SBICAPS Report - "EcoCapsule"- Rising Domestic Tides amid Global Economic Rebound and Policy Conundrums
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
MANUFACTURING FERVOUR ACCOMPANIES SERVICES’ EXUBERANCE
Positive surprise in manufacturing in Q3FY24 GVA likely continued in Q4FY24 as indicators show buoyancy
• Manufacturing PMI showed its highest reading in 16 years on the back of expansion in new orders due to demand pick-up and steep rise in investment goods.
• Eight Core index showed impressive growth in 11MFY24 (7.7% y/y), with activity strongest in electricity and infra-forward sectors
• India remains a net importer of steel in 11MFY24, despite exports surging in Feb’24. India is expected to record much better demand in CY24 vs. the world
• IIP growth picked up in 10MFY24, driven by infrastructure and capital goods, as non-core sectors slightly lag. A pick-up from these could be seen soon as their financials have improved soundly.
Services activity is strong, translation into consumption GDP awaited
• Services activity displayed uptick in momentum with healthy demand conditions and efficiency gains driven by financial services industries.
• PV sales are up 10% y/y in 11MFY24, with buoyancy in 3W. 2W sales also show a decent increase, belying narratives of rural distress
• Power consumption grew by a modest 1.4% y/y to 129.9 bn units in Mar’24, as pleasant weather across the country warranted lower use of heating equipment.
• Renaissance in steel and thermal power sectors is a driver of railway freight loading, offset by sharp decline in foodgrains, leading to 4% y/y rise in 11MFY24 • UPI transactions value saw a huge upsurge, and growth remained above 40% y/y in every month of FY24
