Economic Indicators (as on April 30, 2024)

Inflation in India (%)

Consumer Price Index decelerated to 10-month low to 4.85% in Mar’24 from 5.09% in Feb’24 due to easing food prices. Though, retail inflation is below the Reserve Bank of India’s upper tolerance level of 6%. Wholesale Price Index (WPI) rises to 3-month high to 0.53% in Mar’24 from 0.2% in Feb’24. Positive rate of inflation in Mar'24 is primarily due to increase in prices of food articles, crude petroleum & natural gas, electricity, machinery & equipment and motor vehicles, trailers & semi-trailers etc. It stepped out of the deflationary zone for the fourth time in row.

Index of Industrial Production (%)

Index of Industrial Production (IIP) rises to 4.9% in Mar’24 from 5.7% in Feb’24, indicating a growth in the manufacturing sector of the Indian economy. Manufacturing output, which accounts for a considerable majority of industrial production, expanded by 5.2%. Mining sector growing by 1.2% and electricity growing by 8.6%.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) reduced marginally to 58.8 in Apr’24 from 59.1 in Mar’24, led by new orders, upturn in inventories and higher job creation. Current output expanded on robust demand, with domestic orders growing at a faster pace than export orders. The manufacturing PMI has now spent 34 consecutive months above the key level of 50. PMI Services marginally increased to 60.8 in Apr’24 from 60.3 in Mar’24. New business expanded at a faster pace and managers’ expectation for future activity was strong. The new export business index accelerated, signalling that India’s services exports remained robust. Though the reading remains in the expansion zone as a print above 50 means expansion while a score below50denotes contraction.

USD INR & Brent Crude Movement

Brent crude oil stood at ~US$ 87.86 as tighter global supply due to the conflict in the Middle East and between Russia and Ukraine and OPEC+ is expected to continue its production cuts too. The Rupee closed the month on 83.4362 against Greenback as on Apr'24.


Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex increased marginally during the month by 1.24% and 1.13% respectively on m-o-m basis as retail inflation eased and Upbeat corporate earnings in the final quarter of FY’24 and India's strong growth prospects and expectation of political stability in the upcoming general election kept the investors optimistic. A major global credit rating agency increased India's GDP growth forecast for the 2024 calendar year to 6.8% from 6.1% on the back of improving global economic conditions and India's strong economic performance in CY’23. Foreign Institutional Investors (FIIs) were net sellers in Indian equities to the tune of ₹8670.90 crores this month. Domestic retail inflation is within the Reserve Bank of India’s upper tolerance level of 6% in Jan’24. Goods and Services Tax (GST) collection stood at ₹2.10 lakh crore for Apr’24, 12.4%more than the corresponding period of last year and this points towards the growing trajectory of the Indian economy.DowJones decreased by5%from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper remained range-bound, closing at 7.186% on Apr'24 vs 7.056% on Mar'24 as stronger-than expected manufacturing data of Mar'24 in the U.S. trimmed rate-cut expectations by the U.S. Federal Reserve. Losses were extended after the RBI maintained its main lending rate and stance in its Apr'24 monetary policy meeting as widely expected. 10-year U.S. Treasury bond closed lower at 4.6798% on Apr’24 vs 4.2003% on Mar’24.




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