Economic Indicators (as on July 31, 2024)

Inflation in India (%)

Consumer Price Index accelerated marginally to 12-month low of 5.08% in Jun’24 from 4.75% in May’24 to reflect the fastest pace of price growth since Feb'24 due to increase food prices. Though, retail inflation is below the Reserve Bank of India’s upper tolerance level of 6%. Wholesale Price Index (WPI) rises to 16-month high to 3.36% in Jun’24 from 2.61% in May’24 due to a faster rise in manufacturing, primary articles, and food prices. It stepped out of the deflationary zone for the eigth time in row.

Index of Industrial Production (%)

Index of Industrial Production (IIP) rose to 5.9% in May’24 from 5% in Apr’24, indicating a growth in the manufacturing sector of the Indian economy. The growth rates of the three sectors Mining, Manufacturing and Electricity in in May'24 stood at 6.6 percent, 4.6 percent and 13.7 per cent year-on-year respectively.

Indian Business Indicators - Purchasing Managers' Index (PMI)

S&P Global India Manufacturing Purchasing Managers' Index (PMI) decreased marginally to 58.1 in Jul’24 from 58.3 in Jun’24. Though, strong demand supported the manufacturing industry, primarily through a significant rise in new orders. PMI Services marginally decreased to 60.3 in June’24 from 60.5 in June’24. Growth in India’s services sector slowed down a bit in June but remained upbeat, amid new business gains, online offerings and investment in technology. Though 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 decreased to US$ 80.72 on Jul'24 end from US$ 86.41 on Jun'24 end amid concerns about the outlook for demand due to largely to the economic deceleration in China and US and concerns that the U.S. economy might face a recession. The Rupee closed the month on 83.7275 against Greenback as on Jul'24.


Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex increased marginally during the month by 3.92% and 3.43% respectively on m-o-m basis following the foreign fund inflows along with retreat in crude oil prices from the recent high of $90 per barrel mark. Markets rallying to fresh high were buoyed by the government's commitment to improving consumption and bridging the gap for energy transition in the Budget. Foreign Institutional Investors (FIIs) were net buyers in Indian equities to the tune of ₹32365.20 crores this month. Domestic retail inflation is within the Reserve Bank of India’s upper tolerance level of 6%. Goods and Services Tax (GST) shows collection of ₹1.82 lakh crore for Jul’24, 10.3% more than the corresponding period of last year and this points towards the growing trajectory of the Indian economy. Dow Jones increased by 4.41% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper remained range-bound, closing at 6.926% on Jul'24 vs 7.009% on Jun'24. Bond yields decreased following a drop in U.S. Treasury yields after the U.S. Federal Reserve hinted that its rateeasing cycle could start in Sep'24. Gains were extended following a slump in U.S. manufacturing data in Jul'24 ignited concerns that the U.S. Federal Reserve may be behind the curve with rate cuts. US 10 year G-Sec closed lower at 4.0296% on Jul’24 vs 4.3961% on Jun’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