EUR 120.00 For Business Accounts Only

MOSL: Morning India (28/March/19): 1. BRICS+ Economy (1QCY19: India vis-à-vis other emerging markets); 2. Annual India Ideation Conference 2019 (‘Management Says’)

MOrning India (28/March/19): 1. BRICS+ Economy (1QCY19: India vis-à-vis other emerging markets); 2. Annual India Ideation Conference 2019 (‘Management Says’)

 

Today’s top research theme

BRICS+ (Economy): 1QCY19 – India vis-à-vis other emerging markets

• After witnessing some stabilization in 4QCY18, emerging markets (EMs) started 2019 on a positive note with benchmark equity indices recouping losses in 1QCY19.
• The benchmark bond yield declined in most EMs; also, most EM currencies strengthened against the USD. On the macro front, inflation stayed in check and fiscal deficit narrowed in most EMs. The external sector, however, continues to be a worry as foreign trade witnessed a decline in the initial months of 2019; current account balances worsened in most.
• More importantly, the central banks in most EMs have not changed policy interest rates in 1Q2019. Out of our sample of 10 EMs, Reserve Bank of India (RBI) is the only bank, which has cut rates in 2019; no other EM Central Bank has reduced rates.

Piping hot news

Bank credit growth at 14.4 per cent, deposits 10 per cent

• Non-food credit grew 14.4% y-o-y during the fortnight to March 15, marginally slower than the 14.5% y-o-y growth in the previous fortnight. During the comparable fortnight a year ago, the non-food credit growth of the scheduled commercial banks (SCBs) stood at 11.36%, data from the RBI showed. Meanwhile, deposits in the banking system grew by 10% y-o-y during the fortnight ended March 15 — faster than the 9.8% y-o-y growth reported in the fortnight to March 1. Bank deposit growth in the fortnight ended February 15 was at 10.2%, the highest in at least one-and-a-half years, the data showed.