TMS Ep215: IIP & inflation, HDFC Bank, Martin Wolf, moving averages

India’s industrial production in May soared to a 12-month high on the back of a low base. A significant jump in IIP growth indicates economic recovery. But, the devil lies in details. So, does a deeper dive into the data support such a positive conclusion? Also, is the recovery sustainable given the raging inflation and adverse global geopolitical conditions? Today’s segment answers these questions  

Martin Wolf, chief economics commentator at the Financial Times, also cautioned about what he called emerging threats due to weak investment in the private sector. In an interview given to Business Standard’s Asit Ranjan Mishra on the sidelines of Kautilya Economic Conclave, Wolf lists success and failures of the Indian government on economic as well as other fronts. 

Meanwhile, increase in lending rates, high credit growth, and lower credit costs are expected to help banks report a significant rise in net interest income and profits in Q1FY23. Sequentially, however, they may show a drop in the bottom line because of treasury losses due to yields hardening. Listen to our next podcast to get a glimpse of how Q1 results of the banking sector may look like.

Investors indulge in different kinds of fundamental and technical analysis to choose stocks as their investment bets. While fundamental analysis helps investors pick stocks from a long-term perspective, technical analysis could help investors make quick bucks in the short-to-medium term. This episode of the podcast talks about one such technical indicator and how can investors use it to analyse a stock.