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NEWS U CAN USE
Jul 12, 2024
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The Week that was…
08
th
Jul to 12
th
Jul
2
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Indian Economy
• The consumer price index-based inflation rose to 5.08% YoY in Jun 2024 compared to
4.80% in May 2024. The number remained within the RBI's upper tolerance level for the
tenth consecutive month. Consumer food price inflation accelerated to 9.36% YoY in Jun
2024 from 8.69% in May 2024.
• Industrial production growth in India (IIP) increased to 5.9% YoY in May 2024, as compared
to 5.0% rise in Apr 2024. Production in the manufacturing industry increased by 4.6%,
mining by 6.6% and electricity by 13.7% in May 2024.
• The RBI's FI-Index, which gauges financial inclusion nationally, increased to 64.2 in Mar
2024 from 60.1 in Mar 2023. This index demonstrates progress in various aspects of
financial inclusion. It is a single value that ranges from 0 to 100, with 0 representing total
financial exclusion and 100 representing complete financial inclusion.
• According to the labor ministry, the retail inflation for industrial workers decreased to
3.86% in May 2024 from 4.42% in May 2023. In Apr 2024, the consumer price index for
Industrial workers rose by 3.87%.
• According to the Solvent Extractors' Association of India, India saw a 3% increase in palm
oil imports to 786,134 metric tons in Jun 2024, a nearly 15% decrease in soyabean oil
imports to 275,700 tons, and a 13.4% rise in sunflower oil imports to 465,647 tons.
Overall, vegetable oil imports in the country grew by 1.4% to reach 1.6 million tons.
3
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4
Domestic Equity Market Indices
Indices
12-Jul-24 1 Week Return YTD Return
BSE Sensex
80,519.34 0.65% 11.46%
Nifty 50
24,502.15 0.73% 12.75%
BSE Mid
-Cap 47,508.26 0.15% 28.96%
BSE Small
-Cap 54,013.25 -0.26% 26.57%
Source: Refinitiv
Values as on Jul 12, 2024
• Domestic equity markets rose for the
sixth consecutive week as key
benchmark indices BSE Sensex and
Nifty 50 rose 0.65% and 0.73%,
respectively. The mid-cap segment
closed the week in green, however, the
small-cap segment closed the week in
red.
• Domestic equity markets rose during
the week and reached fresh highs
following the foreign fund inflows
along with retreat in crude oil prices
from the recent high of $90 per barrel
mark. Market sentiments were boosted
following the better-than-expected Q1
earnings of the largest domestic IT
company. Gains were further extended
after softer-than-expected U.S.
consumer inflation data in Jun 2024
bolstered hopes for two rate cuts this
year by the U.S. Federal Reserve.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
24.48 23.32 33.16 36.21
P/B
4.05 4.22 4.30 4.00
Dividend Yield
1.16 1.23 0.79 0.53
Source: NSE, BSE
Values as on Jul 12, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
08-Jul-24 1,079 1,615 0.67
09-Jul-24 1,355 1,314 1.03
10-Jul-24 837 1,837 0.46
11-Jul-24 1,584 1,053 1.50
12-Jul-24 1,070 1,583 0.68
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
BSE Auto
57,182.12 -1.11% 0.12%
BSE Bankex
60,140.44 -0.32% 5.87%
BSE CD
59,019.39 0.54% 2.60%
BSE CG
74,950.90 -0.24% 6.10%
BSE FMCG
21,626.60 3.34% 4.11%
BSE HC
38,397.28 0.39% 4.43%
BSE IT
39,828.91 3.50% 12.56%
BSE Metal
32,988.24 -2.23% -1.33%
BSE Oil & Gas
31,015.34 2.86% 5.82%
Source:BSE
Values as on Jul 12, 2024
• On the BSE sectoral front, BSE IT rallied 3.50%
after Tata Consultancy Services Ltd. had posted
better-than-expected earnings in the first
quarter of FY25, raising expectations of better
results for other IT companies.
• BSE FMCG rose 3.34% buoyed by progress in
the monsoon and kharif crops sowing.
Indian Derivatives Market Review
• Nifty Jul 2024 Futures stood at 24,521.60, a premium of 19.45 points above the spot
closing of 24,502.15.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1,719.99 lakh crore as against Rs. 1,743.76 lakh crore for the week to Jul 05.
• The Put-Call ratio stood at 0.87 compared with the previous week’s close of 0.89.
• The Nifty Put-Call ratio stood at 1.28 compared with the previous week’s close of 1.2.
Indian Equity Market (contd.)
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6.96
6.97
6.98
6.99
7.00
8-Jul 9-Jul 10-Jul 11-Jul 12-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
6.46 6.55 6.52 6.78
91 Day T-Bill
6.76 6.78 6.88 6.95
07.06% 2028, (5 Yr GOI)
6.95 6.97 7.02 7.07
07.10% 2034, (10 Yr GOI)
6.99 6.99 7.01 7.18
Source: Refinitiv Values as on Jul 12, 2024
• Bond yields fell initially as market
participants added positions ahead of the
release of inflation print along with the
key economic data in the U.S. However,
gains were offset despite a decline in U.S.
Treasury yields, after softer-than-
expected U.S. consumer inflation data of
Jun 2024 boosted the optimism of rate
cuts by the U.S. Federal Reserve.
• Yield on the 10-year benchmark paper
(7.10% GS 2034) was unchanged to close
at 6.99% from the previous week’s close.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
increased to $657.16 billion for the week
ended Jul 05, 2024 compared with
$652.00 billion a week earlier.
Domestic Debt Market
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-4
-3
-2
-1
0
1
6.60
6.70
6.80
6.90
7.00
7.10
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 12-Jul-24 05-Jul-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 7.05 7.74 69
3 Year 7.04 7.56 52
5 Year 7.10 7.58 48
10 Year 7.11 7.56 45
Source: Refinitiv
Values as on Jul 12, 2024
• Yields on gilt fell up to 4 bps across the maturities,
barring 1 year paper that rose by 1 bps, while 12
year paper was unchanged.
• Corporate bond yields increased up to 3 bps across
the curve, barring 1 & 15 year papers that fell by 1
bps each, while 2 year paper was unchanged.
• Difference in spread between AAA corporate bond
and gilt expanded by 4 or 5 bps across the
segments, barring 1 year paper that expanded by 1
bps, while 15 year paper remained steady.
Domestic Debt Market (Spread Analysis)
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8
• SEBI has Introduced new rules pertaining to investments made through passively managed
mutual fund schemes. According to the circular, investments in ETFs and index funds by
mutual fund schemes based on widely tracked, non-bespoke indexes may be made in
accordance with the weighting of the underlying index's constituents; however, the total
amount of investments made in the sponsor's group companies may not exceed 35% of the
scheme's net asset value.
• The Commerce and Industry Ministry announced that it would reopen the application period
to companies eager to invest and seek benefits under the production-linked incentive
scheme for white goods, which includes air conditioners and LED lights. The application
window will be opened from Jul 15 to Oct 12, 2024, lasting for a total of 90 days.
• The government of Uttar Pradesh has declared that registration tax will be fully waived for
strong hybrid and plug-in hybrid electric vehicles, effective immediately.
• The National Bank for Agriculture and Rural Development (NABARD) has introduced a Rs.
750 crore ‘Agri-SURE’ fund, aimed to promote investment in innovative, technology-driven,
high-risk, and high-impact activities in agriculture and allied areas. The fund is being
launched by NABVENTURES, a subsidiary of NABARD with an initial corpus of Rs. 750 crore
with Rs. 250 crore each from NABARD and the Ministry of Agriculture, and Rs. 250 crore
from other institutions.
Regulatory Updates in India
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9
• India and Russia in their 22nd Annual Bilateral Summit in Moscow, have set a goal to
increase their bilateral trade to more than USD 100 billion by 2030, with a focus on
investments, national currency usage for trade, and cooperation across various sectors
such as energy, agriculture, and infrastructure.
• Government of India intends to start selling wheat from its state reserves to large
consumers like flour millers and biscuit manufacturers starting from Aug 2024 to control
local prices by increasing supply. The government has allowed Food Corporation of India
to begin selling wheat from its stocks starting from Aug 2024 at a price of Rs. 23,250 per
ton, which is almost 12% less than the current prices in the open market.
• The RBI has expressed concern in a conversation with CFO and auditors of banks and
financial institutions about certain banks having lakhs of accounts used for fraudulent
transactions and loan evergreening. It was observed that certain banks have a significant
number of such accounts without any apparent legitimate purpose.
Regulatory Updates in India (contd..)
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• According to the Labor Department, U.S. consumer price index slipped by 0.1% MoM in Jun
2024 after coming in unchanged in May 2024. Economists had expected consumer prices
to inch up by 0.1%.
• The U.S. Federal Reserve Chair’s two-day testimony started on 9th Jul, 2024, where the
U.S. Fed Chair said more good data would strengthen the central bank's confidence that
inflation is moving sustainably toward its 2% target and lead to a potential interest rate
cut. Further, the U.S. Fed Chair added that the Committee has mentioned that they do not
anticipate lowering the target range for the federal funds rate until they are more
confident that inflation is steadily progressing towards 2%. Additionally, the U.S. Fed Chair
said that "Reducing policy restraint too late or too little could unduly weaken economic
activity and employment.“
• According to the Office for National Statistics, U.K. real gross domestic product grew 0.4%
MoM in May 2024 after showing no growth in Apr 2024. The actual growth was double the
expected 0.2% expansion.
• According to Destatis, Germany’s wholesale prices posted an annual decline of 0.6% YoY in
Jun 2024, following a 0.7% drop in May 2024. The current sequence of fall in wholesale
prices started in May 2023.
• According to the Ministry of Finance, Japan posted a current account surplus of 2.849
trillion yen in May 2024. That exceeded expectations for a surplus of 2.07 trillion yen
following the 2.52 trillion-yen surplus in Apr 2024.
10
Global News/Economy
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11
Global Indices
Indices
12-Jul-24
1-Week
Return
YTD
Return
Russell 3000 2,967.29 -0.15% 23.49%
Nasdaq 100 20,331.49 -0.30% 20.83%
FTSE 100 8,252.91 0.60% 6.72%
DAX Index 18,748.18 1.48% 11.92%
Nikkei Average 41,190.68 0.68% 23.09%
Straits Times 3,497.78 2.55% 7.95%
Source: Refinitiv Value as on Jul 12 2024
U.S.
• U.S. equity markets fell as stocks of major
technology companies and airlines
experienced a decline, whereas the
stocks of other industries rose because
recent data showed that the U.S.
consumer price index slipped by 0.1%
MoM in Jun 2024 after coming in
unchanged in May 2024, which growing
expectations that the U.S. Federal
Reserve could soon cut its benchmark
rate.
Europe
• European equity markets rose following the release of the U.S. consumer price index data
that indicated a decline in Jun 2024 after coming in unchanged in May 2024, which raised
expectations that the U.S. might begin to lower interest rates sooner rather than later.
Asia
• Asian equity markets rose after inflation data from Japan met expectations. Further, the
market rose after soft U.S. consumer price index data was reported in the month of Jun
2024, which increased hopes that the U.S. Federal Reserve would start cutting interest
rates in Sep 2024.
Global Equity Markets
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4.10
4.15
4.20
4.25
4.30
4.35
8-Jul 9-Jul 10-Jul 11-Jul 12-Jul
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury fell
by 8 bps to close at 4.19% from the
previous week’s close of 4.27%.
• U.S. Treasury prices rose following the
release of U.S. data indicating a
decrease in consumer prices in the U.S.
for the month of Jun 2024, it is further
anticipated that the Federal Reserve will
start reducing interest rates in Sep
2024.
• Further, prices rose as the U.S. Federal
Reserve Chair's remarks generally
inclined towards a more dovish stance in
his recent testimony to Congress, which
confirmed the anticipation that the
central bank will commence easing
interest rates later in the year.
Global Debt (U.S.)
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9.00
9.50
10.00
10.50
11.00
11.50
12-Jun-24 28-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($/Barrel)
88.8 90.14
Gold ($/Oz)
2,411.27 2,391.46
Gold (Rs/10 gm)
72,743 72,348
Silver ($/Oz)
30.77 31.21
Silver (Rs/Kg)
91,516 90,579
Source: Refinitiv *Value as on Jul 12 2024
Gold
• Gold prices rose following the release of
data by the Labor Department indicating a
decrease in U.S. consumer prices in Jun
2024, this leads to higher anticipation for
cuts in interest rates by the U.S. Fed.
Brent Crude
• Brent crude oil prices fell as geopolitical
tensions eased a bit and reports indicated
that Hurricane Beryl did not result in
significant harm to refineries and ports
along the Gulf coast. However, losses were
restricted after data indicated a larger-
than-anticipated decrease in U.S. crude
stockpiles for the week ending on Jul 5th,
2024.
Baltic Dry Index
• The index rose over the week due to
improved capesize and panamax activities.
Commodities Market
12-Jul-24
-1.49%
0.83%
-1.42%
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9.60
9.70
9.80
9.90
10.00
10.10
10.20
12-Jun-24 28-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
83.54 83.50
Pound Sterling
107.83 106.65
EURO
90.77 90.37
100 Yen
52.49 51.97
Source: Refinitiv Figures in INR , *Value as on Jul
12, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar despite a decline in U.S. inflation
data that boosted expectations of policy easing
by the U.S. Federal Reserve.
Euro
• The euro rose against the greenback following
a surprising decline in the U.S. CPI, which
increased expectations the U.S. would start
easing interest rates sooner rather than later.
Pound
• Pound rose against the U.S. dollar as the recent
testimony to Congress by the U.S. Federal
Reserve Chair indicated a shift towards a more
dovish stance.
Y
en
• Yen rose against the U.S. dollar as there is
speculation that Japanese authorities may have
intervened to support the currency.
Currencies Markets
12-Jul-24
0.05%
1.00%
0.44%
1.10%
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15
The Week that was…
08
th
Jul to 12
th
Jul
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16
The Week that was (Jul 08 – Jul 12)
Date Events
Present
Value
Previous
Value
Monday,
July 08, 2024
• Germany Trade Balance (May) €24.9B €22.2B
• Eurozone Sentix Investor Confidence(Jul) -7.3 0.3
Tuesday,
July 09, 2024
• U.S. Redbook Index (YoY)(Jul 5) 6.30% 5.80%
• Japan Producer Price Index (MoM)(Jun) 0.20% 0.70%
Wednesday,
July 10, 2024
• China Consumer Price Index (YoY)(Jun) 0.20% 0.30%
• U.S. Wholesale Inventories (May) 0.60% 0.60%
• Japan Machinery Orders (MoM)(May) -3.20% -2.90%
Thursday,
July 11, 2024
• Germany Harmonized Index of Consumer Prices (YoY)(Jun) 2.5% 2.50%
• U.K. Industrial Production (MoM)(May) 0.2% -0.90%
• U.S. Manufacturing Production (MoM)(May) 0.40% -1.6%
• U.S. Consumer Price Index (MoM)(Jun) -0.10% 0%
• U.S. Initial Jobless Claims(Jul 5) 222K 239K
Friday,
July 12, 2024
• India Inflation Rate (YoY) (JUN) 5.08% 4.75%
• China Exports (YoY)(Jun) 8.60% 7.60%
• Germany Wholesale Price Index (MoM)(Jun) -0.30% 0.10%
• U.S. Producer Price Index (MoM)(Jun) 0.20% 0.00%
• U.S. Michigan Consumer Sentiment Index(Jul) PREL 66 68.2
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17
The Week Ahead
15
th
Jul to 19
th
Jul
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18
The Week Ahead
Day Event
Monday,
Jul 15, 2024
• India WPI Inflation (YoY) (Jun)
• China Gross Domestic Product (QoQ)(Q2)
• China Industrial Production (YoY)(Jun)
• Germany Retail Sales (YoY)(May)
Tuesday,
Jul 16, 2024
• European Central Bank (ECB) Bank Lending Survey
• U.S. Retail Sales (MoM)(Jun)
Wednesday,
Jul 17, 2024
• U.K. Consumer Price Index (YoY)(Jun)
• U.K. Retail Price Index (YoY)(Jun)
• Eurozone Core Harmonized Index of Consumer Prices (YoY)(Jun)
• U.S. Industrial Production (MoM)(Jun)
Thursday,
Jul 18, 2024
• U.K. Employment Change (3M) (May)
• European Central Bank Monetary Policy Statement
• U.S. Initial Jobless Claims (Jul 12)
• U.K. GfK Consumer Confidence (Jul)
Friday,
Jul 19, 2024
• Germany Producer Price Index (MoM)(Jun)
• U.K. Retail Sales (MoM)(Jun)
• Eurozone Current Account (May)
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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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completeness, adequacy and reliability of such data or information. Whilst no action has been solicited based upon the
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19
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