ET NEWS

Mumbai: More banks are expected to enter the pension fund management space as the Pension Fund Regulatory and Development Authority (PFRDA) looks to widen participation and deepen the investment universe for retirement savings.PFRDA chairman Sivasubramanian Ramann said while two banks have shown interest, others are in the process. When regulations were first framed around 2012-13, asset management experience was largely limited to mutual funds and insurers, he said.Banks, however, manage substantial treasury portfolios and possess adequate investment expertise, he added. "The application window remains open until March 31," he said.Two banks have already shown interest. Bank of Baroda and ICICI Bank's applications have come, Axis Bank's is a work-in-progress, and a consortium led by Union Bank and Daiichi is also exploring participation, he said.PFRDA is examining ways to deepen the pension fund's participation in long-term infrastructure and project finance, while remaining within prudent risk parameters.Ramann said it is possible for long-term money to get into certain project financing stages, where an entity like a bank is assessing the risk and then inviting other people to join. "These are the kinds of discussions that we need to have to be able to understand how to improve the asset classes, the distribution of money between them, and introducing new asset classes," he said.On investments, pension funds will be permitted to invest in gold and silver through ETFs. These will fall under the alternatives category, which is capped at 5% of the equity allocation. Within this bucket, exposure to gold and silver is likely to be initially restricted to around 1%, subject to periodic review.The pension regulator is working on creating simpler payout products that give subscribers greater flexibility at retirement, including options beyond traditional annuities.A committee has already begun work on designing one or two standardised products that would allow subscribers to choose between annuity payouts or structured withdrawals. The regulator is also exploring products with varied payout tenures, which would not necessarily be 25 years but potentially 10, 15 or 18 years.

Chennai: Young Saiteja Mukkamalla struck a classy half-century, while left-arm spinner Harmeet Singh bowled with heart and precision as the United States defeated the Netherlands by 93 runs to secure their first win after two defeats in the T20 World Cup here on Friday. Mukkamalla's blistering 79 off 51 balls, studded with five fours and four sixes, and Shubham Ranjane's 48-run cameo off just 24 deliveries powered the USA to a formidable 196 for 6. Harmeet then delivered a superb spell of 4 for 21, dismantling the Netherlands' top and middle order as they were bundled out for 103 in 15.5 overs, after being reduced to 66 for 5 inside eight overs. Spinner Mohammad Mohsin also returned excellent figures of 2 for 19, while South African-born pacer Shadley van Schalkwyk (3/21) also took three wickets. Brief scores: USA 196 for 6 in 20 overs (Monank Patel 36, Saiteja Mukkamalla 79, Shubham Ranjane 48 not out; Bas de Leede 3/37). Netherlands: 103 all out in 15.5 overs (Harmeet Singh 4/21, Mohammad Mohsin 2/19, Shadley van Schalkwyk 3/21).

BSE has received approval from capital markets regulator Sebi to launch derivative contracts on the "BSE Focused Midcap Index," expanding its index derivatives basket at a time when exchanges have moved to a single weekly expiry structure.The new index measures the performance of the top 20 mid-cap companies selected based on free-float market capitalisation. It is designed to offer concentrated exposure to leading mid-sized firms rather than the broader midcap universe.According to the exchange, BSE will introduce cash-settled monthly index futures and monthly index options on the new benchmark. Contracts will expire on the last Thursday of the expiry month, in line with the standard monthly derivatives cycle.The approval comes amid recent regulatory changes that have streamlined the derivatives framework. Following Sebi's directives, exchanges now offer only one weekly expiry per exchange to curb excessive speculative activity and reduce concentration risk.This has effectively reduced the number of weekly index options expiries available in the market, shifting greater focus to monthly contracts and select flagship indices.The launch of derivatives on a focused midcap index could attract traders and investors seeking targeted exposure to quality mid-sized companies, especially in a market where broader midcap indices have seen sharp swings.By introducing a concentrated 20-stock midcap benchmark, BSE is positioning the product as a tactical tool for hedging and directional strategies linked to midcap performance, while adhering to the revised derivatives structure emphasising monthly expiries.

WASHINGTON: A key measure of inflation fell to nearly a five-year low last month as apartment rental price growth slowed and gas prices fell, offering some relief to Americans grappling with the sharp cost increases over the past five years. Inflation dropped to 2.4% in January compared with a year earlier, down from 2.7% in December and not too far from the Federal Reserve's 2% target. Core prices, which exclude the volatile food and energy categories, rose just 2.5% in January from a year ago, down from 2.6% the previous month and the smallest increase since March 2021.Friday's report suggests inflation could be cooling, but it comes after the cost of food, gas, and apartment rents soared after the pandemic, with consumer prices about 25% higher than they were five years ago. The increase in such a broad range of costs has become a high-profile political issue under the rubric of "affordability." On a monthly basis, consumer prices rose 0.2% in January from December, while core prices rose 0.3%. Friday's report may point to cooling inflation, but it comes after the cost of food, gas, and apartment rents have soared since the pandemic, with consumer prices about 25% higher than they were five years ago. The increase in such a broad range of costs has become a high-profile political issue under the rubric of "affordability." If inflation gets closer to the Federal Reserve's target of 2%, it could allow the central bank to cut its key short-term interest rate further this year, as Trump has repeatedly demanded. High borrowing costs for things like mortgages and auto loans have also contributed to a perception that many big-ticket items remain out of reach for many Americans.U.S. markets immediately reversed course early Friday and moved into positive territory. In January, economists expect that gas prices will have declined, while the cost of groceries could rise again after they jumped in December. Overall prices could increase by more than expected, economists say, because costs often rise more in January than other months as companies reset their prices at the beginning of the year. Inflation surged to 9.1% in 2022 as consumer spending soared at the same time supply chains snarled in the wake of the pandemic. It began to fall in 2023 but leveled off around 3% in mid-2024 and has since barely improved. Inflation cooled a bit this fall, though some of that reflected the disruptions of the six-week government shutdown in October. The shutdown disrupted the government's data collection and led them to estimate price changes in November for housing that most economists say artificially lowered inflation that month. At the same time, measures of wage growth have declined in the past year or so as hiring has cratered. With companies reluctant to add jobs, workers don't have as much leverage to demand raises. Smaller pay increases can reduce inflationary pressures as companies often raise prices to offset higher wages. More modest wage growth is a big reason that many economists expect inflation to continue easing this year. "We're not expecting inflation to start up again by any stretch," said Luke Tilley, chief economist for Wilmington Trust. Many businesses are still eating some tariff costs and economists expect they may raise prices more in the next few months to offset those extra expenses. Still, most forecast that inflation will decline further by the second half of the year and drop closer to the Fed's 2% target by the end of 2026.