News You Can Use of 07 February 2024

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NEWS U CAN USE

Feb 07, 2025

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The Week that was…

Feb to 07

Feb

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Indian Economy

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

FY25 reduced key policy repo rate by 25 bps to 6.25% with immediate effect.

Consequently, the standing deposit facility (SDF) rate shall stand adjusted to 6.00%. The

MPC unanimously voted to reduce the policy repo rate by 25 bps. 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. Accordingly,

the MPC unanimously voted to continue with a neutral stance.

• The RBI has projected CPI inflation for FY25 at 4.8% with Q4 at 4.4%. Assuming a normal

monsoon next year, CPI inflation for FY26 is projected at 4.2% with Q1 at 4.5%, Q2 at

4.0%, Q3 at 3.8%, and Q4 at 4.2%, with risks are evenly balanced.

• The RBI has projected real GDP growth for FY26 at 6.7% with Q1 at 6.7%, Q2 at 7.0%, and

Q3 and Q4 at 6.5% each, with risks are evenly balanced.

• The Manufacturing Purchasing Managers' Index rose to 57.7 in Jan 2025 compared to 56.4

in Dec 2024, it marked the fastest expansion since last Jul 2024. This data indicated that

new orders rose at the sharpest pace in six months, driven by the steepest increase in

exports.

• The total gross goods and services tax (GST) revenue grew 12.3% YoY to Rs. 1.96 lakh crore

in Jan 2025 as compared to Rs. 1.74 lakh crore in Jan 2024.

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Domestic Equity Market Indices

Indices

07-Feb-25 1 Week Return YTD Return

BSE Sensex

77,860.19 0.46% -0.36%

Nifty 50

23,559.95 0.22% -0.36%

BSE Mid

-Cap 43,050.27 -0.11% -7.31%

BSE Small

-Cap 50,164.22 0.41% -9.09%

Source: Refinitiv

Values as on Feb 07, 2025

• Domestic equity markets rose for the

second consecutive week as key

benchmark indices BSE Sensex and

Nifty 50 rose 0.46% and 0.22%,

respectively. The small-cap segment

closed the week in green, however, the

mid-cap segment closed the week in

red.

• Domestic equity markets rose after the

U.S. President delayed tariffs on Mexico

and Canada for a month but gave China

no such relief. After a 10% tariff on

Chinese products took effect, China

announced new tariff measures and

export controls to protect its interests.

However, a rate cut by the RBI failed to

lift market mood as the central bank’s

monetary policy lacked additional

liquidity-easing measures.

Ratios

BSE Sensex

Nifty 50 BSE Mid Cap

BSE Small

Cap

P/E

21.70 21.41 34.30 30.06

P/B

4.00 3.51 4.39 3.48

Dividend Yield

1.20 1.41 0.81 0.66

Source: NSE, BSE

Values as on Feb 07, 2025

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

03-Feb-25 734 2,084 0.35

04-Feb-25 1,920 875 2.19

05-Feb-25 1,943 867 2.24

06-Feb-25 1,287 1,520 0.85

07-Feb-25 971 1,826 0.53

Source: NSE

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Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

BSE Auto

52,671.66 2.22% -0.61%

BSE Bankex

56,777.69 0.92% -0.43%

BSE CD

59,054.04 2.08% -9.61%

BSE CG

61,074.90 -5.35% -9.22%

BSE FMCG

20,050.83 -2.45% -3.24%

BSE HC

43,149.88 3.22% -5.14%

BSE IT

42,230.99 0.66% -2.53%

BSE Metal

28,912.98 1.20% 1.15%

BSE Oil & Gas

24,909.45 -2.04% -5.49%

Source:BSE

Values as on Feb 07, 2025

• On the BSE sectoral front, BSE capital goods fell

5.35% after the government's FY26 budget fell

short of expectations for capital expenditure.

Having missed the target for the current

financial year, Finance Minister proposed to

spend Rs. 11.21 lakh crore towards capital

expenditure for FY26.

• BSE health care rose 3.22% following strong

quarterly earnings by many pharmaceutical

companies. A significant approval for new drugs

and vaccines, enhancing the growth prospects

for pharma companies.

Indian Derivatives Market Review

• Nifty Feb 2025 Futures stood at 23,614.95, a premium of 55.00 points above the spot

closing of 23,559.95.

• The total turnover on NSE’s Futures and Options segment for the week stood at Rs. 861.39

lakh crore as against Rs. 918.63 lakh crore for the week to Jan 31.

• The Put-Call ratio stood at 0.92 compared with the previous week’s close of 0.87.

• The Nifty Put-Call ratio stood at 0.83 compared with the previous week’s close of 1.01.

Indian Equity Market (contd.)

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6.63

6.66

6.69

6.72

3-Feb 4-Feb 5-Feb 6-Feb 7-Feb

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

6.26 6.60 6.73 6.48

91 Day T-Bill

6.42 6.57 6.60 6.63

07.06% 2028, (5 Yr GOI)

6.62 6.63 6.70 6.79

06.79% 2034, (10 Yr GOI)

6.71 6.69 6.75 6.90

Source: Refinitiv Values as on Feb 07, 2025

• Bond yields fell initially amid

expectations of an interest rate cut at

the RBI's Feb 2025 monetary policy

meeting. However, yields rose as market

participants were disappointed that the

RBI's first rate cut in nearly five years was

not accompanied with any additional

steps to boost banking system liquidity.

In addition to the rate cut by 25 bps to

6.25%, market participants were

expecting favourable measures from the

central bank.

• Yield on the 10-year benchmark paper

(6.79% GS 2034) fell by 2 bps to close at

6.71% from the previous week’s close of

6.69%.

• Data from the RBI showed that India's

foreign exchange reserves increased to

$630.61 billion for the week ended Jan

31, 2025 compared with $629.56 billion a

week earlier.

Domestic Debt Market

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-20

-15

-10

-5

6.00

6.30

6.60

6.90

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 07-Feb-25 31-Jan-25

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 6.66 7.65 99

3 Year 6.73 7.53 80

5 Year 6.75 7.41 66

10 Year 6.81 7.24 43

Source: Refinitiv

Values as on Feb 07, 2025

• Yields on gilt rose up to 4 bps across the maturities,

barring 1, 2 & 7 year papers that fell by 3, 1 & 4 bps,

respectively, while 4 & 19 year papers that were

unchanged.

• Corporate bond yields increased between 5 to 12

bps across the curve, barring 1 year paper that fell

by 2 bps.

• Difference in spread between AAA corporate bond

and gilt expanded up to 11 bps across the

segments.

Domestic Debt Market (Spread Analysis)

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• SEBI has proposed introduction of a unique UPI address for collection of money from

investors through registered intermediaries. These include investment advisers, mutual

fund AMCs, REITs, InvITs, AIFs including venture capital funds. The regulator aims to help

investors identify, isolate and avoid unregistered entities, who will not have access to this

unique UPI handle. The new handle will have usernames which will be dependent on the

segment of the securities market they are present in. For example, if a registered

intermediary has the name abc, his handle will be abc.bkr for brokerage business and abc.mf

for the mutual funds space.

• According to the chairperson of SEBI, the capital market regulator will reintroduce a new

combo product in which it will allow bundling of term insurance cover with mutual funds.

The insurance will include insurance pure and simple vanilla life, term life insurance. In 2022,

SEBI directed fund houses not to bundle insurance or any other financial product with

mutual fund schemes like insurance.

• The government has increased the foreign direct investment limit in the insurance sector

from 74% to 100% in the Union Budget 2025 to bring more investment, global expertise,

and better products for customers.

• The insurance regulator IRDAI has put a cap of 10% hike per year on health insurance

policies targeted at senior citizens. IRDAI said that if an insurance company wants to

increase premium beyond 10% or discontinue offering a policy for senior citizens, it must

first get permission from the regulator.

Regulatory Updates in India

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• The Insolvency and Bankruptcy Board of India has allowed insolvency professionals to

hand over the possession of plots, flats or buildings to homebuyers or facilitate

registrations during the bankruptcy resolution of a realty firm if the buyers have honored

their parts of the agreements.

• According to media report, the labour ministry plans to seek Cabinet approval for a

pension scheme for one crore gig workers associated with online platforms. This scheme

will ensure social security contributions from their income per transaction and provide

healthcare under PM Jan Arogya Yojana.

• According to the secretary of Ministry of Statistics and Programme Implementation, the

government will release monthly unemployment figures for urban and rural areas from

Apr 2025. The ministry is enhancing data for district-level estimates and collaborating with

states to influence policy.

• According to the Finance Secretary, the government will enable open architecture in

insurance distribution by allowing agents to sell policies of multiple insurers. With this,

insurance agents would be allowed to work with multiple insurance companies soon.

Regulatory Updates in India (contd..)

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• According to the Labor Department, U.S. non-farm payroll employment rose by 143,000

jobs in Jan 2025 after surging by an upwardly revised 307,000 jobs in Dec 2024.

Economists had expected employment to climb by 170,000 jobs compared to the jump of

256,000 jobs originally reported for the previous month.

• According to the ADP, U.S. private sector employment climbed by 183,000 jobs in Jan 2025

after rising by an upwardly revised 176,000 jobs in Dec 2024.

• The Bank of England reduced its key interest rate by 25 basis points on 06th Feb 2024,

aligning with the forecasts of economists, as policymakers assessed that the disinflation

process is sufficient though growth concerns remain. During the policy board meeting, the

Monetary Policy Committee, the members cast their votes with an 7-2 majority in favor to

keep the bank rate at 4.50% from 4.75%.

• According to a survey, U.K. final services Purchasing Managers' Index registered 50.8 in Jan

2025, down from 51.1 in Dec 2024 and was also below the flash estimate of 51.2.

• According to the European Central Bank, Eurozone’s inflation rose to 2.5% in Jan 2025,

while it was expected to remain at Dec 2024’s rate of 2.4%. The Core inflation that strips

out prices of energy, food, alcohol and tobacco, held steady at 2.7% in Jan 2025.

• According to a survey, China’s Caixin services Purchasing Managers' Index is 51.0 in Jan

2025, down from 52.2 in Dec 2024. The anticipated reading was projected to rise slightly to

52.3.

Global News/Economy

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Global Indices

Indices

07-Feb-25

1-Week

Return

YTD

Return

Russell 3000 3,215.82 -0.28% 1.72%

Nasdaq 100 21,491.31 0.06% 2.28%

FTSE 100 8,700.53 0.31% 6.45%

DAX Index 21,787.00 0.25% 9.43%

Nikkei Average 38,787.02 -1.98% -2.78%

Straits Times 3,861.42 0.15% 1.95%

Source: Refinitiv

Value as on Feb 07, 2025

U.S.

• U.S. equity markets closed on a mixed

note. The market fell after the University

of Michigan released a report showing

consumer sentiment had unexpectedly

deteriorated in Feb 2025 amid a surge by

year-ahead inflation expectations.

However, losses were limited as concerns

regarding a potential global trade war

have been alleviated.

Europe

• European equity markets mostly rose as investors indulged in some hectic buying at

several counters, reacting to quarterly earnings updates, and the Bank of England's

decision to lower interest rates. Additionally, the market rose following the U.S.

President’s decision to pause tariffs on Canada and Mexico for a month.

Asia

• Asian equity markets closed on a mixed note. The market rose following China's imposition

of tariffs on U.S. imports. This action was a swift reaction to the 10% trade duty that the

U.S. President's administration had placed on Chinese products. Further, the market rose

sharply as AI optimism lifted tech stocks.

Global Equity Markets

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4.35

4.40

4.45

4.50

4.55

3-Feb 4-Feb 5-Feb 6-Feb 7-Feb

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

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

by 8 bps to close at 4.49% from the

previous week’s close of 4.57%.

• U.S. Treasury prices rose as investors

continued to grapple with persistent

uncertainty about the U.S.

administration's tariff policy and the

prospect of trade wars.

• However, gains were restricted as

strong U.S. non-farm payroll data

revisions for the month of Dec 2024 and

a decline in the unemployment rate

were seen as reflecting a solid labor

market, despite headline jobs gains

missing economists' expectations.

Global Debt (U.S.)

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9.00

9.50

10.00

10.50

11.00

7-Jan-25 23-Jan-25

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)

75.44 78.2

Gold ($/Oz)

2,860.39 2,801

Gold (Rs/10 gm)

84,288 81,798

Silver ($/Oz)

31.82 31.30

Silver (Rs/Kg)

95,133 93,196

Source: Refinitiv *Value as on Feb

07, 2025

Gold

• Gold prices on safe-haven buying amid

concerns over China-U.S. tensions, and

potential new tariffs on imports from

Canada, Mexico and the European Union.

Brent Crude

• Brent crude oil prices fell after data

showed a sharp jump in U.S. crude

inventories in the week ended 31st Jan,

2025. Prices fell further amid uncertainty

over the impact of the U.S. President's

tariff policies on global growth and fuel

demand.

Baltic Dry Index

• The index rose over the week due to

improved capesize and panamax activities.

Commodities Market

7-Feb-25

-3.53%

2.12%

1.64%

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9.30

9.60

9.90

10.20

10.50

10.80

7-Jan-25 23-Jan-25

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

87.48 86.64

Pound Sterling

108.69 107.62

EURO

90.76 90.01

100 Yen

57.68 55.96

Source: Refinitiv Figures in INR , *Value as on Feb 07, 2025

Rupee

• The Indian rupee in the spot trade rose against

the U.S. dollar following positive trends in

domestic equity markets.

Euro

• Euro fell against the U.S. dollar as the U.S.

President delivered on tariff threats.

Pound

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

U.S. President saying he plans to announce

reciprocal tariffs on many countries next week.

• Yen rose against the U.S. dollar after a Bank of

Japan policy board member advocated

continued interest rate hikes.

Currencies Markets

7-Feb-25

0.97%

3.07%

0.84%

0.99%

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The Week that was…

Feb to 07

Feb

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The Week that was (Feb 03 – Feb 07)

Date Events

Present

Value

Monday,

February 03, 2025

• India HSBC Manufacturing PMI Final Jan

57.70 56.40

• China Caixin Manufacturing PMI (Jan)

50.10 50.50

• U.S. ISM Manufacturing PMI (Jan)

50.90 49.30

• Germany HCOB Manufacturing PMI (Jan)

45.00 44.10

• Eurozone Core Harmonized Index of Consumer Prices (MoM) (Jan) Prel

-1.00% 0.50%

Tuesday,

February 04, 2025

• U.S. Factory Orders (MoM) (Dec)

-0.90% -0.40%

• Japan Labor Cash Earnings (YoY) (Dec)

4.80% 3.90%

• U.S. JOLTS Job Openings (Dec)

7.6M 8.156M

Wednesday,

February 05, 2025

• India HSBC Composite PMI Final Jan

57.70 59.20

• India HSBC Services PMI Final Jan

56.50 59.30

• China Caixin Manufacturing PMI (Jan)

51.00 52.20

• Germany HCOB Composite PMI (Jan)

50.50 50.10

• U.S. ISM Services PMI (Jan)

52.80 54.00

• U.S. ADP Employment Change (Jan)

183K 176K

• Eurozone HCOB Composite PMI (Jan)

50.20 50.20

Thursday,

February 06, 2025

• Eurozone Retail Sales (YoY) (Dec)

1.90% 1.60%

• Bank of England's(BOE) Interest Rate Decision

4.50% 4.75%

• U.S. Nonfarm Productivity (Q4) Prel

1.20% 2.20%

• U.S. Initial Jobless Claims (Jan 31)

219K 208K

Friday,

February 07, 2025

• Reserve Bank of India (RBI) Interest Rate Decision

6.25% 6.50%

• Germany Industrial Production (MoM) (Dec)

-2.40% 1.30%

• U.S. Nonfarm Payrolls (Jan)

143K 307K

• U.S. Average Hourly Earnings (MoM) (Jan)

0.50% 0.30%

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The Week Ahead

Feb to 14

Feb

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The Week Ahead

Day Event

Monday,

Feb 10, 2025

• China FDI - Foreign Direct Investment (YTD) (YoY) (Jan)

• Eurozone Sentix Investor Confidence (Feb)

Tuesday,

Feb 11, 2025

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

• U.S. NFIB Business Optimism Index (Jan)

Wednesday,

Feb 12, 2025

• India Industrial Production YoY Dec

• India Inflation Rate YoY Jan

• India Manufacturing Production YoY Dec

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

Thursday,

Feb 13, 2025

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

• U.K. Gross Domestic Product (QoQ) (Q4) Prel

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

Friday,

Feb 14, 2025

• India Balance of Trade Jan

• India WPI Manufacturing YoY Jan

• India WPI Inflation YoY Jan

• Eurozone Gross Domestic Product s.a. (QoQ) (Q4) Prel

• U.S. Retail Sales (MoM) (Jan)

• U.S. Michigan Consumer Sentiment Index (Feb) Prel

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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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