Panorama November 2024 edition is out now!

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

Here are the key insights from the report:

1. In October 2024, Indian equity markets experienced record Foreign Portfolio Investor (FPI) outflows amounting to US$11 billion. Financial services, oil & gas, and consumer sectors witness significant FPI outflows. However, these outflows were offset by a record Domestic Institutional Investor (DII) buying worth US$12 billion in October.
2. Equity mutual funds held Rs 1.8 trillion in cash (~6% of GDP) as of October 2024, with flexi-cap, sector/thematic, and small-cap funds holding the highest amounts of cash. Cash holdings saw a marginal dip in October 2024 as mutual funds deployed capital during the market correction.
3. Equity mutual fund inflows surged in FY25 (up to October 2024), driven by sectoral/thematic fund New Fund Offers (NFOs). Sector and thematic funds contributed approximately 87% of the total capital raised through NFOs in FYTD25.
4. The Trump administration is expected to pursue pro-growth policies, such as corporate tax cuts, higher fiscal spending, and incentives for the onshoring of manufacturing activity. However, these policies could also slow down the disinflation process in the US.
5. Treasury yields have hardened, and the USD has strengthened as markets have notably reduced expectations for the pace of monetary policy easing by the Federal Reserve. The degree of additional repricing in the Fed rate cut cycle will determine further increases in yields and the strength of the USD.
6. Central bank demand, the unpredictable policy environment, and the increase in US debt under Trump 2.0 will be positive for gold. Trump’s emphasis on fracking and boosting US oil production should help keep oil prices stable. Global defence spending is expected to rise significantly as NATO members aim to meet the target of 2% of GDP.
7. Trump’s tax cuts and pro-growth policies are anticipated to boost US corporate earnings and drive higher IT spending, benefiting Indian IT companies. Trump’s foreign trade policies, such as imposing higher taxes on Chinese imports, may support the China+1 strategy and potentially benefit India.

Click here to read the full report