Shaktikanta Das, concluding his six-year term as India's central bank governor, navigated the RBI through a pandemic and digitization, defying initial skepticism. Despite lacking formal economic training, he prioritized financial stability, built up forex reserves, and fostered a modern digital payments system. His successor, Sanjay Malhotra, inherits a strong foundation but faces global market uncertainties.
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The sensex saw a strong rally driven by local buying, closing 610 points higher, above the 74K mark. Over the last two sessions, it gained 1,350 points or 1.9%. Despite foreign funds selling, domestic net buying helped boost market capitalization by Rs 4.5 lakh crore.
Bitcoin experienced its first weekly decline since Trump's election win, dropping over 7% due to the Fed's cautious policy outlook. This impacted the broader crypto market, which fell about 10%. Experts predict a choppy short-term outlook but remain bullish for Bitcoin into early 2025, with a significant options expiry event expected on December 27th.
Wholesale price inflation eased to a three-month low of 1.89% in November, primarily due to falling food prices, especially vegetables. Experts predict a 0.25% interest rate cut by the RBI in February. While manufactured product inflation rose slightly, overall inflation is expected to remain within the target range, approaching 4% by March 2025.
Yes Bank disclosed that it has received a demand notice for Rs 2,209 crore from the income tax department for the 2019-20 assessment year. Although the reassessment confirmed the original income assessment without additional changes, an unexpected demand including interest has been raised against the bank.
Economist Thomas Piketty addressed India's extreme inequality, second only to South Africa. He advocated for a 2% wealth tax on the ultra-rich to fund public services and broaden the tax base, citing China's success with increased tax revenue and reduced inequality. He emphasized India's potential for faster growth and poverty reduction with less inequality.
Apple has unveiled a $500 billion investment plan for the US over the next four years, which includes a significant AI server factory in Texas and 20,000 new R&D jobs. This initiative aligns with Apple's ongoing commitment to American innovation and manufacturing. CEO Tim Cook's announcement follows a recent meeting with President Trump, amid ongoing US tariffs on Chinese goods.
Kolkata-based logistics firm WCIL has secured a Rs 139-crore material handling contract from Vedanta Ltd for its Jharsuguda plant, spanning four years. This strengthens WCIL's relationship with Vedanta and opens doors for future mining projects. The firm reported notable sales and profit growth for the year ending March 2024. WCIL also raised Rs 492 crore through its IPO.
Bank loans continue to show no stress at the macro level, remaining well below the long-term trend as a percentage of GDP. By Dec 2024, the growth in overall bank credit slowed to 7.7% due to higher lending rates and increased capital requirements. Asset quality has improved with the GNPA ratio dropping to a 12-year low of 2.6%.
Finance Minister Nirmala Sitharaman, presenting the Union budget 2025, announced plans for 1.5 lakh rural post offices to boost the rural economy. The budget includes a new urea plant in Assam and enhanced investment limits for MSMEs. The government will also support the National Cooperative Development Corporation to aid small businesses and farmers.
Sukanya Samriddhi Yojana (SSY) is a government savings scheme for the girl child. It offers an 8.2% interest rate and tax benefits under Section 80C. Parents can invest up to Rs 1.5 lakh annually.