Indian banks are predicted to see a 12.5% credit growth by FY 2025, according to an HSBC report. Despite GDP slowdown risks and tight liquidity, the retail loan sector showed positive momentum in November 2024, driven by demand for personal, home, and gold loans, with an uptick in credit to MSMEs and corporates.
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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.
Budget 2025 expectations: Address the issue of subdued private capital expenditure with a new strategy rather than relying solely on rate cuts as a panacea. The 2023-24 Economic Survey rightly emphasised that underwhelming private capex in key infrastructure sectors cannot be resolved by central government policies alone.
ICICI Bank's profit after tax increased by 14.8% year-on-year to Rs 11,792 crore for Q3-2024, driven by higher net interest income, fee earnings and a 15.1% loan growth. On a consolidated basis, profit rose by 16.6% to Rs 12,883 crore, with strong performance from subsidiaries.
India's foreign exchange reserves dropped by $8.478 billion to $644.391 billion for the week ending December 20, marking a continued decline. The reduction is mainly due to the revaluation and RBI's efforts to stabilize rupee fluctuations. Foreign currency assets and gold reserves saw significant reductions, contributing to the overall decline in reserves.
Stock market recommendations: Vedanta and International Gemmological Institute have been identified as top stock picks by Bajaj Broking Research, with favorable entry points noted.
Nithin Kamath stressed the importance of risk management for traders. He shared insights from successful traders, focusing on principles like reducing positions during drawdowns and cutting losers early. Kamath also highlighted common trading mistakes such as over-trading. His reflections underline how a clear system can help manage stress and reduce errors in challenging market conditions.
Consumer preference for natural and plant-based personal care products is rising, impacting toothpastes, soaps, and haircare. Over 70% of new toothpaste launches are now natural, reflecting a shift towards herbal and ayurvedic ingredients.
Sensex closed 1,235 points lower at 75,838 due to market volatility. Investors were concerned about US President Trump's trade policies and a potential Bank of Japan rate hike. Foreign funds sold stocks worth Rs 5,920 crore, and BSE's market capitalization fell by Rs 7.3 lakh crore. Markets are expected to remain under pressure.
The Indian rupee continued to strengthen for the seventh straight session, closing at 85.67 against the US dollar. Positive domestic equity trends, foreign capital inflows, and lower crude prices contributed to the gain, erasing all 2025 losses. The rupee has appreciated by 154 paise, with support from foreign banks and exporters. The BSE Sensex surged 1.40%, and Nifty advanced 1.32%.
Vedanta has secured creditor approval for its demerger, surpassing the required 75% support with 83%. This restructuring will divide the company into five separate businesses, enhancing individual business value and attracting investors, particularly in newer sectors like semiconductors.