Paytm Gamechanger, Oil Prices, Flipkart, and the US Dollar, Etc

Vaishali Sharma
March 13, 2024

Inflation Dip Sparks Speculation: Experts Predict RBI to Slash Rates by Q2 FY25

Inflation Trend: February's CPI inflation at 5.09% aligns with market expectations, hinting at potential policy adjustments.
Rate Cut Projections: Economists foresee RBI initiating rate cuts in Q2 FY25, with target dates ranging from August to October MPC meetings.
Expert Insights: Gaura Sen Gupta from IDFC First Bank anticipates the rate cut cycle to kickstart in August, supported by slowing core inflation trends.
Monsoon Impact: Shubhada Rao of YES Bank suggests RBI's rate cut decision may hinge on monsoon forecasts, with a potential window opening by October MPC.
Policy Caution: Upasna Bhardwaj from Kotak Mahindra Bank notes RBI's watchful stance amidst food inflation volatility, expecting liquidity measures to influence a policy shift by June.

Paytm's Game-Changing Move: TPAP License Approval Expected This Week

License on the Horizon: Sources reveal NPCI likely to greenlight third-party application provider (TPAP) license for Paytm by March 15, allowing seamless UPI transactions despite Paytm Payments Bank closure.
Real-Time Payments Backbone: UPI, managed by NPCI, empowers users to transfer money instantly across banks, with Paytm poised for continued UPI service post-banking arm shutdown.
Strategic Bank Partnerships: Paytm eyes collaborations with Axis Bank, HDFC Bank, SBI, and Yes Bank for UPI transaction processing, aiming to maintain its status as the third-largest UPI app despite a dip in February transactions.
Transaction Revival: Despite a dip in UPI transactions in February, Paytm anticipates a resurgence post-TPAP license approval, with transaction volumes expected to rebound swiftly.
Regulatory Standoff: RBI likely to maintain March 15 deadline for Paytm Payments Bank shutdown, signaling regulatory firmness amidst ongoing developments in the fintech space.

Oil Prices Hold Steady: OPEC's Demand Outlook Underpins Market Stability

Steady Performance: Oil prices remain stable as OPEC maintains demand growth forecasts for 2024 and 2025.
Global Outlook: OPEC's unwavering stance reflects confidence in economic growth, despite ongoing geopolitical tensions.
Market Watch: Brent futures inch up to $82.45 a barrel, with WTI crude contract at $78.24, indicating market resilience amidst uncertainties.
Upcoming Reports: Eyes on the monthly EIA report for further insights, while the IEA's estimates awaited later in the week.
Analyst Insight: ANZ analysts anticipate stability but remain vigilant for any surprises in demand forecasts, poised to impact market sentiment.

Flipkart Accelerates Dark-Store Expansion for Rapid Commerce

Swift Expansion: Flipkart, owned by Walmart, poised to establish numerous dark stores across major Indian cities in the coming months.
Q-Commerce Initiative: Launching a quick-commerce service, Flipkart aims to enhance order fulfillment speed, catering to customer demand for rapid deliveries.
Entrepreneurial Collaboration: Partnering with entrepreneurs and kiranas, Flipkart plans to deploy dark stores without direct ownership, potentially generating employment opportunities.
Customer Preference: Rising demand for quick commerce underscores the appeal of faster order fulfillment, driving Flipkart's strategic push into the q-commerce segment.

After Supreme Court criticism, State Bank of India shared electoral bond details with Election Commission.
ICICI Prudential Mutual Fund is the first to limit investments in its midcap fund.
India is projected to reduce its current account deficit to below 1% by the fiscal year 2024.
Coal companies are expected to increase their renewable energy capacity to more than 9 gigawatts by the year 2030.

In February, the US inflation rose by 3.2%, experts suggest that the Fed's stance remains unchanged.
The United States is working to assist India in obtaining reduced prices for Russian oil, according to statements made by a diplomatic representative of President Biden.
The US dollar has gained strength as a result of inflation data surpassing expectations.

Google limits Gemini's ability to respond due to India preparing for elections.
A robot named Aisha serves desserts to customers at the Robotic Cafe in Ahmedabad.