Economic Update

India's fiscal deficit in the three months ended June printed at 61.4% of the budgeted target for the current fiscal year.

India’s eight core infrastructure industries grew 0.2% in June on-year compared with 4.3% in the previous month owing to contraction in the energy segment and weak performance across sectors.

Debt Market Update

Overall systemic liquidity continued to be in a state of surplus, necessitating reverse repo auctions by the central bank to drain excess liquidity.

Government bond prices ended off lows. Bonds recouped losses in response to comments from Finance Minister who called for a significant interest rate cut from the central bank.

Forex Update

The rupee ended weaker against the US dollar tracking strength in the greenback following the release of some US economic indicators such as retail sales.

The rupee also fell tracking sporadic greenback strength against Asian units and on caution ahead of the European Central Bank's (ECB’s) monetary policy announcement.

Regulatory Update

The Reserve Bank of India (RBI) allowed banks to directly sell their non-performing assets in manufacturing and infrastructure sectors to overseas investors as part of one-time settlement exercises.

Securities and Exchange Board of India (SEBI) modified disclosure norms for listed banks regarding divergence in provisioning of assets.

All data mentioned above is as on 31st July, 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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