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NEWS U CAN USE
January 13, 2023
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The Week that was…
09
th
Jan to 13
th
Jan
2
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Indian Economy
• India’s consumer price index-based inflation (CPI) eased to 5.72% in Dec 2022 as against
5.88% in Nov 2022. Consumer Food Price Index (CFPI) also slowed to 4.19% in Dec 2022 as
compared to 4.67% in Nov 2022. The number has remained within RBI's tolerance band of
2%-6% for the second consecutive month. Lower food prices, particularly the fall in
vegetable prices, helped keep inflation within the tolerance range.
• India’s Index of Industrial Production (IIP) rose 7.1 % YoY in Nov 2022 as against 4.0%
contraction in Oct 2022 and 1% rise in Nov 2021. As per the sectoral classification,
manufacturing sector also rose 6.1% YoY, mining sector rose 9.7% YoY and electricity
sector increased 12.7% YoY in Nov 2022.
• According to Chief Economic Advisor, the Indian economy will be worth USD 3 trillion By
the end of FY23, and in the following seven years, it is projected to be worth USD 7 trillion.
India's government had earlier predicted that its GDP will reach $5 trillion in value by 2025.
The CEA added that the U.S. predicted to cut interest rates in 2024 or2025, which will have
an effect on the Indian rupee, is the most crucial concern.
• The World Bank predicts that India's economic growth rate will decrease from the
anticipated 6.9% in FY23 to 6.6% in FY24. However, among the seven largest emerging-
market and developing economies, India's economy is predicted to grow at the highest
rate (EMDEs). Growth in exports and investments will be hampered by the slowdown in
the global economy and growing unpredictability.
3
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4
Domestic Equity Market Indices
Indices 13-Jan-23 1 Week Return YTD Return
S&P BSE Sensex 60,261.18 0.60% -0.95%
Nifty 50 17,956.6 0.54% -0.82%
S&P BSE Mid-Cap 25,170.97 0.02% -0.57%
S&P BSE Small-Cap 28,858.3 0.26% -0.24%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
09-Jan-23 1362 910 1.50
10-Jan-23 772 1478 0.52
11-Jan-23 1136 1067 1.06
12-Jan-23 912 1310 0.70
13-Jan-23 1278 939 1.36
Source: NSE
• Domestic equity markets rose during
the week under review. Gains were
broad based as the mid cap segment,
small cap segment and most of the
sectoral indices also closed the week in
green.
• Markets went up amid cautious
optimism after key IT companies came
out with earning numbers which beat
market expectations. Market
sentiments were further boosted after
consumer price index based inflation
for India and U.S. slowed in Dec 2022.
• The strengthening of the rupee against
the greenback, falling yields on U.S.
Treasuries and the weakening of the
dollar index also acted as tailwinds for
the markets.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
23.51 21.54 26.43 23.89
P/B
3.38 4.21 2.96 2.76
Dividend Yield
1.18 1.28 1.22 0.87
Source: BSE, NSE Va
lue as on Jan 13, 2023
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
29,423.6 1.42% -0.93%
S&P BSE Bankex
48,162.9 0.23% -3.53%
S&P BSE CD
38,589.2 -2.93% -4.32%
S&P BSE CG
34,148.4 2.24% -2.62%
S&P BSE FMCG
15,988.2 -0.89% -4.62%
S&P BSE HC
23,065.2 0.24% -1.33%
S&P BSE IT
28,955.5 3.37% -1.87%
S&P BSE Metal
21,471.4 3.88% 4.05%
S&P BSE Oil & Gas
20,619.4 0.54% 0.28%
Source: Refinitiv *Value as on Jan 13, 2023
• On the BSE Sectoral front, S&P BSE Metal rose
the most by 3.88% followed by S&P BSE IT
which rose 3.37%. Metal stocks rose on hopes
that the economic reopening in China will
potentially led to a pricing as well as demand
recovery for the metals sector.
• IT stocks were also boosted after key IT
companies came out with earning numbers for
the quarter ended Dec 2022 which was better
than market expectations.
Indian Derivatives Market Review
• Nifty Jan 2023 Futures stood at 18,025.25, a premium of 68.65 points above the spot
closing of 17,956.60.
• The Put-Call ratio stood at 0.91 compared with the previous week’s close of 0.98.
• The Nifty Put-Call ratio stood at 1.03 compared with the previous week’s close of 0.75.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
6.21 6.06 6.08 4.67
91 Day T-Bill
6.42 6.37 6.37 5.18
05.74% 2026, (5 Yr GOI)
7.07 7.22 7.11 6.99
07.26% 2032, (10 Yr GOI)
7.30 7.37 7.27 -
Source: Refinitiv Value as on Jan 13, 2023
• Bond yields fell following decline in yields
on U.S. Treasuries. Expectations that the
U.S. Federal Reserve might slow down
the pace of rate hikes also boosted
market sentiments. However, gains were
restricted after government raised Rs.
30,000 crore in the weekly debt auction
on Friday. Meanwhile, easing inflation in
India and the U.S. raised probability of a
pause in rate hikes soon while investors
shifted focus to the Union budget.
• Yield on the 10-year benchmark paper
(7.26% GS 2032) fell 7 bps to close at
7.30% as compared to the previous
week’s close of 7.37%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
fell to $561.58 billion for the week ended
Jan 06, 2023 compared with $562.85
billion a week earlier.
Domestic Debt Market
7.26
7.28
7.30
7.32
7.34
7.36
9-Jan 10-Jan 11-Jan 12-Jan 13-Jan
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 6.92 7.7 78
3 Year 7.13 7.51 38
5 Year 7.26 7.62 36
10 Year 7.43 7.74 31
Source: Refinitiv
Value as on
Jan 13, 2023
• Yields on gilt fell in the range of 4 to 19 bps
across the maturities, barring 1 year paper
that rose 5 bps. Yield fell the most on 2 year
paper and the least on 11 year paper.
• Corporate bond yields fell in the range of 5 to
21 bps across the curve, leaving 1 year paper
that rose 9 bps. Yields fell the most on 3 & 4
year papers and the least on 10 year paper.
• Difference in spread between AAA corporate
bond and gilt contracted in the range of 4 to
9 bps on 3 to 7 year papers while 1, 2, 10 & 15
year papers expanded 3, 4 or 14 bps.
Domestic Debt Market (Spread Analysis)
-20
-15
-10
-5
0
5
10
5.50
6.00
6.50
7.00
7.50
8.00
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-Jan-23 06-Jan-23
Yield in %
Change in bps
Source: Refinitiv
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8
• The Union Cabinet approved the creation of a national level multi-state cooperative seed
society under Multi-State Cooperative Societies (MSCS) Act, 2002. It will serve as the leading
organisation for the production, sourcing, processing, branding, labelling, packing, storage,
marketing, and distribution of high-quality seeds.
• The Securities and Exchange Board of India (Sebi) has loosened the requirements for offers
for sale (OFS) in order to enable non-promoter shareholders to sell their shares through this
method. Brokers claimed that the decision would benefit small-cap investors. Currently,
subject to certain restrictions, both promoter and non-promoter shareholders may use OFS.
• Sebi approved the debut of future contracts on corporate bond indexes by stock exchanges
to increase market liquidity and give investors a chance to hedge their positions. The index
should be made up of corporate debt instruments, its components should have enough
liquidity and diversification at the issuer level, and it should regularly assess its constituents.
• The Securities and Exchange Board of India has granted mutual funds permission to launch
passive equity-linked savings plans (ELSS) as long as fresh investment flows are stopped into
their active counterparts. Previously, asset managers had the option of launching active or
passive ELSS plans.
Regulatory Updates in India
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9
• According to Union Minister of State for Electronics and IT, the central government will
shortly introduce the production linked incentive (PLI) programme for information
technology servers and IT gear, as well as additional incentives for companies that use
intellectual property with Indian design in their products.
• Sebi permitted stock exchanges to introduce numerous contracts for the same commodity
to promote greater investor engagement in the market for commodity derivatives. This
would come into force with immediate effect.
• The RBI Governor claims that the Indian economy has held up despite significant global
spillover caused by conflict, geopolitics, and the U.S. Federal Reserve's tightening of
monetary policy. We have reached the end of the liquidity chakravyuh on the side of the
monetary police. The policy has been raised by 225 bps. The policy has been raised by 225
bps.
• The Reserve Bank of India has tightened its regulations on the trading of government
securities. It has instructed market participants to use the "price / yield range setting" tool
offered on the e-Kuber platform before putting bids in order to prevent instances of fat-
finger/big-figure error by the bidders. The central bank also stated that after the auction
window has closed, no requests to rescind bids will be granted.
Regulatory Updates in India (contd..)
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• U.S. consumer price index edged down 0.1% MoM in Dec 2022 after rising 0.1% in Nov
2022. On yearly basis, consumer price growth slowed to 6.5% in Dec from 7.1% in Nov.
• According to the World Bank, the global economy is forecast to grow 1.7% in 2023, which
would be the third weakest growth in nearly three decades due to elevated inflation,
higher interest rates, subdued investment and disruptions caused by the war in Ukraine.
The projection for 2024 was also lowered down to 2.7% from 3%.
• China’s consumer price index rose 1.8% YoY in Dec 2022 following 1.6 percent rise in Nov
2022. Core inflation, which excludes food and energy prices, edged up to 0.7% in Dec from
0.6% in Nov.
• According to the Bank of England Chief Economist, the U.K. economy's slowdown and the
tight labour market will control domestic inflationary pressures and lessen the likelihood
of persistent inflation.
• U.K. gross domestic product rose 0.1% MoM in Nov 2022 as against 0.5% rise in Oct 2022.
On a yearly basis, U.K. economy rose 0.2% in Nov after 1.1% rise in Oct.
• Germany’s industrial output rose 0.2% MoM in Nov 2022 as against 0.4% decline in Oct
2022. On a yearly basis, industrial production fell 0.4% in Nov.
• Eurozone jobless rate came in at 6.5% in Nov 2022, unchanged from Oct 2022. This was
notably down from 7.1% in Nov 2021.
10
Global News/Economy
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11
Global Indices
Indices
13-Jan-23
1-Week
Return
YTD
Return
Russell 3000 1,794.67 4.14% 4.54%
Nasdaq 100 11,541.48 4.54% 5.50%
FTSE 100 7,844.07 1.88% 5.26%
DAX Index 15,086.52 3.26% 8.35%
Nikkei Average 26,119.52 0.56% 0.10%
Straits Times 3,293.75 0.52% 1.31%
Source: Refinitiv Value as on Jan 13, 2023
U.S.
• U.S. equity markets rose after U.S.
consumer price index based inflation
slowed in Dec 2022 which led to
anticipation that the U.S. Federal
Reserve (Fed) may slowdown the pace
of rate hikes moving ahead. Bargain
hunting also contributed to the upside.
Europe
• European equity markets rose as markets cheered signs of slowing U.S. inflation which led
to hopes of a slowdown in the pace of rate hikes by the U.S. Fed. Optimism over global
growth prospects following China reopening contributed as well to the upside.
Sentiments were further boosted after the U.K. economy unexpectedly grew in Nov 2022.
Asia
• Asian markets mostly rose following better-than-expected trade data from China amid
easing COVID-restrictions. A slowdown in U.S. inflation eased concerns over the U.S.
Federal Reserve's rate-hike trajectory which also contributed to the upside. However,
Japanese markets remained under pressure as a stronger yen weighed on exporters.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury fell 6
bps to close at 3.51% as compared to the
previous week’s close of 3.57%.
• Initially, the U.S. Treasury prices rose on
expectations of a pause to rising interest
rates.
• Treasury prices rose further ahead of the
U.S. consumer inflation data for Dec 2022.
• Gains increased after data showed U.S.
consumer prices fell in Dec 2022 for the
first time in 2-1/2 years, confirming
expectations that the U.S. Federal
Reserve (Fed) will continue to slow the
pace of rate increases.
• At the end, gains were restricted as some
investors hesitated at the market's view
that the U.S. Fed will be forced to cut
interest rates later in 2023.
Global Debt (U.S.)
3.35
3.40
3.45
3.50
3.55
3.60
3.65
9-Jan 10-Jan 11-Jan 12-Jan 13-Jan
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
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13
Performance of various commodities
Commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel)
85.19 79.61
Gold ($/Oz)
1,920.21 1,865.71
Gold (Rs/10 gm)
56,150 55,334
Silver ($/Oz)
24.25 23.81
Silver (
Rs/Kg) 67,815 67,573
Source: Refinitiv *Value as on Jan 13, 2023
Gold
• Gold prices rose on hopes that that the U.S.
Federal Reserve might consider slowing
down the aggressive pace of interest rate
hikes after U.S. inflation slowed in Dec
2022. A weaker U.S. dollar also added to
the gains.
Brent Crude
• Brent crude oil prices rose on the back of a
weaker U.S. dollar. Prices rose further on
hopes of growing demand from top oil
importer China. Concerns that OPEC+
could cut oil output in Feb 2023 added to
the gains.
Baltic Dry Index
• The index fell over the week due to
sluggish capesize and panamax activities.
Commodities Market
9.20
9.40
9.60
9.80
10.00
10.20
10.40
10.60
10.80
13-Dec-22 24-Dec-22 4-Jan-23
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
7.01%
2.92%
1.83
13-Jan-23
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
81.43 82.63
Pound Sterling
99.28 98.47
EURO
88.26 86.92
100 Yen
63.10 61.63
Source:
Refinitiv Figures in INR , *Value as on Jan 13, 2023
Rupee
• The Indian rupee rose against the U.S. dollar as
easing U.S. consumer inflation for Dec 2022,
raised expectations that the U.S. Fed may
further slowdown the pace of its rate hikes.
Euro
• Euro gained against the U.S. dollar as easing
U.S. inflation raised probability that the U.S. Fed
will be less aggressive with rate hikes going
forward.
Pound
• Pound gained against the U.S. dollar after data
showed easing U.S. inflation, which raised
probability that the U.S. Fed will be less
aggressive with rate hikes going forward.
Yen
• Yen gained against the U.S. dollar after data
showed easing U.S. inflation, which raised
probability that the U.S. Fed will be less
aggressive with rate hikes going forward.
Currencies Markets
9.60
9.80
10.00
10.20
10.40
10.60
10.80
13-Dec-22 24-Dec-22 4-Jan-23
USD GBP Euro JPY
Source: Refinitiv
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
-1.45%
2.39%
1.54
0.82
13-Jan-23
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15
The Week that was…
09
th
Jan to 13
th
Jan
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16
The Week that was (Jan 09– Jan 13)
Date Events
Present Value
Previous
Value
Monday,
January 09, 2023
• Eurozone Unemployment Rate (Nov) 6.50% 6.50%
• Eurozone Sentix Investor Confidence(Jan) -17.5 -21
• Germany Industrial Production (MoM)(Nov) 0.20% -0.40%
Tuesday,
January 10, 2023
• Japan Overall Household Spending (YoY)(Nov) -1.20% 1.20%
• U.K. BRC Like-For-Like Retail Sales (YoY)(Dec) 6.50% 4.10%
• China M2 Money Supply (YoY)(Dec) 11.80% 12.40%
Wednesday,
January 11, 2023
• Japan Leading Economic Index(Nov) PREL 97.6 98.6
• U.S. MBA Mortgage Applications(Jan 6) 1.20% -10.30%
Thursday,
January 12, 2023
• India Industrial Production (YoY) (Nov) 7.10% -4%
• India Consumer Price Inflation (YoY) (Dec) 5.72% 5.88%
• China Consumer Price Inflation (YoY) (Dec) 1.80% 1.60%
• U.S. Consumer Price Inflation (YoY) (Dec) 6.50% 7.10%
Friday,
January 13, 2023
• China Trade Balance (USD)(Dec) 78B 69.84B
• U.K. Gross Domestic Product (MoM)(Nov) 0.10% 0.50%
• U.K. Industrial Production (MoM)(Nov) -0.20% -0.10%
• Eurozone Industrial Production (MoM)(Nov) 1% -1.90%
• U.S. Michigan Consumer Sentiment Index(Jan) PREL 64.6 59.7
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17
The Week Ahead
16
th
Jan to 20
th
Jan
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18
Day Event
Monday,
Jan 16, 2023
• India Wholesale Price Inflation (YoY) (Dec)
• Japan Producer Price Index (YoY)(Dec)
• China House Price Index (Dec)
• Germany Wholesale Price Index (YoY)(Dec)
Tuesday,
Jan 17, 2023
• China Gross Domestic Product (QoQ)(Q4)
• China Retail Sales (YoY)(Dec)
• U.K. ILO Unemployment Rate (3M)(Nov)
• Germany ZEW Survey – Economic Sentiment(Jan)
Wednesday,
Jan 18, 2023
• Bank of Japan Interest Rate Decision
• U.K. Consumer Price Index (YoY)(Dec)
• Japan Industrial Production (YoY)(Nov)
• U.S. Retail Sales (MoM)(Dec)
• Eurozone Harmonized Index of Consumer Prices (MoM)(Dec)
Thursday,
Jan 19, 2023
• Japan Exports (YoY)(Dec)
• U.S. Housing Starts (MoM)(Dec)
Friday,
Jan 20, 2023
• People’s Bank of China Interest Rate Decision
• Japan National Consumer Price Index (YoY)(Dec)
• U.K. Retail Sales (YoY)(Dec)
The Week Ahead
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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
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