Monthly Presentation Oct 2018

Key Events – September 2018
• Indian equities saw a weak month in September (-6.4%) in the backdrop of worries around liquidity tightness in the credit
markets, negative news flow in the financials space, construction ban early in the month, continued macro pressures and
rupee depreciation.
• The fiscal deficit for the five-month period between April and August stood at Rs 5.91 lakh crore reaching 94.7 % of the FY 19
target. Fiscal deficit had hit 96.1% of the budgeted target till August for FY18.
• July IIP grew at 6.6% vs 7% contraction in June. Manufacturing output recorded 7% growth in July vs 0.1% contraction in
June as Consumer Durables saw impressive growth of 14.4% while Capital Goods production expanded by 3%. 22 out of 23
industry groups in the manufacturing sector were in the positive
• Aug trade deficit moderated to $17.4bn with export growth improving 19.2% YoY led by engg goods, gems, jewellery,
petroleum and pharma. Imports growth decelerated marginally in Aug especially on non-oil non-gold.
• U.S. imposed 10% tariffs on about $200 billion worth of Chinese imports. The rate will increase to 25% from next year.
• The U.S. Federal Reserve raised the target range for the federal funds rate by 25bps to 2 % to 2.25 % during its September
2018 meeting.
• IMD had forecasted normal monsoon at start of the year which has fallen short by 9% with uneven geographical
distribution. Out of 36 meteorological sub-divisions, 11 witnessed a shortfall of 20%. 84