This document provides a summary of key macroeconomic factors that impact economic analysis, including GDP, interest rates, inflation, balance of payments, exchange rates, and more. It outlines how each factor is measured and its potential impact on other economic indicators and the stock market. Frequency of data releases for several countries is also shown for some factors. The document aims to explain the macroeconomic environment and relationships between different macro factors.

1. Macro -economics
Economic Analysis

2. Macro –Economic Environment
GDP Saving &
Interest Rates Inflation
Investment
Balance of Monsoon &
Budget Tax Structure Payment Agriculture
Infrastructure Demographic Monetary Fiscal
Facilities Factors Policy Policy

3. Economic Cycle

4. Factors in Macro Economics
Interest
GDP Inflation
Rates
Exchange Balance of
IIP
Rates Payment

5. Interest rates

6. Interest Rates

7. Impact of Rising Interest Rates
• A Bank has taken a deposit of 100 from
public and CRR is 9 and SLR is 25 then
available funds to lend from deposits with the
bank will be 100-9-25=66
• Raising interest rates are required to control
excess liquidity in the markets

8. Terms in Interest Rates
• CRR(Cash Reserve Ratio)
• Repo Rates
• Reverse Repo Rates
• SLR(Statutory Liquid Ratio)

9. Cash Reserve Ratio
• Amount of cash that bank is to kept with RBI
• To secure solvency of the bank and to drain out the
excessive money from the banks.
• Present Rate is 4%
• If RBI decides to increase the percent of this, the
available amount with the banks comes down (To
reduce liquidity in market)

10. Repo Rate
• Rate at which our bank borrow rupees from
RBI
• Short term measure and to fill gaps between
demand and supply of money in a bank
• Present Rate is 7.75%
• Decreased from 8.00% which was
continuing since 17/04/2012

11. Reverse Repo Rate
• Rate which is paid by RBI to banks on
Deposit of funds with RBI(surplus fund with
bank)
• Present Rate is 6.75%
• Decreased from 7.00% which was
continuing since 17/04/2012

12. Statutory Liquidity Ratio (SLR)
• Bank needs to maintain in the form of cash, or gold
or govt. approved securities (Bonds) before
providing credit to its customers
• SLR rate is determined and maintained by the RBI
in order to control the expansion of bank credit
• Present rate is 23%
• Decreased from 24% which was continuing
since 18/12/2010

13. Impact of Interest Rates on Stock Market

14. Interest Rate in World
TOP ECONOMIES LAST PREVIOUS HIGHEST LOWEST
AUSTRALIA 3.00 3.00 17.50 3.00
BRAZIL 7.25 7.25 45.00 7.25
CHINA 6.00 6.00 10.98 5.31
EURO AREA 0.75 0.75 4.75 0.75
FRANCE 0.75 0.75 4.75 0.75
GERMANY 0.75 0.75 4.75 0.75
INDIA 7.75 8.00 14.50 4.25
UNITED KINGDOM 0.50 0.50 17.00 0.50
UNITED STATES 0.25 0.25 20.00 0.25

15. Interest Rates
Details Facts
Frequency Quarterly
8 to 12 announcement
Low Interest Rate High liquidity positive for
Stocks, Currency but
negative for bonds
High Interest Rate Low liquidity negative for
stocks , currency but
positive for bonds
Below or above the Short term Volatility
benchmark

16. Gross Domestic Product
(GDP)

17. Gross Domestic Product (GDP)
Total market value of all final Goods &
Services Produced
Within the country in a given period of time
GDP = Consumption + Gross Investment +
Government Spending + (Exports – Imports)

18. Debt to GDP in World
TOP ECONOMIES LAST PREVIOUS HIGHEST LOWEST
AUSTRALIA 22.90 20.40 31.70 9.70
BRAZIL 65.10 66.20 79.80 63.50
CHINA 25.80 33.50 33.50 1.00
EURO AREA 87.30 85.40 87.30 66.20
FRANCE 86.00 82.30 86.00 20.70
GERMANY 80.50 82.50 82.50 55.60
INDIA 68.05 69.43 84.30 67.62
UNITED KINGDOM 85.00 79.40 85.00 31.30
UNITED STATES 101.60 99.40 121.70 31.70

19. GDP Rate in World
TOP GDP (USD
LAST PREVIOUS HIGHEST
ECONOMIES Billion)
AUSTRALIA 3.10 3.70 9.00 1371
BRAZIL 1.40 0.90 10.10 2476
CHINA 7.90 7.40 14.20 7298
EURO AREA -0.90 -0.60 5.00 13075
FRANCE -0.30 0.15 4.90 2773
GERMANY 0.10 0.40 4.70 3750
INDIA 4.50 5.30 10.20 1847
ITALY -2.70 -2.40 10.30 2194
JAPAN 0.30 0.40 9.40 5867
UNITED
0.30 0.20 10.20 2431
KINGDOM
UNITED STATES 1.60 2.60 13.40 15094

20. GDP Rate

21. GDP Rate in World

22. GDP
Details Facts
Frequency Quarterly (Revised monthly)
High GDP Positive for Stocks, Currency
strong(Due to foreign
investor) but negative for
bonds (Also create risk of
high inflation)
Component of GDP Sector perform as per the
growth contributed by each
sector
Below or above the Short term Volatility
benchmark

23. Index of Industrial
production (IIP)

24. Index of Industrial Production (IIP)
A short term indicator
Measures industrial growth till the actual result
available
Used by Ministries, Industrial Associations, Research
Institutes & Academicians

25. IIP Data & Stock Market

26. IIP Data & Stock Market

27. IIP Data & Stock Market

28. IIP Rate in World
TOP
LAST PREVIOUS HIGHEST LOWEST FREQUENCY
ECONOMIES
AUSTRALIA 4.33 2.69 13.72 -8.00 Quarterly
BRAZIL -3.60 -1.00 20.12 -17.47 Monthly
CHINA 10.30 10.10 29.40 -21.10 Monthly
EURO AREA -2.40 -4.00 9.80 -21.40 Monthly
FRANCE -3.10 -3.20 8.50 -19.30 Monthly
GERMANY -1.10 -3.10 15.00 -22.00 Monthly
INDIA -0.60 -0.10 20.00 -7.20 Monthly
UNITED
-1.70 -2.40 22.60 -11.90 Monthly
KINGDOM
UNITED
2.10 2.20 62.00 -33.70 Monthly
STATES

29. Unemployment Rate in World
TOP ECONOMIES LAST PREVIOUS HIGHEST LOWEST
AUSTRALIA 5.40 5.40 10.90 4.00
BRAZIL 5.40 4.60 13.10 4.60
CANADA 7.00 7.10 13.10 2.90
CHINA 4.10 4.10 4.30 3.90
EURO AREA 11.90 11.80 11.90 7.20
FRANCE 10.30 10.20 11.20 7.50
GERMANY 5.90 5.30 14.20 0.40
INDIA 3.80 9.40 9.40 3.80
UNITED
7.80 7.70 12.00 3.40
KINGDOM
UNITED STATES 7.90 7.80 10.80 2.50

30. IIP
Details Facts
Frequency Monthly
High IIP Positive for Stocks, Currency
strong, Commodity but
negative for bonds (Also
create risk of high inflation)
Below or above the Short term Volatility
benchmark

31. Balance of payment

32. Balance of Payment
Measures the payments that flow between any
individual country and all other country
Summarizes all international transaction for that
country in a year
It includes Export-Import, Financial
capitals,deposits,borrowings etc

33. Balance of Payment
Current • Consists of Goods & Services Account,
Primary Income Account & Secondary
Account Income Account
• Capital transfers receivables and payable
Capital • The acquisition and disposal of non
Account produced non financial assets.
• Involve financial assets & liabilities
Financial • Take place between residents &
Account nonresidents

34. Balance of Trade

35. Imports

36. Exports

37. Balance of Trade
TOP
LAST PREVIOUS HIGHEST LOWEST UNIT
ECONOMIES
BRAZIL -1276.00 -4036.33 5659.37 -4036.33 USD Million
USD Hundred
CHINA 291.46 316.18 404.00 -319.81
Million
FRANCE -5349.00 -4289.00 2674.00 -7021.00 EUR Million
GERMANY 12.00 17.00 20.10 -0.50 EUR Billion
INDIA -1086.12 -965.73 13.91 -1111.46 INR Billion
JAPAN -1629.44 -643.29 1608.68 -1629.44 Billion JPY
UNITED
-3201.00 -3577.00 2946.00 -6067.00 GBP Million
KINGDOM
UNITED USD Million
-38539.00 -48613.00 -831.00 -67351.00
STATES

38. Balance Of Payment
Details Facts
Frequency Monthly
High deficit on BOP Negative for the currency
(Low inflow of foreign
currency) Also International
commodities are also rising
Below or above the Short term Volatility
benchmark

39. Exchange Rates

40. Why Rupee Appreciate or Depreciate?

41. Exchange Rate
• Exchange rate means how much one currency is worth in
terms of another currency. If we can buy $ 1 with Rs. 46, the
exchange rate of the two currencies would be $1 = Rs. 46.
• Two types of exchange rate: Fixed and Floating
• In India, we have a Managed Floating Exchange Rate
System- Indian government intervenes only if the exchange
rate seems to go out of hand by increasing or reducing the
money supply as the situation demands.

42. Factors drive the demand for a currency
• Interest Rates – Differential rates between two countries
(For ex – in India interest rates 7-8% and in US 2-3% this
lead to greater capital inflow in India) rupee Appreciate
• Inflation Rates- If inflation rate is lower than more good
are exported which lead to currency inflow .then Rupee
Appreciate
• Export-Import- If export is more than import ,more
currency inflow of other country, which lead to currency
appreciation
• Trading in currency in Forex Market

43. INflation

44. INflation

45. Inflation Rate in World
COUNTRIES PREVIOUS HIGHEST LOWEST FREQUENCY
AUSTRALIA 2.20 2.00 23.90 Dec/2012
BRAZIL 6.15 5.84 6821.31 Jan/2013
CANADA 0.50 0.80 21.60 Jan/2013
CHINA 2.00 2.50 28.40 Jan/2013
EURO AREA 1.80 2.00 5.00 Feb/2013
FRANCE 1.20 1.30 18.80 Jan/2013
GERMANY 1.55 1.70 11.40 Feb/2013
INDIA 6.62 7.18 34.68 Jan/2013
ITALY 1.91 2.20 25.64 Feb/2013
JAPAN -0.30 -0.10 25.00 Jan/2013
UNITED
2.70 2.70 8.50 Jan/2013
KINGDOM
UNITED STATES 1.60 1.70 23.70

46. Inflation Rate in World

47. Inflation
Details Facts
Frequency Monthly
High Inflation Negative for currency ,
Increase risk interest rate
hike which effect stock
market ,Bonds are stable
commodity are rising
Below or above the Short term Volatility
benchmark

48. Major Obstacles in Indian Economy
• Infrastructure Shortage
• Inflation V/s GDP
• Fiscal Deficit
• Unemployment Rate
• Financial Sector

49. THANK YOU

50. Contact Us
CS ROHAN SHARMA
Mobile No : 9261211003
Email : ptaimp@gmail.com
Website : www.ptajaipur.com
CPA (USA) | CFA (USA) | CFP (USA) | IFRS | CMP | CMT | FUNDAMENTAL ANALYSIS |
TECHNICAL ANALYSIS | INDUSTRY CERTIFICATIONS (NCFM/NISM)