Dear Reader,
The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.The official numbers are here and your suspicions are confirmed: food and fuel are biting a bigger chunk of your wallet every month.
Consumer price inflation spiked to 6.3 percent in May. The price rise in edible oils and transportation and communication alone contributed to a third of the headline number.
The Reserve Bank of India has been urging the government to cut excise duty on fuel as petrol prices cross Rs 100 in several cities. What’s adding to the trouble is the rise in oil prices to a two-year high.
Well, fat chance of that! Oil minister Dharmendra Pradhan has asked states to cut their local taxes if they are concerned about the common man.
What about the central bank’s rate setting committee? Surely, this rise of inflation above 6 percent would be giving it something to think about. We argue today that it will likely gird its loins and continue supporting growth. You can read it here.
Part of this spike is owing to supply disruptions. Those are easing. That’s also bumping up economic activity as our recovery tracker shows here.
Overall, things are better than the year before when India faced the most stringent lockdown in the world. But what more can be done?
In a joint report, EY and Ficci have picked more than 600 “shovel-ready” low-carbon investment opportunities in the country that can help in post-pandemic economic recovery and job creation. It claims that these projects will draw investments worth Rs 6 lakh crore and can create 1.5 million new jobs. Is it just wishful thinking? Read our analysis here.
Do check out these investing insights from our research team:
SAIL: What are the impending growth triggers?
How much value will the potential buyer assign to IDBI Bank?
Can Equitas SFB weather the second wave of the pandemic?
What else are we reading today?
The NFRA wants to minimise accounting frauds by shining more light on financial reporting
The coming regime shift towards capital-heavy companies (Republished from the FT)
Technical picks: Triveni, LIC Housing Finance, Muthoot Finance and Bata (These are published every trading day before markets open and can be read on the app)
Ravi KrishnanMoneycontrol Pro