GDP:
- Indian economy grow 8.4% in Q2FY22 (July-September quarter) year-on-year, crossing pre-pandemic levels. Country’s GDP increased 0.3% from that of FY20. This is a very good sign of development and means that India may have double digit growth rate in FY22. At the same time in other good news, the government fiscal deficit in H1FY22 was lowest in last 3 years at 36% of budget estimates due to growing tax revenues.
IIP:
- The Index of Industrial Production (IIP) went up slightly to 3.2% in October 2021 from 3.1% in September 2021. The increase was mainly due to the fading low base effect whereas mining, power and manufacturing sectors performed well.
GST:
- November GST collection was again high at Rs.1.31 lakh Crore pointing to good performance of economy continuing to Q3 of FY22.
Repo Rate:
- On December 8, 2021 monetary policy committee decided to keep the policy repo rate unchanged at 4% and to continue with the accommodative stance as long as necessary to support growth and keep inflation within the target.
Inflation:
- India’s Retail Inflation, CPI, increased to 4.48% in October of 2021 from 4.35% in September. While it was the fourth consecutive month when inflation was within the RBI’s target range of 2% to 6%, RBI will be keeping a close eye on the inflation numbers on coming months.
Crude Oil:
- Oil fell sharply in November, with benchmark Brent oil falling by around 12% in 1 month. The fall was due to 2 key factors, one being the concerns of new Covid-19 strain that could affect global demand. Second was US led alliances call to release oil from strategic reserves to oppose OPEC+ led artificial supply curbs.
- At the end of November, Indian Government was also considering the release of oil from strategic reserves at the highest levels along with China, Japan, South Korea and US.
Reliance Capital board takeover by RBI:
- RBI took over the board of Reliance Capital stating the defaults by RCap in meeting various payment obligations to its creditors. Earlier in October, RBI also took over control of SRIE upon failing to meet governance and payment obligations.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.
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