News You Can Use of 08 March 2024

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NEWS U CAN USE

March 08, 2024

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The Week that was…

Mar to 08

Mar

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Indian Economy

• India’s Services Purchasing Managers’ Index (PMI) eased to 60.6 in Feb 2024 as compared

to 61.8 in Jan 2024 due to softer expansions in business activity, sales and jobs. Composite

PMI also eased to 60.6 from 61.2 in the same period.

• According to estimates from dealers, India's imports of palm oil fell 35.6% MoM to

504,000 metric tons in Febc2024, the lowest level since May 2023. This decline was

attributed to buyers shifting their purchases from palm oil to sunflower oil due to rising

prices.

• A major global credit rating agency increased India's GDP growth forecast for the 2024

calendar year to 6.8% from 6.1%. The rise in the estimate was ascribed to the improving

global economic conditions and India's strong economic performance in 2023.

• According to preliminary data compiled by the rural development ministry, demand for

work under the Mahatma Gandhi National Rural Employment Guarantee Scheme fell to

26.21 million in Feb 2024 compared to 26.23 million a year earlier. As the economy is

predicted to grow at a higher rate of 7.6% in FY24, up from 7% the previous fiscal year,

this trend aligns with the broader economic recovery.

• According to the data released by the Petroleum Planning and Analysis Cell of the oil

ministry, India's fuel consumption rose 5.7% YoY to 19.72 million metric tons, supported

by strong factory activity.

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Domestic Equity Market Indices

Indices

07-Mar-24 1 Week Return YTD Return

S&P BSE Sensex

74,119.39 0.51% 2.60%

Nifty 50

22,493.55 0.69% 3.51%

S&P BSE Mid

-Cap 39,852.85 0.39% 8.18%

S&P BSE Small

-Cap 44,653.57 -1.93% 4.64%

Source: Refinitiv

Values as on Mar 07, 2024

• Domestic equity markets rose for the

fourth consecutive week as key

benchmark indices S&P BSE Sensex and

Nifty 50 rose 0.51% and 0.69%

respectively. The mid-cap segment

closed the week in green, however, the

small-cap segment closed the week in

red.

• Domestic equity markets rose during

the week due to optimism for future

growth of domestic economy

supported by the robust economic

growth of the Indian economy during

the third quarter of the financial year

2023-24. Sentiments were boosted

after the U.S. Federal Reserve

Chairperson hinted at potential rate

cuts later this year but signalled

uncertainty about inflation and growth.

Ratios

S&P BSE

Sensex

Nifty 50

S&P BSE

Mid Cap

S&P BSE

Small Cap

P/E

25.39 23.22 27.89 31.75

P/B

3.77 3.94 3.64 3.44

Dividend Yield

1.10 1.19 0.91 0.66

Source: NSE, BSE

Values as on Mar 07, 2024

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

04-Mar-24 876 1,711 0.51

05-Mar-24 825 1,733 0.48

06-Mar-24 558 2,009 0.28

07-Mar-24 1,571 989 1.59

Source: NSE

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Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

S&P BSE Auto

48,387.93 1.09% 7.31%

S&P BSE Bankex

54,394.38 1.19% 6.71%

S&P BSE CD

52,673.36 0.60% 6.54%

S&P BSE CG

59,466.79 1.06% 6.32%

S&P BSE FMCG

19,554.05 0.12% 0.77%

S&P BSE HC

34,896.13 0.56% 0.24%

S&P BSE IT

37,744.24 -1.20% -2.42%

S&P BSE Metal

28,737.21 3.01% 1.87%

S&P BSE Oil & Gas

28,466.20 0.74% -0.46%

Source:BSE

Values as on Mar 07, 2024

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

increased 3.01% as a result of the domestic

economy's stronger-than-expected growth

during the current fiscal year, which improved

the sentiment of investors toward metal shares.

• S&P BSE IT fell by 1.20% on concerns over near-

term earnings in the information technology

sector due to uncertainties in the global market.

Indian Derivatives Market Review

• Nifty Mar 2024 Futures stood at 22,552.35, a premium of 58.80 points above the spot

closing of 22,493.55.

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

1703.13 lakh crore as against Rs. 1853.19 lakh crore for the week to Mar 01.

• The Put-Call ratio stood at 0.98 compared with the previous week’s close of 0.77.

• The Nifty Put-Call ratio stood at 1.07 compared with the previous week’s close of 1.29.

Indian Equity Market (contd.)

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7.00

7.02

7.04

7.06

7.08

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

6.54 6.61 6.65 6.71

91 Day T-Bill

6.91 6.90 7.04 6.85

05.74% 2026, (5 Yr GOI)

7.04 7.02 7.05 7.20

07.18% 2033, (10 Yr GOI)

7.03 7.06 7.08 7.18

Source: Refinitiv Values as on Mar 07, 2024

• Bond yields fell during the week

following the ease in U.S. Treasury yields

as expectations of a rate cut later this

year were reinforced by remarks made by

the chairperson of the U.S. Federal

Reserve. However, the inclusion of

government bonds to Bloomberg Index

Services failed to have a significant effect

on bond yields even after disclosing its

timeline.

• Yield on the 10-year benchmark paper

(7.18% GS 2033) fell by 3 bps to close at

7.03% from the previous week’s close of

7.06%.

• Data from Reserve Bank of India showed

that India's foreign exchange reserves

increased to $625.63 billion for the week

ended Mar 01, 2024 compared with

$619.07 billion a week earlier.

Domestic Debt Market

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-4

-2

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 07-Mar-24 01-Mar-24

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 7.16 7.96 80

3 Year 7.17 7.78 61

5 Year 7.15 7.66 51

10 Year 7.15 7.57 42

Source: Refinitiv

Values as on Mar 07, 2024

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

barring 1 & 15 year papers that rose by 5 & 4 bps

respectively, while 2 year paper was unchanged.

• Corporate bond yields fell up to 47 bps across the

curve, barring 1 to 4 year papers that increased

between 5 to 11 bps.

• Difference in spread between AAA corporate bond

and gilt expanded up to 10 bps across the

segments, barring 6, 7, 10 & 15 year papers that

contracted between 4 to 51 bps.

Domestic Debt Market (Spread Analysis)

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• The Reserve Bank of India and the Bank of Indonesia signed a Memorandum of

Understanding in order to optimize costs and settlement times for transactions to

encourage the use of local currencies for cross-border transactions. This allows importers

and exporters to invoice and pay in their respective domestic currencies.

• The Competition Commission of India regulations followed a notification issued by the

ministry of corporate affairs stipulating Mar 6, 2024 as the date for implementing the

relevant provisions of the Competition (Amendment) Act 2023 that deal with the new

monetary penalty regime. It prescribed monetary penalty on the global turnover of a

company engaged in anti-competitive conduct.

• According to the media reports, starting from Apr 1, 2024, the unspent portion of the funds

that the Center transfers to the states via the single nodal agency will be settled within a

day, removing the need for it to be kept outside of the government account for more than

24 hours.

• AMFI has requested that fund houses to refrain from holding Mutual Fund Distributors

(MFD) training sessions in foreign nations and well-known tourist spots. Rather, AMFI

suggested that AMCs consider conducting these kinds of programs in strategically placed

and easily accessible areas across the nation. The trade association reaffirmed that AMCs are

only permitted to pay trail commission only in monetary terms. Additionally, in order to

reward their distribution partners for hitting sales goals, AMCs are not permitted to give

them gift cards or electronic gadgets.

Regulatory Updates in India

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• According to reports, the ministry of road transport and roads will use sensors to monitor

the health of various types of bridges in real-time on national highways. This initiative aims

to minimize unfavorable incidents and traffic interruptions caused by bridge breakdowns.

• According to reports, in the satellite production and operation, satellite data products,

and ground and user segments, the government stated that it has reviewed the current

Foreign Direct Investment (FDI) Policy in the space sector and authorized up to 74% FDI

under automatic route. This covers the complete production and supply of the satellite

and payload, as well as the setup of the satellite systems and management of the satellite

and payload operations while in orbit.

Regulatory Updates in India (contd..)

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• According to the Labor Department, U.S. non-farm payroll employment surged by 275,000

jobs in Feb 2024, while economists had expected employment to jump by 200,000 jobs.

However, the report also said job growth in Dec 2023 and Jan 2024 was downwardly

revised to 290,000 and 229,000 jobs, respectively, reflecting a net downward revision of

167,000 jobs.

• According to the Institute for Supply Management, U.S. services PMI fell to 52.6 in Feb

2024 after climbing to 53.4 in Jan 2024.

• The European Central Bank left the key interest rates unchanged and lowered both the

inflation and growth forecast for the euro area for this year. The deposit facility rate was

left unchanged at a record high 4.00% and the lending rate was retained at 4.75%.

• According to a survey, Germany’s construction Purchasing Manages' Index hit a five-month

high of 39.1 in Feb 2024, up from 36.3 in Jan 2024.

• According to Destatis, Germany’s new orders in manufacturing posted a monthly decline of

11.3% in Jan 2024, in contrast to the 12.0% increase in Dec 2023. Economists had forecast

a 6.0% fall.

• According to the Ministry of Economy, Trade and Industry, Japan’s household spending

was down 6.3% on year in Jan 2024. That missed expectations for a decline of 4.1%

following the 2.5% drop in Dec 2023.

Global News/Economy

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Global Indices

Indices

08-Mar-24

1-Week

Return

YTD

Return

Russell 3000 2,617.27 -1.21% 8.93%

Nasdaq 100 18,018.45 -1.55% 7.09%

FTSE 100 7,659.74 -0.30% -0.95%

DAX Index 17,814.51 0.45% 6.34%

Nikkei Average 39,688.94 -0.56% 18.60%

Straits Times 3,147.09 0.36% -2.88%

Source: Refinitiv Value as on Mar 08, 2024

U.S.

• U.S. equity markets mostly fell as the

Nasdaq led the way down. Further,

investors opted for profit booking,

which also contributed to the downside.

However, losses were restricted after

U.S. Federal Reserve Chairperson hinted

indications for a rate cut in the near

future.

Europe

• European equity markets mostly rose followed by the announcement of permanent tax

cuts due to slowing inflation and upgraded the nation's growth forecast. Further, there is

increased hope that the U.S. Federal Reserve will start cutting interest rates in Jun 2024

after job growth estimates for Dec 2023 and Jan 2024 were revised downward, which also

added to the gain.

Asia

• Asian equity markets mostly rose on optimism about interest rate cuts by the U.S. Federal

Reserve this year. The Chinese market rose after the Customs Office revealed that China’s

export growth accelerated faster than anticipated in the first two months of 2024.

Global Equity Markets

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4.00

4.05

4.10

4.15

4.20

4.25

4-Mar 5-Mar 6-Mar 7-Mar 8-Mar

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

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

by 9 bps to close at 4.09% from the

previous week’s close of 4.18%.

• U.S. Treasury prices rose as the U.S.

Federal Reserve Chair signaled that

interest rates are likely to be decreased

this year after further analysis.

• Further, prices rose after a downward

revision in job growth for Dec 2023 and

Jan 2024, which raised expectations

that the U.S. Federal Reserve may cut

interest rates in Jun 2024.

Global Debt (U.S.)

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9.00

9.50

10.00

10.50

11.00

8-Feb-24 23-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)

85.86 86.47

Gold ($/Oz)

2,177.51 2,083.39

Gold (Rs/10 gm)

[1]

65,007 62,442

Silver ($/Oz)

24.31 23.15

Silver (Rs/Kg)

[1]

72,170 69,826

Source: Refinitiv *Value as on Mar 08, 2024

;

[1]

Value as on Mar 07, 2024

Gold

• Gold prices rose after recent data showed

a downward revision in job growth for Dec

2023 and Jan 2024, which increased

anticipation that the U.S. Federal Reserve

may lower interest rates in Jun 2024.

Brent Crude

• Brent crude oil prices fell due to data

indicating a decline in China's oil imports in

the first two months of 2024, raising

doubts about the country's demand

prospects. However, losses were limited as

the U.S. Federal Reserve signaled that

interest rates are likely to be decreased

this year after further analysis.

Baltic Dry Index

• The index rose over the week due to

improved capesize and panamax activities.

Commodities Market

08-Mar-24

-0.71%

4.52%

5.01%

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9.70

9.80

9.90

10.00

10.10

10.20

8-Feb-24 23-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

82.78 82.87

Pound Sterling

105.41 104.65

EURO

90.23 89.58

100 Yen

55.70 55.11

Source: Refinitiv Figures in INR , *

Value as on Mar 07, 2024

Rupee

• The Indian rupee in the spot trade rose against

the U.S. dollar following weaker greenback

demand and inflow of foreign funds into the

domestic markets.

Euro

• Euro rose against the greenback after data

showing an anticipated Jun 2024 interest rate

cut from the U.S. Fed following a downward

revision in job growth for the months of Dec

2023 and Jan 2024.

Pound

• Pound surged against the U.S. dollar as the U.S.

Fed signaled that interest rates are likely to be

decreased this year after further analysis.

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

additional analysis, the U.S. Federal Reserve

hinted that interest rates would probably be

cut this year.

Currencies Markets

07-Mar-24

-0.11%

1.07%

0.73%

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The Week that was…

Mar to 08

Mar

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The Week that was (Mar 04 – Mar 08)

Date Events

Present

Value

Monday,

March 04, 2024

• Eurozone Sentix Investor Confidence (Mar) -10.5 -12.9

• U.S. 6-Month Bill Auction 5.105% 5.13%

Tuesday,

March 05, 2024

• India HSBC Composite PMI Final (Feb) 60.6 61.2

• U.S. BRC Like-For-Like Retail Sales (YoY)(Feb) 1% 1.40%

• U.S. ISM Services PMI(Feb) 52.6 53.4

Wednesday,

March 06, 2024

• Germany Trade Balance (Jan) €27.5B €23.3B

• Eurozone Retail Sales (YoY)(Jan) -1% -0.50%

• U.S. JOLTS Job Openings(Jan) 8.863M 9.026M

• Japan Foreign Bond Investment (Mar 1) ¥484.6B ¥-250.1B

Thursday,

March 07, 2024

• China Trade Balance USD(Feb) $125.16B $75.34B

• Germany Factory Orders (YoY)(Jan) -6% 6.6%

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

• U.S. Initial Jobless Claims(Mar 1) 217K 217K

• Japan Current Account (Jan) ¥438.2B ¥744.3B

Friday,

March 08, 2024

• Germany Producer Price Index (MoM)(Jan) 0.20% -0.80%

• Eurozone Gross Domestic Product (YoY)(Q4) 0.10% 0.10%

• U.S. Nonfarm Payrolls(Feb) 275K 229K

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The Week Ahead

Mar to 15

Mar

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The Week Ahead

Day Event

Monday,

Mar 11, 2024

• China New Loans (Feb)

• Japan Producer Price Index (MoM)(Feb)

Tuesday,

Mar 12, 2024

• India Industrial Production (YoY) (Jan)

• India Inflation Rate (YoY) (Feb)

• India Manufacturing Production (YoY) (Jan)

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

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

Wednesday,

Mar 13, 2024

• U.K. Industrial Production (MoM)(Jan)

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

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

Thursday,

Mar 14, 2024

• India WPI Inflation (YoY) (Feb)

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

• U.S. Retail Sales (MoM)(Feb)

Friday,

Mar 15, 2024

• India Balance of Trade (Feb)

• Germany Wholesale Price Index (YoY)(Feb)

• U.K. Consumer Inflation Expectations

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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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