At its meeting yesterday, the Federal Reserve, as was widely anticipated

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.

Automobile wholesales of listed companies rose 17.7% YoY to 12.4 lakh units in April, while exports fell 38.5% YoY to 1,97,384 units.

Domestic two-wheeler wholesales of listed companies went up 19.8% YoY to 8.7 lakh units, while that of passenger vehicles increased 17.7% YoY to 2.2 lakh units.

CAP’s revenue grew 10.9% (10.7% organic) YoY CC in Q1CY23. It reported healthy bookings of EUR5,867mn (+6.5% YoY CC) in a weak macro environment resulting in a book-to-bill ratio of 1.02x. Headcount addition slowed down with net reduction of 2,600 employees, -0.7% QoQ, +5% YoY (similar to peers).

In the Apr’23 update to its World Economic Outlook, the IMF forecasts 2.8% real GDP growth for the world in CY23, followed by a mild improvement to 3% in CY24, primarily because of a sharp deceleration in Advanced Economies to 1.3% growth in CY23 and 1.4% in CY24. These forecasts are optimistic, in our view, particularly for the US.

Monthly data on lending and deposit rates of scheduled commercial banks (SCBs) (excl. regional rural banks and small finance banks) for the month of Mar’23 point at the following trends: 1) SCBs’ weighted average lending rate (WALR) on fresh loans was up 169bps in FY23 (96bps in H1, 73bps in H2); 2) their outstanding TD rates were up 113bps in FY23 (36bps in H1, 77bps in H2)

Axis Research Scorecard Report for Apr 23

Our analysis of defence updates for Apr’23 indicates that: 1) IAF will soon approach MoD for acceptance of necessity (AoN) for the Multirole Fighter Aircraft (MRFA) programme in order to ensure that production begins by CY28.