The demand indicators are resilient. While the narrative of slowdown continues to pick pace, hard data does not show visible signs yet

Inflation eased marginally in February but remains sticky owing to cereal prices and services inflation. Inflation is overshooting RBI’s expectations for Q4FY23 but should the MPC wait for trickle down to happen?

Manufacturing PMI remains in expansionary zone. Wholesale Prices have considerably eased across all groups

Services PMI shows record strength. All other services indicators remain strong. There’s, however, some slowdown in e-toll collections. Air/Rail passenger traffic remains strong

G-Sec 10-year yields continue to be sticky. Fed’s policy this week will act as an indicator for RBI’s policy later this month. We prescribe RBI should take a pause hereon to protect growth

FY23 fiscal numbers are progressing in line with expectations. Any surprises are unlikely. Slight moderation in GST is in line with seasonality trends

External headwinds have mildly eased as crude prices fell. Trade deficit is now close to previous years’ averages. The currency is yet to reflect improvement in external situation

India saw FII outflows in Equity but some minor inflows in debt. External Commercial Borrowings have fallen but bank credit remains strong, driving the overall credit.