360 ONE Asset Research Hub

360 ONE Asset highlights a complex macroeconomic landscape in India, characterized by robust domestic momentum contrasted against volatile external capital flows. Positive indicators include declining unemployment rates and strong hiring activity within the insurance and BPO sectors, supported by a healthy 16% YoY increase in system credit growth driven by bank lending and gold loans. However, the firm notes significant challenges in external investment, as evidenced by muted net FDI resulting from high repatriation levels. Furthermore, foreign portfolio investors have exhibited a marked risk-off sentiment, executing substantial sell-offs in the IT and FMCG sectors. Collectively, these trends suggest that while India’s internal economic engine remains resilient, the institution remains cautious regarding the ongoing influence of global liquidity shifts on equity market stability.