ICICI Securities: India’s Financial Conditions Worsen To Five-Month Low In August 2020
An employee and a customer handle Indian Rupee banknotes (Photographer Prashanth Vishwanathan/Bloomberg)

ICICI Securities: India’s Financial Conditions Worsen To Five-Month Low In August 2020

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 (FCI) shows that financial conditions deteriorated to five-month low in August 2020.

While conditions in equity and money market improved moderately during the month, sharp deterioration of conditions in aggregate demand and debt market pulled FCI down.

FCI jumped to 9.6 in March 2020 (from 4.3 in February 2020) and averaged 11.1 during Q1 FY21 following aggressive monetary and fiscal easing to combat Covid-19.

However, it fell in August 2020 as concerns about high inflation and sharp contraction in growth pushed up bond yields. Also, non-food bank credit is estimated to have fallen to 40-month low.

Our calculation shows that Financial Conditions Index fell to 9.7 in August 2020 down from 10 in July 2020.

Click on the attachment to read the full report:

ICICI Securities Financial Conditions.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.

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