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NEWS U CAN USE
February 23, 2024
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The Week that was…
19
th
Feb to 23
rd
Feb
2
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Indian Economy
• According to the most recent data gathered by the insolvency regulator, creditors'
recovery from defaulters under the Insolvency and Bankruptcy Code decreased to nearly
26% of their admitted claims in Dec 2023 quarter to Rs. 4,281 crore from 33% in the
preceding three months. Since 2016, the total amount recovered has been Rs. 3.21 lakh
crore.
• According to labour ministry statement, retail inflation for farm workers measured by
Consumer Price Index-Agricultural Laborers and rural labourers measured by Consumer
Price Index-Rural Laborers eased marginally to 7.52% and 7.37% in Jan 2024 as compared
to 7.71% and 7.46% in Dec 2023, mainly due to lower prices of certain food items.
• According to a report, the proportion of central government projects experiencing delays
fell to 42.8% in Jan 2024 from 46.6% in Dec 2023, marking the lowest level in 15 months.
Among the 1,821 registered projects, 617 were completed on schedule, 780 were delayed,
431 had cost overruns and 255 had both time and cost overruns.
• According to the media reports, India's imports of crude oil reached a record high in Jan
2024 due to the Red Sea shipping crisis, which delayed the arrival of cargo from the
Americas in Dec 2023. India's oil imports hit 5.24 million barrels per day in Jan 2024, up
17% from Dec 2023 and 3.5% higher than Jan 2023.
• According to reports, the Prime Minister unveiled 14,000 projects worth over Rs 10 lakh
crore throughout the state of Uttar Pradesh at the fourth groundbreaking ceremony for
investment proposals received during the UP Global Investors Summit.
3
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4
Domestic Equity Market Indices
Indices
23-Feb-24 1 Week Return YTD Return
S&P BSE Sensex
73,142.80 0.99% 1.25%
Nifty 50
22,212.70 0.78% 2.21%
S&P BSE Mid
-Cap 39,934.21 0.01% 8.40%
S&P BSE Small
-Cap 46,033.47 0.82% 7.87%
Source: Refinitiv
Values as on Feb 23, 2024
• Domestic equity markets rose for the
second consecutive week as key
benchmark indices S&P BSE Sensex and
Nifty 50 rose 0.99% and 0.78%
respectively. The rally in the market
was broad-based as the mid-cap
segment and the small-cap segment
also closed the week in green.
• Domestic rose during the week
following the improvement in PMI
Services flash data of Feb 2024 from
Eurozone along with impressive
earning report from a major U.S. tech
company. Sentiments were boosted
after PMI flash data of Feb 2024 for
both manufacturing and services
activities increased for the domestic
economy. However, rising U.S. Treasury
yields along with growing tensions in
the Middle East, restricted the gains.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
25.02 22.93 27.89 32.44
P/B
3.71 3.89 3.64 3.53
Dividend Yield
1.11 1.22 0.91 0.65
Source: NSE, BSE
Values as on Feb 23, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
19-Feb-24 1,542 1,013 1.52
20-Feb-24 1,171 1,340 0.87
21-Feb-24 810 1,712 0.47
22-Feb-24 1,342 1,149 1.17
23-Feb-24 1,307 1,202 1.09
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
S&P BSE Auto
47,451.4 0.98% 12.97%
S&P BSE Bankex
53,195.4 1.08% 4.03%
S&P BSE CD
51,437.6 1.99% 3.02%
S&P BSE CG
56,732.1 1.31% 1.56%
S&P BSE FMCG
19,607.1 1.55% -1.00%
S&P BSE HC
35,752.4 0.73% 8.36%
S&P BSE IT
38,628.3 -1.06% 3.88%
S&P BSE Metal
27,396.6 -0.81% 8.76%
S&P BSE Oil & Gas
28,360.3 -1.92% 16.84%
Source:BSE
Values as on Feb 23, 2024
• On the BSE Sectoral front, S&P BSE Realty
experienced gain of 4.07% supported by
positive sentiments by the investors in
anticipation of growth in the sector.
• S&P BSE Oil & Gas fell 1.92% during the week as
investors preferred to book profits to
accumulate the gains from recent rally.
Indian Derivatives Market Review
• Nifty Feb 2024 Futures stood at 22,228.85, a premium of 16.15 points above the spot
closing of 22,212.70.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
2055.62 lakh crore as against Rs. 2182.52 lakh crore for the week to Feb 16.
• The Put-Call ratio stood at 0.9 compared with the previous week’s close of 0.82.
• The Nifty Put-Call ratio stood at 1.02 compared with the previous week’s close of 1.22.
Indian Equity Market (contd.)
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7.04
7.05
7.06
7.07
7.08
20-Feb 21-Feb 22-Feb 23-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
6.68 6.70 6.79 6.77
91 Day T-Bill
7.05 7.05 6.99 6.86
05.74% 2026, (5 Yr GOI)
7.05 7.06 7.04 7.18
07.18% 2033, (10 Yr GOI)
7.08 7.10 7.18 7.17
Source: Refinitiv Values as on Feb 23, 2024
• Bond yields fell as market participants
went for value buying after a recent fall
in bond prices. Gains were extended as
foreign investors went on a buying binge
before Indian government bonds were
set to be added to JPMorgan's emerging
market debt index in Jun 2024. However,
gains were restricted tracking the rise in
U.S. Treasury yields after the minutes of
the most recent meeting of the U.S.
Federal Reserve revealed that
policymakers were worried about
lowering interest rates too soon.
• Yield on the 10-year benchmark paper
(7.18% GS 2033) fell by 2 bps to close at
7.08% from the previous week’s close of
7.10%.
• RBI’s data showed that India's foreign
exchange reserves stood at $616.10
billion for the week ended Feb 16, 2024.
Domestic Debt Market
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-6
-4
-2
0
2
4
6.95
7.00
7.05
7.10
7.15
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 23-Feb-24 16-Feb-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 7.16 7.89 73
3 Year 7.19 7.74 55
5 Year 7.19 7.68 49
10 Year 7.20 7.46 26
Source: Refinitiv
Values as on Feb 23, 2024
• Yields on gilt were unchanged or moved by 1 bps
across the maturities, barring 1, 2 & 10 year papers
that fell by 2 or 4 bps and 15 year paper that rose by
2 bps.
• Corporate bond yields fell up to 13 bps across the
curve, barring 3 to 6 year papers that increased by 2
or 4 bps, while 7 year paper was unchanged.
• Difference in spread between AAA corporate bond
and gilt expanded up to 5 bps across the segments,
barring 1, 10 & 15 year papers that contracted up to
15 bps.
Domestic Debt Market (Spread Analysis)
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8
• Food Minister announced that the central government has put forth a plan to purchase the
marketable excess in the cases of masoor (lentil), urad (black gram), arhar, maize, and cotton
during the next five years at their minimum support prices (MSPs).
• According to the Consumer Affairs Secretary, the ban on export of onion will continue till its
previously announced deadline of Mar 31, 2024, as the government is determined to control
prices and guarantee domestic availability. On Dec 8, 2023, the government had banned
export of onion till Mar 31, 2024.
• The Union cabinet decided to raise the fair and remunerative prices for sugarcane for the
upcoming sugarcane season, which will run from Oct 1, 2024 to Sep 30, 2025 by Rs. 25 to Rs.
340 per quintal, from Rs. 315 to ensure the sugar mills are paying farmers a fair and
reasonable price for their sugarcane.
• According to the notification of the finance ministry, the Indian government has decided to
extend the 20% export tax on parboiled rice beyond Mar 31, 2024 in an effort to guarantee
adequate local supply and maintain domestic prices.
• The Competition Commission of India (CCI) implemented the leniency-plus regime, which
allows companies involved in cartelization to report other cartels and receive lighter
penalties. Penalties for involvement in the first cartel may be reduced by the CCI by up to
30%, and for newly disclosed cartels, by up to 100%. The applicant's evidence will determine
how much of a penalty reduction is granted.
Regulatory Updates in India
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9
• The Financial Stability Panel of India intended to implement a uniform approach in Know
Your Customer norms to authenticate clients across the financial sector and stop illicit
lending through online applications.
• The Reserve Bank of India amended the Master Direction on Prepaid Payment Instruments
(PPI), that permitted authorised bank and non-bank PPI issuers to issue PPIs for use in
payment across a range of public transportation systems.
• The government has allowed Goods and Services Tax (GST) Network to share information
about businesses registered under GST based on their consent with the RBI's ‘Public Tech
Platform for Frictionless Credit’ to facilitate quicker loan approval for entities based on
shared GST data.
Regulatory Updates in India (contd..)
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• The minutes of the Federal Reserve's latest monetary policy meeting on 21st Feb, 2024
revealed most officials remain wary of cutting interest rates "too quickly." The minutes of
the late-Jan 2024 meeting said participants acknowledged risks to achieving the Fed's
employment and inflation goals were moving into better balance, but they remained
highly attentive to inflation risks.
• According to the Labor Department, U.S. initial jobless claims fell to 201,000 in the week
ended Feb17th, 2024 a decrease of 12,000 from the previous week's revised level of
213,000.
• According to Destatis, Germany’s gross domestic product slid 0.3% sequentially in the
three months to Dec 2023 after stagnating in the third quarter. Data showed that
household spending gained 0.2% and government consumption moved up 0.3%.
• The People's Bank of China cut its five-year loan prime rate, the benchmark for mortgage
rates, to 3.95% from 4.20%. The bank was expected to lower the rate to 4.10%. China
lowered its longer-term benchmark lending rate at a slightly sharper than expected pace,
in an attempt to support the ailing housing market. The one-year LPR was left unchanged
at 3.45%.
• According to the Cabinet Office, Japan’s core machine orders climbed 2.7% in Dec 2023.
That was in line with expectations following the 4.9% contraction in Nov 2023.
10
Global News/Economy
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11
Global Indices
Indices
23-Feb-24
1-Week
Return
YTD
Return
Russell 3000 2,613.52 1.54% 8.77%
Nasdaq 100 17,937.61 1.42% 6.61%
FTSE 100 7,706.28 -0.07% -0.35%
DAX Index 17,419.33 1.76% 3.99%
Nikkei Average
[1]
39,098.68 1.59% 16.84%
Straits Times 3,184.91 -1.15% -1.71%
Source: Refinitiv
[1]
Value as on Feb 22, 2024
U.S.
• U.S. equity markets rose following a
positive reaction to an optimistic
earnings announcement from a major
U.S. tech company. However, gains were
restricted after the latest minutes of
the U.S. Federal Reserve's on 21st Feb,
2024 revealed most officials remain
wary of cutting interest rates "too
quickly”, which dampened expectations
for a rate cut in the near future.
Europe
• European equity markets closed on a mixed note. Markets rose following dovish remarks
made by European Central Bank members, who suggested that the central bank keep an
open mind about a rate cut as early as Mar 2024. However, gains were capped after the
most recent minutes of the U.S. central bank showed that most policymakers are still
cautious about reducing interest rates "too quickly“.
Asia
• Asian equity markets closed on a mixed note. Hong Kong and Chinese markets rose
following the announcement of additional measures by the authorities to bolster investor
confidence.
Global Equity Markets
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4.22
4.24
4.26
4.28
4.30
4.32
4.34
20-Feb 21-Feb 22-Feb 23-Feb
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 4.26% from the
previous week’s close of 4.30%.
• U.S. Treasury prices fell after the latest
minutes of the U.S. Federal Reserve's
report on 21st Feb, 2024 revealed most
officials remain wary of cutting interest
rates "too quickly”, which dampened
expectations for a rate cut in the near
future.
• However, trends reversed as investors
remained hopeful that a rate reduction
would occur in the upcoming quarters.
• Meanwhile, market participants were
hesitant to make big moves in the
absence of major drivers.
Global Debt (U.S.)
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9.40
9.60
9.80
10.00
10.20
10.40
10.60
23-Jan-24 8-Feb-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($/Barrel)
86.38 87.47
Gold ($/Oz)
2,035.72 2,013.10
Gold (Rs/10 gm)
61,732 61,469
Silver ($/Oz)
22.94 23.40
Silver (Rs/Kg)
69,345 70,806
Source: Refinitiv *Value as on Feb 23, 2024
Gold
• Gold prices rose as demand for safe haven
increased due to the Middle East turmoil.
Brent Crude
• Brent crude oil price fell after a
policymaker for the U.S. central bank
suggested interest rate reductions might
be postponed for at least two more
months. However, losses were restricted to
concerns about supply and the uncertainty
of the Middle East's geopolitical situation.
Baltic Dry Index
• The index rose over the week due to
improved capesize and panamax activities.
Commodities Market
23-Feb-24
-1.25%
1.12%
-1.96%
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9.70
9.75
9.80
9.85
9.90
9.95
10.00
10.05
10.10
10.15
23-Jan-24 8-Feb-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
82.89 83.04
Pound Sterling
104.95 104.48
EURO
89.71 89.35
100 Yen
55.03 55.26
Source: Refinitiv Figures in INR , *
Value as on Feb 23, 2024
Rupee
• The Indian rupee in the spot trade rose against
the U.S. dollar following rise in other Asian
peers and strong domestic equity market.
Euro
• Euro rose against the greenback despite a U.S.
central bank policymaker hinted that interest
rate cuts would be delayed for at least two
more months.
Pound
• Pound rose against the U.S. dollar after minutes
from the U.S. Fed’s came in largely as expected
and showed that the bulk of policymakers were
concerned about the risks of cutting interest
rates too soon.
Y
en
• Yen rose marginally against the U.S. dollar
despite the fact that a policymaker at the U.S.
Fed suggested that interest rate cut would be
postponed for at least two more months.
Currencies Markets
23-Feb-24
-0.18%
-0.42%
0.40%
0.45%
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15
The Week that was…
19
th
Feb to 23
rd
Feb
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16
The Week that was (Feb 19 – Feb 23)
Date Events
Present
Value
Previous
Value
Monday,
February 19, 2024
• U.K. Rightmove House Price Index (MoM)(Feb) 0.90% 1.30%
• Germany Buba Monthly Report NA NA
Tuesday,
February 20, 2024
• People's Bank of China Interest Rate Decision 3.45% 3.45%
• Eurozone Current Account (Dec) €31.9B €22.5B
• Japan Exports (YoY)(Jan) 11.90% 9.70%
Wednesday,
February 21, 2024
• Eurozone Consumer Confidence(Feb) PREL -15.5 -16.1
• U.S. API Weekly Crude Oil Stock(Feb 16) 7.168M 8.52M
• Japan Foreign Bond Investment(Feb 16) ¥-560.8B ¥1,495.1B
Thursday,
February 22, 2024
• India HSBC Composite PMI Flash (Feb) 61.5 61.2
• Germany HCOB Services PMI(Feb) PREL 48.2 47.7
• Eurozone HCOB Services PMI(Feb) PREL 50 48.4
• U.K. S&P Global/CIPS Manufacturing PMI(Feb) PREL 47.1 47
• U.S. S&P Global Services PMI(Feb) PREL 51.3 52.5
• U.S. Initial Jobless Claims(Feb 16) 201K 213K
Friday,
February 23, 2024
• Germany Gross Domestic Product (YoY)(Q4) -0.20% -0.20%
• China House Price Index (Jan) -0.70% -0.40%
• U.K. GfK Consumer Confidence(Feb) -21 -19
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17
The Week Ahead
26
th
Feb to 01
st
Mar
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18
The Week Ahead
Day Event
Monday,
Feb 26, 2024
• U.S. New Home Sales Change (MoM)(Jan)
• Japan National Consumer Price Index (YoY)(Jan)
Tuesday,
Feb 27, 2024
• U.S. Durable Goods Orders ex Transportation (Jan)
• U.S. Housing Price Index (MoM)(Dec)
Wednesday,
Feb 28, 2024
• Eurozone Consumer Confidence (Feb)
• U.S. Gross Domestic Product Annualized(Q4) PREL
• U.S. Personal Income (MoM)(Jan)`
Thursday,
Feb 29, 2024
• India Infrastructure Output (YoY) (Jan)
• India GDP Growth Rate (YoY) (Q4)
• Germany Consumer Price Index (MoM)(Feb) PREL
• U.S. Core Personal Consumption Expenditures - Price Index (MoM)(Jan)
Friday,
Mar 01, 2024
• India HSBC Manufacturing PMI Final (Feb)
• China NBS Non-Manufacturing PMI(Feb)
• Eurozone Harmonized Index of Consumer Prices (MoM)(Feb) PREL
• U.S. ISM Manufacturing PMI(Feb)
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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
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
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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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