September 2014. While manufacturing activity slightly eased, services sector growth accelerated to its fastest pace in four months.
India May business growth robust as exports rise at record pace, PMI shows
HSBC's flash India Composite purchasing managers' Index , compiled by S&P Global, rose slightly to 61.7 this month from April's final reading of 61.5, marking the 34th month above the 50-level separating growth from contraction.
'Stock market rally' from June 4, predicts PM Modi: Should stock, mutual fund, gold investors tweak portfolios before Lok Sabha election results?
Lok Sabha election results 2024: Prime Minister Narendra Modi said that the stock market would have a rally once the election results are out. A few days back, Union Home Minister Amit Shah asked investors to buy the dip before June 4, 2024, as the market will shoot up after that. Now the question is what should investors do till the election results are out? Is it time to accumulate more stocks or avoid the volatility and play it safe? Find out here
Euro zone business activity grows at fastest pace in almost a year
HCOB's composite Purchasing Managers' Index (PMI) for the currency union, compiled by S&P Global and seen as a good gauge of overall economic health, bounced to 51.7 in April from March's 50.3, surpassing a preliminary 51.4 estimate.
Banks homing in on a bigger share of expanding realty pie; loans almost triple the pace in FY23
Bank loans to commercial real estate, including residential construction, nearly tripled last fiscal year at 23 percent, amounting to Rs 3.97 lakh crore. If the impact of the merger of HDFC with HDFC Bank is included, the loan growth increases to 38.9 percent, with outstanding loans reaching Rs 4.48 lakh crore as of March 31. Property analysts note growth across segments, with the top seven property markets witnessing total sales of 74,486 apartments in the quarter, following a record-breaking quarter in December.
Mayank Yadav doubtful for remainder of IPL; all set to get BCCI pace bowling contract
Mayank Yadav's IPL future hangs in the balance due to an abdominal muscle tear, raising doubts about his participation. BCCI may provide a pace bowling contract, while Lucknow Super Giants' playoff chances could determine his return.
US growth slowed sharply last quarter to 1.6 per cent pace, reflecting an economy pressured by high rates
The state of the US economy has seized Americans' attention as the election season has intensified. Although inflation has slowed sharply, to 3.5 per cent from 9.1 per cent in 2022, prices remain well above their pre-pandemic levels.
PMS Funds Tracker: Multi-asset schemes made HNIs richer in March
Pace Financial's Tresor Flexi fund was the top-performing PMS scheme last month with a 7.4% return, followed by Tresor Prive's 4.73% gain and 4.7% upside in Tresor Sustainer, shows data pulled from PMSBazaar.
Core growth hits 15-month low of 3.6% in January, high base weighs
The slow growth in the eight core industries - cement, coal, crude oil, electricity, fertilisers, natural gas, refinery products and steel - is likely to be reflected in industrial output as well. These sectors have over 40% weight in the Index of Industrial Production (IIP). "We could expect IIP growth to be 2-3% this month. We do not expect any resurgence in consumer goods production this month and hence (growth) will be muted," said Madan Sabnavis, chief economist, Bank of Baroda.
US manufacturing activity expands at fastest pace since 2022
"Signs of inventory reduction policies becoming less widespread also helped boost production and sustain high levels of business confidence in the outlook for the year ahead among manufacturers," Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement.
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