On January 5, Indian benchmark stock indexes resumed their bull run for the fourth consecutive day, with the Sensex regaining the key 60,000 levels after a downturn that began in October last year. The 30 share index hit an intraday high of 60,332.72, while the NSE Nifty index rose to 17,944.70.
Investors praised the GST collection in December, which was over Rs 1 trillion for the sixth month in a row. The GST collection for the month of December was Rs 1.29 trillion, up 13% over the previous year. “Anti-evasion operations, particularly action against false billers, have contributed to the increased GST, which has been paired with economic recovery,” said the finance ministry. The increase in income is partly attributable to the council’s many rationalization initiatives to rectify the inverted tariff structure, according to the finance ministry.
RBI has decided to postpone raising interest rates
According to economists, the RBI is unlikely to raise rates at its February bi-monthly policy meeting owing to restrictions imposed by several states as a result of an increase in Omicron infection cases. In a note, ICRA’s chief economist stated, “With the recent uptick of pandemic cases and tightening of limits causing further uncertainty, it is becoming increasingly unlikely that the MPC and RBI would begin policy normalization in February 2022 itself, unless inflation surprises sharply.” The economist also added, “The chance of the latter is subdued at this moment.”
PMI continues to grow
The manufacturing PMI in India increased for the sixth month in a row in December, settling at 55.5 from 57.6 in November. Despite an increase in pandemic cases and inflationary pressures, this was the case. The number of new jobs and output in India has continued to climb sharply.
Auto sales figures for the month
Commercial vehicle categories continued to improve in December, with automakers reporting sales figures that were in line with expectations. The recovery momentum, according to analysts, will continue. Despite near-term problems such as pandemic-related interruptions and chip shortages, one might stay optimistic about the industry. As a result of the desire for personal transportation, the PV sector, both for two- and four-wheelers, is predicted to stay strong throughout the pandemic. Tractor and agricultural equipment sales are likely to increase, helping enterprises with a strong rural and semi-urban presence.
Exports on a high note
India’s exports increased by 37% year on year to $37.29 billion in December. During the months of April to December 2021, outbound exports exceeded $300 billion. The administration expects the country’s exports to exceed $400 billion this fiscal year, according to the sources.
IT companies are projected to have a strong December quarter
In a seasonally poor economy, IT companies are projected to post substantial revenue growth. According to analysts, successive growth rates would range from 2.6 to 6%. However, the picture isn’t great when it comes to EPS growth, which has ranged from a 15% fall to an 11% increase year over year. Many predict high workforce growth, high fresher intake and high attrition.
SEBI has tightened the criteria for initial public offerings
SEBI approved the regulations for increasing IPO requirements in December. These guidelines will fill in gaps such as the purpose of IPOs, the use of profits from share sales, price ranges, anchor investor lock-in periods, and the amount of a majority shareholder’s holding that may be sold on listing day.
Property registrations continue to rise
In 2021, property sale registrations in Mumbai increased by 70% over the previous year, reaching 111552 units, and by 45 percent over the crisis year of 2019. In 2021, the western suburbs contributed 53 percent of sales, while the center suburbs contributed 31 percent. According to reports, 83 percent of transactions were focused in the housing category of up to 1,000 square feet, showing a continued desire for bigger houses.
Overseas investors are back
Following an uptick in key macroeconomic and monthly GST and Auto data, FIIs have become net purchasers in the previous two sessions, purchasing $400 million in shares after losing over $5 billion in November and December. In November and December, domestic investors continued to acquire stocks in excess of Rs 30,000 crore each. They have spent over Rs 1,336 crore so far this month.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.