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NEWS U CAN USE
April 12, 2024
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The Week that was…
08
th
Apr to 12
th
Apr
2
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Indian Economy
• The consumer price index-based inflation eased to 10-month low of 4.85% YoY in Mar
2024 compared to 5.09% in Feb 2024, mainly due to cooling food prices. The retail
inflation remained below the central bank’s upper tolerance level for consecutive seven
months. Consumer food price inflation also eased to 8.52% in Mar 2024 from 8.66% in Feb
2024.
• Industrial production growth in India (IIP) accelerated to 5.7% YoY in Feb 2024, as
compared to 4.1% rise in Jan 2024. Production in the manufacturing industry increased by
5.0%, mining by 8.0% and electricity by 7.5% in Feb 2024.
• The RBI stood out with its continued accumulation of gold reserves. According to weekly
data of the RBI, gold holdings of the RBI was increased by 6-tonne in Feb 2024 alone. The
RBI has now purchased over 13 tonnes of gold this year, bringing its total holdings to 817
tonnes.
• According to data released by the Petroleum Planning and Analysis Cell, fuel consumption
in India increased 4.6%, to hit a record high of 233.32 million tonne in FY24. However, the
demand fell by 0.6% on an annual basis in Mar 2024 as a result of lesser petroleum coke
use.
• According to media report, sugar mills in India have cleared 87% of the total cane payment
of Rs. 90,000 crore to sugarcane farmers in the first six months of the current marketing
season i.e. Oct 2023 to Mar 2024. Total production of sugar stood at 300 lakh tonnes so
far this season.
3
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4
Domestic Equity Market Indices
Indices
12-Apr-24 1 Week Return YTD Return
S&P BSE Sensex
74,244.90 0.00% 2.78%
Nifty 50
22,519.40 0.03% 3.63%
S&P BSE Mid
-Cap 40,909.03 0.19% 11.05%
S&P BSE Small
-Cap 45,872.07 -0.35% 7.49%
Source: Refinitiv
Values as on Apr 12, 2024
• Domestic equity markets closed with
little change after witnessing rise for
three consecutive weeks as key
benchmark indices S&P BSE Sensex fell
marginally and Nifty 50 rose 0.03%. The
mid-cap segment closed the week in
green, however, the small-cap segment
closed the week in red.
• Domestic equity markets started the
week on positive note on expectation
of upbeat corporate earnings in the
final quarter of FY24. However,
sentiments were affected following
escalating geopolitical tensions in the
Middle East along with rising crude oil
prices due to supply concerns.
Sentiments were further affected as
the hotter-than-expected U.S. retail
inflation number of Mar 2024
dampened the expectation of interest
rate cuts soon by the U.S. Fed.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
25.37 23.08 28.64 33.01
P/B
3.77 3.95 3.74 3.57
Dividend Yield
1.11 1.19 0.89 0.64
Source: NSE, BSE
Values as on Apr 12, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
08-Apr-24 1,201 1,360 0.88
09-Apr-24 1,037 1,513 0.69
10-Apr-24 1,334 1,212 1.10
12-Apr-24 867 1,717 0.50
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
S&P BSE Auto
49,732.34 0.68% 3.72%
S&P BSE Bankex
54,884.37 0.54% 2.27%
S&P BSE CD
53,028.38 -0.88% 2.51%
S&P BSE CG
62,251.73 -0.35% 6.68%
S&P BSE FMCG
19,334.04 -0.45% 0.62%
S&P BSE HC
35,261.84 -0.80% 2.14%
S&P BSE IT
35,781.66 -0.78% -5.07%
S&P BSE Metal
30,348.42 2.76% 8.55%
S&P BSE Oil & Gas
28,245.21 1.48% 0.44%
Source:BSE
Values as on Apr 12, 2024
• On the BSE sectoral front, S&P BSE METAL
increased 2.76% on expectations of strong
global demand, after data showed
manufacturing growth in China and the U.S.
• S&P BSE Oil & Gas rose 1.48% supported by an
increase in the share prices of Oil Marketing
Companies (OMC), even though the price of
crude oil rose due to geopolitical concerns, as
analysts believed that petrol and diesel price
revision will resume post the elections and
OMCs will recover any shortfalls over the course
of the entire year.
Indian Derivatives Market Review
• Nifty Apr 2024 Futures stood at 22,601.45, a premium of 82.05 points above the spot
closing of 22,519.40.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1384.79 lakh crore as against Rs. 1859.13 lakh crore for the week to Apr 5.
• The Put-Call ratio stood at 0.97 compared with the previous week’s close of 0.76.
• The Nifty Put-Call ratio stood at 0.87 compared with the previous week’s close of 1.03.
Indian Equity Market (contd.)
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7.05
7.10
7.15
7.20
8-Apr 10-Apr 12-Apr
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
6.56 6.50 6.51 6.71
91 Day T-Bill
6.86 6.86 6.89 6.90
05.74% 2026, (5 Yr GOI)
7.07 7.06 7.02 7.34
07.18% 2033, (10 Yr GOI)
7.18 7.12 7.03 7.30
Source: Refinitiv Values as on Apr 12, 2024
• Bond yields rose following the rise in U.S.
Treasury yields after strong U.S. non-farm
payrolls data in Mar 2024 along with drop
in unemployment rate further pushed
back expectations around the timing of
the first rate cut by the U.S. Federal
Reserve. Losses were extended after
elevated U.S. inflation data of Mar 2024
reaffirmed doubts over interest rate cuts
in the near future by the U.S. central
bank.
• Yield on the 10-year benchmark paper
(7.18% GS 2033) rose by 6 bps to close at
7.18% from the previous week’s close of
7.12%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
increased to $648.56 billion for the week
ended Apr 05, 2024 compared with
$645.58 billion a week earlier.
Domestic Debt Market
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-4
-2
0
2
4
6
8
6.60
6.80
7.00
7.20
7.40
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 12-Apr-24 05-Apr-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 7.13 7.68 55
3 Year 7.27 7.69 42
5 Year 7.23 7.76 53
10 Year 7.31 7.57 26
Source: Refinitiv
Values as on Apr 12, 2024
• Yields on gilt rose between 3 to 10 bps across the
maturities, barring 1 year paper that fell by 3 bps,
while 15 & 19 year papers were unchanged.
• Corporate bond yields increased between 4 to 9 bps
across the curve.
• Difference in spread between AAA corporate bond
and gilt expanded up to 12 bps across the
segments, barring 2 to 4, 6 & 7 year papers that
contracted up to 2 bps.
Domestic Debt Market (Spread Analysis)
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8
• The government has mandated that importers, millers, stockists, traders, and processors of
pulses to disclose their stocks of all pulses starting from Apr 15, 2024 in order to prevent
hoarding as it suspects a large quantity of imported legumes are lying in customs
warehouses.
• The chairman of the Central Board of Indirect Taxes and Customs has instructed field
formations to handle the cases of legacy where there is no dispute. Official data indicates
that there are cases that are stuck, some of which date back more than ten years, with tax
demands of approximately Rs. 29,000 crore.
• According to media report, the government is thinking of letting sugar mills use their excess
B-heavy molasses to make ethanol in the face of stable sugar prices and a plentiful supply.
Following the reversal of the ban, the industry is attempting to use the more than 8 lakh
tonnes of excess B-heavy molasses that are currently in storage to produce ethanol. There
are still discussions about the proposal.
• According to media report, the income tax department has released an interim action plan
for the FY25 that includes the identification of possible prosecution cases, short-payment of
TDS, and expedited appeals processing. The action plan also lays out the dates for approving
refunds, identifying situations in which seized property must be released, and releasing said
assets by Jun 30, 2024.
Regulatory Updates in India
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9
• IRDAI sets a specific business commitment for insurers, directing them to concentrate
more on the social sector and rural areas. The new standards stipulate that at least 10% of
all lives covered or all business generated must originate from social sectors and rural
areas.
• AMFI has released standard guidelines for nominees and legal heirs of the deceased
Mutual Fund Distributor (MFD) to ease the transmission process in an attempt to expedite
the transfer of MF units in the event of MFD demise. The nominee or legal heir is required
by the new standards to notify the CAMS - AMFI unit in writing as soon as possible of the
MFD's passing. Along with ARN and a true copy of the death certificate attested by a
notary public or gazetted officer, such a communication should be included.
Regulatory Updates in India (contd..)
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• According to the Labor Department, U.S. initial jobless claims fell to 211,000 in the week
ended Apr 6th 2024, a decrease of 11,000 from the previous week's revised level of
222,000.
• According to the Labor Department, U.S. producer price index for final demand crept up by
0.2% in Mar 2024 after climbing by 0.6% in Feb 2024. The uptick matched expectations.
• According to the Labor Department, U.S. consumer price index climbed by 0.4% in Mar
2024, matching the increase seen in Feb 2024. Economists had expected consumer prices
to rise by 0.3%.
• According to official data, Germany’s industrial output posted a monthly growth of 2.1% in
Feb 2024, following a revised 1.3% rise in Jan 2024.
• According to the Ministry of Economy, Trade, and Industry, Japan’s industrial production
fell 0.6% on a monthly basis in Feb 2024, though much slower than the 6.7% decline in Jan
2024. In the initial estimate, the rate of decline was 0.1%.
• According to the National Bureau of Statistics, China's consumer prices fell 1.0% on month
in Mar 2024. On a yearly basis, inflation rose 0.1%- again missing expectations for a gain of
0.4% and slowing from 0.7% in the previous month.
• According to the Bank of Japan, Japan’s producer prices were up 0.2% a month in Mar
2024. On a yearly basis, producer prices rose 0.8%- matching forecasts and up from 0.7% in
the previous month.
10
Global News/Economy
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11
Global Indices
Indices
12-Apr-24
1-Week
Return
YTD
Return
Russell 3000 2,627.12 -0.74% 9.34%
Nasdaq 100 18,003.49 -0.58% 7.00%
FTSE 100 7,995.58 1.07% 3.39%
DAX Index 17,930.32 -1.35% 7.04%
Nikkei Average 39,523.55 1.36% 18.11%
Straits Times 3,216.91 -0.04% -0.72%
Source: Refinitiv Value as on Apr 12, 2024
U.S.
• U.S. equity markets fell after the Labor
Department showed that the U.S.
consumer price index climbed by 0.4%
in Mar 2024, matching the increase seen
in Feb 2024 which was above
economists' expectations and growing
concerns that the U.S. Federal Reserve
would postpone cutting interest rates.
Europe
• European equity markets closed on a mixed note. The market fell on worries about
inflation which reduced the optimism that the U.S. Federal Reserve would lower interest
rates in Jun 2024.
Asia
• Asian equity markets closed on a mixed note. Sentiment was affected as new doubts
about the path of rate decreases by the U.S. Federal Reserve this year were fueled by
hotter-than-expected U.S. inflation data. The Chinese market fell after China's Mar 2024
exports and imports figures missed estimates by large margins.
Global Equity Markets
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4.20
4.30
4.40
4.50
4.60
8-Apr 9-Apr 10-Apr 11-Apr 12-Apr
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury rose
by 12 bps to close at 4.50% from the
previous week’s close of 4.38%.
• U.S. Treasury prices fell after U.S.
consumer prices increased more than
expected in Mar 2024, putting even
more uncertainty on the possibility that
the U.S. Federal Reserve will begin
reducing interest rates in Jun 2024.
• Further, prices fell as investors were
concerned about rising inflation despite
the release of softer-than-expected Mar
2024 producer price data.
Global Debt (U.S.)
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9.00
9.50
10.00
10.50
11.00
11.50
12.00
12-Mar-24 28-Mar-24
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
13
Performance of various commodities
Commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel)
94.11 93.12
Gold ($/Oz)
2,343.43 2,329.50
Gold (Rs/10 gm)
72,931 69,720
Silver ($/Oz)
27.88 27.48
Silver (Rs/Kg)
83,961 78,992
Source: Refinitiv *Value as on Apr 12, 2024
Gold
• Gold prices rose as investors picked up the
safe-haven asset amid concerns about
geopolitical tensions. Further, prices rose
after softer-than-expected U.S. producer
prices data boosted hopes for U.S. rate
cuts this year.
Brent Crude
• Brent crude oil prices rose amid concerns
about the outlook for supply due to rising
tensions in the Middle East. However, gains
were restricted amid worries that
inflationary pressures would force the U.S.
Federal Reserve to maintain interest rates
higher for an extended length of time.
Baltic Dry Index
• The index rose over the week due to
improved capesize and panamax activities.
Commodities Market
12-Apr-24
1.06%
0.60%
1.44%
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9.50
9.60
9.70
9.80
9.90
10.00
10.10
10.20
12-Mar-24 28-Mar-24
USD GBP Euro JPY
Source: Refinitiv
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
83.39 83.41
Pound Sterling
104.42 105.24
EURO
89.13 90.31
100 Yen
54.42 55.15
Source: Refinitiv Figures in INR , *
Value as on Apr 12, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar due to strong greenback
demand.
Euro
• Euro fell against the greenback after a hint
from the European Central Bank that rates
would be reduced shortly.
Pound
• Pound declined against the U.S. dollar following
the unexpected Mar 2024 increase in U.S.
inflation, which delayed the first-rate drop from
Jun 2024 to Sep 2024.
Y
en
• Yen fell against the U.S. dollar following a
surprise increase in U.S. inflation in Mar 2024,
which delayed the first-rate cut's anticipated
Jun 2024 date to Sep 2024.
Currencies Markets
12-Apr-24
-0.02%
-1.32%
-1.31%
-0.77%
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15
The Week that was…
08
th
Apr to 12
th
Apr
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16
The Week that was (Apr 08 – Apr 12)
Date Events
Present
Value
Previous
Value
Monday,
April 08, 2024
• Germany Industrial Production (YoY)(Feb) -4.90% -5.30%
• U.K. BRC Like-For-Like Retail Sales (YoY)(Mar) 3.20% 1%
Tuesday,
April 09, 2024
• Japan Consumer Confidence Index(Mar) 39.5 39
• Japan Producer Price Index (YoY)(Mar) 0.80% 0.70%
• U.S. API Weekly Crude Oil Stock(Apr 5) 3.034M -2.286M
Wednesday,
April 10, 2024
• U.S. Consumer Price Index (MoM)(Mar) 0.40% 0.40%
• U.S. Monthly Budget Statement(Mar) $-236B $-296B
• U.K. RICS Housing Price Balance(Mar) -4% -10%
• Japan Foreign Investment in Japan Stocks(Apr 5) ¥1,764.4B ¥-441.6B
Thursday,
April 11, 2024
• China Consumer Price Index (YoY)(Mar) 0.10% 0.70%
• U.S. Initial Jobless Claims(Apr 5) 211K 222K
• U.S. Producer Price Index ex Food & Energy (YoY)(Mar) 2.40% 2.10%
• European Central Bank Main Refinancing Operations Rate 4.50% 4.50%
Friday,
April 12, 2024
• China Imports (YoY)(Mar) -1.90% 3.50%
• Germany Harmonized Index of Consumer Prices (YoY)(Mar) 2.30% 2.30%
• U.K. Gross Domestic Product (MoM)(Feb) 0.10% 0.30%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
15
th
Apr to 19
th
Apr
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18
The Week Ahead
Day Event
Monday,
Apr 15, 2024
• India WPI Food Index (YoY) (Mar)
• India Balance of Trade (Mar)
• U.S. IMF Meeting
• U.S. Retail Sales (MoM)(Mar)
Tuesday,
Apr 16, 2024
• China Gross Domestic Product (QoQ)(Q1)
• U.K. Employment Change (Feb)
• U.S. Housing Starts (MoM)(Mar)
• Japan Exports (YoY)(Mar)
Wednesday,
Apr 17, 2024
• U.K. Consumer Price Index (MoM)(Mar)
• U.K. Retail Price Index (YoY)(Mar)
• Eurozone Core Harmonized Index of Consumer Prices (MoM)(Mar)
• U.S. Fed's Mester speech
Thursday,
Apr 18, 2024
• U.S. Initial Jobless Claims (Apr 12)
• U.S. Existing Home Sales (MoM)(Mar)
• Japan National CPI ex Fresh Food (YoY)(Mar)
Friday,
Apr 19, 2024
• India Monetary Policy Meeting Minutes
• Germany Producer Price Index (MoM)(Mar)
• U.K. Retail Sales (MoM)(Mar)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
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
Management Limited (NAM India) has not independently verified the accuracy or authenticity of such information or data, or for that matter the
reasonableness of the assumptions upon which such data and information has been processed or arrive data; NAM India does not in any manner
assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect NAM
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19
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