To watch this week: inflation, Meta Retail Store, Delhivery Ipo
Every Monday, Mint’s Plain Facts section features key data releases and events to look out for over the coming week. India’s retail price inflation data for April is expected to be released amid upward price pressures. Logistics company Delhivery is about to launch its IPO. Geopolitical experts expect a major announcement from Russia on its national day. A monthly report from the Organization of the Petroleum Exporting Countries (OPEC) is also expected this week.
1. Inflation in India
A sharp rise in food prices pushed headline retail inflation well above the Reserve Bank of India’s (RBI) upper limit of 6% for the third consecutive month in March. Ongoing supply chain disruptions and mounting cost pressures amid the Russia-Ukraine crisis likely fueled inflation in April as well, with core inflation expected to remain rigid and elevated. Inflation is proving increasingly stubborn and manufacturers will be forced to pass on rising input costs to end consumers, which could hamper the nascent recovery in demand.
April inflation data will be released on Thursday. After being accused of staying behind the curve, the central bank surprisingly raised the repo rate by 40 basis points to 4.40% and the cash reserve ratio by 50 basis points to 4.5% last week. Given the hawkish rhetoric and the high likelihood of inflation printing high for April, the RBI will accelerate further hikes, Rahul Bajoria, chief India economist at Barclays, said in a note.
2. Delhivery IPO
New-age logistics startup Delhivery is ready to tap the capital market on Wednesday. The show will close on Friday. Delhivery derived about two-thirds of its revenue from the express parcel services segment in fiscal 9MF22, mainly driven by the e-commerce sector, which is expected to grow by 30-33% over the course of the year. exercise 20-26. The company’s revenues have grown at an annualized rate of 59% over the past six years. Delhivery has operating losses on its books, but net losses did not widen over the period.
The company’s wide range of services, which also offers value-added services, has reduced its dependence on a single trade, thereby minimizing the effects of the cyclicality of client trades on its operations. It also leads to higher share of wallet and customer retention. The company operates with an asset-light business model, but may require substantial capital expenditures to fund expansions.
3. Russia’s Victory Day
May 9 is celebrated as Victory Day in Russia, commemorating Nazi Germany’s 1945 surrender to Soviet forces during World War II. This year, the parade could see more outpouring of Russian nationalism and bold statements about the war in Ukraine by President Vladimir Putin. Even the twist of “denazification” of Ukraine could be mentioned in his speech for greater mobilization of the local crowd.
Beyond the geopolitical reasons, the war was supposed to show Russian military and warlike dominance, but things didn’t exactly go Russia’s way. Moscow made significant gains in eastern Ukraine, but had to withdraw from the northern front, including Kyiv. Putin may not have a full-fledged victory to show off on VE Day, but a token promise of war against the West is expected.
4. OPEC Report
The Organization of the Petroleum Exporting Countries (OPEC) will release its monthly report on Thursday, which covers issues affecting the global oil market and the outlook for crude oil. As oil prices have topped $100 a barrel since the start of the Russia-Ukraine conflict, many OPEC members fear demand will plummet in key markets reeling from high inflation. Additionally, China, the largest oil importer, is under covid lockdown.
In addition, the proposed European embargo on Russia means a reduction in supplies in the coming months. Russian production has already fallen. The United States has repeatedly asked OPEC to further increase production to control prices. But OPEC says Russia’s shortfall cannot be met elsewhere and is sticking to its plan to ramp up production gradually. High oil prices have boosted member countries’ economies, with Saudi Arabia experiencing the fastest growth in a decade.
5. Meta retail store
Meta is set to open its first physical retail store today in Burlingame, California. The outlet, located on the main campus of Meta’s Reality Labs unit, will showcase some of the company’s flagship hardware devices. They include Meta Portal, a video calling device, Ray-Ban Stories smart glasses with camera, audio and social media capabilities, and the Quest 2 virtual reality device. will only be able to purchase the Portal and Quest 2. All devices will be available for purchase in Meta’s online store.
Tech analysts believe the store opening is in line with the company’s goal of building the “metaverse,” a concept of immersive, shared virtual spaces. It has made big investments in virtual and augmented reality (AR). However, CEO Mark Zuckerberg The company is working on other gadgets such as smartwatches and high-tech AR glasses.