Dear All,

Please click here for Monthly Equity & Debt Outlook Presentation – July 2022.

Key Events for the Month of June 2022:

• Nifty (-4.8%) corrected sharply, as the markets got worried due to hawkish Fed and recession concerns
• The S&P 500 and Nasdaq corrected ~8%
• The World Bank cut India's economic growth forecast for the current fiscal to 7.5% as rising inflation, supply chain disruptions and geopolitical tensions taper recovery 
• RBI's MPC decided to hike the Policy Repo Rate by 50 bps to 4.9% in its June meeting
• Gross NPA ratio of banks fell to six-year low of 5.9% in March: RBI
• The CPI inflation rate for May 2022 cooled from the 8 year high in April and came in at 7.04% on the back of the base effect while WPI inflation surged to a record high of 15.88% in May
• GST revenue collection for June was at Rs 1.44 lakh cr; up 56% year on year
• Manufacturing PMI weakens to 53.9 in June due to rising input costs, inflation concerns
• FIIs continued being net sellers in the month of June 2022 and were net sellers to the tune of -$6.4bn even as DII buying continued at +$5.9bn
• Brent Crude was extremely volatile and touched ~$125/ barrel before correcting ~$110/ barrel

Dear All,

Please click here for Highlights of RBI’s Monetary Policy | June 2022.

Key Highlights:

• MPC votes unanimously to hike repo rate by 50bps to 4.90%
• The MPC has dropped the phrase “remain accommodative” from the stance
• RBI increases FY23 inflation forecast by 100 bps to 6.7%
• RBI retains FY23 GDP outlook at 7.2%
• RBI is likely continue to withdraw excess liquidity in a calibrated manner over a multi-year time frame

Please click here for Monthly Equity & Debt Outlook Presentation – January 2022.

Key Events:

• Nifty (+2.18%) gained 2% in the final week of 2021 after remaining under pressure in December due to incessant FII selling in India.
• The MPC unanimously voted to keep the repo rate on hold, while maintaining the “accommodative stance” with a 5-1 vote. It reiterated its growth bias in policy as the Omicron variant poses risks for the global outlook.
• India’s manufacturing PMI hit 10-month high in Nov at 57.6, a jump from 55.9 in October. However, PMI for services dropped moderately to 58.1 in November from a ten-and-a-half-year high of 58.4 in October.
• GST revenue collected in December was over ? 1.29 lakh crore, 13 per cent higher than the same month last year.
• Headline CPI print for November came at 4.91%. The surprise was driven by weaker than expected Food & Bev ex Vegetable inflation.
• The central government’s fiscal deficit as of Nov end was 46.2% of the annual budget. Total receipts at November end were Rs13.78 trn
• FIIs recorded the longest selling streak in last 10Y (26 days) with them being net sellers to the tune of -$1.7bn in Dec (YTD +$3.8bn) even as DII buying continued +$4.3bn (YTD +$12.7bn), driven by both MFs ($2.5bn) and Insurance (+$1.2bn)