Inflation at 6.52 per cent in January, from 5.72 per cent in December.

January Inflation at 6.52% from 5.72%

*India’s retail inflation at three-month high, hits 6.52% in January*
India’s retail inflation reversed its downward trend in January and once again breached the central bank’s upper tolerance limit of 6 per cent after a gap of two months, forcing some analysts to project another rate hike by the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) in April. Data released by the National Statistical Office on Monday showed the Consumer Price Index-based inflation rate rising unexpectedly to a three-month high at 6.52 per cent in January, from 5.72 per cent in December, as goods across categories, including food and beverage, housing, and services, saw price rise, with food prices leading the chart. Core inflation, which excludes food and fuel prices, remained sticky above the 6 per cent mark. The upside inflation surprise came days after the RBI revised down its January-March quarter retail inflation forecast by 20 basis points (bps) to 5.7 per cent.

*Sebi probing Hindenburg Research allegations against Adani Group*
The Securities and Exchange Board of India (Sebi), the market regulator, has said, in a submission to the Supreme Court, that it is “enquiring” into the allegations made by American short-seller Hindenburg Research against the Adani Group of companies and its impact on the markets. In the same matter, the Central government has agreed to form an expert committee to strengthen the regulatory regime in order to ensure that market investors are protected. The Supreme Court had last week suggested an expert committee to look into the allegations and had asked the Centre for its response. The top court had sought Sebi’s response on regulatory framework modification. According to its submission note, which has been reviewed by Business Standard, Sebi said it was enquiring into market activities immediately “preceding and post the publication of the report”, to detect if there were violations of its regulations.

*Illegal subsidies by trade partners hurt Indian trade, business: Govt*
The government on Monday said illegal subsidies by trade partners and other countries hurt Indian trade and business, and that corrective actions are taken in the form of invoking dispute settlement mechanisms. The Department of Commerce on February 9, 2023 had stated that illegal subsidies by trade partners and other countries hurt Indian trade and business, Minister of State for Corporate Affairs Rao Inderjit Singh told the Lok Sabha. “At a multilateral forum, the disciplines regulating the provision of subsidies and the use of countervailing measures to offset injury caused by subsidized imports are addressed in the Agreement on Subsidies and Countervailing Measures,” he said in a written reply.

*Commodity play*
Gold – Rs 56793/10gm, Silver – Rs 66006/kg, Brcrude – Rs 6469/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 768/kg.

*Corporate News*
MapmyIndia invests in drone firm Indrones to expand customer offering.

Zee Entertainment Dec quarter profit plummets 92% as ad spends shrink.

YES Bank moves SC against Bombay HC ruling on AT1 bond write-off.

SGX Nifty indicates positive start to Indian markets trading at 17806 levels up by 17 points or 0.10%. Dow Jones also ended yesterday`s session in green up by 1.11% at close.

Sector in focus – Banks, IT, Automobiles & Pharma.

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