ADVERTISEMENT

ICICI Securities: India’s Financial Conditions Continue Tightening; Fall Below March Levels 

ICICI Securities: India’s Financial Conditions Continue Tightening; Fall Below Mar Levels

A person  holds a  one hundred rupee note at a market stall in Mumbai. (Dhiraj Singh/Bloomberg)
A person holds a one hundred rupee note at a market stall in Mumbai. (Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Our proprietary Financial Conditions Index shows that financial conditions deteriorated to a seven-month low in September 2020.

While financial conditions eased dramatically during April-June following large stimulus and liquidity infusion by the government and central bank, they started moderating from the beginning of Q2 FY21.

In September 2020, main reasons for worsening financial conditions were rise in domestic bond yields across the curve, lower surplus liquidity in the banking system, falling non-food bank credit and rise in rupee forward premia.

Our calculation shows that Financial Conditions Index fell to 9.4 in September 2020 from 9.8 in August 2020.

Click on the attachment to read the full report:

ICICI Securities Financial Conditions Index Oct20.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.