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BUSINESS EYE DECEMBER 02, 2022 | The Indian Eye 34

More growth & less inflation:

Govt sees good signs as Sensex and

Nifty make big gains

India’s wholesale and retail price inflation fell in October after remaining high for most part of the year

mainly due to supply chain disruptions following outbreak of the Russia-Ukraine war in February

OUR BUREAU

New Delhi/Mumbai
ndia is well placed to grow at
a “moderately brisk rate” in the
Icoming years on the back of mac-
roeconomic stability, despite global
monetary tightening, a finance minis-
try report said on Thursday. It further
said inflationary pressures will ease in
the coming months with the arrival of
kharif crops and at the same time job
opportunities will increase with im-
provement in business prospects.
The ‘Monthly Economic Review
for October 2022’ also cautioned
that the US monetary tightening is a
“future risk” which could lead to dip
in stock prices, weaker currencies
and higher bond yields, resulting in
higher borrowing costs for many gov-
ernments around the world.
It said a rapid deterioration in
global growth prospects, high infla-
tion, and worsening financial condi-
tions have increased fears of an im- Equity indices surged to fresh all-time highs on Thursday tracking a firm trend in global markets (ANI file photo)
pending global recession.
The spillovers of the global
slowdown may dampen India’s ex- remaining high for most part of the 216.85 points or 1.19 per cent to end Thanksgiving break with a spring in
ports businesses outlook. However, year mainly due to supply chain dis- at 18,484.10. During the day, it hit its their step, the S&P 500 ending at a
resilient domestic demand, a re-in- ruptions following outbreak of the 52-week high of 18,529.70, higher by two-month high as they finally see
vigorated investment cycle along Russia-Ukraine war in February. 262.45 points or 1.43 per cent. a glimmer of light at the end of the
with strengthened financial system Retail or CPI inflation fell to From the sensex pack, HCL tunnel after a painful year.
and structural reforms will provide 3-month low of 6.7 per cent, while Technologies, Infosys, Wipro, Power Also, oil held steady as the Eu-
impetus to economic growth going wholesale or WPI inflation was at Grid, Tech Mahindra, Tata Consul- ropean Union considered a high-
forward. “In a world where mone- 19-month low of 8.39 per cent. tancy Services, Hindustan Unilever, er-than-expected price cap on Rus-
tary tightening has weakened growth Russia and Ukraine are among HDFC, HDFC Bank and Mahindra sian crude and signs of challenges
prospects, India appears well placed the most important producers of & Mahindra were among the major to demand increased. West Texas
to grow at a moderately brisk rate in essential agricultural commodities, winners. Intermediate hovered around $78 a
the coming years on account of the including wheat, maize, sunflower Asian markets rallied Thursday barrel after losing almost 4% in the
priority it accorded (to) macroeco- seeds and inputs like fertilisers. and the dollar weakened further after previous session, with volumes likely
nomic stability,” the report said. Meanwhile, equity indices minutes from the Federal Reserve’s to be thin due to a US holiday.
The ministry said, so far in cur- surged to fresh all-time highs on latest policy meeting suggested it Whereas, Brent crude futures
rent year, India’s food security con- Thursday tracking a firm trend in could slow the pace of its rate hikes. dipped 50 cents, or 0.6%, to $84.91
cerns have been addressed and will global markets. The news provided traders with a barrel. Crude has tumbled this
continue to receive the utmost pri- Extending its rally to the third a cushion against concerns about month, unraveling the gains made in
ority from the government. “Easing straight day, the 30-share BSE surging Covid-19 cases in China that October after the Organization of Pe-
international commodity prices and benchmark rallied 762.10 points or have fanned speculation authorities troleum Exporting Countries and its
new kharif arrival are also set to 1.24 per cent to settle at 62,272.68, its will revert to lockdowns and other allies decided to reduce production.
dampen inflationary pressures in the record closing peak. During the day, economically debilitating measures The rupee appreciated 30 paise
coming months,” it said. it jumped 901.75 points or 1.46 per to fight the outbreak. to close at 81.63 (provisional) against
India’s wholesale and retail cent to its lifetime high of 62,412.33. The developments allowed Wall the US dollar on Thursday as a weak
price inflation fell in October after The broader NSE Nifty gained Street traders to head off to their greenback in the overseas market.

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