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Markets to watch inflation data and global trends in shortened holiday week-Telangana Today

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The movement of the rupee against the dollar and global oil benchmark Brent crude would also influence trading in the equity market.

Published Date – 10:14 AM, Sun – 13 August 23


Analysts: Markets to watch inflation data and global trends in shortened holiday week



New Delhi: Inflation data, global trends and foreign fund trading activity would guide equity market movement in a holiday-shortened week, analysts said. Stock markets would remain closed on Tuesday for Independence Day.

“Macroeconomic indicators, rupee and FII activities will be pivotal in shaping market trends in the coming days. Domestically, inflation figures hold significance. Globally, attention will be directed toward Japan’s inflation data, China’s IIP numbers, and the US retail sales statistics,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

On the macroeconomic front, wholesale and retail inflation numbers for July would be announced on Monday.

“India’s WPI and CPI inflation data, exports and imports numbers will be in focus in the coming days. We expect the Indian market will continue to remain rangebound and will take further cues from US jobs data and minutes of the Federal Open Market Committee (FOMC) meeting,” Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.

Hindustan Copper and ITC would announce their earnings this week.

The movement of the rupee against the dollar and global oil benchmark Brent crude would also influence trading in the equity market.

India’s industrial production growth declined to a three-month low of 3.7 per cent in June mainly due to poor showing by the manufacturing sector, according to official data released on Friday.

The BSE benchmark declined 398.6 points or 0.60 per cent and the NSE Nifty fell by 88.7 points or 0.45 per cent last week.

“The Indian market experienced bearishness during the last week that focused on economic data as inflation concerns dented domestic sentiments,” said Vinod Nair, Head of Research at Geojit Financial Services.

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NRIs, young professionals want a slice of Hyderabad’s plush realty-Telangana Today

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Hyderabad’s infra received a shot in the arm with CM KCR keen on developing amenities not just for immediate needs but also to meet challenges of decades to come

Published Date – 07:40 AM, Mon – 14 August 23


NRIs, young professionals want a slice of Hyderabad’s plush realty

Prominent developers say the city has been raising the bar consistently for real estate.

Hyderabad: Blessed with abundant growth potential and a government that is keen and determined to propel it with positive policy-making, Hyderabad’s real estate has been on a growth trajectory in an unprecedented manner.

The city’s positive vibes, despite the disconcerting real estate scenario in different parts of the country, continue to pervade all around and not just fulfil the property aspirations of the local populace but also entice investors from across the country. The desire for a slice of Hyderabad’s appealing real estate has gone up sharply among NRIs and young Indian professionals across the globe.

Rejecting critics and pessimists at every step, Hyderabad retains its lustre as a sought-after destination among property seekers. The city’s growth story is dotted with shiny examples; the very recent being the auction at Kokapet’s Neopolis layout, which shattered records and scaled a new high, with an acre being sold for Rs 100.75 crore. The auction that followed at Budwel also promised to fetch Rs 3,625.73 crore for just 14 plots.

Prominent developers admit that Hyderabad has been raising the bar consistently for real estate even when some other big cities struggle to find a footing after the pandemic and to grow. The outcome of the Neopolis layout auction surpassed the calculations of many. A leading developer in the city, however, said the high bidding should not be surprising. “It did cross our estimates. But, it only reflects the high positive energy that Hyderabad brings to the real estate market,” he added.

The city’s infrastructure received a shot in the arm with Chief Minister K Chandrashekhar Rao keen on developing amenities not just for immediate needs but also to effectively meet the challenges of decades to come. A series of measures aimed at improving infrastructure and developing an unheard-of road network ranging from slip roads to the regional ring road have come as a boon as Hyderabad continues its rapid growth in ever-widening circles.

Seniors in the real estate industry concede that the focus to redesign and redefine the city’s infrastructure was something that even they had not envisaged. “The State government’s efforts are unprecedented and are on the right track. Hyderabad never had it so good,” says a developer, who has been involved in city projects for nearly two decades.

The rising demand has been propelling the property prices in the last few years, yet Hyderabad remains one of the most affordable locations on the realty map. “The quality of infrastructure is improving and that in turn, improves the quality of life for citizens. For this, a prospective property seeker is willing to pay more,” points out another builder.

Enjoys undisputed position on India’s realty map

Comparative analysis, reports and data collation by leading real estate consultants continue to underscore Hyderabad’s undisputed position on the country’s realty map.

A recent report by Knight Frank India recorded an impressive surge of Hyderabad’s real estate, with property registrations in July 2023 rising by 26 per cent compared to the same period last year.

Anarock’s analysis pointed out that among the top seven cities of the country, Hyderabad recorded the highest jump of 42 per cent in the average price of luxury homes over the last five years.

CBRE South Asia, India’s leading real estate consulting firm, in its findings of Jan-Jun ’23 residential sector data, said Hyderabad recorded the highest percentage increase in sales on a year-on-year basis with a whopping 14-fold growth.

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Lytus Technologies launches payment gateway for Indian consumers-Telangana Today

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This marks the entry of Lytus Technologies into the Indian fintech market through the introduction of its payments gateway offerings to businesses in the Indian cable and broadband sector.

Updated On – 03:27 PM, Mon – 14 August 23


Lytus Technologies launches payment gateway for Indian consumers



Hyderabad: Nasdaq-listed Lytus Technologies Holdings, a global technology-driven services company, recently announced the launch of its payments gateway for Indian consumers. This marks the entry of Lytus Technologies into the Indian fintech market through the introduction of its payments gateway offerings to businesses in the Indian cable and broadband sector.

The Indian fintech market is currently the second largest market in the world by deal volume. It is expected to grow to USD 2.1 trillion by 2030 at a CAGR of more than 18%. With a fintech adoption rate of 87% against the global average of 64%, India is one of the fastest growing fintech markets in the world, according to a press release.

Shreyas Shah, CFO of Lytus Technologies said Lytus’s unique business model was particularly suited to expand its fintech services offering to its nationwide base of nearly four million users.

“The company intends to invest 50 million dollars to expand its fintech business in India over the next five years. While the initial rollout is focused on a B2B model, it plans to extend services to its individual subscribers within the next 12 months,” he said.

Lytus had recently acquired Sri Sai Cable and Broadband Private Limited, one of the leading regional Multi Service Operators (MSO) based in Telangana.

According to Lytus Technologies CEO Dharmesh Pandya, Telangana was a very progressive market, and the consumers were open for tech enabled solutions.

“This presents a tremendous opportunity for us at Lytus to leverage the existing customer base of our recently acquired company, Sri Sai Cable, and introduce value-added services to further expand our reach. Reports also showcase that there are 83 subscribers for every 100 residents and Telangana boasts a high internet penetration rate, yet there remains untapped potential in rural areas where the subscription rate is lower at 57 subscribers for every 100 residents. This presents an ideal opportunity for Lytus and Sri Sai Cable to extend our services into these underserved regions,” he added.

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WPI inflation stays in negative for fourth month at (-) 1.36 pc in July, food prices skyrocket-Telangana Today

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The inflation, however, has inched up from (-)4.12 per cent recorded in June fuelled by 62.12 per cent rise in vegetable prices

Published Date – 05:40 PM, Mon – 14 August 23


WPI inflation stays in negative for fourth month at (-) 1.36 pc in July, food prices skyrocket

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New Delhi: Wholesale price inflation remained in the negative territory for the fourth month in a row in July at (-)1.36 per cent, even though prices of food items, especially vegetables, skyrocketed.

The inflation, however, has inched up from (-)4.12 per cent recorded in June fuelled by 62.12 per cent rise in vegetable prices.

In July last year, wholesale price index (WPI) was 14.07 per cent.

The WPI based inflation rate in food articles jumped 14.25 per cent in July, 2023, against 1.32 per cent in June.
“Decline in the rate of inflation in July, 2023 is primarily contributed by fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products,” the commerce and industry ministry said on Monday.

CareEdge Chief Economist Rajani Sinha said if the food prices continue to trend upward, the deflationary trend could end, and WPI inflation could turn marginally positive in the coming months.

“Additionally, the uptrend in global crude oil prices, global edible oil prices, and uneven monsoon distribution domestically pose an upside risk to the outlook. Nevertheless, we expect the WPI inflation for this fiscal at a subdued level (in the range of 1-2 per cent) with positive implications for the retail inflation trajectory,” Sinha said.

Fuel and power basket inflation eased to (-)12.79 per cent in July from (-)12.63 per cent in June.

In manufactured products, the inflation rate was (-)2.51 per cent as against (-)2.71 per cent in June.

Barclays Head of EM Asia (ex-China) Economics Research Rahul Bajoria said the softer pace of decline in WPI month on month was driven almost entirely by vegetable prices, which rose materially.

Apart from vegetables, increases were visible in cereals and pulses, where inflation was 8.31 per cent and 9.59 per cent, respectively.

The RBI last week kept interest rates unchanged at 6.5 per cent for the third straight meeting but signalled tighter policy if food prices drive inflation higher.

“The job on inflation is still not done,” RBI Governor Shaktikanta Das had said. “Inflationary risks persist amidst volatile international food and energy prices, lingering geopolitical tensions and weather-related uncertainties.” The RBI raised its inflation forecast for the current financial year ending March 2024 to 5.4 per cent from 5.1 per cent earlier, citing pressures from food prices.

The central bank takes into account retail or consumer price index based inflation for formulating monetary policy. Retail inflation data for July is scheduled to be released later in the day.

“We do not expect any further rate moves for the rest of the fiscal year, but any more supply shocks could raise the risks of an incrementally hawkish MPC, especially in the next two meetings,” Bajoria added.

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Rupee falls 29 paise to close at all-time low of 83.11 against US dollar-Telangana Today

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The rupee depreciated 29 paise to settle at an all-time low of 83.11 (provisional) against the US dollar on Monday

Published Date – 06:25 PM, Mon – 14 August 23


Rupee falls 29 paise to close at all-time low of 83.11 against US dollar



Mumbai: The rupee depreciated 29 paise to settle at an all-time low of 83.11 (provisional) against the US dollar on Monday, weighed down by a strong greenback overseas and firm crude oil prices in the international markets.

Foreign fund outflows also weighed on the local unit, analysts said.

At the interbank foreign exchange, the domestic unit opened at 83.04 against the dollar, and it finally ended the day at 83.11 (provisional), registering a fall of 29 paise from its previous close.

During the session, the local unit touched a peak of 82.94 and a low of 83.11. On Friday, the domestic unit had settled 16 paise lower at 82.82 against the dollar.

The rupee fell on weak domestic markets and a strong US dollar. India’s IIP also grew at a slower pace as compared to the forecast, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

The dollar gained after US PPI data was higher than forecast, and safe haven demand on risk aversion in global markets.

“We expect the rupee to trade with a negative bias on risk aversion in global markets and rising US dollars. FII outflows may also weigh on the rupee.

“However, a decline in crude oil prices may support the rupee at lower levels. Traders may take cues from India’s inflation data which is expected to jump to 6.4 per cent from 4.81 per cent in the previous month. We expect the USD/INR spot to trade in the range of 82.50 to 83.50 in the near term,” Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.01 per cent to 102.85.

Brent crude futures, the global oil benchmark, declined by 0.28 per cent to USD 86.57 per barrel.

On the domestic equity market front, the 30-share BSE Sensex closed 79.27 points or 0.12 per cent higher at 65,401.92 points. The broader NSE Nifty advanced 6.25 points or 0.03 per cent to close at 19,434.55 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth Rs 3,073.28 crore, according to exchange data.

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Market consolidating at higher levels in absence of any positive trigger-Telangana Today

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Domestic equities had weak handover from its global peers as high US inflation and mounting trouble in China’s real estate market dented the sentiments

Published Date – 06:40 PM, Mon – 14 August 23


Market consolidating at higher levels in absence of any positive trigger



New Delhi: After a tepid start, Nifty made a gradual recovery during the day as buying emerged at lower levels in index heavyweights, Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, has said.

Domestic equities had weak handover from its global peers as high US inflation and mounting trouble in China’s real estate market dented the sentiments. Even on the domestic front, IIP data came at 3 months low. The index closed with minuscule gains of 6 points at 19,435 levels.

Except for IT, FMCG, and Media, all sectors ended in red, he said. Caution was seen in the market today on account of fragile global factors and ahead of India’s CPI data that would be released later on Monday. “We believe inflation is likely to pick up in July-August 23, entirely led by vegetables. We expect the headline inflation at 7.5 per cent YoY in July 23, which is well above the RBI’s tolerance band. Even WPI inflation came in a little higher than expectation. Persistent selling by FIIs since July end too is keeping the Indian equities on edge. Thus the market is witnessing consolidation at higher levels in the absence of any positive trigger,” he said.

“We expect this trend to continue in the near term as a series of macro data around the world and FOMC meeting minutes will be released during the week which could keep markets subdued. Indian equities will remain closed on Tuesday on the occasion of Independence Day and might stay lackluster on Wednesday on account of the Parsi New Year,” he said.

Vinod Nair, Head of Research at Geojit Financial Services said following weak performances in Asian markets, the domestic indices commenced the day with a negative bias, prompted by discouraging domestic industrial data along with concerns over demand from China.

However, the indices managed to recover from their initial losses, ending the day on a relatively neutral note. India’s wholesale inflation persisted in negative territory, albeit moderating to -1.36 per cent, as the decline in fuel prices was counterbalanced by higher food costs.

India’s CPI inflation, due to be released on Monday, is anticipated to exceed the RBI’s tolerance level of 6 per cent due to mounting pressure from elevated food prices, he said.

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Exports decline 16 pc to USD 32.25 billion in July; trade deficit shrinks to USD 20.67 billion-Telangana Today

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India’s exports contracted by 15.88 per cent to USD 32.25 billion in July this year due to global demand slowdown

Published Date – 07:00 PM, Mon – 14 August 23


Exports decline 16 pc to USD 32.25 billion in July; trade deficit shrinks to USD 20.67 billion



New Delhi: India’s exports contracted by 15.88 per cent to USD 32.25 billion in July this year due to global demand slowdown and fall in the outbound shipments of petroleum, gems and jewellery, and other key sectors, according to official data released on Monday.

Imports during the month also declined by 17 per cent to USD 52.92 billion from USD 63.77 billion in July 2022. This led to narrowing of trade deficit to USD 20.67 billion as gainst USD 25.43 billion in July 2022.

During April-July this fiscal, the overall exports dipped by 14.5 per cent to USD 136.22 billion. Imports during the period declined by 13.79 per cent to USD 213.2 billion.

Briefing media about the data, commerce secretary Sunil Barthawal said that the global headwinds are still there.
There is decline in exports and imports of several countries including the key Indian destinations like the US and Europe. In both these regions, imports are declining continuously.

However, he expressed hope that India’s exports of goods and services during 2023-24 would be higher than that of the previous fiscal year’s of USD 776 billion.

Barthwal also said that this year’s exports should be looked from a point of view that in last two years India’s exports growth rate was highest. So the base was high.

Sectors which are doing good include electronics and that means “India is integrating into global value chains and moving up in value chains”, the secretary said.

At the import front, gold imports increased by 2.7 per cent to USD 13.2 billion during the first four months of the current fiscal as against USD 12.86 billion in April-July 2022.

Oil imports during the period declined by 23.4 per cent to USD 55 billion as against 71.74 billion a year ago.

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RBI to launch pilot for ‘Public Tech Platform’ on Aug 17-Telangana Today

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The Reserve Bank will launch a pilot project for ‘Public Tech Platform’ that seeks to facilitate credit through seamless flow of required digital information

Published Date – 07:05 PM, Mon – 14 August 23


RBI to launch pilot for ‘Public Tech Platform’ on Aug 17



Mumbai: The Reserve Bank will launch a pilot project for ‘Public Tech Platform’ that seeks to facilitate credit through seamless flow of required digital information to lenders.

During the pilot, the platform would focus on products such as Kisan Credit Card loans of up to Rs 1.6 lakh per borrower, dairy loans, MSME loans (without collateral), personal loans and home loans through participating banks, the central bank said in a statement.

The platform would enable linkage with services such as Aadhaar e-KYC, land records from onboarded state governments (Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Maharashtra), satellite data, PAN validation, Aadhaar e-signing and house/property search data, among others.

“Based on the learnings, the scope and coverage would be expanded to include more products, information providers and lenders during the pilot,” the RBI said, and added the pilot of the platform would commence on August 17, 2023.

RBI said with rapid progress in digitalisation, India has embraced the concept of digital public infrastructure which encourages banks, NBFCs, FinTech companies and startups to create and provide innovative solutions in payments, credit, and other financial activities.

For digital credit delivery, the data required for credit appraisal are available with different entities like central and state governments, account aggregators, banks, credit information companies, and digital identity authorities.

However, they are in separate systems, creating hindrance in timely delivery of rule-based lending.

“The Public Tech Platform would enable delivery of frictionless credit by facilitating seamless flow of required digital information to lenders.

“The end-to-end digital platform will have an open architecture, open Application Programming Interfaces (APIs) and standards, to which all financial sector players can connect seamlessly in a ‘plug and play’ model,” the RBI said.

The platform is intended to be rolled out as a pilot project in a calibrated fashion, both in terms of access to information providers and use cases.

It would bring about efficiency in the lending process in terms of reduction of costs, quicker disbursement, and scalability.

The platform is being developed by Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the central bank.

An announcement in this regard was made by RBI Governor Shaktikanta Das while unveiling the bi-monthly monetary policy on August 10.

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Retail inflation jumps to new high of 7.44 per cent in July 2023-Telangana Today

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India’s retail inflation measured by consumer price index (CPI), saw a huge rise to 7.44 per cent in July owing to hike in food prices

Published Date – 07:35 PM, Mon – 14 August 23


Retail inflation jumps to new high of 7.44 per cent in July 2023

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New Delhi: India’s retail inflation measured by consumer price index (CPI), saw a huge rise to 7.44 per cent in July owing to hike in food prices, as food inflation witnessed a massive jump of 11.51 per cent.

The rise in retail and food inflation in July is huge compared to the fact that retail inflation in June was 4.87 per cent, while food inflation was 4.55 per cent. The July inflation has also breached RBI’s tolerance limit of 6 per cent.

The big spike in retail inflation in July is mainly due to increase in prices of fruits and vegetables, cereals, pulses, milk products and even clothing and footwear, according to figures released by ministry of statistics and programme implementation on Monday. In July 2022, retail inflation was 6.71 per cent and food inflation was 6.69 per cent.

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Sensex, Nifty bounce back on fag-end buying in RIL, Infosys-Telangana Today

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Equity benchmark indices Sensex and Nifty bounced back from intra-day lows to settle in positive territory on Monday

Published Date – 07:40 PM, Mon – 14 August 23


Sensex, Nifty bounce back on fag-end buying in RIL, Infosys



Mumbai: Equity benchmark indices Sensex and Nifty bounced back from intra-day lows to settle in positive territory on Monday, helped by fag-end buying in index heavyweights Reliance Industries, Infosys and ICICI Bank amid a firm start in European markets.

The 30-share BSE Sensex climbed 79.27 points or 0.12 per cent to settle at 65,401.92. During the day, it fell 500.77 points or 0.76 per cent to 64,821.88.

The NSE Nifty gained 6.25 points or 0.03 per cent to end at 19,434.55.

“Markets continued to witness wild fluctuations due to weak Asian cues, but early optimism in European indices aided the recovery in local markets with the help of buoyancy in IT stocks. However, deflation and demand slowdown in China, coupled with concerns over more rate hikes in developed economies going ahead, have been taking the sheen out of equity markets.

“Investors are also wary of steady selling by foreign investors in local markets this month, which is causing traders to limit their exposure,” Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd, said.

From the Sensex pack, Infosys, Hindustan Unilever, Reliance Industries, ICICI Bank, Larsen & Toubro, Asian Paints, Nestle, Axis Bank, Wipro and Kotak Mahindra Bank were the major gainers.

JSW Steel, State Bank of India, Tata Steel, Bajaj Finserv, UltraTech Cement, IndusInd Bank, Tata Motors and Bajaj Finance were the major laggards.

In the broader market, the BSE smallcap gauge declined by 0.50 per cent, and the midcap index fell by 0.44 per cent.
Among the indices, metal declined by 1.81 per cent, commodities fell by 1.66 per cent, power (0.91 per cent), realty (0.65 per cent) and utilities (0.63 per cent) were among the major laggards.

FMCG, IT and teck were the gainers.

“Following weak performances in Asian markets, the domestic indices commenced the day with a negative bias, prompted by discouraging domestic industrial data, along with concerns over demand from China. However, the indices managed to recover from their initial losses, ending the day on a relatively neutral note,” said Vinod Nair, Head of Research at Geojit Financial Services.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended in the negative territory. European markets were trading mostly in the green. The US markets ended mostly lower on Friday.

The wholesale price-based inflation remained in the negative territory for the fourth straight month in July at (-) 1.36 per cent on easing fuel prices, even though food articles turned costlier.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,324.23 crore on Monday, according to exchange data.
Global oil benchmark Brent crude declined 0.33 per cent to USD 86.52 a barrel.

Equity markets will remain closed on Tuesday on account of Independence Day.