Health of Wealth – May 2024

01 July, 2024 0 Comments

            Health of Wealth – May 2024

Portfolio Impact Assessment

May 2024

Positive Negative Neutral

Inflation (CPI - India) Inflation decreased to 4.75% in May, 2024 from 4.83% reached in April 2024.
Brent Crude Brent crude price decreased by 5.28% In May 2024.

Currency USD/INR

Rupee appreciated by 0.03% in May, 2024
FII Inflows FIIs were Net-sellers of Indian equities to the tune of Rs.25,586 Cr in May, 2024
DII Inflows DIIs poured Rs.55,733.04 Cr worth of Indian equities in May, 2024
G-Sec Yield Yield slightly decreased to 6.986% in May, 2024 end from 7.195% in Apr, 2024.
Global - Inflation US inflation has slightly decreased to 3.3% in May 2024 from 3.4% in Apr 2024
Valuations-PE It stood at 21.4 times in May 2024, -31.64% below Oct, 2021 peak.
Valuations-PB It stood at 3.95 times in May 2024, -17.22% below Oct, 2021 peak.

High Risk Moderate Risk Low Risk

Rising Oil prices & Commodity inflation
Geopolitical tension
FII's being a Net-Seller
US FED - Tightening
US FED - Interest rate hike
RBI-Sucking out liquidity
Current Valuations current valuation

5 Things That Will Impact The Health Of Your Wealth



1. Robust Economic Growth for India in FY24

India’s GDP beats all estimates for FY24, grew at 8.2% in FY 24 and 7.8% in Q4.


India’s gross domestic product (GDP) grew at 8.2% for the fiscal year 2023-24, and at 7.8% in the Q4 (Jan -Mar).

RBI had estimated growth rate of 7.6% for the fiscal year 2023-24 and 7% for January to March Quarter.

In the meantime, In this January-March quarter, Real GVA growth stands at 6.3% and at 7.2% for fiscal year 2023-24 over 6.7 % in 2022-23. The manufacturing sector has been a key driver of this growth, 9.9% (YoY) in 2023-24, as against -2.2% growth in the previous fiscal year.

The Real GDP has surged to Rs 173.82 lakh crore in 2023-24, up from Rs 160.71 lakh crore in the prior fiscal year, representing an 8.2% growth rate.

These numbers indicate the economy’s ability to withstand and maintain steady growth amidst global uncertainties and obstacles, with this strong GDP growth, India continues to be the fastest growing major economy in the world.

2. India's credit rating receives long-awaited boost

India gets an upgrade in the rating by S&P from ‘stable’ to ‘positive’ after 14 years.


India's credit rating receives long-awaited boost. S&P Global has upgraded India’s rating from ‘stable’ to ‘positive’ after 14 years.

A 14-year gap between upgrades signifies India’s substantial progress in its economic and financial landscape. The shift from a ‘stable’ to a ‘positive’ outlook indicates growing optimism about India's economic prospects.

S&P Global predicts that India's economy will grow by 6.8% in 2025, 6.9% in 2026, and 7.0% in 2027 driven by strong consumer spending and increased public investment.

Currently, India is rated as BBB-, which is at the lowest end of the investment grade ratings.

However, an upgrade in India's rating by S&P signifies improving economic conditions and greater confidence in the country's financial stability. It can potentially attract more investments and positively impact on the overall economic outlook.

3. Phenomenal 141% Surge in Net Income of RBI for the FY 24

Enabling to approve Rs 2.11 lakh crore dividend payout to Government for FY 24.


The Reserve Bank of India (RBI) reported a massive 141% surge in its net income for the financial year 2024 (FY24), driven by a decline in expenditures, particularly lower provisions as well as exceptional earnings from global securities and deposits. Here’s the breakdown.

Total Income: Rs. 275,572 Crore, comprising Rs. 188,606 Crore from interest income and Rs. 89,967 Crore from other income.

Interest Income Breakdown: Of the Rs. 188,606 Crore:

  • Rs. 85,428 Crore from domestic sources, mainly from rupee securities and loans.
  • Rs. 103,178 Crore from foreign sources.

Other Income Breakdown: The Rs. 89,967 Crore in other income is primarily from exchange gains on forex transactions. This income is generated by the RBI's strategy of selling dollars to prevent sharp appreciation, resulting in a profit of Rs. 83,616 Crore from these activities in FY24.

The rise in the Net income enabled the RBI to approve a record dividend of Rs2.11 lakh crore (record high surplus) to the government.

This massive dividend payout is expected to help the Govt. achieve its fiscal deficit target of 5.1% of gross domestic product (GDP) for FY25.

Overall, the remarkable surge in the central bank's net income, coupled with its record dividend payout, serves as a testament to the robust financial health of the RBI.

4. Earnings Review of Nifty 50 companies in FY 2024

Robust corporate earnings in FY 2024.


The aggregated NIFTY 50 companies’ PAT for FY 2024 stands at 8.13 Lakh crores as against 6.42 Lakh crores from the previous fiscal year, an impressive growth of 27%.

Out of 50 companies, 49 reported profits. Tata Steel reported a loss for the FY 24. Out of 50 Nifty companies, 4 reported PAT greater than 50,000 crores with 2 Banks (SBI & HDFC).
Domestic cyclicals, such as Autos and Financials, along with Healthcare, Capital Goods, and Cement are the key drivers. Conversely, global cyclicals (Metals and O&G) dragged down overall profitability.

Overall, theFY24 corporate earnings ended positively with widespread outperformance across aggregates driven by margin tailwinds. 

5. What's Ahead: Market Outlook Post-Election Results

Market favors Continuity – Sensex trading at all-time high.


The current Prime Minister has secured a third consecutive term in office, leading the newly formed government. Alongside, major ministries have been retained by ministers from the previous term. Government continuity has reduced market uncertainty, with the Sensex trading at 76-77k levels.

Markets are likely to remain volatile until the upcoming budget session. Stability could be maintained if corporate results meet expectations.
However, caution is advised due to high Market Cap/GDP ratio (at a 15-year high ~ 140%), especially in mid and small cap stocks, and a flood of new IPOs indicating potential risks.

Hence, allocate funds to equities that are not needed for at least 5 years. In these euphoric times, proceed cautiously with investments, continuing with disciplined, systematic investments.



What you should do. And should not.

Remain invested in equity in this current volatile market scenario.

Continue your investment
systematically in the way of SIP & STP.

There are opportunities in long-term debt, lock the fund for regular inflow.

Consider creating cash from mid & small cap equity for short-term requirements.


Please remember investing is mostly backing quality businesses run by quality managements that offer a runway for strong cash flow growth, earnings potential, and long-term prospects. Buying them at a “reasonable” price with an eye on the returns is important. Stay invested, stay disciplined and secure your returns. We have prepared a sound long term holistic financial plan for you based on your risk profile, defined your financial goals along with you… did an asset allocation (with contingency plans built in) with you. We believe we are in the best objective position to help navigate the vagaries of the market.

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  • The securities quoted are for illustration only and are not recommendatory.
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