The coming week is set to be a crucial one for India’s economy and financial markets, with a series of key developments lined up, including the launch of a new Consumer Price Index (CPI) series, major corporate earnings, renewed IPO activity, and continued parliamentary debate on the Union Budget.
A key highlight will be the release of the new CPI series with a 2024 base year on Thursday, replacing the existing 2012 base, which policymakers and economists say no longer reflects current consumption patterns. The updated series is expected to provide a more accurate picture of inflation dynamics in an economy that has undergone significant structural change over the past decade.
According to the Ministry of Statistics and Programme Implementation (MoSPI), the base year serves as the benchmark for tracking changes in prices and determines the weighting of goods and services in the consumption basket used to calculate CPI inflation.
The CPI 2024 series features a substantially revised consumption basket, expanding the number of items from 299 to 358, alongside wider market coverage. It also incorporates prices from 12 online markets, capturing e-commerce trends and digital services such as air travel bookings and OTT subscriptions, reflecting evolving consumer behaviour. The update also leverages advanced digital and administrative data for price collection.
Meanwhile, the week marks the final leg of the December-quarter earnings season, with several heavyweight companies set to announce results. These include BSE, Titan, Mahindra & Mahindra, Hindustan Unilever, ONGC, Coal India and IRCTC, whose performance is expected to offer insights into consumer demand, commodity trends and public sector activity.
IPO activity is also gathering pace after a recent slowdown. Aye Finance is set to open its Rs 1,010 crore initial public offering on Monday, while Fractal Analytics plans a Rs 2,833.9 crore issue, comprising a mix of fresh equity and offers for sale, adding to primary market momentum.
On the policy front, the first phase of Parliament’s Budget Session resumes this week and concludes on Friday, with continued discussion on the Union Budget for FY27. Proceedings, however, are likely to remain impacted by political disruptions, as seen in recent sittings.
Market participants said the convergence of macro data, corporate results, primary issuances and legislative developments could drive heightened volatility, making the week a pivotal one for investor sentiment and economic assessment. |
