Key Highlights
- Per the International Monetary Fund’s (IMF's) World Economic Outlook report, global growth expectation for 2024 and 2025 remains muted at 3.2%. Global headline inflation is expected to fall from an annual average of 6.7% in 2023 to 5.8% in 2024 and 4.3% in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies.
- Per a recent Moody's report, India’s real GDP expanded by 6.7% year over year in the second quarter of 2024. This was fueled by a resurgence in household consumption, increased investment, and solid manufacturing activity.
- Market capitalization in the automobile industry declined by 18% between Q3CY24 and Q4CY24. The sector experienced sluggish demand in the latter half of 2024 after two years of strong growth.
- Market capitalization in the electric and gas utilities industry declined by 19% from Q3CY24 to Q4CY24. Power demand in India is expected to grow at a CAGR of over 7%, an increase from the previous estimate of 5%.
- Market capitalization in the chemicals industry declined by 8% from Q3CY24 to Q4CY24. Persistent trade disruptions and geopolitical tensions are impacting supply chains and export momentum, leading analysts to predict muted growth for the sector despite resilient domestic demand.
- Market capitalization in the banking industry declined by 9% from Q3CY24 to Q4CY24. The Indian banking sector is witnessing a decline in the current account and savings account (CASA) ratio as customers shift their savings to higher-return investments like mutual funds, gold, equity, and SIPs. This trend is prompting banks to increase interest rates on fixed deposits and open new accounts to retain funds.
