India Records Double-Digit Growth In Q1 FY23
- India's Gross Domestic Product (GDP) in the first quarter (April-June) of the fiscal year grew by 13.5% as per the data released by the National Statistical Office (NSO).
- The GDP grew at a rate of 20.1% during the same period last year.
- However, it is less than the estimation made by the RBI in the latest Monetary Policy Meeting where the RBI said that the GDP growth rate was likely to be around 16.2% in the first quarter of this fiscal year.
- India's fiscal deficit stood at Rs 3.41 lakh crore in April-July, accounting for 20.5% of the full-year target.
- A Fiscal Deficit indicates the total borrowing that is needed by the government.
Moody’s Cuts India’s Growth Forecast
- Global rating agency Moody’s on Thursday cut down India’s economic growth for the current fiscal to 7.7% for the year 2022.
- Moody's earlier estimated India's GDP growth to be 8.8% in 2022.
- It cited the rising interest rates, uneven distribution of monsoon, and slowing global growth as reasons for the reduced projection.
- The global credit rating agency also lowered India's GDP forecast for 2023 to 5.2 percent from 5.4%.
- Credit rating is a numerical representation of the creditworthiness of an individual or a business in general terms or concerning a particular debt or financial obligation.
- Static part: Moody's was founded in 1909 with its headquarters in New York.
IMF Approves a Loan to Sri Lanka
- The International Monetary Fund (IMF) and Sri Lanka reached a preliminary agreement on a four-year, $2.9bn bailout package. The loan is aimed at restoring economic stability and debt sustainability for Sri Lanka.
- The 48-month program will introduce major tax reforms including broadening the tax base for corporate income tax and VAT and making the income tax more progressive.
- The announcement of the agreement comes at a time when the Headline Inflation rose to 64.3% in August 2022, while Food Inflation soared to 93.7%.
- Sri Lankan currency, the rupee, has also depreciated more than 44% against the USD since January 2022.
- Static part: The International Monetary Fund (IMF) is a United Nations agency with its headquarters in Washington DC. It primarily works to foster global monetary cooperation, secure financial stability, and facilitate international trade.
SEBI Issues Guidelines for Stock Brokers
- The capital market regulator, the Securities and Exchange Board of India (SEBI) came out with guidelines for stock brokers providing algorithmic trading services.
- As per the SEBI, the objective of the issued guidelines is to prevent instances of "mis-selling".
- SEBI has warned the stock brokers who indulged in providing algorithmic-based trading facilities offered by unregulated platforms to remove any such content referring to past or future performance of such an algorithm within a week, i.e. by 9th September.
- The market regulatory board also directed stock exchanges to amend their bylaws rules and regulations for the implementation of SEBI’s provisions in this regard.
- Algorithmic Trading refers to the use of advanced mathematical models that contain automated execution of the trade to generate results at a superfast pace.
This digest is not complete. Read the complete digest on the Financial Awareness Course.
