Merisis Wealth Monthly Outlook - July 2024 📊
📅 July 2024 update:
The market outlook remains cautiously optimistic despite mixed economic signals. While inflation shows signs of easing with the CPI falling to 4.75%, GDP growth has slowed to 7.8%, and industrial production has declined to 5.0%. The widening trade deficit and depreciation of the Rupee against the Dollar pose challenges, but strong inflows from both FIIs and DIIs suggest sustained investor confidence. Commodity prices are mixed, with crude oil prices rising significantly. Positive trends in PMI for both manufacturing and services, along with a narrowing fiscal deficit, indicate potential resilience. Equity markets are buoyant, with the Nifty 50 TRI and Nasdaq showing robust gains.
Key Highlights:
- Inflation: Consumer Prices Index (CPI) 📉 down to 4.75%, Wholesale Prices Index (WPI) 📈 up to 2.61%.
- Growth: GDP growth 📉 down to 7.8%, Industrial Production (IIP) 📉 declined to 5.0%.
- Credit & Deposits: Credit growth 📉 slowed to 19.2%, Deposits 📉 decreased to 12.6%.
- Trade Deficit: Widened to $23.78B 💼.
- Flows: Foreign Institutional Investors (FIIs) 💸 +₹26,565cr, Domestic Institutional Investors (DIIs) 💸 +₹28,633cr.
- Exchange Rates: Rupee/Dollar 📉 depreciated to 83.45.
- Commodities: Crude Oil 🛢️ increased by 10.18%, Gold 🪙 slightly down by 0.05%.
- PMI: Manufacturing PMI 📈 rose to 58.3, Services PMI 📈 up to 60.5.
- Fiscal Deficit: 📉 narrowed to 3.0% of Budget Estimates.
- Equity Markets: Nifty 50 TRI 📈 gained 7.94%, Global Markets: Nasdaq 📈 up 26.74%, Shanghai 📉 down 6.33%.
