Panorama – June, 2023

Panorama June 2023 edition is out now!

Panorama is a meticulously crafted report that offers an overview of the macro factors and market trends influencing the Indian economic landscape.

Here are the key insights from the report:

1. The corporate sector witnessed an improvement in performance due to margin expansion. However, the manufacturing sector was dragged down by underperformance in metals, while the services sector experienced a slowdown due to mediocre IT performance.

2. Improvement in margins can be attributed to the fall in raw material costs. Furthermore, the continued correction in WPI inflation is expected to support margin improvement in Q1FY24 as well.

3. Consumer-facing sectors witness weaker sales growth in Q1FY24. The improvement in sales seen in March quarter did not last into April-May 2023.

4. Wages have experienced robust growth in both rural and urban areas, resulting in increased employee expenses for service sector companies. The banking and real estate sectors demonstrate robust hiring, while the IT sector lags on weak growth prospects.

5. As the global rate hike cycle approaches its conclusion, there is an expectation of improved risk sentiment. Consequently, emerging markets, such as India, may experience an upsurge in equity flows.

6. RBI is likely to maintain the repo rate at current levels throughout 2023, assuming inflation evolves along expected lines. The underlying inflation momentum is subsiding. We expect inflation to average around 5% in FY24. However, the emergence of El Niño introduces potential upside risks to this forecast.

Read the entire report here.

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