Aditya Birla Capital

Aditya Birla Sun Life AMC Limited

Aditya Birla Sun Life AMC Limited

Treasury Connect - May 2019

May 28, 2019
7 mins | Views 6211

Economic Update

India’s annual retail inflation was 2.92% in April compared with 2.86% in March, Wholesale Price Index (WPI)-based inflation fell to 3.07%, due to cheaper fuel and manufactured items.

India’s trade deficit widened to $15.33 billion in April 2019 from $13.72 billion in April 2018. India’s industrial output contracted 0.1% in March against 0.1% growth in February.

Debt Market Update

Systemic liquidity witnessed some tightness, with banks demanding funds to meet their mandatory reserve requirements.

The interbank call money rate settled at 5.95% on May 15, 2019 as against 6.25% on April 30, 2019. Government bond prices ended higher, prices rose aided by a decline in crude oil prices.

Forex Update

The rupee weakened against the US dollar in the period, impacted by fears of escalation of US-China trade war. Dollar demand from banks on behalf of oil importers also weighed on the local unit.

Dollar sales by exporters and cooling crude oil prices prevented further rupee depreciation.

Regulatory Update

Securities and Exchange Board of India (SEBI) permitted foreign portfolio investors to invest in municipal bonds. SEBI also requested stock exchanges to consider placing a limit on sectoral weightage in benchmark indices.

The Reserve Bank of India (RBI) has decided to enhance the housing loan limits for regional rural banks and small finance banks to Rs 35 lakh in metropolitan centres and Rs 25 lakh in other centres,

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.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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