Monthly Outlook Report August 2021

Review & Analysis by Yadnya

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 1. Growth Indicators

Economic Outlook - GDP Growth %

- Index of Industrial Production (IIP)
- Purchasing Managers’ Index (PMI)
- Auto Sales
- Market Cap to GDP Ratio

2. Monetary Indicators
- Inflation : CPI & WPI
- RBI Policy Rates, 10-Year G-Sec Yield & Overnight MIBOR
Rate

3. Deficit
- Deficit as % of GDP
- Current Account Deficit as % of GDP
- Crude Oil & Gold Imports

4. Foreign Investment
- Foreign Exchange Reserves
- FDI & FPI/FII
- FII vs DII inflow – Monthly Trend

5. Banking Health
- Bank Credit & Deposit
- Banks GNPA

6. Markets
- Indian Equity Market
- Indian Currency
- Mutual Fund Industry
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Key Highlights - Global
IMF Chief said, Vaccine policy this year, probably next year, is going to be the most important policy, may even beat monetary and fiscal policy
1 in terms of significance. The institutions raised its economic projections for the global economy based on higher vaccination rates and stimulus
packages. As a result, IMF projected a global GPD growth of 6% in 2021 and 4.9% in 2022 but the forecasts are heavily dependent on
vaccination program. The global economic recovery continues, but with a widening gap between advanced economies and many
emerging markets and developing economies. The pandemic has reduced per capita incomes in advanced economies by 2.8%,
relative to pre-pandemic trends over 2020-2022, compared with an annual per capita loss of 6.3% a year for emerging market and
developing economies
2 The impacts COVID-19 pandemic on economic performance of Asia Pacific countries will likely be very significant. IMF said, China is the only
economy who registered growth rate of 2.3% in 2020, with all others contracting. it's projected to continue to recover this year in 2021 with an
expected growth of 8.4% and 5.6% in 2022. Effective policy support provided both in terms of fiscal policy and monetary policy and strong uplift
in China's exports are the key factors for China’s robust recovery. IMF raised US 2021 growth forecast to 7% due to increased vaccination pace,
strong recovery and Biden’s spending plans.
India’s GDP contracted by 7.3% in FY21 For India. IMF downgraded GDP forecasting for India to 9.5% for FY21-22 from the previous forecast of
12.5% due to the severe second wave during March-May. The affected demand, hit on the economic activity, lack of access to vaccines and
3 renewed waves of COVID-19 cases in some part of the country have led to downgrade. The steady recovery is not assured anywhere so
long as segments of the population remain susceptible to the virus and its mutations. For FY22-23, IMF expects 8.5% growth, larger than 6.9%
projected in April.

The Union Budget 2021-22 has provided a strong impetus for revival of sectors such as Health and well-being, Infrastructure, Innovation &
4 Research, Manufacturing, Auto, Banking. It is expected to further accelerate the growth momentum. This will have a cascading multiplier effect
going forward, driven by Make in India & AatmaNirbhar Bharat mission

The global inflation is likely to continue to rise over the remainder of this year. Global attention remains focused on emerging market economies,
5 which continue to struggle with gaining control over the coronavirus crisis. World Bank President Said, “While there are welcome signs of global
recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world.”

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Key Highlights – Monthly Outlook
Fitch Ratings cut India’s growth forecast to 10% for FY22, from 12.8% estimated earlier while S&P Global Ratings lowered its growth estimate to
9.5% from 11% earlier. IIP grew by 13.6% YoY in Jun-21, due to lower base effect in Jun-20. While, India’s Manufacturing PMI jumped to 3-
1 months high at 55.3 in July-21 from 48.1 in June-21, led robust growth in Industry output, rebound in New Business (New Orders), Rise in
Employment. Services PMI stood at 45.4 in July-21, continued to be in contraction mode for the 3rd consecutive month in July. Domestic Auto
Sales saw recovery in July as the lockdowns eased across the states. Pent up demand and positive consumer sentiment moved up sales in July.

With the revival in economic activities, credit growth is improving since last 4 months, though at much lower level. Low credit growth is supposed
2 to be the biggest reason for low GDP growth. The healthy GST collection revenue & mild contraction in revenue expenditure helped the
government to narrow its fiscal deficit for the Q1FY22 to an eight year low of Rs.2.74 lakh Cr or 18.2% of the full year’s budget estimate which
giving the confidence to achieve its fiscal deficit target easily.

In the RBI’s recent MPC Meet held between August 4-6, 2021, RBI maintained the same Repo Rate at 4%. Reverse Repo Rate is also kept same
3 at 3.35%. Global commodity prices and episodes of financial market volatility, together with vulnerability to new waves of infections are,
however, downside risks to economic activity. Taking all these factors into consideration, projection of real GDP growth is retained at 9.5% in
2021-22 consisting of 21.4% in Q1; 7.3% in Q2; 6.3% in Q3; and 6.1% in Q4 of 2021-22. Real GDP growth for Q1:2022-23 is projected at 17.2%.

4 CPI Inflation eased to 5.59% in July-21 from 6.26% in June-21 due to moderation in Food Prices. While, Wholesale Inflation (WPI) eased to
11.16% in July-21 from 12.07% in June-21 due to softening of food and fuel prices

10-Year G-Sec Yield & Overnight MIBOR Rate as on 30th July-21 are 6.22% and 3.40% respectively. Both Crude Oil & Gold Imports reported
5 growth sequentially. As on 30th July , 2021, India’s Foreign Exchange Reserves reached at $620 Bn on account of rise in Foreign Currency Assets
(FCA). July 2021 reported net FII outflow of Rs.7,410 Cr, thus posting FIIs to be net sellers, DIIs played a key role becoming net buyer in July,
thus maintaining the market momentum in July-21, Whereas as on August 23, 2021, Net FII inflow were Rs.7,796 Cr.

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Growth Indicators
1. GDP
2. IIP
3. PMI
4. Auto Sales
5. Market Cap to GDP Ratio

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 GDP Growth% GDP Growth Rate QoQ Trend
- In Q4FY21, the Indian economy was on the path of recovery but due to the second wave of Covid 19,
the new delta variant and the possibility of the third wave led to more restrictions & state-wise 8.3-26.2% E
lockdown which hampered the growth. Several businesses, especially retail, have been crippled by 6% E
local lockdowns, although there have been no breaks in supply chains, and many industries are 3.3% 3.1%
0.4% 1.6%
functioning. Rising unemployment and hard-hit sectors such as tourism and hospitality are pulling
down the economy.
-7.3%
- Due to the second wave, many rating agencies cut the India GDP forecast. Fitch Ratings cut India’s
growth forecast to 10% for FY22, from 12.8% estimated earlier while S&P Global Ratings lowered its -24.4%
growth estimate to 9.5% from 11% earlier. RBI has cut its forecast of real GDP growth at 9.5% from
10.5% estimated earlier for FY21-22. The World Bank expects India’s GDP to grow by 8.3% in FY22 from
10.1% estimated just two months ago.

- The backbone of the Indian Economy, the banking sector is not in a healthy state. Due to large bad
loan assets, the credit growth won’t revive to large extent. Going forward, asset quality and bank GDP Growth Rate YoY Trend
profitability will be the area of concern.
10.5% E
- A sharp rise in domestic fuel prices has also raised doubts about India’s economic recovery. Petrol and 6.4% 7.4% 8.0% 8.3% 7.0%
5.5% 6.1%
diesel are retailing are record high prices and it’s likely to rise further as global oil rates consolidate. 4.0%
The surge in fuel cost affects almost all corners of the economy. India is most likely facing cost-push
inflation is primarily result of supply chain disruptions. Global commodity and crude prices have gone
up. As per the RBI Governor, inflation is only transitory inflation which should moderate in the third
quarter. Inflation related to food items, such as edible oils and vegetables, pushed up the Indian CPI
inflation during 2020. -7.3

- The second wave of Covid and the new delta variant has been merciless to the nascent economic
recovery of India. The pace of vaccination will play an important role in further growth & recovery.
Inflation is a matter of concern that needs to keep our eyes on.
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 IIP Growth%
• India’s Industrial Output expanded by nearly 13.6% YoY in June, against a 28.6% rise in May IIP YoY Trend
and a massive 134% rise in April, on a lower YoY base a year back due to nationwide 10%
lockdown. IIP shrunk by 16.6% last year in Jun-20. The indices for the current months in 2021 4.6% 4.4%
5% 3.3% 4.0% 3.3% 3.8%
are not strictly comparable with the same months from 2020, when the nationwide
lockdown was in full force and a majority of factories were not operating. Consequently, there
were many units which reported ‘Nil’ production, affecting comparison of the indices. 0%
-0.8%
-5%
• In FY21, during for the entire fiscal, IIP contracted by 8.4% in FY21 compared to 0.8%
contraction in FY20, due to subdued industrial output in H1:FY21 -10% -8.4%
• In June, the manufacturing sector saw output increase by 13% after rising by 34.5% in May -15%
and jumping by nearly 200% in April. Given the comparability issues related to the lockdown FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
in Jun-20, it is prudent to assess the growth in June 2021 relative to June 2019, Thus
Compared to June 2019 (Pre-pandemic scenario), manufacturing output shrank by 16.4%.
Manufacturing had been in freefall for most of 2020 given the series of total lockdowns IIP Primary Goods
implemented at the national and regional levels. But inherent stress in the sector had become
visible even before the pandemic hit. Capital Goods Intermediate Goods
100% 150%
80% Infrastructure

SEGMENT-WISE GROWTH %
• There are two things to note while gauging the IIP growth: 60% 100%
1. The base effect is waning and in another two months, the base effect will vanish 40%
completely. From that point, only fresh growth impetus will be able to push IIP higher. 20%
50%
2. The IIP is still short of pre-COVID levels, means that the risk of 2 lost years is a reality 0%
13.6%
that Indian economy needs to contend with. -20%
0%
-40%
• IIP posted negative growth as compared to Jun-19 IIP, doesn’t provide encouraging picture in -60%
-80% -50%
Jun-21. And, this is the case when industries were allowed to remain operational during
-100%
second wave-related lockdowns albeit with strict Covid protocols/lower employee
-120% -100%
headcounts. Clearly, the path to economic recovery and meaningful economic growth is not a

Dec-19

Dec-20
Apr-19

Apr-20

Apr-21
Jun-19

Jun-20

Jun-21
Feb-20

Feb-21
Oct-19

Oct-20
Aug-19

Aug-20
FY22 but FY23 story.

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Monthly PMI - India’s Manufacturing PMI rebounded to 3-months high in July-21 & rose to from a contraction of 48.1
in June-21. PMI corroborated the upswing in other parameters of the economy, like GST collection which
rose to Rs.1.16 Trillion in July from Rs.92,849 Cr in June. Whereas, India’s Services PMI stood at 45.4 in
Manufacturing PMI July-21, indicated that the services sector remains in contraction mode for the third consecutive month in
58.9 July.
56.8 56.356.457.757.555.455.5 55.3
51.8 52.0 50.8 - Purchasing Managers’ Index, compiled by IHS Markit shows an expansion (PMI > 50) or a contraction
47.246.0 48.1 (PMI < 50) in manufacturing activity compared with previous month. It correlates with IIP & GDP numbers
& also with the monthly GST collections.

- Indian manufacturing industry saw recovery in July from the blip seen in June, majorly driven by :
30.8 1. Industry Output growing at a robust pace, with over 1/3rd of companies noting a monthly expansion in
27.4 production
2. Rebound in New Business : Factory orders rose amid reports of improved demand and the easing of
restrictions. Strengthening international demand contributed to the uptick in total order books,
Expansion in New export orders
APR-20

AUG-20

APR-21
MAY-20
JUN-20

OCT-20

JAN-21

MAY-21
JUN-21
FEB-21
MAR-20

MAR-21
JUL-20

JUL-21
SEP-20

NOV-20
DEC-20
3. Easing of some local Covid-19 restrictions
4. Slowest Increase in Input cost : Inflationary pressures started declining, while Output charges rose only
slightly, however, as several companies absorbed additional cost burdens amid efforts to boost sales.
5. New Job Creation in Manufacturing : Rise in Employment for the first time since onset of COVID-19
Services PMI
55.354.6 54 - Services are contact-intensive and therefore cannot replicate the swift recovery like in manufacturing.
54.153.7
52.352.8 Services PMI gives 3 clear signs that services may take more time to revive.
49.3 49.8 1. COVID 2nd wave have dented the sentiments in a big way: Firms are pessimistic about the outlook one
46.4 45.4 year ahead, Inflationary pressures have intensified for service providers
41.8 41.2 2. Employment fell for the 8thconsecutive month in the services industry. The weak outlook on jobs may
lead to further pressure on demand
33.734.2
3. Demand conditions in Services, both domestic and international have worsened since the 2nd wave.
Additionally, the potential threat of another wave, and services outlook gets bleaker.

5.4 12.6 - Uncertainty about the path of pandemic restricted business confidence among the firm but as the India
expanding its vaccination , it is hoped that pandemic can be brought under the control and sustainable
MAR-20

MAR-21
JUL-20

JUL-21
SEP-20

DEC-20
APR-20

AUG-20

APR-21
JUN-20

JAN-21

JUN-21
MAY-20

OCT-20

MAY-21
FEB-21
NOV-20

recovery can begin. Impact of COVID-19 pandemic and its associated restrictions is less severe than last
year in the manufacturing industry, but Indian manufacturers may continue to experience challenges for
some time.
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 Monthly Auto Sales - July - With entire nation is open now, July continued to see robust recovery in
Auto Retails due to demand from all the categories remain high. The base
Passenger Vehicles Commercial Vehicles
effect is also continued in this month.
400,000 100,000
- Total vehicle retails for the month of July’21 rise by 34.12% on YoY basis.
80,000
300,000
60,000
When compared to July’19 (a regular pre-covid month), recovery is visible
200,000
40,000 as the deficit reduces to low double digits of -13.22%.
100,000 20,000 - On YoY basis, all categories were in green with 2W up by 28%, 3W up by
0 0 83%, PV up by 63%, Tractor up by 7% and CV up by 166%.

Jul-20

Jul-21
Nov-20
May-20

May-21
Mar-20

Mar-21
Jan-20

Sep-20

Jan-21
Jul-20

Jul-21
Nov-20

May-21
May-20
Mar-20

Mar-21
Jan-20

Sep-20

Jan-21
- Auto Sales witnessed a pent up demand in July led by easing of lockdowns
& demand recovery:
1. Passenger vehicle : Increased by 42% MoM due to high demand, buzz
Tractors around new launches and compact SUV segments. After Tractors, PV for
3-Wheelers
150,000 80,000
the first time shows strong numbers by clocking 24% growth when
compared to pre-covid month of July’19.
60,000
100,000 2. Commercial Vehicles : increased by 46% MoM as the Government rolling
40,000
50,000 out infrastructure projects in many parts of the country
20,000
3. 2-Wheelers : increased by 22% MoM, 3-Wheelers : increased by 89%
0 0
MoM
Jul-20

Jul-21

Jul-20

Jul-21
Nov-20

Nov-20
May-21
May-20

May-20

May-21
Mar-20

Mar-21

Mar-20

Mar-21
Jan-20

Sep-20

Jan-21

Jan-20

Sep-20

Jan-21
4. Tractors: Increased by 58% MoM

- Near Term Outlook : The month of August is giving a ray of hope as the
2-Wheelers Total Auto Sales demand, enquiry levels continue to improve across all the categories.
3,000,000 3,000,000 With IMD’s forecasting normal monsoon forecast, this will have a rub off
effect on rural sales especially in Tractor segment. The global semi-
2,000,000 2,000,000
conductor shortage is now becoming a deep routed problem for the PV
1,000,000 1,000,000 segment which is now above the pre-pandemic mark.
- We will have to wait and watch how the overall economy shapes up over
0 0
the next couple of months. The demand can be a mixed bag and hope that
Jul-20

Jul-21

Jul-20

Jul-21
Nov-20

Nov-20
May-20

May-21

May-20

May-21
Mar-20

Mar-21

Mar-20

Mar-21
Jan-20

Sep-20

Jan-21

Jan-20

Sep-20

Jan-21

recovery is back on track by the time Navratri and Diwali knocks our door.
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 GST Collections
2019-2020 2020-2021

141,384
- With the easing out of COVID-19 restrictions, GST collection for July,2021
has again crossed 1 lakh crores, which clearly indicates that the economy is

123,902
recovering at a fast pace. The robust GST revenues are likely to continue in

119,875

116,393
115,174

113,143
the coming months too.

110,828

105,366
105,155

104,963
103,491

103,184

102,709
- The gross GST revenue collected in the month of July 2021 is Rs.1,16,393
98,902

97,590
95,480
95,379

92,849
91,916

90,917
crores of which CGST is Rs.22,197 crores, SGST is Rs.28,541 crores, IGST is

87,422
86,449

Rs.57,864 crores (including Rs.27,900 crores collected on import of goods)

IN RS. CRORE

and Cess is Rs. 7,790 crores (including Rs.815 crores collected on import of
goods).

62,151
- The revenues for the month of July 2021 are 33% higher than the GST
revenues in the same month last year. During the month, revenues from
import of goods was 36% higher and the revenues from domestic

32,172
transaction (including import of services) are 32% higher than the revenues
from these sources during the same month last year.

- GST collection, after posting above Rs. 1 lakh crore mark for eight months
in a row, dropped below Rs. 1 lakh crore in June 2021 as the collections
during the month of June 2021 predominantly related to the month of May
2021 and during May2021, most of the States/UTs were under either
complete or partial lock down due to COVID.

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Market Capitalization to GDP Ratio (Y-o-Y)
- In current Equity market outlook as on 20th August 2021, India’s Market
Market Cap to GDP Ratio BSE Sensex Cap to GDP ratio jumped to whopping 122 from 56 in March 2020
160 (Lowest since FY2009-10)
55,32960,000
- Indian Stock market has gone through a big corrections due to Heavy sell-
off by FIIs amidst Coronavirus outbreak. For Q1 FY21 GDP recorded the
140
50,000 sharpest contraction of 23.9%, resulting in lower TTM GDP base
Global Financial Crisis - Peak 149 in Dec'07
122 - However, the Indian Stock Market are currently soaring to Life-time Highs
120 114 on the back of the exceptional optimism in the markets over big boost
103 from Budget 2021, Indian Inc reported bumper Profits since last 2
Long-term 104 40,000
100 Average : 75 95 quarters), Strong comeback of FIIs since Oct-20, Though FIIs has been net
88 sellers over last 4 months, during this FII selling, strong DII inflows have
82 83 71 81 79
83
79 protected the Indian market from a correction
80 30,000
69
64 64 66 - Market Cap to GDP Ratio, also popularly known as the ‘Buffett Indicator’
60 55 56 is used to assess the valuations of the stock markets of a country. It is
50 52
20,000 expressed as country’s Total Market capitalization (value of all listed
42
40
companies in a country) as % of Nominal GDP. The ratio tells whether the
country’s stock market is overvalued or undervalued, compared to
10,000 its historical average.
20
- The ratio is a backward-looking indicator comprising historical data. The
0 0 historical average of India’s Market Cap to GDP ratio is around 75. Thus,
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
May-21
August 20, 2021
we can say that current market outlook (where, Market cap to GDP ratio
is at 122) is noticeably overvalued as compared with historical average

- From Dalal Street to Wall Street, Bulls are back. All major Global Indices
are trading at all-time high levels currently.

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 Market Capitalization to GDP Ratio (M-o-M)
Market Cap to GDP Ratio BSE Sensex - In current Equity market outlook as on 20th August 2021, India’s
160 60,000
Market Cap to GDP ratio jumped to whopping 122 from 56 in March
55,329 2020 (Lowest since FY2009-10)
140
28,870 122 50,000 a. In March-2020, Stock market has gone through a big corrections
114117120
120 amidst Coronavirus outbreak and its impact on economic outlook,
106 both domestic as well as global. Heavy sell-off by FIIs in Indian Equity
99 98 103 104 40,000 market was seen due to the concerns over coronavirus crisis
100 92 b. However, the Indian Stock Market are currently soaring to Life-time
80 80 81 82 Highs on the back of the strong bounce back after the second wave
80 73 68 73 30,000 of covid, healthy GST collections, resumption of business activity and
64 62 supportive global cues
56 c. After bottoming out from 25,981 on March 23, 2020, BSE Sensex has
60
20,000 soared by almost 116% thus reaching all-time high 56,118 on August
18, 2021.
40
- The historical average (last 19 months) of India’s Market Cap to GDP
Average for the 10,000
ratio is around 88. Thus, currently the market is trading at euphoric
20 Period : 88 valuations, on strong optimism for future growth outlook

0 0 - Strong Recovery of Markets is evident from the current all-time high

Oct-20
Jan-20
Feb-20

Jan-21
Mar-20

Sep-20

Feb-21
Mar-21
Nov-20
May-20

May-21
Jun-20

Jun-21
Apr-20

Jul-20

Apr-21

Jul-21
Aug-20

Dec-20

August 20, 2021 index levels. From Dalal Street to Wall Street, Bull run continues on
the bourses . Uncertainty over the renewed waves and new variants
of COVID pose concerns over the near-term performance of the
market

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Monetary Indicators
1. Inflation
2. RBI Policy Rates
3. 10 YR G-Sec & MIBOR Yields

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CPI & WPI Inflation
CPI Inflation % 15% WPI Inflation %
12.94%
10%
8.60% 10% 11.16%
7.39% 7.61%
8% 5.19% 3.10%
6.07% 6.26% 4.95%
5% 5.54%
7.88% 5.40% 5.21% 2.10% 4.02% 1.55%
6% 2.76%
3.89% 0.87% 0.90%
3.28% 0%
4% 4.83%
4.28% 5.84% 5.59% 0.16%
3.69% 3.17% -3.85%
2% -5% -3.37%
3.27%
1.97% -6.14%
1.46%
0%
-10%
May-14

May-15

May-16

May-17

May-18

May-19

May-20

May-21
Jan-15
Jan-14

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21
Sep-15
Sep-14

Sep-16

Sep-17

Sep-18

Sep-19

Sep-20

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21
Sep-15
May-14

May-15

May-16
Sep-14

Sep-16

May-17
Sep-17

May-18
Sep-18

May-19
Sep-19

May-20
Sep-20

May-21
• Retail Inflation (CPI) : India’s Retail inflation eased to 5.59% in July-21 from 6.26% in June-21 due to moderation in Food Prices
• In July 2021, Food Inflation softened MoM to 3.96% from 5.15% in Jun-21 & 5.01% in May-21, while fuel inflation inched lower to 12.4% in July from
12.7% cent in June. Core inflation — the non-food, non-fuel inflation component — came in at 5.7% in July as against 5.9% in June.
• Retail Inflation has come within the RBI’s targeted range of 4 (+/-2)% after two months, easing concerns of an immediate rate hike action by the RBI
• Inflation expected to remain sticky in the 5-6% range over the next 3 quarters, but a small disruption could push inflation back above the 6% threshold
• RBI in latest monetary policy review (Aug 4-6) has kept the rates and stance unchanged and pledged to remain accommodative in the near future,
while raising its inflation forecast to 5.7% during FY22. RBI projected 5.9% in the Q2:FY22, 5.3% in Q3 and 5.8% in Q4, with risks broadly balanced.

• Wholesale Inflation (WPI) eased to 11.16% in July-21 from 12.07% in June-21 & 12.94% in May-21. WPI remained in double digits for the fourth consecutive
month, as fuel and food inflation moderated even as inflation of manufactured items picked up.
• Food Inflation was 0% in July from 3.1% in Jun-21 & 4.3% in May-21, while fuel inflation eased to 26% in July from 32.8% in Jun-21 & 37.6% in May-21
• However, inflation for manufactured items rose to 11.2% in July from 10.88% a month ago, signaling that manufacturers were regaining pricing power
with economic recovery gathering momentum. Core inflation continued to rise, touching 10.8% in July from 10.4% in June.
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CPI Sub-groups Indices
July - Aug- Sept- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- July - Change since
20 20 20 20 20 20 21 21 21 21 21 21 21 Last month

Food &
157 158 161.4 164.7 165.4 161 157.6 156.9 156.7 158.1 160.7 162.6 164.0
Beverages

Clothing &
151.7 152 152.3 152.8 153.6 154.2 154.9 155.8 156.4 157.3 160.4 160.7 161.5
Footwear

Housing 155.5 156.3 156.5 158 158.4 157.7 158.9 159.8 159.9 161.4 161.6 160.5 161.5

Fuel &
143 142.9 143.1 143.6 144.6 148 150.2 152.4 155.5 155.5 159.4 159.8 160.7
Light

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RBI Policy Rates
May- Aug- Oct- Dec- Feb- June- • In the MPC Meet held between August 4-
% Aug-21 Change
20 20 20 20 21 21 6, 2021, RBI maintained the Repo Rate at
4% amidst rising inflation
Repo Rate 4.00 4.00 4.00 4.00 4.00 4.00 4.00 - • Accordingly, Reverse Repo Rate is
maintained at 3.35% to enhance credit
Reverse Repo growth & to motivate banks to pass on the
Rate
3.35 3.35 3.35 3.35 3.35 3.35 3.35 - excess liquidity in the system rather than
taking cautious stance by parking funds at
Bank Rate 4.25 4.25 4.25 4.25 4.25 4.25 4.25 - •
RBI
Status quo on policy rates
Cash Reserve • Policy stance maintained to
Ratio
3 3 3 3 3 4 4 - “Accommodative” to support the growth
amid the COVID pandemic
Statutory Liquidity
Ratio
18.0 18.0 18.0 18.0 18.0 18.0 18.0 -
• Key Relief Measures announced by RBI are :
1. 2021 has begun with strong positive growth on the back of vaccination, leading further strengthening of Signs of recovery
2. Funds from Banks via TLTRO scheme now available to NBFCs
3. RBI has decided to gradually restore CRR in two phases in a non-disruptive manner to 3.5% w.e.f March 27 and 4% w.e.f May 22, 2021 and also extended MSF
facility up to Sept 30, 2021
4. Special liquidity support provided to NABARD and National Housing Bank. This will support credit push in the economy.
5. Boost for Real Estate Sector : RBI adjusted rules for new home loans by removing loan size by 31 March 2022. This will enable banks to push housing loans at
more attractive offers for high-value properties without worrying for higher capital charge (ie. Risk Weight)
6. Loan-to-value (LTV) ratio for gold loans increased to 90% of the value of gold till March 31, 2021
7. Restructuring of debt for Stressed MSMEs, Priority sector lending guidelines to remove regional disparity.
8. RTGS system will soon be made 24x7, It will enhance overall efficiency of the payments ecosystem
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10-Year G-Sec Yield & Overnight MIBOR Rate
- As per RBI’s recent release, 10-year G-Sec Yield decreased to a 4 month low of 6.22% in July-21 from a recent high of 6.34%. Decreasing
benchmark interest rates since Feb-19 decreased the MIBOR rates and it is started consolidating now as expected. Overnight MIBOR is at 3.40%
as of July-21.
- Current Yields are among the lowest since demonetization. Yields came very low after demonetization due to substantial liquidity infusion in
the banking system through open market operations, reduction in repo and reverse repo rates, etc.
- There was a sudden surge in the 10-year G-sec yield towards the end of 2019. In the backdrop of rising inflation, the fear of excess government
borrowing is pushing up interest rates. Bond yields increased after the foreigners dumped the Indian bonds fearing a widening fiscal deficit.
- The spread between corporate bonds and G-sec is narrowing which shows the easing of risk aversion. However, the spreads are still higher than
last year, indicating aversion towards lending to NBFC segment as they are mainly dependent on CPs for short term borrowing.
- The government’s market borrowing plans in the forthcoming financial year will remain crucial to guide the direction in yields. We expect yields
to decrease further in coming months especially due to market expectation of further repo rate fall on accommodative stance of RBI.

10-Year G-Sec Monthly Yield (%) Overnight MIBOR Rate (%)

8.5 7.00 6.60 6.73
7.98 8.02 6.35
8
5.97
7.44 6.00 6.25
7.5 7.75 5.52
YIELD %

7.41 6.85 6.82 5.09

7 6.73 5.00 5.25
4.81
6.55
6.5 6.34
6.54 6.12 6.34 4.41
4.00 3.79
6.37
6 4.04 3.47 3.40
5.96
5.98 5.84
5.5 3.40
3.00
Sep-17 Apr-18 Oct-18 May-19 Dec-19 Jun-20 Jan-21 Jul-21 Feb-22 Apr-18 Oct-18 May-19 Dec-19 Jun-20 Jan-21 Jul-21 Feb-22

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Deficit
1. Fiscal Deficit
2. Current Account Deficit
3. Gold & Oil Imports

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Fiscal Deficit
Fiscal Deficit as % of GDP - The healthy GST collection revenue & mild contraction in revenue expenditure
helped the government to narrow its fiscal deficit for the Q1FY22 ( April- June) to
an eight year low of Rs.2.74 lakh Cr or 18.2% of the full year’s budget estimate
18.2% which giving the confidence to achieve its fiscal deficit target easily.

Fiscal - For the FY21, fiscal deficit was 9.3% of GDP better than 9.5% projected in the
Consolidation is revised estimates in the Budget in February.
expected by FY26
- The government’s net tax receipts came in at Rs 4.12 lakh crore of 26.7% of
budgeted estimates while total receipts stood at Rs 5.47 lakh crore or 27.7%
of budgeted estimates. Net and gross tax collection in the corresponding
9.3% quarter last year was Rs 1.35 lakh crore and Rs 1.5 lakh crore.

- In the recent budget the central government has set a fiscal deficit target Rs.15.1
Lakh Cr in FY22, which is 6.8% of GDP
6.8% E - Fiscal Consolidation is expected by FY26 : Thus, Government has set a glide
path to reduce it to 4.5% by FY26. This marks a sharp departure from the
4.6% 4.5% earlier fiscal deficit projection of 3.3% of GDP for 2021-22.
3.9%
3.5% 3.5% 3.4%
- The government is very confident about achieving its target but the divestment will
be the key to achieve it.

• Government has planned the Divestment of BPCL, Container Corporation, Shipping

Corporation, Pawan Hans, Air India and LIC IPO to meet the divestment target of
Rs.1.75 Trillion to support Fiscal deficit. Thus, delivering on fiscal consolidation and
raising incomes will be extremely challenging for India

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Current Account Deficit - India reported a current account surplus of 0.9% of GDP in the pandemic-hit FY21, as against a
deficit of 0.9% in FY20. The CAD, the gap between the country's overall foreign receipts and
Current Account Deficit as % of GDP YoY payments, is an important factor representing a nation's external sector's strength.
- As per the RBI, the current account balance swung into the surplus territory on the back of a
0.9% sharp contraction in the trade deficit to $102.2 billion from $157.5 billion in 2019-20.

- India's current account balance recorded a deficit of USD 8.1 billion (1.0% of GDP) in Q4FY21
was primarily on account of a higher trade deficit and lower net invisible receipts a compared
-1.3% -1.1% -0.7% -0.9% to a surplus of USD 0.6 billion (0.1% of GDP) in Q4FY20 and a deficit of USD 2.2 billion (0.3% of
-1.7% -1.8% -2.1% GDP) was recorded in Q3FY21.

-4.3% - India, being a developing and emerging market economy, typically runs a deficit on the
-4.8% current account to supplement domestic savings with foreign savings to fund higher
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 investment

- Current account deficit of USD 8.1 billion (1% of GDP) was mainly driven by:
1. Net services receipts increased on the back of a rise in net earnings from computer, transport
and business services on a year-on-year basis
Current Account Deficit as % of GDP QoQ Trend 2. Private transfer receipts, mainly representing remittances by Indians employed overseas,
increased to US$ 20.9 billion, up by 1.7% from their level a year ago.
Q1 FY20 -2.1% 3. Net overseas investment income payments, increased to US$ 8.7 billion from US$ 4.8 billion a
year ago.
Q2 FY20 -1.1%
Q3 FY20 -0.4% - In the last 10 years, India's current account deficit is averaged 2.2% of GDP. Crude Oil and Gold
Q4 FY20 0.1% Imports, Rupee Depreciation are the host factors for India’s CAD
Q1 FY21 3.7%
- In the Budget, Government’s Measures for Reducing CAD :
Q2 FY21 2.4% 1. FPI limit in Corporate Bonds increased to 15% from 9%
Q3 FY21 -0.3% 2. Hike in Custom Duty of Imported Items like Auto-parts, Solar Equipments, Electric Vehicles,
Q4 FY21 -1.0% Mobile Components, Medical Equipment for Promoting Make in India
3. Inputs, Raw materials made cheaper for domestic Industry & MSME
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Crude Oil & Gold Imports
Gold Import Monthly (in Mn US$)
Crude Oil Import Monthly (in Mn US$)
14000 9000
12000 8000
7000
10000 8,280
6000
8000 5000
6000 4000
3000
4000
2000
2000 1000
0 0 653

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21
Apr-16

Apr-17

Apr-18

Apr-19

Apr-20

Apr-21
Oct-17
Oct-16

Jul-18
Oct-18

Oct-19

Oct-20
Jul-16

Jul-17

Jul-19

Jul-20
Apr-16

Jan-17
Apr-17

Jan-18
Apr-18

Jan-19
Apr-19

Jan-20
Apr-20

Jan-21
Apr-21
Oct-16

Oct-17

Oct-18

Oct-19

Oct-20
Jul-16

Jul-17

Jul-18

Jul-19

Jul-20
Crude Oil Import Y -o-Y (in Mn US$) Gold Import Y-o-Y (in Mn US$)
111,955 40,000
120,000 101,388
35,000 33,657 32,897
31,771
100,000 87,803
30,000 27,518 28,141
25,940
80,000 70,196 25,000
63,972
62,732
60,000 20,000
15,000
40,000
25,096
10,000 6,871
20,000
5,000
0 0
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22

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Foreign Investments
1. Foreign Exchange Reserves
2. FDI
3. FPI & FII

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 Foreign Exchange Reserve
- With the consistently rising trend, India’s Foreign Exchange Reserves surged Trend of Forex Reserves (USD Bn)
by $9.42 bn & reached to new milestone at $620.57 bn as of 30th July 2021 on Forex Reserve % Growth
the back of an increase in foreign currency assets (FCAs), a major component
of the overall reserves & settled at $619 bn as of 13th August 2021. 650 6%
5.4% 621 619
- During FY20, the country's foreign exchange reserves had risen by almost USD 590 608
598 5%
62 billion and for FY21, Forex rose by USD 115 bn (April-Jan FY21) 600 585 585 588
575 579
561 4%
- In March-20, Foreign investors pulled out close to $15 billion from Indian
2.7% 541546
markets amid worldwide COVID outbreak. So, RBI continued to supply dollars 550 3.0% 534 2.8% 3%
2.6%
into the market to stem fall in the Rupee. As a result, country’s forex reserves
507 2.5%
fell in March-20 2.2% 493
500 2.1% 2%
482476481 1.8% 1.7%1.7%
- Forex reserves comprised of Foreign Currency Asset (FCA) – a Major 471 1.5%
1.4%
component of Total Forex, Gold reserves, Special Drawing Rights (SDR) & 1.2% 1%
450 0.8% 0.8%
reserve position in IMF. Forex Reserves helps in meeting country’s external
0%
financial obligations. It is a big confidence booster for foreign investors. -0.2%
400 -0.9%
1. As on 30th July , 2021, FCA surged by $8.596 Bn to $576.224 Bn. FCA include -1%
-1.0%
the effect of appreciation or depreciation of non-US units like the euro, -1.2%
pound and yen held in the foreign exchange reserves. 350 -2%

Nov-20
May-20

Oct-20

May-21
Feb-20
Mar-20

Sep-20

Feb-21
Mar-21
Jan-20

Jan-21
Jun-20

Jun-21
Apr-20

Jul-20

Apr-21

Jul-21
Aug-20

Dec-20

August 13, 2021

2. Gold reserves climbed $760 mn to $37.644 Bn.
3. Special Drawing Rights with the International Monetary Fund (IMF) are at
USD 1.552 billion
4. Country’s Reserve Position with the IMF increased by $65 mn to $5.156 bn as
of 30th July 2021.
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 FDI Inflows - India emerged as an oasis of FDI in COVID period. Net FDI Inflows jumped to $17,800
Mn in Aug-20 boosted by high stakes investments in Jio Platforms & Reliance Retail.
Net FDI Inflows in FY21 have hit a record high at $44 billion from $43 billion in FY20. In
Jun-21 Net FDI turned negative due to Direct Investment to India was at $1.398 bn, less
FDI Inflows (in USD Million) than Foreign Direct Investment by India at $1.911 bn
20,000 - FDI equity flows were boosted by investments into Jio Platforms, Reliance Industries’
17,800 telecom subsidiary, from global investors like Google, Microsoft. The increased FDI is a
result of FDI policy reforms, investment facilitation and ease of doing business. There
has been a lot of quiet private equity investments taking place in the real estate sector,
15,000 which are expected to continue.
- Indian received a significant amount of foreign investments in the last 6 months when
the global economic conditions were fragile and investors were concerned about the
mounting uncertainties due to the coronavirus pandemic.
10,000 9,040
8,004 - The measures taken by the government on the fronts of FDI policy reforms, investment
7,001 facilitation, and ease of doing business have resulted in increased FDI inflows into the
6,195 6,509
5,668
country.
4,819 5,348
5,000 3,976 - The total FDI inflow grew by 55%, from $231.37 billion during 2008-14 to $358.29
3,362 4,698
3,812 2,016 billion during 2014-20.

1,983 3,034 - In Union Budget 2019-20, Indian government has supported FDIs by introducing various
1,2102,115 2,418 2,508
1,739
2,380 FDI welcoming norms like 100% FDI in insurance, Entry of FDI in Aviation, Media
1,658
0 1,068 industry and recent cabinet decision to increase FDI limit in Single brand retail, coal
-838 -513 mining & contract manufacturing.
- India is undertaking broad reforms in critical factors of production like land, labor and
-2,891
production which will open multiple opportunities for foreign investors to invest in
-5,000 India. Enthused by a record foreign investment inflow, India is optimistic of continuing
Apr-16

Apr-17

Apr-18

Apr-19

Apr-20

Apr-21
Aug-16

Aug-17

Aug-18

Aug-19
Dec-18

Aug-20
Dec-16

Dec-17

Dec-19

Dec-20

to be one of the world's favourite FDI destinations in 2020 on the back of the Indian
Government's liberalised norms and a significant jump in the ease of doing business
ranking.
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FDI Inflows (April 2000-March 2021)
Country-wise & Sector-wise

Share Of Top Investing Countries in FDI Equity Inflows Share Of Top Sectors in FDI Equity Inflows
% To Total Inflows (In USD) % To Total Inflows (In US$)
(April 2000 - March 2021) (April 2000 - March 2021)
2% 2%
2% Mauritius Servies Sector
2%
Singapore 3% Computer Hardware & Software
3%
6% USA 3% 16% Telecommunications

28% Netherlands 5% Trading

7% Japan Construction Development

UK 5% Automobile Industry
Germany
7% Construction Activities
UAE 5% 13% Chemicals (other than fertilizer)
Cyprus
8% Drugs & Pharma
Cayman Islands 6%
22% 7% Hotel & Tourism

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FPI & FII
FPI & FII Investment (INR Cr)
- After a net inflow of Rs.12,974 Cr in June, FII turned into net outflow on
account of resurgence of COVID 2nd wave and localized lockdown across India. Jan-19

FII lose momentum in July with net outflow of Rs.7,410 Cr (As on 30th July, Mar-19 48,751
2021). However, Market didn’t undergo significant correction on account of
May-19
strong inflow from DIIs during FII selling in July-21. As on August 23, 2021, FIIs 13,111
are net buyer again with net inflow of Rs.7,796 Cr. Jul-19
-5,871
- In July-21, FIIs sold Indian equities worth Rs.11,308Cr. Both Indian Debt segment Sep-19
and Hybrid segment saw the net outflow of Rs.782Cr and Rs.138 Cr respectively. Nov-19 22,999
- After heavy buying in July by FII, the selling was expected in the month of July but Jan-20
heavy selling wasn’t expected. There were concerns regarding the Covid Delta
variant to add more difficulty for the recover of economy. Mar-20 -118,203

May-20
- The asset quality stress in the banking & NBFC sector led to heavy sell of in Banks
& NBFC. Banks witnessed net selling $986 million while the NBFC segment saw Jul-20
selling of $460 million. 49,879
Sep-20
21,826
- IT sector saw profit booking with net selling of $465 million
Nov-20 62,782
- The metal sectors saw positive infusion of $225 million from FPIs in July. While Jan-21 14,631
71,046
domestic demand is robust on GDP recovery hopes, global demand for metals 24,013
picked up after China put curbs on exports. Mar-21 17,023
-8,836
May-21
- Due to revenge buying, consumer sector saw inflow of $210 million. Consumer -1,958
12,974
goods are not as badly hit by input cost inflation compared to autos or FMCG Jul-21 -7,410
products and that has attracted FPI interest in these stocks. (up to23,
up to August 11-2021
March-2021) 7,796

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FII & DII Monthly Trend
• Sensex & Nifty doubled since Mar- Net FII & Net DII Monthly (Rs. Cr)
20 and are now trading at Life-time
FII DII Sensex Nifty
Highs.
80,000 60,000
• FIIs turned net Seller in July-21,
with the outflow of Rs.23,193.39Cr,
60,000
while DIIs were net Buyers with net 55,595
50,000
inflow of Rs.18,393Cr. Thus, DIIs
are playing significant role in 40,000
Market momentum. 40,000
18,394
• Historically, whenever there was 20,000

heavy sell-offs by FII, Indian Indices

has given sharp declines. 0 30,000

1. 2008 – Global Financial Crisis

-20,000
2. 2015 – Euro Crisis -23,19320,000
3. March 2020 – Coronavirus -40,000
Outbreak
10,000
• Over the long-term trend, DIIs have -60,000
always been supporting Indian -65,817
stock market levels whenever -80,000 0
there is strong FII outflows
Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21
Jul-08

Jul-09

Jul-10

Jul-11

Jul-12

Jul-13

Jul-14

Jul-15

Jul-16

Jul-17

Jul-18

Jul-19

Jul-20

Jul-21
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Banking Health
1. Deposit & Credit Growth
2. GNPA

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 Bank Deposit Growth & Credit Growth
- On a year-on-year basis, non-food bank Credit Growth is hovering between
5%-7%. Since Sept-19, Bank Credit growth has been in single digits. Bank's Deposit Growth & Credit Growth
- With the revival in economic activities, credit growth is improving since last 4
months & is at 6.1% in Jun-21. Whereas, Deposit growth settled down to 9.8% Deposit Growth Credit Growth
as on Jun-21 after witnessing a jump of 12.1% in Feb-21 18%
16.2%
- As the bank’s are passing the benefit of reducing interest rates to consumers, 16%
banks’ credit growth is expected to rise though at a slower pace. Credit growth 14.7%
is expected to be around 14% in upcoming in FY as compared to only 8% in last 14% 13.4% 13.5%
FY 12.1% 12.1%
12%
10.8% 11.1%
- As most of the urban areas are still under mini lockdowns and companies are 10.3% 10.5%
9.9%
economic activities are staring slowly, banks are showing aversion in lending. 10% 8.9% 10.5% 10.8% 9.8%

- Deposit growth is increasing in past few months due to problems in debt 8% 8.7% 7.2%
market – defaults of IL&FS, Zee and DHFL. Due to these, investors are moving 6.7%
6.2%
towards more stable Bank’s deposits 6% 6.1%
5.5%
- Amidst the current COVID scenario, since RBI cut the reverse repo rate cut by 4% 5.1%
higher points (90bps) than repo rate (75bps), Banks are having limited option
but to transmit the lower policy rates to the end consumers in order to achieve 2%
the credit growth momentum.
0%
- Bank’s deposit rates are also coming down hand-in-hand with the declined Apr-18 Oct-18 May-19 Dec-19 Jun-20 Jan-21 Jul-21
interest rates.
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 Gross NPA of Banks%
- As per the recent Financial Stability Report (FSR) by RBI released in July-21, Macro stress test for banks are
stated under the baseline as well as severe stress scenario by RBI. Gross NPAs of Banks & NBFCs %
- Gross non-performing assets (GNPAs) of Banking system (All SCBs) may increase from 7.48% in Mar-21 Mar-20 Mar-21 Baseline
to 9.80% by Mar-22 under the baseline scenario and to 11.22% under a severe stress scenario
Mar-22 Baseline Mar-22 Severe Stress
1. Public-sector banks’ (PSBs) GNPA ratio may increase to 12.52% by Mar-22 under baseline scenario from
9.54% in Mar-21
2. Private banks may record rise in Gross NPA to 5.82% by Mar-22 under baseline scenario from 5.74% in 12.52
Mar-21 & may extend to 6.46% under severe stress scenario 12
11.22
3. While NBFCs reported Gross NPA at 6.40% in Mar-21, reported decline in Gross NPA YoY
9.54 9.8
- The Macro stress test would help in early identification of impairment losses and aggressive capitalization
9
is crucial for supporting credit growth of overall banking system across various sectors alongside
preventive strategies for dealing with potential NPAs. This highlights the need for proactive building up of
6.46 7.48
adequate capital to withstand possible asset quality deterioration.
5.82 6.4
- Sustained policy support, benign financial conditions and the gathering momentum of vaccination are
5.74 5.97
nurturing an uneven global recovery. Policy support has helped in shoring up financial positions of banks, 4.9
containing non-performing loans and maintaining solvency and liquidity globally.
- On the domestic front, the severity of the second wave of COVID-19 has dented economic activity, but 3.2
monetary, regulatory and fiscal policy measures have helped curtail the solvency risk of financial entities, 2.6
stabilize markets, and maintain financial stability.
- Performance parameters of banks have improved significantly, aided by regulatory dispensations extended
in response to the COVID-19 pandemic. Provision Coverage Ratio (PCR) stood at 68.86% during Mar-21
- Under the Baseline scenario, The capital to risk-weighted assets ratio (CRAR) of scheduled commercial PSBs PVBs FBs All SCBs NBFCs
banks (SCBs) increased to 16.03% in Mar-21. As per RBI’s Financial Stability Report (FSR), All 46 banks
would be able to maintain CRAR well above the regulatory minimum of 9% as of Mar-22 even under worst
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Markets
1. Indian Equity Market
2. Indian Currency
3. Mutual Fund Industry

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Indian Equity Market
Indian Equity Indices Sectoral Indices Monthly Performance

Sensex Nifty 50 Bank Nifty -2.31% Auto

60000
Oil & Gas
-0.76%
50000 52,586
FMCG 0.11%
40000 Bank 0.55%
34,548 Healthcare 0.69%
30000
Consumer Durables 1.38%
20000
Power 2.54%
15,763
10000
Capital Goods 4.28%
0 Realty 5.14%
Jan-18

Jan-19

Jan-20

Jan-21
Apr-18
Jul-18

Apr-19
Jul-19

Apr-20
Jul-20

Apr-21
Jul-21
Oct-18

Oct-19

Oct-20 IT 9.84%
Metal 11.00%

• As on 30th July, The BSE Sensex ended at 52,586, Nifty 50 at 15,763 and Bank Nifty at 34,548. Due to ease of restrictions, vaccination
drive and restart of business activity led to the Indian stock market in green shoots.
• On monthly basis, Metal, IT, Realty, Capital goods & Power sector outperformed and Auto & Oil & Gas underperformed

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Indian Currency
USD/INR US Dollar Index
74.33

92.19

• Indian Rupee : If the demand for Indian currency is high it will appreciative ( for example 1$= Rs.70) and if demand is low then it will depreciate ( for
example 1$= 75). The demand and supply forces determine the price of the currency. This is called as a Floating Rate System. Since 1993, India has adopted
the same. The factors such as economic conditions, interest rates, inflation, Import & export of gold, political instability, US dollar etc impacts the price of
currency.
• As on 30th July, the rupee has settled at 74.33 against the US Dollar. Due to second wave of coronavirus, the Indian rupee has been weakened in the recent
past . Rising imports, Current economic recovery, higher commodity prices threaten the current account to deficit and may boost the demand. In future
higher foreign inflow and RBI’s inflation control plan may help to control rupees volatility.
• US Dollar Index : It is known as the index of the value of the US dollar against a foreign currency basket. The US dollar index is used to measure the value of
the US dollar concerning the basket of six major currencies of the United States’ major trading partners. The higher value of an index means a stronger
dollar. It has an inverse relationship with INR, as you can see in the above graph. As on 30 th July it traded at 92.19.

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 •
Jan-20

24.28
Feb-20

Mar-20

Apr-20

May-20

26.07 27.28 27.28

Jun-20

Jul-20

27.74 28.34
Aug-20

Sep-20
Equity Net Purchase / Sales

Oct-20

29.83 30.96
Nov-20

Rs.trillion
Mutual Fund AUM Dec-20

Jan-21
Mutual Fund Industry

Feb-21

Mar-21
31.84 32.3 32.17 32.43

Apr-21
33

May-21
33.66

Jun-21
Debt Net Purchase / Sales

Jul-21
35.32

Jan-20 8,064

Feb-20 8,095

Mar-20 8,055

Apr-20 8,376

May-20 8,123

7,917
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Jun-20
Jul-20 7,831

Aug-20 7,792

Sep-20 7,788

Oct-20 7,800

Nov-20 7,302
SIP (in Cr)

Dec-20 8,418

Jan-21 8,023

Feb-21 7,528

Mar-21 9,182

Apr-21 8,596

May-21 8,816

Jun-21 9,156

Jul-21 9,609
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