In Feb’23, unsuccessful auto-debit requests (bounce rate) in terms of value on the NACH platform fell to a 48-month low of 21.5% and bounce rate in terms of volume on the same platform fell to a 46-month low of 28.3%.
Downward pull of rising interest rates on equity valuations ‘eats away’ the effect of growth over the past 1.5 years. Since the fear of a QT cycle began in Oct’ 21, the one year forward earnings of the NIFTY50 index expanded by around 20%. However, the NIFTY50 index is down 8% since then as forward P/E multiple has contracted significantly from 23x to marginally below 18x currently reflecting the downward force of rising interest rates on stocks.