Market Pulse

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15-Nov-2019   09:17 Hrs IST Retail inflation may average at around 4% in FY20: SBI Research <p align="justify">SBI research in its Ecowrap report has said that retail inflation may average at around 4% in the current fiscal year (FY20). It said surplus rainfall in August and September is likely to keep food and vegetable prices elevated going forward. In October, inflation based on the Consumer Price Index (CPI) spiked to a 16-month high of 4.62% on costlier food items. Besides, in 2019 five states- Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, and Karnataka bore the brunt of excess rainfall and were affected by severe floods. The surplus rainfall during August and September seriously damaged many Kharif crops.</p><p align="justify">The report said ‘going forward, thus, food and vegetable prices could remain elevated and inflation prints in November still may be on a higher side due to the low base in 2018. We expect FY20 CPI to now average closer at 4%'. In the fourth bi-monthly monetary policy announced in October, RBI had projected at 3.5-3.7% for H2 of FY20 and 3.6% for the first quarter of FY21. The report further said even as food CPI will remain elevated, core CPI will go below 3% in this fiscal.</p><p align="justify">As per the report, the Reserve Bank of India (RBI) may cut repo rate in the upcoming December monetary policy meeting and may pause thereafter on concerns over inflation. It added that ‘We expect a December rate cut, but beyond December it will be a close decision (as inflation prints beyond October will remain elevated). Thus, it will be better if the rate cut is front loaded in December'.<br></p>
14-Nov-2019   09:40 Hrs IST Credit growth picks up rapid pace from September, jumps by Rs 1.08 lakh crore: SBI Research <p align="justify">State Bank of India's (SBI) Economic Research Department in its Ecowrap report has said that credit growth picked up rapid pace beginning September 2019 - jumping by Rs 1.08 lakh crore - mainly helped by housing, NBFC and lately MSME. The report further said the week up to Diwali has shown an increase in currency in circulation of Rs 30,871 crore from the previous week, thereby showing that people have been demanding cash in the festive season.</p><p align="justify">It mentioned that the sectoral data for the month of September 2019, indicates that for the first time in current fiscal credit to industry turned positive and jumped by Rs 9,700 crore, of which Rs 8,200 crore is attributable to MSME sector. The report highlighted, in September, the jump in retail credit at Rs 51,900 crore was nearly double that of August, of which housing loans jumped by 2.6 times. </p><p align="justify">Bank lending to NBFC sector has remained robust and the YTD growth of such is highest across all segments at 11.3 per cent. Besides, it said ‘we are less hopeful of a growth pick up in second quarter 2019-20. Out of 26 indicators, only 5 indicators were showing acceleration in September. This indicates the extend of demand slowdown in the economy is still significant and would take longer time to recover.'<br></p>
13-Nov-2019   09:20 Hrs IST Indian economy likely to grow 5% in FY20: SBI Research
11-Nov-2019   09:26 Hrs IST US, Indian trade negotiators end trade talks without any breakthrough
08-Nov-2019   09:18 Hrs IST Moody's lowers India's rating outlook to 'negative' from 'stable' on economic concern
07-Nov-2019   09:17 Hrs IST Indian govt needs to become more ‘transparent' on fiscal numbers: IMF
06-Nov-2019   09:20 Hrs IST Govt will soon use strong electoral mandate to usher in next wave of reforms: Sitharaman
05-Nov-2019   09:17 Hrs IST India decides not to join mega RCEP deal
04-Nov-2019   09:17 Hrs IST GST collection declines 5.29% to Rs 95,380 crore in October
01-Nov-2019   09:35 Hrs IST India's fiscal deficit reaches 93% of BE at Rs 6.52 lakh crore in April-September