wealth - @betterkarts.investments

Rupee Slide: Winners, Losers, and What Lies Ahead for the Indian Economy

This week, the Indian rupee hit an all-time low of 86.65 against the US dollar, sending ripples across sectors in the financial markets. While some industries are reeling under pressure, others are thriving. Here’s what you need to know:

💥 Who’s Losing?
🔻 Manufacturing & import-dependent sectors: Rising input costs and high crude oil prices are squeezing margins.
🔻 Broader markets: The Nifty Commodities Index fell by 15% in 6 months, while the Nifty 50 declined by 5%.

💡 Who’s Winning?
🚀 Export-focused sectors like IT, pharma, and textiles are benefiting as a weaker rupee boosts their global competitiveness. The Nifty IT Index, for instance, surged 10%!

📊 Key Drivers Behind the Rupee’s Fall
1️⃣ A stronger US dollar and hawkish Fed policy.
2️⃣ High crude oil prices widening India’s trade deficit.
3️⃣ Foreign portfolio investor (FPI) outflows hitting equity markets hard.

🔑 Investor Strategies for Turbulent Times
✅ Diversify into export-oriented stocks (think IT & pharma).
✅ Steer clear of companies with high foreign debt.
✅ Focus on fixed-income instruments for stability.

⚠️ What Lies Ahead?
With inflation concerns mounting and the RBI’s policy decisions in the spotlight, the next six months will test the resilience of India’s economy. 🌐

Prudent investing and diversification are the way forward in these uncertain times.

The Indian rupee has been on a downward trajectory, hitting an all-time low of 86.65 against the US dollar earlier this week. Over the past six months, this decline has left its mark across sectors in India’s financial markets. While some indices have suffered, others have emerged as beneficiaries. Here, we analyze the broader implications of the rupee’s fall, its impact on various sectors, and what investors should focus on in the coming months.

HDFC Flexi Cap Fund – Insights

The HDFC Flexi Cap Fund, managed by HDFC Asset Management Company since 1995, stands out as a premier option for investors seeking long-term capital appreciation through a diversified equity portfolio. With a remarkable track record, the fund has demonstrated impressive performance across various investment horizons. For instance, an investment of ₹10,000 per month since inception would have grown to approximately ₹20.65 crore, highlighting the power of disciplined investing and compounding.

The fund’s dynamic investment strategy focuses on a mix of large-cap, mid-cap, and small-cap stocks, allowing it to capitalize on diverse market opportunities. With consistent returns—34.55% over the last year, 25.38% over three years, and 22.84% over five years—the HDFC Flexi Cap Fund has outperformed its benchmark, the NIFTY 500 Total Returns Index. This solid performance is a testament to the effective management and rigorous fundamental analysis employed by the fund’s team. For those looking to invest wisely, the HDFC Flexi Cap Fund offers a robust option for long-term growth.

View this post on Instagram

A post shared by Investor Education & Wealth Services (@betterkarts.investments)

GST Collections in November 2024: Mop-up Rises by 8.5% to ₹1.82 Lakh Crore

GST Mop-Up Rises 8.5% to ₹1.82 Lakh Crore in November

India’s Goods and Services Tax (GST) revenue surged by 8.5% in November 2024, reaching ₹1.82 lakh crore compared to ₹1.68 lakh crore in the same month last year. This marks a significant milestone in India’s financial landscape, showcasing steady economic recovery and robust domestic consumption.

Key highlights include:

Domestic GST collections rose by 10.3% year-on-year to ₹11.04 lakh crore.
Import GST collections saw a moderate growth of 5.9%.
Total GST refunds during April–November stood at ₹1.66 lakh crore, reflecting a 10.2% increase.
Central GST (CGST) grew by 12.2%, and State GST (SGST) increased by 12.6%.
Experts attribute the growth to increased domestic activity and a resilient economy, though global geopolitical factors and subdued import activity may temper future gains.

Stay updated with the latest economic insights and trends by following us.

Visit betterkarts.org for more financial tips, or reach out on WhatsApp at +918826553046 for free consultations!

India’s Goods and Services Tax (GST) revenue saw a significant rise in November 2024, with collections increasing by 8.5% year-on-year to reach ₹1.82 lakh crore. This growth marks a substantial improvement compared to the ₹1.68 lakh crore collected in November 2023, according to data released by the Finance Ministry.

Breakdown of Key Highlights

Robust Domestic Activity Boosts Collections
- GST collections from domestic activity grew by 10.3% year-on-year, totaling ₹11.04 lakh crore.
- However, the growth from imports was limited to 5.9%, indicating slower momentum in global trade and non-petroleum imports.
Refunds and Net Collections Show Positive Trends
- Total GST refunds issued during the April-November period amounted to ₹1.66 lakh crore, marking a growth of 10.2% compared to the same period last year.
- The cumulative GST mop-up for April-November 2024 reached ₹14.6 lakh crore, which is 9.3% higher than the corresponding period in FY24.
Segment-Wise Growth
- Central GST (CGST): Collections rose by 12.2% year-on-year.
- State GST (SGST): Witnessed an increase of 12.6%.
- Integrated GST (IGST): Growth was relatively modest at 5.5%.
Sectoral Indicators and Economic Implications
- According to tax experts, the domestic GST revenue growth of 10% aligns with rising domestic consumption and supports India’s GDP growth projections for FY25.
- Economic uncertainties and geopolitical tensions could potentially slow down GST growth in the coming months.

Market Conditions and Outlook

While November’s numbers indicate a healthy recovery, monthly-on-month collections have slightly declined from October’s ₹1.87 lakh crore, primarily due to a reduction in festive-season spending. Experts highlight that while consumption in rural India is stabilizing, urban consumption remains a critical driver of GST revenue growth.

Conclusion

The GST mop-up for November reflects strong domestic economic activity, despite slower import growth. With a year-to-date (YTD) GST growth of 9%, India is on track for robust fiscal performance, although certain macroeconomic factors could influence future collections.