News You Can Use of 07 June 2024

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NEWS U CAN USE

Jun 07, 2024

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The Week that was…

Jun to 07

Jun

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Indian Economy

• The Monetary Policy Committee in its second bi-monthly monetary policy review of FY25

kept key policy repo rate unchanged at 6.50% with immediate effect for the eighth

consecutive time. The standing deposit facility rate also remained unchanged at 6.25%.

Four out of six members voted to keep the policy repo rate unchanged.

• The RBI projected CPI inflation for 2024-25 at 4.5% with Q1 at 4.9%, Q2 at 3.8%, Q3 at

4.6%, and Q4 at 4.5%, with the risks are evenly balanced.

• The RBI projected real GDP growth for 2024-25 at 7.2% with Q1 at 7.3%, Q2 at 7.2%, Q3 at

7.3%, and Q4 at 7.2%, with the risks are evenly balanced.

• According to the Ministry of Finance, the gross Goods and Services Tax (GST) revenue for

the month of May 2024 stood at Rs. 1.73 lakh crore, representing a 10% YoY growth,

driven by a strong increase in domestic transactions and slowing of imports (down 4.3%).

After accounting for refunds, the net GST revenue for May 2024 stands at Rs. 1.44 lakh

crore, reflecting a growth of 6.9% YoY.

• The Manufacturing Purchasing Managers' Index eased slightly to 57.5 in May 2024

compared to 58.8 in Apr 2024. This signaled a slower but still substantial improvement in

the country’s manufacturing sector, amid a softer rise in new orders and output.

• India’s Services Purchasing Managers’ Index (PMI) eased slightly to 60.2 in May 2024 as

compared to 60.8 in Apr 2024 mainly due to weaker domestic demand. Composite PMI

also eased to 60.5 from 61.5 in the same period.

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Domestic Equity Market Indices

Indices

07-Jun-24 1 Week Return YTD Return

BSE Sensex

76,693.36 3.69% 6.16%

Nifty 50

23,290.15 3.37% 7.17%

BSE Mid

-Cap 44,111.44 2.94% 19.74%

BSE Small

-Cap 48,731.55 3.11% 14.20%

Source: Refinitiv

Values as on Jun 07, 2024

• Domestic equity markets rose after

witnessing fall in the previous week as

key benchmark indices BSE Sensex and

Nifty 50 rose 3.69% and 3.37%,

respectively. The rally was broad based

as the mid-cap segment and the small-

cap segment both closed the week in

green.

• Domestic equity markets rebounded

sharply after suffering significant losses

amid concerns that a smaller majority

of the new government would find it

more difficult to enact reforms and

fund infrastructure. The key benchmark

indices reached a fresh high as

investors remained hopeful for policy

continuity and reforms in anticipation

of stability within the coalition

government at the Centre. Gains were

extended after the RBI revised the GDP

growth rate upward for FY25.

Ratios

BSE Sensex

Nifty 50 BSE Mid Cap

BSE Small

Cap

P/E

23.17 22.15 30.71 34.10

P/B

3.78 4.08 3.98 3.62

Dividend Yield

1.14 1.23 0.87 0.58

Source: NSE, BSE

Values as on Jun 07, 2024

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

03-Jun-24 1,661 971 1.71

04-Jun-24 179 2,448 0.07

05-Jun-24 1,913 709 2.70

06-Jun-24 2,174 422 5.15

07-Jun-24 2,139 486 4.40

Source: NSE

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Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

BSE Auto

56,623.88 6.78% 12.03%

BSE Bankex

56,766.69 1.78% 3.35%

BSE CD

57,152.71 4.07% 9.18%

BSE CG

68,852.26 -1.72% 11.89%

BSE FMCG

20,883.10 6.93% 4.13%

BSE HC

36,301.88 4.05% 3.51%

BSE IT

35,909.41 8.17% 4.66%

BSE Metal

33,281.05 1.74% 7.84%

BSE Oil & Gas

28,614.34 -0.09% 2.47%

Source:BSE

Values as on Jun 07, 2024

• On the BSE sectoral front, BSE IT surged 8.17%

following the European Central Bank’s decision

to cut the interest rate by 25 bps, as European

Union markets are pretty big for some domestic

information technology firms.

• BSE FMCG gained 6.93% due to positive factors

like the monsoon forecast expectation of a rural

pickup. In addition, investors responded

favorably to FMCG stocks after the Lok Sabha

election results, expecting the government to

prioritize consumption, particularly in rural

areas, which could spur additional volume

growth.

Indian Derivatives Market Review

• Nifty Jun 2024 Futures stood at 23,325.15, a premium of 35.00 points above the spot

closing of 23,290.15.

• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.

1,825.19 lakh crore as against Rs. 1,665.30 lakh crore for the week to May 31.

• The Put-Call ratio stood at 0.78 compared with the previous week’s close of 0.79.

• The Nifty Put-Call ratio stood at 1.15 compared with the previous week’s close of 1.00.

Indian Equity Market (contd.)

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6.85

6.90

6.95

7.00

7.05

3-Jun 4-Jun 5-Jun 6-Jun 7-Jun

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

6.52 6.69 6.54 6.70

91 Day T-Bill

6.88 6.89 6.97 6.98

07.06% 2028, (5 Yr GOI)

7.02 7.05 7.12 7.22

07.10% 2034, (10 Yr GOI)

7.02 6.98 7.09 7.24

Source: Refinitiv Values as on Jun 07, 2024

• Bond yields fell initially after exit polls

signalled that the incumbent party at the

centre would secure a third term with a

wider majority. However, the trend

reversed, as yields rose after vote-

counting trends showed that the existing

party alliance at the centre would win a

narrower majority than was expected.

However, losses were restricted on value

buying following the strong drop in

prices.

• Yield on the 10-year benchmark paper

(7.10% GS 2034) rose by 4 bps to close at

7.02% from the previous week’s close of

6.98%.

• Data from Reserve Bank of India showed

that India's foreign exchange reserves

increased to $651.51 billion for the week

ended May 31, 2024 compared with

$646.67 billion a week earlier.

Domestic Debt Market

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-5

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 07-Jun-24 31-May-24

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 7.17 7.94 77

3 Year 7.14 7.68 54

5 Year 7.15 7.59 44

10 Year 7.14 7.58 44

Source: Refinitiv

Values as on Jun 07, 2024

• Yields on gilt rose up to 8 bps across the maturities,

barring 3 to 6 year papers that fell between 2 to 6

bps, while 15 & 30 year papers were unchanged.

• Corporate bond yields increased up to 2 bps across

the curve, barring 3 to 5 & 15 year papers that fell

by 2 or 3 bps, while 6 year paper was unchanged.

• Difference in spread between AAA corporate bond

and gilt contracted up to 7 bps across the segments,

barring 3 & 6 year papers that expanded by 1 & 6

bps respectively, while 4 & 5 year papers remained

steady.

Domestic Debt Market (Spread Analysis)

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• The National Highways Authority of India has decided to increase toll rates by an average of

5% for motorists on national highways around the nation w.e.f. Jun 3, 2024.

• According to the proposed Central Excise Bill, 2024, excisable goods produced or

manufactured in Special Economic Zones (SEZs) that are transported to other locations in

India are subject to duty. The Bill states that the Central government must notify each

exemption separately if it is deemed appropriate.

• The Competition Commission of India intends to appoint monitoring agencies to supervise

the close monitoring of the settlement and commitments made by businesses, including Big

Tech entities, in antitrust cases.

• According to a judgment by the Rajasthan Authority for Advance Ruling, infant food

products containing ingredients other than milk may be subject to an 18% goods and

services tax, contrasting with the 5% applicable to milk products.

Regulatory Updates in India

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• The RBI has proposed to revise the definition of bulk deposits as ‘Single Rupee term

deposits of Rs. 3 crore and above’ from the existing ‘Single Rupee term deposits of Rs. 2

crore and above’ for Scheduled Commercial Banks (excluding Regional Rural Banks) and

Small Finance Banks.

Regulatory Updates in India (contd..)

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• According to the Labor Department, U.S. non-farm payroll employment surged by 272,000

jobs in May 2024 after climbing by a downwardly revised 165,000 jobs in Apr 2024.

Economists had expected employment to increase by about 185,000 jobs compared to the

addition of 175,000 jobs originally reported for the previous month.

• According to the Institute for Supply Management, U.S. services PMI jumped to 53.8 in May

2024 from 49.4 in Apr 2024, with a reading above 50 indicating growth in the sector.

Economists had expected the index to inch up to 50.8.

• According to the Institute for Supply Management, U.S. manufacturing PMI edged down to

48.7 in May 2024 from 49.2 in Apr 2024, with a reading below 50 indicating contraction.

Economists had expected the index to inch up to 49.6.

• According to Eurostat, eurozone’s producer prices slid 5.7% on a yearly basis in Apr 2024,

weaker than the 7.8% drop in Mar 2024. Prices were forecast to fall at a much slower pace

of 5.1%.

• According to a survey, China’s Caixin manufacturing Purchasing Managers' Index rose

more-than-expected to 51.7 in May 2024 from 51.4 in the previous month. The reading was

seen at 51.6.

• According to a survey, Japan’s manufacturing PMI score of 50 in May 2024. That's up from

49.6 in Apr 2024, and it moves above the boom-or-bust line of 50 that separates expansion

from contraction.

Global News/Economy

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Global Indices

Indices

07-Jun-24

1-Week

Return

YTD

Return

Russell 3000 2,766.34 2.50% 15.13%

Nasdaq 100 19,000.95 2.50% 12.93%

FTSE 100 8,245.37 -0.36% 6.62%

DAX Index 18,557.27 0.32% 10.78%

Nikkei Average 38,683.93 0.51% 15.60%

Straits Times 3,330.77 -0.17% 2.79%

Source: Refinitiv

Value as on Jun 07, 2024

U.S.

• U.S. equity markets rose as

semiconductor equipment manufacturers

are posting standout gains after a rating

agency upgraded its rating on the stocks

to Equal-Weight from Underweight. Wall

Street's strength was further reinforced

by a report from payroll processor ADP,

which showed that private sector job

creation in the U.S. slowed by more than

expected in May 2024.

Europe

• European markets mostly rose because of the first interest rate reduction by the European

Central Bank since Sep 2019. Sentiment was also supported by expectations that the U.S.

Federal Reserve would lower interest rates in Sep 2024. Increase in the Eurozone

Composite PMI and a growth in French industrial production also contibuted to the gains.

Asia

• Asian equity markets closed on a mixed note. The market rose as the European Central

Bank's first interest rate decrease since Sep 2019. However, gains were limited as strong

wage data in Japan raised the likelihood of a 2024 interest rate increase by the Bank of

Japan.

Global Equity Markets

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4.20

4.25

4.30

4.35

4.40

4.45

3-Jun 4-Jun 5-Jun 6-Jun 7-Jun

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

• Yields on the 10-year U.S. Treasury fell

by 8 bps to close at 4.43% from the

previous week’s close of 4.51%.

• U.S. Treasury prices rose following data

indicating that May 2024 saw a second

consecutive month of slowing U.S.

manufacturing activity raised hopes that

the Federal Reserve could be able to

lower interest rates later this year due

to the deteriorating economy.

• However, gains were restricted after

data showed that U.S. job growth

accelerated far more than expected in

May 2024, which heightened concerns

that the U.S. Federal Reserve might

decide to maintain higher interest rates

for a longer length of time.

Global Debt (U.S.)

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6.00

8.00

10.00

12.00

14.00

7-May-24 23-May-24

Global Commodity Movement

Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)

Global Commodity Prices

Rebased to 10

Source: Refinitiv

Performance of various commodities

Commodities

Last Closing* 1-Week Ago

Brent Crude($/Barrel)

79.26 80.55

Gold ($/Oz)

2,292.71 2,326.97

Gold (Rs/10 gm)

71,748 72,127

Silver ($/Oz)

29.18 30.38

Silver (Rs/Kg)

90,394 92,323

Source: Refinitiv *Value as on Jun 07, 2024

Gold

• Gold prices fell as strong non-farm payroll

data for May 2024 increased the value of

the greenback relative to a number of

other currencies and stoked fears that the

U.S. Fed might keep interest rates higher

for an extended period of time.

Brent Crude

• Brent crude oil prices fell on concerns the

U.S. Federal Reserve will likely hold interest

rates higher for longer as data shows that a

significantly greater than anticipated

increase in U.S. non-farm payroll

employment in May 2024. Further, prices

fell amid concerns about possible

oversupply in the market.

Baltic Dry Index

• The index rose over the week due to

improved capesize and panamax activities.

Commodities Market

7-Jun-24

-1.60%

-1.47%

-3.95%

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9.40

9.60

9.80

10.00

10.20

10.40

7-May-24 23-May-24

USD GBP Euro JPY

Source: Refinitiv

Currency Prices ( in terms of INR)

Rebased to 10

Currency Movement

Movement of Rupee vs Other Currencies

Currency

Last Closing* 1-Wk Ago

US Dollar

83.43 83.30

Pound Sterling

106.66 105.93

EURO

90.84 90.12

100 Yen

53.72 53.08

Source: Refinitiv Figures in INR , *Value as on Jun 07, 2024

Rupee

• The Indian rupee in the spot trade rose against

the U.S. dollar as the Reserve Bank of India

keeps policy rate unchanged at 6.50%. Further,

prices rose following rise in the domestic equity

markets.

Euro

• The euro fell against the greenback after data

revealed that the largest economy in the world

generated much more employment in May

2024 than anticipated.

Pound

• Pound fell against the U.S. dollar after data

showed the world’s largest economy created a

lot more jobs than expected in May 2024.

• Yen rose against the U.S. dollar despite data

showing the world’s largest economy creating a

lot more jobs than expected in May 2024.

Currencies Markets

7-Jun-24

0.15%

1.21%

0.80%

0.69%

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The Week that was…

Jun to 07

Jun

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The Week that was (Jun 03 – Jun 07)

Date Events

Present

Value

Monday,

June 03, 2024

• China Caixin Manufacturing PMI(May) 51.7 51.4

• Germany HCOB Manufacturing PMI(May) 45.4 45.4

• U.S. ISM Manufacturing PMI(May) 48.7 49.2

• U.K. BRC Like-For-Like Retail Sales (YoY)(May) 0.40% -4.40%

Tuesday,

June 04, 2024

• Germany Unemployment Change(May) 25K 11K

• U.S. JOLTS Job Openings(Apr) 8.059M 8.355M

• Japan Labor Cash Earnings (YoY)(Apr) 2.10% 1%

Wednesday,

June 05, 2024

• China Caixin Services PMI(May) 54 52.5

• Germany HCOB Composite PMI(May) 52.4 52.2

• Eurozone Producer Price Index (MoM)(Apr) -1% -0.50%

• U.S. ISM Services PMI(May) 53.8 49.4

Thursday,

June 06, 2024

• Germany Factory Orders (MoM)(Apr) -0.20% -0.80%

• Eurozone Retail Sales (YoY)(Apr) 0% 0.70%

• European Central Bank Main Refinancing Operations Rate 4.25% 4.50%

• U.S. Initial Jobless Claims(May 31) 229K 221K

Friday,

June 07, 2024

• China Trade Balance USD(May) $82.62B $72.35B

• Japan Leading Economic Index(Apr) PREL 111.6 111.7

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The Week Ahead

Jun to 14

Jun

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The Week Ahead

Day Event

Monday,

Jun 10, 2024

• Eurozone Sentix Investor Confidence (Jun)

• Japan Money Supply M2+CD (YoY)(May)

Tuesday,

Jun 11, 2024

• U.K. Employment Change (3M) (Apr)

• Japan Producer Price Index (YoY)(May)

Wednesday,

Jun 12, 2024

• India Inflation Rate (YoY) (May)

• China Consumer Price Index (MoM)(May)

• Germany Consumer Price Index (MoM)(May)

• U.K. Gross Domestic Product (MoM)(Apr)

• U.K. Manufacturing Production (MoM)(Apr)

• U.S. Consumer Price Index (MoM)(May)

• U.S. Fed Interest Rate Decision

Thursday,

Jun 13, 2024

• Eurozone Industrial Production (MoM)(Apr)

• U.S. Initial Jobless Claims (Jun 7)

• U.S. Producer Price Index ex Food & Energy (YoY)(May)

Friday,

Jun 14, 2024

• Bank of Japan Interest Rate Decision

• U.S. Michigan Consumer Sentiment Index (Jun) PREL

• U.S. Fed Monetary Policy Report

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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

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