News Arena

Join us

Home
/

indian-economy-awaits-rbi-s-moves-post-results

Economy

Indian economy awaits RBI's moves post results

Experts are closely monitoring the RBI's stance on interest rates and inflation expectations. Kapoor warns of potential risks to India's growth outlook due to global economic slowdowns and geopolitical tensions, suggesting that a rate cut cycle in India may not commence before the last quarter of FY25.

News Arena Network - New Delhi - UPDATED: June 4, 2024, 01:33 PM - 3 mins read

As the nation awaits the election results on June 4 and the Reserve Bank of India's (RBI) decision on interest rates on June 7, economic stakeholders are keenly watching for signs of continuity and stability.

Indian economy awaits RBI's moves post results


The past two weeks have been pivotal for the Indian economy, marked by robust earnings and impressive GDP growth.

 

As the nation awaits the election results on June 4 and the Reserve Bank of India's (RBI) decision on interest rates on June 7, economic stakeholders are keenly watching for signs of continuity and stability.

 

While election outcomes may not directly affect the economy, the likelihood of the NDA Government, led by the BJP, retaining powe has significant implications for policy continuity.

 

Analysts believe this could ensure the sustained momentum of India’s GDP growth, which currently stands at a promising 8.2% for FY24.

 

A report by Motilal Oswal highlights the potential positive impact of a BJP victory on the economy and capital markets. "The victory of PM Modi/BJP augurs well for the economy and capital markets as it provides stability and continuity in policymaking with a single-party majority government, which will be expected to continue pushing its economic agenda," the report stated.

 

It noted that India's economic indicators are currently favorable, with manageable inflation, stable currency, and solid corporate earnings.

 

Garima Kapoor, Senior Vice President and Economist at Elara Securities, maintains a growth projection of 7% for FY25.

 

She emphasized the significance of the upcoming budget in July 2024, which is expected to outline a 100-day plan offering further policy clarity. Kapoor points out that strong government capital investment is crowding in private investments, which could further enhance economic growth.

 

However, concerns remain, particularly regarding the recent contraction in exports by 7.7% year-on-year.

 

Economist Rumki Majumdar from Deloitte India acknowledged this decline but notes that the continued strength in electronics exports is a positive sign.

 

She attributed the growth in the services sector to robust performance in financial, real estate, and business services.

 

Attention have now turned to the RBI, as the Monetary Policy Committee begins its quarterly meeting on June 5, just a day after the election results.

 

Experts are closely monitoring the RBI's stance on interest rates and inflation expectations. Kapoor warns of potential risks to India's growth outlook due to global economic slowdowns and geopolitical tensions, suggesting that a rate cut cycle in India may not commence before the last quarter of FY25.

 

The private capital expenditure (capex) cycle is also under scrutiny. The prolonged election process has moderated capex activities, but a post-election pickup is anticipated, supported by increased GST collections and surplus dividends from the RBI.

 

Analysts believe this could ensure the sustained momentum of India’s GDP growth, which currently stands at a promising 8.2% for FY24.

 

 

Related News
The benchmark Sensex rebounded by 1,293 points, while the Nifty surged to a record high on Friday. This significant recovery broke a five-day losing streak, spurred by heavy value buying at lower levels and a strong rally in blue-chip stocks like Infosys, Airtel, and Reliance Industries.

Sensex jumps 1,293 points, Nifty peaks

July 26, 2024, 07:28 PM - 2 mins read

After five consecutive sessions of decline, the bulls took charge, pushing the benchmark indices back into the green. A sharp rally in metal and pharma stocks fueled the recovery, with the Sensex rising by 0.17% to 80,177 and the Nifty climbing 0.24% to 24,464 on Friday.

Sensex, Nifty rise after 5-day decline

July 26, 2024, 12:04 PM - 2 mins read

Parle has once again clinched the title of the nation's top brand for in-home consumption, according to Kantar’s annual Brand Footprint India 2024 report. 

Parle remains India's favorite FMCG brand

July 26, 2024, 11:39 AM - 2 mins read

The Odisha Assembly building. File photo.

Odisha govt unveils ₹2.65 lakh cr budget for FY’25

July 26, 2024, 07:57 AM - 4 mins read

The American economy, buoyed by robust consumer spending, is believed to have regained some momentum this spring after starting 2024 on a sluggish note.

U.S. Economy rebounds with 1.9% GDP growth

July 25, 2024, 05:30 PM - 3 mins read

The Indian stock market experienced a rough start today, influenced by global trends. The BSE Sensex opened significantly lower, down 606.77 points or 0.76%, at 79,542.10.

BSE Sensex down 606 points on opening bell

July 25, 2024, 12:17 PM - 2 mins read

The Indian government is reportedly considering easing investment restrictions on certain Chinese firms. This potential policy shift is expected to provide a significant boost to India’s manufacturing sector.

India may ease investment rules for Chinese firms

July 25, 2024, 11:55 AM - 2 mins read

A study by market regulator SEBI has shown that a staggering 7 out of 10 individual intraday traders in the equity cash segment made losses in the financial year 2022-23.

70% of Intraday traders suffered losses in FY23: SEBI

July 24, 2024, 07:11 PM - 3 mins read

The benchmark BSE Sensex continued its downward spiral for the fourth consecutive day. On Wednesday, the index declined by a notable 280 points, wrapping up the session at 80,148.88.

Sensex falls 280 points on fourth day of losses

July 24, 2024, 06:30 PM - 2 mins read

https://www.instagram.com/thelaughclubofficial/
https://www.instagram.com/burraahhh_/

Economy

See All
The benchmark Sensex rebounded by 1,293 points, while the Nifty surged to a record high on Friday. This significant recovery broke a five-day losing streak, spurred by heavy value buying at lower levels and a strong rally in blue-chip stocks like Infosys, Airtel, and Reliance Industries.

Sensex jumps 1,293 points, Nifty peaks

July 26, 2024, 07:27 PM - 2 mins read

On Friday, all Sensex shares except for Nestle closed in the green. Bharti Airtel emerged as the biggest gainer, rising by over 4.51%. Other significant gainers included Adani Ports, Sun Pharma, Tata Steel, HCL Technologies, Infosys, JSW Steel, and Mahindra & Mahindra. Nestle was the sole loser, edging down by 0.07%.

Read more
The government announced its support for coal gasification projects, recognizing their significant potential to transform coal into a variety of valuable products.

Govt backs coal gasification to cut imports, boost economy

July 26, 2024, 06:02 PM - 2 mins read

By promoting coal gasification, the government aims to achieve partial import substitution for oil and gas, while also making cleaner use of the country’s abundant coal reserves. In a statement, the coal ministry emphasized that these projects could help conserve foreign exchange and bolster domestic industries.

Read more
After five consecutive sessions of decline, the bulls took charge, pushing the benchmark indices back into the green. A sharp rally in metal and pharma stocks fueled the recovery, with the Sensex rising by 0.17% to 80,177 and the Nifty climbing 0.24% to 24,464 on Friday.

Sensex, Nifty rise after 5-day decline

July 26, 2024, 12:04 PM - 2 mins read

Among the 13 indices, the Bank Nifty was the only laggard, dragged down by ICICI Bank, Federal Bank, and Axis Bank. "In the near term, banks are likely to underperform due to subdued earnings from major lenders like Axis Bank," noted an expert.

Read more
Parle has once again clinched the title of the nation's top brand for in-home consumption, according to Kantar’s annual Brand Footprint India 2024 report. 

Parle remains India's favorite FMCG brand

July 26, 2024, 11:39 AM - 2 mins read

Over the past five years, CRPs have surged by nearly 33 percent, although this year’s growth is a tad slower than last year's pace. The report noted a general slowdown in CRPs across most sectors, with dairy being the sole exception. Parle’s continued reign at the top is followed by other household names: Britannia, Amul, Clinic Plus, and Tata Consumer Products.

Read more
The Odisha Assembly building. File photo.

Odisha govt unveils ₹2.65 lakh cr budget for FY’25

July 26, 2024, 07:56 AM - 4 mins read

Emphasising agriculture and women's empowerment, Chief Minister Mohan Charan Majhi presented a budget that is approximately 15 per cent larger than the previous year's estimate of Rs 2.30 lakh crore.

Read more
The American economy, buoyed by robust consumer spending, is believed to have regained some momentum this spring after starting 2024 on a sluggish note.

U.S. Economy rebounds with 1.9% GDP growth

July 25, 2024, 05:30 PM - 3 mins read

Despite the anticipated uptick, the U.S. economy, the largest in the world, has evidently cooled due to the highest borrowing rates in decades. From mid-2022 through the end of 2023, the annualised GDP growth had exceeded 2% for six consecutive quarters.

Read more
Benchmark indices Sensex and Nifty remained under pressure for the fifth consecutive session on Thursday as investors offloaded metal, banking, and finance stocks amidst a bleak global market trend.

Heavy selling in metals, banking drags Sensex, Nifty down

July 25, 2024, 05:20 PM - 3 mins read

From the Sensex pack, Axis Bank declined over 5% following its underwhelming June quarter earnings. Other laggards included Nestle, Titan, ICICI Bank, Tata Steel, IndusInd Bank, ITC, JSW Steel, and State Bank of India. Conversely, Sun Pharma, Kotak Mahindra Bank, Bajaj Finance, and Power Grid ended in positive territory.

Read more
Shares of Adani Green Energy Ltd rocketed nearly 8% on Thursday following the company’s announcement of a staggering 95% increase in consolidated net profit for the June quarter.

Adani Green energy shares surge after stellar profit report

July 25, 2024, 05:12 PM - 1 min read

Adani Green Energy CEO Amit Singh stated, "Adani Green is well on track to achieve its 2030 capacity target of 50 GW, including at least 5 GW energy storage, in the form of pumped hydro, with sites already secured and clear visibility on evacuation".

Read more
The Indian stock market experienced a rough start today, influenced by global trends. The BSE Sensex opened significantly lower, down 606.77 points or 0.76%, at 79,542.10.

BSE Sensex down 606 points on opening bell

July 25, 2024, 12:17 PM - 2 mins read

Sectoral stocks on the NSE showed a broad decline, with sectors such as Banking, Financial Services, FMCG, IT, Metal, Pharma, PSU Banks, Private Banks, Realty, Healthcare, Consumer Durables, and Oil and Gas all opening in negative territory. However, Media and Auto stocks managed to stay in the green during the initial trading hour.

Read more
The Indian government is reportedly considering easing investment restrictions on certain Chinese firms. This potential policy shift is expected to provide a significant boost to India’s manufacturing sector.

India may ease investment rules for Chinese firms

July 25, 2024, 11:55 AM - 2 mins read

According to a report by Bloomberg, discussions are underway to possibly grant exemptions to Chinese companies in high-tech sectors such as solar modules and critical minerals.  Ministry of Commerce and Industry, along with other security-related departments, is currently examining the feasibility and implications of such exemptions.

Read more
A study by market regulator SEBI has shown that a staggering 7 out of 10 individual intraday traders in the equity cash segment made losses in the financial year 2022-23.

70% of Intraday traders suffered losses in FY23: SEBI

July 24, 2024, 07:06 PM - 3 mins read

The study highlights a jaw-dropping 300 percent surge in the number of individuals participating in intraday trading in the equity cash segment in 2022-23 compared to 2018-19. The promise of quick profits has attracted many new traders. However, they might want to reconsider their strategies, as the data reveals that the average number of trades by loss-makers was higher than that of profit-makers.

Read more
The benchmark BSE Sensex continued its downward spiral for the fourth consecutive day. On Wednesday, the index declined by a notable 280 points, wrapping up the session at 80,148.88.

Sensex falls 280 points on fourth day of losses

July 24, 2024, 06:30 PM - 2 mins read

The day's trading saw the 30-share Sensex plummet as much as 678.53 points, or 0.84 percent, to hit a low of 79,750.51 before clawing back some ground. By the end of the session, 19 of its components were in the red, leaving only 11 in the green.

Read more

TOP CATEGORIES

  • Paris Olympics

QUICK LINKS

About us Rss FeedSitemapPrivacy PolicyTerms & Condition
logo

2024 News Arena India Pvt Ltd | All rights reserved | The Ideaz Factory