Tuesday, January 18

Economy

India spends record $55.7 billion on gold imports in 2021: Report
Economy

India spends record $55.7 billion on gold imports in 2021: Report

India splurged a record $55.7 billion on gold imports in 2021, buying more than double the previous year's tonnage as a price drop favoured retail buyers and pent up demand emerged for weddings that were delayed when the pandemic first hit. The previously unreported details of the world's second biggest consumer nation's soaring imports were disclosed to Reuters by a senior government official who requested anonymity as he was not authorised to speak to media. The 2021 gold import bill easily doubled the $22 billion spent in 2020, and surpassed the previous high, set in 2011, of $53.9 billion, according to the official, who tracks broad import trends. In volume terms, India imported 1,050 tonnes of gold in 2021, the most in a decade, and far more than 430 tonnes imported in 2020, ...
Inflation woes keep central banks at a fix over monetary policy moves
Economy

Inflation woes keep central banks at a fix over monetary policy moves

By Administrator_India Capital Sands Inflation has been running red hot in many economies of the world. However, Covid-19 was expected to have slowed consumption and built up precautionary savings. The messaging from the central bankers around the world has been that the supply chain disruptions lie at the root of high inflation and are likely to be 'transitory'. What is confusing for the central bankers is probably the fact that the transitory phase has been running much longer than was earlier expected. Surely a pressure is building up on the central banks around the world to dial back the easy monetary policy. But, on the flip side, the apex bankers are still not sure if the recovery process has been strongly entrenched in the respective countries. There are evidences of stagfl...
Inflation pullback boosts RBI’s easy money policy before Oct policy meeting
Economy

Inflation pullback boosts RBI’s easy money policy before Oct policy meeting

By Administrator_India Capital Sands India’s headline rate of inflation eased in August as food prices cooled, boosting the case for the central bank to keep interest rates lower for longer to support economic growth. Consumer prices rose 5.3% last month from a year earlier, the Statistics Ministry said in a statement on Monday. That was the slowest rate since April’s 4.2%, while the median of 40 estimates in a Bloomberg survey was for a 5.6% gain. The pullback in the inflation print -- the last before the central bank’s October policy meeting -- will allow policy makers more room to retain their accommodative stance to support a durable economic recovery. One of the six-members of the Monetary Policy Committee had disagreed with continuing the easing bias at the last meeting. ...
Govt move to undo retrospective tax law means India to forego tax demands of Rs 50,000 crore
Economy

Govt move to undo retrospective tax law means India to forego tax demands of Rs 50,000 crore

By Administrator_India Capital Sands While the government has made the first move to nullify all retrospective taxes, till recently it had demanded upwards of Rs 50,000 crore from British telecom major Vodafone and energy giant Cairn. Introducing the Taxation laws (Amendment) Bill in the Lok Sabha on August 5, the government has sought to nullify the relevant retrospective tax clauses put in 2012. Finance and Corporate Affairs Minister Nirmala Sitharaman said the demand raised for indirect transfer of Indian assets made before May 28, 2012, shall be nullified on fulfilment of specified conditions such as withdrawal or furnishing of undertaking for withdrawal of pending litigation and furnishing of an undertaking to the effect that no claim for cost, damages, and interest shall ...
Monsoon expected to be normal in August-Sept after prolonged dry spell
Economy

Monsoon expected to be normal in August-Sept after prolonged dry spell

By Administrator_ India Capital Sands Following a prolonged dry spell that broke with heavy rains lashing several parts of the country since mid-July, the performance of the southwest monsoon in the remaining two months of the season is expected to be normal, the India Meteorological Department said today. This augurs well for the progress of Kharif sowing and output, but some experts said the conditions should be monitored till mid-August before arriving at a final picture because any shortfall in acreage beyond that period will be difficult to compensate. The met department, meanwhile, said in its mid-season forecast that rainfall in August and September is expected to be normal at 95-105 per cent of the Long Period Average (LPA) with a tendency to be on the positive side of ...
India’s economy may have grown 22.1% in Q1, but demand is still low: RBI
Economy

India’s economy may have grown 22.1% in Q1, but demand is still low: RBI

By Administrator_India Capital Sands The tapering of the second Covid-19 wave, coupled with an aggressive vaccination push, has brightened the near-term prospects for the Indian economy, and real gross domestic product (GDP) growth is estimated at 22.1 per cent in the April-June quarter, the Reserve Bank of India (RBI) said in its July bulletin on Thursday. “A solid increase in aggregate demand is yet to take shape. Even with a 9.5 per cent GDP growth in 2020-21, there will be substantial slack in the economy and demand pressures may take some more time to become evident,” the central bank warned in the article titled State of the Economy. “On the supply side, agricultural conditions are turning buoyant with the revival in the monsoon, but the recovery of manufacturing and serv...
Dollar pauses as rate hike fears ebb, Fed minutes up next
Economy

Dollar pauses as rate hike fears ebb, Fed minutes up next

By Administrator_India Capital Sands The dollar took a breather on Monday, after recent gains ran into a speed bump when details of last week's U.S. jobs report soothed jitters about the timing of U.S. interest rate hikes. While the headline June job creation figure beat forecasts, unemployment ticked higher, workforce participation didn't budge and the pace of hourly earnings growth slowed - suggesting rate rises could be further away than markets have come to fear. Against the risk-sensitive Australian and New Zealand dollars the greenback slipped 0.7% and 0.9%, respectively in the wake of the data on Friday, and then steadied on Monday. The dollar clawed back slightly against the yen, rising 0.14% to 111.15 yen early in the Asia session, after dropping just below 111 yen ...
Australian job vacancies surge to record, firms struggle to find workers
Economy

Australian job vacancies surge to record, firms struggle to find workers

By Administrator_India Capital Sands Job vacancies in Australia hit record highs in the May quarter to be 57% above pre-pandemic levels, while businesses in all sectors reported difficulties in finding workers in a rapidly growing economy. In a major boost for the employment outlook, figures from the Australian Bureau of Statistics out on Thursday showed vacancies in the three months to May surged 23.4%, from the previous quarter, to 362,500. That was 132,000 higher than in February last year before the coronavirus forced the closure of much of the economy. While a fresh outbreak had recently closed some cities, the demand for labour showed no sign of waning with 22% of businesses reporting at least one vacancy. "There has been a steady increase in the proportion of busin...
Bonds stung, dollar cheered by sudden hawkish turn at Fed
Economy

Bonds stung, dollar cheered by sudden hawkish turn at Fed

By Administrator_India Capital Sands Asian equities fell to a three-week low on Thursday after the U.S. Federal Reserve stunned investors by signalling it might raise interest rates at a much faster pace than assumed, sending bond yields and the dollar sharply higher. The dollar boasted its strongest single day gain in 15 months as 10-year U.S. Treasury yields jumped by the most since early March. The fallout in equities was softer, but enough to push MSCI's broadest index of Asia-Pacific shares outside Japan down about 0.6% to its lowest since late May. Japan's Nikkei fell 1% and S&P 500 futures were 0.4% lower in Asian trade. Emerging markets might not hold up as well, as they are vulnerable to the chance that early U.S. rate hikes suck funds out of riskier assets -...
Asian shares slip, bitcoin tumbles as inflation worries linger
Economy

Asian shares slip, bitcoin tumbles as inflation worries linger

By Administrator_India Capital Sands Asian stocks dipped and cryptocurrencies extended losses on Wednesday as uncertainties over inflation prompted investors to reduce exposure to riskier assets for now. Also weighing on digital coins was a new Chinese ban on financial institutions providing services related to cryptocurrency transactions. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.3% though Hong Kong and South Korea are closed for holiday. Mainland China's CSI300 slipped 0.6% while Japan's Nikkei lost 1.1%. Wall Street stocks slid late in the session to end lower on Tuesday, unable to sustain gains made after bumper earnings from Walmart and Home Depot. The S&P 500 lost 0.85%, with telecom shares leading the decline, while the Nasdaq Comp...