MONEY THIS MONTH

India's retail inflation to remain above 5% till May: SBI Research Report

In May 2024, India's retail inflation, as gauged by the Consumer Price Index (CPI), is projected to remain slightly above 5% until May, before decreasing to approximately 3% by July, according to SBI Research. This trend indicates that inflation will stay below 5% from November onwards until the end of the financial year 2024-25. In February, retail inflation slightly decreased to 5.09% from 5.10% in January, largely due to a slowdown in price increases across most categories except food. Within the food sector, inflation for protein items such as meat and eggs surged significantly by 400-500 basis points compared to January. Additionally, vegetable prices saw a month-on-month increase of 300 basis points, reaching 30.2%. Meanwhile, the core CPI, which excludes food and energy prices, declined to 3.37%, marking a 52-month low and reaching levels last seen in October 2019.

GST collections rise 10% to 1.7 lakh crore in May

The Government reported a 10% rise in India's GST collections in May, reaching ₹1,72,739 crore, driven by stronger domestic consumption despite a 4.5% drop in imports. Consistently exceeding budget expectations, this growth has helped manage the fiscal deficit. Monthly data shows fluctuations, with a peak of ₹2,10,287 crore in April 2023, indicating a post-COVID economic stabilization. Deloitte India suggests this consistent GST performance could warrant a credit rating upgrade and underscores the need for continued reforms.

AC manufacturers clock two-fold jump in sales in May amid severe heatwave

In May, a scorching summer led to a nearly twofold increase in air-conditioner sales, driven by soaring temperatures and a surge in demand for energy-efficient models. Leading manufacturers faced challenges with installation delays and inventory replenishment. Temperatures exceeding 45 degrees Celsius, especially in the national capital, intensified the heatwave, fueling unprecedented demand for AC units. Companies like Voltas, LG, Daikin, Panasonic, and Blue Star reported strong sales, with expectations of 30 to 35 percent industry growth in 2024 compared to the previous year. Voltas experienced a significant surge in residential AC sales and aims to reach 2 million units within the first half of the year. LG Electronics India also noted exponential growth in room AC sales, surpassing records from the past five years.

Banks' loans rise 19.5% in two weeks to May 17, deposits up 13.3%: RBI

Indian banks' loans rose 19.5% in the two weeks to May 17 from a year earlier, while deposits rose 13.3%, the Reserve Bank of India's weekly statistical supplement showed on Friday.Outstanding loans fell Rs 23,207 crore ($2.78 billion) to Rs 166.09 trillion in the two weeks to May 17.Non-food credit fell 267.01 billion rupees to 165.67 trillion rupees, while food credit rose Rs 3,494 crore to Rs 41,273 crore.Bank deposits fell Rs 1.24 trillion to Rs 208.14 trillion in the two weeks to May 17

FPIs take out over Rs 25,586 cr from equities in May on poll jitters

Foreign investors pulled out a massive Rs 25,586 crore from Indian equities in May due to uncertainty surrounding the outcome of general election and outperformance of Chinese markets. This was way higher than a net outflow of over Rs 8,700 crore in April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February, while they took out Rs 25,743 crore in January, data with the depositories showed.

Domestic PV sales increase by 4% to 350,257 in May amid elections, heat

Domestic passenger vehicle (PV) wholesales in India increased by a modest 4.42 per cent year-on-year (Y-o-Y) to 350,257 units in May, with the elections and extreme heat during the summer season being major factors.``It has been very well discussed that this year, the growth would not be very high. It would be in single digits because the high base effect has come into play,” Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India Limited (MSIL), told reporters at a press conference. MSIL's domestic PV wholesales increased by 0.2 percent Y-o-Y to 144,002 units in May.