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Author: Vivriti Asset Management

  • June 7, 2024
  • Vivriti Asset Management

The Month That Was – Macroeconomic takeaways from the month of May 2024

Domestic Economic Updates India’s real GDP growth was recorded at 7.8% YoY in the March 2024 quarter, which translated into a growth of 8.2% for FY24 which exceeded the central government's second advance estimate of 7.6% for the year. The key drivers of growth are private consumption and investment. The growth in the primary sector [...]

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  • May 6, 2024
  • Vivriti Asset Management

The Month That Was – Macroeconomic takeaways from the month of April 2024

Domestic Economic Updates The Reserve Bank of India in the first Monetary Policy Committee (MPC) meeting of FY2024-25 kept the repo rate unchanged at 6.5%. It was the 7th consecutive time the key policy rate has been kept at the same level. The 6-member committee also maintained the policy stance at ‘withdrawal of accommodation’. FY25 [...]

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  • April 5, 2024
  • Vivriti Asset Management

The Month That Was – Macroeconomic takeaways from the month of March 2024

Domestic Economic Updates Purchasing Managers' Index (PMI) readings: India’s manufacturing sector activity grew at the fastest pace in 5 months as reflected in the HSBC India Manufacturing PMI reading. The index rose to 56.9 in February (revised upwards) from 56.5 in January driven by a rise in factory production and sales. Meanwhile, India’s services sector [...]

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  • March 8, 2024
  • Vivriti Asset Management

The Month That Was – Macroeconomic takeaways from the month of February 2024

Global Economic Updates  Central bank policy actions The Federal Open Market Committee (FOMC) kept the benchmark interest rates unchanged at 5.25%-5.50% for the 4th consecutive time as expected by the Street. Since March 2022, the US Federal Reserve hiked rates 11 times to combat inflation. As per the previous FOMC meeting, rate cuts are likely [...]

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  • February 5, 2024
  • Vivriti Asset Management

The Month That Was – Macroeconomic takeaways from the month of January 2024

Global Economic Updates Central bank policy actions The People’s Bank of China kept the benchmark lending rates unchanged for the 5th consecutive month in their recent statement. The 1-year loan prime rate (LPR) remained steady at 3.45% while the 5-year LPR is held at 4.2%. The LPRs are based on an average of the lending [...]

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  • January 10, 2024
  • Vivriti Asset Management

The Month That Was – Macroeconomic takeaways from the month of December 2023

Global Economic Updates Central bank policy actions The US Federal Open Market Committee (FOMC) unanimously kept the federal funds rate steady at the 22-year high target range of 5.25%-5.5% for the third time in a row. However, the median projection for interest rates at the end of 2024 has been reduced to 4.5% and 4.75%, [...]

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  • December 14, 2023
  • Vivriti Asset Management

US Fed keeps rates steady for the third time, indicates rate cuts in 2024

The 19-member US Federal Open Market Committee (FOMC) unanimously kept the federal funds rate steady at the 22-year high target range of 5.25%-5.5% for the third time in a row after following a spate of 11 rate hikes since March 2022 (including four in 2023) to combat inflation. “Inflation has eased from its highs, and [...]

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  • November 30, 2023
  • Vivriti Asset Management

The Month That Was – Macroeconomic takeaways from the month of November 2023

Global Economic Updates  Central bank policy actions The US Federal Open Market Committee unanimously held on to the 22-year high federal funds rate in a target range of 5.25%-5.5% for the second time in a row after following a spate of 11 rate hikes since March 2022 (including four in 2023) to combat inflation. This [...]

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  • November 1, 2023
  • Vivriti Asset Management

The Month That Was – Macroeconomic takeaways from the month of October 2023

Global Economic Updates  Central bank policy actions The Bank of Canada kept the key rates unchanged – the overnight rate at 5%, the Bank Rate at 5.25%, and the deposit rate at 5%, while continuing with its policy of quantitative tightening. The bank noted the slowdown in the global economy and stated a moderation in [...]

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  • October 19, 2023
  • Vivriti Asset Management

Tracing ‘Beyond Inclusion’ – our Sustainability Report for FY22-23

Sustainability Reporting: Need of the hour There’s always an element of uncertainty attached to the global economic, social, and environmental landscape. The uncertainty levels heighten due to disruptive events like climate-related disasters and pandemics among others. Upon closer observation, major global disruptions and imbalances are impending, sprouting from extended human negligence of sustainability issues (environmental, [...]

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  • October 3, 2023
  • Vivriti Asset Management

US Fed Meeting and Takeaways from other macroeconomic events in September 2023

The US Federal Reserve kept its key interest rates unchanged at 5.25-5.5% in a unanimous decision by the Federal Open Market Committee (FOMC). This happened after the committee took the benchmark rate to a 22-year high at their July meeting with a 25 basis points (bps) hike. The key rate set at the meeting determines [...]

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  • August 14, 2023
  • Vivriti Asset Management

RBI maintains the status quo, MPC decided to remain watchful (A short note)

RBI's Monetary Policy Committee (MPC) continued with its pause on the hike in repo rate — the rate at which the central bank lends short-term funds to commercial banks — for the third time in a row in a unanimous vote. RBI hit the brake on the rate hike cycle in April this year after [...]

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  • August 9, 2023
  • Vivriti Asset Management

Credit profiles of fertilizer manufacturers to remain stable with easing working capital burden and stable profitability levels

Fertilizer is an essential part of the agriculture value chain and plays a key role in enhancing farm output. India is the second largest consumer of fertilizers globally, after China, with annual consumption of around 63.5 million metric tonnes in fiscal 2023. Given the criticality of the sector to India’s overall agricultural production, the fertilizers [...]

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  • August 3, 2023
  • Vivriti Asset Management

Why mid-market enterprises explore the AIF route for capital raising

The credit landscape in India has increasingly turned congenial towards growth in private credit. In 2022, private credit transactions in the country stood at over US$5 billion (excluding venture debt, debt funding in financial services players and offshore bond raises), as per a report by Ernst & Young. In the overall private credit space, global [...]

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  • June 26, 2023
  • Vivriti Asset Management

El Nino impact on Indian Economy

What is El Nino? El Nino is a climatic condition which results in warming of surface water in the equatorial Pacific Ocean suppressing monsoon rainfall in India. It impacts monsoons and consequently agricultural output, which in turn bears on inflation and economy. Under normal conditions over Pacific Ocean, trade winds blow west along the equator, [...]

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  • June 9, 2023
  • Vivriti Asset Management

RBI MPC announces the second consecutive pause in rate hikes, what’s next? (A short note)

In a unanimous vote, RBI's Monetary Policy Committee (MPC) hit the pause button for the second consecutive time in raising the repo rate — the rate at which the central bank lends short-term funds to commercial banks. While doing so, RBI retained the policy stance as “withdrawal of accommodation”, implying it could consider further hike [...]

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  • June 6, 2023
  • Vivriti Asset Management

Road asset monetization/ refinancing requirements to see a spurt in the near term

Road assets account for ~27% of national monetisation pipeline (NMP) drafted by NITI Aayog. Under NMP, 26,700 km of road assets valued at INR 1.6 lakh crore were to be monetised over a 4 year period (FY22-FY25). Till Mar’23, only ~14% (by value) of the targeted assets have been monetised, as against plan of ~39%, [...]

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  • April 28, 2023
  • Vivriti Asset Management

India’s Healthcare Sector: Opportunities and the Need for Alternative Financing

The public and private spending on healthcare delivery around the world have been rising rapidly keeping pace with the growth in economies. The working pattern of the global population has turned more sedentary especially after the pandemic. This is giving rise to the incidence of more lifestyle-led chronic diseases causing an accelerated growth in demand [...]

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  • February 16, 2023
  • Vivriti Asset Management

A Note on the recent SEBI Consultation Papers for Alternative Investment Funds (AIFs)

On Feb 3, 2022, the Securities and Exchange Board of India (SEBI) came up with five consultation papers proposing changes in regulatory norms for AIFs. SEBI releases consultation papers on regulatory norms from time to time on different aspects of the capital market to seek inputs/ suggestions from all stakeholders on their proposals. The consultation [...]

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  • February 13, 2023
  • Vivriti Asset Management

Union Budget and RBI MPC – A roundup of the two key events

The last one week has been extraordinary for the Indian economy and capital markets as they were moved by the Union Budget on Feb 1 and RBI Monetary Policy Committee (MPC) Meeting on Feb 8. Let us look at each of them. Union Budget FY24 The Union Budget for FY24 was no doubt a balancing [...]

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  • February 6, 2023
  • Vivriti Asset Management

Macroeconomic tailwinds to propel growth in private credit investment and AIFs

The supply of credit remains an undeniable catalyst for the growth of the Indian economy. In its journey to becoming a US$5 trillion economy, India requires a credit supply that amounts to ~50% of that targeted economy size. Meeting that supply size could be a daunting task unless private credit markets mature in India. This [...]

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