Indian Economy share price target

Trade Deficit Drops to a 20-Month Low Due to Lower Exports and Imports

Post-pandemic economic recovery was largely driven by gross fixed capital formation (GFCF), which grew 25.6% YoY during FY22 to reach Rs67.9trn in nominal terms. Institutional data indicates that the largest contribution to growth in GFCF was by the household sector, which expanded its share to Rs27.5trn (30% growth YoY).

Equity mutual fund schemes saw inflows of Rs64.80bn in Apr'23, down by a third from the previous month and 47% lower than the average of the previous 12 months, according to data from the Association of Mutual Funds in India (Amfi).

India's goods trade in FY23 mirrored the difficulties and weakness in the global trade in goods.

Banking crisis in the US raised the spectre of accelerating the most widely anticipated recession in the US, thereby, raising concerns on domestic growth outlook for India as well. Market price fall triggered by the fear of the unknown resulted in NIFTY50 P/E valuation premium over MSCI EM index reverting closer to the long-term median of ~45% during Mar’23.

MoM growth momentum

India is considering linking its power grid to those of Saudi Arabia and the United Arab Emirates through undersea cables, with India’s power ministry circulating Cabinet notes for inter-ministerial consultation to initiate the process to expand access to reliable power and enhance the country’s energy security.