Inflation
Moody's retains India's sovereign credit ratings
The release also said that the ratings agency could upgrade the rating if India's economic growth potential increased materially beyond their expectations, supported by the effective implementation of economic and financial sector reforms that led to a significant and sustained pickup in the private sector investment.
Investors will monitor impact of inflation, front-loading of rate hikes by RBI on domestic demand: BoB report
In the coming days, global markets will react to incoming data from the US, Europe and China to assess the impact of consistent rate hikes by major central banks. Energy crisis in Europe and increasing bills of utilities, food, beverages in the UK will affect consumption demand in the area, thus increasing the risk of recession. China's looming property crisis will add to global woes.
Input cost inflation continues to push up corporate revenues but disrupts margins: ICRA
Sectors like hotels, power, retail, and oil & gas, among others, reported significant QoQ growth in revenues in Q1 FY2023. However, a few other sectors like airlines, construction, capital goods, and iron & steel witnessed a sequential decline. The sequential growth in revenues during the quarter was dismal at 1.5 per cent and the trends varied across sectors.
Inflation, rate hike won't knock out Indian Inc: Report
However, renewables are relatively more exposed to rising rates due to large capital expenditure. The report do not expect any default in the rated portfolio, which benefits from access to domestic banks and capital markets. "Banks will not be immune, but we expect that in the stress scenario NPLs could rise modestly," the report added.
Inflation fuels jump in UK govt debt costs
The Office for National Statistics (ONS) said Government borrowing hit 4.9 billion pounds in July, reports dpa news agency. It is significantly ahead of the predictions of analysts, who had forecast 2.8 billion pounds in borrowing last month. Nevertheless, borrowing was 0.8 billion pounds below levels from the same month last year, but represented a 5.9 billion pounds surge from pre-pandemic levels in 2019, when the government reported a surplus of 0.9 billion pounds.
Interest rates of small savings schemes static due to interest burden on banks
Small savings schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), Post Office Savings Scheme and Sukanya Samriddhi Yojana are vital savings instruments for the common man, as they provide long-term benefits. However, given that both public and private sector banks have raised their term deposit as well as home loan rates drastically since May 2022, keeping the rates of small savings schemes unchanged for the past two years has come as a surprise.
Benchmark bond yield fell by 10 bps on easing crude oil prices
At 1.42 p.m., yield on 6.54 per cent -2032 bond were trading at 7.1696 per cent, sharply down from its previous close on 7.2894 per cent on Friday. Indian financial markets were closed on Monday and Tuesday on account of Independence Day and Parsi New year, respectively. "Easing crude oil prices and inflation print resulted in falling yields on bonds today," a dealer with a state-owned bank said.
Foodgrain production estimated to be record 315.72 MT, up by 4.98 MT in 2020-21
The fourth advance estimates of production of major agricultural crops for the year 2021-22 have been released by the Union Ministry of Agriculture and Farmers Welfare. The production during 2021-22 is higher by 25 million tonnes than the previous five years' (2016-17 to 2020-21) average production of foodgrains.
Wholesale Price Index (WPI) comes down to 13.93% in July
The wholesale price index (WPI) had spiked to 15.18 per cent during the month of June. The WPI in July 2021 was at 11.57 per cent. Inflation in July, 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum and natural gas, basic metals, electricity, chemicals & chemical products, food products, etc., as compared to the corresponding month of the previous year, said the ministry.
Amul hikes milk prices by Rs 2 per litre
In a statement, Amul Dairy said in Gujarat, Delhi-NCR, Mumbai, West Bengal, its Taza milk 500 ml will cost Rs 25, Shakti 500 ml pouch Rs 28 and Gold Rs 31. Rs 2 per litre is increased for three ranges of milk." According to Amul, the hike is just a four per cent increase in price and lower than prevailing food inflation. Justifying the hike in prices, Amul said production and operation cost of milk has increased.
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