Why the Widening Current Account Deficit is not an Immediate Cause of Worry
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India's current account deficit reached $9.4bn in Q1 FY25, down from a surplus of $4.6bn in Q4 FY24; trade balance deteriorated by $13bn, with Q1 FY25 deficit at $65bn compared to $52bn in Q4 FY24; net invisibles remained steady at a surplus of $55bn; capital account surplus moderated due to softer FII inflows; BoP surplus decreased from $31bn in Q4 FY24 to $5.2bn in Q1 FY25; forex reserves increased by $6bn to $652bn; FY25 CAD projected at 1% of GDP; expected marginal improvement in exports by 2% year-on-year; oil prices softened to $71-72 per barrel; RBI may desire additional reserves to manage future volatility; BoP surplus projected at $40-50bn despite $5bn inflow in Q1.

#CurrentAccountDeficit #India #Economy #ForeignExchange #TradeBalance #FiscalYear2025 #MonetaryEasing #CapitalFlows #Rbi #Bop

https://www.outlookbusiness.com/economy-and-policy/why-the-widening-current-account-deficit-is-not-an-immediate-cause-of-worry 

 US Court Claims Cognizant Favoured H-1B Holders Over Non-Indian Works, Firm to Appeal
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A US court found Cognizant Technology Solutions guilty of discriminating against non-Indian workers, stating the firm exploited H-1B visa loopholes to favor South Asians; the ruling requires Cognizant to compensate affected employees. Cognizant plans to appeal the decision, asserting its commitment to equal employment opportunities. The lawsuit was initiated by three Caucasian employees who claimed unfair treatment and replacement by Indian workers. Cognizant had the highest number of H-1B visas among US employers from 2013 to 2019. The ruling may lead to stricter visa approval processes for foreign workers, following recent reforms to the H-1B lottery system aimed at reducing abuse.

#Cognizant #H1bVisa #Discrimination #UsCourt #Employment #Technology #India #Lawsuit #VisaReform #Compensation

https://www.outlookbusiness.com/corporate/us-court-claims-cognizant-favoured-h-1b-holders-over-non-indian-works-firm-to-appeal 

 Should India Brace Itself for a Greater Depression in the US?
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The US economy is on the brink of a collapse greater than 2008, according to Shanmuganthan N's book 'RIP USD 1971-202X'; experts label this impending crisis as the 'Greater Depression'; the author argues the current monetary system is flawed and predicts a return to the gold standard; the US national debt has surged from under a trillion in 1980 to around 33 trillion by 2022; interest payments on this debt could rise to 50% of revenue in two years; the upcoming crisis is expected to impact India severely, with soaring import prices and collapsing exports; India should have prepared earlier but must start now.

#UsEconomy #GreaterDepression #India #GoldStandard #NationalDebt #Inflation #EconomicCrisis #ShanmuganthanN #MonetaryPolicy #AustrianSchool

https://www.outlookbusiness.com/economy-and-policy/should-india-brace-itself-for-a-greater-depression-in-the-us 

 Sensex, Nifty Jump 1% to Hit All-time Highs: What's Driving the Rally
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BSE Sensex breached 84,000 for the first time, hitting 84,248.69; Nifty reached 25,726.65; combined market cap rose by Rs 4 lakh crore to Rs 469.5 lakh crore; US Federal Reserve initiated monetary easing; Dow Jones closed above 42,000; US jobless claims dropped to lowest since May; Indian economy projected to grow 6.7% annually until 2030-31; Nifty expected to trade between 25,000-26,000; banking stocks led by ICICI Bank, HDFC Bank, and Kotak Mahindra Bank; FOMC suggests further rate cuts; analysts predict sectoral rotation.

#Sensex #Nifty #StockMarket #UsFederalReserve #EconomicGrowth #BankingStocks #GlobalMarkets #EquityIndices #RateCuts #Investment

https://www.outlookbusiness.com/markets/sensex-nifty-jump-1-to-hit-all-time-highs-whats-driving-the-rally 

 US Fed Cuts Rate: Should Markets Worry About Recession in US?
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The US Federal Reserve cut its benchmark interest rate by 50 basis points to 4.75% - 5% on 19 September 2024; this marks the first dissent by a governor since 2005, with Governor Michelle Bowman voting for a smaller cut; Fed chair Jerome Powell stated the economy is in a good place, expecting two more 25 bps cuts this year, four in 2025, and two in 2026; historical data shows that aggressive rate cuts often precede recessions; the US added 142,000 jobs in August 2024, with unemployment at 4.2%; experts express caution about potential recession despite current economic strength; investors are weighing the implications of the rate cut on market stability and future growth.

#UsFederalReserve #InterestRates #Recession #Economy #JeromePowell #LaborMarket #StockMarket #FinancialPolicy #EconomicOutlook #JobGrowth

https://www.outlookbusiness.com/markets/us-fed-cuts-rate-should-markets-worry-about-recession-in-us 

 US Fed Rate Cut: What it Means for the Indian Economy?
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The US Federal Reserve cut its benchmark interest rate by 50 basis points on 18 September 2024, marking the first rate cut in over four years. The Reserve Bank of India (RBI) has stated there will be no rate cuts in India in 2024 due to inflation around 5%. Economic Affairs Secretary Ajay Seth indicated that the US rate cut won't significantly impact investment inflows to India. Economists, however, expect increased capital inflows into India, benefiting the debt market and potentially lowering domestic bond yields below 6.8%. Dr. Manoranjan Sharma noted that the Fed's decision could enhance global liquidity, positively affecting Indian equities. The RBI may consider a shallow rate cut cycle of 50bps by March 2025, depending on food inflation trends, with expectations of maintaining the current policy in October 2024 and possibly cutting rates in December 2024.

#UsFed #InterestRate #IndianEconomy #Inflation #Investment #Economics #Rbi #GlobalLiquidity #CapitalInflows #MarketImpact

https://www.outlookbusiness.com/economy-and-policy/us-fed-rate-cut-what-it-means-for-the-indian-economy 

 US Fed Rate Cut Boosts Market: Will the Big Gains Continue?
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The US Federal Reserve cut interest rates by 50 basis points on 19 September 2024, leading to record highs for India's Sensex and Nifty indices, with Sensex surpassing 83,700 and Nifty reaching 25,611. Analysts express optimism but caution over mixed US economic data and high domestic valuations. Unmesh Kulkarni from Julius Baer India notes that market sentiment will depend on global conditions, particularly the US economy's performance. Historical trends show that previous 50 basis point cuts often preceded recessions, but current inflation trends are stabilizing. Dr. V K Vijayakumar from Geojit Financial Services suggests the rate cut could lead to market consolidation with an upward bias. Analysts recommend focusing on sectors like banking, telecom, consumption, IT, and pharma for safety amid volatility.

#UsFed #InterestRates #IndianMarket #Sensex #Nifty #Economy #Investors #Volatility #Banking #Stocks

https://www.outlookbusiness.com/markets/us-fed-rate-cut-boosts-market-will-the-big-gains-continue 

 India Managed Inflation Better Than Developed Economies Including the US, Germany, Reveals SBI Report
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State Bank of India (SBI) report highlights India's inflation management from 2021 to 2024; India maintained inflation targets better than the US and Germany; SBI credits RBI's monetary policies and government fiscal measures for success; RBI's inflation target set at 4%; report emphasizes the importance of a coordinated financial ecosystem; food inflation remains high but RBI's efforts have stabilized expectations; report rejects excluding food prices from inflation calculations; effectiveness of monetary policy improved post-inflation targeting regime.

#India #Inflation #Sbi #Rbi #Economy #FiscalPolicy #MonetaryPolicy #Covid19 #FinancialEcosystem #FoodPrices

https://www.outlookbusiness.com/economy-and-policy/india-managed-inflation-better-than-developed-economies-including-the-us-germany-reveals-sbi-report