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B Prasanna, the Group Head of Global Markets at ICICI Bank, spoke about the recent GDP numbers, which came as a surprise to many. He believes the economy has hit its lowest point and will start improving in the second half of the year. Although ICICI Bank predicts a decent GDP growth of around 6.5% in the second half and 6.3% for the whole year (FY25), these numbers are lower than what everyone expected, including the Reserve Bank of India (RBI), which had anticipated over 7% growth earlier this year.

Prasanna mentioned that a cut in the Cash Reserve Ratio (CRR)—the money banks are required to hold with the RBI—would be crucial to encourage banks to lend more, especially to small and medium businesses. He doesn’t expect the RBI to cut interest rates in the December meeting but anticipates a 50-basis point reduction in CRR, possibly in two steps of 25 basis points each, accompanied by a more relaxed talk about future rate cuts.

He acknowledged that the recent GDP growth of 5.4% was unexpected and significantly below predictions, mainly due to slower government spending and reduced manufacturing output. Factors such as heavy rainfall and tighter liquidity in the market have contributed to this slowdown.

He believes that while the government aims to increase spending, it may be challenging due to the need to meet budget targets, especially with ongoing elections affecting their plans. However, he expects government spending to rise in the coming months.

While infrastructure projects and real estate revival are helping the economy, there are concerns about slowing consumer spending and the private sector not stepping up as expected. Overall, Prasanna feels that the worst is likely over, but the recovery will not be quick enough to make up for earlier losses.

Regarding the RBI’s next steps, Prasanna thinks they will prioritize managing both inflation and growth moving forward. He mentions that lowering expectations of inflation could allow for more flexibility in monetary policy. Therefore, while a big rate cut isn’t expected just yet, a CRR cut seems on the horizon to improve lending conditions, particularly for small businesses which need it the most.

A big week for shopping—well, shopping for investment! About nine new mutual fund offers (NFOs) are now available for you to consider. Here’s what you can look at:

– TATA FMP-61-D-91D is a plan that lets you invest your money for a fixed period, and it will close on December 4. It focuses on earning money or growing your investment by putting money into safe fixed-income stuff. You can start with just ₹5,000.

– Kotak Nifty 100 Equal Weight Index Fund is for those who want to invest in 100 big companies equally. This offer is open until December 16. You need at least ₹100 to start investing here.

– Kotak Nifty 50 Equal Weight Index Fund is similar, but it focuses on 50 big companies. It is also open till December 16, with a minimum investment of ₹100.

– Quantum Ethical Fund is for those who want to invest only in companies that follow ethical rules. It is open till December 16. It’s all about growing your money while keeping it clean, and you need at least ₹100 to start.

– Samco Multi Asset Allocation Fund allows you to invest in different areas like stocks and gold. It opens on December 4 and closes on December 18. The minimum investment is ₹5,000, but if you want to do a monthly plan, it’s just ₹500.

– SBI Quant Fund uses special math to choose its stocks. This fund is up for grabs from December 4 to December 18. You can start investing with ₹5,000.

– Aditya Birla SL Conglomerate Fund is a mix of many businesses. You can invest with a minimum of ₹100, and it opens on December 5 and closes on December 19.

– Bajaj Finserv Healthcare Fund is focused on health companies. It opens on December 6 and closes on December 20, and you can start with just ₹500.

– Baroda BNP Paribas Children’s Fund is for your kids’ future, with a minimum investment of ₹1,000. This fund has a lock-in of at least five years.

Make sure to invest carefully and check with experts if unsure

Gujarat Gas has announced a price increase for CNG (Compressed Natural Gas), starting December 1. The new price will be Rs 77.76 per kg across the state, which is an increase of Rs 1.5 per kg. This is the third price hike in just a few months—there were earlier increases of Re 1 in July and another in August.

The new price goes into effect starting midnight on Saturday. This change will affect over 400,000 CNG vehicle users in South Gujarat, where there are about 250 CNG pumps, including 60 in Surat. Many auto-rickshaws and school vans use CNG, so these fare charges may also go up due to this price hike.

Big Changes Ahead for Gujarat Gas!

In other news, Gujarat Gas is merging with Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Ltd (GSPL) to make it easier to manage the company. This merger could help Gujarat Gas earn more money, with a projected increase in earnings per share (EPS) by 5 to 7% after new shares are issued.

The merger will be complete by August 2025 and will involve a big change in shareholding. As a result, the Gujarat government’s stake in Gujarat Gas will decrease from 60.9% to 25.9%, while other government entities will hold about 29%. Minority shareholders will own the rest.