Here is today’s business news by the Financial Express where we talk about the latest DA hike, new worries around global slowdown, GST mop-up as well as how Sensex preformed today amid the increased market volatility.

Today’s Latest Business News at 5:30 pm on 28th September 2022

[Disclaimer: This transcript is auto-generated]

Let’s begin. DA hike for Central Government Employees was officially announced today. Employees will get an additional 4% interest with effect from 1 July 2022. The effective new rate of DA now would be 38 per cent. The rate of Dearness Relief has also been increased by 4 per cent to 38 per cent for Central Government Pensioners. The Government has decided to increase the DA rate of Central Government employees by 4 per cent. For the last several weeks, Central Government Employees were expecting the Union government to increase their Dearness Allowance rate by 4 per cent. The employees of the Central Government will now get 38 per cent of their basic salary as DA.

Meanwhile. The global growth slowdown may weigh on the Indian economy going forward, through not just exports, but prices and liquidity as well. This would weigh on domestic credit and capex recovery, and the impact could be more on organised businesses and nominal variables such as taxes, earnings as they are more vulnerable to global slowdown, Edelweiss said in a research note. Globally, food prices remain elevated owing to drought-like conditions. The brokerage firm believes that this, in turn, could spill over to domestic food inflation as well, despite the government being proactive in taking steps to curb the same. Analysts said that Higher food inflation augurs well for farm incomes, but may complicate policy-making challenges.

Next up, economy. The Goods and Services Tax revenue mop-up in September is expected to be around Rs 1.45 lakh crore, an official said. The collection has been over Rs 1.4 lakh crore since March and in August it was Rs 1.43 lakh crore. The official said that the collection in September is likely to be little more than Rs 1.45 lakh crore. Improved business activity is expected to yield better collections in coming months. Official revenue figures will be released on October 1. The mop-up in September last year was Rs 1.17 lakh crore. The official further said as per estimates, the average yearly revenue from GST in 2022-23 is expected to be around Rs 1.55 lakh crore. The collection in April was at a record high of Rs 1.68 lakh crore. In May, GST revenue was Rs 1.41 lakh crore, in June Rs 1.44 lakh crore, in July Rs 1.49 lakh crore and in August Rs 1.43 lakh crore.

In some more economy news, the RBI is expected to deliver a 50 bps rate hike in its September Monetary Policy Committee meeting. The half a percentage point hike is expected as the Reserve Bank of India catches up with global central banks in not just fighting inflation, but also to stem rupee depreciation. RBI has already used up $100 billion in reserves to stabilise the local currency. “While this hike may help in allaying macrostability concerns, it would negatively affect the business cycle as nascent economic recovery may not be able to absorb such tightening of financial conditions,” said Edelweiss Securities in its report. CPI inflation is still 1 per cent above RBI’s tolerance threshold of 6%, and the recent build-up in food price momentum and potentially lower agri output would also be discomforting for the central bank, the brokerage noted.

Moving on. While 85% of respondents in India have adopted a hybrid cloud approach that can help drive digital transformation, the majority of them are struggling with the complexity to make all their cloud environments work together, according to a new market research from IBM. As organizations face skills gaps, security challenges, and compliance obstacles, only 30% of Indian respondents manage their hybrid cloud environments holistically – which can create blind spots and put data at risk. The IBM Transformation Index: State of Cloud commissioned by IBM and conducted by independent research firm, The Harris Poll, was created to help organizations map their cloud transformation and empower them to self-classify their progress. The Index consisted of more than 3,000 business and technology decision makers from 12 countries including India, and across 15 industries including financial services, manufacturing, government, telecommunications, and healthcare.

And lastly, let’s see how the share market performed today. Domestic equity markets trimmed early losses and were fluctuating between green and red in noon deals. Declining risk appetite, lower crude prices, and fresh bets in index heavyweights like Dr Reddy’s, Hindustan Unilever, Asian Paints helped erase losses. NSE Nifty 50 traded flat above 17,000 levels, whereas the S&P BSE Sensex gained over 50 points to trade at reclaim 57000. Renewed strength spilled to broader markets as well as Nifty MidCap 100 and Nifty SmallCap 100 surged up to 0.5 per cent. Sectorally, Nifty Auto and Nifty Realty indices gained over 1 per cent Nifty Energy and Nifty Bank indices, however, remained bogged down.

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Business News at 05:30 pm on 28th September 2022