- Average daily liquidity, which has been in deficit since Sep’23 , tightened further to INR 1.1 lakh crore in Dec’23 from INR 61,434 crore in Nov’23. Tight liquidity conditions are leading banks to raise funds through certificates of deposit. CD issuances in Dec’23 were the highest in the last eight months.
- Core inflation fell at a two-year low at 3.9% in Dec’23. Wholesale inflation inched slightly higher to 0.7% on-year in Dec’23 vs 0.3% in Nov’23.
- The pace of de-growth of non-oil and non-gold imports came down to 0.2% from 0.9% the previous month. Services trade balance grew moderately to USD 14.6 Bn on account of a sharper fall in services exports in Dec’23. Current account deficit for Q2FY24 narrowed to 1% of GDP from 1.1% the previous quarter and 3.8% in Q2FY23.
Overall industrial output growth fell sharply to 2.4% on-year in Nov’23 compared to 11.6% the previous month. This can be partly attributed to a high base of previous year.
TruQuest is knowledge series launched by TruBoard Partners providing succinct updates and views on:
- Liquidity outlook
- India’s macro economic view
- Trends within the infrastructure, Real Estate and Renewable Energy sectors
- Impact analysis of new regulations and policies on lending and capital flow
Disclaimer
The data and analysis covered in this report of TruQuest has been compiled by TruBoard Pvt Ltd and its associates (TruBoard) based upon information available to the public and sources believed to be reliable. Though utmost care has been taken to ensure its accuracy, no representation or warranty, express or implied is made that it is accurate or complete. TruBoard has reviewed the data, so far as it includes current or historical information which is believed to be reliable, although its accuracy and completeness cannot be guaranteed. Information in certain instances consists of compilations and/or estimates representing TruBoard’s opinion based on statistical procedures, as TruBoard deems appropriate. Sources of information are not always under the control of TruBoard. TruBoard accepts no liability and will not be liable for any loss of damage arising directly or indirectly (including special, incidental, consequential, punitive or exemplary) from use of this data, howsoever arising, and including any loss, damage or expense arising from, but not limited to any defect, error, imperfection, fault, mistake or inaccuracy with this document, its content.