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NEWS U CAN USE
Jul 05, 2024
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The Week that was…
01
st
Jul to 05
th
Jul
2
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Indian Economy
• The Manufacturing Purchasing Managers' Index climbed to 58.3 in Jun 2024 compared to
57.5 in May 2024. The latest reading indicated a sharper improvement in business
conditions, as strong demand conditions spurred the expansion in new orders, output and
buying levels.
• India’s Services Purchasing Managers’ Index (PMI) rose slightly to 60.5 in Jun 2024 as
compared to 60.2 in May 2024 buoyed by strong demand and a record rise in export
orders. Composite PMI also rose to 60.9 from 60.5 in the same period.
• The gross goods and services tax (GST) collection for Jun 2024 stood at Rs 1.74 lakh crore,
representing a 7.7% YoY growth. The yearly growth rate of GST collection in Jun 2024 is
notably less than compared to 12.4% and 10% increases in April and May 2024,
respectively.
• The Food Corporation of India has purchased 26.6 million tonnes of wheat during the
current Rabi Marketing Season 2024-25, surpassing last year's figure of 26.2 million
tonnes. According to the government of India, over 2.2 million farmers have benefited
from the procurement, which started earlier than usual this year, and they received about
Rs. 61 lakh crore directly in their bank accounts as payment at the Minimum Support Price.
• According to the state-run Tea Board, India's tea production in May 2024 plunged more
than 30% YoY to 90.92 million kg, hurt by excessive heat and scarce rainfall.
3
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4
Domestic Equity Market Indices
Indices
05-Jul-24 1 Week Return YTD Return
BSE Sensex
79,996.60 1.22% 10.74%
Nifty 50
24,323.85 1.30% 11.93%
BSE Mid
-Cap 47,437.85 2.77% 28.77%
BSE Small
-Cap 54,153.96 3.88% 26.90%
Source: Refinitiv
Values as on Jul 05, 2024
• Domestic equity markets rose for the
fifth consecutive week as key
benchmark indices BSE Sensex and
Nifty 50 rose 1.22% and 1.30%,
respectively. The rally was broad-based,
as the mid-cap segment and the small-
cap segment also closed the week in
green.
• Domestic equity markets rose during
the week and reached fresh highs amid
reinstated expectations that the U.S.
Federal Reserve would start interest
rate cuts in Sep 2024. Sentiments were
boosted following the in-line U.S. PCE
price data for May 2024 that reinforced
investors’ expectations of at least one
interest rate cut later this year. Gains
were extended following the dovish
commentary from the U.S. Federal
Reserve chair, which fueled hopes that
rate cuts are closer.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
24.34 23.15 33.11 38.72
P/B
3.97 4.19 4.29 4.04
Dividend Yield
1.16 1.23 0.80 0.53
Source: NSE, BSE
Values as on Jul 05, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
01-Jul-24 1,913 793 2.41
02-Jul-24 1,369 1,296 1.06
03-Jul-24 1,674 993 1.69
04-Jul-24 1,475 1,192 1.24
05-Jul-24 1,543 1,114 1.39
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
BSE Auto
57,826.16 0.93% 5.13%
BSE Bankex
60,332.23 1.16% 8.07%
BSE CD
58,700.26 -0.22% 5.77%
BSE CG
75,131.43 3.88% 14.45%
BSE FMCG
20,926.78 1.84% 1.35%
BSE HC
38,246.54 3.06% 7.50%
BSE IT
38,483.33 4.15% 13.96%
BSE Metal
33,739.36 2.08% 5.04%
BSE Oil & Gas
30,152.29 2.30% 10.20%
Source:BSE
Values as on Jul 05, 2024
• On the BSE sectoral front, BSE IT rose 4.15%
supported by soft U.S. economic data, which
bolstered expectations of a rate cut by the U.S.
central bank in Sep 2024. The sector benefited
from the declining U.S. inflationary pressure, a
better outlook for QoQ earnings, and a
significant fall in the U.S. Treasury yields.
• BSE PSU climbed 3.95% on expectation of policy
continuity of the government initiatives in the
upcoming union budget, such as Make in India,
increased capital expenditure, and efforts to
revitalize the banking sector.
Indian Derivatives Market Review
• Nifty Jul 2024 Futures stood at 24,379.40, a premium of 55.55 points above the spot
closing of 24,323.85.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1,743.76 lakh crore as against Rs. 2,038.66 lakh crore for the week to Jun 28.
• The Put-Call ratio stood at 0.89 compared with the previous week’s close of 0.92.
• The Nifty Put-Call ratio stood at 1.2 compared with the previous week’s close of 1.17.
Indian Equity Market (contd.)
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6.98
6.99
7.00
7.01
7.02
1-Jul 2-Jul 3-Jul 4-Jul 5-Jul
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
6.55 6.85 6.52 6.73
91 Day T-Bill
6.78 6.83 6.87 6.93
07.06% 2028, (5 Yr GOI)
6.97 6.99 7.07 7.11
07.10% 2034, (10 Yr GOI)
6.99 7.01 7.03 7.23
Source: Refinitiv Values as on Jul 05, 2024
• Bond yields fell following the ease in U.S.
Treasury yields, while market participants
continue to gauge the pace of foreign
inflows into Indian government bonds
since the inclusion of local debt in the
JPMorgan index and awaited for U.S.
nonfarm payrolls data of Jun 2024 for
further cues.
• Yield on the 10-year benchmark paper
(7.10% GS 2034) fell by 2 bps to close at
6.99% from the previous week’s close of
7.01%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
decreased to $652.00 billion for the
week ended Jun 28, 2024 compared with
$653.71 billion a week earlier.
Domestic Debt Market
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-6
-4
-2
0
2
4
6.60
6.80
7.00
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 05-Jul-24 28-Jun-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 7.04 7.76 72
3 Year 7.08 7.56 48
5 Year 7.12 7.56 44
10 Year 7.12 7.53 41
Source: Refinitiv
Values as on Jul 05, 2024
• Yields on gilt moved by 1 bps or were unchanged
across the maturities, barring 3 to 7 year papers
that fell by 2 or 3 bps and 14 & 30 year papers that
rose by 2 bps each.
• Corporate bond yields fell up to 4 bps across the
curve, barring 1 & 3 to 5 year papers that were
unchanged.
• Difference in spread between AAA corporate bond
and gilt expanded up to 2 bps across the segments,
barring 2, 10 & 15 year papers that contracted by 2
or 3 bps, while 1 & 7 year papers remained steady.
Domestic Debt Market (Spread Analysis)
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8
• According to a consultation paper published by SEBI, the capital market regulator suggested
creating ‘hybrid passive funds’ or hybrid funds that are managed passively. Fund companies
can use this to introduce hybrid index funds or hybrid ETFs. To start with, SEBI proposes
three sets of hybrid passive funds, Debt oriented, Balanced and Equity oriented, where
equity and debt exposure would be 25:75, 50:50 and 75:25, respectively.
• According to the latest circular for SEBI, the capital market regulator has made email the
default mode of communication for the dispatch of Consolidated Account Statement (CAS)
for AMCs and their RTAs. Additionally, SEBI said that the investor will receive the CAS each
month if there has been transaction in their MF folio or demat account.
• According to the Secretary of Department for Promotion of Industry and Internal Trade,
government is working on a new model of the producer price index to efficiently capture
input prices in the economy.
• The Smart Cities Mission deadline has been extended until March 2025, according to a
statement released by the Union Housing and Urban Affairs Ministry on Wednesday. This
will enable cities to finish ongoing projects, which make up about 10% of all projects. As of
Jul 3, 2024, 100 cities have completed 90% of projects worth Rs 1,44,237 crore, with
remaining projects in advanced stages.
Regulatory Updates in India
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9
• India has begun an anti-dumping investigation into the import of Chinese lift guide rails
following a complaint by a domestic player. The purpose of the duty is to shield domestic
industries from low-cost imports.
• According to the CBIC Chairman, the Finance Bill that will be introduced in Parliament later
in Jul 2024 along with the Budget, will include the decisions made at the GST Council
meeting last month, like amnesty scheme for initial years of rollout and sunset date for
profiteering complaints.
Regulatory Updates in India (contd..)
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• According to the Labor Department, U.S. non-farm payroll employment shot up by 206,000
jobs in Jun 2024 after surging by a downwardly revised 218,000 jobs in May 2024.
Economists had expected employment to climb by about 190,000 jobs compared to the
spike of 272,000 jobs originally reported for the previous month.
• According to the Labor Department, U.S. initial jobless claims rose to 238,000 in the week
ended Jun 29th, 2024, an increase of 4,000 from the previous week's revised level of
234,000. Economists had expected jobless claims to inch up to 235,000 from the 233,000
originally reported for the previous week.
• According to the Institute for Supply Management, U.S. services PMI slid to 48.8 in Jun
2024 from 53.8 in May 2024, with a reading below 50 indicating contraction. Economists
had expected the index to edge down to 52.5.
• According to the Institute for Supply Management, U.S. manufacturing PMI edged down to
48.5 in Jun 2024 from 48.7 in May 2024, with a reading below 50 indicating contraction.
Economists had expected the index to inch up to 49.1.
• According to Eurostat, eurozone’s harmonized index of consumer prices posted an annual
growth of 2.5% in Jun 2024, which was slower than the 2.6% increase in May 2024. The
flash rate came in line with expectations.
• According to a survey, China’s Caixin manufacturing Purchasing Managers' Index rose to
51.8 in Jun 2024 from 51.7 in the previous month. A score above 50.0 indicates expansion.
10
Global News/Economy
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11
Global Indices
Indices
05-Jul-24
1-Week
Return
YTD
Return
Russell 3000 2,971.76 3.53% 23.68%
Nasdaq 100 20,391.97 3.60% 21.19%
FTSE 100 8,203.93 0.49% 6.09%
DAX Index 18,475.45 1.32% 10.29%
Nikkei Average 40,912.37 3.36% 22.26%
Straits Times 3,410.81 2.34% 5.26%
Source: Refinitiv Value as on Jul 05 2024
U.S.
• U.S. equity markets rose after the Labor
Department data showed that U.S. non-
farm payroll employment shot up by
206,000 jobs in Jun 2024, which increased
slightly than anticipated after surging by
a downwardly revised 218,000 jobs in
May 2024, which increased expectations
that the U.S. Federal Reserve will likely
start reducing interest rates in Sep 2024.
Europe
• European equity markets rose as investors are closely watching political developments in
the region and are anticipating the release of U.S. non-farm payroll data scheduled on 5th
Jul, 2024. Further, the market rose as investors reacted positively to the results of the first
round of France's parliamentary election.
Asia
• Asian equity markets mostly rose as recent indications of a declining U.S. economy have
renewed optimism for potential interest rate reductions in the near future. The Japanese
market rose following rise in automakers and other export-related stocks.
Global Equity Markets
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4.15
4.20
4.25
4.30
4.35
4.40
4.45
4.50
1-Jul 2-Jul 3-Jul 5-Jul
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury fell
by 7 bps to close at 4.27% from the
previous week’s close of 4.34%.
• U.S. Treasury prices rose after closely
monitoring job data that indicated a
decline in the U.S. labor market which
increased market expectations that the
U.S. Federal Reserve will likely start
reducing interest rates in Sep 2024.
Nonfarm payrolls grew by 206,000 jobs
in Jun 2024, slightly higher than the
190,000 jobs estimated by economists
after surging by a downwardly revised
218,000 jobs in May 2024.
• Further, prices rose following
indications of declining strength in
manufacturing PMI and employment, it
was suggested that the U.S. economy
was slowing down.
Global Debt (U.S.)
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6.00
8.00
10.00
12.00
14.00
5-Jun-24 21-Jun-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($/Barrel)
90.14 88.75
Gold ($/Oz)
2,391.46 2,325.71
Gold (Rs/10 gm)
72,348 71,563
Silver ($/Oz)
31.21 29.13
Silver (Rs/Kg)
90,579 87,840
Source: Refinitiv *Value as on Jul 05 2024
Gold
• Gold prices rose after softer-than-expected
U.S. economic data raised hopes that the
U.S. Federal Reserve could cut interest
rates as soon as Sep 2024.
Brent Crude
• Brent crude oil prices rose because of
tensions in West Asia, weather issues, and
expectations of increased demand during
the summer driving season in the Northern
Hemisphere. Further, prices rose after
Energy Information Administration data
showed that there was a larger decrease in
U.S. crude oil inventories than anticipated
for the week ending on Jun 28th, 2024.
Baltic Dry Index
• The index fell over the week due to
sluggish capesize and panamax activities.
Commodities Market
05-Jul-24
1.57%
2.83%
7.16%
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9.40
9.60
9.80
10.00
10.20
5-Jun-24 21-Jun-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
83.50 83.45
Pound Sterling
106.65 105.46
EURO
90.37 89.25
100 Yen
51.97 51.86
Source: Refinitiv Figures in INR , *Value as on
Jul 05, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar due to rising crude oil prices.
Euro
• The euro rose against the greenback following
the release of data indicating a slight slowdown
in U.S. job growth in Jun 2024 and an increase in
the unemployment rate, which raised the rate
cuts in Sep 2024 by the U.S. Federal Reserve.
Pound
• Pound rose against the U.S. dollar after a slew
of softer-than-expected U.S. economic data
that bolstered expectations that the U.S. Fed
will likely start cutting interest rates later this
year.
Y
en
• Yen rose against the U.S. dollar after data
showed a small decrease in job growth in the
U.S. and a rise in the unemployment rate in Jun
2024
Currencies Markets
05-Jul-24
0.06%
0.21%
1.26%
1.12%
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15
The Week that was…
01
st
Jul to 05
th
Jul
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16
The Week that was (Jul 01 – Jul 05)
Date Events
Present
Value
Previous
Value
Monday,
July 01, 2024
•
China Caixin Manufacturing PMI(Jun)
51.8 51.7
•
Germany HCOB Manufacturing PMI(Jun)
43.5 43.4
•
Germany Consumer Price Index (MoM)(Jun) PREL
0.10% 0.10%
•
U.S. ISM Manufacturing PMI(Jun)
48.5 48.7
Tuesday,
July 02, 2024
•
Eurozone Core Harmonized Index of Consumer Prices (MoM)(Jun) PREL
0.30% 0.40%
•
U.S. JOLTS Job Openings(May)
8.14M 7.919M
Wednesday,
July 03, 2024
•
China Caixin Services PMI(Jun)
51.2 54
•
Germany HCOB Services PMI(Jun)
53.1 53.5
•
U.S. ADP Employment Change(Jun)
150K 157K
•
U.S. Initial Jobless Claims(Jun 28)
238K 234K
Thursday,
July 04, 2024
•
Germany Factory Orders (MoM)(May)
-1.60% -0.20%
•
Japan Overall Household Spending (YoY)(May)
-1.80% 0.50%
Friday,
July 05, 2024
•
Germany Industrial Production(YoY)(May)
-6.70% -3.90%
•
Eurozone Retail Sales (YoY)(May)
0.30% 0.60%
•
U.S. Nonfarm Payrolls(Jun)
206K 218K
•
U.S. Average Hourly Earnings (YoY)(Jun)
3.90% 4.10%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
08
th
Jul to 12
th
Jul
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18
The Week Ahead
Day Event
Monday,
Jul 08, 2024
• Germany Imports (MoM)(May)
• Eurozone Sentix Investor Confidence (Jul)
• U.K. BRC Like-For-Like Retail Sales (YoY)(Jun)
Tuesday,
Jul 09, 2024
• U.S. Redbook Index (YoY)(Jul 5)
• Japan Producer Price Index (YoY)(Jun)
Wednesday,
Jul 10, 2024
• China Consumer Price Index (YoY)(Jun)
• China FDI - Foreign Direct Investment (YTD) (YoY)(Jun)
• U.S. Monthly Budget Statement (Jun)
• Japan Machinery Orders (MoM)(May)
Thursday,
Jul 11, 2024
• Germany Harmonized Index of Consumer Prices (YoY)(Jun)
• U.K. Gross Domestic Product (MoM)(May)
• U.S. Consumer Price Index (MoM)(Jun)
• U.S. Initial Jobless Claims (Jul 5)
Friday,
Jul 12, 2024
• India Industrial Production (YoY) (May)
• India Inflation Rate (YoY) (Jun)
• Germany Retail Sales (YoY)(May)
• U.S. Producer Price Index ex Food & Energy (YoY)(Jun)
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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
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
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19
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