TMS Ep281: RBI on inflation, startup funding, IT stocks, base effect

Consumer inflation accelerated to five-month high in September to touch 7.41%. And at 8.6%, the inflation in food items was at a 22-month high last month. So as the retail inflation stayed above the upper limit of 2-6% band for the third straight quarter, all eyes are on RBI now. We ask what can the central bank do to calm the prices

Imported inflation due to the war is also adding fuel to already high retail prices. The effect of war and global slowdown has reached Indian shores too. It has also derailed India’s start-up juggernaut. The country had added a record 44 unicorns in 2021. And in the July-September quarter, just two start-ups made it to the coveted unicorn list. Venture funding data from two separate sources indicates that Indian start-ups are in the middle of a harsh funding winter. While the global situation is not good, the slowdown is more pronounced in India. 

Despite a bleak global background, top IT giants including TCS, HCL Technologies and Infosys have wrapped up their September quarter earnings that broadly came in line with the Street’s expectations. So, what do the Q2 results indicate for the IT sector amid growing fears of recession? 

Pandemic disrupted economic activities across the world, throwing shocking growth numbers. India’s GDP growth too fell in the negative zone in 2020. But, next year, when there was a slight rebound in economic activities, the growth numbers again threw a surprise. But the sudden jump in GDP growth was due to the previous year’s low base. This episodeb of the podcast tells more about it.