RBI's recent bulletin emphasizes the importance of foreign exchange interventions for emerging markets like India. These actions help stabilize capital flow volatility, with RBI moderating currency swings through both purchases and sales. This strategy aims to manage volatility and prevent financial risks, as highlighted by Michael Patra and co-authors.
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Microsoft CEO Satya Nadella, after pledging $3 billion investments in India for AI and cloud, emphasized the importance of security, privacy, and trust in tech platforms. Speaking at the ‘Microsoft AI Tour’ in New Delhi, he highlighted the need for robust safety protocols alongside technological advancements, ensuring systems remain secure and trusted as AI becomes more integrated into society.
Byju’s interim resolution professional Pankaj Shrivastava has convened a committee of creditors meeting to vote on a permanent resolution professional. Glas Trust Company, holding 99.41% voting rights, can pass its preferred nominee. Previous resolution decisions were criticized by NCLT, leading to potential disciplinary action and Misconduct investigation, amid insolvency proceedings involving dues owed to BCCI.
UPI continues to set records, with March seeing 1,830 crore transactions worth Rs 24.8 lakh crore, a 36% rise in volume and 25% increase in value year-on-year. The platform now processes 59 crore transactions daily, averaging Rs 79,910 crore in daily value, showcasing significant growth.
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.
The rupee depreciated by 2.8% against the US dollar in 2024, marking its seventh consecutive year of decline. Contributing factors included RBI's forex intervention strategy, a strong US dollar, and capital outflows due to a shift in investor focus from India to China. Structural issues like inflation differentials and current account deficits also played a role.
Goldman Sachs has cut price targets for Indian IT stocks due to anticipated lower revenue growth amid US economic uncertainty. With significant revenue from the US, companies like LTIMindtree were downgraded while TCS is viewed more favorably. The brokerage highlighted ongoing challenges including muted discretionary spending and potential project delays due to macroeconomic conditions.
Federal Reserve Chair Jerome Powell stated that the central bank will keep interest rates unchanged, citing ongoing inflation above the 2% target and a strong job market. Although future rate cuts are uncertain, Powell emphasized the prudence of maintaining the current policy stance amidst economic changes under the Trump administration.
Reliance Industries Ltd has invested $13 billion in acquisitions over the past five years, shifting focus from oil to clean energy, telecom, retail, and media sectors. Recent acquisition Karkinos Healthcare boosts its digital healthcare presence. Major investments include Hathway Cable and REC Solar. RIL aims to enhance its healthcare services using advanced technology and extensive networks.
President Trump’s new tariff plan includes a 10% universal tariff on imports, followed by country-specific tariffs. China faces the highest tariffs, up to 54%. India’s textile, electronics, and machinery sectors may benefit from competitive advantages. However, to capitalize on these opportunities, India must address structural issues and enhance manufacturing capabilities.
Venture capital investments in India saw significant growth from January to November 2024, reaching $16.77 billion across 888 deals. The technology sector secured $6.50 billion. In China, VC funding activities experienced a decline, with a disclosed funding value of $32.3 billion across 2,313 deals.