Economic Indicators (as on March 31, 2023)

Inflation in India (%)

Consumer Price Index decreased to 6.44% in Feb’23 from 3-month high of 6.52% in Jan’23, mainly due to decrease in prices of vegetables and lowered inflation of other food items. Wholesale Price Index (WPI) cools down to 25 months low, 3.85% in Feb’23 from 4.73% in Jan’23, primarily contributed by fall in the prices of manufactured items and fuel and power. This is the 9th straight month of decline in WPI-based inflation.

Index of Industrial Production (%)

Index of Industrial Production (IIP) rose to 5.2% in Jan’23 from 4.7% in Dec’22 primarily owing to a double digit growth in electricity output and subdued growth in mining and manufacturing. The electricity and mining sectors rose by 12.7% and 8.8% respectively, whereas the manufacturing sector increased by 3.7% in Jan'23.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) grew to 3 months high of 56.4 in Mar’23 from 55.3 in Feb’23 attributed to higher demand resilience and competitive pricing. The sector also benefitted from greater foreign demand for Indian exports with new export orders rising in March. PMI Services declined to 57.8 in Mar’23 from 59.4 in Feb’23 and thereby indicating a slower rate of expansion. Still, the latest reading pointed to the 20th successive month of increase in the service sector as robust foreign demand for India' services, reflected in record services exports. 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$ 79.77 despite the supply outstripping still-lacklustre demand, with stocks building to levels not seen in 18 months. Across the world, concerns over turmoil in the international banking sector and rising inflation hit the demand outlook of the commodity. The Rupee closed the month on 82.18 against Greenback as on Mar'23.


Equity Markets - India & US

Bellwether indices, Nifty 50 andS&PBSE Sensex significantly volatility during the month and increased marginally by 0.32% and 0.05% respectively on m-o-m basis majorly due to weak global cues leading to a sell-off in the global equity markets due to significant decline in share price of a prominent private sector bank based in U.S. that mainly funded startups. Domestic retail inflation continuing to remain above the Reserve Bank of India’s upper tolerance level of 6% in Feb’23 also added to negative sentiments in the markets. Goods and Services Tax (GST) collection stood at ` 1.60 lakh crore in Mar’23, the 2nd highest ever, which is 13% more than the corresponding period of last year. Foreign Institutional Investors (FIIs) were net buyers in Indian equities to the tune of ` 7935.51 crores this month. Dow Jones increased by 1.89% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper decreased slightly, closing at 7.311% on Mar'23 vs 7.433% on Feb'23 following Reserve Bank of India's (RBI) commentary on inflation. Bond yields declined as U.S. Federal Reserve hinted at ending the rate hike cycle soon. 10-year U.S. Treasury bond closed higher at 3.467% on Mar’23 vs 3.92% on Feb’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 Fund may or may not have any future position in these sector(s).

Source: Bloomberg