News You Can Use of 07 March 2024

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NEWS U CAN USE

Mar 07, 2025

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The Week that was…

Mar to 07

Mar

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Indian Economy

• The Manufacturing Purchasing Managers' Index fell to 56.3 in Feb 2025 compared to 57.7

in Jan 2025. While marking the slowest expansion since Dec 2023, the reading still

indicated strong operating conditions.

• India’s Services Purchasing Managers’ Index (PMI) surged to 59.0 in Feb 2025 from 56.5 in

Jan 2025, fueled by strong demand. The composite PMI rose to 58.8 in Feb 2025 from 57.7

in Jan 2025.

• The total gross goods and services tax (GST) revenue grew 9.1% YoY to Rs. 1.84 lakh crore

in Feb 2025 as compared to Rs. 1.68 lakh crore in Feb 2024.

• Foreign direct investment (FDI) in India experienced a decline of 5.6%, amounting to USD

10.9 billion during the Oct-Dec 2024 quarter, primarily due to global uncertainties.

Nevertheless, total FDI inflows for the period from Apr to Dec 2024 rose by 27%, reaching

USD 40.67 billion. Key contributors to this growth included Singapore, the U.S., and the

Netherlands, with significant investments directed towards the services and non-

conventional energy sectors.

• According to data released by the Goods and Services Tax Network portal, the growth in e-

way bills, or electronic permits, generated by businesses for transporting goods within and

across states, slowed to 14.7% YoY in Feb 2025, down from 23.1% growth in Jan 2025.

111.6 million e-way bills generated in Feb 2025.

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Domestic Equity Market Indices

Indices

07-Mar-25 1 Week Return YTD Return

BSE Sensex

74,332.58 1.55% -4.87%

Nifty 50

22,552.50 1.93% -4.62%

BSE Mid

-Cap 39,888.29 3.36% -14.12%

BSE Small

-Cap 45,606.86 5.86% -17.35%

Source: Refinitiv

Values as on Mar 07, 2025

• Domestic equity markets rose after

witnessing fall for three consecutive

weeks as key benchmark indices BSE

Sensex and Nifty 50 fell 1.55% and

1.93%, 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 rallied after

reports emerged that the U.S.

President will "probably" announce a

deal to reduce tariffs on Canada and

Mexico. Optimism increased as German

authorities decided to ease the nation's

fiscal constraints, commonly referred

to as the 'debt brake,' while China

intensified its economic stimulus

measures to protect its economy from

unprecedented changes. Additionally, a

drop in the U.S. dollar index further

extended the gains.

Ratios

BSE Sensex

Nifty 50 BSE Mid Cap

BSE Small

Cap

P/E

20.69 20.05 31.62 28.10

P/B

3.82 3.36 4.07 3.17

Dividend Yield

1.23 1.42 0.81 0.72

Source: NSE, BSE

Values as on Mar 07, 2025

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

03-Mar-25 837 2,075 0.40

04-Mar-25 1,653 1,199 1.38

05-Mar-25 2,458 410 6.00

06-Mar-25 2,244 645 3.48

07-Mar-25 1,814 1,060 1.71

Source: NSE

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Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

BSE Auto

47,095.58 2.69% -10.59%

BSE Bankex

55,501.35 1.18% -2.25%

BSE CD

53,975.12 1.91% -8.60%

BSE CG

58,911.86 6.64% -3.54%

BSE FMCG

18,836.63 2.47% -6.06%

BSE HC

39,556.91 3.52% -8.33%

BSE IT

37,196.91 1.41% -11.92%

BSE Metal

30,224.05 7.93% 4.53%

BSE Oil & Gas

23,833.79 5.58% -4.32%

Source:BSE

Values as on Mar 07, 2025

• On the BSE sectoral front, BSE Metal surged

7.93% as investors remained optimistic over

China's stimulus package and decline in the

strength of the U.S. dollar. European defence

spending measures also boosted the growth

outlook for the sector.

• BSE PSU gained 6.80% following a recent sell-

off, driven by positive developments as public

sector companies such as BEL, RVNL and RITES

Ltd. secured new orders.

Indian Derivatives Market Review

• Nifty Mar 2025 Futures stood at 22,649.95, a premium of 97.45 points above the spot

closing of 22,552.50.

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

1,014.93 lakh crore as against Rs. 836.72 lakh crore for the week to Feb 28.

• The Put-Call ratio stood at 0.89 compared with the previous week’s close of 1.01.

• The Nifty Put-Call ratio stood at 1.08 compared with the previous week’s close of 0.78.

Indian Equity Market (contd.)

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6.63

6.66

6.69

6.72

6.75

3-Mar 4-Mar 5-Mar 6-Mar 7-Mar

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

6.25 6.31 6.26 6.48

91 Day T-Bill

6.49 6.45 6.42 6.64

07.06% 2028, (5 Yr GOI)

6.57 6.59 6.62 6.76

06.79% 2034, (10 Yr GOI)

6.69 6.72 6.70 6.88

Source: Refinitiv Values as on Mar 07, 2025

• Bond yields declined as the RBI’s latest

liquidity measures boosted sentiment.

The central bank is set to buy

government securities through Open

Market Operation worth Rs. 50,000 crore

each on Mar 12 & 18, 2025, followed by a

$10 billion three-year dollar/rupee swap

on Mar 24, 2025. However, gains were

limited due to heavy debt supply from

states.

• Yield on the 10-year benchmark paper

(6.79% GS 2034) fell by 3 bps to close at

6.69% from the previous week’s close of

6.72%.

• Data from Reserve Bank of India showed

that India's foreign exchange reserves

decreased to $638.70 billion for the

week ended Feb 28, 2025 compared with

$640.48 billion a week earlier.

Domestic Debt Market

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-6

-3

6.00

6.30

6.60

6.90

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-Mar-25 28-Feb-25

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 6.68 7.68 100

3 Year 6.67 7.46 79

5 Year 6.71 7.37 66

10 Year 6.80 7.2 40

Source: Refinitiv

Values as on Mar 07, 2025

• Yields on gilt fell between 2 to 5 bps across the

maturities, barring 11 & 19 year papers that rose by

1 & 2 bps, respectively, while 1, 7 & 12 year papers

were unchanged.

• Corporate bond yields fell up to 4 bps across the

curve, barring 15 year paper that increased by 5 bps.

• Difference in spread between AAA corporate bond

and gilt remained steady or moved by 1 bps across

the segments, barring 4 & 7 year papers that

contracted by 2 & 3 bps, respectively, and 10 & 15

year papers that expanded by 2 & 8 bps,

respectively.

Domestic Debt Market (Spread Analysis)

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• The Union Finance Minister said that the government is dedicated to streamlining

regulatory procedures and plans to introduce the Jan Vishwas Bill 2.0, which aims to

decriminalize over 100 provisions. She emphasized the government's unwavering

commitment to reducing regulatory burdens and fostering trust-based governance.

• According to a notification from the government, India has reclassified platinum alloy

imports from the previously unrestricted category to the restricted category, with the

exception of imports containing 99% pure platinum alloy. This measure was implemented in

response to certain importers misrepresenting gold imports as platinum to evade higher

import duties.

• Minister for Railways, Information and Broadcasting, and Electronics and Information

Technology announced that the Cabinet Committee on Economic Affairs (CCEA) has

approved a Rs. 4,081.28 crore project for constructing a 12.9 km ropeway from Sonprayag

to Kedarnath through a public-private partnership.

• According to a notification by the government, India has allowed the export of 100% broken

rice after inventories reached a record high at the start of Feb 2025, nearly nine times the

government's target. India had banned exports of 100% broken rice in Sep 2022 and then

imposed curbs on exports of all other rice grades in 2023 after poor rainfall raised concerns

over production.

Regulatory Updates in India

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• The spokesperson for the Ministry of External Affairs stated that India seeks to strengthen

trade relations with the U.S. by lowering trade barriers through a bilateral trade

agreement. This initiative follows the U.S. President's announcement of reciprocal tariffs.

The Indian Prime Minister and the U.S. officials intend to negotiate a comprehensive multi-

sector agreement to enhance market access and deepen supply chain integration.

• NITI Aayog has specified that the consultant must compile a list of infrastructure assets

and land parcels identified by central ministries, departments, and central public sector

enterprises for monetization within a five-month timeframe. This list will cover the period

from 2025-26 to 2029-30, as outlined in the request for proposal document issued to

solicit bids from technical consultants.

Regulatory Updates in India (contd..)

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

151,000 jobs in Feb 2025 after rising by a downwardly revised 125,000 jobs in Jan 2025.

Economists had expected employment to grow by 160,000 jobs compared to the addition

of 143,000 jobs originally reported for the previous month.

• According to the Labor Department, the U.S. initial unemployment claims fell to 221,000

for the week ended Feb 28, 2025, representing a decline of 21,000 from the unrevised

figure of 242,000 recorded the previous week.

• According to the Institute for Supply Management, the U.S. services PMI rose to 53.5 in Feb

2025, an increase from Jan's figure of 52.8, with a value exceeding 50 signifying

expansions.

• According to Eurostat, Eurozone’s harmonized index of consumer prices recorded an

annual increase of 2.4% in Feb 2025, following a rise of 2.5% in Jan 2025.

• The European Central Bank has once again reduced its key interest rate by 25 basis points

on 06th Mar 2025 primary due to the anticipated decline in exports and investment, set

against a backdrop of significant trade uncertainty resulting from the ongoing tariff

conflict. The main refinancing rate was reduced by a quarter basis points to 2.65% and the

marginal lending facility rate to 2.90%.

• China's services Purchasing Managers' Index experienced an unexpected increase to 51.4

in Feb 2025 from 51.0 in Jan 2025. The growth in activity was propelled by a confluence of

increased sales, the initiation of new projects, and marketing efforts.

Global News/Economy

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Global Indices

Indices

07-Mar-25

1-Week

Return

YTD

Return

Russell 3000 2,978.92 -3.98% -5.77%

Nasdaq 100 20,201.37 -3.27% -3.86%

FTSE 100 8,679.88 -1.47% 6.20%

DAX Index 23,008.94 2.03% 15.57%

Nikkei Average 36,887.17 -0.72% -7.54%

Straits Times 3,914.48 0.48% 3.35%

Source: Refinitiv Value as on Mar 07,

2025

U.S.

• U.S. equity markets fell due to persistent

worries regarding the economic

repercussions of the new tariffs imposed

by the U.S. President on Canada, Mexico,

and China. Negative sentiment was also

elicited in response to a report from

payroll processor ADP, which indicated

that private sector job growth in Feb

2025 was significantly lower than

anticipated.

Europe

• European equity markets mostly rose as investors responded to quarterly earnings reports

and the European Central Bank's decision to lower interest rates. Additionally, the market

rose after the U.S. President’s choice to postpone the enforcement of tariffs on cars

imported from Canada and Mexico.

Asia

• Asian equity markets closed on a mixed note. The Chinese market rose following Beijing's

commitment to provide policy support for the technology and consumer sectors. However,

the Japanese market fell as the Japanese yen continued to strengthen, driven by increased

uncertainty regarding U.S. trade policies and hawkish indications from the Bank of Japan.

Global Equity Markets

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4.10

4.15

4.20

4.25

4.30

4.35

3-Mar 4-Mar 5-Mar 6-Mar 7-Mar

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

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

by 9 bps to close at 4.32% from the

previous week’s close of 4.23%.

• U.S. Treasury prices fell after comments

from the U.S. Federal Reserve Chair

indicated the central bank could be

patient in determining when to cut

interest rates.

• Further, prices fell following the U.S.

Chair indicating that the U.S. Federal

Reserve is not required to expedite rate

cuts, and it is yet to be determined if

the tariff strategies of the U.S.

President's administration will lead to

inflationary effects.

Global Debt (U.S.)

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9.00

9.50

10.00

10.50

11.00

7-Feb-25 23-Feb-25

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)

72.99 74.85

Gold ($/Oz)

2,910.79 2,858.60

Gold (Rs/10 gm)

85,730 84,789

Silver ($/Oz)

32.53 31.15

Silver (Rs/Kg)

96,614 93,287

Source: Refinitiv *Value as on Mar 07,

2025

Gold

• Gold prices rose amid safe-haven buying

triggered by concerns over the U.S.

President’s tariff policies. Additionally,

prices increased following the release of

U.S. job report data indicating that job

growth in Feb 2025 was lower than

anticipated.

Brent Crude

• Brent crude oil prices fell amid growth

concerns and expectations of excess

supply in the market. However, losses were

limited as upbeat manufacturing data from

China, the world’s biggest crude importer,

led to renewed optimism for fuel demand.

Baltic Dry Index

• The index rose over the week due to

improved capesize and panamax activities.

Commodities Market

07-Mar-25

-2.48%

1.83%

4.41%

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9.40

9.60

9.80

10.00

10.20

10.40

10.60

7-Feb-25 23-Feb-25

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

87.06 87.40

Pound Sterling

112.22 109.98

EURO

94.20 90.78

100 Yen

59.02 58.30

Source: Refinitiv Figures in INR , *Value as on

Mar 07, 2025

Rupee

• The Indian rupee in spot trade rose against the

U.S. dollar, supported by a weaker greenback

and a decline in crude oil prices.

Euro

• The euro rose against the U.S. dollar as

Germany’s proposed 500 billion euro ($531

billion) infrastructure fund boosted Europe’s

growth prospects despite global trade tensions

worrying investors.

Pound

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

showed the labor market in the world’s largest

economy slowed in Feb 2025, creating fewer

jobs than expected.

• The yen rose against the U.S. dollar following

the release of data indicating a slowdown in the

labor market of the world's largest economy in

Feb 2025.

Currencies Markets

07-Mar-25

-0.39%

1.23%

3.76%

2.04%

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The Week that was…

Mar to 07

Mar

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The Week that was (Mar 03 – Mar 07)

Date Events

Present

Value

Monday,

March 03, 2025

• China Caixin Manufacturing PMI (Feb)

50.80 50.10

• U.S. ISM Manufacturing PMI (Feb)

50.30 50.90

• Japan Unemployment Rate (Jan)

2.50% 2.40%

• Eurozone Core Harmonized Index of Consumer Prices (MoM) (Feb) Prel

0.60% -0.90%

Tuesday,

March 04, 2025

• Eurozone Unemployment Rate (Jan)

6.20% 6.20%

• U.S. API Weekly Crude Oil Stock (Feb 28)

-1.455M -0.64M

Wednesday,

March 05, 2025

• India HSBC Composite PMI Final Feb

58.8 57.7

• India HSBC Services PMI Final Feb

59 56.5

• U.S. ISM Services PMI (Feb)

53.5 52.8

• U.S. ADP Employment Change (Feb)

77K 186K

• China Caixin Services PMI (Feb)

51.4 51

Thursday,

March 06, 2025

• Eurozone Retail Sales (YoY) (Jan)

1.50% 1.90%

• European Central Bank's Rate On Deposit Facility

2.50% 2.75%

• U.S. Initial Jobless Claims (Feb 21)

221K 242K

Friday,

March 07, 2025

• China Trade Balance USD (Feb)

$170.51B $104.84B

• Eurozone Gross Domestic Product s.a. (QoQ) (Q4)

0.20% 0.10%

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

4.00% 3.90%

• U.S. Nonfarm Payrolls (Feb)

151K 125K

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The Week Ahead

Mar to 14

Mar

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The Week Ahead

Day Event

Monday,

Mar 10, 2025

• Germany Industrial Production (YoY) (Jan)

• Eurozone Sentix Investor Confidence (Mar)

• Japan Gross Domestic Product (QoQ) (Q4)

Tuesday,

Mar 11, 2025

• U.K. BRC Like-For-Like Retail Sales (YoY) (Feb)

• U.S. JOLTS Job Openings (Jan)

Wednesday,

Mar 12, 2025

• India Industrial Production YoY Jan

• India Inflation Rate YoY Feb

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

Thursday,

Mar 13, 2025

• U.S. Initial Jobless Claims (Mar 7)

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

Friday,

Mar 14, 2025

• China Trade Balance USD (Feb)

• Germany Harmonized Index of Consumer Prices (YoY) (Feb)

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

• U.K. Manufacturing Production (YoY) (Jan)

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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

information provided herein,

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