Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
NEWS U CAN USE
Jun 21, 2024
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
17
th
Jun to 21
st
Jun
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• According to labour ministry, retail inflation for agricultural labourers and rural workers in
India remained flat at 7.7% and 7.02% in May 2024, respectively, compared to 7.03% and
6.96% a month ago.
• According to the Central Board of Direct Taxes, India's net direct tax collections have
surged by 21% YoY to over Rs. 4.62 lakh crore till Jun 17 of FY25.
• According to the provisional payroll data released by the ministry of labour and
employment, formal job creation under the Employees’ State Insurance Corporation fell by
7.8% YoY to 1.64 million in Apr 2024 as against 1.78 million in Apr 2023.
• The government's advance tax collection in this financial year till Jun 15 surged 27.6% YoY
to Rs. 1.48 lakh crore, signalling a robust economy and strong corporate performance.
• According to NITI Ayog, the government monetised assets worth Rs. 1.56 lakh crore in
2023-24 as against the target of Rs. 1.80 lakh crore under the National Monetisation
Pipeline taking the total monetisation to Rs. 3.85 lakh crore in three years since the launch
of the programme in 2020-21.
• According to the ministry of road transport and highways, 1288 km of national highways
were constructed in the current fiscal up to May 2024 as against 1465 km, during the
corresponding period in previous fiscal, indicating a dip of 12.1%. The capital expenditure
incurred during the period stood at Rs. 57,925 crore till May 2024, which is 42.5% of the
capital outlay under the vote on account provision for the first five months of 2024-25.
3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4
Domestic Equity Market Indices
Indices
21-Jun-24 1 Week Return YTD Return
BSE Sensex
77,209.90 0.28% 6.88%
Nifty 50
23,501.10 0.15% 8.14%
BSE Mid
-Cap 45,967.07 -0.20% 24.78%
BSE Small
-Cap 51,936.53 1.44% 21.71%
Source: Refinitiv
Values as on Jun 21, 2024
• Domestic equity markets rose for the
third consecutive week as key
benchmark indices BSE Sensex and
Nifty 50 rose 0.28% and 0.15%,
respectively. The small-cap segment
closed the week in green, however, the
mid-cap segment closed the week in
red with marginal losses.
• Domestic equity markets reached a
fresh high supported by a favorable
view of the overall domestic economy,
along with the hope for a prosperous
rainy season. Gains were extended
after the Swiss National Bank delivered
another interest rate cut, reducing its
policy rate by 25 bps to 1.25%.
Investors’ focus remained on the
upcoming Union budget along with
progress of the monsoon for further
cues.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
23.32 22.34 32.01 36.36
P/B
3.80 4.04 4.15 3.80
Dividend Yield
1.20 1.29 0.81 0.54
Source: NSE, BSE
Values as on Jun 21, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
18-Jun-24 1,494 1,191 1.25
19-Jun-24 1,039 1,602 0.65
20-Jun-24 1,676 963 1.74
21-Jun-24 1,166 1,451 0.80
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
56,742.38 -2.73% 6.89%
BSE Bankex
58,696.60 3.22% 6.83%
BSE CD
58,768.76 -1.21% 6.23%
BSE CG
71,779.22 -2.02% 6.11%
BSE FMCG
20,325.88 -1.88% 2.61%
BSE HC
36,773.21 -1.42% 2.95%
BSE IT
36,172.71 1.88% 6.12%
BSE Metal
33,736.40 0.42% -0.40%
BSE Oil & Gas
28,863.30 -2.53% -0.91%
Source:BSE
Values as on Jun 21, 2024
• On the BSE sectoral front, BSE Bankex rose
3.22% led by private sector banks due to
‘valuation comfort’ over public sector banks and
the return of foreign money.
• BSE IT increased 1.88% after a major U.S. based
information technology firm provided a positive
annual revenue growth forecast, indicating
demand in the crucial U.S. marketplace.
Indian Derivatives Market Review
• Nifty Jun 2024 Futures stood at 23,487.30, a discount of 13.80 points below the spot
closing of 23,501.10.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1,723.28 lakh crore as against Rs. 1,797.25 lakh crore for the week to Jun 14.
• The Put-Call ratio stood at 0.98 compared with the previous week’s close of 0.86.
• The Nifty Put-Call ratio stood at 1.04 compared with the previous week’s close of 1.30.
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
6.99
18-Jun 19-Jun 20-Jun 21-Jun
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
6.70 6.72 6.76 6.81
91 Day T-Bill
6.83 6.85 6.86 6.96
07.06% 2028, (5 Yr GOI)
6.98 7.00 7.05 7.11
07.10% 2034, (10 Yr GOI)
6.97 6.98 7.04 7.19
Source: Refinitiv Values as on Jun 21, 2024
• Bond yields fell tracking the drop in U.S.
Treasury yields following softer growth
in U.S. retail sales data in May 2024. Gains
were extended due to purchase by
foreign investors and banks that aided
sentiment ahead of a crucial week where
Indian bonds will be included in
JPMorgan's emerging market debt index.
• Yield on the 10-year benchmark paper
(7.10% GS 2034) fell by 1 bps to close at
6.97% from the previous week’s close of
6.98%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
decreased to $652.90 billion for the
week ended Jun 14, 2024 compared with
$655.82 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
6.70
6.80
6.90
7.00
7.10
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 21-Jun-24 14-Jun-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 7.07 7.84 77
3 Year 7.07 7.63 56
5 Year 7.12 7.54 42
10 Year 7.09 7.58 49
Source: Refinitiv
Values as on Jun 21, 2024
• Yields on gilt fell up to 6 bps across the maturities,
barring 1 & 5 year papers that were unchanged.
• Corporate bond yields increased between 2 to 10
bps across the curve, barring 3 to 5 year papers that
fell by 2 or 3 bps, while 2 & 6 year papers were
unchanged.
• Difference in spread between AAA corporate bond
and gilt expanded up to 12 bps across the
segments, barring 4 & 5 year papers that contracted
by 2 & 1 bps respectively.
Domestic Debt Market (Spread Analysis)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• According to media reports, the Indian government has sought a waiver for sovereign funds
from the tightened rules by the RBI, concerning investments in alternate investment funds
(AIFs). Earlier, the RBI has asked banks and non-banking financial companies to raise
provisions for AIF investments if they were also lenders to the projects in which the AIFs
were investing.
• The Union Cabinet approved the proposal of the Ministry of Home Affairs for Central Sector
Scheme 'National Forensic Infrastructure Enhancement Scheme' with a total financial outlay
of Rs. 2,254.43 crore during the period from 2024-25 to 2028-29.
• The Insolvency and Bankruptcy Board of India (IBBI) has proposed that the resolution plan
submitted by an investor won’t extinguish the creditors’ right to proceed against loan
guarantors to the stressed firm and enforce realisation of guarantees governed through
various agreements. The proposal is aimed to make it difficult for personal guarantors of
defaulting firms to escape liabilities.
• India has set stock limits on chickpeas and pigeon peas in an attempt to control prices and
stop hoarding amid rising food prices brought on by decreased supply due to drought and
heat waves. The limits apply to traders, businesses, and retailers, with specific caps such as
200 metric tons for wholesalers and five metric tons for retailers.
Regulatory Updates in India
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9
• The Directorate General of Foreign Trade has implemented a new automated system to
create ad hoc input-output norms in an effort to streamline foreign trade procedures.
Under this program, exporters can import duty-free raw materials to make goods that are
intended for export with prior authorization.
• According to the SEBI norms, if the KYC process is delayed because the email address was
not properly verified, and one of the required documents, such as a proof of identity (PoI)
or a proof of address (PoA), is verified, then AMCs/RTAs are required to fulfill the
redemption request even if the KYC status of the PAN is ‘on hold’.
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 crept up by 0.1% in May 2024
after dipping by a revised 0.2% in Apr 2024. Economists had expected retail sales to rise by
0.2% compared to the unchanged reading originally reported for the previous month.
• According to the Federal Reserve, U.S. industrial production jumped by 0.9% in May 2024
after coming in unchanged in Apr 2024. Economists had expected industrial production to
rise by 0.3%.
• According to Eurostat, eurozone’s harmonized index of consumer prices rose 2.6% on a
yearly basis in May 2024, following the 2.4% rise in Apr 2024.
• According to the Office for National Statistics, U.K. consumer price inflation softened to
2.0% in May 2024, as expected, from 2.3% in Apr 2024.
• According to Destatis, Germany’s producer prices decreased 2.2% on a yearly basis in May
2024, slower than the 3.3% fall in Apr 2024. Economists had forecast an annual fall of
2.0%.
• The Bank of England retained its key policy rate for the seventh straight session on 20th
Jun, 2024. The Monetary Policy Committee decided to hold the Bank Rate at 5.25% again
in a split vote. The current bank rate is the highest since early 2008.
• China's central bank maintained its lending rates unchanged, as widely expected. The
People's Bank of China kept its one-year loan prime rate unchanged at 3.45%. Similarly, the
five-year LPR, the benchmark for mortgage rates, was retained at 3.95%.
10
Global News/Economy
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
11
Global Indices
Indices
21-Jun-24
1-Week
Return
YTD
Return
Russell 3000 2,864.84 0.27% 19.23%
Nasdaq 100 19,700.43 0.21% 17.08%
FTSE 100 8,237.72 1.12% 6.52%
DAX Index 18,163.52 0.90% 8.43%
Nikkei Average 38,596.47 -0.56% 15.34%
Straits Times 3,306.02 0.26% 2.03%
Source: Refinitiv Value as on Jun 21, 2024
U.S.
• U.S. equity markets rose as investors
paused briefly to evaluate the latest
activities in the markets and the short-
term forecast. Further, the market
experienced positive sentiment due to
weak U.S. economic indicators released
last week, including a decrease in U.S.
consumer inflation and the U.S. producer
price index in May 2024.
Europe
• European equity markets mostly rose as investors were responding favourably to the
monetary policy updates released by the Bank of England and the Swiss National Bank as
the Bank of England kept its main policy rate unchanged for the seventh consecutive
meeting. The market rose further after the Swiss National Bank delivered another interest
rate cut, reducing its policy rate by 25 bps to 1.25%.
Asia
• Asian equity markets mostly rose due to positive expectations that the slowing U.S.
economy would help control inflation and prompt the U.S. Federal Reserve to lower its
primary interest rate later in the year.
Global Equity Markets
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4.15
4.20
4.25
4.30
17-Jun 18-Jun 20-Jun 21-Jun
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 4.26% from the
previous week’s close of 4.21%.
• U.S. Treasury prices fell after
surprisingly strong business activity was
reported in May 2024, which indicated
that the U.S. Federal Reserve has
another reason to hold off easing
interest rates.
• However, losses were restricted
following the release of data indicating
that retail sales in the world's largest
economy increased by a smaller amount
than anticipated in May 2024. It
strengthens the belief that the U.S.
Federal Reserve will probably begin
reducing interest rates later this year.
Global Debt (U.S.)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8.00
8.50
9.00
9.50
10.00
10.50
11.00
21-May-24 6-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($/Barrel)
87.56 82.59
Gold ($/Oz)
2,320.35 2,332.52
Gold (Rs/10 gm)
72,442 71,596
Silver ($/Oz)
29.52 29.54
Silver (Rs/Kg)
90,237 87,723
Source: Refinitiv *Value as on Jun 21, 2024
Gold
• Gold prices fell as investors weighed the
hawkish U.S. Federal Reserve comments
against escalating geopolitical tensions in
Europe and the Middle East. Further, prices
fell after data showed that U.S. private
sector activity accelerated in Jun 2024.
Brent Crude
• Brent crude oil prices rose after data
showed crude inventories in the U.S. fell
more than expected in the week ended
Jun 14th, 2024, and there is a positive
outlook for higher fuel demand during the
summer driving season. Increasing political
tensions in Europe and the Middle East also
contributed to the gains.
Baltic Dry Index
• The index rose over the week due to
improved capesize and panamax activities.
Commodities Market
21-Jun-24
6.02%
-0.52%
-0.07%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9.80
9.85
9.90
9.95
10.00
10.05
10.10
21-May-24 6-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
83.59 83.55
Pound Sterling
105.81 106.37
EURO
89.54 89.55
100 Yen
52.58 52.89
Source: Refinitiv Figures in INR , *Value as on Jun
21, 2024
Rupee
• The Indian rupee in the spot trade edged up
against the U.S. dollar following rise in the
domestic equity market and dollar sales by
state-run banks.
Euro
• The euro fell against the greenback after data
showed a strong U.S. economy as U.S. business
activity hit a 26-month high in Jun 2024.
Pound
• Pound fell against the U.S. dollar following the
release of data indicating a robust U.S.
economy, U.S. business activity reached its
highest level in 26 months in Jun 2024.
Y
en
• Yen fell against the U.S. dollar following the
release of data indicating a robust U.S.
economy.
Currencies Markets
21-Jun-24
0.05%
-0.59%
-0.02%
-0.53%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
17
th
Jun to 21
st
Jun
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
16
The Week that was (Jun 17 – Jun 21)
Date Events
Present
Value
Previous
Value
Monday,
June 17, 2024
• China Industrial Production (YoY)(May) 5.60% 6.70%
• Eurozone Labor Cost(Q1) 5.10% 3.40%
Tuesday,
June 18, 2024
• Eurozone Core Harmonized Index of Consumer Prices (MoM)(May) 0.40% 0.40%
• U.S. Retail Sales (MoM)(May) 0.10% -0.20%
• U.S. Industrial Production (MoM)(May) 0.90% 0%
Wednesday,
June 19, 2024
• U.K. Consumer Price Index (MoM)(May) 0.30% 0.30%
• U.K. Retail Price Index (MoM)(May) 0.40% 0.50%
Thursday,
June 20, 2024
• People's Bank of China Interest Rate Decision 3.45% 3.45%
• Germany Producer Price Index (YoY)(May) -2.20% -3.30%
• Bank of England Interest Rate Decision 5.25% 5.25%
• U.S. Initial Jobless Claims(Jun 14) 238K 243K
• U.K. GfK Consumer Confidence(Jun) -14 -17
• Japan National Consumer Price Index (YoY)(May) 2.80% 2.50%
Friday,
June 21, 2024
• U.K. Retail Sales (MoM)(May) 1.30% -2.30%
• Germany HCOB Composite PMI(Jun) PREL 50.6 52.4
• Eurozone HCOB Manufacturing PMI(Jun) PREL 45.6 47.3
• U.K. S&P Global/CIPS Manufacturing PMI(Jun) PREL 51.4 51.2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
24
th
Jun to 28
th
Jun
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
The Week Ahead
Day Event
Monday,
Jun 24, 2024
• Germany IFO – Business Climate (Jun)
• U.S. Dallas Fed Manufacturing Business Index (Jun)
Tuesday,
Jun 25, 2024
• U.S. Housing Price Index (MoM)(Apr)
• U.S. Consumer Confidence (Jun)
• U.S. API Weekly Crude Oil Stock (Jun 21)
Wednesday,
Jun 26, 2024
• U.S. New Home Sales Change (MoM)(May)
• Japan Retail Trade (YoY)(May)
Thursday,
Jun 27, 2024
• Eurozone Industrial Confidence (Jun)
• U.S. Durable Goods Orders (May)
• U.S. Gross Domestic Product Annualized(Q1)
• U.S. Initial Jobless Claims (Jun 21)
• Japan Unemployment Rate (May)
Friday,
Jun 28, 2024
• India Infrastructure Output (YoY) (May)
• India Current Account Q4FY24
• Germany Retail Sales (YoY)(May)
• U.K. Gross Domestic Product (QoQ)(Q1)
• Germany Unemployment Change(Jun)
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.
