Economic Indicators (as on June 30, 2023)

---

Inflation in India (%)

Consumer Price Index decreased to 25-month low, 4.25% in May’23 from 4.7%in Apr’23, largely due to favourable base effect and decrease in prices of vegetables, oils, meat and fish, and lowered inflation of other food items. Retail inflation is below the Reserve Bank of India’s upper tolerance level of 6%. Wholesale Price Index (WPI) cools down to 3-year low of -3.48% in May’23 from - 0.92% in Apr’23, primarily contributed by fall in the prices of mineral oils, basic metals, crude petroleum and natural gas, and fuel and power. This is the 12th straight month of decline in WPI-based inflation.

Index of Industrial Production (%)

Index of Industrial Production (IIP) rose to 4.2% in Apr’23 from 1.1% in Mar’23 primarily owing to moderate performance of the mining and manufacturing sectors. Power sector declined by 1.1% whereas manufacturing sector and mining sector grew by 4.9% and 5.1% respectively.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) softened to 57.8 in Jun’23 from 58.7 in May’23 attributable to higher inflationary pressures despite robust demand. The sector benefitted from sharp rise in new orders and output driven by both domestic and global demand. PMI Services eased to 3-month low of 58.5 in Jun’23 from 61.2 in May’23 due to slowing global economy despite the increased demand for Indian Services. 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$ 74.9 as uncertainty over further interest rates hit the demand outlook of the commodity across the world coupled with dampening economic growth The Rupee closed the month on 82.04 against Greenback as on Jun'23.

Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex increased significantly during the month by 3.53% and 3.35% respectively on m-o-m basis majorly supported by firm cues from the global markets with strong foreign fund inflows boosting market sentiments. Domestic retail inflation is below the Reserve Bank of India’s upper tolerance level of 6% in May’23 also added to positive sentiments in the markets. Goods and Services Tax (GST) collection stood at ₹1.61 lakh crore in Jun’23, which is 12% more than the corresponding period of last year. Foreign Institutional Investors (FIIs) were net buyers in Indian equities to the tune of ₹47,148.45 crores this month. Dow Jones increased by 4.56% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper increased slightly, closing at 7.12% on Jun'23 vs 6.99% on May'23 following Reserve Bank of India's (RBI) maintained status quo in the recently concluded Monetary Policy Committee (MPC). 10-year U.S. Treasury bond closed higher at 3.84% on Jun’23 vs 3.64% on May’23.