There is some normalisation visible in various consumption indicators, though it is far from being broad-based. Leading indicators such as consumer sentiment index continues to remain robust

Inflation surprised negatively in the January month as cereals price shot up in official data more than the market expected. Leading indicators still point to a downward trend in inflation

Manufacturing PMI eased a bit but remains in expansionary zone. Other industrial indicators such as eight core and IIP showed resilience

Services PMI marginally eased to 57.2,still showing significant strength. Services monthly export surplus is now averaging USD 11billion for FY23, a sizeable increase from pre-covid numbers

Gsec 10 year yield has been range bound, despite the union budget and RBI following Fed’s hawkish tone. We do not expect sizeable uptick in yields hereon

FY23 budget promised meeting of its headline fiscal deficit target, as was expected. FY24 budget appears to be one of credibility with enough fuel to support infrastructure driven growth

External headwinds have mildly eased as crude prices fell. Trade deficit eased as imports fell by ~USD 10 bn, owing to fall in crude bill as well as non-oil imports. Fundamental data points to likely currency appreciation

India saw outflows in equity from FIIs but small net inflows in debt. Domestic MF flows picked some pace while SIP book was resilient. FDI flows have been benign in last 3 months.