News You Can Use Of 02 December 2022

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NEWS U CAN USE

Dec 02, 2022

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The Week that was…

Nov to 02

Dec

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Indian Economy

• Government data showed that India’s gross domestic product (GDP) grew 6.3% on a yearly

basis for the quarter ended Sep 30, 2022 as compared to a growth of 8.4% in the same period

of the previous year. During Sep 2022 quarter, Gross Value Added (GVA) agriculture grew at

4.6%, public administration, defence and other services, which represent government

expenditure, grew 6.5% and construction sector grew 6.6%. The manufacturing and mining

sectors recorded a fall in growth at 4.3% and 2.8%, respectively, during the quarter ended

Sep 2022.

• Government da

ta showed that India’s fiscal deficit stood at 45.60% of the Budget Estimates

(BE) from Apr to Oct of FY23. The revenue deficit stood at 38.80% of Budget estimate. Total

receipts stood at Rs. 13.86 lakh crore or 60.7% of the budget target as compared to 64.7% in

the corresponding period of the previous year.

•

India's core sector growth slowed to 0.1% in Oct 2022 as against 8.7% in the same month last

year. In Sep 2022, the core sectors' output growth stood at 7.8%. The cumulative growth in

the eight core industries till Oct in FY23 was 8.2%. In the corresponding months in FY22, the

cumulative growth stood at 15.6%.

• According to S&P Global, India’s Manufacturing Purchasing Managers’ Index rose to 55.7 in

Nov 2022 from 55.3 in Oct 2022. India's manufacturing sector expanded at its highest rate in

three months in Nov as input cost inflation dropped to a two-year low in spite of the

worsening state of the global economy.

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Domestic Equity Market Indices

Indices 02-Dec-22 1 Week Return YTD Return

S&P BSE Sensex

62,868.5 0.92% 7.92%

Nifty 50

18,696.1 0.99% 7.73%

S&P BSE Mid-Cap

26,321.65 2.84% 5.41%

S&P BSE Small-Cap

29,911.79 2.43% 1.54%

Source: MFI Explorer;

NSE Advance/Decline Ratio

Date Advances Declines

Advance/Decline Ratio

28-Nov-22 1,312 919 1.43

29-Nov-22 1,019 1,180 0.86

30-Nov-22 1,348 851 1.58

01-Dec-22 1,343 879 1.53

02-Dec-22 1,276 946 1.35

Source: NSE

• Domestic equity markets rose as key

domestic headline indices S&P BSE

Sensex and Nifty 50 crossed

psychologically important levels of

63,000 and 18,700, respectively during

the week.

• Markets went up on the back of robust

capital inflows as market participants

remained confident of the India growth

story which can be attributed to India’s

macroeconomic stability and its

structural growth drivers.

• Market participants view the Indian

economy as a bright spot in the global

economy which has managed to attract

foreign investors despite the global

headwinds, geopolitical unrest between

Russia and Ukraine, rising interest rates

and fears of a global recession.

Ratios

S&P BSE

Sensex

Nifty 50

S&P BSE

Mid Cap*

S&P BSE

Small Cap*

P/E

23.81 22.47 27.50 25.03

P/B

3.50 4.39 3.08 2.85

Dividend Yield

1.14 1.28 1.16 0.84

Source: BSE, NSE

Value as on Dec 02,

2022;

Indian Equity Market

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Sectoral Indices

Indices

Last

Closing*

Returns (in %)

1-Wk 1-Mth

S&P BSE Auto

29,978.1 0.79% -1.89%

S&P BSE Bankex

49,179.4 0.33% 4.24%

S&P BSE CD

41,445.1 0.84% -2.85%

S&P BSE CG

34,164.6 0.96% 2.53%

S&P BSE FMCG

16,424.6 2.28% 1.23%

S&P BSE HC

23,927.3 1.09% -1.99%

S&P BSE IT

31,002.3 2.04% 5.88%

S&P BSE Metal

20,720.2 3.36% 7.16%

S&P BSE Oil & Gas

20,502.4 1.80% 4.52%

Source: Refinitiv

*Value as on Dec 02, 2022

• On the sectoral front, all the sectoral indices

closed in the green. S&P BSE Realty rose the

most by 4.20% followed by S&P BSE Metal which

rose 3.36%.

• Realty stocks rose on hopes of improved

demand in the residential and rental business

segment.

• Metal stocks gained on expectations of

improved demand from China as worries over

COVID-19 pandemic in the country eased to

some extent.

Indian Derivatives Market Review

• Nifty Dec 2022 Futures stood at 18,812.55, a premium of 116.45 points above the spot

closing of 18,696.10.

• The total turnover on NSE’s Futures and Options segment for the week stood at Rs. 805.14

lakh crore as against Rs. 664.51 lakh crore for the week to Nov 25.

• The Put-Call ratio stood at 0.92, unchanged from last week.

• The Nifty Put-Call ratio stood at 0.94 compared with the previous week’s close 0f 1.18.

Indian Equity Market (contd.)

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Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

5.80 6.12 5.93 4.07

91 Day T-Bill

6.37 6.45 6.47 4.97

05.74% 2026, (5 Yr GOI)

7.04 7.15 7.29 7.18

07.26% 2032, (10 Yr GOI)

7.22 7.30 7.40 7.43

Source: Refinitiv Value as on Dec 02, 2022

• Bond yields fell initially tracking fall in

global crude oil prices, which raised

expectations of easing consumer

inflation and the Reserve bank of India

slowing its pace of rate hikes going

ahead. Gains increased at the end after

U.S. Federal Reserve Chairman adopted a

more dovish stance on interest rates than

the market anticipated.

• Yield on the 10-year benchmark paper

(7.26% GS 2032) fell 8 bps to close at

7.22% from the previous week’s close of

7.30%.

• Data from Reserve Bank of India showed

that India's foreign exchange reserves

surged to $550.14 billion for the week

ended Nov 25, 2022 from $547.25 billion

a week earlier.

Domestic Debt Market

6.00

6.67

7.33

8.00

28-Nov 29-Nov 30-Nov 1-Dec 2-Dec

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

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Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year

6.84 7.58 74

3 Year

7.15 7.47 32

5 Year

7.20 7.78 58

10 Year

7.35 7.96 61

Source: Refinitiv Value as on

Dec 02, 2022

• Yields on gilt fell in the range of 4 to 20 bps

across the maturities, barring 1 year paper

that rose 1 bps. Yield fell the most on 3 year

paper.

• Corporate bond yields fell by up to 10 bps

across the curve. Yield fell the most on 8 to 10

year papers and the least on 3 year paper.

• Difference in spread between AAA corporate

bond and gilt expanded 1, 2, 4 or 18 across the

segments, leaving 1, 10 & 15 year papers that

contracted 7, 2 & 4 bps, respectively.

Domestic Debt Market (Spread Analysis)

-10

-6

-3

5.50

6.00

6.50

7.00

7.50

8.00

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

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

Change in bps 02-Dec-22 25-Nov-22

Yield in %

Change in bps

Source: Refinitiv

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

• The Reserve Bank of India will introduce the first pilot programme for retail digital rupees

on Dec 01, 2022. The pilot would cover select locations in closed user group (CUG) that

consists of participating customers and merchants. The digital rupee would be in the form

of a digital token that represents legal tender. It would be distributed in the same

denominations that coins and paper money are now distributed in.

• Sebi has allowed brokers to extend the margin trading facility (MTF) to equity exchange

traded funds (ETFs) and such funds can be used as collateral as well. Only a few stocks that

fall under the category of Group 1 securities are now offered the MTF option by brokers.

According to Sebi, the client's initial margin payment to the stock broker should be made in

cash, cash equivalents, or equity ETFs.

• Sebi has implemented a revamped framework in order to obtain its prior consent for

changes in control of stock brokers, depository participants, and other market

intermediaries. The framework will apply to stock brokers and clearing members, depository

participants, investment advisers, research analysts and research entities, registrars to

issues, share transfer agents, and KYC (Know Your Client) Registration Agencies (KRAs).

• According to the Union Minister, the government hopes to double the economy's

contribution from India's micro, small, and medium-sized companies sector by maximising its

potential. The Minister of State for MSME said the Ministry is advancing this goal by

removing barriers.

Regulatory Updates in India

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

• Sebi has established three different committees in a renewed effort to modernise the

capital markets and increase the ease of doing business. All three committees, which

discuss important topics including foreign portfolio investors (FPIs), the takeover law, and

the recently established idea of social stock exchanges, will have a strong stakeholder

presence.

•

Sebi has set caps on the percentage of assets an actively managed fund can park in a single

company's debt instruments although the restriction varies depending on each issuer's

credit rating. A mutual fund scheme is not permitted to invest more than 10% of its net

asset value in debt and money market securiti

es of corporations with a "AAA" rating, per

the rules. The exposure limit for organisations with a "AA" rating is 8%, whereas it is 6% for

organisations with a "A" rating. With the previous consent of the board of trustees and the

board of directors of the asset management business, the limitations may be increased by

an additional 2%.

• IR

DAI has raised the maximum tie-up restriction for corporate agents, such as banks and

insurance marketing firms (IMFs). Instead of the current restriction of three insurers, the

insurance regulator has permitted corporate agents to affiliate with a maximum of nine

insurers. Banks can use this to offer insurance products from nine independent life, non-

life, and health insurers. IRDAI increased the restriction for IMFs from two to six insurers in

each insurance category.

Regulatory Updates in India (contd..)

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• According to the Labor Department, U.S. non-farm payroll employment rose to 263,000

jobs in Nov 2022 as compared to upwardly revised 284,000 jobs in Oct 2022. Meanwhile,

the Labor Department said the unemployment rate held at 3.7% Nov 2022, unchanged

from Oct 2022.

• According to Eurostat, eurozone’s unemployment rate fell 6.5% in Oct 2022 from 6.6% in

Sep 2022. The number of people out of work decreased 1.053 million from the last year to

10.872 million in Oct 2022.

• According to flash estimate from Eurostat, eurozone inflation slowed more than expected

to 10% in Nov 2022 from 10.6% in Oct 2022.

• According to Destatis, Germany’s jobless rate held steady at seasonally adjusted 3% in Oct

2022. The number of unemployed totaled 1.33 million.

• According to S&P Global, China’s Caixin manufacturing Purchasing Managers' Index rose

moderately to 49.4 in Nov 2022 from 49.2 in Oct 2022. China's manufacturing sector

continued to contract due to the sustained reductions in output and sales.

• According to a survey by Jibun Bank, Japan’s manufacturing Purchasing Managers' Index

fell into contraction to 49 in Nov 2022 from 50.7 in Oct 2022.

Global News/Economy

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Global Indices

Indices

02-Dec-22

1-Week

Return

YTD

Return

Russell 3000 1,857.05 1.70% -23.89%

Nasdaq 100 11,994.26 2.03% -26.51%

FTSE 100 7,556.23 0.93% 2.32%

DAX Index 14,529.39 -0.08% -8.53%

Nikkei Average 27,777.9 -1.79% -3.52%

Straits Times 3,259.14 0.45% 4.34%

Source: Refinitiv

Value as on Dec 02, 2022;

U.S.

• U.S. equity markets rose after remarks by

the U.S. Fed Chief indicated that the U.S.

central bank plans to slow its aggressive

pace of interest rate hikes from Dec 2022.

Market sentiments were further boosted

after U.S. nonfarm payroll employment

data for Nov 2022 came better than

market expectations.

Europe

• European equity markets mostly rose after data showed that inflation in eurozone slowed

more than expected in Nov 2022. Market sentiments were further boosted after the U.S.

Fed Chief indicated that smaller interest rate hikes could begin in Dec 2022. Gains were

extended after U.S. nonfarm payroll employment data for Nov 2022 came better than

expected which allayed fears of a global economic slowdown.

Asia

• Asian equity markets mostly rose as China reported a modest decline in new Covid-19

infections and after Chinese health authorities reported a recent increase in senior

vaccination rates, which is considered to be vital to restarting the economy that has been

subject to occasional lockdowns.

Global Equity Markets

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• Yields on the 10-year U.S. Treasury fell by 20

bps to close at 3.50% as compared to the

previous week’s close of 3.70%.

• U.S. Treasury prices rose after the U.S.

Federal Reserve Chief struck a more dovish

tone than the market expected, saying the

U.S. central bank could slow the pace of rate

hikes from Dec 2022.

• However, gains were capped after U.S. jobs

data for Nov 2022 came better than market

expectations which fanned concerns that

the U.S. Federal Reserve might stick with its

aggressive monetary policy tightening.

Global Debt (U.S.)

3.15

3.48

3.80

4.13

28-Nov 29-Nov 30-Nov 1-Dec 2-Dec

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

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Performance of various commodities

Commodities

Last Closing* 1-Week Ago

Brent Crude($/Barrel)

88.61 86.69

Gold ($/Oz)

1,785.47 1,756.14

Gold (Rs/10 gm)

53,447 52,444

Silver ($/Oz)

22.38 21.59

Silver (Rs/Kg)

64,304 61,654

Source: Refinitiv *Value as on Dec 02, 2022;

Gold

• Gold prices rose on growing possibility that

the U.S. Fed might slow down its pace of

monetary policy tightening from Dec 2022.

However, gains were capped after upbeat

U.S. jobs data for Nov 2022 fanned

concerns that the U.S. Fed might stick with

its aggressive monetary policy tightening.

Brent Crude

• Brent crude oil prices rose on hopes for a

resurgence in Chinese demand after China

indicated easing of its Covid-19 restrictions.

However, gains were capped ahead of a

meeting of the OPEC+ and a ban on

Russian crude by the European Union.

Baltic Dry Index

• The index closed unchanged due to steady

capesize and panamax activities.

Commodities Market

8.00

9.00

10.00

11.00

12.00

13.00

2-Nov-22 12-Nov-22 22-Nov-22 2-Dec-22

Global Commodity Movement

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

Global Commodity Prices

Rebased to 10

Source: Refinitiv

2.21%

1.67%

3.66%

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Movement of Rupee vs Other Currencies

Currency

Last Closing* 1-Wk Ago

US Dollar

81.18 81.53

Pound Sterling

99.31 98.66

EURO

85.46 84.87

100 Yen

60.07 58.79

Source: Refinitiv Figures in INR , *

Value as on Dec 02, 2022

Rupee

• Rupee rose against U.S. dollar on growing

hopes of China gradually reopening its

economy and comments from the U.S. Fed

Chair that U.S. central bank would slow the

pace of rate hikes as early as Dec.

Euro

• Euro gained against the U.S. dollar after U.S.

Fed Chairman indicated that U.S. central bank

could scale back the pace of its rate hikes as

soon as Dec 2022.

Pound

• Pound rose against the U.S. dollar after U.S.

Fed Chair said U.S. government could slow the

rate of interest rate hikes as early as Dec 2022.

Yen

• Yen surged against the U.S. dollar after U.S.

Fed Chairman indicated that the U.S. central

bank could scale back the pace of its interest

rate hikes as soon as Dec 2022.

Currencies Markets

9.20

9.60

10.00

10.40

10.80

2-Nov-22 12-Nov-22 22-Nov-22 2-Dec-22

USD GBP Euro JPY

Source: Refinitiv

Currency Prices ( in terms of INR)

Rebased to 10

Currency Movement

-0.43%

2.18%

0.70%

0.66%

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The Week that was…

Nov to 02

Dec

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The Week that was (Nov 28 – Dec 02)

Date Events

Present

Value

Monday,

November 28, 2022

• Eurozone M3 Money Supply (YoY)(Oct) 5.10% 6.30%

• Eurozone Private Loans (YoY)(Oct) 4.20% 4.40%

Tuesday,

November 29, 2022

• Germany Harmonized Index of Consumer Prices (YoY)(Nov) PREL 11.30% 11.60%

• Eurozone Consumer Confidence(Nov) -23.9 -23.9

• U.S. Housing Price Index (MoM)(Sep) 0.10% -0.70%

• Japan Unemployment Rate(Oct) 2.60% 2.60%

• Japan Retail Trade (YoY)(Oct) 4.30% 4.80%

Wednesday,

November 30, 2022

• India GDP Growth Rate (YoY) (Q3) 6.30% 13.50%

• India Infrastructure Output (YoY) (Oct) 0.10% 7.80%

• India Government Budget Value (Oct) -7581.4B -6198.5B

• U.S. Gross Domestic Product Annualized(Q3) PREL 2.90% 2.60%

• China NBS Manufacturing PMI(Nov) 48.0 49.2

• Eurozone Harmonized Index of Consumer Prices (YoY)(Nov) PREL 10.00% 10.60%

• Germany Unemployment Rate (Nov) 5.60% 5.50%

Thursday,

December 01, 2022

• India S&P Global Manufacturing PMI (Nov) 55.7 55.3

• Germany Retail Sales (YoY)(Oct) -5% -0.90%

• China Caixin Manufacturing PMI(Nov) 49.4 49.2

Friday,

December 02, 2022

• U.S. Nonfarm Payrolls(Nov) 263K 284K

• U.S. Unemployment Rate(Nov) 3.70% 3.70%

• Germany Trade Balance (Oct) (Euro) 6.9B 2.8B

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

The Week Ahead

Dec to 09

Dec

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Day Event

Monday,

Dec 05, 2022

• India S&P Global Services PMI (Nov)

• U.S. ISM Services PMI (Nov)

• Eurozone Retail Sales (YoY)(Oct)

• Eurozone S&P Global Composite PMI (Nov)

• Germany S&P Global/BME Composite PMI (Nov)

• China Caixin Services PMI (Nov)

• U.S. Factory Orders (MoM)(Oct)

Tuesday,

Dec 06, 2022

• Japan Overall Household Spending (YoY)(Oct)

• Germany Factory Orders (MoM)(Oct)

• U.S. Goods and Services Trade Balance (Oct)

Wednesday,

Dec 07, 2022

• Reserve Bank of India Interest Rate Decision

• Eurozone Gross Domestic Product (QoQ)(Q3)

• China Trade Balance (USD) (Nov)

Thursday,

Dec 08, 2022

• Japan Gross Domestic Product (QoQ)(Q3)

• Japan Eco Watchers Survey: Outlook (Nov)

• Japan Current Account (Oct)

• U.S. Initial Jobless Claims (Dec 2)

Friday,

Dec 09, 2022

• China Consumer Price Index (YoY)(Nov)

• U.S. Michigan Consumer Sentiment Index(Dec) PREL

• China Producer Price Index (YoY)(Nov)

The Week Ahead

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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

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