Monday, April 22nd, 2019

Market Review

Market Overview

Kya Events for the Month of March 2019:

RBI cut Repo rate by 25 bps to 6%. Stance unchanged at “neutral”.

Jan IIP stayed moderated significantly to 1.3% versus 2.7 in Dec due in larhe part to slowing growth in manufacturing (1.3% in Jan Versus 2.7 % in Dec), electricity (0.8% in Jan versus 4.5% in Dec) and capital goods (-3.2% in Jan versus 5.9% in Dec) sector. Construction withnessed the strongest growth of all major sectors, of 7.9% in Jan, but this was still significantly slower than the 10% seen in Dec.

Feb trade deficit came in surprisingly low at $9.6bn, besst since Sep 2017 with exports rising 2.4% YoY and imports falling 5.4% YoY. YoY import groth worsened across all categories, with 7 of the major 9 categories in negative territory. Export growth was still positive, it but well below its 3-yr avg.

RBI introduced a liquidity infusion measure announcing its intent to conduct a USD 5bn tenor USD/INR Buy/Sell auction.

Good and Services Tax (GST) collection in March rose 15.6% from a year ago to hit Rs 1.06 trillion, the highest since the new indirec tex systen took effect on 1 July 2017.

FIIs maiintained Feb’s buying trend in Mar to record inflows of – $4.8bn, taking the YTD total to – $7.1bn. DIIs however remained sellers with outflows of – $2bn with the YTD total standing at net outflows of – $1.8bn.

Market Valuation Indicators

Equity Market Snapshot

Debt Market Snapshot