News You Can Use of 13 December 2024

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NEWS U CAN USE

Dec 13, 2024

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Dec to 13

Dec

The Week that was…

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Indian Economy

• The consumer price index-based inflation eased to 5.48% YoY in Nov 2024 compared to

6.21% in Oct 2024, driven by moderating vegetable prices and stabilized edible oil costs.

Consumer food price inflation decreased to 9.04% YoY in Nov 2024 from 10.87% in Sep

2024.

• Index of Industrial production (IIP) rose 3.5% YoY in Oct 2024, as compared to 3.1% rise in

Sep 2024. Production in mining, manufacturing and electricity witnessed a growth of 0.9%,

4.1% and 2.0%, respectively, in Oct 2024.

• The Indian government has requested parliament's approval for additional spending of Rs.

86,730 crore for FY25. Of this, Rs. 44,183 crore will be net new spending, while the

remainder will be covered by reshuffling existing expenses.

• According to the data of the Department for Promotion of Industry and Internal Trade,

foreign direct equity investment (FDI) witnessed a 45% jump at $29.8 billion in the first six

months of FY25. Singapore continued as the top investor with $7.53 billion FDI during Apr-

Sep of this fiscal. This was followed by investment from Mauritius, Netherlands, the United

Arab Emirates and the United States.

• The Asian Development Bank lowered India's economic growth forecast to 6.5% for FY25

from its earlier estimate of 7% due to lower-than-expected growth in private investment

and housing demand. The multilateral development bank has also lowered India's 2025-26

forecast to 7% from 7.2%.

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

Indian Equity Market

• Domestic equity markets rose for the

fourth consecutive week as key

benchmark indices BSE Sensex and

Nifty 50 rose 0.52% and 0.37%,

respectively. The mid-cap segment

closed the week in green, however, the

small-cap segment closed the week in

red.

• Domestic equity markets rose led by

heavyweight information technology

stocks following an in-line U.S. CPI data

of Nov 2024 which cemented

expectations of another interest rate

cut from the Federal Reserve in Dec

2024 monetary policy meeting.

• Sentiment was boosted after China's

senior leadership committed to easing

monetary policy and offering additional

support to bolster the faltering

economy.

Domestic Equity Market Indices

Indices

13-Dec-24

1 Week

Return

YTD

Return

BSE Sensex

82,133.13 0.52% 13.69%

Nifty 50

24,768.30 0.37% 13.97%

BSE Mid

-Cap 47,776.62 0.22% 29.69%

BSE Small

-Cap 56,957.46 -0.16% 33.47%

Source: Refinitiv

Values as on Dec 13, 2024

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

09-Dec-24 1,496 1,324 1.13

10-Dec-24 1,381 1,405 0.98

11-Dec-24 1,491 1,288 1.16

12-Dec-24 895 1,913 0.47

13-Dec-24 1,191 1,589 0.75

Source: NSE

Ratios

BSE Sensex Nifty 50

BSE Mid

Cap

BSE Small

Cap

P/E

23.46 22.80 40.96 34.21

P/B

4.16 3.69 4.85 3.94

Dividend Yield

1.12 1.22 0.71 0.58

Source: NSE, BSE

Values as on Dec 13, 2024

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• On the BSE sectoral front, BSE IT rose 2.62%

as investors braced for a rate cut by the U.S.

Federal Reserve in its Dec 2024 policy meeting

following an in-line U.S. retail inflation print of

Nov 2024. Additionally, expectation of an

increase in U.S. spending propelled the

information technology sector.

• BSE Consumer Durables gained 1.76% on

expectations of a revival in consumer

spending driven by the year-end holidays.

Further, as ease in domestic retail inflation

rate in Nov 2024 also boosted the sentiment

for the sector.

Indian Derivatives Market Review

• Nifty Dec 2024 Futures stood at 24,830.75, a premium of 62.45 points above the spot

closing of 24,768.30.

• The total turnover on NSE’s Futures and Options segment for the week stood at Rs. 870.10

lakh crore as against Rs. 1,062.56 lakh crore for the week to Dec 06.

• The Put-Call ratio stood at 0.94 compared with the previous week’s close of 0.84.

• The Nifty Put-Call ratio stood at 1.12 compared with the previous week’s close of 1.03.

Indian Equity Market (contd.)

Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

BSE Auto

53,861.1 -0.56% 4.70%

BSE Bankex

60,997.4 0.00% 6.64%

BSE CD

66,838.8 1.76% 11.13%

BSE CG

73,065.9 0.35% 10.83%

BSE FMCG

20,864.1 -1.45% 0.61%

BSE HC

44,049.9 -1.03% 3.80%

BSE IT

45,687.9 2.62% 8.60%

BSE Metal

31,741.2 0.17% 7.78%

BSE Oil & Gas

27,081.4 -0.91% 2.86%

Source: BSE Values as on Dec 13,

2024

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

6.68

6.70

6.72

6.74

6.76

9-Dec 10-Dec 11-Dec 12-Dec 13-Dec

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Domestic Debt Market

• Bond yields fell after jobs data of U.S.

in Nov 2024 reaffirmed the

expectations of rate cut by the Federal

Reserve in Dec 2024. Gains were

extended following lower-than-

expected cutoff yields at the weekly

debt sale. However, gains were limited

following an elevated U.S. Treasury

yields.

• Yield on the 10-year benchmark paper

(6.79% GS 2034) fell by 1 bps to close

at 6.73% from the previous week’s

close of 6.74.

• Data from Reserve Bank of India

showed that India's foreign exchange

reserves decreased to $654.86 billion

for the week ended Dec 06, 2024

compared with $658.09 billion a week

earlier.

Debt Indicators

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

(Yield %)

Call Rate

6.68 6.56 6.39 6.48

91 Day T

-Bill

6.46 6.39 6.48 6.86

07.06% 2028, (5 Yr GOI)

6.67 6.69 6.74 7.00

06.79% 2034, (10 Yr GOI)

6.73 6.74 6.80 7.04

Source: Refinitiv

Values as on Dec 13, 2024

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Domestic Debt Market (Spread Analysis)

• Yields on gilt fell up to 3 bps across the

curve, barring 1, 2 & 19 year papers that

rose by 3 or 5 bps.

• Corporate bond yields fell up to 5 bps

across the curve, barring 1, 2 & 15 year

papers that rose 6, 4 & 5 bps, respectively,

while 3 year paper remained steady.

• Difference in spread between AAA

corporate bond and gilt expanded up to 8

bps across the segments, barring 4 to 7

year papers that contracted between 2 to

4 bps.

Maturity

Sec Yield (%)

Corporate Yield (%)

Spread bps

1 Year 6.79 7.62 83

3 Year 6.79 7.55 76

5 Year 6.77 7.47 70

10 Year 6.84 7.3 46

Source: Refinitiv Values as on Dec

13, 2024

-4

6.00

6.33

6.66

6.99

7.32

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

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

Change in bps 13-Dec-24 06-Dec-24

Yield in %

Change in bps

Source: Refinitiv

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

• The government has launched a women centric distribution channel called Bima Sakhi

Yojana to increase the penetration of insurance and offer social security to women. Under

this scheme, the government will appoint at least 2 lakh women agents through LIC India

within 3 years. Women who are in the age group of 18 to 70 and have cleared matriculation

can become insurance agents under this scheme. These women will be entitled to get

stipend for 36 months i.e. Rs. 7000 per month for 12 months, Rs. 6000 per month for the

next 12 months and Rs. 5000 per month in the third year for 12 months.

• According to a consultation paper published by the SEBI, the capital market regulator has

asked AMCs and Depository Participants to provide details of mutual funds and stock

holdings of investors in DigiLocker. Further, DigiLocker users can provide nominee details

for their DigiLocker account. Upon death of an investor, DigiLocker will send an intimation

to the nominee via SMS and email to access the digital information of the deceased.

• Indian clean energy companies will have to use solar photovoltaic (PV) modules from cells

manufactured locally by a list of companies approved by the government starting from Jun

2026, to reduce imports from leading supplier China. Currently, India has a solar PV module-

making capacity of about 80 GW, while its cell-making capacity is slightly more than 7 GW,

with companies largely relying on Chinese cells to make modules. The government plans to

increase its non-fossil fuel capacity to 500 GW by 2030 from about 156 GW at present.

Regulatory Updates in India

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• According to a consultation paper by the SEBI, mutual fund distributors cannot make any

claims on returns or performance of capital market products like stocks and mutual funds

and give unsolicited financial advice on social media w.e.f. Jan 21, 2025.

• Banks are progressively restricting fund transfers from family trusts to beneficiaries

residing outside the country, as they suspect these actions may be attempts to circumvent

the Reserve Bank of India's (RBI) limitations on gifts. These limitations predominantly

impact NextGen members who have established their residence abroad, thereby

complicating succession planning for family-owned enterprises. The heightened scrutiny is

a response to evolving regulations and increased oversight of fund outflows by regulatory

bodies.

• The government has lowered the limit of wheat stocks that traders and millers can hold to

only 1,000 metric tons of wheat, against 2,000 metric tons earlier to help boost availability

and moderate prices that hit a record high this month.

• According to the Labour Secretary, the Labour Ministry is enhancing its information

technology systems, enabling EPFO subscribers to withdraw provident funds directly from

ATMs by Jan 2025, in order to simplify claims and improve ease of living.

• According to Union Steel Minister, the Indian government is considering a 25% safeguard

duty on steel imports to address concerns raised by domestic producers about rising

imports, especially from China.

Regulatory Updates in India (contd..)

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• The European Central Bank has once again reduced its key interest rate by 25 basis points

on 12th Dec 2024, aligning with the forecasts of economists, as policymakers assessed that

the disinflation process is on track though growth concerns remain. The main refinancing

rate for the refi was reduced to 3.15% and the marginal lending facility rate to 3.40%.

• Japan’s gross domestic product expanded a seasonally adjusted 0.3% on quarter in the

third quarter of 2024, exceeding expectations for an increase of 0.2% following the

upwardly revised 0.5% increase in the three months prior (originally 0.2%).

• U.S. consumer price index climbed by 0.3% in Nov 2024 after rising by 0.2% for four

straight months. The increase matched expectations. The annual rate of growth by

consumer prices ticked up to 2.7% in Nov 2024 from 2.6% in Oct 2024, which was also in

line with estimates. The Labor Department said core consumer prices in Nov 2024 jumped

by 3.3% compared to the same month a year ago, unchanged from Oct 2024 and in line

with estimates.

• U.K. real gross domestic product shrank unexpectedly 0.1% in Oct 2024, the same pace of

decline as in Sep 2024. GDP was forecast to grow 0.1%.

• According to the customs office, China’s exports grew 6.7% annually in Nov 2024, which

was weaker than the 12.7% increase posted in Oct 2024. Economists had forecast an

annual growth of 8.5%. At the same time, imports decreased 3.9% from a year ago

compared to the 2.3% fall in Oct 2024. Imports were forecast to grow 0.3%.

Global News/Economy

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U.S.

• U.S. equity markets mostly fell after

producer prices in the U.S. rose more

than anticipated in Nov. However,

losses were limited following the U.S.

consumer inflation for Nov 2024 that

came in line with estimates, which

boosted confidence that the U.S. Fed

will cut rates by another 25 bps next

week.

Europe

• European equity markets mostly rose as investors were analysing the European Central

Bank's choice to reduce interest rates by 25 basis points and are considering the likelihood

of an additional reduction in the first quarter of 2025. However, gains reversed on

downbeat economic data from the U.K. and Germany, the political uncertainty in France.

Asia

• Asian equity markets closed on a mixed note. The market rose as a favorable U.S. inflation

report solidified the anticipation that the U.S. Federal Reserve will continue to reduce

interest rates at a policy meeting next week.

Global Equity Markets

Global Indices

Indices 13-Dec-24

1-Week YTD

Return Return

Russell 3000 3,260.14 0.10% 35.68%

Nasdaq 100 21,780.25 0.73% 29.44%

FTSE 100 8,300.33 -0.10% 7.33%

DAX Index 20,405.92 0.10% 21.81%

Nikkei Average 39,470.44 0.97% 17.95%

Straits Times 3,810.35 0.37% 17.59%

Source: Refinitiv Values as on Dec 13, 2024

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Global Debt (U.S.)

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

by 25 bps to close at 4.40% from the

previous week’s close of 4.15%.

• U.S. Treasury prices fell after data

revealed that the U.S. producer price

inflation exceeded forecasters'

expectations for Nov 2024 but

displayed some underlying weakness

and U.S. initial jobless claims increased

in the most recent week.

• Losses increased further, ahead of the

before the U.S. Federal Reserve policy

meeting, which is expected to lower

interest rates next week by 25 bps and

signal it will pause rate cuts as it

grapples with inflation running above its

2% annual target.

4.10

4.15

4.20

4.25

4.30

4.35

4.40

4.45

9-Dec 10-Dec 11-Dec 12-Dec 13-Dec

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

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

Gold

• Gold prices rose on expectations for a

rate cut by the U.S. Federal Reserve next

week and that was bolstered by the U.S.

inflation data which met market

expectations. Further, prices rose as

investors continued to pick up the safe-

haven asset

Brent Crude

• Brent crude oil prices rose amid hopes

demand from China will increase.

Furthermore, prices increase on possible

sanctions on Russia by the European

Union.

Baltic Dry Index

• The index fell over the week due to

sluggish capesize and panamax

activities.

Commodities Market

Performance of various commodities

Commodities

Last Closing* 1-Week Ago

Brent Crude($/Barrel)

76.83 74.71

Gold ($/Oz)

2,648.39 2,632.91

Gold (Rs/10 gm)

76,735 75,910

Silver ($/Oz)

30.57 30.98

Silver (Rs/Kg)

89,893 90,813

Source: Refinitiv; MCX *Values as on Dec 13,

2024

9.80

10.00

10.20

10.40

10.60

10.80

13-Nov-24 23-Nov-24 3-Dec-24 13-Dec-24

Global Commodity Movement

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

Global Commodity Prices

Rebased to 10

Source: Refinitiv

2.84%

0.59%

-1.33%

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Rupee

• The Indian rupee in the spot trade fell

against the U.S. dollar due to weakness in

other Asian peers.

Euro

• Euro fell against the U.S. dollar following

the European Central Bank’s decision to

cut interest rates.

Pound

• Pound fell against the U.S. dollar following

news reports that the U.K. economy

shrank unexpectedly in Oct 2024.

Yen

• Yen fell against the U.S. dollar as

economists predicted that the Bank of

Japan would likely keep interest rates

unchanged.

Currencies Markets

Movement of Rupee vs Other Currencies

Currency Last Closing* 1-Wk Ago

US Dollar

84.84 84.66

Pound Sterling

107.39 107.91

EURO

88.74 89.53

100 Yen

55.49 56.50

Source: RBI Figures in INR, *Values as on Dec 13, 2024

9.50

9.75

10.00

10.25

10.50

13-Nov-24 23-Nov-24 3-Dec-24 13-Dec-24

USD GBP Euro JPY

Source: Refinitiv

Currency Prices ( in terms of INR)

Rebased to 10

Currency Movement

0.22%

-1.79%

-0.89%

-0.49%

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The Week that was…

Dec to 13

Dec

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Dec 9

, 2024 - Dec 13

,2024

Date Events

Present

Value

Monday,

December 09, 2024

• China Consumer Price Index (YoY) (Nov)

0.20% 0.30%

• U.S. Wholesale Inventories (Oct)

0.20% 0.20%

• China Producer Price Index (YoY) (Nov)

-2.50% -2.90%

• Eurozone

Sentix Investor Confidence (Dec) -17.50 -12.80

Tuesday,

December 10, 2024

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

2.40% 2.40%

• China Exports (YoY) (Nov)

6.70% 12.70%

Wednesday,

December 11, 2024

• U.S. Consumer Price Index (MoM) (Nov)

0.30% 0.20%

• U.S. Monthly Budget Statement (Nov)

$-367B $-257B

Thursday,

December 12, 2024

• Eurozone European Central Bank (ECB) Main Refinancing Operations Rate

3.15% 3.40%

• U.S. Producer Price Index (MoM) (Nov)

0.40% 0.30%

• U.S. Initial Jobless Claims (Dec 6)

242K 225K

Friday,

December 13, 2024

• U.K. Gross Domestic Product (MoM) (Oct)

-0.10% -0.10%

• Germany Trade Balance (Oct)

€13.4B €17B

• U.K. Manufacturing Production (MoM) (Oct)

-0.60% -1.00%

• U.K. Industrial Production (MoM) (Oct)

-0.60% -0.50%

• U.K. GfK Consumer Confidence (Dec)

-17.00 -18.00

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

The Week Ahead

Dec to 20

Dec

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The Week Ahead

Date Events

Monday,

December 16, 2024

• China Industrial Production (YoY) (Nov)

• China Retail Sales (YoY) (Nov)

• Eurozone HCOB Manufacturing PMI (Dec) Prel

• U.K. S&P Global/CIPS Composite PMI (Dec) Prel

Tuesday,

December 17, 2024

• U.K. Employment Change (3M) (Oct)

• Germany IFO – Current Assessment (Dec)

• U.S. Retail Sales (MoM) (Nov)

• U.S. Industrial Production (MoM) (Nov)

Wednesday,

December 18, 2024

• U.K. Consumer Price Index (MoM) (Nov)

• U.K. Retail Price Index (YoY) (Nov)

• Eurozone Harmonized Index of Consumer Prices (MoM) (Nov)

• U.S. Federal Reserve Interest Rate Decision

Thursday,

December 19, 2024

• Bank of Japan Interest Rate Decision

• Germany GfK Consumer Confidence Survey (Jan)

• Bank of England Interest Rate Decision

• U.S. Gross Domestic Product Annualized (Q3)

Friday,

December 20, 2024

• People’s Bank of China Interest Rate Decision

• U.K. Retail Sales (MoM) (Nov)

• U.S. Core Personal Consumption Expenditures - Price Index (MoM) (Nov)

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

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has not independently verified the

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