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NEWS U CAN USE
Feb 28, 2025
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The Week that was…
24
th
Feb to 28
th
Feb
2
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Indian Economy
• Government data showed that Gross Domestic Product (GDP) of the Indian economy at
constant (2011-12) prices witnessed a growth of 6.2% YoY in the third quarter of FY25. In
the Oct-Dec quarter of last year, the GDP growth rate was 9.5%. On the sectoral front, the
growth of Manufacturing sector decreased to 3.5% in Q3 of FY25 from 14.0% in same
quarter of previous fiscal year. However, growth of Agriculture, Livestock, Forestry &
Fishing increased to 5.6% in Q3 of FY25 compared to 1.5% growth in Q3 of FY24.
• According to the Ministry of Commerce & Industry, the combined Index of Eight Core
Industries increased by 4.6% YoY in Jan 2025 as compared to 4.2% growth in Jan 2024. All
the components of the Eight Core Industries witnessed growth in Jan 2025 over the
corresponding month of last year except crude oil & natural gas, with cement production
witnessed the highest rate of growth with 14.5% followed by refinery products with 8.3%,
while electricity rose the least by 1.3% followed by fertilizers by 3.0%.
• Government data showed that India’s fiscal deficit for the period from Apr to Jan of FY25
stood at Rs. 11.70 lakh crore or 74.5% of the Budget Estimates (BE) of the current fiscal.
India’s fiscal deficit was at 63.6% of the BE in the corresponding period of the previous
fiscal year. Total expenditure stood at Rs. 35.70 lakh crore or 75.7% of the BE as compared
to 74.7% of the BE in the corresponding period of the previous fiscal year.
• According to data released by the RBI, All-India House Price Index (HPI) increased 3.1% in
the third quarter of 2024-25 as compared to 4.3% growth in the preceding three months
and 3.8% growth in the year-ago period.
3
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4
Domestic Equity Market Indices
Indices
28-Feb-25 1 Week Return YTD Return
BSE Sensex
73,198.10 -2.81% -6.32%
Nifty 50
22,124.70 -2.94% -6.43%
BSE Mid
-Cap 38,592.02 -4.41% -16.91%
BSE Small
-Cap 43,082.90 -6.05% -21.92%
Source: Refinitiv
Values as on Feb 28, 2025
• Domestic equity markets fell for the
third consecutive week as key
benchmark indices BSE Sensex and
Nifty 50 fell 2.81% and 2.94%,
respectively. The fall was broad-based
as the mid-cap segment and the small-
cap segment both closed the week in
red.
• Domestic equity markets fell as
investors’ sentiment was negatively
impacted after the U.S. President has
threatened to impose a 25% tariff on
imports from the European Union,
accusing the bloc of being formed to
"undermine" the U.S. Losses were
extended after China vowed to take "all
necessary countermeasures and
defend its legitimate rights and
interests" following the U.S. President’s
announcement of an additional 10%
tariff on Chinese imports.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
20.38 19.67 30.60 26.54
P/B
3.76 3.29 3.94 2.99
Dividend Yield
1.25 1.45 0.83 0.76
Source: NSE, BSE
Values as on Feb 28, 2025
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
24-Feb-25 727 2,132 0.34
25-Feb-25 1,081 1,732 0.62
27-Feb-25 534 2,308 0.23
28-Feb-25 397 2,477 0.16
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
BSE Auto
45,859.68 -4.73% -11.00%
BSE Bankex
54,852.37 -1.55% -2.50%
BSE CD
52,964.97 -2.88% -8.45%
BSE CG
55,241.12 -5.41% -14.39%
BSE FMCG
18,382.82 -2.96% -10.57%
BSE HC
38,211.72 -3.55% -8.59%
BSE IT
36,679.01 -7.76% -12.58%
BSE Metal
28,004.41 -4.09% -1.98%
BSE Oil & Gas
22,573.53 -5.55% -11.23%
Source:BSE
Values as on Feb 28, 2025
• On the BSE sectoral front, BSE IT fell 7.76% due
to the impact of the U.S. President’s latest
announcement on tariffs that have triggered
fresh worries of a trade war and a slowdown in
the U.S. economy. Additionally, the recent drop
in the stock price of a leading U.S. tech company
following its earnings report has sparked a
broader selloff in major information technology
stocks. BSE Bankex experienced the least
decline among the sectors, with a loss of 1.55%.
The RBI reversed its earlier decision to increase
the risk weight on bank loans to non-banking
financial companies (NBFCs), w.e.f. Apr 1, 2025.
Indian Derivatives Market Review
• Nifty Mar 2025 Futures stood at 22,280.05, a premium of 155.35 points above the spot
closing of 22,124.70.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs. 836.72
lakh crore as against Rs. 877.36 lakh crore for the week to Feb 21.
• The Put-Call ratio stood at 1.01 compared with the previous week’s close of 0.98.
• The Nifty Put-Call ratio stood at 0.78 compared with the previous week’s close of 0.82.
Indian Equity Market (contd.)
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6.68
6.70
6.72
6.74
24-Feb 25-Feb 27-Feb 28-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
6.31 6.29 6.60 6.71
91 Day T-Bill
6.45 6.46 6.58 6.64
07.06% 2028, (5 Yr GOI)
6.59 6.63 6.66 6.79
06.79% 2034, (10 Yr GOI)
6.72 6.71 6.69 6.89
Source: Refinitiv Values as on Feb 28, 2025
• Bond yields rose following a heavy debt
supply from states, coupled with a
plunge in the local currency. Losses were
extended as weaker-than-expected
demand for the central government's
last debt sale for the financial year
soured sentiment.
• Yield on the 10-year benchmark paper
(6.79% GS 2034) rose by 1 bps to close at
6.72% from the previous week’s close of
6.71%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
increased to $640.48 billion for the week
ended Feb 21, 2025 compared with
$635.72 billion a week earlier.
Domestic Debt Market
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-6
-3
0
3
6
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 28-Feb-25 21-Feb-25
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 6.68 7.68 100
3 Year 6.69 7.49 80
5 Year 6.75 7.4 65
10 Year 6.84 7.22 38
Source: Refinitiv
Values as on Feb 28, 2025
• Yields on gilt rose up to 6 bps across the maturities,
barring 1 to 6, 11 & 19 year papers that fell up to 5
bps.
• Corporate bond yields fell up to 8 bps across the
curve, barring 7, 8 & 15 year papers that increased
by 1 or 5 bps, while 1 & 9 year papers were
unchanged.
• Difference in spread between AAA corporate bond
and gilt contracted between 2 to 4 bps across the
segments, barring 1, 6 & 15 year papers that
expanded by 1 bps each, while 2 & 7 year papers
remained steady.
Domestic Debt Market (Spread Analysis)
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8
• The Reserve Bank of India is expected to uphold a neutral monetary policy while
implementing gradual interest rate reductions and enhancing liquidity in response to global
trade uncertainties. Members of the Monetary Policy Committee (MPC) contend that
maintaining a neutral stance allows for greater adaptability to changing global financial
circumstances and emphasizes the importance of fostering economic growth.
• The government is partnering with financial institutions to establish a mechanism for the
routing and settlement of interest subsidies on education loans via digital currency wallets.
This initiative seeks to align with the Unified Portal for Education Loan, improve the
efficiency of subsidy claims, and mitigate fraud through the utilization of Central Bank
Digital Currency (CBDC).
• The Commerce and Industry Minister has called upon the Indian electronics and electrical
sector to aim for $100 billion in exports within the next 5 to 7 years. He stressed the
importance of steering clear of protectionist measures and prioritizing consumer interests.
Furthermore, he noted the remarkable advancement in electronic goods exports, which
have ascended to the second position in the country, a significant improvement from the
167th rank in 2015.
• According to the union minister of state for Science & Technology, India's space economy is
set to grow fivefold to $44 billion in the next decade, with private investments already
crossing Rs. 1,000 crore.
Regulatory Updates in India
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9
• India's economy is anticipated to rebound with over 6% growth in the recent quarter;
however, this figure falls short of the necessary levels for sufficient job creation. The
former RBI Governor emphasizes the existence of a skills mismatch within the workforce
and calls for enhancements in talent alignment to address the requirements of the job
market.
• Prime Minister launched the 19th installment of the PM-KISAN scheme in Bhagalpur, Bihar,
providing financial assistance of Rs. 22,700 crore to 9.8 crore farmers.
Regulatory Updates in India (contd..)
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• According to the Commerce Department, the U.S. personal consumption expenditures
(PCE) price index rose by 0.3% in Jan 2025, matching the increase seen in Dec 2024 as well
as economists' estimates. The annual rate of growth in the PCE price index slowed to 2.5%
in Jan 2025 from 2.6% in Dec 2024, which also matched expectations.
• According to the Commerce Department, the U.S. gross domestic product rose by 2.3% in
the fourth quarter ended Dec 2024, consistent with the prior estimate.
• According to the Commerce Department, the U.S. durable goods experienced a significant
increase in Jan 2025, surpassing expectations. Orders rose by 3.1% in Jan 2025, following a
downward revision of 1.8% in Dec 2024.
• According to the European Commission, Eurozone’s economic confidence index rose to a
five-month peak in Feb 2025, driven by enhanced optimism among industrial managers
and consumers. The index rose to 96.3 in Feb 2025 from 95.3 in the preceding month.
• According to Eurostat, Eurozone’s inflation edged up to 2.5% in Jan 2025 from 2.4% in Dec
2024. The 2.5% matched the estimate published on Feb 3, 2025.
• According to Destatis, Germany’s gross domestic product declined by 0.2% in fourth
quarter ended Dec 2024, reversing a 0.1% sequential growth in the third quarter. The
figures matched the estimate published on Jan 30, 2025.
• According to the Cabinet Office, Japan’s leading index, which measures future economic
activity, rose to 108.3 in Dec 2024 from a 3-month low of 107.8 in Nov 2024. In the flash
estimate, the score was 108.9.
10
Global News/Economy
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11
Global Indices
Indices
28-Feb-25
1-Week
Return
YTD
Return
Russell 3000 3,102.48 -2.55% -1.87%
Nasdaq 100 20,884.41 -3.38% -0.61%
FTSE 100 8,809.74 1.74% 7.79%
DAX Index 22,551.43 1.18% 13.27%
Nikkei Average 37,155.50 -4.18% -6.87%
Straits Times 3,895.70 -0.87% 2.85%
Source: Refinitiv Value as on Feb 28,
2025
U.S.
• U.S. equity markets mostly fell following
the announcement by the U.S. President
that the previously suspended 25% tariffs
on imports from Mexico and Canada, as
well as the 10% tariff on imports from
China, will be implemented on Mar 04,
2025. Additionally, investors looked
ahead to the release of fourth-quarter
results of major AI companies, which also
weighed on market sentiment.
Europe
• European equity markets mostly rose as investors reacted to robust earnings reports and a
slight alleviation of geopolitical tensions after Ukraine and the U.S. reached an agreement
on a minerals deal.
Asia
• Asian equity markets fell after the U.S. President announced that the implementation of
tariffs on imports from Mexico and Canada will proceed as scheduled, with the measures
set to take effect next week. Additionally, the Japanese market plunged amid tariff
concerns and the release of mixed industrial production and retail sales data for Jan 2025.
Global Equity Markets
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4.15
4.20
4.25
4.30
4.35
4.40
4.45
24-Feb 25-Feb 26-Feb 27-Feb 28-Feb
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury fell
by 19 bps to close at 4.23% from the
previous week’s close of 4.42%.
• U.S. Treasury prices rose after a report
closely tracked by the U.S. Federal
Reserve showed annual inflation
subsided and consumer spending
slowed in Jan 2025.
• Additionally, prices rose as investors
turned to bonds as a safe haven in
response to indications of a slowdown
in the U.S. economy and ongoing
uncertainty regarding the impact of
tariffs implemented by the U.S.
President.
Global Debt (U.S.)
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8.50
9.00
9.50
10.00
10.50
11.00
28-Jan-25 13-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($/Barrel)
74.85 76.26
Gold ($/Oz)
2,858.60 2,936.03
Gold (Rs/10 gm)
84,789 85,695
Silver ($/Oz)
31.15 32.54
Silver (Rs/Kg)
93,287 96,831
Source: Refinitiv *Value as on Feb 28,
2025
Gold
• Gold prices fell as the U.S. dollar climbed
higher amid rising concerns that the tariff
hike moves by the U.S. President will result
in a prolonged trade war and hurt global
economic growth.
Brent Crude
• Brent crude oil prices fell due to worries
about global economic growth and
uncertainty about the outlook for oil
demand weighing on the commodity's
prices. However, losses were restricted by
supply concerns after the U.S. decided to
revoke an oil giant corporation's license to
operate in Venezuela.
Baltic Dry Index
• The index rose over the week due to
improved capesize and panamax activities.
Commodities Market
28-Feb-25
-1.85%
-2.64%
-4.26%
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9.40
9.60
9.80
10.00
10.20
10.40
10.60
28-Jan-25 13-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
87.40 86.65
Pound Sterling
109.98 109.70
EURO
90.78 90.91
100 Yen
58.30 57.58
Source: Refinitiv Figures in INR , *Value as on Feb
28, 2025
Rupee
• The Indian rupee in spot trade rose against the
U.S. dollar despite greenback demand, a
negative equities trend, and tariff uncertainty.
Euro
• The euro fell against the U.S. dollar on concerns
about tariff uncertainty.
Pound
• Pound fell against the U.S. dollar amid weak
economic data and uncertainty over tariff
implementation.
Y
en
• Yen fell against the U.S. dollar amid weak
economic data and uncertainty over tariff
implementation.
Currencies Markets
28-Feb-25
0.87%
1.25%
-0.14%
0.25%
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15
The Week that was…
24
th
Feb to 28
th
Feb
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16
The Week that was (Feb 24 – Feb 28)
Date Events
Present
Value
Previous
Value
Monday,
February 24, 2025
• Germany IFO
– Business Climate (Feb) 85.20 85.20
• Eurozone Core Harmonized Index of Consumer Prices (YoY) (Jan)
2.70% 2.70%
Tuesday,
February 25, 2025
• Germany Gross Domestic Product (QoQ) (Q4)
-0.20% -0.20%
• U.S. Housing Price Index (MoM) (Dec)
0.40% 0.40%
• U.S. API Weekly Crude Oil Stock (Feb 21)
-0.64M 3.34M
Wednesday,
February 26, 2025
• Germany GfK Consumer Confidence Survey (Mar)
-24.7 -22.4
• Japan Coincident Index (Dec)
116.4 116.8
• U.S. New Home Sales Change (MoM) (Jan)
-10.50% 8.10%
Thursday,
February 27, 2025
• Eurozone Business Climate (Feb)
-0.74 -0.92
• Eurozone Consumer Confidence (Feb)
-13.6 -13.6
• U.S. Gross Domestic Product Annualized (Q4) Prel
2.30% 2.30%
• Japan Large Retailer Sales (Jan)
4.00% 3.00%
• U.S. Initial Jobless Claims (Feb 21)
242K 220K
Friday,
February 28, 2025
• India GDP Growth Rate YoY
Q3 6.20% 5.60%
• India Infrastructure Output YoY JAN
4.60% 4.80%
• Germany Consumer Price Index (YoY) (Feb) Prel
2.30% 2.30%
• U.S. Core Personal Consumption Expenditures
- Price Index (YoY) (Jan) 2.60% 2.90%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
03
rd
Mar to 07
th
Mar
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18
The Week Ahead
Day Event
Monday,
Mar 03, 2025
• India HSBC Manufacturing PMI Final Feb
• China Caixin Manufacturing PMI (Feb)
• Eurozone Harmonized Index of Consumer Prices (MoM) (Feb) Prel
• U.S. ISM Manufacturing PMI (Feb)
Tuesday,
Mar 04, 2025
• Eurozone Unemployment Rate (Jan)
• U.S. API Weekly Crude Oil Stock (Feb 28)
Wednesday,
Mar 05, 2025
• India HSBC Composite PMI Final Feb
• India HSBC Services PMI Final FEB
• China Caixin Services PMI (Feb)
• U.S. ADP Employment Change (Feb)
• U.S. ISM Services PMI (Feb)
Thursday,
Mar 06, 2025
• Eurozone Retail Sales (YoY) (Jan)
• U.S. Initial Jobless Claims (Feb 28)
Friday,
Mar 07, 2025
• China Trade Balance USD (Feb)
• Germany Factory Orders (MoM) (Jan)
• Eurozone Gross Domestic Product s.a. (QoQ) (Q4)
• U.S. Nonfarm Payrolls (Feb)
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
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completeness, adequacy and reliability of such data or information. Whilst no action has been solicited based upon the
information provided herein,
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19
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