Data recap: Jio phone, tomato prices, stocks, and more

Down, yet strong

The purchasing managers’ indices (PMIs) for both manufacturing and services in India slipped in June to 57.8 and 58.5, respectively. However, the 50- plus figures still suggest a strong pace of growth, aided by rising demand and retreating cost pressures. Headwinds from the global growth slowdown could weigh on manufacturing activity in the coming months, but the services sector, which supported the economy in 2022-23, is likely to remain strong this year as well.

Tomato troubles

Tomato prices have shot up rapidly, crossing ₹100/ kg in several cities. The key reason is crop damage in key growing states due to extreme weather from unusually hot conditions to incessant rains. Data from the Department of Consumer Affairs showed that retail prices shot up by 264% in Ahmedabad, 186% in Delhi, and 185% in Bengaluru during 1-27 June. Currently, the average price across India is hovering around ₹90/kg, with the lowest at around ₹31/kg and the highest at ₹160/kg.

Sensex soars

65,000:That’s the latest milestone the Sensex crossed earlier this week, helped by strong economic activity in the country and fading fears of a global recession. The last 5,000 points came after a lengthy gap of 438 trading days. After hitting the mark, the index has remained above the level, with foreign portfolio investors pumping in the money. The rally is also being fuelled by the expectation that the US Federal Reserve may end its battle against inflation sooner than expected.

Lessons learnt

When the US Fed began hiking interest rates in 2022 to control spiralling inflation, emerging market economies, including India, were dreading a repeat of the 2013 taper tantrum-like situation. A decade ago, exchange rates of the “Fragile Five”—Brazil, India, Indonesia, South Africa, and Turkey—plummeted when the US indicated a possible policy tightening. But this time, most emerging markets have fared much better since 2022 despite the rate hikes in the US, aMint analysisshowed.

Tepid investments

The value of new investment proposals by businesses in India slumped sharply to ₹6 trillion in the quarter ended June,Mint reported. There was an unusual spurt in proposals, which amounted to ₹12.1 trillion in the March quarter but the momentum did not continue. Project announcements by public sector firms were 10% lower on a sequential basis, while those by the private sector plunged 55% as global economic uncertainties likely kept investors on the sidelines.

Premium ride

₹2.29 lakh:That’s the starting ex-showroom price of the newly launched premium lifestyle motorcycle Harley Davidson X440 by Hero MotoCorp. It is a fully indigenized 440cc motorcycle that will go up against Bajaj Triumph’s Scrambler and Speed 400 motorcycles in the same segment, as well as Royal Enfield’s range of middleweight motorcycles. Being manufactured at Hero MotoCorp’s Neemrana facility, the motorcycle’s delivery will begin during the festive season.

Going exotic

With growing G affluence, Indians’ taste has also evolved, which can also be seen in the consumption of fruits. Beyond the traditional apple-banana-orange mix, Indians are also consuming fruits like avocado, cranberry, and kiwi, among others. As per aMint analysis, imports of fresh fruits have risen 8% on average in the past decade, showing a strong rise in consumption, despite their prices being sharply higher. Blueberries are the costliest among them, while dragon fruit and avocado are in the mid range.

Chart of the week:Budget phones

India’s top telecom company Reliance Jio has announced the sale of its affordable internet-enabled mobile phone, Jio Bharat, priced at ₹999, from today. Other low-cost feature phones are currently being offered in the range of ₹2,499-3,999 on e-commerce websites.

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Updated: 07 Jul 2023, 12:07 AM IST