The Economic Times reported that India’s central bank could raise its inflation projection for the fiscal year and consider further interest rate hikes.
In India, the Reserve Bank of India (RBI) on 5 May raised the repo rate by 40 basis points (bps) to 4.40% to keep inflation in check.
Persistent high inflation could prompt the Federal Reserve ( Fed) to take a more hawkish stance on rates. The broader Nifty 50 index ( NIFTY50) dropped 2% on 12 May, tracking losses across Asian markets after news of the US consumer price index ( CPI) increasing 8.3% year-over-year (YoY) in April, exceeding market expectations of 8.1%. The index has fallen more than 20% since hitting a 52-week high of 6,825.65 on 11 April. Tata Steel along with a few of its competitors, including JSW Steel (JSWSTEEL) and Jindal Steel & Power (JINDALSTEL), were also among the top losers at the Nifty Metal Index, which fell 3.51% on 12 May. Risks from monetary tightening policy – both at home and abroad – to tame high inflation the Russia-Ukraine war’s impact on energy prices and a slowing economy in China, the world’s top steel consumer, due to fresh Covid-19 lockdowns, have all cast a shadow over global steel demand.Īt the time of writing (13 May), Tata Steel’s share at the National Stock Exchange of India ( NSE) had last closed at INR1,101.75, an almost 13% drop in share value since reporting record earnings for 2022 on 3 May. The flagship company of multinational Indian conglomerate Tata Group, like its peer, is facing a slew of headwinds that may prove tough to beat
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