Moneycontrol Pro Panorama | India’s growth is on a roll

In today’s edition of Moneycontrol Pro Panorama: TVS rerating overhang, HDFC Q1 blip, India’s balancing act at SCO, Nestle India’s growth balm, Yes Bank has its task cut out and more

Ravi Ananthanarayanan

August 01, 2022 / 16:55 IST

Representative image

Dear Reader,

The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.

Economic data coming in this week will be the last set of data that the Reserve Bank of India’s Monetary Policy Committee will parse before taking their bi-monthly call. India’s manufacturing sector PMI touched an 8-month high at 56.4 and was also the strongest in Asia. That growth is in superlative form could give the MPC confidence that a robust rate hike is in order as the focus is on keeping inflation under control.
But inflation too behaved better in July, with the PMI data indicating that both output and input costs fell. A deceleration in prices of metals, crude oil and even agricultural products relative to their recent peaks appears to have benefited businesses. This could result in some debate among the MPC members on whether they should continue using rate hikes to quench inflation, as the US Fed has signalled it will do, or leave enough room for growth to continue unrestricted.
There is the services PMI data point that will come out on Wednesday, which could inform this debate further. That the economy is in good form is affirmed by GST collections for July coming in at Rs 1.49 lakh crore, continuing the uptrend seen in 2022. All of this have put equity investors in a good frame of mind, with the Sensex rising by 0.7 percent at 1.55 pm.
We have an expert voice for you on economic policy, as Vatsala Kamat quizzes Ajit Ranade, economist, on issues relating to growth, inflation and exchange rates, among others. On growth, he talks about concerns on how the lower part of the K-shape are not enjoying a resurgence seen by those employed in sectors such as software. On the broader point of where monetary policy should head, given the multiple factors at play, he says: “So, we must keep inflation stable and low, which is possible through tight fiscal and monetary policy and good all-round economic growth.” Do read the full interview for details.

Investing insights from our research team

Expensive valuation puts a question mark on TVS rerating