Weekly News Roundup at 10:00 am on 6th April, 2024

Let’s begin. The Reserve Bank this week retained inflation projection at 4.5 percent for the current financial year, lower than 5.4 percent in the last fiscal. Assuming a normal monsoon this year, CPI inflation for the current year is projected at 4.5 percent, with Q1 at 4.9 percent, Q2 at 3.8 percent, Q3 at 4.6 percent, and Q4 at 4.5 percent. RBI Governor Shaktikanta Das also stressed on the need to remain vigilant on food prices, given the forecast of higher temperatures between April-June. He also said that the impact of the reduction in fuel prices on inflation will deepen in the coming months. Das, however, said the elephant (inflation) seems to have gone for a walk and RBI wants it to remain in the forest.
The Reserve Bank of India’s Monetary Policy Committee has also decided to keep the policy repo rate unchanged at 6.5 per cent as retail inflation continues to be above its target of 4 per cent. This is the seventh consecutive meeting that the MPC has maintained a status quo on the repo rate. The repo rate, is the interest rate at which banks draw funds from RBI to overcome short-term liquidity mismatches. The MPC had maintained the status quo on policy rates and stance in its last review which was held in February 2024. RBI has also maintained the stance of ‘withdrawal of accommodation’. The strengthening of rural demand, improvement in employment condition and is expected to boost private consumption, Das added.
Meanwhile, The National Stock Exchange is awaiting approval from the capital markets regulator Sebi to kickstart the much-awaited Initial Public Offering process, its MD and CEO Ashishkumar Chauhan said. Additionally, he said that retail investors should avoid trading in the high-risk-derivatives and, that only informed investors should get into such markets. According to a Sebi study in the past, nine of the 10 traders lose money in derivatives trades. When asked about NSE’s IPO plans, Chauhan on Thursday said, quote, “We will submit a revised Draft Red Herring Prospectus as and when we get approval from Sebi,” unquote. BSE launched its IPO in 2017 and is currently listed on the NSE.
Moving on. Amid the heat of the ongoing Lok Sabha electioneering, the Centre has announced plans to significantly increase wheat purchase from non-traditional states of Uttar Pradesh, Rajasthan, and Bihar and set a target of seven-fold jump in procurement to 50 lakh tonnes in the ongoing 2024-25 marketing year. Further, even as the ban on outbound shipments of wheat continues, “it will be a dream for us to export now”, Food Secretary Sanjeev Chopra told reporters on Thursday. While Uttar Pradesh, Rajasthan, and Bihar put together contributed only 6.7 lakh tonnes to the central pool during the 2023-24 marketing year (April-March), the Union Food Ministry has decided to procure 16 per cent of the total wheat procurement target of 310 lakh tonne set for 2024-25.
Over to industry. Adani Green Energy Limited this week announced that it has surpassed 10,000 megawatts of operational portfolio, delivering reliable, affordable, and clean power to the national grid. AGEL’s operational portfolio consists of 7,393 MW solar, 1,401 MW wind and 2,140 MW wind-solar hybrid capacity. The company in a regulatory filing said, quote, “The milestone is a testament to AGEL and its development partners firmly moving towards the goal of 45,000 GW renewable energy by 2030,” unquote. AGEL’s 10,934 MW operational portfolio will power more than 5.8 million homes and avoid about 21 million tonnes of CO2 emissions annually, it said.
Moving on. India’s manufacturing Purchasing Managers’ Index for the month of March continued to expand with HSBC PMI for the sector coming in at 59.1 as against 56.9 in February. According to the HSBC India Manufacturing Purchasing Managers’ Index, compiled by S&P Global, the March numbers climbed to a 16-year high on the back of the strongest increases in output and new orders since October 2020, parallel to the second-sharpest upturn in input inventories in the history of the survey. The notable improvement in operating conditions reflected stronger growth of new orders, output and input stocks as well as renewed job creation, it said.
Lastly, money matters. As per the Office Memorandum dated April 2, 2024, the Department of Personnel and Training has released instructions on a range of allowances available to central government employees. Central government employees receive various allowances to compensate for housing, transportation, education, healthcare and travel expenses, among others. In line with its 2016 evaluation and recommendations, the 7th Pay Commission reviewed all benefits provided to central government employees, as well as those for railway workers, civilian defence workers, and defence personnel. The six allowances revised by the Centre include Children Education Allowance, Risk Allowance, Night Duty Allowance, Over Time Allowance, Special Allowance Payable to Parliament Assistants, and Special Allowance for Child Care for Women with Disabilities.