The IT services industry is at a crossroads, with the rise of new technology like artificial intelligence, and a slowdown in traditional spending from banking and financial clients. The Q4FY24 earnings of five major IT firms - Tata Consultancy Services (TCS), Infosys, HCL Technologies (HCL Tech), Wipro, and Tech Mahindra have shown a marked slowdown in their topline.
In April 2024, Consumer Price Index (CPI) inflation eased marginally, while Wholesale Price Index (WPI) inflation rose. The Purchasing Managers' Index (PMI) declined compared to the previous month.
The unemployment rate rose in April 2024. Foreign Institutional Investment (FII) and mutual funds witnessed inflows, compared to outflows in the previous month. Crude oil prices rose on a MoM basis.
In April 2024, private insurers sold 4.6 lakh policies, while LIC sold 8.6 lakh schemes. The first-year premium for private insurers grew by 16.4% YoY to Rs 7,861.1 crore. Meanwhile, LIC's first-year premium increased to Rs 12,383.6 crore, with its market share rising by 14.9 percentage points YoY.
Retail sales in the automobile industry rose by 26.7% YoY in April 2024, reaching 22.1 lakh units. Two-wheeler retail sales surged by 33.2% YoY to around 16.4 lakh units, while car sales increased by 15.9% YoY to 3.5 lakh units.
In March 2024, the total value of credit card transactions increased by 19.8% YoY, reaching Rs 1.6 lakh crore. Concurrently, the number of outstanding credit cards grew by 19.3% YoY. Private sector banks saw a 23.6% YoY rise in the value of transactions.
In April, automobile wholesales of listed companies grew by 20.8% YoY to 15 lakh units. Exports also rose by 23.1% YoY to 2.4 lakh units. Domestic two-wheeler wholesales of listed companies increased by 27.2% YoY to 11.1 lakh units, while passenger vehicles rose by 3.6% YoY to 2.3 lakh units.
In March 2024, the total number of passengers carried by domestic airlines in India increased by 3.7% YoY to 133.7 lakh. However, total departures by scheduled carriers declined by 1.2% YoY to 89,297.
In March 2024, private insurers sold 13.3 lakh policies, while LIC sold 17.2 lakh schemes. The first-year premium for private insurers grew by 2.3% YoY to Rs 23,913 crore. Meanwhile, LIC's first-year premium increased to Rs 36,300.6 crore, with its market share rising by 510 bps YoY.
The FMCG sector is considered to be consumer-defensive, and expected to be resilient in an economic downturn. However, the industry is facing headwinds from slowing rural consumption.
