Let’s begin with the share market – Indian benchmarks closed in red after a volatile session of trade amid weak global cues. The BSE Sensex closed over 200 points lower, at 62,626 while NSE Nifty settled 0.3% lower at 18,642. In the broader markets, the NSE MidCap 100 was down 0.46%, and the SmallCap index ended marginally in red. All sectors faced losses, barring Nifty PSU Bank, Nifty FMCG and Nifty Oil & Gas. Bears kept pushing domestic indices lower amid unfavorable global cues, with significant selling in metals and IT stocks. The mood was dampened by renewed concerns over policy tightening by the Fed in response to strong economic data out of the US. However, while easing COVID curbs in China benefited the demand outlook, fresh sanctions on Russian oil further added volatility to global oil markets. Investors at home await the RBI policy meet tomorrow, which is expected to slow the pace of rate hikes, in light of easing food prices.
Moving on – All eyes are on the Reserve Bank of India’s Monetary Policy Committee as it began its bi-monthly policy review session on Monday, December 5. Analysts expect that the RBI MPC is set to announce further repo rate hikes amid elevated inflation, geopolitical tensions and fears of a global recession, on Wednesday, December 7, once the three-day review session has concluded. The consensus among most experts states that the repo rate will be hiked by 25-35 basis points; the repo rate currently stands at 5.9%. The RBI Governor, Shaktikanta Das, will announce the committee’s policy decisions which will be closely watched by the market for further cues.
In another development – The World Bank has revised upwards its GDP growth forecast for India to 6.9 per cent for 2022-23, saying the economy was showing higher resilience to global shocks. In October, it had cut India’s GDP growth forecast to 6.5 per cent from 7.5 per cent earlier. Now, it has upgraded the projection to 6.9 per cent for 2022-23. In its India Development Update, the World Bank said the revision was due to higher resilience of the Indian economy to global shocks and better-than-expected second quarter numbers. India’s gross domestic product, which grew 8.7 per cent in previous 2021-22 financial year, expanded 6.3 per cent in July-September 2022-23.
Meanwhile – Senior citizen investors may have suffered due to rate cuts, but it has helped people looking for loans to buy houses for them. Along with low interest, cheaper homes due to lower demand during the pandemic period and improvement in job situations post Covid have created a favourable situation for the real estate segment. Market volatility and unattractive rate of interest on fixed-income instruments have also made the investments in residential real estate relatively more attractive. Increasing commercial activities and preferences of people to stay near their workspaces may also act as catalysts to boost the demand. The market outlook is certainly positive and given the confidence built in 2022, the markets will see sustained growth over the next few years. The real estate industry is now set to move beyond the past and 2023 will be an exciting time to discover.
In other developments – According to industry body Fertilisers Association of India, the government’s fertiliser subsidy will rise to Rs 2.3-2.5 lakh crore in this fiscal but the bill may fall by 25 per cent in the 2023-24 financial year with moderation in global prices. FAI expressed concern that the fixed cost of urea has not been increased affecting the viability of urea plants. It also pointed out that the industry is running on a very thin margin, which is hampering new investments in this sector. The industry body said there is sufficient availability of fertilisers, including urea and DAP, for the ongoing rabi season. The fertiliser subsidy stood at Rs 1.62 lakh crore in the previous financial year.
Lastly – Uniparts India IPO received a healthy response from all categories of investors, and was subscribed 25.32 times from 30 Nov to 2 Dec. The issue price band was fixed at Rs 548-577 per share. The shares of the Indian global manufacturer of engineered systems and solutions are expected to list on BSE and NSE stock exchanges next week on Monday, 12 December. Meanwhile, the share allotment will be finalised by the company this week on Wednesday, 7 December. IPO investors can check their share allotment status online through either the BSE website or the IPO registrar’s portal. Link Intime India Private Ltd is the registrar of the issue. Ahead of share allotment, Uniparts India IPO shares are commanding a grey market premium of Rs 60 today.