? From Growth to IPOs: What’s Fueling D Street?

Hey there,

India’s growth story is back in the spotlight! While the Q1 (April-June) numbers might not have broken any records, don’t let that fool you—the momentum is definitely there. So, where exactly is this growth heading? And what key metrics should we be watching??

Let’s have a look into the latest trends and see what’s been making waves in the market.

India’s Growth Trajectory: Steady and Strong

Sure, the first quarter growth didn’t hit new highs, but the underlying momentum in India’s economy is strong and steady. A major highlight is the government’s flagship Jan Dhan scheme, which has crossed 53 crore accounts in just 10 years.?

The real story here is how rural and semi-urban areas have played a huge role in this success. With the JAM trinity (Jan Dhan, Aadhaar, Mobile) in full swing, we’re seeing a real shift towards financial inclusion, bringing more people into the economic fold and helping to reduce inequalities across the board.

SME IPOs: Can They Keep Up the Pace?

Meanwhile, over on D-Street, SME IPOs have been lighting up the market. They’ve been on fire this year with impressive oversubscription and listing gains. But here’s the million-dollar question—can they keep up this momentum? Well, the answer is - WE DON’T REALLY KNOW But hey, did you hear about that Delhi based IPO of the tiny two-wheeler showroom with just 8 employees??

It got oversubscribed by 419 times! Crazy, right?

What’s even more interesting is that despite all the hype, the shares made a pretty quiet debut on August 29, listing at ?117—exactly the same as the issue price on the BSE SME platform. Not the fireworks some were expecting! So, we can’t really say why this is happening… But let’s look at the surprises in the coming week as a bunch of new SME IPOs are about to hit the market, so it’s definitely worth keeping an eye on this space. The excitement is real, but as always, it’s wise to tread carefully and watch how these smaller companies perform over time.

? Coming up next week!?

As we gear up for the first week of September, here’s a quick look at what’s coming up:

September 2 (Monday): India Manufacturing PMI India’s Manufacturing PMI dipped just a bit to 57.9 in August from 58.1 in July. It’s the slowest expansion since May, but still above the long-term average.?

We’ll get the final August numbers on Monday, so let’s see if there are any surprises.

September 3 (Tuesday): US Manufacturing PMI In the US, the Manufacturing PMI has been struggling, coming in at 46.8 in July—well below expectations. It’s the sharpest contraction in US factory activity since November 2023. The August numbers drop on Tuesday, and they’ll give us a clearer picture of where things stand.

September 4 (Wednesday): HSBC Services PMI India’s Services PMI is still going strong, inching up to 60.4 in August. This marks the 37th straight month of expansion, which is impressive.?

We’ll get the final August figures on Wednesday, so stay tuned for that.

September 5 (Thursday): RIL Board Meeting & US Jobless Claims Thursday is going to be a busy day. RIL’s board meets to discuss a 1:1 bonus share issue, which is sure to grab some attention.?

On the same day, the US releases its latest jobless claims data. While claims dipped slightly last week, the overall trend suggests the labour market is softening.?

Could this push the Fed to rethink its rate strategy? We’ll see.

September 6 (Friday): Bank Loan Growth & FAO Food Price Index Finally, on Friday, we’ll get updates on India’s bank loan growth and the FAO Food Price Index. Bank loans have been growing at a healthy 13.6% in August compared to last year, and the food price index has shown some mixed trends.?

The August data will give us more clarity on global inflationary pressures

.??Reading Diet!

Chakrivardhan Kuppala wrote for Mint From young investor to seasoned pro: How to evolve your strategy with life’s changes

Hope you liked reading it as much as we did writing it!

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