Various institutions or agencies disclose vital economic statistics at the start of each month that shows how our entire economy is performing. By analyzing these data sets, we may make better judgments and become more knowledgeable stock market participants. We’ll go through some of the key metrics you may track and analyze every month in this article.
1. Purchasing Managers Index
A country’s industrial activity is measured by the PMI. It allows us a sneak peek into production operations before the official industrial data is issued. IHS Markit chooses buying managers and business leaders from individual firms to answer a set of questions on company, employment, and inventory in order to generate the index.
A scale ranging from 0 to 100 is calculated based on their responses. Both the manufacturing and service sectors are included in the PMI calculation. Analysis: A PMI above 50 indicates that the related industry is expanding. When the PMI figure is higher than the previous month’s, it indicates that the economy is improving. A PMI below 50 indicates that the related sector is contracting.
Released by: IHS Markit India
Released on: The first week of every month.
2. The Wholesale Pricing Index
The Wholesale Pricing Index (WPI) tracks price fluctuations for items sold and exchanged in bulk by wholesalers to other firms. WPI is a measure of the country’s wholesale pricing fluctuations in simple words. It solely includes the costs of commodities and excludes any costs associated with services.
Analysis: If the index continues to rise month after month, it indicates that wholesale prices are increasing. This might result in higher input costs for industrial enterprises, reducing profit margins.
Released by: Ministry of Commerce and Industry
Released on: 14th of every month.
3. Consumer Price Index
WPI keeps track of product prices all the way to the factory door. The Consumer Price Index (CPI), on the other hand, tracks changes in the retail price of broad goods and services. These are items that our Indian homes purchase on a regular basis. The CPI is also useful for determining the real worth of wages, salaries, and pensions, as well as a country’s currency’s buying power.
Analysis: CPI is a measure of inflation in the economy. A rise in the CPI shows that the cost of basic retail products is rising. The Consumer Price Index (CPI) is now used by the Reserve Bank of India (RBI) to determine monetary and credit policy.
Released by: Ministry of Statistics and Program Implementation
Released on: 17th of every month
4. Auto Sales
Every manufacturer with a presence in India is required to submit monthly sales numbers.
Analysis: To assess vehicle demand, we may compare sales numbers from the preceding month as well as year-over-year (YoY) data. We might consider it a bearish phase for vehicle makers and auto auxiliary companies if overall sales have decreased significantly, as their operations have declined.
Released by: Every Automobile manufacturer in India
Released on: 1st of every month
5. Telecom Subscription
TRAI publishes subscription reports of India’s main telecom carriers at the end of each month. The study contains information on several aspects of telecom consumers. The data given by TRAI, however, is two months old.
Analysis: We may look at the subscriber increase of telecom firms like Reliance Jio, Airtel, and Vodafone Idea as stock market participants. We may evaluate a company’s success based on the tariff rates it offers. On the other hand, if a telecom business continues to lose subscribers, the situation becomes catastrophic. Don’t forget to check out telcos’ Average Revenue Per User (ARPU). It is always good to enhance ARPU.
Released by: TRAI
Released on Towards the end of every month.
6. Power Consumption
PSOC issues reports on total energy consumption, power generating installed capacity, and distribution. The data given by PSOC, however, is one month behind.
Increased power demand and consumption might lead to a boom in energy-related equities.
Released by: PSOC
Released on: The Last week of Every Month
7. Commodity Prices
On a variety of commodities, the MCX offers tradable futures and options contracts. We may follow the future values of commodities such as gold, silver, copper, aluminum, crude oil, natural gas, and other commodities like stock market players.
Analysis: Because main commodities are utilized as inputs by numerous firms, changes in commodity prices can have a significant impact on their costs. Paint and glue makers, for example, use crude oil as a raw material. The spike in crude oil prices may have an impact on these companies’ profit margins.
Released by: Multi Commodity Exchange of India
8. Foreign Exchange Rate
On a daily basis, the Reserve Bank of India (RBI) publishes the rate of the Indian Rupee (INR) against international currencies (mostly the US Dollar). Analysis: At the start of each month, we can see if the INR has strengthened or weakened. Exporting enterprises (especially IT players) will benefit if the Indian Rupee weakens month after month, since they will be able to make more money. When the rupee strengthens, firms who import raw resources (crude oil, metals, and minerals) need to exchange fewer currencies than in the previous month, lowering their costs.
Released by: RBI
9. Insurance Premium Collection
Life and general insurance businesses charge a premium to their customers in order to cover the corresponding portion. IRDAI distributes data on how much each insurance firm gets in gross premiums once a month. We may examine the performance of publicly traded insurance companies. We may compare the data from IRDAI to that of the previous month and the preceding year. An increase in overall premium collection might cause insurance stocks to rise.
Released by: Insurance Regulatory and Development Authority of India (IRDAI)
Released within the second week of every month.
10. Goods & Services Tax Collection Report
Taxes are levied on products and services sold in India by both the central and state governments. There is a Central GST (CGST) as well as a State GST (SGST). The ministry releases the aggregate and state-by-state GST collection data at the start of each month.
Analysis: By comparing the GST collection numbers to those from past months, we can get a sense of how the general economy is doing. Increased GST revenue indicates that customers are spending more money, which benefits the economy and connected businesses.
Released by: Ministry of Finance
Released on: The Starting of Every Month
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