Page 2 - Macroeconomics

Macroeconomic data, global trends to drive mkt trends this week: Analysts

In a data-packed week, the domestic macroeconomic figures -- industrial production and inflation numbers -- along with global trends would dictate trends in the equity market this week, analysts said. According to experts, markets may face volatile trends due to high valuations. Equity benchmark indices Sensex and Nifty hit their fresh record peaks on Thursday. Besides, trading activity of foreign investors, movement of global oil benchmark Brent crude and rupee-dollar trend would also influence trading in equities. "This week's market focus shifts to inflation data releases. Both India and the US will unveil their Consumer Price Index (CPI) figures on Tuesday. On Thursday, WPI data will be announced. "Large-cap stocks may continue their outperformance as Foreign Institutional Investors (FIIs) are expected to maintain their buying spree," Santosh Meena, Head of Research, Swastika Investmart Ltd, said. Industrial Production data for January and inflation numbers for the month of ..

Metal prices unlikely to improve due to global macroeconomic state: ICRA

Global prices of metals, including aluminium, are unlikely to improve considerably in the near term due to uncertainties in the global macroeconomic environment, Icra said on Wednesday. Besides, energy costs are likely to increase in the second half of the current fiscal, as the domestic e-auction premia on coal is projected to be significantly higher. "International prices of three non-ferrous metals, viz., aluminium, copper and zinc, have been range-bound and fell by 2-3 per cent in the last two quarters. Such prices are unlikely to improve substantially in the near term owing to uncertainties in the global macroeconomic environment," Icra said in a statement. The increase in coal costs along with weak global sentiments impacting metal prices remain near-term concerns, Jayanta Roy, Senior Vice President and Group Head, Corporate Sector Ratings, Icra, said. With an improvement in metal supply, primarily in China, the global metal balance is likely to remain in surplus in 2024 as .

Oil drops 2% as markets mull OPEC+ cuts' efficacy, macroeconomic slowdowns

Brent crude futures fell $1.59, or 2.06%, to $75.61 a barrel by 1454 GMT. US WTI crude futures fell by $1.67, or 2.31%, to $70.65 a barrel

Fed rate decision, macroeco data, earnings to dictate mkt trends: Analysts

The US Federal Reserve's interest rate decision, global cues, macroeconomic data announcements and the ongoing quarterly earnings are the major triggers that will dictate trends in stock markets this week, analysts said. Besides, the trading activity of foreign investors and the movement of global oil benchmark Brent crude will also be tracked. "All eyes are on the outcome of the US Federal Reserve meeting scheduled for November 1, particularly due to the multi-year high levels of the US bond yields. Additionally, the policy decisions of the Bank of Japan will be closely watched. "Beyond these key events, global factors will also play a crucial role. Economic data releases from the US and China, as well as the ever-changing geopolitical situation, will influence market sentiment," said Santosh Meena, Head of Research, Swastika Investmart Ltd. Among firms to announce their earnings this week are Adani Green Energy, DLF, TVS Motor Company, Bharti Airtel, GAIL, Hero MotoCorp, Tata Ste

China's CLSA ups India exposure on supportive macroeconomic outlook

Brokerage goes 303 bps overweight on domestic markets in MSCI Asia Pac ex-Japan portfolio

Top IT cos log muted sequential growth in Q2 amid sustained macro overhang

Large Indian IT services companies are expected to report "muted" sequential show in a traditionally strong second quarter, as macroeconomic challenges continue to weigh on global discretionary spending, say market watchers. The big earnings week for tech heavyweights is up ahead, with Tata Consultancy Services (TCS) scheduled to announce its results on October 11, and both Infosys and HCL Technologies on October 12. Wipro is slated to declare its Q2FY24 results next week, on October 18. Analysts tracking the sector are bracing for a subdued sequential performance by the large IT-pack saying weakness seen in Q1 is likely to persist with no meaningful signs of recovery or deterioration, thus dashing any hopes of a quick turnaround. "We expect Q2FY24, though seasonally strongest, to remain weak from a sequential growth perspective with quarter-on-quarter CC (constant currency) growth varying from -1 per cent (Tech Mahindra) to +1.9 per cent (HCLTech) among the top-five firms," ICICI .

Poor performance of public entities a risk to fiscal outlook: Pak FinMin

In recent years, the inflation rate in Pakistan has been volatile, influenced by various factors like currency devaluation, energy, and food prices in the global market

IT firms' growth in Q1 FY24 lowest in 10 qtrs, slowdown to get worse: ICRA

Order book and deal pipeline of most companies remain strong, says ratings agency

Macroeconomic, geopolitical conditions pose risks to organisations: Survey

With the world facing growing economic instability and political tensions, volatility in geoeconomic and geopolitical relations between major economies is likely to result in global upheavals over the next six months, a new survey showed on Thursday. According to the survey of the World Economic Forum's Chief Risks Officers community, more than 85 per cent of CROs expect some level of continued volatility and economic and financial conditions within and across major economies. Armed conflicts and regulatory changes are also cited as potential threats to organisations, while over 75 per cent of CROs believe the use of AI technologies poses reputational risks to their organisations. The community comprises 40 risk professionals from a wide range of multinational companies, covering technology, financial services, healthcare, professional services and industrial manufacturing. Respondents to the survey identified macroeconomic indicators, pricing and supply disruptions of key raw ...

BFSI, tech clients spending more on cost-optimisation deals: Wipro chairman

Macroeconomic environment remains challenging, impacting client spending: Rishad Premji

Weak discretionary spend likely to weigh on IT cos' revenue in Q1

Weak discretionary spending across verticals, especially in financial services, telecom and hi-tech, could contribute to weak trends

FPIs invest Rs 37,316 cr in May on strong domestic macro fundamentals

Foreign Portfolio Investors (FPIs) have pumped Rs 37,316 crore in Indian equities in May so far, primarily due to strong macroeconomic fundamentals and reasonable valuation of stocks. This is the highest investment by FPIs in the last six months. Before this, they made a net investment of Rs 36,239 crore in equities in November 2022, data available with the depositories showed. Going forward, a resolution on the US debt ceiling and good domestic macro-economic data could prove to be positive for the markets and may lead to fresh flows of assets from foreign investors, Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, said. The outlook for FPI flows has significantly improved, primarily due to the completion of the quantitative tightening cycle in the US and India's recent outperformance in comparison to global equities, Shrey Jain, founder and CEO of SAS Online, said. According to data from the depositories, FPIs invested a net sum of Rs 37,317 crore in

Private equity inflows plunge over 75% to $2.2 bn in March quarter: Report

Private equity inflows plunged 75.4 per cent to USD 2.2 billion in the March quarter, making it the sixth consecutive quarter of decline, amid global macroeconomic and geopolitical headwinds, according to a report. At USD 2.2 billion of inflows, this is the lowest private equity investment in the country since 2018, when it stood at USD 1.7 billion, according to the data tabulated by the financial markets data and insights provider Refinitiv, an LSEG Business unit. Internet-specific and computer software companies continued to attract the largest share of private equity capital, the report said. However, its share declined to 58 per cent from 75 per cent in the same period last year, primarily due to fewer deals. With turbulent market conditions and uncertainty, private equity fundraising activity also fell 41 per cent this year compared to the first quarter of 2022 and saw a 45 per cent decline sequentially. On a sequential basis, the Q1 decline was 31.9 per cent year-on-year when

Japan books $16.6 bn current account surplus for 2nd consecutive month

Japan logged a current account surplus of $16.6 billion in February, the Finance Ministry said in a report on Monday

Global cellular IoT module shipments grew by 14% in 2022, says report

Global cellular IoT module shipments grew 14 per cent (year-on-year) in 2022 to register a record high annual volume, despite macroeconomic headwinds, a new report said on Wednesday

G20 Framework Working Group meeting to discuss macro-economic issues: CEA

A host of global issues pertaining to inflation, energy security and climate change would be discussed in the G20 second Framework Working Group meeting scheduled to begin Friday, Chief Economic Advisor V Anantha Nageswaran said here on Thursday. India along with the United Kingdom would play a 'facilitator role' in discussing the issues with member countries during the two-day summit, he said. "The Framework Working Group of the G20 Finance Track will discuss global macro economic issues of relevance today. It will deliberate on how international policy cooperation can be enhanced to achieve strong sustainable balance and inclusive growth across G20 nations," Nageswaran told reporters. He said the first meeting of the Framework Working Group was held in December 2022 in Bengaluru and "significant progress" was made. "Some of the goals that Indian G20 Presidency is pursuing includes international cooperation to address macro-economic impact of food, climate change and energy ...

Strong macroeconomic trends improve credit quality of finance cos: S&P

The credit quality of Indian finance companies will continue to improve owing to the country's strong macroeconomic trends, said S&P Global Ratings.

India's macro stability indicators to improve in FY24: Morgan Stanley

"We expect CPI inflation to average 5.5 per cent (6.7 per cent in F23 estimates) and the current account deficit to track at 2.5 per cent of GDP in F24 (2.9 per cent in F23 estimates)"

Top VC firms reduce investments in India amid macroeconomic uncertainty

With late-stage funding rounds becoming tougher, they are focusing more on due diligence, profitability path, governance and early entry into companies at lower valuations

Certainly, uncertainty has declined

Over the past year, global macroeconomic stability has improved, which sets the stage for good growth from 2024