Economic Indicators (as on September 29, 2023)

Inflation in India (%)

Consumer Price Index eased to 6.83% in Aug’23 from 7.44% in Jul’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 above the Reserve Bank of India’s upper tolerance level of 6%. Wholesale Price Index (WPI) is -0.52% in Aug’23 from -1.36% in Jul’23, primarily contributed by fall in the prices of food products, mineral oils, basic metals, chemical products and textiles . WPI remained in the deflationary zone for the 5th month in a row.

Index of Industrial Production (%)

Index of Industrial Production (IIP) surges to 3 months low of 5.7% in Jul’23 from 3.7%in Jun’23 with manufacturing sector which witnessed a growth of 4.6%, power sector saw some improvement with a growth of 8% whereas mining sector grew by 10.7%.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) declines to 5 month low to 57.5 in Sep’23 from 58.6 in Aug’23 due to softer increase in new orders which tempered production growth. The manufacturing PMI has now spent 27 consecutive months above the key level of 50. PMI Services increased to 61 in Sep’23 from 60.1 in Aug’23 because of robust sales performances due to surging demand and subsequent increase in sales and output. However, this data also showed that Indian exports were going strong due international demand of Indian goods. 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$ 95.31 on improved prospects for global growth and energy demand and tightening supplies. 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 83.04 against Greenback as on Sep'23.


Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex increased significantly during the month by 2.00% and 1.54% respectively on m-o-m basis as investors continued to cheer the upbeat domestic economic data. Strong buying in some of the index heavyweights helped to underpin the market sentiments. Domestic retail inflation is above the Reserve Bank of India’s upper tolerance level of 6% in Aug’23 also added to negative sentiments in the markets. Goods and Services Tax (GST) collection stood at ₹1.62 lakh crore in Sep’23, which is 10% more than the corresponding period of last year. Foreign Institutional Investors (FIIs) were net sellers in Indian equities to the tune of ₹14767.37 crores this month. Dow Jones decreased by -3.50% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper remained range-bound, closing at 7.215% on Sep'23 vs 7.164% on Aug'23 following increase in the U.S. Treasury yields on hawkish commentary by the U.S. Federal Reserve and rising 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 higher at 4.5711% on Sep’23 vs 4.1081% on Aug’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).