Central govt capex at ‘desired level’, onus now on states & pvt sector — Economic Affairs Secretary
Union Budget 2024 allocated Rs 11.1 lakh cr as capex for FY25. This is 11% higher than what was budgeted for FY24 and 17% higher than what was actually spent that year. Key Points
ThePrintBudget may not be non-event for investors in rail, defence, other infra stocks. Here's why
The Interim Budget 2024, to be presented by Finance Minister Nirmala Sitharaman, is expected to impact investors in rail, defence, and other capex-related stocks. The budget is likely to continue its focus on infrastructure development, including ports, airports, railways, and highways. Last year's budget allocated the highest percentage of expenses towards capex in two decades, indicating a long-term planning approach by the government. Key Points
Economic TimesBudget 2024 may be interim but investors need to watch out for these 5 things
The upcoming Union Budget, an interim one in an election year, is unlikely to have any spectacular announcements but could still have significant outcomes for investors. The focus is expected to be on tax relief measures to boost consumption and investment, especially for salaried individuals and MSMEs. Key Points
Economic TimesCentre to take foot off capex pedal after FY25 budget
The Union government may boost capex allocation by 25% to a record ₹12.5 trillion in 2024-25, Mint reported in November. However, the Centre is also keen to bring the fiscal deficit below the targeted 4.5% by 2025-26. Key Points
mintUnion Budget 2023 recap: Modi government's record capex push & its impact on Indian economy
Union Budget: India's Finance Minister, Nirmala Sitharaman, announced a robust capex push to stimulate economic growth, allocating over 3% of the country's GDP to capital expenditure. Around Rs 10 lakh crore was allocated towards capital expenditure, a record high. The capex push is part of the government's efforts to make India a $5 trillion economy. Key Points
Economic Times
India Inc's capex cycle may move into top gear
The capex tracker index of institutional research firm Avendus Spark shows a reading of 342 in June 2023 - the highest in more than 12 years. The index has been consistently rising since December 2020 - when it hit a low of 147. The index assigns weights to private capex announcement (35%), aggregate new order (15%), import of capital goods (10%), and central government capex and state capex (20% each). Key Points
Economic TimesCoal India capex rises 7.6% on year so far in FY24
Coal India Ltds capital expenditure rose by 7.6% on year in the eight months of the ongoing financial year to Rs 10,492 Crores. The target of the company for the fiscal is Rs 16,500 crore. capex on acquisition of land and related rehabilitation followed at Rs 2,486 crore accounting for almost a quarter of the expenditure during the period. Key Points
Economic TimesDid election season put brakes on capex in poll-bound states? Here's what Bank of Baroda study says
Studies by Bank of Baroda find Centre on track to meet capex target for this fiscal. There’s wide disparity in states’ performances but upcoming polls haven’t derailed the capex process. Key Points
ThePrintPublic capex will dip as government reduces fiscal deficit: Report
The government has set a fiscal deficit target of 5.9% for FY24. Central government capex has increased at a compounded annual growth rate of 33% over the last three years, with the ratio of capex spending doubling to 3.3% in FY24 from 1.5% between FY18 and FY21. Key Points
Economic TimesMaruti pegs capex till FY31 at ₹1.3 lakh cr
India Business News: Maruti Suzuki plans to invest around Rs 1.3 lakh crore in capital expenditure (capex) till 2030-31. The company aims to expand its product range from Key Points
Times Of India
18 of the 23 states performed better on capex spend in Q1 of FY24: Bank of Baroda
The majority of Indian states have increased spending on capital expenditure (capex) in Q1 2021 compared to the previous year, according to an analysis by Bank of Baroda economists. The increased spending has led to market borrowing and looks positive for Indias future growth, the note said. Key Points
Economic TimesIndia Inc’s margin may see a bump-up on lower input cost: Fitch
Multiple factors including geopolitical tensions, rate hikes by central banks across the world and tighter trade norms had created a gap in the demand-supply chain. However, the waning input costs pressure is expected to offset demand weakness for corporates from a slowdown in overseas markets and the impact of increased policy rates in FY23. Key Points
Economic TimesAvoid cement stocks, tough to play capex cycle now: Anand Tandon
I do not think that there is a great way to play the capex cycle right now. If you are looking for capex cycle plays, it is better off dealing with companies which are in a more traditional business of capex, somebody like Thermax or some of the other names may be better positioned to benefit from there, says Anand Tandon. Key Points
Economic TimesLeading consumer goods companies to continue capex, expansion this fiscal
Much of the capex is ear-marked for new factories, expansion of capacities in existing factories or expansion of their business such as retail stores. Last fiscal, most companies had expanded their capex by record numbers after two years of the pandemic. Key Points
Economic TimesNo revival of states’ own capex by late FY23, flat growth in April-February
The combined capex of 20 states, whose finances were reviewed by FE, was around Rs 3.5 trillion in April-February of FY23, nearly at the same level of the year ago period. Key Points
Financialexpress
Private sector firms could turn big spenders, soon
Reliance Industries will dominate the mix with a large investment programme across oil-tochemical, new energy and digital services businesses, the report said. Bharti Airtel, the second largest private investor, will spend huge sums on 5G rollout. The ratings agency said corporates rated by it will see a 10%-12% rise in capex in FY23 and FY24, even as it cautioned there were risks to this revival. Key Points
Economic TimesBudget 2024: Govt likely to maintain capex momentum in FY25
Union budget 2024: The government is expected to continue prioritizing capital expenditure, particularly in the infrastructure sector, in the upcoming Budget to drive economic growth. The government has allocated a record high of Rs 10 lakh crore for capex during the current financial year, with a consistent increase. The upcoming Budget is expected to allocate a substantial amount for capital expenditure, as it has a multiplier effect on the economy and attracts private investment. Key Points
Economic TimesRotate partly from small to largecaps before FIIs descend on India: Saurabh Mukherjea
“So the trips that were being planned for say June-July, have been preponed to December and the FIIs from all over the world descend upon India over the next month or so. In fact, over the next two weeks or so as they load up on India. So there is a preponement of roughly six months in their purchasing. It happily coincides with the top global interest rate cycle.” Key Points
Economic TimesETMarkets Fund Manager Talk: capex investment likely to be enhanced in Budget 2024: Vinay Jaising, JM Fina
Vinay Jaising says: capex investments have grown 5.6x in the last decade and now account for 3.3% of the GDP (not including PSU spend or state spend). In absolute terms, we expect over 30% growth YoY in capex expenditure by the government. Rural investments, which were a bit lower in the last two years, should get a fillip as well in both the budgets of at least 10% YoY. Key Points
Economic TimesDevang Mehta is gung-ho on banks, auto and capital goods sectors. Here's why
Capex has come back for sure, be it government capex and of course, followed by private capex. Importantly, sectors like BFSI, which are beneficiaries of not only capex, but also consumption and credit growth, is one of the favourite sectors to be in. Yes, it is a crowded trade, but banks had a good round of correction and consolidation in the past couple of months. Key Points
Economic Times
28% less than earlier guidance: Adani flagship lowers capex goal to $3.8 bn
Adani’s transportation vertical comprising airports and roads business, will see a capex of $2.1 billion for the year. Key Points
FinancialexpressView: How to reverse the longest downturn in corporate capex
GoI slashed the corporate income tax rates in September 2019, which is estimated to have boosted the earnings of large corporates by 8-10%. Ideally, an increase in earnings should have been used for capex but, instead, higher earnings found their way into increased dividend payouts, raising the dividend payout ratio further to 66% in 2019-20. Key Points
The Economic TimesRs 25,727 cr greenlit for 9 states under capex loan facility
The outlay for the current year is Rs 1.3 trillion, with an untied component of Rs 1 trillion. Key Points
FinancialexpressPrivate capex in India to pick up in H2 of FY25; hotel, tourism to drive investment: Kotak Bank Chief Econ
Private sector investment is set to increase in the latter half of the fiscal year, particularly in sectors like hotels and tourism, following extensive government-led infrastructure development efforts. The government's enhanced capital expenditure has supported economic growth post-Covid, with private sector capex expected to rise significantly in the coming months. Key Points
Economic TimesBudget 2024: 1111111, the attention-catching number that stands out
Nirmala Sitharaman's 'no big bang' budget holds back expected welfare spending and sops for voters. The enigmatic numbers 1111111 and 11.11 are related to capital expenditure. Sitharaman proposes to raise the capital expenditure target by 11.11% to Rs. 11.11 lakh crore for the next fiscal year. The hike in the interim budget is significant but not as dramatic as in previous budgets. Key Points
Economic Times
ETMarkets Smart Talk: Real estate sector is witnessing a multi-year cycle: Dr. Poonam Tandon
We believe the long-term capex story remains intact as we are seeing a massive shift in the capex cycle benefiting from the China plus strategy. For us the domestic capex story remains intact and consumers and corporate sentiments are resilient with a steady macro regime post-COVID, but we do not rule out the volatility as the hardening of USD and crude oil prices could pose a challenge in the interim. Key Points
Economic TimesShyam Metalics expects a CAGR of 15-20% Y-o-Y; both bottom line and top line to improve: B Bhushan Agarwal
Shyam Metalics has announced a new capex of close to INR 3,900 crore ($525m) and it is adding more capacity for speciality alloys, power gen and different products. The company aims to see a 15-20% YoY CAGR and the bottom and top lines are set to improve. Despite muted numbers recently, margin has remained relatively stable as the company is an integrated player. The company has a fundraising plan for around INR 3,600 crore and a capex plan of INR 4,000 crore. Key Points
Economic TimesIndia’s private capex to see a material uptick over FY23-24, but risks remain: Fitch
Corporates in India are likely to step up their capital expenditure plans in the coming few years, materially higher than in the previous two fiscals with a focus on capacity expansion across industrial sectors, Fitch Ratings said. capex was flat over FY19 to FY21 and grew 16% in FY22. The forecasts are for the 8 state-owned enterprises and 21 privately held Fitch-rated corporates in the country. Key Points
Economic TimesReliance net debt continues to rise from YoY perspective despite capex declining sharply QoQ: Probal Sen
Reliance Q3 numbers were fairly strong with performance in several segments offsetting weakness in the gas exploration and O2C segments. Net debt continues to rise despite declining capex. Retail showed a 23% YoY growth in revenue and a 30% improvement in EBITDA, but return ratios remain below 10% due to increased capital allocation. Optimism remains for Jio's ARPUs with traction expected from enterprise and fiber to home business, 5G investments, and tariff monetization. Stock price outlook is neutral with a fair price of Rs 2600-2700. Key Points
Economic TimesSanjeev Bhasin on 4 stocks to consider in the capex theme and include in portfolio
Sanjiv Bhasin, Director at IIFL Securities, recommends having L&T and Thermax in a portfolio. He also suggests considering Bharat Forge as a quasi-play on ABB. Bhasin believes that the capital goods sector, particularly capex, is a lucrative space. He mentions that L&T's announcement of a buyback at a high stock price reflects management confidence. Bhasin also expresses optimism about Diageo (United Spirits) and Radico Khaitan in the liquor industry. Key Points
Economic Times
Hindalco nearly halves capex to $4.5 billion
The company has reduced capex spend earmarked for the next five years to $4.5 billion, a 43% cut, versus $7.9 billion announced a year ago, according to a report by Kotak Institutional Securities. Key Points
FinancialexpressWhat’s the chance of an LBW in PSU and defence stocks? Saurabh Mukherjea explains
Saurabh Mukherjea of Marcellus Investment Managers, expresses concerns about the broader PSU capex theme in India. He believes that the government's heavy spending on sectors such as roads, defence, and power is not supported by underlying tax collections. Mukherjea also discusses the potential performance of HDFC Bank and highlights the worries surrounding the PSU capex recovery. He mentions that the implosion in China could benefit India's economy, and expresses optimism about the Indian IT services industry. Key Points
Economic TimesIndia to grow 6.5% in FY25, down from 6.9% this fiscal: Ind-Ra
India's economy is expected to grow by 6.5% in the fiscal year 2024-25, supported by sustained government capex, soft global commodity prices, and signs of growth in the private corporate capex cycle, according to India Ratings and Research. The forecast aligns with the International Monetary Fund's projection but is below the Reserve Bank of India's estimate of 7%. Key Points
Economic TimesTo benefit from up-turn in the private sector capex cycle: 5 stocks with upside potential up to 36 %.
While the capex cycle has been moving well in sectors like railways, road and other infrastructure sectors for some years. In sectors like cement, chemicals, pharma which are driven by the private sector, indications of capital spending on adding capacities, what is commonly called private sector capex coming back are visible. One industry which benefits from this capex would be the capital goods sector, but one has to be very careful in choosing the stock as the word “capital goods stocks” is prone to getting misinterpreted. Key Points
Economic TimesKeeping some cash; taking a barbell approach to portfolio: Ganeshram Jayaraman
Ganeshram Jayaraman of Avendus Spark discusses the portfolio construct with a focus on defensives and industrials. He is cautious on the macro outlook, expects volume growth to be the key driver, and highlights the evolving consumption patterns in the rural economy. PSU banks and sectors dependent on government capex may face challenges. Key Points
Economic Times
ETMarkets Smart Talk: India stands out in terms of growth and policy stability albeit at higher valuation:
If we were to look at consensus earnings estimates for FY24/FY25, this number has been upgraded with each passing quarter depicting the resiliency of earnings. We expect earnings resiliency to continue and be supportive of the markets in general. Banking has been trailed by the broader indices despite strong earnings and trade at reasonable valuation; we expect it to do well. Key Points
Economic TimesHealthy balance sheets, cash flows lift India Inc's capex spends
India's corporate capex spending is rising due to rising cash flows and improving balance sheets, with three out of four companies from a sample of 373 of the S&P BSE 500 index reporting year-on-year improvement in gross fixed assets for FY23. Mainly oil and gas, metals and power firms form a major part of incremental GFA. Key Points
Economic TimesIT midcaps and smallcaps, consumer discretionary stocks showing better traction: Sumit Poddar
Tikona Capital's Sumit Poddar believes that the fall in inflation, crude prices and commodity costs are driving a positive shift in consumer discretionary stocks, and predicts that this trend will continue. As customers regain their spending power, there will be growth across the consumer discretionary sector, especially in areas like footwear and railway capex. Poddar recognises that IT spending is down, but notes that small or midcap IT services companies are likely to show better traction. Key Points
Economic TimesA road map with clear focus, fiscal discipline: Amitabh Chaudhry, MD and CEO, Axis Bank
The 2019 interim budget provided income tax rebate, social security coverage, and railway capex. The latest budget focused on fiscal discipline and ease of doing business. It reduced the fiscal deficit for this year and set lower targets for the next. The private sector can benefit from increased borrowing and infrastructure creation. The budget allocated funds for rural poverty alleviation, semiconductor manufacturing, solar power, and economic railway corridors. It also introduced schemes for housing, innovation, and economic growth. Key Points
Economic TimesIs it time to book profits or invest more? Ajay Bagga answers
“SIPs are still coming largely into mid and smallcap funds but institutional players are cautioning that move into largecaps out of mid and smallcaps. As we saw on Monday and Tuesday last week, market returns are very lumpy and a few days will give the entire year's return. So, if you are not invested, you will miss out on that.” Key Points
Economic Times
Markets are delicately poised; how will the second half of FY24 go? Amnish Aggarwal answers
The second half of the year is usually very important from the viewpoint of the overall economy because the second half is more like 40-60. The second half of the year is much bigger. That is one part of it. Secondly, the capex momentum, I would say, particularly from the government side, in the first half has been practically good. Maybe because we are approaching election year. So there might have been some preponement of capex. Key Points
Economic TimesAfter broader market, languishing largecaps will reverse: Mahantesh Sabarad
The big trigger now is that corporates will start looking at better performance ahead. One of the biggest inflation triggers is on the commodity side. Many of the companies, be it on the industrial side be or on the capital goods sides, are exposed to a large inflation footprint that came in with the commodities surge. That is now gradually abating and could provide the next possible trigger for most of the goods manufacturing companies. Key Points
Economic TimesPublic expenditure quality of states improves in Q1FY24: Ind-Ra
Higher tax devolution, rising revenues, and lower subsidy outgoes have led to the improvement of public expenditure quality for states in Q1-FY24, according to India Ratings and Research. This positive trend of increased capital expenditure and the approval of projects under interest-free capex loans is expected to continue. Key Points
Economic TimesAirtel's earnings growth slow but balance sheet strong enough to support elevated 5G capex: S&P Global
Global ratings agency, S&P Global has said Bharti Airtel's earnings growth momentum is slower than anticipated but its balance sheet is strong enough to withstand its temporarily elevated 5G-related capex spends. The ratings agency has estimated Airtels FFO-to-debt ratio was at 25%-26% in FY23, well above its downgrade threshold of 20%. This was up from 22% in FY22. Going forward, it projects this ratio to Key Points
Economic TimesSRF, GFCL, Deepak Nitrite, Tata Chemicals and Navin Fluorine: How have they fared and which stock to buy?
The speciality chemicals sector experienced varying revenue growth in the fourth quarter, with some companies reporting strong performance in value-added products while others faced challenges in commoditized product lines. capex investments continue to be significant as companies expand their capacities and add new product lines. Key Points
The Hindu
Next generation reforms to avoid middle-income trap: Suman Bery
In an interview, NITI Aayog vice chairman Suman Bery discusses the impact of staying on the fiscal glide path on India's credit ratings and private investment. He praises the finance minister for staying the course on fiscal consolidation, which provides headroom for the Reserve Bank of India and impacts the credit ratings of corporates and banks. Bery notes that the timing is right for a huge capex cycle in the private sector and emphasizes the need for regulatory reforms, decentralization, and freeing up sectors like agriculture and energy. He also mentions the importance of transparency in land markets, digitization, and artificial intelligence. Additionally, Bery highlights the challenge of a growing population and the progress made in reducing multidimensional poverty, but suggests that more significant measures may be included in the full budget. Key Points
Economic TimesBudget throws spotlight on more than 50 stocks from 7 sectors
Within the confines of the available fiscal space, the government is channeling enough for capex which is almost 40% of the additional total outlay. This is being directed to roads, railways, and defence and it can have positive linkage effects with industries like steel, cement, capital goods etc, Way2Wealth said. Key Points
Economic TimesHow Jefferies is tweaking its India portfolio as FIIs turn net sellers
FIIs have turned net sellers and India has underperformed MSCI EM by 3.2 ppts over the last 1 month. While the near-term appears weak, there are more signs of a capex upcycle. Our preference for domestic cyclicals (financials, industrials and property) & midcaps stays, said Jefferies analyst Mahesh Nandurkar. Key Points
Economic TimesWhere to look for pockets of value in a super bullish market? Mihir Vora explains
“For India, it is a good situation to be in where you have moderating global interest rates, a not so strong dollar, and not a crashing global economy. Inherent strength of domestic consumption should carry us through. Plus, the capex cycle which is just picking up should see us through the next two to three years.” Key Points
Economic TimesETMarkets Smart Talk: Stock picker market! Nifty could give 10-12% return in next 1 year amid volatility:
While we expect Nifty to give a 10-12% return over the next year, we also see volatility levels going up in the near term given uncertainties to global growth due to aggressive tightening by the US Fed. While the US Fed may not raise rates further, high-interest rates, withdrawal of liquidity by the US Fed and uncertainties over global growth will have an adverse impact on FPI flows. Key Points
Economic Times
India's capex cycle isn't on a durable mode yet: Report
The pace of new investment projects announced in India slowed in Q2 2023, with the Centre for Monitoring the Indian Economys data showing it decreased to around Rs 6 trillion from Rs 12.2 trillion in Q1. Nomura analysts Sonal Varma and Aurodeep Nandi noted that quarterly fluctuations aside, new investments remained low by historic standards. Key Points
Economic TimesAditya Welekar on Novelis IPO, Hindalco and more
Aditya Welekar of Axis Securities discusses the Novelis IPO's potential uses of funds, including capex and acquisitions. Hindalco aims to unlock Novelis' value and raise cash without increasing net debt. The stock's performance and valuation will depend on the IPO's outcome. Welekar says let us hear from the management how they want to use the proceeds and based on that, we will take a call on the stock. Key Points
Economic TimesStates seek easier norms for Rs 1 trn ‘untied’ capex loan
State governments have urged the Centre to relax the norms for the release of the Rs 1.3 trillion interest-free capex loans to them in FY24, stating that some of these are impractical and would impede the efforts to boost capital spending. Key Points
FinancialexpressIndia's current economic boom similar to that of 2003-07? Morgan Stanley thinks so, lists 5 parallel trends
In a recent note, global brokerage house Morgan Stanley believes that the current India's economic boom closely resembles that of 2003-07. MS has also highlighted the following five characteristics, which should help investors frame their approach to India in this cycle. Key Points
mintManufacturing, private capex and exports are drivers of corporate earnings over medium term: Saion Mukherj
Saion Mukherjee says: “As we see traction in manufacturing, our expectation is that we will also see a very strong pickup in private capex. So manufacturing, private capex, exports, would be the drivers of corporate earnings over the medium term. Of course, this would have a ruboff effect on consumption as we go forward.” Key Points
Economic Times
Fiscal deficit target of 4.5% of GDP by FY26 a challenge: Fitch
India's government faces challenges in meeting its fiscal deficit target of 4.5% of GDP in FY26, according to global ratings agency Fitch. The agency predicts a 6.5% growth in the Indian economy in FY25, supported by 11% growth in government capex. The government has set a 5.1% fiscal deficit for FY25, down from 5.8% in FY24. Fitch expects the new government to maintain the fiscal path laid down in the interim budget. Key Points
Economic Timescapex mood sees revival in Q3, led by private sector: CMIE data
The investment mood improved in the December quarter, but remains weak since the same quarter a year ago. Analysts see a patchy outlook for now due to the looming Lok Sabha elections, but the overall trend is optimistic. Key Points
mintHow to pick stocks when market is at record high? Anand Shah shares his playbook
We believe manufacturing and allied industries like auto ancillaries, metals, defense, textiles, capital goods, utilities, logistics, corporate banks etc. will continue to remain under spotlight in the year ahead given the macro and micro tailwinds. We continue to have a favorable outlook for the banking industry, which is fueled by strong growth potential from rising loan growth and falling credit costs. Key Points
Economic Timescapex hikes may go in the slow lane to trim fiscal deficit
The government will present an interim budget for FY25 in February, leaving the full budget to the next government after elections a few months after that. The final decision will be taken closer to the interim budget, the official told ET. Key Points
Economic TimesMarket to be in consolidation phase over next 1-2 quarters: Mahesh Nandurkar
I mean, the risk-free rates in the US have gone back up to the peak levels that we saw back in March. So, when you are able to make a 5% risk-free rate in the US, then that is obviously going to be something that will put equity valuations all over the world into a question mark, so that is one thing that we need to keep in mind. Key Points
Economic Times
'Free data a headwind against 5G monetisation': Bharti Airtel MD Gopal Vittal
Gopal Vittal, Managing Director of Bharti Airtel, expressed concerns that offering unlimited free 5G data could hinder the monetization of this next-generation technology. He dismissed the idea of implementing differential pricing for 5G, noting that only a small fraction of customers would opt for higher-priced plans. Despite having over 65 million 5G subscribers, Vittal acknowledged that this segment represents a modest proportion of the overall smartphone user base, approximately 15-16%. Key Points
Economic TimesBudget will be aligned with BJP's thrust on GYAN strategy; capex growth pace may slow slightly in FY25: So
Sonal Varma believes the government will meet its fiscal deficit targets for FY24 and FY25 through offsetting factors and a slight slowdown in capex growth. For FY24, higher direct tax collections and dividends have been positive, while lower indirect tax collections and disinvestment proceeds have been negative. In FY25, Varma expects the government to set a deficit target of 5.3% of GDP based on assumptions of nominal growth and a slowdown in capex growth. Key Points
Economic TimesGood days are back? 5 stocks from capital goods and engineering sector with upside potential of up to 35%
Capital goods and engineering companies had faced tough times for many years. The reason, there was hardly any capex in many sectors of the Indian economy. This changed in 2014, when the new government took over. Road and infrastructure sector got a big push and all the companies in that sector saw their order book growing sharply. Over a period of nine years, many other sectors have seen a sharp increase in their capex. Right from railways to defence all of them have seen increased outlays leading to sharp improvement in the bottomline of the companies in the whole chain of companies. Given the capacity utilisation which some other sectors might see in near term, some more engineering and capital goods may come into focus. Key Points
Economic TimesArvind wants to maintain a 20% plus margin across 3 years and grow aggressively: Punit Lalbhai
“We expect the second half of the year to be better than the first half which we have been maintaining. The bottoming out of the demand situation has happened and there is a slight recovery in some of the markets that we are operating in. It remains a very challenging demand environment.” Key Points
Economic TimesRBI retains India's growth forecast at 6.5% amid global turbulence
The Reserve Bank of India (RBI) has stated that the Indian economy is performing well, despite global economic turbulence. The RBI has maintained its growth forecast at 6.5% and inflation projection at 5.4% for the fiscal year. The governor of the RBI, Shaktikanta Das, highlighted the resilience of domestic economic activity and cautioned against complacency. He also mentioned the importance of lessons learned from past economic crises. Key Points
Economic Times
ETMarkets Smart Talk: Stay invested! India is at cusp of a multi-year growth cycle: Devang Mehta
India is on the brink of a multi-year growth cycle driven by capital expenditure, credit growth, consumption, and corporate profitability, according to Devang Mehta, Director of Equity Advisory at Spark Capital Private Wealth Management. Mehta also stated that sectors related to credit growth, financials, and capital expenditure are likely to lead the next phase of the market rally. Rising oil prices, a depreciating rupee, and the negative impact of the US market are concerns for the Indian economy. Key Points
Economic TimesJindal Steel share price rises 7%; Kotak upgrades the stock, sees a 36% upside; here's what the brokerage says
Jindal Steel & Power shares rose 7 per cent after Kotak Institutional Equities upgraded the stock from 'reduce' to 'buy' and increased its target price to ₹740. The brokerage said the next year is a transformational period for the stock. Key Points
mintWill Budget provide some relief for the common man on income tax front?
The government's revenue collections are robust, with a 12% increase in GST collections and a 17-18% increase in direct tax collections. The fiscal deficit numbers are expected to be better than estimated for FY24, and the revised target for FY25 will be lower based on a projected nominal GDP growth of 10.5% to 11%. There may be a rebalancing from capex to subsidies, which would benefit the common man by providing relief from high food inflation. Key Points
Economic TimesSofter growth in central & state capex seen; construction to support rural incomes next couple of years:
Pranjul Bhandari of HSBC predicts that in FY25, both central and state government capex will grow at a slower clip. However, this slowdown may not be negative for growth as the central bank is expected to implement looser monetary conditions. Bhandari suggests that the central bank will ease liquidity, which can effectively act as a rate cut of about 40 to 50 basis points. While the rural economy has faced challenges, the construction sector has provided an alternate source of income for rural Indians Key Points
Economic TimesIndia’s capex run to continue; resembles 2003-07 period: Morgan Stanley
Indias capex cycle is expected to continue its run, with the current uptick resembling the 2003-07 period when growth averaged 8.6%, Morgan Stanley said. Key Points
Economic Times