Economists expect RBI to hike policy rates by 35-50 bps in December 2022

Despite imminent slowdown, economists expect the Reserve Bank of India (RBI) to continue with rate hikes, reported Economic Times. According to HSBC India and Indonesia’s chief economist Pranjul Bhandari, the RBI may opt for a 50 basis points hike in December 2022 to lower inflation and restore external balances. IDFC First Bank economist Gaura Sen Gupta is also looking forward to a 50 bps rate hike next month. Barclays Capital’s chief economists Rahul Bajoria expects the central bank to deliver a 35 bps hike in December 2022, before it shifts to a neutral stance. He believes that a strong growth trajectory should support an RBI rate hike to contain inflation.

References
1. https://economictimes.indiatimes.com/news/economy/indicators/rate-hikes-to-continue-despite-imminent-slowdown/articleshow/95692597.cms
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
7.8 +0.5
Consumer Sentiments Index
Base September-December 2015
81.4 0.0
Consumer Expectations Index
Base September-December 2015
81.0 0.0
Current Economic Conditions Index
Base September-December 2015
81.9 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Dec 21 Mar 22 Jun 22 Sep 22
New projects 4.04 8.56 4.87 3.52
Completed projects 2.86 1.32 1.18 1.32
Stalled projects 0.08 0.43 0.53 0.06
Revived projects 1.98 0.33 0.29 0.08
Implementation stalled projects 0.66 0.09 0.29 0.26
Updated on: 28 Nov 2022 8:28PM
Quarterly Financials of Listed Companies
(% change) Dec 21 Mar 22 Jun 22 Sep 22
All listed Companies
 Income 23.4 20.8 40.3 24.7
 Expenses 21.3 19.8 41.5 26.2
 Net profit 35.4 31.3 21.1 -0.7
 PAT margin (%) 9.0 8.8 7.2 7.3
 Count of Cos. 4,755 4,668 4,672 4,451
Non-financial Companies
 Income 29.3 24.8 50.3 27.4
 Expenses 28.8 25.7 53.1 30.5
 Net profit 19.2 9.8 8.3 -21.9
 PAT margin (%) 7.5 7.6 5.7 5.1
 Net fixed assets 2.0 6.7
 Current assets 15.0 18.3
 Current liabilities 11.7 11.3
 Borrowings 3.6 10.5
 Reserves & surplus 11.3 7.3
 Count of Cos. 3,439 3,386 3,408 3,302
Numbers are net of P&E
Updated on: 28 Nov 2022 8:28PM
Annual Financials of All Companies
(% change) FY20 FY21 FY22
All Companies
 Income 0.6 -0.9 25.8
 Expenses 0.4 -3.2 24.7
 Net profit -3.8 75.3 61.3
 PAT margin (%) 2.0 4.4 8.0
 Assets 9.0 9.9 9.9
 Net worth 4.7 12.0 14.0
 RONW (%) 3.4 6.8 11.8
 Count of Cos. 33,286 32,160 8,832
Non-financial Companies
 Income -1.1 -1.9 31.7
 Expenses -0.9 -3.9 31.5
 Net profit -20.4 62.3 59.8
 PAT margin (%) 2.2 3.9 6.9
 Net fixed assets 11.3 2.2 2.1
 Net worth 2.0 10.5 14.5
 RONW (%) 4.6 7.5 13.3
 Debt / Equity (times) 1.2 1.0 0.7
 Interest cover (times) 1.9 2.4 4.3
 Net working capital cycle (days) 82 88 55
 Count of Cos. 26,274 25,220 6,566
Numbers are net of P&E
Updated on: 27 Nov 2022 6:02PM