0:00
/
0:00
Quick Summary
0:00
/
0:00
Indian Economic Update
India’s CPI inflation eased to 5.72% YoY in December vs 5.88% in November; with food inflation falling to 4.6% YoY (vs 5.1% ...last month)

India’s Net Direct Tax collections, post refunds, grew by 19.6% to INR 12.3 trillion in FY23, up to 10 January, reaching 86.7% of the budgeted estimates;

Net Corporate Income Tax grew at 18.3% while Personal Income Tax grew at 21.6% during the period

Index of Industrial Production (IIP) accelerated by 7.1% YoY in November 2022 vs -4.2% in October 2022, led by manufacturing at 6.1%

World Bank revises India’s growth in FY23 to 6.9%, 0.6% downward revision since June 2022, with FY24 growth projected at 6.6%

Indian economy will grow to USD 3 trillion by the end of FY23 and is expected to be USD 7 trillion in the next seven years, says Chief Economic Advisor Mr. V Anantha Nageswaran

The Indian economy is estimated to grow at 7% in FY23, against 8.7% in the previous fiscal, mainly due to poor performance of the manufacturing sector, according to the National Statistical Office.

Read More

Global Update
The World Bank slashed its growth forecasts for most countries and regions, and warned that new adverse shocks could tip... the global economy into a recession. Global growth is forecasted to slow to 1.7% this year, after estimating last June that it would grow at a 3% rate in 2023

US CPI inflation fell from 7.1% YoY in November 2022 to 6.5% YoY in December, on the back of lower food, energy and core goods inflation

Media reports indicate that Chinese policymakers could be considering sanctioning a record quota for special local government bonds this year and widening the budget deficit to provide further support to the economy.

Read More

Equity
The benchmark indices traded higher on the first day of the week, tracking the gains in the Asian equity market. However, the ...indices turned slightly negative during the week as Fed Chair Powell's speech gave away no cues of future rate trajectory.

During the week Sensex gained 0.60% to close at 60261.18 while Nifty gained 0.54% to close at 17956.60

Read More

Debt
Benchmark yield opened flat as UST yields fell sharply in response to the US nonfarm payrolls data. However, bond prices ...traded lower as expectations of easing inflation outlook for both the US and India may work in favour of bond prices. Domestic CPI print also surprised positively as it moderated to 5.72% vs 5.88%, a month before. The weekly gilt auction worth INR 300 billion, to see robust demand.

The 10Y benchmark yield ended at 7.30% as compared to the previous week’s close of 7.37%

Read More

Oil
Brent Oil prices were volatile during the week, underpinned by hopes of further demand recovery in China. The pullback in ... US Dollar also supported oil prices. China issued a fresh batch of import quotas, a signal that the world’s largest importer is ramping up to meet higher demand. Further, EIA raised its forecast for demand growth in 2023 to 1.05 million barrels/day, with the bulk of the output increase coming from the US.

Brent was trading at $84.48 on January 13, at 15:52 IST

Read More

Gold
Gold prices traded higher, supported by a pullback in UST and USD. Global slowdown fears and physical buying by the Central Bank, have... supported gold prices.

Gold was trading at $1905.07 Per Ounce on January 13, at 15:52 IST

Read More

Currency
During the week, the USD/INR pair remained volatile. US employment data showed an addition in jobs in December, but wage growth... slowed. US services output contracted in the last month. Thus, expectations of a slower pace of rate hikes is supporting the riskier assets, as investors await US CPI print for further cues. However, volatile oil prices may weigh. Any sharp movement in the pair is unlikely on the back of expected RBI interventions.

USD/INR was trading at 81.34 on January 13, at 15:52 IST

Read More

 
Sensex
60261.18
0.60%
During the week Sensex gained 0.60% to close at 60261.18 while Nifty gained 0.54% to close at 17956.60
 
Bond Yields
7.30%
-7 bps
The 10Y benchmark yield ended at 7.30% as compared to the previous week’s close of 7.37%
 
Source: ICICI Bank Research, Private Banking Investment Strategy Team, Bloomberg and CRISIL.
Disclaimer: The information set out herein has been prepared by ICICI Bank in good faith and from sources deemed reliable. ICICI Bank does not provide any assurance as regards the accuracy of such information. ICICI Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any direct or indirect loss / claim/ damage caused to any person, arising out of or in relation to the use of information communicated herein.