Economic Indicators (as on December 30, 2022)

Inflation in India (%)

Consumer Price Index dropped to 11-month low, 5.88% in Nov’22 from 6.77% in Oct’22 due to decline in prices of vegetables, fruits, and onions. The current level of inflation has dropped to its lowest and below the 6% mark for the first time in this calendar year. Wholesale Price Index (WPI) decreased to 5.85% in Nov’22 from 8.39% in Oct'22, lowest since Mar'21, primarily contributed by fall in the price of basic metals, chemical and chemical products, and paper and paper products. The current level ofinflation has dropped below RBI upper limit of 6% for the 1st time since Feb’21.

Index of Industrial Production (%)

Index of Industrial Production (IIP) dropped to -4% in Oct’22 from 3.1% in Sep’22 primarily owing to a contraction in manufacturing outputs and subdued growth in mining and power generation. The electricity and mining sectors rose by 1.2% and 2.5% respectively, whereas the manufacturing sector decreased by 5.6 respectively in Oct'22.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) jumped to 26 months high, 57.8 in Dec’22 from 55.7 in Nov’22 as companies purchased additional materials and hired extra workers to supplement production due to healthy demand and easing of input cost pressure. PMI Services rose to 6 months high, 58.5 in Dec’22 from 56.4 in Nov’22 due to favorable market conditions and strong growth in job creation. The reading remains in the expansion zone as a print above 50 means expansion while a score below50denotes contraction.

USD INR & Brent Crude Movement

Brent crude oil stood at ~US$ 85.91 despite the demand supply disruption across the world on concerns over slowdown in global growth, rising inflation and possible output cuts which hit the demand outlook of the commodity. The Rupee closed the monthon 82.735 against Greenback as on Dec'22.


Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex decreased by 3.48% and 3.58% respectively amid concerns over recession and slowdown in global growth. Market sentiments were dampened after major central banks across the globe advocated for continued rise in interest rates to put a check on inflation which continues to remain at elevated levels. China continued to grapple with soaring COVID-19 infections. Goods and Services Tax (GST) collection stood at ₹1.49 lakh crore in Dec’22, which is 15% more than the corresponding period of last year. Foreign Institutional Investors (FIIs) were net buyers in Indian equities to the tune of ₹11118.91 crore this month.DowJones decreased drastically by 4.17% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper increased slightly, closing at 7.328% on 30th Dec'22 vs 7.28% on 30th Nov'22 following Reserve Bank of India's (RBI) commentary on inflation. Policymakers remained worried over inflation which led to fears of more rate hikes by the Monetary Policy Committee moving ahead. 10-year U.S. Treasury bond closed lower at 3.87% on Dec’22 vs 3.61% on Nov’22.

Note : The data/statistics are given to explain general market trends, it should not be construed as any research report/research recommendation. The sector(s) mentioned are for the purpose of understanding only and the Fund may or may not have any future position in these sector(s).

Source: Bloomberg