As per the Monster Employment Index report, IT (-6%) continues to make hiring corrections with several organisations laying off employees post excessive appointments from the past year.
The Finance Minister emphasized that due to the measures taken by the government, India is in a much better position than most countries.
A potential macro slowdown can affect EBIT margins of IT companies. IT firms’ margins already came under pressure in the first quarter and executives attributed it to supply side pressure.
According to Rajan, low foreign debt and high foreign exchange reserves make Indian economy resilient.
The negative US GDP numbers may play spoilsports on Indian market sentiment today. However, the US equity markets on Thursday recovered the early losses and remained flat during the day.
Fed Chair Jerome Powell has made it clear they will keep raising interest rates until they see clear evidence inflation is moving back towards the two percent goal.
As for price rise, the IMF made no bones about the fact that inflation is here to stay. Its baseline projections for global inflation are pessimistic.
Going ahead, slowing demand for crude oil amidst fear of a global recession is expected to weigh heavily on RIL.
According to a government official, most countries import Indian petroleum products, chemicals & drugs and pharma items, for which demand will never fade.
In India, retail inflation has been over the RBI's upper tolerance band of 6 per cent for the sixth consecutive month in a row in June. Retail inflation came in at 7.01 per cent in June.
"It is going to be a tough 2022 -- and possibly an even tougher 2023, with increased risk of recession," the IMF's managing director Kristalina Georgieva said
The rising prices could force the ECB to raise its policy rate even as Europe stares at a potential recession.
High inflation driven by high energy prices and a drop in the US GDP by 1.4% is other worrying signs.
The IT company, which announced a hiring target of 40,000 for FY23, said it is on track to hire the same numbers.
Early Wednesday, U.S.benchmark crude oil was up 60 cents at $100.10 per barrel. Brent crude, the international standard, gained $1.24 to $104.01 per barrel.
Amid these challenges, certain brokerages expect further weakness in the local unit in the coming months.
Other central banks around the world, including the US Federal Reserve, have moved quicker than the ECB. But they face the threat of spurring a recession as they make borrowing more expensive.
The fall in the markets from the record high of 18604.45 in October 2021 could have been sharper had domestic institutional investors not been counterparties to Foreign institutional investors' sales.
In line with the weak trend in equities, the market capitalisation of BSE-listed firms eroded from Rs 5,47,410.81 crore to Rs 2,46,36,948.05 crore in morning trade.
Inflation has also jumped in India owing to the fallout from the Ukraine war, overshooting the central bank's two-to-six percent target range from January to April.