Economic Indicators (as on December 31, 2024)

Inflation in India (%)

Consumer Price Index hits 14-month high to 5.48% in Nov’24 from 6.21% in Oct’24 primarily due to a decline in food and beverage inflation. Wholesale Price Index (WPI) eases to 3-month to 1.89% in Nov’24 from 2.36% in Oct’24 driven mainly by comparatively lower prices in food articles and other manufacturing segment.

Index of Industrial Production (%)

Index of Industrial Production (IIP) marginally increased to 3.5% in Oct’24 from 3.1% in Sep’24. The recovery was primarily supported by an improvement in the manufacturing sector output, which grew by 4.1% compared to 3.9% in Sep'24. Additionally, mining and electricity output grew by 0.9% and 2% respectively, further supporting the IIP rebound. Year-on-year increase was seen in 18 out of 23 subcategories.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) decreased to 12-month low to 56.4 in Dec’24 from 56.5 in Nov’24. The drop was attributed to softer expansion rates in production and fresh business orders. PMI Services rose to 60.8 in Dec’24 from 58.4 in Nov’24, marking the 41st consecutive month of expansion. This increase, the fastest since Aug'24,supported by a continued improvement in demand, with new orders rising and employment increased sharply. The reading remains in the expansion zone, as a score above 50 indicates expansion, while a score below 50 denotes contraction.

USD INR & Brent Crude Movement

Brent crude oil increased marginally to US$ 74.64 on Dec'24 end from US$ 72.94 on Nov'24 as China's manufacturing activity expanded for the third month in a row in Dec'24. Further, prices rose after data showed a sharp drop in U.S. crude inventories. The Rupee closed the month on 85.6087 against Greenback as on Dec'24.

Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex moved during the month by -2.02% % and -2.08% respectively amid rupee's record fall against the U.S. dollar, U.S. Federal Reserve’s hawkish tone on interest rate cuts in CY’25, softening second quarter earnings and uncertainty amid escalating tensions in the Middle East due to the conflict also added to fall. Foreign Institutional Investors (FIIs) were net buyers in Indian equities to the tune of ₹ 15,446.57 crore. Gross Goods and Services Tax (GST) collections in Dec’24 stood at Rs. 1.77 trillion, mostly driven by festive demand, representing a 7.3% rise on a yearly basis and this points towards the growing trajectory of the Indian economy. Dow Jones decreased sharply by -5.27% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper remained range-bound, closing at 6.76% on Dec'24 vs 6.74% on Nov'24 aided by value buying in local bonds along with a downward tick in U.S. Treasury yields. However, gains were limited on concerns over projected heavy borrowings by the central government in the Jan-Mar quarter of FY'25. US 10 year G-Sec closed lower at 4.569% on Dec’24 vs 4.1685% on Nov’24.