Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
NEWS U CAN USE
Feb 21, 2025
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
17
th
Feb to 21
st
Feb
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• India’s merchandise trade deficit widened annually to $22.99 billion in Jan 2025 compared
to $16.56 billion in Jan 2024. Exports fell by 2.38% YoY to $36.43 billion in Jan 2025, and
imports increased 10.28% YoY to $59.42 billion during the same period.
• According to the Periodic Labour Force Survey data, the unemployment rate for people
aged 15 years and above in urban areas fell slightly to 6.4% in the Oct-Dec quarter of FY25,
compared to 6.5% during the same period of FY24.
• According to the Indian Sugar Mills Association’s data, India's sugar production fell 12% to
197 lakh tonnes till Feb 15 in the 2024-25 marketing year mainly due to lower output in
Maharashtra and Karnataka. Additionally, sugar diversion towards ethanol rose to
approximately 14.1 lakh tonnes.
• According to the latest data from the RBI, the inflow of funds from Indians working abroad
into non-resident Indian (NRI) bank accounts rose sharply by 42.8% to $13.33 billion
between Apr and Dec 2024, compared to $9.33 billion in the same period last year.
• The Uttar Pradesh government unveiled its budget for 2025-26, amounting to Rs. 8,08,736
crore, emphasizing research and development along with information technology.
• According to the data released by the RBI, bank credit growth decreased to 11.8% YoY in
Dec 2024 quarter from 12.6% in Sep 2024 quarter, while aggregate deposits increased at a
marginally lower pace at 11% as compared to 11.7% growth in the same period.
3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4
Domestic Equity Market Indices
Indices
21-Feb-25 1 Week Return YTD Return
BSE Sensex
75,311.06 -0.83% -3.62%
Nifty 50
22,795.90 -0.58% -3.59%
BSE Mid
-Cap 40,374.02 1.62% -13.07%
BSE Small
-Cap 45,856.00 0.98% -16.90%
Source: Refinitiv
Values as on Feb 21, 2025
• Domestic equity markets fell for the
second consecutive week as key
benchmark indices BSE Sensex and
Nifty 50 fell 0.83% and 0.58%,
respectively. However, the mid-cap
segment and the small-cap segment
both closed the week in green.
• Domestic equity markets fell during the
week on concerns surrounding
potential U.S. tariffs. Sentiment was
dampened following the minutes of
the U.S. Federal Reserve’s Jan 2025
policy meeting, in which the central
bank highlighted that the U.S.
President’s proposed tariffs could
potentially drive up consumer prices,
potentially delaying the reduction of
interest rates even further.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
20.97 20.26 32.01 28.39
P/B
3.87 3.39 4.12 3.18
Dividend Yield
1.21 1.41 0.85 0.73
Source: NSE, BSE
Values as on Feb 21, 2025
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
17-Feb-25 914 1,938 0.47
18-Feb-25 685 2,141 0.32
19-Feb-25 2,127 700 3.04
20-Feb-25 1,992 816 2.44
21-Feb-25 1,072 1,755 0.61
Source: NSE
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
BSE Auto
48,135.32 -2.39% -4.45%
BSE Bankex
55,718.18 -0.19% 1.27%
BSE CD
54,537.62 -0.27% -6.76%
BSE CG
58,398.81 1.83% -9.30%
BSE FMCG
18,942.85 -1.51% -6.48%
BSE HC
39,619.96 -0.67% -6.94%
BSE IT
39,763.85 -2.00% -3.80%
BSE Metal
29,197.49 5.71% 1.77%
BSE Oil & Gas
23,900.69 2.35% -8.47%
Source:BSE
Values as on Feb 21, 2025
• On the BSE sectoral front, BSE Metal rose
5.71% following positive economic indicators
from China, a major consumer of metals,
boosted global metal prices. Moreover, the
sector's sentiment improved as the industry
anticipates an announcement from the central
government regarding safeguard duties,
following the presentation of its concerns. BSE
Auto fell 2.39% after the U.S. President said
that he intended to impose 25% tariffs on
autos. Further, the sector fell following media
reports suggesting a potential significant
reduction in import duties on electric vehicles
by the Indian government.
Indian Derivatives Market Review
• Nifty Feb 2025 Futures stood at 22,822.60, a premium of 26.70 points above the spot
closing of 22,795.90.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs. 877.36
lakh crore as against Rs. 1,086.65 lakh crore for the week to Feb 14.
• The Put-Call ratio stood at 0.98 compared with the previous week’s close of 1.00.
• The Nifty Put-Call ratio stood at 0.82 compared with the previous week’s close of 0.77.
Indian Equity Market (contd.)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
6.68
6.69
6.70
6.71
6.72
17-Feb 18-Feb 20-Feb 21-Feb
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
6.29 6.38 6.58 6.53
91 Day T-Bill
6.46 6.45 6.60 6.61
07.06% 2028, (5 Yr GOI)
6.63 6.64 6.66 6.79
06.79% 2034, (10 Yr GOI)
6.71 6.71 6.74 6.89
Source: Refinitiv Values as on Feb 21, 2025
• Bond yields initially fell as market
participants reacted positively to the
RBI’s decision to double its purchase of
government securities through open
market operations to Rs. 40,000 crore on
Feb 20, 2025. Gains were extended
following a decline in U.S. Treasury yields
after data showed that U.S. retail sales
tumbled in Jan 2025. However, these
gains were offset after the RBI’s weekly
debt auction witnessed weaker-than-
expected demand from market
participants across all tenors.
• Yield on the 10-year benchmark paper
(6.79% GS 2034) was unchanged to close
at 6.71% from the previous week’s close.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
decreased to $635.72 billion for the
week ended Feb 14, 2025 compared with
$638.26 billion a week earlier.
Domestic Debt Market
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
-2
0
2
4
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 21-Feb-25 14-Feb-25
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 6.69 7.68 99
3 Year 6.74 7.57 83
5 Year 6.77 7.44 67
10 Year 6.82 7.23 41
Source: Refinitiv
Values as on Feb 21, 2025
• Yields on gilt rose up to 3 bps across the maturities,
barring 1 to 3 year papers that fell by 1 or 2 bps,
while 4 & 10 year papers were unchanged.
• Corporate bond yields increased up to 3 bps across
the curve, barring 10 year paper that fell by 2 bps,
while 9 year paper was unchanged.
• Difference in spread between AAA corporate bond
and gilt expanded between 2 to 4 bps across the
segments, barring 5 & 10 year papers that
contracted by 1 & 2 bps, respectively, while 6 & 7
year papers remained steady.
Domestic Debt Market (Spread Analysis)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• SEBI has released the most important terms and conditions for investment advisors (IAs)
which are required to communicate to their clients by Jun 30, 2025. According to the
circular, IAs can only give advice on products regulated by SEBI. For advice on other
products, IAs will have to give a disclosure to the client that such products do not come
under the purview of SEBI and the regulator will not solve any grievances for the particular
product. The fees charged by the IA will be as per the limit specified by SEBI/Investment
Adviser Administration and Supervisory Body (IAASB). The limit under fixed fee mode is Rs.
1.51 lakh per annum per family of client or 2.5% of Asset Under Advisory (AUA) per annum
per family of client. IAs cannot accept payments in cash. The acceptable modes of payment
include cheque, UPI, online bank transfer and Centralized Fee Collection Mechanism
(CeFCoM).
• The insurance regulator IRDAI has introduced Bima-ASBA (Bima Applications Supported by
Blocked Amount), a new UPI-based premium blocking system, which has to be implemented
by all insurance companies by Mar 1, 2025. All insurance companies must offer this facility
for life and health insurance policies, though it remains optional for customers.
• The RBI plans to leverage artificial intelligence (AI) and machine learning (ML) tools to
forecast future trends, detect irregular activities, and manage risks in a rapidly evolving
financial environment. The central bank believes that AI and ML can enhance regulators'
ability to ensure banks maintain sufficient capital to withstand economic slowdowns and
market downturns.
Regulatory Updates in India
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9
• The government has imposed stricter stock limits on wheat due to persistently high prices
and concerns over the upcoming rabi harvest affected by high temperatures. The stock
limit on wholesalers have been reduced by 75%, while the stock limit on retailers and big
chain retailers has been cut by 20%.
• The Centre has approved continuation of the integrated Pradhan Mantri Annadata Aay
Sanrakshan Abhiyan (PM-AASHA) scheme during the 15th Finance Commission cycle up to
2025-26. Under the Price Support Scheme (PSS) of the integrated PM-AASHA Scheme, the
procurement of the notified pulses, oilseeds and copra conforming to the prescribed Fair
Average Quality (FAQ) is undertaken by the central nodal agencies at the MSP (minimum
support price) directly from the pre-registered farmers through the State level agencies.
• The RBI, in its monthly bulletin of Feb 2025, has raised concerns over growing uncertainty
in global financial markets, citing fears around the potential impact of tariffs and the
current volatility in energy prices and global trade policies.
• The RBI has launched RBIDATA, a mobile app offering over 11,000 series of economic data.
The mobile app designed to provide users with easy access to macroeconomic and
financial statistics related to the Indian economy. Key features include popular reports, a
search function, banking outlet locator within a 20-kilometer radius, and SAARC economic
data access, enhancing user convenience and data accessibility.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• According to the University of Michigan, the U.S. consumer sentiment index for Feb 2025
was revised downward to 64.7 from a preliminary reading of 67.8. Economists had
expected the index to remain unchanged.
• According to the Labor Department, the U.S. initial unemployment claims rose to 219,000
in the week ended 11th Jan 2025. An increase of 5,000 from the previous week's revised
level of 214,000. Economists had expected unemployment claims to inch up to 215,000
from the 213,000 originally reported for the previous week.
• According to the Office for National Statistics, the U.K. consumer price index logged a 3.0%
rise in Jan 2025, following Dec's 2024 2.5% increase. This was the fastest growth since Mar
2024. Prices were forecast to climb 2.8%.
• According to the Office for National Statistics, U.K. jobless rate came in at 4.4% in the three
months to Dec 2024, the same as in the preceding period. Economists had forecast the
rate to rise to 4.5%.
• According to the Cabinet Office, Japan’s gross domestic product expanded a seasonally
adjusted 0.7% on quarter in the fourth quarter of 2024. That beat forecasts for an increase
of 0.3% and was up from the upwardly revised 0.4% gain in the previous three months.
• The People's Bank of China left its one-year loan prime rate unchanged at 3.10% on 20th
Feb 2025. Similarly, the five-year LPR, the benchmark for mortgage rates, was held at
3.60%. The decision matched expectations. The bank had reduced its both LPRs by 25 basis
points each in Oct 2024.
10
Global News/Economy
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
11
Global Indices
Indices
21-Feb-25
1-Week
Return
YTD
Return
Russell 3000 3,183.71 -2.85% 0.70%
Nasdaq 100 21,614.08 -2.26% 2.86%
FTSE 100 8,659.37 -0.84% 5.95%
DAX Index 22,287.56 -1.00% 11.95%
Nikkei Average 38,776.94 -0.95% -2.80%
Straits Times 3,929.94 1.35% 3.76%
Source: Refinitiv Value as on Feb 21,
2025
U.S.
• U.S. equity markets fell as a decline on
Wall Street followed the release of a
report by the University of Michigan,
which indicated that consumer sentiment
in the U.S. had worsened significantly
more than earlier projections for
February 2025. Market sentiment was
further hit by ongoing tariff concerns and
indications that the U.S. Federal Reserve
is likely to keep interest rates on hold for
some time.
Europe
• European equity markets mostly fell on concerns regarding a potential trade war due to
the U.S. President's ongoing threats to impose 25% tariffs on various imported goods.
Additionally, persistent geopolitical tensions have contributed to a cautious atmosphere.
Asia
• Asian equity markets closed on a mixed note. The market rose on optimism over China's
artificial intelligence potential and the technology sector. However, the Japanese market
fell amid growing speculation that the Bank of Japan will hike rates sooner rather than
later. Further, the market fell as the minutes of the U.S. Federal Reserve's Jan 2024 policy
meeting revealed concerns over inflation risks.
Global Equity Markets
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4.35
4.40
4.45
4.50
4.55
18-Feb 19-Feb 20-Feb 21-Feb
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury fell
by 6 bps to close at 4.42% from the
previous week’s close of 4.48%.
• U.S. Treasury prices rose after several
data releases pointed to slowing
growth, leading investors to increase
bets that the U.S. Federal Reserve will
cut rates twice this year.
• Meanwhile, investors awaited more
economic data for clarity regarding the
future path of interest rates.
Global Debt (U.S.)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8.50
9.00
9.50
10.00
10.50
11.00
21-Jan-25 6-Feb-25
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($/Barrel)
76.26 76.09
Gold ($/Oz)
2,936.03 2,883.18
Gold (Rs/10 gm)
85,695 85,769
Silver ($/Oz)
32.54 32.14
Silver (Rs/Kg)
96,831 97,780
Source: Refinitiv *Value as on Feb 21,
2025
Gold
• Gold prices (in $/Oz) rose on safe-haven
demand amid lingering concerns about
geopolitical tensions and tariff threats by
the U.S. President. Additionally, prices
increased due to fears over the escalating
trade war.
Brent Crude
• Brent crude oil prices rose as supply
disruptions in Russia and a drop in gasoline
and distillate fuel stocks supported oil
prices. However, gains were restricted by
concerns about the outlook for demand
and recent data showing a jump in crude
inventories.
Baltic Dry Index
• The index rose over the week due to
improved capesize and panamax activities.
Commodities Market
21-Feb-25
0.22%
1.83%
1.25%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9.60
9.80
10.00
10.20
10.40
10.60
21-Jan-25 6-Feb-25
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
86.65 86.89
Pound Sterling
109.70 109.12
EURO
90.91 90.86
100 Yen
57.58 56.93
Source: Refinitiv Figures in INR , *Value as on Feb
21, 2025
Rupee
• The Indian rupee in spot trade rose against the
U.S. dollar despite continued selling by foreign
investors in domestic equity markets.
Euro
• Euro fell slightly against the U.S. dollar after the
U.S. Federal Reserve stated that monetary
policy does not need to be adjusted in the
current scenario.
Pound
• Pound rose against the U.S. dollar despite the
U.S. Federal Reserve indicating that there is no
necessity to modify monetary policy in the
present circumstances.
Y
en
• Yen fell against the U.S. dollar amid growing
speculation that the Bank of Japan will hike
rates sooner rather than later.
Currencies Markets
21-Feb-25
-0.28%
1.14%
0.06%
0.53%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
17
th
Feb to 21
st
Feb
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
16
The Week that was (Feb 17 – Feb 21)
Date Events
Present
Value
Previous
Value
Monday,
February 17, 2025
• India's Balance of Trade Jan $-22.99B $-21.94B
• U.K. Rightmove House Price Index (MoM) (Feb) 0.50% 1.70%
Tuesday,
February 18, 2025
• U.K. Claimant Count Change (Jan) 22K -15.1K
• Germany's ZEW Survey – Economic Sentiment (Feb) 26 10.3
• U.S. Employment Change (3M) (Dec) 107K 35K
Wednesday,
February 19, 2025
• U.K. Consumer Price Index (MoM) (Jan) -0.10% 0.30%
• U.K. Retail Price Index (MoM) (Jan) -0.10% 0.30%
• U.S. Housing Starts (MoM) (Jan) 1.366M 1.515M
Thursday,
February 20, 2025
• People’s Bank of China’s (PBoC) Interest Rate Decision 3.10% 3.10%
• Eurozone's Producer Price Index (YoY) (Jan) 0.50% 0.80%
• U.S. Initial Jobless Claims (Feb 14) 219K 214K
• Japan's National Consumer Price Index (YoY) (Jan) 4.00% 3.60%
• Eurozone's Consumer Confidence (Feb) Prel -13.6 -14.2
Friday,
February 21, 2025
• Germany's HCOB Composite PMI (Feb) Prel 51.00 50.50
• U.K. Retail Sales (MoM) (Jan) 1.70% -0.60%
• Eurozone's HCOB Composite PMI (Feb) Prel 50.2 50.2
• U.K. S&P Global/CIPS Composite PMI (Feb) Prel 50.50 50.60
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
24
th
Feb to 28
th
Feb
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
The Week Ahead
Day Event
Monday,
Feb 24, 2025
• Germany IFO – Business Climate (Feb)
• Eurozone Core Harmonized Index of Consumer Prices (MoM) (Jan)
Tuesday,
Feb 25, 2025
• Germany Gross Domestic Product (QoQ) (Q4)
• U.S. Housing Price Index (MoM) (Dec)
• U.S. Consumer Confidence (Feb)
Wednesday,
Feb 26, 2025
• Germany GfK Consumer Confidence Survey (Mar)
• U.S. New Home Sales Change (MoM) (Jan)
Thursday,
Feb 27, 2025
• Eurozone Business Climate (Feb)
• Eurozone Consumer Confidence (Feb)
• U.S. Gross Domestic Product Annualized (Q4) Prel
• Japan Tokyo Consumer Price Index (YoY) (Feb)
Friday,
Feb 28, 2025
• India Government Budget Value Jan
• India Infrastructure Output YoY Jan
• India GDP Growth Rate YoY Q4
• Germany Retail Sales (YoY) (Jan)
• Germany Consumer Price Index (MoM) (Feb) Prel
• U.S. Core Personal Consumption Expenditures - Price Index (YoY) (Jan)
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
on information/data arising out of their own investigations. Before making any investments, the readers are advised to seek independent
professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor(s), the Investment Manager, the
Trustee, their respective directors, employees, associates or representatives shall be liable in any way for any direct, indirect, special, incidental,
consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
All information contained in this document has been obtained by ICRA Analytics Limited from sources believed by it to be accurate and reliable.
Although reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of
any kind, and ICRA Analytics Limited or its affiliates or group companies and its respective directors, officers, or employees in particular, makes no
representation or warranty, express or implied, as to the accuracy, suitability, reliability, timelines or completeness of any such information. All
information contained herein must be construed solely as statements of opinion, and ICRA Analytics Limited, or its affiliates or group companies and
its respective directors, officers, or employees shall not be liable for any losses or injury, liability or damage of any kind incurred from and arising out
of any use of this document or its contents in any manner, whatsoever. Opinions expressed in this document are not the opinions of our holding
company, ICRA Limited (ICRA), and should not be construed as any indication of credit rating or grading of ICRA for any instruments that have been
issued or are to be issued by any entity.
19
Disclaimer
Thank you for
your time.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Thank you for
your time.
