CPSE Capex Jumps 26% Amid Steady Economic Activity; E-Way Bill Growth Hits Four-Month Peak

CPSE Capex Jumps 26% Amid Steady Economic Activity; E-Way Bill Growth Hits Four-Month Peak​

Domestic Resilience: CPSE Investment Spurs Growth​

India’s economic momentum remains robust, driven significantly by capital expenditure in public sector enterprises. Capital spending by 63 Central Public Sector Enterprises (CPSEs) surged by 26% year-on-year, reaching Rs 2.10 trillion in the first quarter of FY27. This impressive spend accounts for approximately 25% of their annual capex target, signaling strong corporate investment activity within key sectors.

Economic activity also showed steady improvement across various fronts. E-way bill generation accelerated by 14.5% year-on-year during June. This rate represents the fastest growth observed in four months and indicates sustained material movement and commerce.

Agricultural Outlook Faces Headwinds Amid Planting Concerns​

Despite robust industrial and business indicators, the agricultural sector presents a mixed picture as planting progresses. As of July 3, kharif sowing activity lagged, registering nearly 21% below the previous year’s level. This slowdown is attributed to delayed monsoon rains across crucial farming regions.

Global Markets Deliver Mixed Signals on Commodities and Equities​

International market cues offered a snapshot of global health, with equity markets generally showing positive signs. US equities closed higher overnight, led by the S&P 500 which rose 0.72%, the Dow Jones gaining 0.29%, and Nasdaq advancing 1.12%. Japan's Nikkei remained little changed while European exchanges experienced mixed performance.

Commodity Prices Stabilize as Crude Edges Down​

The commodity space saw minor movements, with crude oil prices experiencing a slight dip. Brent crude slipped 0.18% to trade at US$71.99 per barrel. Gold also eased, falling by 0.26% and settling at US$4,164 per ounce as global investors recalibrate risk appetite.

International Economic Indicators Show Varied Momentum​

Global economic data provided varying degrees of positivity across key economies. The S&P Global US Composite PMI improved to 51.9 in June from the previous reading of 51.5 in May. This improvement was underpinned by strong manufacturing output and a modest uptick in services activity.

The UK demonstrated notable industrial growth, reporting an 11.4% year-on-year rise in new car sales in June. This performance stands as the strongest monthly figure since 2019, with battery electric vehicles achieving a record share of total sales. In the Euro Area, producer prices increased by 0.2% month-on-month in May, following an upwardly revised 0.7% rise reported for April and meeting market expectations.