Acuité Ratings & Research Limited

Acuité Ratings & Research Limited Acuité Ratings & Research Limited is a full-service Credit Rating Agency, registered with the Secur

Tis the season to be merry!May this festive season bring you hope, health and happiness!
24/12/2021

Tis the season to be merry!

May this festive season bring you hope, health and happiness!

Acuité Ratings & Research completes 16 glorious years on 05th September 2021. This day testifies the persistence of Acui...
05/09/2021

Acuité Ratings & Research completes 16 glorious years on 05th September 2021. This day testifies the persistence of Acuiteans and all our stakeholders who have been part of this roller-coaster ride. We thank you all for your contribution and for keeping faith in our vision to help the financial market grow and be more efficient.

Since our inception, we have achieved various milestones with the recent one being the launch of India’s first ESG Rating Company – ESG Risk Assessments & Insights while a first-of-its-kind start-up rating service will soon be initiated under SMERA.

As Acuité steps ahead and embraces the future, the company will keep transforming and challenging the status quo for a smarter tomorrow.

While we did not anticipate the recent rise in Covid infections in a few countries which led to the re-emergence of glob...
19/08/2021

While we did not anticipate the recent rise in Covid infections in a few countries which led to the re-emergence of global risk aversion and support to the dollar, the overall trajectory on the rupee is turning out to be broadly along expected lines. As such, we stick to our USDINR call of 75.0 by Sep-21 and 77.0 by Mar-22.

Read more on our currency analysis in the 7th edition of Acuité Macro Pulse. https://lnkd.in/e3j3cR3

WPI inflation moved to a 3-month low of 11.16% YoY in Jul-21 from 12.07% in Jun- 21. Despite the moderation in the annua...
19/08/2021

WPI inflation moved to a 3-month low of 11.16% YoY in Jul-21 from 12.07% in Jun- 21. Despite the moderation in the annualized wholesale inflation, the sequential momentum remained unchanged at 0.60% MoM over Jun-21 and Jul-21. The food & beverages inflation ticked up to 0.44% MoM in Jul-21 from -0.13% MoM in Jun-21. Nevertheless, the uptick appears to be moderate compared to the average build-up of 1.7% in F&B prices in the month of July (for series beginning 2011-2012). Fuel inflation posted another strong sequential print of 1.45% MoM in Jul-21 led by Crude Petroleum & Natural Gas (7.91% MoM) and Mineral Oils (5.41% MoM).

Read our insightful analysis on July'21 Inflation here: https://lnkd.in/eFS2Uv_x

Join our Chief Analytical Officer, Suman Chowdhury, and other esteemed panelists to gain insights on Sustainable Finance...
29/07/2021

Join our Chief Analytical Officer, Suman Chowdhury, and other esteemed panelists to gain insights on Sustainable Finance today at 3.30 pm.

Tune in to 18th Capital Market Conference by FICCI

Register now: https://lnkd.in/d3yY3KQ

Most of the annualised growth data for Q1FY22 has been misleading with exorbitant growth figures primarily due to the na...
23/07/2021

Most of the annualised growth data for Q1FY22 has been misleading with exorbitant growth figures primarily due to the national lockdown over most of Q1FY21. Hence, one needs to look through the high-frequency data not only from an annualised perspective but also in terms of the underlying sequential momentum.

For a better understanding of the sequential trajectory of macroeconomic data, please read the latest edition of Macro Pulse:https://lnkd.in/evhUfs9

For developed economies, the near-term recovery outlook remains positive despite some continuing concerns on the impact ...
22/07/2021

For developed economies, the near-term recovery outlook remains positive despite some continuing concerns on the impact of mutant strains. As vaccinations attain critical mass, the gradual opening up of the economy is paving way for a strong growth turnaround in 2021. Having said so, central banks will need to keep a close watch on the labour markets. Low participation rates and higher unemployment compared to pre-pandemic levels still indicate weak core inflation outcomes.

Read more on our global macroeconomic outlook in the sixth edition of Macro Pulse: https://lnkd.in/evhUfs9

Since the beginning of H2 FY21, growth in government expenditure has picked up perceptibly. The total expenditure on FYT...
21/05/2021

Since the beginning of H2 FY21, growth in government expenditure has picked up perceptibly. The total expenditure on FYTD (Apr-Feb) basis recorded a growth of 14.3%YoY compared to 12.6% growth seen during the corresponding period in FY20. This possibly was driven by the comforting trend observed in tax collections as well as the need to support the economy in a pandemic-dominated challenging period. What was encouraging was the growth in capital expenditure in the Apr-Feb period in FY21 increased three fold to 33.0% from 11.4% seen in the corresponding period in FY20. While the Govt. was hoping for a further tax buoyancy in FY22, the sharp resurgence of Covid infections and reimposition of lockdowns in most states may upset the fiscal arithmetic.

Read more detailed insights on Government Finances in the fourth edition of Acuité Macro Pulse for the month of April 2021 here: https://bit.ly/3nDWxrz

With the reported intensity of infections and mortalities in the second wave of the pandemic at four times over the peak...
19/05/2021

With the reported intensity of infections and mortalities in the second wave of the pandemic at four times over the peak seen in last Sep 2020, the lockdowns across states have not only become wider in coverage and also more stringent.

Expectedly, the major impact of these lockdowns will be on the services sector. Although there will be also a negative impact on the industrial sector, it is difficult to assess it at this stage. Acuité has revised its GDP growth estimates for FY22 to 10.0% from 11.0% earlier given the increased downside risks to growth. Nevertheless, strong support to growth is likely to come from:
* Synchronous V-shaped global recovery
* Steady progress on vaccination
* Supportive fiscal and monetary policies and
* Rural demand aided by another normal and timely monsoon forecast

Read our fourth (April 2021) edition of Acuité Macro Pulse here to get not only a better perspective of the growth dynamics but also of other key macroeconomic indicators in India: https://bit.ly/3nDWxrz

IIP growth print for Mar'21 has clearly benefitted from the base effect with the national lockdown in the last week of M...
18/05/2021

IIP growth print for Mar'21 has clearly benefitted from the base effect with the national lockdown in the last week of Mar'20; the overall index, therefore shot up by 22.4% on a YoY basis compared to the sharply lower base in Mar'20. Going forward, the severe impact of Covid 2.0 (as reflected by the mobility chart) may be seen on industrial output and GDP in Q1 although the base effect will still ensure fairly healthy YoY figures.

Read our detailed analysis on the Mar'21 IIP data https://bit.ly/3uOhXon.

Key highlights:

· On sequential basis, the IIP expanded by 10.6% MoM in Mar-21, in line with the expected year-end ramp up
· The amplification effect of the favourable base was reflected almost in all segments with Manufacturing sector creating a record annualised expansion. On use-based side, record expansion was recorded in case of Capital Goods, Infrastructure & Construction Goods, & Consumer Goods
· While the superlative annualised growth performance will continue for the next few months on account of base support, sequentially momentum will weaken in the backdrop of state level lockdowns that have already got pervasive

For a comprehensive commentary on the the emerging economic landscape, read our latest (April 2021) edition of Acuité Macro Pulse: https://bit.ly/3nDWxrz

The CPI inflation has moderated from 5.52% in Mar 2021 to 4.29% in Apr 2021 driven particularly by a deflation in vegeta...
18/05/2021

The CPI inflation has moderated from 5.52% in Mar 2021 to 4.29% in Apr 2021 driven particularly by a deflation in vegetable prices of 14.2% YoY. Core inflation largely remains firm due to the cost push factor triggered by higher retail fuel prices. Interestingly, the YoY CPI chart masks the emerging sequential buildup in retail inflation.

Read our detailed report on the impact analysis of Apr 2021 CPI figures https://bit.ly/3w4vw3h

Key highlights:

o Food prices rose by 0.89%MoM after a hiatus of 4 months, as the summer heat, higher global pass through of oil prices and lockdown induced mild disruptions started to weigh in

o On inflation outlook, we retain our FY22 projection of 5.0% as we expect comfort on food inflation to sustain amidst expectations of a normal monsoon in 2021 and robust rabi output

o However, we do acknowledge upside risks from – 1) Higher crude oil prices 2) Uncertainty with respect to ongoing wave of Covid and 3) Higher input costs, with several global commodity prices rallying to record highs

For a comprehensive commentary on the current and the emerging economic landscape, please refer to our latest (April 2021) edition of Acuité Macro Pulse:https://bit.ly/3nDWxrz

As the microfinance sector was recovering gradually from the impact of Covid 1.0, a second wave hit the economy with a m...
11/05/2021

As the microfinance sector was recovering gradually from the impact of Covid 1.0, a second wave hit the economy with a much higher intensity. While we believe that the potential impact of Covid 2.0 can be significant as the pandemic move into the semi-urban & rural areas, the latest measures from RBI are expected to provide timely relief to the sector. Acuité expects improved access to debt funding for MFIs with asset size < Rs 500 Cr through additional lending of Rs 3000 Cr from Small Finance Banks in FY22

We are happy to share with you our report titled “RBI relief measures timely for the MFI sector”: https://bit.ly/2RGskfx

Key highlights:

1. RBIs latest announcement on SLTRO of Rs 10,000 Cr for Small Finance Banks will ensure higher direct disbursements to microfinance borrowers & better funding access for smaller MFI with asset size less than Rs 500 Cr

2. The fresh restructuring window for loans up to Rs 25 Cr will support the MFI sector in alleviating the additional asset quality stress emanating from Covid 2.0

3. Acuité expects 90-day delinquencies to increase at least by 30% by June-21 even if the pandemic intensity starts to taper down from the middle of May & can more than double if the local lockdowns continue till the end of Q1FY22

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