Economic Indicators (as on October 31, 2023)

Inflation in India (%)

Consumer Price Index eased to 5.02% in Sep’23, lowest in 3 months, from 6.83% in Aug’23, largely due to correction in food items especially vegetable prices was one of the reason for the recent decrease in inflation. Retail inflation is below the Reserve Bank of India’s upper tolerance level of 6%. Wholesale Price Index (WPI) is -0.26% in Sep’23 from -0.52% in Aug’23, it remained negative for the 6th consecutive month but the contraction was narrower compared with the previous months due to a mild uptick in crude oil, natural gas, fuel and power prices.

Index of Industrial Production (%)

Index of Industrial Production (IIP) surges to 14 months high of 10.3% in Aug’23 from 5.7% in Jul’23 with manufacturing sector which witnessed a growth of 9.3%, power sector saw some improvement with a growth of 15.3% whereas mining sector grew by 12.3%.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) declines to 8 month low of 55.5 in Oct’23 from 57.5 in Sep’23 due to slowing demand in the consumer goods segment, even as new orders dropped to the lowest in a year and cost pressures intensified. The manufacturing PMI has now spent 28 consecutive months above the key level of 50. PMI Services decreased to 58.4 in Oct’23 from 61 in Sep’23, softest growth in the sector since Mar'23 amid subdued demand and price pressures. 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$ 87.41 on worries that the ongoing Israel-Hamas conflict may spread in the Middle East and disrupt supply. Improved prospects for global growth and energy demand also led to increase in the prices. The increase in the prices was because U.S. crude inventories fell more than expected and there was growing possibility that the OPEC+ group of oil producers would extend output cuts to the end of the year. The Rupee closed the month on 83.255 against Greenback as on Oct'23.


Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex decreased significantly during the month by -2.84% and -2.97% respectively on m-o-m basis because of weakness in the global equity markets, concerns over higher U.S. Treasury yields and escalating geopolitical tensions in the Middle East. Foreign Institutional Investors (FIIs) were net sellers in Indian equities to the tune of `₹24547.75 crores this month. Though domestic retail inflation is within the Reserve Bank of India’s upper tolerance level of 6% in Sep’23. Goods and Services Tax (GST) collection stood at `₹1.72 lakh crore in Oct’23, which is 13% more than the corresponding period of last year. Dow Jones decreased by -1.36% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper remained range-bound, closing at 7.355% on Oct'23 vs 7.215% on Sep'23 following increase in the U.S. Treasury yields on commentary by the U.S. Federal Reserve and elevated crude oil prices amid the escalating conflict in the middle east. Sentiments were also boosted following the government's announcement of a new 10-year bond. 10-year U.S. Treasury bond closed higher at 4.9307% on Oct’23 vs 4.5711% on Sep’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).