The Signal (weekly highlights)

1. PE inflows spurt 15% in 2021 to record $40 billion

Private equity investments hit a record high of USD 40.1 billion in 2021, an increase of over 15 per cent from the previous year, led by a USD 3.6 billion flow into Flipkart and USD 1.93 billion into Bundl Technologies

Buoyant secondary markets and record primary listings in 2021 were the key reasons for the spike in inflows, driving up confidence in the capital market, providing a conducive environment for companies to go public and offering investors a viable exit.

2. Economists see Omicron forcing RBI to delay policy normalization

As Covid-19 infections spike in the country resulting in various states and impacting the fragile recovery, many economists are expecting RBI to delay the policy normalization move, which is expected in the February review.

If the risks surrounding the new Omicron variant remain, adding to near-term uncertainty, we think the MPC could remain in “wait-and-see” mode at the February policy meeting and can delay policy normalization to the April policy meeting,

3. India spends record $55.7 billion on gold imports in 2021

Gold buying has more than doubled as compared to previous year as a price drop favoured retail buyers and pent-up demand emerged for weddings that were delayed when the pandemic first hit.

In volume, India imported 1,050 tonnes in 2021, the most in a decade, and far more than the 430 tonnes imported in 2020. Imports could moderate in January as rising coronavirus cases have prompted local authorities to impose curb.

4. Icra maintains ‘stable’ outlook for Indian road logistics sector

Domestic rating agency Icra on Tuesday said the Indian road logistic sector is likely to witness healthy growth in FY2022 on the back of demand recovery and improved business activities.

The optimism stems from the favourable scenario wherein most players reported strong growth in freight volumes on a sequential basis in the second quarter of FY’22, and the momentum is likely to continue in the third quarter of the ongoing fiscal.

5. India achieved highest ever monthly exports of $37 bn in Dec 2021

The country is on track to achieve an export target of $400 billion, adding that the top 10 major commodity groups constituting 80 per cent of exports have grown by 41 per cent over last December.

The ODOP scheme by the UP government focuses on boosting the economy of the state by encouraging indigenous and specialized products of the various districts. It is expected that UP exports will rise to 2 lakh crores in the current financial year.