Economy
The week in charts: FII selling, PAN 2.0, IPL auction
Summary
- News and developments from the week gone by, through numbers and charts.
Every Friday, Plain Facts publishes a compilation of data-based insights, with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by. Foreign investors have sold over ₹2 trillion worth of shares in this fiscal year so far. Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) has approved a fully paperless and online PAN 2.0, among other measures.
Market exodus
Foreign institutional investors (FIIs) have net sold over ₹2 trillion in Indian shares this fiscal year, setting the stage for record outflows from the secondary market. In October, FIIs sold ₹1.17 trillion in NSE’s cash segment, driven by rising US bond yields and disappointing earnings amid lofty valuations. If this trend persists, total outflows could exceed ₹2.8 trillion by fiscal year-end, Mint reported. Experts suggest that the strengthening US dollar and higher yields are driving outflows from emerging markets, including India, which makes up 18.84% of the MSCI Emerging Market Index, further impacting investor sentiment.
Credit curb
Banks added 0.79 million credit cards in October, a sharp drop from 1.69 million last October, Mint reported. HDFC Bank led with 0.24 million new card issues, followed by State Bank of India (SBI) and ICICI Bank. However, some banks like Kotak Mahindra, RBL, and Axis saw declines due to cancellations and expiries. The slowdown is due to banks recalibrating risks and tightening credit card issuances, focusing on more stringent applicant screenings. Analysts do not expect a rebound in issuances this financial year, with continued caution and restrictions on Kotak Mahindra Bank further impacting growth.
Cabinet reforms
₹22,847 crore: This is the total outlay approved by the CCEA for various key projects, including the revamp of the permanent account number (PAN) system, now called 'PAN 2.0'. The upgraded PAN system aims to streamline business activities, enhance grievance redressal, and improve cybersecurity, with no changes required for existing cardholders. The CCEA also approved ₹2,481 crore for the National Mission on Natural Farming, ₹7,927 crore for railway infrastructure projects, and ₹3,689 crore for hydroelectricity generation in Arunachal Pradesh, boosting green energy and economic growth.
Growth outlook
India’s economic growth is expected to have slowed to 6.5% in the September quarter, marking the weakest pace in six quarters, according to a Mint poll of 26 economists. This would be a decline from 6.7% in the previous quarter, driven by uneven sectoral performance. A slowdown in private consumption growth is expected to offset the gains from government spending and rural recovery. With 6.5% growth in Q2, the GDP growth for the first half of this fiscal year would be 6.6%, though some economists expect stronger growth in the second half. The official GDP data for Q2 FY25 will be released today.
Revamp plan
Wipro Ltd has appointed Omkar Nisal as the new head of its Europe business, aiming to boost its underperforming market. Despite Europe being Wipro's second-largest revenue source, growth has been sluggish, with the region's compounded quarterly revenue growth at just 1.16% between March 2021 and September 2024, Mint reported. This slowdown is not unique to Wipro, as competitors like TCS and HCL also saw slower growth in Europe. Nisal, with a decade-long tenure at Wipro, replaces Pierre Bruno, who has headed the company’s Europe market since February 2021.
Disaster mitigation
₹1,115.67 crore: This is the amount allocated by a high-level committee, chaired by home minister Amit Shah, to fund disaster mitigation and capacity-building projects across 15 states. The approval comes amid a sharp rise in extreme weather events, including landslides, which have claimed over 3,200 lives in 2024. The funds, sourced from the National Disaster Mitigation Fund and the National Disaster Response Fund, will address landslide risks and enhance training for civil defence volunteers. Between January and October, India experienced extreme weather on 93% of days, resulting in over 3,200 deaths, according to a Centre for Science and Environment report.
Housing boom
Residential property prices in India have surged, driven by a boom in larger, premium homes. Since the pandemic, home sales and prices have steadily increased, with the average price per square foot rising by about 40.5% since 2021, says Anarock Property Consultants. Major cities like NCR, Bengaluru, and Hyderabad have seen the most project launches and significant price hikes. Tier-II cities, including Goa, have also seen a sharp rise. Developers gained confidence to launch high-end properties, as the luxury market rebounded. However, affordability has declined, and prices are expected to continue rising for the next two years.
Chart of the week: IPL mania
In the latest auctions for IPL 2025, cricketers Rasikh Salam and Naman Dhir saw dramatic bidding surges, with their sale prices increasing up to 20 times their base values. Rishabh Pant, who bagged the highest bid of ₹27 crore, was the most expensive purchase with a 13.5 times surge over his base price of ₹2 crore.
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