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‘If rupee continues to be under pressure, RBI may look at alternate measures’

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Rahul Singh, Senior Fund Manager � Fixed Income, LIC Mutual Fund Asset Management Ltd, said that if the rupee continues to be under pressure, the RBI may look at alternate measures. The recent fall in 10-year US yield and dollar index may also have provided some respite for the time being.

Excerpts from the interview:

Q. How much repo rate hike do you expect in the upcoming monetary policy and what will be the stance?

A: We expect 35-50 bps repo rate hike in the upcoming policy. The MPC stance however may not be changed from the last policy.

Q. What will be the inflation and growth outlook by the RBI?

A: The RBI may continue to maintain that they see inflation around 6 per cent mark by Q4 FY23. Inflation has softened considerably from the levels we have seen in the 1st quarter. Further global commodity prices have corrected to a great extent which is good news considering India is a big importer, Plus, monsoon till now has been good. All this may give comfort to the RBI maintaining its Inflation level of 6 per cent by end of this fiscal year. The RBI may also be positive on their growth numbers and would at least maintain (if not revise upwards) the numbers projected in the last policy. GST numbers, credit growth and PMI numbers have been encouraging.

Q. Will the RBI continue to support rupee on the near term?

A: The RBI has always maintained that they would not want too much volatility in INR and may continue to maintain the same stance, though there might be direct intervention, our reading says they may not be too comfortable in letting reserves slip. It has come down from 650 billion to 572 billion as per latest data. If Rupee continues to be under pressure, the RBI may look at alternate measures. The recent fall in 10-year US yield and dollar index may also have provided some respite for the time being.

Q. Where you see bond yields if the RBI hikes rate in the August policy?

A: Rate hike is a certainty which the market may have factored in. The movement will play on what RBI says on their inflation forecast and how much of the impact they see on rupee movement. If the statement is like last policy with no major deviations in the projected numbers from last policy, we may see 10-year G-Sec yield falling further to 7.20 levels.

Q. Now FII’s net investment turned positive after nearly 9 months and indices are rising, do you think this trend will sustain?

A: While it is difficult to predict the future FII flows, it is fair to assume that FIIs may not wish to remain away from India for a long time. Rising domestic demand, attractive valuations and favourable macroeconomic factors may catch FIIs interest.

Q. What are your views on US Fed hinting that they are looking to slow the pace of rate hikes in the upcoming meetings?

A: If FED is convinced that Inflation is cooling down going forward, then this statement certainly makes sense. It could have originated looking at certain statistics which shows softness in crude and other commodities prices, weakening Chinese economy, Q2 GDP numbers and the talks regarding recession going ahead. However, the question remains that if PCE price index is 6.8 per cent and core PCE is 4.8 per cent, then is inflation softening going ahead?. The weak GDP numbers majorly owe to lower US government spending and higher inventories rather than indicating falling demand. Similar dovish statements were made earlier as well when there were rumours of 75 bps rate hike, however we saw two back-to-back 75 bps hike. My understanding is that as long as Inflation shows a declining trend, FED needs to be aggressive in controlling that otherwise it may unnecessarily elongate the entire hike cycle impacting the growth cycle going ahead.

Business

Mumbai: Social Activist Demands Action Against Police Officers For Negligence In Torres Multi-Crore Scam Investigation

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Mumbai: In a serious development concerning Torres massive financial fraud case, a Social Activist Shashikant Kawale has called for action against police officers who allegedly neglected their duty despite receiving prior warnings about fraudulent activities. 

Social Activist Shashikant Kawale wrote a letter addressed to senior law enforcement authorities, including the Commissioners of Mumbai and Navi Mumbai Police, the Maharashtra Cyber Crime Department, the Economic Offences Wing, and the Enforcement Directorate, has raised serious questions about the delay in action against fraudulent companies operating in Mumbai and surrounding areas. The letter highlights gross negligence by responsible officers despite early warnings regarding Torres Scam.

Whistle Blower Flags Concerns

The Whistle blower Shashikant Kawale had previously flagged concerns, urging the authorities to investigate the legality of these companies’ operations, government-issued licenses, mandates, board of directors, and operational documents. Specifically, the letter called for a detailed probe into the working methods and financial inflows/outflows of the company, Records of investors and agents involved and The suspiciously high monthly returns promised by the Torres Company.

About The Allegations

The letter alleges that had an inquiry been launched promptly, it would have prevented many investors from falling prey to false promises, sparing them from financial devastation. Despite explicit warnings that the companies were preparing to flee after defrauding investors, no significant action was taken.

The Social Activist Kawale has demanded an inquiry into officers who failed to act on the provided information, urging that those found guilty be held accountable under applicable regulations. The letter further appeals for systemic reforms to prevent the recurrence of such incidents.A social activist from Dharavi, Shashikant Kavale, first raised red flags in November last year and approached the Shivaji Park police and EOW, highlighting Torres’ dubious practices.

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Business

JSW MG Motor India Unveils Cyberster Roadster & M9 Limousine At Bharat Mobility Expo 2025

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New Delhi: MG Motor India has made a bold statement at the Bharat Mobility Global Expo 2025 with the launch of two groundbreaking electric vehicles—the MG Cyberster, India’s first all-electric roadster, and the MG M9, India’s first electric three-row presidential limousine.

These models, introduced under the new luxury brand channel, MG Select, highlight the company’s vision of bringing intelligent, sustainable, and customer-focused mobility solutions to India.

MG Cyberster: The All-Electric Roadster of the Future

The MG Cyberster takes luxury and performance to new heights as India’s first electric roadster. It features India’s first-ever electric scissor doors, opening and closing in just five seconds via a single-touch button. The built-in Dual Radar sensors ensure safety while opening the doors, while an anti-pinch feature prevents harm when closing.

Under the hood, the Cyberster delivers blistering acceleration, going from 0 to 100 kmph in just 3.2 seconds. The sleek, aerodynamic design is complemented by the industry’s slimmest 77 kWh battery pack, ensuring the vehicle remains both powerful and efficient, setting a new standard for modern roadsters.

MG M9: The Ultimate Electric Limousine

The MG M9 takes luxury to the next level with India’s first electric three-row presidential limousine. Designed for ultimate comfort, it features a touchscreen armrest for controlling reclining ottoman seats with 8 massage modes and 3-zone climate control.

The spacious cabin can accommodate seven passengers and offers features like a panoramic sunroof, front-opening skylight, and advanced audio systems for a theatre-like experience. With an electric-powered design, the MG M9 redefines the concept of luxury on wheels, offering unparalleled comfort and performance for discerning customers.

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Business

Internet users to surpass 900 million in India this year, AI a game changer

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New Delhi, Jan 16: Driven by the growing use of Indic languages for digital content, the internet user base in India is set to surpass 900 million by 2025, driven by the growing use of Indic languages for digital content, a report showed on Thursday.

The number of active internet users in India reached 886 million in 2024, marking a robust 8 per cent year-on-year growth. Rural India, with 488 million users, leads this growth and now accounts for 55 per cent of the total internet population, according to the report by the Internet and Mobile Association of India (IAMAI) and Kantar.

Nearly all internet users (98 per cent) accessed content in Indic languages, with Tamil, Telugu, and Malayalam emerging as the most popular due to their extensive availability.

Over half (57 per cent) of urban internet users prefer consuming content in regional languages, underscoring the growing demand for local language content across platforms, according to the report.

AI has emerged as a significant game changer over the past year. Nine out of 10 internet users have interacted with apps featuring embedded AI capabilities.

“The widespread acceptance and enthusiasm surrounding AI should encourage digital companies to introduce more next-generation AI features in India,” Biswapriya Bhattacharya, Director, B2B and Technology, Kantar Insights–South Asia, said.

The digital gender gap in India is steadily narrowing, with 47 per cent of all internet users in the country being women — so far the highest.

Female internet users now form a significant portion of shared device users in rural India at 58 per cent. This marks substantial progress in making digital access more inclusive and equitable over the years, the report noted.

Rural India dominates online engagement for top activities, including OTT video and music streaming, online communication, and social media usage, outpacing urban users in these categories.

Urban India leads in the adoption of non-traditional devices such as smart TVs and smart speakers, which have grown by 54 per cent between 2023 and 2024.

Concurrently, mobile devices remain the primary means of accessing the internet across both urban and rural demographics, said the report.

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