Key Highlights – Growthfiniti Wealth Money Trends (May 2026)
India’s economic momentum remained strong during May 2026. Industrial production (IIP) accelerated to 4.9% YoY, supported by robust manufacturing activity, while Manufacturing PMI improved to 55.0 and Services PMI touched a six-month high of 59.8, indicating continued expansion across both sectors.
Economic growth remained resilient with GDP expanding 7.8% YoY in Q3 FY26, driven by a strong manufacturing sector that grew 13.3%. Inflation, however, showed signs of pressure, with CPI rising to 3.48% and WPI surging to 8.3%, largely due to higher fuel and power costs stemming from geopolitical tensions in West Asia.
India’s external sector remained stable despite some challenges. Merchandise exports grew 13.8% YoY to US$43.6 billion, although the trade deficit widened to US$28.4 billion. The current account deficit increased modestly to 1.3% of GDP, while foreign exchange reserves remained healthy at approximately US$681 billion.
Domestic equity markets witnessed a mild correction during the month amid uncertainty surrounding U.S.–Iran negotiations and concerns over oil supply disruptions. Large-cap indices declined, while mid-cap and small-cap segments continued to outperform, reflecting investor preference for growth-oriented opportunities.
Among sectors, Pharma, Healthcare, and Metals emerged as the strongest performers, supported by robust earnings and improving demand trends. In contrast, FMCG, Oil & Gas, and PSU Banks faced pressure due to concerns around consumption growth, rising input costs, and geopolitical uncertainties.
Overall, the Indian economy continues to display strong growth fundamentals, though inflationary pressures and global geopolitical developments remain key factors to monitor in the coming months.