Business
If softening of inflation continues further, then it would eventually lead Fed to taper its aggression: Sneha Poddar
Sneha Poddar, AVP Research, Broking & Distribution, Motilal Oswal Financial Services, said if the softening of inflation continues further, then it would eventually lead to the US Federal Reserve to taper its aggression. The Reserve Bank of India (RBI) is more likely to follow the US Fed and thus would not taper its tone till its is adopted by the latter.
Here are excerpts from the interview:
Q. Do you think after US CPI inflation print which came below estimates will allow Fed to go slow on rate hike, and RBI will follow the same?
A: The US CPI inflation data for the month of July came in at 8.5 per cent, down from 9.1 per cent in June and slightly below expectation of 8.7 per cent. However the Fed officials have responded to softening inflation data by saying it doesn’t change their stance towards higher interest rates, as the inflation still remains above the unacceptable levels. Since this is just first sign of inflation peaking out, and is too early to rule out subsequent high inflation data, uncertainty will loom over when the US Fed would slow down on its aggressive rate hikes. If the softening of inflation continues further, then it would eventually lead Fed to taper its aggression. The RBI is more likely to follow US Fed and thus would not taper its tone till its is adopted by US Fed.
Q. 5.40 per cent repo rate is already above pre-pandemic level, but still the RBI maintains “withdrawal of accomodation” stance. Do you think the neutral level of the repo rate is at or above 6 per cent?
A: The RBI has cumulatively hiked the policy repo rate by 140bp to 5.4 per cent in FY23 till date. It reiterated its continued focus on “withdrawal of accommodation” to contain inflation while supporting growth. However, it kept its inflation/growth forecasts unchanged at 6.7 per cent/7.2 per cent YoY, respectively, for FY23. This seems very confusing as how can the rate hikes help contain inflation without hurting growth? Further, the MPC did not sound dovish at all. There was neither a change in stance nor a relief in the RBI Governor’s statement disclaiming a possible pause in rate hikes. Thus we believe that the terminal rate in this hike cycle might be at 5.75-6.0 per cent
Q. In the current market conditions, which sectors are likely to perform well from an investor returns point-of-view?
A: We believe BFSI can do well in rising interest rate scenario. On the other hand with good monsoon, upcoming festive season and softening of commodity prices, the demand both urban and rural are expected to revive and pick up and thus we are positive on Consumer, Auto and Retail. With the opening up of economy and the structural shift being witnessed in favour of the industry post Covid, QSR remains in a sweet spot. While uncertainty around quantum of interest rate hikes is likely to impact the performance of real estate stocks in the near term, longer-term thesis on revival of housing cycle remains intact. There is imminent opportunity in the domestic Hospitality industry and the expected upcycle bodes well for the sector. We are selectively looking at IT sector as valuations have become attractive for accumulation from long term perspective.
Q. Where you see levels on benchmark indices going forward considering the FI inflows in the domestic equities?
A: Strong momentum in the market has helped Nifty rally by more than 2500 points from June lows, and thus, has wiped out the entire decline for the calendar year till date and turned positive. Strong macro data, FII turning positive, steady earnings and healthy progress in monsoon have been some of the key factors supporting the market. FIIs (including primary market) turned positive for the month of July after nine months of continuous outflows and has been continuous buyer throughout the month of August so far. With the softening of commodity prices, even inflation seems to be peaking out and festive season is about to begin which should support demand and thus corporate earnings. Thus the overall trend in the market seems to be positive, however bouts of volatility can’t be ruled out as uncertainty over rate hike quantum and China-Taiwan tussle continues. Further, with this recent rally, Nifty now trades at ~20x FY23E, above its 10-year average, thus offering limited upside in the near term. Going forward, it could be a tug of war between domestic and global factors which could determine the market direction.
Business
Tesla rolls out Halloween Mode for ‘Model Y’ in India

Tesla India on Friday said it launched a new software update for Model Y and Model Y L vehicles that adds a range of Halloween-themed features, highlighting the company’s over-the-air (OTA) software update capabilities.
According to the Elon Musk-backed firm, the update allows Tesla vehicles to receive new features and improvements remotely without requiring a visit to a service centre.
Halloween Mode includes a ghost-themed vehicle avatar, Halloween sound effects, special lighting sequences, seasonal vehicle wraps and a themed lock sound, it said.
The update also introduces a ‘Trick or Treat Mode’ which activates sound and lighting effects when visitors approach the vehicle.
Other features include a photobooth function and a voice messaging feature that allows users to speak through the Tesla app and have the vehicle relay messages, the company said.
Tesla said customers can experience the new features at its Experience Centres across India.
The company currently operates those centres in Noida, Delhi, Gurugram, Chennai, Hyderabad, Bengaluru and Mumbai and has approved collision centres in Pune and Ahmedabad.
Earlier in October, Tesla CEO Elon Musk showcased a new version of the Roadster sports car with a prototype briefly lifting off the ground during a demonstration at a SpaceX facility in Texas.
A post on X shared by Musk showed the vehicle navigating an elevated curved track before becoming airborne for a short distance and landing safely, drawing comparisons to a flying car.
The showcase highlighted a specialised propulsion system that combines the electric vehicle platform with high-pressure air tanks and thruster technology.
According to Tesla, the system can generate lift and improve vehicle dynamics through strategically placed thrusters that help control movement while off the ground.
The test prompted enthusiastic reactions from company executives, who described it as evidence that flying-car technology is moving closer to reality. Tesla, however, did not provide a timeline for commercial deployment.
Musk said the vehicle would remain practical for everyday use, although he acknowledged that road legality could depend on local regulations.
Business
Maha CM directs development of state-of-the-art digital platforms for aggregator companies

Maharashtra Chief Minister Devendra Fadnavis on Thursday directed the transport department to build a state-of-the-art digital platform to provide real-time information on aggregator companies’ vehicles, drivers, and working hours, aiming to make app-based passenger transport services in the state safer, more transparent, and well-organised.
He instructed that this platform should integrate Artificial Intelligence (AI)-based analytics to maintain effective control over vehicle operations, driver dispatch, parking management, and passenger services.
CM Fadnavis gave these instructions during a meeting concerning the Maharashtra Aggregator Rules-2026. The review covered the growing number of vehicles in the aggregator sector, the challenges faced by independent taxi drivers, passenger safety, and transparency in ride allocation on digital platforms. Transport Minister Pratap Sarnaik, Additional Chief Secretary (Transport) Sanjay Sethi, Transport Commissioner Rajesh Narvekar, and other transport department officials were present.
The Chief Minister directed that complete digital details must be available for every vehicle operated by aggregator companies. This includes registration, assigned parking locations, driver profile, driving license, police verification, and other required documents.
Additionally, the system must maintain real-time logs indicating which driver is operating which vehicle across various shifts throughout the day. In the event of an incident, a robust mechanism should ensure that details regarding the vehicle and driver are immediately accessible.
By leveraging artificial intelligence on this platform, the system will analyse vehicle operations, driver shifts, and other critical parameters. This will allow regulatory authorities to monitor compliance with rules and enable prompt action whenever necessary, he said.
CM Fadnavis highlighted the need to verify whether independent taxi drivers and large fleet management companies receive equal opportunities when rides are allocated on app-based transport platforms.
He noted that it is essential to audit the criteria and reasons based on which specific vehicles are assigned rides on digital platforms. He directed officials to utilise technology to detect any bias or unfair discrimination in ride allocation algorithms.
The Chief Minister stressed that while passengers must receive safe and reliable service, local drivers must also get equal employment opportunities.
To achieve this, priority must be given to effective enforcement of rules, transparent ride allocation, and technical oversight of aggregator operations.
In light of the expansion of the state’s aggregator sector and growing passenger needs, he directed the Transport Department to develop an efficient, technology-driven regulatory framework that balances the interests of independent taxi drivers, passenger safety, and overall traffic discipline.
Business
Nifty, Sensex post early mild gains despite mixed global cues

The Indian equity markets opened with mild gains early on Thursday despite mixed global cues and elevated crude prices.
As of 9.25 am, Sensex added 168 points, or 0.23 per cent, to reach 73,414 and Nifty gained 45 points, or 0.20 per cent, to reach 22,744.
Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 gained 0.25 per cent, and the Nifty Smallcap 100 added 0.13 per cent.
Sectoral indices on NSE traded mixed with gains led by Nifty IT, up 0.80 per cent and pharma, up 0.30 per cent. Nifty private bank and media were among top losers, down 0.18 per cent and 0.16 per cent, respectively.
The opening gain of benchmarks may remain selective unless the Nifty decisively crosses 22,800, as the Federal Reserve’s policy message, elevated crude and high US bond yields continue to restrict broader risk-taking, an analyst said.
Brent crude remains elevated near $114.50 a barrel amid persistent geopolitical uncertainty, keeping energy costs high and leaving oil-sensitive sectors exposed to sustained cost pressures.
The Federal Reserve kept its policy rate unchanged, but two members voted for an increase, and markets raised expectations of another hike in December. The US 10-year Treasury yield consequently moved to around 5.02 per cent, indicating that the policy pause has not materially loosened global financial conditions.
Unless yields stabilise below recent levels, dollar assets may continue competing with emerging markets for capital and limit the durability of foreign inflows into India, market participants said.
In the previous session, Nifty closed at 22,698, down 0.22 per cent, after a recovery was capped by profit booking. Immediate support is placed at 22,600–22,650, while resistance is seen at 22,850–22,900.
In the previous session, Bank Nifty closed at 54,267, up 0.54 per cent. Immediate support is placed at 53,800–54,000, while resistance is seen at 54,600–54,800.
In Asian markets, China’s Shanghai index declined 0.82 per cent, and Shenzhen dipped 2.48 per cent, Japan’s Nikkei added 0.28 per cent, and Hong Kong’s Hang Seng Index advanced 0.06 per cent. South Korea’s Kospi lost 2.72 per cent.
The US markets ended in green overnight as Nasdaq added 0.27 per cent, S&P 500 gained 0.28 per cent, and the Dow Jones inched up 0.19 per cent.
On October 28, foreign institutional investors (FIIs) net bought equities worth Rs 872 crore, while domestic institutional investors (DIIs) bought equities worth Rs 643 crore.
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