Economic Indicators (as on December 29, 2023)

Inflation in India (%)

Consumer Price Index eased to 5.55% in Nov’23, first increase in 4-months, from 4.87% in Oct’23, thanks to increase in prices of some food items. Though, Retail inflation is below the Reserve Bank of India’s upper tolerance level of 6%. Wholesale Price Index (WPI) is 0.26% in Nov’23 from -0.52% in Oct’23, at an 8-months high, mainly due to faster rises in prices of food and primary articles. It stepped out of the deflationary zone for the first time since Mar'23.

Index of Industrial Production (%)

Index of Industrial Production (IIP) falls to 3 months low of 11.7% in Oct’23 from 5.8% in Sep’23, highest since June last year, due to a significant deceleration in key sectors namely manufacturing sector growing by 10.4%, mining sector growing by 13.1% and electricity growing by 20.4%.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) grew to of 54.9 in Dec’23 from 56 in Nov’23, to 18-month low, as output growth and new orders softened. New orders placed with Indian manufacturers rose sharply though the pace was still slower in Dec'23 compared to previous months. The ability of firms to acquire new businesses both domestically and internationally continued to be essential to the industry's development. The manufacturing PMI has now spent 30 consecutive months above the key level of 50. PMI Services increased to 59 in Dec’23 from 56.9 in Nov’23, strongest reading since Sep'23, as new business grew due to favorable economic conditions and positive demand trends. Though the reading remains in the expansion zone as a print above 50 means expansion while a score below 50 denotes contraction.

USD INR & Brent Crude Movement

Brent crude oil stood at ~US$ 77.04 on signs of slowing demand in China and worries of a slowdown in global growth hit the demand outlook of the commodity. The decrease in the prices was because U.S. crude inventories increased more than expected. The Rupee closed the month on 83.21 against Greenback as on Dec'23.


Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex increased significantly during the month by 7.94% and 7.84% respectively on m-o-m basis following upbeat quarter end earning numbers, fall in global crude oil prices improving domestic macroeconomic data and strong FII buying. Market participants in the just finished state assembly elections expressed optimism for continued political stability and policy direction. Foreign Institutional Investors (FIIs) were net buyers in Indian equities to the tune of `₹66,134.68 crores this month. Domestic retail inflation is within the Reserve Bank of India’s upper tolerance level of 6% in Nov’23. Goods and Services Tax (GST) collection stood at `₹1.64 lakh crore in Dec’23, which is 12% more than the corresponding period of last year. Dow Jones decreased by 4.84% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper remained range-bound, closing at 7.174% on Dec'23 vs 7.28% on Nov'23 following the drop in U.S. treasury yields after softer than expected consumer inflation data and fall in crude oil prices. Sentiments were also boosted following the government's announcement of a new 10-year bond. 10-year U.S. Treasury bond closed lower at 3.8791% on Dec’23 vs 4.3264% on Nov’23.


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 Fundmayormaynot have any future position in these sector(s).
Source: Bloomberg