With inflation moderating and the Budget sticking to a fiscal consolidation path, the February monetary policy may well see the last of the rate hikes for now.
Hyped-up valuations in the private markets have led to many storied tech companies and start-ups in India to fare disastrously in the public markets where investors are rejecting these valuations. As a consequence, there has been serious erosion of investor wealth. It’s time Indian start-ups and their investors get real.
GDP growth has shown signs of slowing, dipping to 4.1% in Q4FY22. As serious inflationary risks continue unabated, the central bank will need to accelerate the interest rate hikes.
Several factors threaten the Indian start-ups story. Layoffs, suspension of operations and other tough measures are now being witnessed. Founders will have to brace for impact, and weather the storm for the next 12 to 18 months.
The series of acquisitions being undertaken by the top two richest men show their speed and the desire to move into newer businesses. But contrary to popular perception, there’s no confrontation.
The Reserve Bank of India’s shock 40 bps repo rate hike, together with a 50 bps increase in CRR, has stirred intense debate about the timing of the moves. But Governor Das does have, in his own words, ‘several storms’ to tackle.
The thundering success of the blockbusters from the South is proving to be a game changer for Indian cinema, and holds lessons for Bollywood. But content will still be king.
Tata group chairman Natarajan Chandrasekaran is instrumental in pivoting the 154-year-old salt-to-steel conglomerate into new business avenues, especially with the launch of the super app Tata Neu. But it’s a bitterly competitive new world. And shareholders are watching keenly.
While India’s start-ups have become the toast of the world, there is also a growing concern that due to a few rotten apples, the entire ecosystem might get affected. Corrective measures need to be put in place urgently.
The Axis-Citi, PVR-INOX and HDFC-HDFC Bank deals show it is the season of consolidation. Several factors are contributing to this trend which is only set to gather further momentum.
The new SEBI chairperson has started off on a strong note. She will need to build on this and ensure the markets regulator stays true to its mandate of investor protection.
