An Indian boy drinks water on a hot afternoon in Mumbai, India, 30 April 2024. (Photo: EPA-EFE/DIVYAKANT SOLANKI) Demand from villages and smaller towns outpaced that of cities in the April-June quarter in a sign of India’s broad-based economic growth. Avenue, the operator of DMart supermarkets, probably sold more cold beverages, ice cream and hygiene products as prolonged heat waves pushed temperature to new highs across India. Motorcycle maker Bajaj Auto’s monthly sales reports signaled fewer inquiries and deferred purchase decisions by potential customers due to the extreme weather. Both stand to benefit from forecasts of an above-normal monsoon.
India’s Finance Minister Nirmala Sitharaman is widely expected to propose measures to boost consumption when she presents the federal budget on 23 July giving further impetus to consumer-facing firms and retailers that have been hit by weak rural spending in the past few quarters.
Meanwhile, Taiwan Semiconductor Manufacturing Co. is projected to record its strongest growth for quarterly earnings since the end of 2022. Sales for June also surpassed expectations amid rising demand for AI infrastructure. Earnings optimism pushed the firm’s Taipei-traded shares past NT$1,000 last week, briefly surpassing $1-trillion in market capitalisation.
The AI boom should also fuel demand for services offered by Indian IT exporters Infosys Ltd. and Wipro Ltd. Sector leader Tata Consultancy Services Ltd. on Thursday reported profit that met analysts’ estimates, signaling corporations are gradually resuming spending on projects.