The Reserve Bank of India is anticipated to cut the repo rate by 25 basis points in its first policy decision under Governor Sanjay Malhotra. Experts believe this move aims to boost economic growth while maintaining inflation control, amid eased inflationary pressures and a stable Consumer Price Index.
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India's financial sector is positioned strongly as it enters 2025, marked by robust earnings, low impaired assets, and strong capital buffers. Despite challenges from geopolitical conflicts and market volatility, the financial system remains resilient. Consumer and business confidence is high, and stress tests show the banking system and NBFCs are well-capitalized.
Macquarie, Nomura, Kotak Institutional Equities, Kotak Institutional Equities, Morgan Stanley, HSBC
India's foreign exchange reserves fell by $2.54 billion to $635.721 billion for the week ending February 14. The decline ended a three-week rise, during which reserves had increased by $7.654 billion. The forex reserves were impacted by a drop in foreign currency assets, while gold reserves and SDRs saw a rise.
The Trump administration's decision to exempt tariffs on Indian pharma imports brings relief to a $9 billion-plus US export market, highlighting India's key role in providing affordable generic medicines. However, India's medical device sector faces a 26% reciprocal tariff, potentially impacting its growth and exports.
Gold prices in Delhi fell below Rs 79,000 per 10 grams due to low stockist and retailer demand. Silver experienced a significant drop as well. Analysts cite geopolitical uncertainties, interest rate cuts, and robust demand from central banks and high-net-worth individuals as factors for the previous surge. Thin trading volumes during the holiday period have kept prices range-bound.
Consumer-centric companies are witnessing a surge in sales as Valentine's Day approaches, with increased demand for jewellery, apparel, premium chocolates, and curated experiences. Quick commerce platforms like Zomato are capitalising on the spike in demand for flowers, cakes, and desserts. Retailers report sales on par with the festive season, boosting Valentine's Day's commercial appeal.
China's exports surged 12.4% in March, driven by businesses anticipating higher US tariffs, while imports declined by 4.3%. The trade surplus with the US reached $27.6 billion for March and $76.6 billion for the quarter. President Xi Jinping is visiting Southeast Asian nations to bolster trade ties amid ongoing trade tensions and tariff adjustments.
Adani group is completely exiting Adani Wilmar Ltd by selling its 43.94% stake. A 31.06% stake will be sold to Wilmar International, raising Rs 12,314 crore, and 13% through the open market. The proceeds, exceeding $2 billion, will boost Adani Enterprises' core infrastructure businesses. This move follows legal challenges faced by founder Gautam Adani in a bribery case.
India supported a global carbon tax on shipping. The UN agency, IMO, passed the measure to cut ship emissions. Ships must use cleaner fuels or pay a pollution fee. The tax aims to generate funds for decarbonizing the shipping sector. Some nations opposed the move. Technical details are yet to be finalized.
The Centre has appointed Vikas Kaushal as the chairman of Hindustan Petroleum Corporation Ltd (HPCL). Kaushal, a former India head of Kearney, is the first private sector individual to head a state-run oil company. His appointment, following a government decision, comes after PESB rejected eight candidates for the post last year.