Economic Update

India’s current account deficit (CAD) increased to $57.2 billion, or 2.1% of gross domestic product (GDP), in fiscal 2019 as against 1.8% in the previous year.

India’s eight core sector industries recorded a growth of 5.1% in May; the core sector recorded growth of 4.1% in May last year.

Debt Market Update

Overall systemic liquidity was in surplus during the period, prompting the Reserve Bank of India (RBI) to hold several reverse repo auctions to drain away excess liquidity.

Government bond prices ended off highs. Domestic bond prices advanced initially tracking a decline in US benchmark treasury yields following the policy announcement.

Forex Update

The rupee strengthened on the back of intermittent dollar sales by exporters and foreign banks. Sentiment for the rupee improved following the US Fed’s policy announcement.

Hopes of a US-China trade deal strengthened ahead of the meeting between US President and China President at the G20 Summit, auguring well for the local unit.

Regulatory Update

The RBI released norms for rupee interest rate derivatives (IRD) in a view to simplifying all previous regulations issued for such contracts.

The Securities and Exchange Board of India (SEBI) approved the framework for issuance of shares with differential voting rights and also enhanced norms for disclosure of pledged shares.

All data mentioned above is as on 30th June 2019

The above report is sourced from CRISIL Research, a division of CRISIL Limited (CRISIL) and Aditya Birla Sun Life Mutual Fund /Aditya Birla Sun Life AMC Limited does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report.

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