DSP Mutual fund’s monthly report is always full of interesting charts and insights.
Here are some of the highlights :
Infrastructure spending is on the RISE
Corporate India has de-levered
Record profitability in FY22 and the paring down of corporate debt have improved the financial health of corporate India. The Net Debt to EBITDA levels have halved from pre-covid levels & Net debt levels have fallen to a 6 year low.
India’s External Situation Likely To Normalize in FY24
A combination of a normalizing import bill and steady growth in service exports is likely to take pressure off India’s current account. This is likely to benefit the Rupee in FY24 and give the RBI more options in managing India’s external situation and FX policy.
US Crude oil Inventory is rebuilding
Auto Sales In The Two Largest Markets Are Stagnant
Oil & Gas Capex Is Back
The massive rally in Oil in 2022 and super-normal profitability has finally caused Oil & Gas majors to spend. Upstream CAPEX rises to 8 year high. More Capex means more supplies in the future which will help tame the prices.