Macro Wrap

India Inc: India's June industrial production grew less than expected by 1.5% yoy (Bloomberg consensus: 2.2%) Vs. 1.9% in May, which was revised upwards from 1.2% initially. This marked the weakest pace of expansion since August 2024. While manufacturing output remained firm, mining and electricity were the main laggards, Manufacturing production rose 3.9% vs 3.2% in May, growth was broad-based within manufacturing. the industrial output was dragged by slow growth in capital good production at 3.5% vs 13.3% previously, its weakest in eight months. Mining also contracted 8.7% vs -0.1% in May, while electricity production declined 2.6% vs -4.7% in May. The stronger monsoon season disrupted mining activity and weighed on electricity demand. Sentimentally negative for Indian rupee