The Reserve Bank of India anticipates minimal costs from significant forex inflows. High interest rates on US treasuries are expected to offset hedging expenses. These record inflows will also reduce currency intervention costs for the central bank. Economists suggest hedging costs could reach thirty-six thousand crore rupees. The RBI’s balance sheet growth may impact future surplus transfers to the government.
Midcap, small cap outperform large caps on margins amid rising input costs
Large-cap firms saw operating margins contract significantly year-on-year. Mid- and small-cap companies experienced lesser margin contractions amid rising costs. These smaller firms also achieved higher