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Friday, August 12, 2022

The Expresso Business Update

Your Business Expresso is served! The Indian Express brings to you the latest updates from the world of Indian and international business. Your one stop shop for all finance and business stories.

Episode 526 August 5, 2022

Today’s Latest Business News, Finance and Share Market News at 5:30 pm on 5th August 2022

Today’s Latest Business News Transcript at 5:30 pm on 5th August 2022

“You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.

First up, the biggest news of the day. The Reserve Bank on Friday raised the key interest rate by 50 basis points, the third straight increase since May in an effort to cool stubbornly high inflation and defend the rupee. The repurchase rate was raised by 50 basis points to lift the interest rate to the pre-pandemic level. The 5.40 per cent repo rate was last seen in August 2019. Announcing the rate hike, RBI Governor Shaktikanta Das did not offer any indication of a change in the stance or a possible pause in the next policy due in late September. The Reserve Bank of India’s six-member rate-setting panel voted unanimously on the rate hike decision while sticking to its resolve to withdraw the accommodative stance. It, however, retained GDP growth projection at 7.2 per cent for the current fiscal ending March 31, 2023, and kept the inflation outlook for the year unchanged at 6.7 per cent.
Meanwhile, housing sales are likely to be hit, especially in affordable and mid-income categories, following the RBI’s decision to hike repo rate, according to real estate developers and consultants. However, the impact of RBI’s decision to raise the benchmark lending rate by 50 basis points to 5.40 per cent is expected to be for a short term, they added. “A hike by 50 basis points is definitely on the higher side, and home loan lending rates will now edge further into the red zone,” real estate consultant Anarock Chairman Anuj Puri said. This finally marks the end of the all-time best low-interest rates regime, one of the major factors that drove housing sales across the country since the pandemic, he added. Knight Frank India CMD Shishir Baijal said the third subsequent rate increase will mean a deterioration of affordability and may impact the sentiments of homebuyers.
Now, some overseas news. The American job market has defied raging inflation, rising interest rates, growing recession fears. Month after month, US employers just kept adding hundreds of thousands of workers, often beating forecasters’ expectations. But now economists worry that signs of weakness are starting to turn up in hiring, threatening one of the United States’ last remaining redoubts of economic strength. Job openings are down, and the number of Americans signing up for unemployment benefits is up. The US Labor Department is set to present report on how many jobs were created in July and whether the super-low US unemployment rate has begun to tick higher. Forecasters, on average, expect the economy to have picked up another 250,000 jobs last month, according to a survey by the data firm FactSet. That would be a solid number in normal times but would mark a big deceleration for 2022: Employers have been hiring an average 457,000 workers a month so far this year.
Moving to an exciting update from the green energy sector. Switzerland is adding a much needed cog in the wheel to its energy supply with an underground hydropower plant that says it has capacity to store enough electricity to charge 400,000 car batteries simultaneously. Developers of the $2.30 billion Nant de Drance plant in the canton of Valais, which came online in July, say the facility operates like a giant battery. Its six turbines tucked in a cavern 600 metres below ground between the Emosson and Vieux Emosson reservoirs have capacity of 900 MW, making it one of the most powerful pumped storage plants in Europe. During peak demand, Nant de Drance produces electricity from hydropower. But when output from sources such as wind and solar exceeds demand, the plant stores the surplus electricity by pumping water into the higher Vieux Emosson reservoir. The plant, which has taken 14 years to build, will be officially opened next month.
In other news, mortgage lender HDFC Ltd on Friday said it has raised around Rs 8,700 crore from a clutch of investors under ‘Syndicated Social Loan Facility’ to cater to the affordable housing segment in the country. The country’s largest mortgage lender by asset size said it has raised the amount by way of external commercial borrowings. “This landmark financing further promotes HDFC’s longstanding mission to be the leading provider of housing finance in India. Proceeds from the social loan would go towards financing affordable housing loans,” the company said.
Finally, here’s what happened in the stock market today. Domestic benchmark indices saw a volatile trading session on Friday. BSE Sensex danced between gains and losses for most of the day before closing at 58,387. NSE Nifty 50 index settled at 17,397. Mahindra & Mahindra was the top laggard on Sensex, followed by Reliance Industries, Maruti Suzuki India, and IndusInd Bank. Ultratech Cement added 2.31%, accompanied by ICICI Bank, Airtel.

You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories.

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Today’s Latest Business News, Finance and Share Market News at 5:30 pm on 5th August 2022Today's Latest Business News Transcript at 5:30 pm on 5th August 2022 "You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express. " First up, the biggest news of the day. The Reserve Bank on Friday raised the key interest rate by 50 basis points, the third straight increase since May in an effort to cool stubbornly high inflation and defend the rupee. The repurchase rate was raised by 50 basis points to lift the interest rate to the pre-pandemic level. The 5.40 per cent repo rate was last seen in August 2019. Announcing the rate hike, RBI Governor Shaktikanta Das did not offer any indication of a change in the stance or a possible pause in the next policy due in late September. The Reserve Bank of India's six-member rate-setting panel voted unanimously on the rate hike decision while sticking to its resolve to withdraw the accommodative stance. It, however, retained GDP growth projection at 7.2 per cent for the current fiscal ending March 31, 2023, and kept the inflation outlook for the year unchanged at 6.7 per cent. Meanwhile, housing sales are likely to be hit, especially in affordable and mid-income categories, following the RBI's decision to hike repo rate, according to real estate developers and consultants. However, the impact of RBI's decision to raise the benchmark lending rate by 50 basis points to 5.40 per cent is expected to be for a short term, they added. "A hike by 50 basis points is definitely on the higher side, and home loan lending rates will now edge further into the red zone," real estate consultant Anarock Chairman Anuj Puri said. This finally marks the end of the all-time best low-interest rates regime, one of the major factors that drove housing sales across the country since the pandemic, he added. Knight Frank India CMD Shishir Baijal said the third subsequent rate increase will mean a deterioration of affordability and may impact the sentiments of homebuyers. Now, some overseas news. The American job market has defied raging inflation, rising interest rates, growing recession fears. Month after month, US employers just kept adding hundreds of thousands of workers, often beating forecasters' expectations. But now economists worry that signs of weakness are starting to turn up in hiring, threatening one of the United States' last remaining redoubts of economic strength. Job openings are down, and the number of Americans signing up for unemployment benefits is up. The US Labor Department is set to present report on how many jobs were created in July and whether the super-low US unemployment rate has begun to tick higher. Forecasters, on average, expect the economy to have picked up another 250,000 jobs last month, according to a survey by the data firm FactSet. That would be a solid number in normal times but would mark a big deceleration for 2022: Employers have been hiring an average 457,000 workers a month so far this year. Moving to an exciting update from the green energy sector. Switzerland is adding a much needed cog in the wheel to its energy supply with an underground hydropower plant that says it has capacity to store enough electricity to charge 400,000 car batteries simultaneously. Developers of the $2.30 billion Nant de Drance plant in the canton of Valais, which came online in July, say the facility operates like a giant battery. Its six turbines tucked in a cavern 600 metres below ground between the Emosson and Vieux Emosson reservoirs have capacity of 900 MW, making it one of the most powerful pumped storage plants in Europe. During peak demand, Nant de Drance produces electricity from hydropower. But when output from sources such as wind and solar exceeds demand, the plant stores the surplus electricity by pumping water into the higher Vieux Emosson reservoir. The plant, which has taken 14 years to build, will be officially opened next month. In other news, mortgage lender HDFC Ltd on Friday said it has raised around Rs 8,700 crore from a clutch of investors under 'Syndicated Social Loan Facility' to cater to the affordable housing segment in the country. The country's largest mortgage lender by asset size said it has raised the amount by way of external commercial borrowings. "This landmark financing further promotes HDFC's longstanding mission to be the leading provider of housing finance in India. Proceeds from the social loan would go towards financing affordable housing loans," the company said. Finally, here's what happened in the stock market today. Domestic benchmark indices saw a volatile trading session on Friday. BSE Sensex danced between gains and losses for most of the day before closing at 58,387. NSE Nifty 50 index settled at 17,397. Mahindra & Mahindra was the top laggard on Sensex, followed by Reliance Industries, Maruti Suzuki India, and IndusInd Bank. Ultratech Cement added 2.31%, accompanied by ICICI Bank, Airtel. You were listening to the Expresso Business Update by The Indian Express and The Financial Express. Ask your digital assistant device to play the latest business news from the Indian Express and stay up to date with the happenings in the finance and business stories. Click here to listen to today morning's Business News bulletin
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