GROWTH SLOWDOWN
US inflation cools in May, boosting hopes of Fed rate cut
May's stable inflation, influenced by service costs and goods prices, sets the stage for potential Federal Reserve interest rate changes. The report highlights slight consumer spending growth and hints at the Fed's aim for a controlled economic slowdown through core inflation moderation.
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.
Not AI, IT hiring not picking up because of global slowdown in IT spend: Ramani Dathi, Teamlease Services
Ramani Dathi says there is no major uptick as far as demand for IT pros is concerned. There are a few set of clients, especially the GCCs and to some extent, who are able to maintain the current run rate of revenues and headcounts for Teamlease, but to show a massive growth or a double-digit growth, the IT services hiring has to be back on track.
IPO market picks up after two years of slowdown; is it the right time to invest in IPOs?
Are you also planning to invest in the upcoming IPOs? Brokerages often express bullish views on IPOs because increased investor participation benefits their business. However, take their advice with a pinch of salt. Here are a few things to keep in mind before you invest
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Facing an unprecedented slowdown, IT companies are undergoing a shift. Here’s what’s changing
IT companies like TCS, HCLTech, Wipro and Tech Mahindra are reorganising their businesses to wade through disruptions and prepare for Gen AI. TCS, under new leadership, merged AI and cloud operations into a unified AI.Cloud unit, responding to growing demand in cloud migration and transformation services.
As buyers diss cars, auto companies count on offers
Passenger car sales surged 8% to a record 4.22 mn units in FY24 but have moderated since amid the heat wave, a long election season and a high base. Going by current vehicle registration trends on the government's Vahan portal, June growth is expected to be either flat or negative. ET reported June 17 that inventory levels at dealerships across the country were at 55-60 days against the norm of 30 days seen at this time of the year.
It was ‘closing’ time for many retailers in FY24; V-Mart, W, Aurelia among cos that downed more shutters
Retail chains like Pantaloons, Spencer's Retail, and Nature's Basket have closed down more stores in 2023-24 than they opened new ones, leading to a drop in their total store count. V-Mart Retail, W, Aurelia, and Titan Eye+ had higher store closures than openings in the January to March quarter. Pantaloons store count dropped from 431 in FY23 to 417 in FY24, with 33 stores closed to improve network quality.
Screaming value? 34 stocks with consistent earnings growth still trading below 5-year PE
34 stocks with consistent earnings growth, including Trent, are trading below 5-year PE. Axis Securities recommends buying Trent at Rs 4,800. 5 Nifty index cos, like ICICI Bank and Maruti Suzuki, are also undervalued.
Consumer sector in focus post-election results! D-Mart, Tata Consumer could give 12-18% in 1 year
We believe this rally in staple stocks is driven by not only its ‘defensive sector’ tag but also the underlying excitement, which was triggered by strong post-Q4 management commentary.
Inflation, Fed meeting to give clues for US market direction
Investors await next week's inflation data and Fed meeting for signals on stock market trajectory amid conflicting economic signals. S&P 500's 12% YTD rise hinges on Fed's ability to manage inflation without hampering growth.
Modi premium for Indian stocks gets a hard look after elections
With the leader now navigating coalition politics after a weaker-than-expected mandate in this week’s national election, the so-called Modi premium is under scrutiny. Investors are looking for proof that Modi can continue his reforms with the same vigor, while balancing the demands of alliance partners and avoiding populist measures to regain public support.
Wall St Week Ahead-Inflation, Fed meeting to give clues for US market direction
Political uncertainty may impact market stability. Early presidential debate raises concerns about 2024 election influence. Market attention shifts from economic data to political landscape.
Govt to focus on capex & infra to propel next phase of growth: Indranil Sengupta
I would say that valuations that are concerned and whoever is getting into the market right now should also clearly take that into account. Because once you start losing the support of valuations, then obviously you are taking that much more of a risk. But then that said, I mean, a lot depends on where equity markets grow in the US because that clearly has a big impact globally.
Reality behind the 8.2% FY24 GDP growth is not as robust
The 8.2% FY24 GDP growth reflects a modest deceleration from 3QFY24 at 8.6%. Real gross value added growth slowed considerably in 4QFY24 to 6.3% from 8.3% in 1QFY24.
Election outcomes won't disrupt India's economic stability: Saurabh Mukherjea
There will probably be governance continuity as well, but almost certainly there will be policy continuity and hence, my point of view to the foreign investors is, beyond a point, you should not overemphasise the elections.
IMF revises China's GDP to 5% this year; growth may decelerate to 3.3 per cent by 2029, says Gita Gopinath
The 5 per cent growth revision by the International Monetary Fund (IMF) is in line with the target set by the Chinese government for the world's second-largest economy which is grappling with a slowdown triggered by the crippling property sector crisis and industrial overcapacity.
Liquor demand still dull, could pick up soon: United Spirits
"On the demand front, the growth has moderated from two years ago. And at the lower end, we continue to see some pressure. Moderation was there during the wedding season, and so growth is continuing to be slower," the company's managing director and chief executive Hina Nagarajan told analysts during an earnings call.
RBI MPC meeting next week: What investors should expect
The RBI's upcoming MPC meeting on June 7, 2024, is expected to maintain interest rates amidst a stable inflation scenario post Lok Sabha election results. The focus will be on global and domestic factors impacting the economy.
India leads in electric vehicle sales amid global slowdown
Global electric vehicle sales growth faces challenges like capital costs and election uncertainty. US EV sales outpaced Europe, where EV sales declined due to Easter holidays. Germany saw a 29% drop in EV sales, while India's EV market share doubled to 4% in 2023.
Wearable devices market sees growth slowdown amid fall in smartwatch shipments
The wearable devices market in India saw a modest growth of 2.1% year-on-year in the quarter ending March 2024, reaching 25.6 million units. This slowdown was primarily due to a decline in smartwatch shipments, falling by 7.3% to 9.6 million units. Despite a drop in average selling prices (ASPs), excess inventory from the festive season in 2023 contributed to the decline. The earwear category, however, experienced an 8.3% growth, with truly wireless earbuds dominating the market at 70.1% share.
Wall Street Week Ahead: Stock market's record-setting rebound may have further to go
Fresh signs of a cooling economy calmed inflation worries in May, helping all three major U.S. stock indexes rise to records this week. The benchmark S&P 500, which fell over 4% in April, is now up 11% year-to-date.
Airbnb slumps over 6% as gloomy Q2 forecast fans slowdown fears
Airbnb shares tumbled more than 6% in early trading on Thursday after weak forecasts for the second quarter stoked investor fears about slowing growth at the vacation rental firm and took the shine off a strong quarterly profit beat.
Core sector growth eases to 5.2% in March
India's core sector growth slowed to 5.2% in March 2024, impacted by various industries. The Index of Industrial Production (IIP) is likely to see a moderate growth of 3.5-5% in the same month. The slow growth in eight core industries — cement, coal, crude oil, electricity, fertilisers, natural gas, refinery products and steel — which have a 40% weight in the Index of Industrial Production (IIP), is likely to lead to slower industrial growth as well.
Banks may have to slowdown loan growth in FY25: S&P
S&P Global Ratings forecasts robust credit growth, profitability, and asset quality for Indian banks in FY25, yet warns of potential slowdown in loan growth due to tepid deposit growth. Loan-to-deposit ratios are deteriorating, urging banks to align loan growth with deposits to maintain profitability amid higher wholesale funding costs.
Top IT companies cut over 72,000 jobs in FY24
The top six information technology services companies in India reported a reduction in their total headcount in the last fiscal year, with only HCLTech adding employees. Factors contributing to this reduction include the economic slowdown, automation, restructuring, and decreased discretionary spending. The drop in headcount reflects the aftermath of excessive hiring during the Covid boom and ongoing industry contraction in demand. However, experts believe that this trend may have bottomed out, and companies could resume hiring, given the strong deal wins announced by most of them, which could push a gradual pickup in growth.
ETMarkets Smart Talk: We expect FY25 to be a year of consolidation for markets: Chandraprakash Padiyar
Chandraprakash Padiyar expects FY25 as a consolidation year for markets, emphasizing better risk-reward in banking and housing sectors. Valuations in mid-cap space are high, while small-cap offers more stock picking opportunities at reasonable valuations. Padiyar says: "We believe the banking sector along with housing related sectors have better risk-to-rewards in our markets for the foreseeable future."
Industrial growth slows to 3.8% in January; manufacturing decelerates
Industrial growth eased to 3.8% in January due to a manufacturing slowdown and slower public capex spending. Mining expanded 5.9% and electricity production increased 5.6%. Manufacturing growth eased to 3.2% in December. The factory output in January was 14.0% higher than the pre-COVID level.
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