Business
Consumer inflation at 8-year high may ‘trigger’ quicker rate hikes
Sounding a red alert on India’s CPI inflation at an 8-year high print of 7.79% YoY in April, Acuite Ratings has said it may trigger quicker rate hikes.
“If inflation pressures continue to mount there is a likelihood of additional hikes thereby taking the rate to its pre- pandemic level of 5.15 per cent or even higher in FY23. Additionally, we also expect CRR to be hiked by another 50 bps by H1FY23,” Acuite Ratings said.
Given the tone of urgency in RBI’s statement to support the altered inflation-growth dynamics, “we now revise our call and expect the RBI to hike repo rate by an additional 60 bps in the rest of FY23”.
The increasing price pressures was in motion even before the onslaught of the geopolitical conflicts. However, lingering war between Russia and Ukraine, unprecedented level of sanctions, elevated oil and commodity prices along with prolonged supply chain disruptions have escalated the inflationary concerns both in the global as well as domestic economies, it said.
Globally most economies have shifted from an extended disinflationary phase to tackling strong inflationary concerns, causing key central banks monetary policy rhetoric to switch to extreme hawkishness and policy tightening in 2022 from pandemic-era accommodative policies.
“From domestic standpoint, for FY23, inflation drivers are likely to face considerable pressure from persistent hardening of input prices. The heightened pressure from commodity prices is also coinciding with unlocking of the economy post Omicron wave while vaccination coverage continues to gain traction. While we stick to our estimate of 5.9 per cent for FY23 CPI inflation, we now believe that there is a buildup of upside risks,” Acuite Ratings said.
“Going forward, we expect the core inflation to remain sticky at elevated levels given upward revision of petrol and diesel prices by the OMCs in order to reduce the under-recoveries being accumulated by them at the current crude prices of USD 100 plus per barrel.”
Acuite Ratings said the government, however, may also consider a partial absorption of the increased prices through a further excise duty cut on petrol and diesel which could provide marginal comfort from inflation perspective. While the direct pass-through of elevated commodity prices can be seen through increasing prices of petrol and diesel and non-subsidized LPG, indirect pass through of unprecedented input cost pressures by manufacturers is visible through rising prices of certain personal care products within FMCG sector which will get reflected in the core CPI print in the coming months.
After moderating close to RBI’s inflation target rate in September-21, headline CPI inflation has been rising incessantly with the print breaching the upper tolerance threshold in Q4 FY22, averaging at 6.34 per cent. It has started to gather steam in April-22 gaining strength from the geo-political crisis and rising to an eight year high of 7.79 per cent YoY from 6.95 per cent YoY in March-22.
Business
Sensex, Nifty surge up to 1 pc in early deals; IT shares lead gains

Indian equity benchmarks traded higher in early trade on Wednesday with gains of nearly 1 per cent each tracking positive global cues and buying in IT stocks.
In morning trade, Sensex was trading 0.94 per cent or 695 points higher at 74,548.69, hitting an intraday high against previous close of 73,852.90.
Similarly, Nifty surged 0.86 per cent or almost 200 points to 23,086.95 from previous close of 22,888.95.
Earlier in the day the benchmarks opened higher, with the Sensex opening at 74,337.93, up 485.03 points or 0.66 per cent.
Nifty opened at 23,016.00, up 127.05 points or 0.56 per cent.
Sector-wise, Nifty IT, Nifty PSU Bank, Nifty Cement, Nifty MidSmall IT & Telecom and Nifty Oil & Gas increased up to 1.97 per cent.
However, Nifty Media and Nifty Chemicals were trading in the red.
According to market experts, as Brent crude prices and US bond yields remained elevated, the market is likely to remain under pressure and the sell-on-rally construct will continue in the near-term.
However, improving earnings growth, fair valuations of large-caps and strong domestic liquidity will support the market on declines, they said.
IT and banking which have performed well in Q2 and are attractively valued, will see strong DII-led accumulation on corrections, the experts said.
Notably, the Q2 results season has started on a positive note and market action going forward will be more stock-specific and results-sensitive, experts noted.
In the last trading session on October 19, FIIs remained net sellers, offloading equities worth approximately Rs 1,148 crore, while DIIs continued to support the market with net purchases of around Rs 3,200 crore.
In addition, Asian shares traded higher following gains in US stock futures after upbeat earnings from major AI-linked companies renewed investor interest in technology shares.
Business
Tesla shareholders to vote on Musk board seat and $158 billion pay award on Dec 3

Tesla has scheduled its annual shareholder meeting for December 3, where investors will vote on the re-election of Chief Executive Elon Musk and other directors, along with an advisory resolution on executive compensation and the appointment of the company’s auditor.
According to a proxy filing with the US Securities and Exchange Commission, Tesla has nominated Musk, Chair Robyn Denholm and director JB Straubel for new three-year terms on the board.
Shareholders will also be asked to approve, on a non-binding basis, executive compensation for 2025 and ratify PricewaterhouseCoopers as Tesla’s independent auditor for the fiscal year ending December 31.
Moreover, the proxy statement disclosed executive compensation attributed to Musk for 2025 of about $158.36 billion, consisting entirely of stock-based awards.
The figure reflects the accounting value assigned to performance-linked equity grants and does not represent cash compensation received by the billionaire entrepreneur.
Tesla said the awards remain contingent on the achievement of specified market capitalisation and operational targets.
The company previously reported in May that Musk’s realised compensation for 2025 was zero with none of the 12 tranches tied to the incentive program having been earned.
The equity package comprises roughly 423.7 million restricted shares that vest only after predetermined milestones are met.
In addition, any earned shares are generally subject to a five-year holding requirement, with limited exceptions.
The annual meeting will be held at Tesla’s Gigafactory Texas facility in Austin at 3 pm. However, Central Time and will also be accessible online.
Additionally, the filing highlighted several board-level links between Tesla and SpaceX.
However, the proxy statement did not reference any potential merger involving Tesla and SpaceX.
Apart from that, Elon Musk-backed SpaceX is scheduled to announce its third-quarter results on Tuesday after its shares fell nearly 35 per cent from their post-listing high.
This will be the company’s second quarterly earnings report since going public in June, following a volatile stretch for the stock.
The stock has dropped around 35 per cent from the record high it hit soon after its debut.
Business
Oversight Board criticises Meta over election-related moderation errors

The independent Oversight Board on Tuesday criticised Meta, saying the social media firm must improve the transparency and consistency of its election-related enforcement after a series of moderation failures involving political accounts in the United States and Brazil.
In a statement, the Board said it remained concerned by what it described as recurring shortcomings in Meta’s election integrity efforts and warned that mistakes in content moderation risk either suppressing legitimate political speech or undermining public confidence in electoral processes.
It pointed to the removal of political activist accounts linked to the ‘No Kings’ movement in the United States and restrictions placed on accounts associated with Brazilian President Luiz Inacio Lula da Silva during election periods as examples of enforcement actions that fuelled concerns about electoral interference.
According to the Board, the erroneous action against the No Kings Instagram account should have been detected by Meta’s safeguards designed to prevent moderation mistakes.
Meanwhile, it also questioned why the accounts were not included in Meta’s Cross-Check program which provides additional human review for high-profile civic and political entities before actions are taken that could affect participation in major public events.
The Board said Meta’s enforcement of fraud-related policies against ad accounts linked to Lula during Brazil’s presidential election campaign similarly represented a failure that should have been escalated to specialist reviewers.
The comments revisit concerns raised by the board following Brazil’s 2022 presidential election, when it called on Meta to establish measurable benchmarks for assessing the effectiveness of its election integrity programs and to publish relevant performance data.
While Meta regularly discloses broad statistics such as the number of advertisements archived or accounts removed, the Board said the company has yet to provide public metrics that adequately measure the effectiveness of its enforcement systems or identify significant shortcomings.
Moreover, the Board also warned that the wrongful removal of political content ahead of elections could have a chilling effect on political participation and potentially undermine electoral integrity.
“Automated enforcement tools must take language, nuance, and political context into account to better protect political speech that does not incite violence,” according to Oversight Board.
Meta had pledged in 2025 to reduce moderation errors while allowing greater freedom of expression around elections and political debate.
The Board said recent incidents suggest further improvements are needed for the company to meet that commitment.
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