The stock of the country's largest passenger vehicle maker, Maruti Suzuki India (MSIL), has been hitting successive all-time highs over the past three trading sessions. The rally in the scrip has helped it notch over a 21 per cent gain since the start of February, outperforming the National Stock Exchange Nifty Auto Index. The gains for the leader of small passenger cars have been more recent, as the company still trails the Nifty Auto over one- and two-year periods.
After unseasonal rains, supply disruptions and pandemic-induced woes pushed retail inflation well over the Reserve Bank's comfort zone in 2020, the scenario is likely to stay that way at least in the short term as economic recovery slowly gains foothold. For most part of this year, pricier food items pushed the retail inflation, based on Consumer Price Index (CPI), higher in the range of 6.58-7.61 per cent, except for March when the reading was 5.91 per cent. Experts believe retail inflation is likely to average around 6.3 per cent this fiscal and mostly will remain sticky going forward owing to pick-up in demand across sectors.
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Narrowing of the current account deficit will help arrest depreciation of the rupee and ease inflation concerns, industry groups said.
The survey showed firms passed on a greater cost burden to consumers. Prices charged rose at their fastest pace since October.
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The subdued labour market is likely to recover.
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India's economy grew 4.7 per cent in 2013-14, following an expansion of 4.5 per cent in 2012-13. In the fourth quarter of 2013-14, growth remained subdued at 4.6 per cent, mainly due to a decline in manufacturing and mining output.
The rupee has depreciated 2.35 per cent in the past three months and one per cent in the past month, despite strong capital flows and falling oil prices.
The Reserve Bank has taken some steps to shore up the domestic currency.
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The government on Tuesday announced a host of measures to tame inflation, which had soared to a five-month high of 6.01 per cent in May.
Infosys, Wipro and HUL among the top losers for the day.
RBI is closely monitoring monsoon.
Given the relative rates of gross domestic product growth, the differential will increase.
The 30-share Sensex ended down 245 points at 28,799 and the 50-share Nifty closed down 81 points at 8,750
Inter-ministerial group to meet on Thursday to finalise model concession pact.
Infosys was the top gainer in the Sensex pack, closing 7.20 per cent higher as investors cheered its financial results. The IT major posted better-than-expected 5.3 per cent rise in its June quarter net profit, and raised revenue growth forecast for the current fiscal.
'Implementation of GST would lead to the growth story of India'.
Financials declined amid profit taking while energy shares fell after the government hiked excise duty on transport fuels.
Food prices probably fueled a sharp rise in India's retail inflation in December after the record low struck the previous month.
For August, CRISIL core inflation indicator stood at 3.6 per cent, a tad higher than RBI's measure.
Retail inflation remained above the RBI's comfort level for the second consecutive month despite slipping slightly to 6.26 per cent in June while the factory output recorded a growth of 29.3 per cent in May, mainly on account of the base effect, the government data showed. The marginal slippage in the Consumer Price Index (CPI)-based inflation was noticed despite little firmness witnessed in the food inflation which inched up to 5.15 per cent in June from 5.01 per cent a month ago. Retail inflation based on Consumer Price Index (CPI) was 6.3 per cent in May 2021 and 6.23 per cent in June 2020.
Markets surged in late trades to snap five-day losing streak led by bank shares.
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The repo rate continues to be at 8 per cent while the cash reserve ratio has also been retained at 4 per cent despite inflation based on the Wholesale Price Index coming down to a 5-year low of 1.77 per cent in October.
Inflation indexed bonds assure a positive return over inflation.
Reiterating his earlier stance, BJP's Rajya Sabha member Subramanian Swamy has written a letter to Prime Minister Narendra Modi, asking him to sack RBI Governor Raghuram Rajan.
Bankers said high interest rate could make Indian economy sluggish given that inflation is around 5%
With crude and commodity prices ebbing and the twin deficits under check, the Reserve Bank should have cut the key policy rate to push investments and boost economic growth, India Inc said.
An expected withdrawal of FIIs from the market likely to weaken the rupee against the dollar.
Though inflation, on the basis of the wholesale price index, is nowhere near the 1990-91 level of 10.26 per cent and India is in a much better position to check it, the greater integration of our economy with the globe has exposed it to a much higher risk of imported inflation.
The automobile sector is considered a good indicator of economic health. It has a very long value chain, from primary materials, like metals, glass and plastic, to value-added high-end electronic components, specialised alloys, and software.
As inflation rate is near the upper limit of the comfort zone, experts rule out rate cuts anytime soon
The NSE index Nifty ended above the 10,500-mark.
If rate cuts are fully transmitted, and RBI continues to cut rates in 2016, and earnings growth picks up as well, current valuations may be justified. Otherwise, equity will remain over-valued, says Devangshu Datta.
The RBI has targeted 6 percent inflation by January 2016
Dismissing the contention that the decline in inflation was on account of the steps taken by the NDA government, Chidambaram said he wanted to know, 'what measures were taken by the government that contributed to decline in inflation rates.'
The survey showed firms' confidence regarding future business grew at the slowest pace in a year last month.
But it is likely that campaign spending resulted in some positive activity through this period.
But lower growth numbers in the quarters to come may not mean renewed weakness in the economy at the ground level, says Pranjul Bhandari.
Food and fuel are two perennial areas of concern.
Expectations of strong results, consistent performance and investors preference for stocks in the defensive space help the sector outshine broader markets.
Meanwhile, for the fortnight ended March 20, deposits grew 11.42% y-o-y.
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