News You Can Use of 01 March 2024

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NEWS U CAN USE

March 01, 2024

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The Week that was…

Feb to 01

Mar

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Indian Economy

• Government data showed that India’s fiscal deficit for the period from Apr to Jan of FY24

stood at Rs. 11.03 lakh crore or 63.6% of budget estimates of the current fiscal. India’s

fiscal deficit stood at 67.8% of the budget estimate in the corresponding period of the

previous fiscal year. Total expenditure stood at Rs. 33.55 lakh crore or 74.7% of the budget

estimate as compared to 75.7% of the budget estimate in the corresponding period of the

previous fiscal year.

• According to the government data, the combined Index of Eight Core Industries increased

by 3.6% in Jan 2024 as compared to 9.7% in Jan 2023. The production of all Eight Core

Industries recorded growth in Jan 2024 over the corresponding month of last year except

refinery products and fertilizers. Coal witnessed the maximum growth at 10.2% in Jan

2024 followed by steel with 7.0% growth.

• Government data showed that Gross Domestic Product (GDP) of the Indian economy at

constant (2011-12) prices witnessed a growth of 8.4% in the third quarter of FY24. In the

Oct-Dec quarter of last year, the GDP growth rate was 4.3%. On the sectoral front, the

growth of the manufacturing sector soared to 11.6% in Q3 of FY24 from a negative 4.8%

in same quarter of previous fiscal year. However, Agriculture, Livestock, Forestry & Fishing

shrank by 0.8% in Q3 of FY24 compared to 5.2% growth in Q3 of FY23.

• The Manufacturing Purchasing Managers' Index rose to 5 months high to 56.9 in Jan 2024

compared to 56.5 in Dec 2023 supported by both domestic & external demand and easing

of pricing pressures.

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Domestic Equity Market Indices

Indices

01-Mar-24 1 Week Return YTD Return

S&P BSE Sensex

73,745.35 0.82% 2.08%

Nifty 50

22,338.75 0.57% 2.79%

S&P BSE Mid

-Cap 39,696.49 -0.60% 7.76%

S&P BSE Small

-Cap 45,532.46 -1.09% 6.70%

Source: Refinitiv

Values as on Mar 01, 2024

• Domestic equity markets rose for the

third consecutive week as key

benchmark indices S&P BSE Sensex and

Nifty 50 rose 0.82% and 0.57%

respectively. However, both the mid-

cap segment and small-cap segment

closed the week in red.

• Domestic equity markets reached fresh

high after domestic economy surprised

the markets with a faster-than-

anticipated growth rate in the

December quarter of FY24.

Government data showed that Indian

economy grew by roust 8.4% in the Q3

of FY24, with an upward revision in the

numbers of Q1 and Q2 data for this

fiscal. Sentiments were further boosted

following the slower growth of the U.S.

personal consumption expenditure

price index in Jan 2024 in nearly three

years.

Ratios

S&P BSE

Sensex

Nifty 50

S&P BSE

Mid Cap

S&P BSE

Small Cap

P/E

25.22 23.06 27.75 32.34

P/B

3.74 3.91 3.62 3.50

Dividend Yield

1.11 1.20 0.92 0.65

Source: NSE, BSE

Values as on Mar 01, 2024

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

26-Feb-24 992 1,569 0.63

27-Feb-24 947 1,570 0.60

28-Feb-24 402 2,149 0.19

29-Feb-24 1,242 1,262 0.98

01-Mar-24 1,652 900 1.84

Source: NSE

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Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

S&P BSE Auto

47,864.58 0.87% 8.37%

S&P BSE Bankex

53,755.26 1.05% 2.89%

S&P BSE CD

52,360.97 1.80% 5.02%

S&P BSE CG

58,842.59 3.72% 4.97%

S&P BSE FMCG

19,531.28 -0.39% -2.02%

S&P BSE HC

34,700.6 -2.94% 2.94%

S&P BSE IT

38,201.59 -1.10% 2.59%

S&P BSE Metal

27,896.94 1.83% 5.29%

S&P BSE Oil & Gas

28,256.24 -0.37% 9.05%

Source:BSE

Values as on Mar 01, 2024

• On the BSE Sectoral front, S&P BSE Capital

Goods surged 3.72% following the robust

growth of domestic economy during Oct-Dec

quarter of FY24. S&P BSE METAL experienced

gain of 1.83% following the growth in the

manufacturing sector.

• S&P BSE Health Care witnessed a fall of 2.94%

following the Supreme Court's discovery of the

discrepancy in costs between government and

private hospitals for different medical

procedures following a public interest lawsuit

brought by an NGO.

Indian Derivatives Market Review

• Nifty Mar 2024 Futures stood at 22,443.20, a premium of 76.10 points above the spot

closing of 22,367.10.

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

1853.19 lakh crore as against Rs. 2055.62 lakh crore for the week to Feb 23.

• The Put-Call ratio stood at 0.77 compared with the previous week’s close of 0.9.

• The Nifty Put-Call ratio stood at 1.29 compared with the previous week’s close of 1.02.

Indian Equity Market (contd.)

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7.04

7.05

7.06

7.07

7.08

26-Feb 27-Feb 28-Feb 29-Feb 1-Mar

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

6.61 6.68 6.74 6.55

91 Day T-Bill

6.90 7.05 7.04 6.81

05.74% 2026, (5 Yr GOI)

7.02 7.05 7.01 7.17

07.18% 2033, (10 Yr GOI)

7.06 7.08 7.06 7.14

Source: Refinitiv Values as on Mar 01, 2024

• Bond yields initially rose ahead of the

release of the Q3FY24 GDP data of the

domestic economy. However, the trend

reversed after the release the GDP data

as faster-than-anticipated growth rate of

the domestic economy for December

quarter along with ease in U.S. Treasury

yields extended the gains.

• Yield on the 10-year benchmark paper

(7.18% GS 2033) fell by 2 bps to close at

7.06% from the previous week’s close of

7.08%.

• Data from Reserve Bank of India showed

that India's foreign exchange reserves

increased to $619.07 billion for the week

ended Feb 23, 2024 compared with

$616.10 billion a week earlier.

Domestic Debt Market

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-20

-15

-10

-5

6.70

6.80

6.90

7.00

7.10

7.20

7.30

3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs

India Yield Curve Shift (%) (W-o-W)

Change in bps 01-Mar-24 23-Feb-24

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 7.13 7.84 71

3 Year 7.18 7.72 54

5 Year 7.18 7.65 47

10 Year 7.18 7.67 49

Source: Refinitiv

Values as on Mar 01, 2024

• Yields on gilt fell up to 4 bps across the maturities,

barring 6 year paper that rose by 1 bps, while 2, 7,

11 & 13 year papers were unchanged.

• Corporate bond yields increased up to 37 bps across

the curve, barring 4 & 5 year papers that fell by 3

bps each, while 1 & 3 year papers were unchanged.

• Difference in spread between AAA corporate bond

and gilt expanded up to 41 bps across the

segments, barring 4 & 5 year papers that contracted

by 2 bps each, while 6 year paper remained steady.

Domestic Debt Market (Spread Analysis)

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• The PFRDA has streamlined the requirements for becoming an NPS trustee and sponsor in

order to ensure ease of doing business. The regulator clarifies the responsibilities of pension

fund sponsors and the fulfilment of the "fit and proper person" requirements. Additionally,

the regulator has made it easier to appoint NPS trustees and the NPS Trust CEO.

• The Ministry of Statistics and Programme Implementation shortened the number of

estimates and the timeframe for releasing the final estimates for GDP by one year by

eliminating the third revised estimate. Instead of releasing six GDP figures, the ministry will

now release five, and the final revision will be released almost two years after the fiscal year

ends rather than three.

• According to media reports, SEBI has instructed fund houses through AMFI to ask for

confirmation from the unitholders in instances where joint mutual fund folios have the

name of mutual fund distributors (MFD) listed as the second or third holder. This is in

response to reports that SEBI discovered a few cases in which MFDs entered their names as

the second and third holder in joint mutual fund folios without the investors' knowledge or

consent.

• SEBI in a consultation paper suggested doing away with the need to make nomination

mandatory in joint mutual fund folios. SEBI has also proposed to exclude exchange traded

funds and index funds tracking equity indices from any sectoral exposure limit.

Regulatory Updates in India

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

• SEBI has instructed all fund houses through AMFI to implement a policy that will safeguard

the interests of investors in small and midcap funds. As per AMFI, trustees, in collaboration

with unitholder protection committees of AMCs, must guarantee that a policy

safeguarding the interests of all investors is implemented, given the increasing froth in the

market's small and mid-cap segments and the ongoing flows in mutual fund schemes

catering to these investors.

• According to reports, the Indian government is considering enhancing scrutiny of certain

corporates, including those with KYC requirements, to combat unscrupulous elements and

potential misdeeds. The finance secretary-headed committee is discussing various aspects

of a uniform KYC system, with Permanent Account Number (PAN) being used for KYC

requirements.

• The Competition Commission of India has proposed to modify the "confidentiality ring"

regime that controls how confidential information is handled in its proceedings in an

effort to expedite procedures and avoid any delays in case resolution.

Regulatory Updates in India (contd..)

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• According to the Commerce Department, U.S. consumer prices rose by 0.3% in Jan 2024

after inching up by a revised 0.1% in Dec 2024. Economists had expected consumer prices

to rise by 0.3% compared to the 0.2% uptick originally reported for the previous month.

• According to the Commerce Department, U.S. real gross domestic product in the fourth

quarter of 2023 was downwardly revised to 3.2% from the previously reported 3.3%.

Economists had expected the surge in GDP to be unrevised.

• According to Destatis, Germany’s retail sales decreased 0.4% in Jan 2024 from the previous

month, confounding expectations for an increase of 0.5%.

• According to Eurostat, eurozone’s consumer prices rose 2.6% in Feb 2024 annually after

rising 2.8% in Jan 2024. Prices were forecast to climb 2.5%. Core inflation that excludes

energy, food, alcohol and tobacco eased to 3.1% from 3.3% a month ago.

• According to the National Bureau of Statistics, China’s manufacturing PMI score of 49.1 in

Feb 2024. That's down from 49.2 in Jan 2024.

• According to the Ministry of Internal Affairs and Communications, Japan’s consumer prices

in Japan were up 2.2% on year in Jan 2024. That was in line with forecasts and down from

2.6% in Dec 2023.

• According to the Cabinet Office, Japan’s leading index, which measures future economic

activity, advanced to 110.2 in Dec 2023 from 108.1 in Nov 2023. In the flash report, the

score was 110.0.

Global News/Economy

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Global Indices

Indices

01-Mar-24

1-Week

Return

YTD

Return

Russell 3000 2,649.41 1.37% 10.26%

Nasdaq 100 18,302.91 2.04% 8.78%

FTSE 100 7,682.50 -0.31% -0.66%

DAX Index 17,735.07 1.81% 5.87%

Nikkei Average 39,910.82 2.08% 19.26%

Straits Times 3,135.76 -1.54% -3.23%

Source: Refinitiv Value as on Mar 01, 2024

U.S.

• U.S. equity markets rose after the

Commerce Department report was

released, indicating that U.S. consumer

prices rose in Jan 2024, in line with

forecasts by economists, and this data

increased anticipation that interest rate

cuts by the US Federal Reserve may

start in June 2024.

Europe

• European equity markets mostly fell on weakness in banking sector stocks and losses in

the energy sector following disappointing corporate results. However, losses were

restricted after the release of U.S. consumer prices, that increased in Jan 2024, as

predicted by experts, and this data heightened expectations that interest rate reductions

by the U.S. Fed may begin in Jun 2024.

Asia

• Asian equity markets mostly rose during the week. The Chinese market rose on hopes for

more aggressive stimulus steps. Additionally, the Japanese market rose as stocks in the

technology sector rose on hopes of a Jun 2024 rate drop in the U.S.

Global Equity Markets

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4.10

4.15

4.20

4.25

4.30

4.35

26-Feb 27-Feb 28-Feb 29-Feb 1-Mar

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 4.18% from the

previous week’s close of 4.26%.

• U.S. Treasury prices rose after inflation

rose in Jan 2024 as expected and

increasing speculation in the market

that the U.S. Federal Reserve will begin

reducing interest rates in Jun 2024.

• Further, prices rose after data showed

U.S. manufacturing slumped in Feb

2024, and this data further raised

expectations of interest rate cuts.

Global Debt (U.S.)

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9.00

9.20

9.40

9.60

9.80

10.00

10.20

10.40

10.60

1-Feb-24 16-Feb-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)

86.47 86.38

Gold ($/Oz)

2,083.39 2,035.72

Gold (Rs/10 gm)

62,442 61,732

Silver ($/Oz)

23.15 22.94

Silver (Rs/Kg)

69,826 69,345

Source: Refinitiv *Value as on Mar 01, 2024

Gold

• Gold prices rose after data showed that

U.S. inflation rose as expected in Jan 2024

and growing market speculation that the

U.S. Federal Reserve would start cutting

interest rates in Jun 2024.

Brent Crude

• Brent crude oil prices edged up slightly as

OPEC+ is expected to continue its

production cuts and the most recent U.S.

inflation data was in line with expectations.

Prices rose further on concerns about

supply and the uncertainty of the Middle

East's geopolitical situation.

Baltic Dry Index

• The index rose over the week due to

improved capesize and panamax activities.

Commodities Market

01-Mar-24

0.10%

2.34%

0.89%

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9.60

9.70

9.80

9.90

10.00

10.10

10.20

1-Feb-24 16-Feb-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

82.87 82.89

Pound Sterling

104.65 104.95

EURO

89.58 89.71

100 Yen

55.11 55.03

Source: Refinitiv Figures in INR , *

Value as on Mar 01, 2024

Rupee

• The Indian rupee in the spot trade rose against

the U.S. dollar following rise in the domestic

equity market and other Asian peers.

Euro

• Euro rose against the greenback after the

Institute for Supply Management showed U.S.

manufacturing slumped in Feb 2024.

Pound

• Pound declined against the U.S. dollar despite

weaker than expected economic data reported

from the U.S. as U.S. manufacturing slumped in

Feb 2024.

• Yen rose marginally against the U.S. dollar after

data showed Japan's core consumer inflation

exceeded forecasts in Jan 2024.

Currencies Markets

01-Mar-24

-0.02%

0.15%

-0.15%

-0.29%

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The Week that was…

Feb to 01

Mar

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The Week that was (Feb 26 – Mar 01)

Date Events

Present

Value

Monday,

February 26, 2024

• U.S. New Home Sales (MoM)(Jan) 0.661M 0.651M

• Japan National Consumer Price Index (YoY)(Jan) 2.20% 2.60%

Tuesday,

February 27, 2024

• Germany Gfk Consumer Confidence Survey(Mar) -29 -29.6

• U.S. Durable Goods Orders(Jan) -6.10% -0.30%

• U.S. API Weekly Crude Oil Stock(Feb 23) 8.428M 7.168M

Wednesday,

February 28, 2024

• Eurozone Economic Sentiment Indicator(Feb) 95.4 96.1

• Eurozone Consumer Confidence(Feb) -15.5 -15.5

• U.S. Gross Domestic Product Annualized(Q4) PREL 3.20% 3.30%

• Japan Retail Trade (YoY)(Jan) 2.30% 2.40%

Thursday,

February 29, 2024

• India Infrastructure Output (YoY) (Jan) 3.60% 4.9%

• India GDP Growth Rate (YoY) (Q3) 8.40% 8.10%

• Germany Retail Sales (YoY)(Jan) -1.40% -1.70%

• Germany Unemployment Change(Feb) 11K -2K

• U.S. Initial Jobless Claims(Feb 23) 215K 202K

• U.S. Core Personal Consumption Expenditures - Price Index (MoM)(Jan) 0.40% 0.10%

Friday,

March 01, 2024

• India HSBC Manufacturing PMI Final (Feb) 56.9 56.5

• China Caixin Manufacturing PMI(Feb) 50.9 50.8

• U.S. ISM Manufacturing PMI(Feb) 47.8 49.1

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The Week Ahead

Mar to 08

Mar

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The Week Ahead

Day Event

Monday,

Mar 04, 2024

• U.S. 6-Month Bill Auction

• Eurozone entix Investor Confidence (Mar)

Tuesday,

Mar 05, 2024

• India HSBC Composite PMI Final (Feb)

• China Caixin Services PMI(Feb)

• Germany HCOB Composite PMI(Feb)

• Eurozone HCOB Composite PMI(Feb)

• U.S. ISM Services PMI(Feb)

Wednesday,

Mar 06, 2024

• Germany Trade Balance (Jan)

• Eurozone Retail Sales (MoM)(Jan)

• U.S. ADP Employment Change (Feb)

Thursday,

Mar 07, 2024

• China Imports (YoY)(Jan)

• European Central Bank Monetary Policy Statement

• U.S. Initial Jobless Claims (Mar 1)

Friday,

Mar 08, 2024

• Germany Industrial Production (YoY)(Jan)

• Eurozone Gross Domestic Product (QoQ)(Q4)

• U.S. Average Hourly Earnings (YoY)(Feb)

• U.S. Nonfarm Payrolls (Feb)

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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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