Economic Indicators (as on June 28, 2024)

Inflation in India (%)

Consumer Price Index decelerated marginally to 12-month low from 4.83% in Apr’24 to 4.75% in May’24 due to sustained deflation in fuel prices. Though, retail inflation is below the Reserve Bank of India’s upper tolerance level of 6%. Wholesale Price Index (WPI) rises to 15-month high to 2.61% in May’24 from 1.26% in April’24 due to increase in prices of food articles, crude petroleum & natural gas, electricity, machinery & equipment and motor vehicles. It stepped out of the deflationary zone for the seventh time in row.

Index of Industrial Production (%)

Index of Industrial Production (IIP) fell to 5% in Apr’24 from 5.4% in Mar’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) increased marginally to 58.3 in June’24 from 57.5 in May’24, signalling a sharper improvement in business conditions, manufacturing output increased at a sharp pace, as underlying demand remained favourable and new business continued to flow in. PMI Services marginally increased to 60.5 in June’24 from 60.2 in May’24. Though the new business expanded at a faster pace and 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 below 50 denotes contraction.

USD INR & Brent Crude Movement

Brent crude oil increased to US$ 86.41 on Jun'24 end from US$ 81.86 on May'24 end after data showed crude inventories in the U.S. fell more than expected and there is a positive outlook for higher fuel demand during the summer driving season. Increasing political tensions in Europe and the Middle East also contributed to the rise. The Rupee closed the month on 83.3913 against Greenback as on June'24.


Equity Markets - India & US

Bellwether indices, Nifty 50 and S&P BSE Sensex increased marginally during the month by 6.57% and 6.86% respectively on m-o-m basis and experienced a rebound following significant loss that were initially driven by concerns over the new government's smaller majority. These concerns revolved around the potential difficulties the government might face in enacting reforms and funding infrastructure projects. Foreign Institutional Investors (FIIs) were net buyers in Indian equities to the tune of ₹ 26564.60 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 ₹ 1.74 lakh crore for Jun’24, 7.7% more than the corresponding period of last year and this points towards the growing trajectory of the Indian economy. Dow Jones increased by 1.12% from previous month.

Interest Rate Movement (%) - India & US

Yield on the 10-Year benchmark paper remained range-bound, closing at 7.009% on June'24 vs 6.979% on May'24. most of the domestic government bonds under the Fully Accessible Route were included in the JPMorgan emerging market debt index on Jun'24. Data from Reserve Bank of India showed that India's foreign exchange reserves increased. Treasury bond closed lower at 4.3961% on Jun’24 vs 4.4985% on May’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