Panorama – November 2023

Panorama November 2023 edition is out now!

Panorama is a meticulously crafted report that offers a comprehensive view of the macro factors and market trends shaping the economic landscape of India.

Here are the key insights from the report:

  1. Small-cap funds experienced the highest inflows during Apr-Oct’2023, whereas large-cap funds faced significant outflows. Small-cap funds have also observed a significant uptick in the number of folios and Assets Under Management (AUM) over the past year. However, the share of small-cap funds in total equity inflows has decreased in recent months due to stretched valuations.
  2. Investors are opting to keep their funds invested for longer periods rather than frequently churning their portfolios. The preference for Systematic Investment Plans (SIP) has also significantly increased.
  3. The unemployment rate has decreased across both rural and urban regions as well as across various education levels. However, the quality of job gains has been poor, marked by an increase in the informal sector. The rise in the share of the Agriculture and Construction sectors in total employment also suggests a low quality of job creation.
  4. There has been a notable improvement in female labour force participation, particularly in rural areas. However, the employment gains are driven by low-quality jobs.
  5. The increase in Term Deposit (TD) rates has led to a decrease in the spread between lending and deposit rates. The declining CASA ratio is also increasing the cost of deposits, due to a higher percentage of high-cost Term Deposits (TDs) in liabilities. Consequently, the net interest margins for the banking sector have compressed.
  6. Credit growth remains robust and deposit growth has also rebounded, narrowing the gap between the two. Banks are reporting near-record profits, driven by strong credit growth and a decline in provisions.

Click here to read the full report.

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