Dear
Patron,
Equity
Market Review
·
In the month of Jun'23, equity markets surged
significantly with Nifty 50 rising by 3.53% on m-o-m basis attributed by
favourable domestic macroeconomic data and strong buying by foreign
institutional investors for the month ended Jun'23.
·
Foreign Institutional Investors (FIIs) were net
buyers in Indian equities to the tune of 47,148.45 crores
·
Goods and Services Tax (GST) shows highest ever
collection of 1.61 lakh crore for Jun'23, which is 12% more than the
corresponding period of last year and this points towards the growing
trajectory of the Indian economy.
Debt
Market Review
Global Economy Update:
·
Macro Backdrop:
·
Global economic activity has sustained its growth
momentum in the second quarter of 2023, albeit with two diverging roads.
·
The world composite purchasing managers’ indices
(PMIs) rose to an 18-month high in May, powered by the vibrancy of the services
sector.
·
Global food prices have fallen to their lowest
levels in two years, with declines in prices of grains, vegetable oil and dairy
offsetting higher sugar and meat prices.
Indian Economic Growth:
·
Macro Backdrop:
·
India’s real gross domestic product (GDP) recorded
a growth of 7.2 per cent in 2022-23, stronger than the earlier estimate of 7.0
per cent.
·
It has surpassed its pre-pandemic level by 10.1 per
cent. Real GDP growth in Q4:2022-23 accelerated to 6.1 per cent (y-o-y) from
4.5 per cent in Q3, aided by fixed investment and higher net exports.
·
On the supply side, real gross value added (GVA)
accelerated from 4.7 per cent in Q3 to 6.5 per cent in Q4, driven by rebound in
manufacturing activity which moved into expansion territory after two quarters
of contraction.
Inflation:
·
Global:
·
Inflation eased further across most
economies.
·
In May, consumer inflation cooled off in the US for
the 11th consecutive month to 4 per cent (y-o-y)
·
Inflation based on the US personal consumption
expenditure (PCE) index, however, edged up to 4.4 per cent in April from 4.2
per cent in March.
·
India:
·
CPI inflation moderated to 4.3 per cent in May 2023
from 4.7 per cent in April.
·
The fall in headline inflation was driven by food
and fuel sub-components while core (excluding food and fuel) inflation remained
steady.
·
CPI food inflation (y-o-y) moderated sharply to 3.3
per cent in May from 4.2 per cent in April on account of a large favorable base effect of around 145 bps, which more than offset a positive price momentum
of around 55 bps.
It’s the
time we should start participating in the equity market with long term
objective, weakening of dollar will be strong signal to do so going forward.
Happy
Investing.
Source:
RBI, MOSPI, CMIE, FIMMDA, NSDL, Bloomberg, Canara Robeco
