Gravitywell.Research
Macro Indicators · Snapshot 21 June 2026

India, read in numbers.

The observable prints — growth, prices, rates, the external account, valuation, fiscal, labour and private markets — that the Gravitywell index family turns into forward composites. Every figure sourced, dated and trended.

7.7%
GDP · FY26
3.93%
CPI · May'26
5.25%
Repo
₹94.4
USD/INR
20.7
Nifty P/E
The read

A strong real economy meeting a risk-off market. Growth leads — 7.7% in FY26, the fastest major economy — with inflation still under the RBI's 4% target (3.93%) though rising five months running, and the policy rate on hold at 5.25% (neutral). The cross-currents are external and global: a hawkish Fed has pushed the dollar to a 13-month high and US yields to ~4.5%, the rupee is near record lows (~₹94.4), and equities have corrected ~10% in 2026 on FII outflows — absorbed by domestic institutions. Oil spiked on a West Asia scare then fell back to ~$80. Private capital set records in 2025 ($60.7bn PE/VC) but 2026 has opened 'wait-and-watch'. Net: robust fundamentals, a benign-but-watch inflation read, and markets re-pricing global rates and the external account.

Capital Cycle Clock · the forward read
Peak / Late-cycle

Capital running hot while fragility builds — bubble-watch, late in the cycle.

P(expansion)
100%
Markov regime probability
Growth-at-Risk (median)
6.9
central composite momentum
Growth-at-Risk (5% tail)
6.5
the downside scenario

The Clock standardises all 11 capital indices into one phase read — the forward composite the raw prints below feed into. See the methodology →

Global frame · what India trades inside

India is not an island — oil, US rates and the dollar set the external weather for the rupee, flows and inflation.

Brent crude
$80.6
19 Jun'26· ▼ −23% MoM
spiked ~$105 on West Asia, then fell

India's #1 swing variable — the pullback eases CAD, inflation and rupee pressure.

US 10-yr Treasury
4.49%
19 Jun'26· ▲ hawkish Fed
Fed on hold, hike bets rising

Higher US yields shrink India's rate advantage and pressure flows.

India–US 10-yr spread
~231 bps
Jun'26· ▼ compressing
narrow vs history (~400bps norm)

The carry cushion for foreign debt inflows is thin — a rupee-vulnerability signal.

Dollar index (DXY)
~101
19 Jun'26· ▲ 13-mo high
+1.7% MoM

A strong dollar is the headwind under the weak rupee and EM outflows.

Gold
$4,150
19 Jun'26· ▼ 3rd weekly drop
off record highs

Easing on the strong dollar — but India's gold imports still weigh on the trade gap.

Growth & activity

The real economy — output, industry and the forward-looking PMI pulse.

Real GDP growth
7.7%
FY26 (P)· ▲ from 7.1%beat 7.6% est
8-qtr: 6.4–8.2%

Q4 at 7.8% — manufacturing, construction and steady consumption led. Fastest major economy.

Industrial production
+4.9%
Apr'26 YoY· new 2022-23 base
first revised-series print

Manufacturing +6.2%, capital goods strong — the new chain-linked IIP series.

Manufacturing PMI
55.0
May'26· ▲ from 54.7
3-month high · >50 = growth

Output and new orders accelerating — the strongest factory read in three months.

Prices & inflation

Against the RBI's 4% target (2–6% band). CPI rebased to 2024=100 in Jan 2026.

CPI inflation
3.93%
May'26· ▲ from 3.48%~in line (4% poll)
12-mo: 1.3–3.9%

Fifth straight monthly rise — but still under the 4% target. Room for the RBI, watchfully.

Core CPI
~4.2%
May'26 (est)· ■ sticky
the policy-relevant gauge

Ex food & fuel — the sticky core the RBI actually steers by; hovering near target.

Food inflation (CFPI)
4.78%
May'26· ▲ rising
rural 4.85% > urban 4.66%

The upside pressure; rural inflation (4.25%) now runs ahead of urban (3.53%).

Rates & cost of capital

The policy stance, the real rate, and the actual price of money for deals (PE lens).

RBI repo rate
5.25%
Jun'26 MPC· ■ unchanged · neutral
cut from 6.5% over the easing cycle

On hold, neutral stance — not signalling ease or hike; watching inflation vs growth.

Real policy rate
+1.32%
Jun'26· repo − CPI
comfortably positive

A positive real rate gives the RBI optionality and supports the rupee.

10-yr G-sec yield
~6.8%
Jun'26· ▼ 3-mo low
12-mo: 6.7–7.0%

Falling on heavy foreign buying (>$2.2bn this month) — cheaper sovereign funding.

AAA corp / spread
~7.4% · +60bps
Jun'26· ■ tight
AAA 7–8.5% band

Narrow AAA-G-sec spread = healthy credit appetite; the base cost of corporate debt.

Bank credit growth
~15.9%
FY26· ▼ moderating
from 17.1% peak → ~11-13% ahead

Robust but cooling; ICRA sees sub-12% in FY27 — the deployment backdrop for PE.

Markets & valuation

Levels, valuation and the flow tug-of-war — with the equity-vs-bond yield gap (HF lens).

Nifty 50
~23,500
Jun'26· ▼ −9.5% YTD
52-wk: ~23.3k–26.3k

Range-bound after a 2026 correction — global risk-off plus FII selling.

Nifty P/E
20.7
21 Jun'26· ▼ below median
10-yr median 23.4 (−14.6%)

Cheaper than its own history (P/B 3.07, div yield 1.21%) — valuation support after the fall.

Earnings yield vs 10-yr
4.83% vs 6.8%
Jun'26· ▼ negative gap
bonds out-yield equities

The yield gap favours bonds — the catch beneath the 'cheap P/E': rates are competition.

India VIX
13.4
19 Jun'26· ■ low
complacent vs the drawdown

Volatility muted despite the correction — read it as calm or complacency.

Market cap
$4.77 tn
Jun'26· ▼ −$533bn YTD
steepest fall in 15 yr

Among the largest equity markets globally — but a heavy 2026 drawdown.

FII / DII (1-mo)
−₹1,025 / +₹3,517 cr
to 18 Jun'26· DII absorbing FII
the structural floor

Domestic institutions buying what foreigners sell — the support under the market.

External & vulnerability

The balance-of-payments picture — reserves, the rupee, the debt stack (policymaker lens).

Forex reserves
$682 bn
Jun'26· ▼ from $728bn ATH
~11 months import cover

Ample cover; the RBI has drawn reserves down to smooth a weak rupee.

Rupee (USD/INR)
₹94.4
19 Jun'26· ▼ near record low
12-mo: ~84 → 94

Weak through 2026 on outflows + a strong dollar; RBI smoothing, not defending a level.

Current account
−0.6% GDP
FY26· Q4 surplus $7.1bn
CAD ~$25.2bn

Comfortable — services exports and remittances cushion the goods deficit.

Trade deficit
$28.4 bn
Apr'26· ▲ record (month)
widest April on record

Import surge — the external-vulnerability watch-item if oil re-spikes.

External debt
$765 bn
Dec'25· ▲ +10% YoY
~19% of GDP (low)

Rising but moderate vs GDP; reserves cover ~89% — a comfortable buffer.

REER (40-ctry)
−5.4%
May'25· ▼ less overvalued
competitiveness improving

The real exchange rate corrected — the rupee is more export-competitive than the nominal suggests.

Net FDI
$6.9 bn
FY26· ▲ from $1.0bn
gross healthy; net low

Repatriation and Indian outward investment keep NET inflows low despite healthy gross FDI.

Fiscal

The government's books — deficit discipline, the debt path and tax buoyancy.

Fiscal deficit
4.4% GDP
FY26· ■ target met
on the consolidation path

Revised estimate met despite a direct-tax shortfall — credible glide-path.

Debt / GDP
55.6%
BE FY27· ▼ from 56.1%
target 50±1% by FY31

Edging down toward the medium-term anchor — a structural positive for the rating.

GST collections
₹22 tn
FY26· ▲ +8.3%
record annual

Buoyant indirect taxes offset a direct-tax miss (~₹3 lakh cr shortfall flagged).

Labour & employment

The social-stability and demand backdrop — the number policymakers live on.

Unemployment (PLFS)
3.2%
2024-25· ■ low (Usual Status)
rural 2.5% · urban 5.1%

Headline rate low — but Current-Weekly-Status (short-run distress) sits notably higher.

Labour participation
rising
2024-25· ▲ esp. rural women
LFPR broadening

Participation climbing, led by rural women — a structural-demand and formalisation positive.

Private markets · PE / VC

The deployment, fundraising and exit cycle — for the PE & VC desks this is the core read.

PE/VC investment
$60.7 bn
2025· ▲ +8% YoY
2nd-highest ever · 1,475 deals

Financial services overtook infra as the top sector; AI/deeptech/space/climate broadening the base.

2026 run-rate
~$3.8 bn/mo
early 2026· ▼ below $5.1bn avg
'wait-and-watch'

Subdued start — investors tracking stability, earnings visibility and valuation alignment.

VC / growth equity
~$16 bn
2025· ▲ 2nd yr of growth
$250m+ rounds doubled

Larger rounds rebounded in SaaS and fintech — balanced volume-and-size growth.

Fundraising (dry powder)
$23.2 bn
2025· ▲ 2× from $9.8bn
123 funds — record

Dry powder building fast (VC funds ~$5.4bn) — capital is committed, waiting on entry points.

Exits
$32.9 bn
2025· ▲ strategic +211%
257 exits · 2nd-highest

Strategic sales (48% of exits) + IPO liquidity returned — the exit window reopened.

What to watch · the forward calendar
Early Jul'26CPI (Jun) & IIP (May) — is the five-month inflation creep continuing?
Jul'26Q1 FY27 GDP advance signals; monsoon progress (food-inflation driver)
Aug'26Next RBI MPC — hold vs cut as the Fed turns hawkish and the rupee stays weak
OngoingFII flows, Brent, and the dollar — the three swing variables for the rupee
Q2 FY27Corporate earnings — the test for the 'cheap P/E' against a negative yield gap

Snapshot 21 June 2026. Observable official and market prints, reconciled to the latest releases. Research / informational only — not investment advice. Sources: GDP 7.7% FY26 / Q4 7.8% (MoSPI, 5 Jun 2026)P · CPI 3.93%, food 4.78% May'26 (MoSPI / PIB)P · IIP +4.9% Apr'26, new 2022-23 base (PIB)P · Fiscal deficit 4.4%, debt/GDP 55.6%, GST ₹22tn (PIB / Budget)P · Unemployment 3.2% PLFS 2024-25 (MoSPI / PIB)P · Repo 5.25% neutral (RBI MPC, Jun 2026)P · Mfg PMI 55.0 May'26 (HSBC / S&P Global)S · 10Y G-sec / AAA spread / credit growth (Trading Economics / ICRA)S · Nifty P/E 20.7 / P/B 3.07 / earnings yield (Craytheon / Trendlyne)S · Brent / US 10Y / DXY / gold (Trading Economics, 19 Jun'26)S · Forex $682bn (Business Standard, 15 Jun'26); USD/INR ₹94.4S · External debt $765bn, ~19% GDP; REER (RBI / ICRA)S · PE/VC $60.7bn 2025, exits $32.9bn, 2026 run-rate (Bain / EY-IVCA)S · Market cap $4.77tn / Nifty-Sensex YTD; India VIX (5paisa / Upstox)S · Core CPI ~4.2% & indicative sparkline points — Gravitywell estimateE

Definitions. Definitions — CPI/core on 2024=100 base; real policy rate = repo − headline CPI; earnings yield = inverse Nifty P/E (the equity-vs-bond 'yield gap' is the Fed-model spread); REER = 40-country, trade-weighted real exchange rate (negative = more competitive); FII/DII = net cash-market flows; PE/VC figures are calendar-year (Bain/EY-IVCA). Sparklines trace the recent trend to the latest official print; intermediate points are indicative. Market levels move intraday and are shown as indicative ranges.

Data & sourcing policy

Sourcing. Every figure is sourced and dated. We tier provenance — Primary (official, regulatory, exchange or company filings), Secondary (tier-1 industry research and reputable media), and GW estimate (our own reconstruction or opinion, labelled, never presented as external fact). We prefer primary where it exists, reconcile divergent prints to cited ranges, and hold every number point-in-time — dated, and never silently restated; revisions publish as dated changes.

Fact vs opinion. Facts vs opinion — market sizes, official prints, prices, named deals and agency ratings are sourced facts (Primary/Secondary). Scores, grades, purity weights, scenario paths and indicative sparkline points are Gravitywell's analytical opinion (GW estimate) — labelled, not presented as external data.

PPrimaryOfficial / regulatory / exchange / company filingSSecondaryTier-1 industry research or reputable mediaEGW estimateGravitywell reconstruction or opinion — our analysis, not an external fact

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