● GST Collections: Gross Goods and Services Tax (GST) revenue collected for February 2024 is robust at Rs1.69 tn, marking a robust 12.5% increase compared to that in the same month in 2023. This growth was is driven strong domestic activities as GST from domestic transactions grew 13.9% and GST from import of goods grew by mere 8.5%.

● Capex spurt shines in GDP beat: GDP growth for 3QFY24 at 8.4% YoY was at a 6-qtr high. The strong GDP growth of 8.2% YoY in 9mFY24 was driven by capex growth of 10.2%. Construction was the fastestgrowing component, rising at 10.4% in the 9mFY24 period, corresponding well with the capex jump. Govt. projects FY24 Capex (GFCF, nominal) as % of GDP to rise to an 11-year high of 31.3%.

● Consumption, agri trends weak: GDP data also confirms the weak trends in consumption and rural economy. Agri GVA was -0.8% YoY, the first decline in 19 qtrs, and reflecting the impact of a deficient monsoon on summer harvest. Consumption growth (PFCE) inched up by 1.1ppt QoQ but was at a still tepid 3.5% pace in 3QFY24. As the Capex share in the economy is rising, consumption is declining and at 60.3%, would be at a 5-yr low in FY24E.

● Outlook: A healthy domestic macro and micro environment, global interest rates at its peak and expectation of rate cuts, strong GDP data, strong capex cycle driven by construction activities would continue to keep market sentiments positive. However, ongoing consumption slowdown, weakness in rural markets, fluctuating FII flows and geopolitical uncertainties may keep the markets volatile in near term.