“The Indian economy displayed resilience amidst broader global uncertainty and weak external demand, with high-frequency indicators pointing to a revival in urban demand and robust rural demand,” the bulletin added.
File Photo: IANS
The Indian economy continues to show resilience amid global uncertainty and weak external demand, said the Reserve Bank of India (RBI) in its bulletin.
“The Indian economy displayed resilience amidst broader global uncertainty and weak external demand, with high-frequency indicators pointing to a revival in urban demand and robust rural demand,” the bulletin added.
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Headline inflation also “moderated sharply in September, marking its lowest reading since June 2017”.
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The bulletin said there has been a trend in India’s Small and Medium Enterprise (SME) Initial Public Offering (IPO) market of sharp listing gains being followed by negative returns within a short period. This decline is even more pronounced in IPOs that attracted strong interest from retail investors.
The inability of many SMEs to sustain positive returns post-listing coupled with sharp listing gains following increased interest from retail investors in these stocks has prompted the markets regulator Securities and Exchange Board of India (SEBI) to initiate regulatory measures aimed at restoring stability in the SME IPO segment.
According to the study, a comparison of the price-to-earnings ratios of 100 SMEs listed in the financial year 2024 (FY24) and FY25 to their respective industry averages reveals signs of overvaluation in some of these stocks.
Around 20% of these stocks have price-to-earnings ratios in excessive multiples when compared to their industry peers, it added.
Data quoted by the study shows, since its inception, both BSE and NSE SME segment witnessed a broadly rising trend of activities except a brief bout of downturn noticed during 2018-2021.
Listings grew from Rs 7.25 crore in FY12 to Rs 824.64 crore in FY17. In FY18, there was a significant increase in issuances, totalling Rs 2,213.39 crore. There were fluctuations in subsequent years, with lower activity in FY20 and FY21 owing to the pandemic.
In its bulletin, it proposed a data quality index (DQI) that uses eight dimensions to assess data integrity, aiming to enhance institutional credibility, regulatory and supervisory efficiency, and public trust.
It also underlined the “significance of automation in data generation and collection processes for enhancement of data quality.”
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