Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
NEWS U CAN USE
Jul 19, 2024
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
15
th
Jul to 19
th
Jul
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• India’s wholesale price index (WPI) based inflation surged to 16-month high of 3.36% YoY
in Jun 2024 as compared to 2.61% in May 2024. The positive rate of inflation in Jun, 2024
was primarily due to an increase in prices of food articles, manufacture of food products,
crude petroleum & natural gas, mineral oils, other manufacturing etc.
• India’s merchandise trade deficit widened to $20.98 billion in Jun 2024 from $19.19 billion
in Jun 2023. Exports surged 2.56% to $35.20 billion in Jun 2024 from $ 34.32 billion of the
same month of previous year and imports also rose by 4.99% to $56.18 billion from $53.51
billion during the same period.
• According to reports, direct tax collections in FY25 have surged by almost 20% to Rs. 5.74
lakh crore, driven by personal income tax flows. Additionally, corporate profits are also on
the rise, as evidenced by the advance tax collections.
• The International Monetary Fund maintained its status of fastest-growing economy for
India and raised India's FY25 growth projection to 7% from 6.8%. The latest upgrade
reflects carryover from upward revisions in 2023 and takes into account improved
prospects for private consumption, particularly in rural areas.
• India's agricultural exports fell by 3% to $5.88 billion in the first quarter of the current
fiscal year as a result of significant global challenges and limited domestic supply.
3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4
Domestic Equity Market Indices
Indices
19-Jul-24 1 Week Return YTD Return
BSE Sensex
80,604.65 0.11% 11.58%
Nifty 50
24,530.90 0.12% 12.88%
BSE Mid
-Cap 46,260.03 -2.63% 25.57%
BSE Small
-Cap 52,481.80 -2.84% 22.98%
Source: Refinitiv
Values as on Jul 19, 2024
• Domestic equity markets rose for the
seventh consecutive week as key
benchmark indices BSE Sensex and
Nifty 50 rose 0.11% and 0.12%,
respectively. However, the mid-cap
segment and the small-cap segment
closed the week in red.
• Domestic equity markets rose during
the week, driven by fresh foreign fund
inflows as sentiments remained
positive for the upcoming Union
Budget 2024 along with expectation of
robust Q1FY25 earnings by domestic
companies. However, fragile global
sentiments due to a number of factors,
including the deepening China-U.S.
trade disputes, unpredictability
surrounding the U.S. presidential
election and a dearth of stimulus
policies from China to spur economic
expansion, restricted the gains.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
24.47 23.31 32.26 35.39
P/B
4.05 4.16 4.19 3.88
Dividend Yield
1.18 1.24 0.85 0.56
Source: NSE, BSE
Values as on Jul 19, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
15-Jul-24 1,420 1,290 1.10
16-Jul-24 1,322 1,327 1.00
18-Jul-24 870 1,813 0.48
19-Jul-24 459 2,213 0.21
Source: NSE
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
BSE Auto
56,500.33 -1.19% -1.84%
BSE Bankex
60,167.10 0.04% 2.90%
BSE CD
57,500.54 -2.57% -2.19%
BSE CG
71,599.17 -4.47% -0.84%
BSE FMCG
22,058.75 2.00% 7.45%
BSE HC
38,156.16 -0.63% 3.59%
BSE IT
40,620.28 1.99% 13.32%
BSE Metal
31,517.10 -4.46% -4.82%
BSE Oil & Gas
30,812.00 -0.66% 6.23%
Source:BSE
Values as on Jul 19, 2024
• On the BSE sectoral front, BSE IT rose 1.99% in
anticipation of healthy first quarter earnings of
FY25 by the IT companies.
• BSE FMCG gained 2% as the upcoming Union
Budget 2024 is widely expected to have some
pro-consumption measures to support low-
income households that would provide benefit
to FMCG companies. The sector rose further
buoyed by progress in the monsoon and kharif
crops sowing.
Indian Derivatives Market Review
• Nifty Jul 2024 Futures stood at 24,529.10, a discount of 1.80 points below the spot closing
of 24,530.90.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1,373.71 lakh crore as against Rs. 1,719.99 lakh crore for the week to Jul 12.
• The Put-Call ratio stood at 1.07 compared with the previous week’s close of 0.87
• The Nifty Put-Call ratio stood at 1.11 compared with the previous week’s close of 1.28.
Indian Equity Market (contd.)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
6.95
6.96
6.97
6.98
15-Jul 16-Jul 18-Jul 19-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
6.53 6.46 6.65 6.80
91 Day T-Bill
6.76 6.76 6.87 7.00
07.06% 2028, (5 Yr GOI)
6.91 6.95 6.99 7.06
07.10% 2034, (10 Yr GOI)
6.96 6.99 6.97 7.18
Source: Refinitiv Values as on Jul 19, 2024
• Bond yields fell in tandem with a drop in
U.S. Treasury yields on expectations of
rate cut in Sep 2024 by the U.S. Federal
Reserve, while market participants
awaited for Union Budget 2024 where
the fiscal deficit and market borrowing
numbers will be in focus for further cues.
• Yield on the 10-year benchmark paper
(7.10% GS 2034) fell by 3 bps to close at
6.96% from the previous week’s close of
6.99%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
increased to $666.85 billion for the week
ended Jul 12, 2024 compared with
$657.16 billion a week earlier.
Domestic Debt Market
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
-8
-6
-4
-2
0
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 19-Jul-24 12-Jul-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 7.00 7.7 70
3 Year 7.01 7.49 48
5 Year 7.04 7.51 47
10 Year 7.09 7.51 42
Source: Refinitiv
Values as on Jul 19, 2024
• Yields on gilt fell up to 6 bps across the maturities,
barring 11 year paper that was unchanged.
• Corporate bond yields fell between 3 to 7 bps
across the curve.
• Difference in spread between AAA corporate bond
and gilt contracted up to 4 bps across the segments,
barring 1 year paper that expanded by 1 bps, while
5 year paper remained steady.
Domestic Debt Market (Spread Analysis)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• According to a consultation paper issued by SEBI, the capital market regulator has proposed
to create a New Asset Class (NAC) that would position between mutual funds and portfolio
management services (PMS) which would have more flexibility than a regular mutual fund
scheme and lower ticket size than PMS, where the minimum allowed investment would be
Rs.10 lakh. Under NAC, fund houses can launch multiple categories of schemes. However,
the market regulator gave reference of two types of schemes – Long-short equity fund and
inverse ETF/fund.
• SEBI has reappointed BSE Administration and Supervision Ltd. for another five years term
starting from Jul 25, 2024, to monitor the operations of Registered Investment Advisors
(RIA) and research analysts. The regulatory body has designated BSE Ltd. as the overseeing
body for Investment Adviser Administration and Supervisory Body (IAASB) to oversee RIAs
and ensure that they comply with the regulatory norms.
• IRDAI has revoked its guidelines on the commission of long-term motor insurance policies to
agents and implemented the current commission norms applicable for all other policies. As
a result, these policies will be equivalent to standard motor insurance policies with a one-
year validity period. As of right now, insurers are permitted to pay agents, brokers, and
motor insurance service providers up to 17.5% of the premium as the first-year commission
on five-year comprehensive motor insurance policies for two-wheelers. Insurers can now
provide commission structure within the expense of management.
Regulatory Updates in India
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9
• The government has warned representatives of top retailers of strict action after prices of
major pulses like tur, chana and urad, declined marginally in mandis but not in retail
market. The government reports that in the last month, the prices of chana, tur, and urad
in major mandis have dropped by as much as 4%, however, retail prices have not
decreased in a comparable manner.
• Telangana government is preparing to introduce a farm loan forgiveness initiative, keeping
a campaign pledge to assist 70 lakh farmers by granting waivers of up to Rs. 2 lakhs by Aug
15, 2024. The first round of payments, totalling Rs. 7,000 crores for loans up to Rs. 1 lakh is
set to be distributed with the goal of finishing the program by Aug 2024.
• The National Highways Authority of India has increased toll fees for vehicles without
FASTags, leading to congestion at toll booths. This program is implemented at 1,000 toll
plazas along 30,000 km of National Highways and vehicles not adhering to the rules risk
being blacklisted. FASTag adoption, as per the Highway Fee Rules 2008, stands at 98%,
encompassing 8 crore users.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• According to the Commerce Department, U.S. retail sales came in flat in MoM in Jun 2024
after rising by an upwardly revised 0.3% in May 2024. Economists had expected retail sales
to come in unchanged compared to the 0.1% uptick originally reported for the previous
month.
• According to the Office for National Statistics, U.K. consumer price index grew 2.0% on a
yearly basis in Jun 2024, the same pace of growth as seen in May 2024. On a monthly basis,
the CPI edged up 0.1%, as expected, after a 0.3% gain in May 2024.
• The European Central Bank left its key interest rates unchanged on 18th Jul, 2024. After
lowering them for the first time in five years in the previous session, policymakers head
into a summer break ahead of a possible rate reduction in Sep 2024 even as they worry
about sticky inflation. In Jun 2024, the European Central Bank cut the main refinancing
rate for the first time since 2019 by 25 basis points to 4.25%.
• According to the National Bureau of Statistics, China’s gross domestic product expanded
4.7% on YoY in the second quarter of 2024. That was weaker than economists' forecast of
5.1% expansion and also down from the 5.3% growth posted in the three months to Mar
2024.
• According to the National Bureau of Statistics, China’s industrial production climbed 5.3%
on YoY in Jun 2024, beating forecasts for 4.9% but still down from 5.6% in May 2024.
10
Global News/Economy
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
11
Global Indices
Indices
19-Jul-24
1-Week
Return
YTD
Return
Russell 3000 2,855.79 -3.76% 18.85%
Nasdaq 100 19,522.62 -3.98% 16.03%
FTSE 100 8,155.72 -1.18% 5.46%
DAX Index 18,171.93 -3.07% 8.48%
Nikkei Average 40,063.79 -2.74% 19.72%
Straits Times 3,447.56 -1.44% 6.40%
Source: Refinitiv Value as on Jul 19 2024
U.S.
• U.S. equity markets fell on concerns
about the near-term outlook for the
markets following the tech sell-off on
17th Jul, 2024. Further, the market
sentiment hit on worries about
geopolitical uncertainty in the U.S.
Additionally, the sell-off by
semiconductor stocks came after a report
suggested that political uncertainty could
impact global trade.
Europe
• European equity markets fell amid worries over decelerating Chinese economic expansion,
escalating trade disputes between China and the U.S. and political instability in France.
Asia
• Asian equity markets mostly fell as ongoing tensions between the U.S. and China
continued, and the ruling party of China concluded a high-level meeting without providing
specific plans to tackle economic challenges. The Hong Kong market fell on concerns over
a renewed trade war between Beijing and Washington.
Global Equity Markets
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4.10
4.15
4.20
4.25
15-Jul 16-Jul 17-Jul 18-Jul 19-Jul
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury rose
by 5 bps to close at 4.24% from the
previous week’s close of 4.19%.
• U.S. Treasury prices fell as investors
were waiting for upcoming U.S.
economic data and a Federal Reserve
policy meeting to gain insight into the
timing of potential interest rate cuts by
the U.S. central bank.
• Further, prices fell after increasing
anticipation that the former U.S.
President would win the presidential
race after surviving an assassination
attempt. Market participants suggest
that the winning of former U.S.
President could potentially pave the
way for more robust growth,
heightened inflation, and an increase in
government debt.
Global Debt (U.S.)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9.00
9.50
10.00
10.50
11.00
19-Jun-24 5-Jul-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($/Barrel)
86.67 88.8
Gold ($/Oz)
2,400.79 2,411.27
Gold (Rs/10 gm)
73,168 72,743
Silver ($/Oz)
29.26 30.77
Silver (Rs/Kg)
88,885 91,516
Source: Refinitiv *Value as on Jul 19 2024
Gold
• Gold prices ($/Oz) fell as profit bookings
began after gold reached a record high
earlier this week. However, losses were
restricted as there is increasing optimism
for a potential interest-rate reduction by
the U.S. Federal Reserve in Sep 2024.
Brent Crude
• Brent crude oil prices fell on concerns
about weak oil demand from China, and on
renewed hopes of a ceasefire in Gaza.
However, losses were limited following
hopes for interest-rate cuts by the U.S.
Federal Reserve and optimism that
summer travel demand will boost oil
consumption.
Baltic Dry Index
• The index fell over the week due to
sluggish capesize and panamax activities.
Commodities Market
19-Jul-24
-2.40%
-0.43%
-4.91%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9.50
9.60
9.70
9.80
9.90
10.00
10.10
10.20
10.30
19-Jun-24 5-Jul-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
19, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar due to weakness in other Asian
peers. Further, prices fell following the
greenback demand.
Euro
• The euro fell against the greenback following
the decision of the European Central Bank to
maintain interest rates at their current levels.
Pound
• Pound fell slightly against the U.S. dollar after a
report showed that U.K. retail sales decreased
1.2% MoM in Jun 2024, in contrast to the 2.9%
increase posted in May 2024 which missed
market expectations.
Y
en
• Yen edged up against the U.S. dollar as there is
speculation that Japanese officials have
intervened once again to bolster the long-
struggling currency from its multi-decade lows.
Currencies Markets
19-Jul-24
0.12%
0.99%
0.33%
0.32%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
15
th
Jul to 19
th
Jul
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
16
The Week that was (Jul 15 – Jul 19)
Date Events
Present
Value
Previous
Value
Monday,
July 15, 2024
• India WPI Inflation (YoY) (Jun) 3.36% 2.61%
• China Gross Domestic Product (QoQ)(Q2) 0.70% 1.50%
• Eurozone Industrial Production (MoM)(May) -0.60% 0.00%
Tuesday,
July 16, 2024
• U.S. Retail Sales (MoM)(Jun) 0% 0.30%
• U.S. Export Price Index (MoM)(Jun) -0.50% -0.70%
Wednesday,
July 17, 2024
• U.K. Consumer Price Index (MoM)(Jun) 0.10% 0.30%
• U.K. Retail Price Index (MoM)(Jun) 0.20% 0.40%
• Eurozone Core Harmonized Index of Consumer Prices (MoM)(Jun) 0.40% 0.30%
• U.S. Industrial Production (MoM)(Jun) 0.60% 1.00%
• Japan Exports (YoY)(Jun) 5.40% 13.50%
Thursday,
July 18, 2024
• U.K. Claimant Count Change(Jun) 32.3K 51.9K
• European Central Bank Main Refinancing Operations Rate 4.25% 4.25%
• U.S. Initial Jobless Claims (Jul 12) 243K 223K
• Japan National Consumer Price Index (YoY)(Jun) 2.80% 2.80%
Friday,
July 19, 2024
• Germany Producer Price Index (YoY)(Jun) -1.60% -2.20%
• U.K. Retail Sales (MoM)(Jun) -1.20% 2.90%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
22
nd
Jul to 26
th
Jul
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
The Week Ahead
Day Event
Monday,
Jul 22, 2024
• People’s Bank of China Interest Rate Decision
• Germany Retail Sales (YoY)(May)
• Germany German Buba Monthly Report
Tuesday,
Jul 23, 2024
• India Union Budget 2024
• Eurogroup Meeting
• U.S. Existing Home Sales Change (MoM)(Jun)
Wednesday,
Jul 24, 2024
• Germany GfK Consumer Confidence Survey (Aug)
• Germany HCOB Composite PMI(Jul) PREL
• U.K. S&P Global/CIPS Manufacturing PMI(Jul) PREL
• U.S. S&P Global Manufacturing PMI(Jul) PREL
Thursday,
Jul 25, 2024
• U.S. Gross Domestic Product Annualized(Q2) PREL
• U.S. Initial Jobless Claims (Jul 19)
• U.S. Personal Consumption Expenditures Prices (QoQ)(Q2) PREL
Friday,
Jul 26, 2024
• Japan Leading Economic Index (May)
• U.S. Core Personal Consumption Expenditures - Price Index (YoY)(Jun)
• U.S. Michigan Consumer Sentiment Index (Jul)
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
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
on information/data arising out of their own investigations. Before making any investments, the readers are advised to seek independent
professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor(s), the Investment Manager, the
Trustee, their respective directors, employees, associates or representatives shall be liable in any way for any direct, indirect, special, incidental,
consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
All information contained in this document has been obtained by ICRA Analytics Limited from sources believed by it to be accurate and reliable.
Although reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of
any kind, and ICRA Analytics Limited or its affiliates or group companies and its respective directors, officers, or employees in particular, makes no
representation or warranty, express or implied, as to the accuracy, suitability, reliability, timelines or completeness of any such information. All
information contained herein must be construed solely as statements of opinion, and ICRA Analytics Limited, or its affiliates or group companies and
its respective directors, officers, or employees shall not be liable for any losses or injury, liability or damage of any kind incurred from and arising out
of any use of this document or its contents in any manner, whatsoever. Opinions expressed in this document are not the opinions of our holding
company, ICRA Limited (ICRA), and should not be construed as any indication of credit rating or grading of ICRA for any instruments that have been
issued or are to be issued by any entity.
19
Disclaimer
Thank you for
your time.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Thank you for
your time.
