India Market Monitor Q2 2024 – Investments

India's gross domestic product (GDP) continues to exhibit resilience, characterised by steady progress in recent quarters. The government has revised the full-year real GDP growth estimate for FY 2023-24 upwards to 8.2%. Similarly, the Reserve Bank of India (RBI) has raised the real GDP forecast for FY 2024-25 to 7.2% from an earlier estimate of 7%, citing improving rural and urban demand buoyed by favourable monsoon forecasts, an uptick in services and the government’s capex thrust.

Significant growth in the manufacturing and mining sectors has also driven the country’s real gross value added (GVA) for FY 2023-24 to 7.2%, compared to 6.7% in FY 2022-23. However, persistent food price pressures may necessitate a postponement of the central bank’s anticipated rate-cutting cycle until later in the year.

With this backdrop, here is a review of the key capital market trends witnessed in Q2 2024:

- Investments: Investment activity witnessed an upswing in the first half of 2024; sustained capital inflows are expected in both traditional and emerging sectors during the year. Institutional investors were notably active in Q2 2024, dominating the capital flows.

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