News You Can Use of 05 April 2024

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NEWS U CAN USE

April 05, 2024

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The Week that was…

Apr to 05

Apr

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Indian Economy

• The Manufacturing Purchasing Managers' Index rose to 16-year high to 59.1 in Mar 2024

compared to 56.9 in Feb 2024 supported by production and sales that rose at fastest rates

since Oct 2020.

• India’s Services Purchasing Managers’ Index (PMI) rose to 61.2 in Mar 2024 as compared to

60.6 in Feb 2024 on the back of strong demand that spurred sales and business activity.

Composite PMI also increased to 61.8 from 60.6 in the same period.

• The Monetary Policy Committee (MPC) in its first bi-monthly monetary policy review of

FY25 kept key policy repo rate unchanged at 6.50% with immediate effect for the seventh

consecutive time. The standing deposit facility (SDF) rate also remained unchanged at

6.25%. Five out of six members voted to keep the policy repo rate unchanged. The MPC

also remained focused on withdrawal of accommodation to ensure that inflation

progressively aligns with the target, while supporting growth.

• According to the RBI, CPI inflation is projected at 4.5% for 2024-25 with Q1 at 4.9%, Q2 at

3.8%, Q3 at 4.6% and Q4 at 4.5%, with the risks are evenly balanced.

• According to the RBI, real GDP growth for 2024-25 is projected at 7.0% with Q1 at 7.1%,

Q2 at 6.9%, Q3 at 7.0% and Q4 at 7.0%, with the risks are evenly balanced.

• According to the Department of Investment and Public Asset Management data, the

government's dividend collections from non-financial central public sector enterprises and

entities in which it holds minority stakes reached a new peak of Rs. 63,749 crore in FY24.

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Domestic Equity Market Indices

Indices

05-Apr-24 1 Week Return YTD Return

S&P BSE Sensex

74,248.22 0.81% 2.78%

Nifty 50

22,513.7 0.84% 3.60%

S&P BSE Mid

-Cap 40,830.54 3.84% 10.83%

S&P BSE Small

-Cap 46,032.71 6.64% 7.87%

Source: Refinitiv

Values as on Apr 05, 2024

• Domestic equity markets rose for the

third consecutive week as key

benchmark indices S&P BSE Sensex and

Nifty 50 rose 0.81% and 0.84%

respectively. The rally was broad-based

as the mid-cap and small-cap segments

also closed the week in green with

healthy gains.

• Domestic equity markets rose during

the week supported by robust

domestic manufacturing and services

data of Mar 2024. Index heavyweight

banking sector stocks significantly

attributed to the gains following robust

credit growth in Q4FY24. However,

escalated tensions in the Middle East

along with rising crude oil prices

weighed on sentiment.

Ratios

S&P BSE

Sensex

Nifty 50

S&P BSE

Mid Cap

S&P BSE

Small Cap

P/E

25.44 23.07 28.66 33.10

P/B

3.78 3.95 3.74 3.59

Dividend Yield

1.10 1.19 0.89 0.63

Source: NSE, BSE

Values as on Apr 05, 2024

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

01-Apr-24 2,279 331 6.89

02-Apr-24 1,960 627 3.13

03-Apr-24 1,877 716 2.62

04-Apr-24 1,579 984 1.60

05-Apr-24 1,530 1,031 1.48

Source: NSE

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Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

S&P BSE Auto

49,396.67 0.52% 2.00%

S&P BSE Bankex

54,590.61 2.01% 1.03%

S&P BSE CD

53,500.85 2.34% 2.21%

S&P BSE CG

62,468.96 2.50% 5.82%

S&P BSE FMCG

19,420.96 0.53% 0.51%

S&P BSE HC

35,545.86 1.41% 2.41%

S&P BSE IT

36,064.58 1.18% -3.49%

S&P BSE Metal

29,534.70 4.75% 4.15%

S&P BSE Oil & Gas

27,833.14 0.68% -4.26%

Source:BSE

Values as on Apr 05, 2024

• On the BSE sectoral front, S&P BSE METAL rose

4.75% in response to the rapid expansion of the

Chinese manufacturing PMI data for Mar 2024,

indicating the strength of the economic

recovery.

• S&P BSE Power rallied 4.71% following warning

from the nation’s weather agency for hotter-

than-usual temperature through the end of Jun

this year.

Indian Derivatives Market Review

• Nifty Apr 2024 Futures stood at 22,595.50, a premium of 81.80 points above the spot

closing of 22,513.70.

• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.

1859.13 lakh crore as against Rs. 1314.32 lakh crore for the week to Mar 28.

• The Put-Call ratio stood at 0.76 compared with the previous week’s close of 0.95.

• The Nifty Put-Call ratio stood at 1.03 compared with the previous week’s close of 1.07.

Indian Equity Market (contd.)

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7.06

7.08

7.10

7.12

7.14

2-Apr 3-Apr 4-Apr 5-Apr

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

6.50 7.63 6.44 6.73

91 Day T-Bill

6.86 7.02 6.94 6.87

05.74% 2026, (5 Yr GOI)

7.06 6.90 7.04 7.29

07.18% 2033, (10 Yr GOI)

7.12 7.06 7.06 7.21

Source: Refinitiv Values as on Apr 05, 2024

• Bond yields rose following the surge in

U.S. Treasury yields as stronger-than-

expected manufacturing data of Mar

2024 in the U.S. trimmed rate-cut

expectations by the U.S. Federal Reserve.

Losses were extended after the RBI

maintained its main lending rate and

stance in its Apr 2024 monetary policy

meeting as widely expected.

• Yield on the 10-year benchmark paper

(7.18% GS 2033) rose by 6 bps to close at

7.12% from the previous week’s close of

7.06%.

• Data from Reserve Bank of India showed

that India's foreign exchange reserves

increased to $645.58 billion for the week

ended Mar 29, 2024 compared with

$642.63 billion a week earlier.

Domestic Debt Market

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-20

-15

-10

-5

6.70

6.80

6.90

7.00

7.10

7.20

3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs

India Yield Curve Shift (%) (W-o-W)

Change in bps 05-Apr-24 28-Mar-24

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 7.16 7.86 70

3 Year 7.20 7.73 53

5 Year 7.21 7.68 47

10 Year 7.24 7.62 38

Source: Refinitiv

Values as on Apr 05, 2024

• Yields on gilt rose between 3 to 8 bps across the

maturities, barring 5, 15 & 19 year papers that fell

by 1 bps each.

• Corporate bond yields increased between 3 to 6 bps

across the curve, barring 1 year paper that fell by 5

bps.

• Difference in spread between AAA corporate bond

and gilt expanded by 3 or 5 bps bps across the

segments, barring 1 & 10 year papers that

contracted by 13 & 4 bps respectively, while 4, 6 & 7

year papers remained steady.

Domestic Debt Market (Spread Analysis)

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• SEBI has updated its SEBI Complaints Redress System (SCORES) by introducing its 2.0

version. According to the capital market regulator SEBI, the new version has further

streamlined the grievance and complaint filing process and reduced the turnaround time to

just 21 days.

• According to the government notification, central government has raised windfall tax on

petroleum crude to Rs. 6,800 a metric tonne from Rs. 4,900 w.e.f. Apr 4, 2024. The windfall

tax remained at zero for diesel and aviation turbine fuel.

• The RBI has unveiled a new system that enables users to deposit cash at ATMs using UPI and

make payments using prepaid payment instruments through third-party applications. This

will improve customer convenience and streamline bank currency handling procedures.

• According to media report, India has removed export restrictions on nine goods to the

Maldives, including sugar, wheat flour, potatoes, onions, and rice, for the current fiscal year.

This action releases these exports from all current and upcoming restrictions and

prohibitions under a bilateral trade agreement.

• According to media report, IRDAI recently announced that it will maintain its surrender value

norms, in contrast to its earlier proposal to set a threshold on surrender charges and raise

surrender value so that policyholders receive a higher amount after prematurely

terminating the policy. The latest regulations will be applicable to both linked and non-

linked life insurance products.

Regulatory Updates in India

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• Insurance regulator the IRDAI has gazetted new regulations, IRDAI Protection of

Policyholders, Interests, Operational and Allied Matters of Insurers Regulations 2024 in

which it has directed insurance companies and distributors including individual agents,

insurance brokers, insurance marketing firms not to mislead policyholders with

extraordinary benefits.

• The Directorate General of Trade Remedies, an investigative division of the commerce

ministry, is looking into claims of the dumping of "insoluble sulfur," a chemical used in the

rubber industry, from China and Japan.

Regulatory Updates in India (contd..)

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• According to the Labor Department, U.S. non-farm payroll employment spiked by 303,000

jobs in Mar 2024 after surging by a downwardly revised 270,000 jobs in Feb 2024.

Economists had expected employment to jump by 200,000 jobs compared to the addition

of 275,000 jobs originally reported for the previous month.

• According to the Institute for Supply Management, U.S. manufacturing PMI jumped to 50.3

in Mar 2024 from 47.8 in Feb 2024, with a reading above 50 indicating growth in the

sector. Economists had expected the index to inch up to 48.4.

• According to Eurostat, eurozone’s harmonized index of consumer prices registered an

increase of 2.4% annually, slower than the 2.6% rise in Feb 2024. Prices were forecast to

climb 2.5%.

• According to the Nationwide Building Society, U.K. house price index posted a monthly fall

of 0.2% in Mar 2024, in contrast to the 0.7% rise in Feb 2024 and confounding the forecast

of a 0.3% gain.

• According to a survey, Japan’s service sector PMI has improved to 54.1 in Mar 2024. That's

up from 52.9, and it moves further above the boom-or-bust line of 50 that separates

expansion from contraction.

• According to a survey, China’s caixin service sector Purchasing Managers' Index, or PMI,

rose to 52.7 in Mar 2024 from 52.5 in Feb 2024. The score signaled an increase in service

activity for the fifteenth successive month. The rate of expansion was faster, but it

remained below the long-run series average.

Global News/Economy

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Global Indices

Indices

05-Apr-24

1-Week

Return

YTD

Return

Russell 3000 2,646.68 -0.79% 10.15%

Nasdaq 100 18,108.46 -0.80% 7.62%

FTSE 100 7,911.16 -0.52% 2.30%

DAX Index 18,175.04 -1.72% 8.50%

Nikkei Average 38,992.08 -3.41% 16.52%

Straits Times 3,218.26 -0.18% -0.68%

Source: Refinitiv Value as on Apr 05, 2024

U.S.

• U.S. equity markets fell after the Labor

Department showed that U.S. non-farm

payroll employment spiked by 303,000

jobs in Mar 2024 after surging by a

downwardly revised 270,000 jobs in Feb

2024. However, economists had

expected employment to jump by

200,000 jobs, which sparked worries

about the direction of U.S. interest rates

in the future.

Europe

• European equity markets fell due to persistent tensions in the Middle East, continuing

uncertainty over the U.S. Federal Reserve interest rate decisions in the wake of hawkish

comments made by some Fed members, and data showing a higher-than-expected

growth in non-farm payroll employment in the U.S. for the month of Mar 2024.

Asia

• Asian equity markets mostly fell as concerns regarding the future direction of U.S. interest

rates were increased by growing oil prices and combative statements made by three Fed

members. The Japanese market fell on concerns that persistent inflation may prompt

additional interest rate hikes by the Bank of Japan.

Global Equity Markets

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4.25

4.30

4.35

4.40

1-Apr 2-Apr 3-Apr 4-Apr 5-Apr

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

• Yields on the 10-year U.S. Treasury rose

by 19 bps to close at 4.38% from the

previous week’s close of 4.19%.

• U.S. Treasury prices fell after the largest

economy in the world produced more

jobs than anticipated in Mar 2024,

according to data which indicates that

the U.S. Federal Reserve will not be

moving quickly to lower interest rates in

the near future.

• However, losses were restricted as

recent reports on the labor market

indicated deceleration, bolstering hopes

that the U.S. Federal Reserve may begin

easing later this year.

Global Debt (U.S.)

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8.00

9.00

10.00

11.00

12.00

5-Mar-24 21-Mar-24

Global Commodity Movement

Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)

Global Commodity Prices

Rebased to 10

Source: Refinitiv

Performance of various commodities

Commodities

Last Closing* 1-Week Ago

Brent Crude($/Barrel)

93.12 85.52

Gold ($/Oz)

2,329.50 2,232.38

Gold (Rs/10 gm)

69,720 66,987

Silver ($/Oz)

27.48 24.97

Silver (Rs/Kg)

78,992 74,028

Source: Refinitiv *Value as on Apr 05, 2024

Gold

• Gold prices rose as expectations that the

U.S. Federal Reserve would announce its

first interest rate reduction of the year in

Jun 2024 were strengthened by weaker

U.S. inflation data. Further, prices rose as

rising geopolitical tensions continued to

prompt investors to seek the safe-haven

yellow metal.

Brent Crude

• Brent crude oil prices rose on supply

concerns due to geopolitical tensions and

optimism about the future of energy

demand.

Baltic Dry Index

• The index fell over the week due to

sluggish capesize and panamax activities.

Commodities Market

05-Apr-24

8.89%

4.35%

10.04%

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9.80

9.90

10.00

10.10

10.20

10.30

5-Mar-24 21-Mar-24

USD GBP Euro JPY

Source: Refinitiv

Currency Prices ( in terms of INR)

Rebased to 10

Currency Movement

Movement of Rupee vs Other Currencies

Currency

Last Closing* 1-Wk Ago

US Dollar

83.41 83.37

Pound Sterling

105.24 105.29

EURO

90.31 90.22

100 Yen

55.15 55.09

Source: Refinitiv Figures in INR , *

Value as on Apr 05, 2024

Rupee

• The Indian rupee in the spot trade rose against

the U.S. dollar following greenback sales by

foreign and state-run banks and following the

seventh straight meeting in which the Indian

central bank left interest rates unchanged.

Euro

• Euro rose against the greenback despite data

showing that U.S. firms hired significantly more

workers in Mar 2024 than anticipated, which

could cause the U.S. Fed to postpone its

planned interest rate cut this year.

Pound

• Pound rose against the U.S. dollar despite data

showing U.S. employers hired far more workers

than expected in Mar 2024.

• Yen fell against the U.S. dollar after data

showed U.S. employers hired far more workers

than expected in Mar 2024.

Currencies Markets

05-Apr-24

0.04%

0.11%

0.10%

-0.05%

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The Week that was…

Apr to 05

Apr

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The Week that was (Apr 01 – Apr 05)

Date Events

Present

Value

Monday,

April 01, 2024

• China Caixin Manufacturing PMI(Mar) 51.1 50.9

• U.S. ISM Manufacturing PMI(Mar) 50.3 47.8

Tuesday,

April 02, 2024

• India HSBC Manufacturing PMI Final (Mar) 59.1 56.9

• Germany HCOB Manufacturing PMI(Mar) 41.9 41.6

• Germany Consumer Price Index (MoM)(Mar) PREL 0.40% 0.40%

• U.S. Factory Orders (MoM)(Feb) 1.40% -3.80%

Wednesday,

April 03, 2024

• China Caixin Services PMI(Mar) 52.7 52.5

• Eurozone Core Harmonized Index of Consumer Prices (YoY)(Mar) PREL 2.90% 3.10%

• U.S. ADP Employment Change(Mar) 184K 155K

• U.S. ISM Services PMI(Mar) 51.4 52.6

Thursday,

April 04, 2024

• Germany HCOB Composite PMI(Mar) 47.7 47.4

• Eurozone HCOB Composite PMI(Mar) 50.3 49.9

• Eurozone Producer Price Index (MoM)(Feb) -1% -0.90%

• U.S. Initial Jobless Claims(Mar 29) 221K 212K

Friday,

April 05, 2024

• Germany Factory Orders (MoM)(Feb) 0.20% -11.40%

• Eurozone Retail Sales (YoY)(Feb) -0.70% -0.9%

• U.S. Nonfarm Payrolls(Mar) 303K 270K

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The Week Ahead

Apr to 12

Apr

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The Week Ahead

Day Event

Monday,

Apr 08, 2024

• Germany Industrial Production (MoM)(Feb)

• U.K. BRC Like-For-Like Retail Sales (YoY)(Mar)

Tuesday,

Apr 09, 2024

• U.S. API Weekly Crude Oil Stock (Apr 5)

• Japan Producer Price Index (YoY)(Mar)

Wednesday,

Apr 10, 2024

• China New Loans (Mar)

• U.S. Consumer Price Index (YoY)(Mar)

• U.S. FOMC Minutes

• U.S. Monthly Budget Statement (Mar)

Thursday,

Apr 11, 2024

• China Consumer Price Index (YoY)(Mar)

• European Central Bank Monetary Policy Statement

• U.S. Initial Jobless Claims (Apr 5)

• U.S. Producer Price Index ex Food & Energy (YoY)(Mar)

Friday,

Apr 12, 2024

• India Inflation Rate (YoY) (MAR)

• India Industrial Production (YoY) (Feb)

• India Inflation Rate (MoM) (Mar)

• China Imports (YoY)(Mar)

• Germany Harmonized Index of Consumer Prices (YoY)(Mar)

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The information herein is meant only for general reading purposes and contains all factual and statistical information pertaining to Industry and

markets which have been obtained from independent third party sources and which are deemed to be reliable. The information provided cannot be

considered as guidelines, recommendations or as a professional guide for the readers. It may be noted that since Nippon Life India Asset

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