Data recap: Sebi’s warning, steady inflation, EFTA deal
Mint in the week gone by. The Securities and Exchange Board of India (Sebi) has flagged the possible risks for retail investors from the build-up of bubbles in the stock market. The retail inflation for February came in at 5.09%, largely unchanged from the previous month, while core inflation eased further.
Sebi, the market regulator, has stressed on the importance of mutual funds implementing a unified policy to safeguard retail investors from the adverse effects of market bubbles, especially amidst the ongoing volatility in the small- and mid-cap spaces. Sebi chief Madhabi Puri Buch has cautioned against allowing bubbles to form, highlighting their adverse impact on investors when they burst. The Nifty Smallcap 250 and Nifty 50, which saw significant gains over the past year, have seen turbulence lately.
India's retail inflation rate was 5.09% in February, showing little variation from the previous month's 5.10%. Although the figure exceeds the Reserve Bank of India's medium-term goal of 4%, the further decline in core inflation to 3.37% from 3.63% in January provides some relief. However, prices of food and beverages continued to rise—with their inflation staying above 7% for the fourth straight month—owing to a rise in prices of eggs, meat and fish, and vegetables.
$100 billion: That's the value of India's free trade deal with the four-nation European Free Trade Association (EFTA). The bloc comprises Iceland, Liechtenstein, Norway, and Switzerland. This pact aims to bolster integration, reinforce supply chains, attract investments, and cultivate new business opportunities for the two sides.
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