Manufacturing Sector: Machined for Growth
Dalal Street Investment Journal|January 16, 2023
Despite the worries revolving around the geopolitical conflicts and the threat of the re-emergence of the pandemic, Bhavya Rathod and Armaan Madhani elucidate how the Indian manufacturing sector is poised to take a big leap forward, propelled mainly by the government's initiatives and strategies like 'Make in India' the PLI scheme. This report highlights how this growth story will take shape
Manufacturing Sector: Machined for Growth

The year 2022 will be remembered primarily for the outperformance of banking stocks, which demonstrated their sheer strength, with PSU banks leading the rally. Nifty Bank index increased by more than 21 per cent, compared to a 4.5 per cent increase in Nifty index, with Nifty PSU Bank index increasing by more than 61 per cent. This massive rally in banking stocks is largely due to an increase in credit growth, which is at its highest level in over a decade - 15 per cent year on year.

Fuelled by robust credit demand in 2021-22 and so far in 2022-23, the consolidated balance-sheets of India's scheduled commercial banks (SCBs) registered double-digit growth in 2021-22 after a seven-year hiatus. This was led by credit growth, which accelerated to a ten-year high in the first half of this fiscal year ending March 2023. As for the manufacturing sector, the December manufacturing PMI pointed to robust growth in the health of the sector, which was the best since October 2020. Despite slowing growth in global economy coupled with higher inflation and economic uncertainty, the Indian economy remained resilient with manufacturers scaling up production at the end of 2022.

Slowly and steadily as the economy picked up pace in 2022, all critical pieces fell in the right place for banking sector which resulted in massive outperformance in banking stocks across the board. Now entering into 2023, a similar pattern seems to be emerging for the manufacturing sector. Let us delve deep to gain better understanding of recent trends emerging in the sector, growth drivers at play and a few key sectors that investors should focus in this year.

Overview of India's Manufacturing Sector

As per Indian Brand Equity Foundation (IBEF), India's gross domestic product (GDP) at current prices was USD 694.93 billion in the first quarter of FY22, as per provisional estimates.

Denne historien er fra January 16, 2023-utgaven av Dalal Street Investment Journal.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra January 16, 2023-utgaven av Dalal Street Investment Journal.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA DALAL STREET INVESTMENT JOURNALSe alt
How To Invest In An Ageing Bull Market
Dalal Street Investment Journal

How To Invest In An Ageing Bull Market

Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.

time-read
5 mins  |
July 29, 2024
Should You Entrust All Your Money To A Single AMC?
Dalal Street Investment Journal

Should You Entrust All Your Money To A Single AMC?

If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario

time-read
7 mins  |
July 29, 2024
Wild Swings Engulf Global Equities
Dalal Street Investment Journal

Wild Swings Engulf Global Equities

U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.

time-read
2 mins  |
July 29, 2024
U.S. Elections and China's Economy Hamper Commodities
Dalal Street Investment Journal

U.S. Elections and China's Economy Hamper Commodities

Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.

time-read
2 mins  |
July 29, 2024
Wealth Building For Retirement Through Mutual Funds
Dalal Street Investment Journal

Wealth Building For Retirement Through Mutual Funds

Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.

time-read
3 mins  |
July 29, 2024
Mastering Investment with Information Ratio
Dalal Street Investment Journal

Mastering Investment with Information Ratio

Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool

time-read
6 mins  |
July 29, 2024
Plan To Be Financially Independent
Dalal Street Investment Journal

Plan To Be Financially Independent

Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.

time-read
2 mins  |
July 29, 2024
❝Technology is the new game-changer"
Dalal Street Investment Journal

❝Technology is the new game-changer"

With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company

time-read
5 mins  |
July 29, 2024
What If Donald Trumps?
Dalal Street Investment Journal

What If Donald Trumps?

The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store

time-read
6 mins  |
July 29, 2024
Sectoral Gains Make A Mark
Dalal Street Investment Journal

Sectoral Gains Make A Mark

Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures

time-read
2 mins  |
July 29, 2024