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NEWS U CAN USE
Dec 06, 2024
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The Week that was…
02
nd
Dec to 06
th
Dec
2
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Indian Economy
• The Monetary Policy Committee (MPC) in its fifth bi-monthly monetary policy review of
FY25 kept key policy repo rate unchanged at 6.50% for the eleventh consecutive time. The
standing deposit facility rate also remained unchanged at 6.25%. Four out of six members
voted to keep the policy repo rate unchanged. The MPC also decided to continue with the
neutral monetary policy stance and to remain unambiguously focused on a durable
alignment of inflation with the target, while supporting growth. The RBI has decided to
reduce the cash reserve ratio of all banks to 4.0% of net demand and time liabilities in two
equal tranches of 25 bps each w.e.f. the fortnight beginning Dec 14, 2024 and Dec 28,
2024.
• The RBI has projected CPI inflation for FY25 at 4.8% with Q3 at 5.7% and Q4 at 4.5%. CPI
inflation for Q1 FY26 is projected at 4.6% and Q2 at 4.0%.
• The RBI has projected real GDP growth for FY25 at 6.6% with Q3 at 6.8% and Q4 at 7.2%.
Real GDP growth for Q1 FY26 is projected at 6.9% and Q2 at 7.3%.
• The Manufacturing Purchasing Managers' Index fell to 56.5 in Nov 2024 compared to 57.5
in Oct 2024. The reading indicated a notable enhancement in the sector, characterized by
steady yet decelerated growth in new business and production. This strong demand was
tempered by competitive forces and pricing pressures.
• The total gross goods and services tax (GST) revenue grew 8.5% YoY to over Rs 1.82 lakh
crore in Nov 2024 as compared to Rs. 1.68 lakh crore in Nov 2023.
3
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4
Domestic Equity Market Indices
Indices
06-Dec-24 1 Week Return YTD Return
BSE Sensex
81,709.12 2.39% 13.11%
Nifty 50
24,677.80 2.27% 13.56%
BSE Mid
-Cap 47,669.72 3.47% 29.40%
BSE Small
-Cap 57,050.71 3.35% 33.69%
Source: Refinitiv
Values as on Dec 06, 2024
• Domestic equity markets rose for the
third consecutive week as key
benchmark indices BSE Sensex and
Nifty 50 rose 2.39% and 2.27%,
respectively. The rally was broad-based
as the mid-cap segment and the small-
cap segment both closed the week in
green.
• Domestic equity markets rose on
expectations of policy easing by the RBI
following the weaker-than-expected
GDP figure of domestic economy in Q2
FY25. Meanwhile, the RBI in its Dec
2024 policy meeting kept repo rate
unchanged at 6.5% for the eleventh
consecutive time but reduced the cash
reserve ratio by 50 bps to 4.0% to
boost liquidity. A positive turnaround
from foreign institutional investors to
domestic equity markets during the
week also boosted the sentiment.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
23.34 22.72 40.87 34.27
P/B
4.14 3.68 4.84 3.95
Dividend Yield
1.13 1.24 0.71 0.58
Source: NSE, BSE
Values as on Dec 06, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
02-Dec-24 1,782 1,047 1.70
03-Dec-24 2,044 760 2.69
04-Dec-24 1,655 1,122 1.48
05-Dec-24 1,447 1,316 1.10
06-Dec-24 1,671 1,119 1.49
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
BSE Auto
54,162.35 2.39% -1.03%
BSE Bankex
60,995.64 2.86% 2.25%
BSE CD
65,683.32 5.15% 6.15%
BSE CG
72,814.68 2.99% 3.32%
BSE FMCG
21,171.20 -0.20% -1.94%
BSE HC
44,509.74 1.93% 0.07%
BSE IT
44,522.53 4.06% 5.80%
BSE Metal
31,688.29 3.77% -1.37%
BSE Oil & Gas
27,329.58 1.93% -2.62%
Source:BSE
Values as on Dec 06, 2024
• On the BSE sectoral front, BSE Realty gained
5.41% following the report by realtors' apex
body CREDAI, that showed average housing
prices across the top eight markets in India rose
11% YoY at Rs. 11,000 per sq.ft. during Jul-Sep
quarter of 2024-25, led by robust demand and
positive market sentiments.
• BSE IT rose 4.06% following U.S. Federal
Reserve Chairman’s optimistic comments about
the U.S. economy.
Indian Derivatives Market Review
• Nifty Dec 2024 Futures stood at 24,783.25, a premium of 105.45 points above the spot
closing of 24,677.80.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1,062.56 lakh crore as against Rs. 1,581.54 lakh crore for the week to Nov 29.
• The Put-Call ratio stood at 0.84 compared with the previous week’s close of 0.86.
• The Nifty Put-Call ratio stood at 1.03 compared with the previous week’s close of 1.08.
Indian Equity Market (contd.)
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6.60
6.65
6.70
6.75
6.80
2-Dec 3-Dec 4-Dec 5-Dec 6-Dec
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 6.75 6.34 6.51
91 Day T-Bill
6.39 6.49 6.48 6.88
07.06% 2028, (5 Yr GOI)
6.69 6.68 6.76 7.03
06.79% 2034, (10 Yr GOI)
6.75 6.75 6.79 7.06
Source: Refinitiv Values as on Dec 06, 2024
• Bond yields initially fell on expectations
of monetary easing by the RBI following
the weaker-than-expected domestic
economic growth data of Q2 FY25.
However, gains were erased after the RBI
maintained the repo rate at 6.50% in Dec
2024 monetary policy meeting.
• Yield on the 10-year benchmark paper
(6.79% GS 2034) was unchanged to close
at 6.75% from the previous week’s close.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
increased to $658.09 billion for the week
ended Nov 29, 2024 compared with
$656.58 billion a week earlier.
Domestic Debt Market
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-12
-9
-6
-3
0
6.00
6.50
7.00
7.50
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 06-Dec-24 29-Nov-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 6.76 7.56 80
3 Year 6.80 7.57 77
5 Year 6.79 7.51 72
10 Year 6.85 7.31 46
Source: Refinitiv
Values as on Dec 06, 2024
• Yields on gilt fell up to 5 bps across the maturities,
barring 7, 11, 13 & 14 year papers that rose by 1 or 2
bps.
• Corporate bond yields increased between 2 to 16
bps across the curve, barring 1 year paper that fell
by 3 bps.
• Difference in spread between AAA corporate bond
and gilt expanded between 2 to 18 bps across the
segments.
Domestic Debt Market (Spread Analysis)
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8
• Government has scrapped the windfall profit tax on domestically produced crude oil and
exported jet fuel, diesel, and petrol, due to declining international oil prices. The
government has collected Rs. 44,000 crore from the windfall tax since it was first imposed in
Jul, 2022.
• The Insurance Amendment Bill 2024 will probably be introduced by the government in the
upcoming parliamentary session. This bill proposes the introduction of an open architecture
model for insurance agents. The Department of Financial Services of Govt. of India has
proposed to omit the clause, which makes it mandatory for insurance agents to work with
only one life, one health and one non-life insurer. The proposal would permit insurance
agents to work with more than one insurance companies if it were approved.
• According to a consultation paper published the SEBI, the regulator has advised the market
intermediaries including the mutual fund distributors and associated persons of the asset
management companies not to be associated directly or indirectly with a person or entity
making claims on performance and returns.
• The Lok Sabha passed the Banking Laws (Amendment) Bill, 2024, which allows bank account
holders to have up to four nominees in their accounts.
Regulatory Updates in India
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9
• According to the Ministry of Ports, Shipping and Waterways, government is likely to offer
subsidies to cargo owners for goods transportation via inland waterways for three years to
boost transportation of goods by rivers, which accounts for only 2% of India’s total freight
movement. The proposed move, where there will be a 35% subsidy for river transportation
on national waterways 1, 2 and 16, will likely lead to the shifting of around 800 million
tonne-kilometre of cargo to inland waterways.
• The Department of Financial Services (DFS) of Finance Ministry has proposed imposing
severe penalties on insurance companies and intermediaries, such as banks and insurance
brokers, for mis-selling, in an amendment to the Insurance Act 1938. The DFS has
proposed levy of fine ranging from a minimum of Rs. 1 crore to a maximum of Rs. 5 crore
for mis-selling. However, individual agents will be exempted from this as insurers will be
responsible for their acts. The DFS has proposed imposing a penalty ranging from Rs. 10
lakh to Rs. 1 crore for selling insurance policies without registration or invalid license.
Regulatory Updates in India (contd..)
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• According to the Labor Department, U.S. non-farm payroll employment shot up by 227,000
jobs in Nov 2024 after rising by an upwardly revised 36,000 jobs in Oct 2024. Economists
had expected employment to jump by 200,000 jobs compared to the uptick of 12,000 jobs
originally reported for the previous month.
• According to the Institute for Supply Management, U.S. manufacturing PMI rose to 48.4 in
Nov 2024 from 46.5 in Oct 2024, although a reading below 50 still indicates contraction.
Economists had expected the index to inch up to 47.5.
• According to Destatis, Germany’s industrial output registered a 1.0% decrease in Oct 2024.
The decline confounded expectations for an increase of 1.0%. Production was down by a
revised 2.0% in Sep 2024. On a yearly basis, industrial production slid 4.5% after a 4.3% fall.
• According to Eurostat, eurozone’s jobless rate came in at a seasonally adjusted 6.3%, the
same as in Sep 2024 and also matched expectations. The rate was below the 6.6% posted
in Oct 2023.
• According to a survey, China’s manufacturing PMI score of 51.5 in Nov 2024. That's up from
50.3 in Oct 2024, and it moves further above the boom-or-bust line of 50 that separates
expansion from contraction.
• According to a survey, Japan’s manufacturing PMI score of 49.0 in Nov 2024. That's down
from 49.2 in Oct 2024, and it moves further beneath the boom-or-bust line of 50 that
separates expansion from contraction.
10
Global News/Economy
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11
Global Indices
Indices
06-Dec-24
1-Week
Return
YTD
Return
Russell 3000 3,256.91 3.42% 35.55%
Nasdaq 100 21,622.25 3.31% 28.51%
FTSE 100 8,308.61 0.26% 7.44%
DAX Index 20,384.61 3.86% 21.69%
Nikkei Average 39,091.17 2.31% 16.81%
Straits Times 3,796.16 1.52% 17.16%
Source: Refinitiv Value as on Dec 06, 2024
U.S.
• U.S. equity markets mostly rose after the
U.S. employment Nov 2024 figures were
released, showing a performance that
exceeded expectations, but not to an
extent that would prevent the U.S. Fed
from considering another interest rate
cut later this month. The rise in the U.S.
unemployment rate has bolstered
expectations that the U.S. Fed will reduce
interest rates by an additional 25 basis
points later this month.
Europe
• European equity markets rose despite political uncertainty in France, and lingering
concerns about geopolitical tensions. Furthermore, the market rose as mining, energy, and
technology stocks have experienced an increase following the announcement of new U.S.
restrictions on technology exports to China, which were less stringent than previously
suggested.
Asia
• Asian equity markets mostly rose as Chinese and Hong Kong markets were showing strong
performance ahead of an annual economic policy meeting set to take place next week.
Global Equity Markets
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4.10
4.12
4.14
4.16
4.18
4.20
4.22
4.24
2-Dec 3-Dec 4-Dec 5-Dec 6-Dec
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury fell
by 4 bps to close at 4.15% from the
previous week’s close of 4.19%.
• U.S. Treasury prices rose following the
publication of the Nov 2024 U.S. payroll
data, investors interpreted the figures
as an indication that the U.S. Federal
Reserve may implement an additional
rate cut during its meeting scheduled in
Dec 2024.
• Further, prices rose after softer
economic data offset Federal Reserve
officials' hawkish comments, and
markets continued to price in a 25-basis
point interest rate cut at the U.S. central
bank's Dec 2024 meeting.
Global Debt (U.S.)
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9.00
9.50
10.00
10.50
6-Nov-24 22-Nov-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($/Barrel)
74.71 75.45
Gold ($/Oz)
2,632.91 2,653.55
Gold (Rs/10 gm)
75,910 76,400
Silver ($/Oz)
30.98 30.60
Silver (Rs/Kg)
90,813 89,351
Source: Refinitiv *Value as on Dec 06,
2024
Gold
• Gold prices fell as the greenback climbed
higher after the new U.S. President
threatened to impose a 100% tariff on
BRICS countries if they pursue new
currency alternatives to the U.S. dollar.
Brent Crude
• Brent crude oil prices fell on concerns
about excess supply. Further, prices fell on
concerns regarding the prospects for oil
demand originating from China. Losses
were increased on concerns that the U.S.
Federal Reserve will not cut interest rates
again at its Dec 2024 meeting.
Baltic Dry Index
• The index fell over the week due to
sluggish capesize and panamax activities.
Commodities Market
06-Dec-24
-0.98%
-0.78%
1.23%
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9.40
9.60
9.80
10.00
10.20
10.40
10.60
6-Nov-24 22-Nov-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
84.66 84.50
Pound Sterling
107.91 107.46
EURO
89.53 89.36
100 Yen
56.50 56.31
Source: Refinitiv Figures in INR , *Value as on
Dec 06, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar due to strong greenback demand
and disappointing macroeconomic data.
Euro
• The euro fell against the greenback due to
concerns about political uncertainty in France.
Pound
• Pound edged up against the U.S. dollar despite
upbeat U.S. nonfarm payrolls' data for Nov
2024.
Y
en
• Yen fell against the U.S. dollar despite investors
raising their expectations for an interest rate
increase by the Bank of Japan.
Currencies Markets
06-Dec-24
0.19%
0.34%
0.20%
0.42%
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15
The Week that was…
02
nd
Dec to 06
th
Dec
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16
The Week that was (Dec 02 – Dec 06)
Date Events
Present
Value
Previous
Value
Monday,
December 02, 2024
• China Caixin Manufacturing PMI (Nov) 51.50 50.30
• U.S. ISM Manufacturing PMI (Nov) 48.40 46.50
• Germany HCOB Manufacturing PMI (Nov) 43.00 43.20
• Eurozone Unemployment Rate (Oct) 6.30% 6.30%
Tuesday,
December 03, 2024
• U.K. BRC Like-For-Like Retail Sales (YoY) (Nov) -3.40% 0.30%
• U.S. JOLTS Job Openings (Oct) 7.744M 7.372M
Wednesday,
December 04, 2024
• China Caixin Services PMI (Nov) 51.50 52.00
• Germany HCOB Composite PMI (Nov) 47.20 47.30
• Eurozone HCOB Composite PMI (Nov) 48.30 48.10
• Eurozone Producer Price Index (MoM) (Oct) 0.40% -0.60%
• U.S. ISM Services PMI (Nov) 52.10 56.00
• U.S. S&P Global Composite PMI (Nov) 54.90 55.30
• U.S. ADP Employment Change (Nov) 146K 184K
Thursday,
December 05, 2024
• Eurozone Retail Sales (YoY) (Oct) 1.90% 3.00%
• Germany Factory Orders (YoY) (Oct) 5.70% 4.20%
• Japan Labor Cash Earnings (YoY) (Oct) 2.60% 2.50%
• U.S. Initial Jobless Claims (Nov 29) 224K 215K
Friday,
December 06, 2024
• Reserve Bank of India Interest Rate Decision 6.50% 6.50%
• Eurozone Gross Domestic Product s.a. (QoQ) (Q3) 0.40% 0.40%
• Germany Industrial Production (YoY) (Oct) -4.50% -4.30%
• U.S. Nonfarm Payrolls (Nov) 227K 36K
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
09
th
Dec to 13
th
Dec
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
The Week Ahead
Day Event
Monday,
Dec 09, 2024
• China Consumer Price Index (YoY) (Nov)
• Eurozone Sentix Investor Confidence (Dec)
• Japan Eco Watchers Survey: Current (Nov)
Tuesday,
Dec 10, 2024
• Germany Harmonized Index of Consumer Prices (YoY) (Nov)
• U.S. Nonfarm Productivity (Q3)
• Japan Producer Price Index (MoM) (Nov)
• China Imports (YoY) CNY (Nov)
Wednesday,
Dec 11, 2024
• U.S. Consumer Price Index (MoM) (Nov)
• Japan Foreign Investment in Japan Stocks (Dec 6)
Thursday,
Dec 12, 2024
• India Inflation Rate (YoY) (Nov)
• India Industrial Production (YoY) (Oct)
• Eurozone ECB Main Refinancing Operations Rate
• U.S. Producer Price Index (MoM) (Nov)
Friday,
Dec 13, 2024
• Germany Trade Balance (Oct)
• U.K. Gross Domestic Product (MoM) (Oct)
• U.K. Industrial Production (MoM) (Oct)
• Eurozone Industrial Production (MoM) (Oct)
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
India’s views or opinions, which in turn may have been formed on the basis of such data or information. The Sponsor(s), the Investment Manager, the
Trustee or any of their respective directors, employees, associates or representatives do not assume any responsibility for, or warrant the accuracy,
completeness, adequacy and reliability of such data or information. Whilst no action has been solicited based upon the
information provided herein,
due care has been taken to ensure that the facts are accurate and opinions given are fair and reasonable, to the extent possible. This information is
not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Recipients of this information should rely
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19
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