The Indian economy continues to grow steadily.

The Indian rupee has depreciated to around 83.3 rupees per US dollar, reaching an all-time low due to increased demand for dollars reflected in the DXY. Additionally, there has been increased capital outflow from India. Reports from the RBI indicate that foreign investors are divesting their assets in rupee-denominated holdings. Investors remain concerned about India's economy due to fluctuating oil prices, which have increased India's vulnerability, along with persistently high interest rates pressuring the economy.

India's economy expanded by 7.6% year-on-year in the third quarter, surpassing expectations of 6.8%. Key factors driving India's growth include a significant rise in manufacturing by 13.9% and a construction sector growth of 13.3%, indicating robust economic expansion. However, the agricultural sector expanded only by 1.2% due to widespread heavy rainfall across the country. On the expenditure side, government spending surged rapidly by 12.4%, primarily directed towards infrastructure development.

The Manufacturing Purchasing Managers' Index (PMI) increased to 56.0 in November from 55.5 in October, signifying continued factory activity expansion for the 29th consecutive month. This growth was bolstered by higher-than-expected production rates, growth in new orders, and increased exports for the 20th consecutive month. Moreover, continuous job creation offset minor increases in raw material costs.

The value of loans in India surged by 20.6% year-on-year, hitting an all-time high, indicating significant credit expansion that contributes to India's overall economy. This trend highlights increased household spending and the capacity of companies to expand operations within the country.

India's foreign exchange reserves continued to rise consistently to $597.94 billion after a significant decline in the previous quarter. Reports suggest that the RBI sold a substantial portion of foreign exchange reserves to support the rupee from depreciating excessively and address the liquidity crisis caused by reduced foreign capital, resulting in inflation due to increased imports of goods and services.

The yield on India's 10-year government bonds decreased to approximately 7.25% from its peak of 7.3%, influenced by continuous reductions in the United States' bond yields. Despite the decrease in inflation to 4.9%, the RBI signaled potential risks of inflation resurging, indicating the possibility of needing stricter monetary policies.

Techical analysis data (5H)

Resistance: 83.418, 83.454, 83.478

Support: 83.357, 83.332, 83.296

Source: Investing.com