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NEWS U CAN USE
March 22, 2024
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The Week that was…
18
th
Mar to 22
nd
Mar
2
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Indian Economy
• According to data from the Income Tax Department, India's net direct tax collection
increased by 19.88% to exceed Rs. 18.90 lakh crore as of Mar 17, 2024. According to the
data, the net direct tax collection of Rs. 18,90,259 crore comprised of Corporation Tax at
Rs. 9,14,469 crore (net of refund) and Personal Income Tax at Rs. 9,72,224 crore (net of
refund).
• The Reserve Bank of India's Liberalized Remittance Scheme saw a 24% YoY increase in
outward remittances to $27.42 billion during the Apr to Jan for FY24. Remittances from
overseas reached $2.62 billion in Jan 2024, almost 9% more than in Dec 2023 of $2.40
billion.
• According to data released by the Petroleum Planning and Analysis Cell, the amount of
crude oil processed by Indian refiners remained almost steady in Feb 2024 at 20.9 million
metric tonnes (MMT) compared to 20.8 MMT processed in Feb 2023. However, volumes
decreased by 7.48% MoM in Feb 2024 compared to 22.5 MMT in Jan 2024.
• Preliminary data showed that manufacturing Purchasing Managers' Index rose to 59.2 in
Mar 2024 compared to final Feb 2024 value of 56.9, bolstered by strong manufacturing
output with the fastest expansions in factory orders and production in nearly three-and-a-
half years.
• According to media report, investments in private equity and venture capital fell to USD
2.2 billion in Feb 2024, a 39% decrease from USD 3.7 billion in the same period last year.
3
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4
Domestic Equity Market Indices
Indices
22-Mar-24 1 Week Return YTD Return
S&P BSE Sensex
72,831.94 0.26% 0.82%
Nifty 50
22,096.75 0.33% 1.68%
S&P BSE Mid
-Cap 38,801.23 1.44% 5.33%
S&P BSE Small
-Cap 42,771.27 1.81% 0.23%
Source: Refinitiv
Values as on Mar 22, 2024
• Domestic equity markets rose after
witnessing fall in the previous week as
key benchmark indices S&P BSE Sensex
and Nifty 50 rose 0.26% and 0.33%
respectively. The mid-cap and small-cap
segment also closed the week in green.
• Domestic equity markets rose during
the week after the U.S. Federal Reserve
left interest rates unchanged for a fifth
consecutive meeting in Mar 2024 and
maintained its forecast for three rate
cuts in 2024. Sentiments were boosted
following the robust preliminary
domestic business activity data of Mar
2024 that expanded at the fastest rate
in eight months. Robust direct tax
collection number of domestic
economy aided to boost the sentiment.
Gains were extended following the
dovish comments from the Bank of
England.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
24.83 22.81 27.08 30.58
P/B
3.68 3.87 3.54 3.32
Dividend Yield
1.12 1.21 0.94 0.68
Source: NSE, BSE
Values as on Mar 22, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
18-Mar-24 1,278 1,280 1.00
19-Mar-24 713 1,857 0.38
20-Mar-24 1,104 1,461 0.76
21-Mar-24 2,048 533 3.84
22-Mar-24 1,667 885 1.88
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
S&P BSE Auto
48,249.98 4.17% 1.74%
S&P BSE Bankex
53,105.76 0.52% -0.46%
S&P BSE CD
51,003.89 0.88% -0.09%
S&P BSE CG
58,726.35 3.35% 4.74%
S&P BSE FMCG
19,292.61 -0.47% -1.68%
S&P BSE HC
34,489.20 1.71% -3.43%
S&P BSE IT
35,824.73 -5.54% -7.40%
S&P BSE Metal
27,839.38 4.91% 1.28%
S&P BSE Oil & Gas
27,164.81 1.04% -5.00%
Source:BSE
Values as on Mar 22, 2024
• On the BSE Sectoral front, S&P BSE Realty
increased 5.27% as the U.S. Federal Reserve’s
dovish commentary aided the rate-sensitive
realty sector to rise on hopes that India’s central
bank could begin cutting rates in the second
half of 2024.
• S&P BSE IT fell 5.54% due to sell-off in
information technology stocks after a major
global IT company slashed its full-year revenue
guidance on concerns over global uncertainty.
Indian Derivatives Market Review
• Nifty Mar 2024 Futures stood at 22,165.45, a premium of 68.70 points above the spot
closing of 22,096.75.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
2025.44 lakh crore as against Rs. 2018.82 lakh crore for the week to Mar 15.
• The Put-Call ratio stood at 0.91 compared with the previous week’s close of 0.96.
• The Nifty Put-Call ratio stood at 1.23 compared with the previous week’s close of 0.99.
Indian Equity Market (contd.)
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7.02
7.04
7.06
7.08
7.10
7.12
18-Mar 19-Mar 20-Mar 21-Mar 22-Mar
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 6.63 6.55 6.77
91 Day T-Bill
6.87 6.88 7.05 6.82
05.74% 2026, (5 Yr GOI)
7.07 7.03 7.04 7.20
07.18% 2033, (10 Yr GOI)
7.09 7.06 7.07 7.16
Source: Refinitiv Values as on Mar 22, 2024
• Bond yields rose following the rise in U.S.
Treasury yields. Losses were extended as
the week's record state debt supply
negatively impacted market participants'
sentiment. However, losses were
restricted following the U.S. Federal
Reserve’s decision to keep the interest
rate unchanged with an outlook for three
rate cuts this year.
• Yield on the 10-year benchmark paper
(7.18% GS 2033) rose by 3 bps to close at
7.09% from the previous week’s close of
7.06%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
increased to $642.49 billion for the week
ended Mar 15, 2024 compared with
$636.10 billion a week earlier.
Domestic Debt Market
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-4
-2
0
2
4
6
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 22-Mar-24 15-Mar-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 7.22 7.99 77
3 Year 7.22 7.74 52
5 Year 7.23 7.66 43
10 Year 7.21 7.62 41
Source: Refinitiv
Values as on Mar 22, 2024
• Yields on gilt rose between 2 to 7 bps across the
maturities, barring 1 year paper that fell by 1 bps.
• Corporate bond yields increased up to 5 bps across
the curve.
• Difference in spread between AAA corporate bond
and gilt contracted up to 4 bps across the segments,
barring 1 & 15 year papers that expanded by 2 & 3
bps respectively, while 10 year paper remained
steady.
Domestic Debt Market (Spread Analysis)
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8
• According to media reports, the Finance Ministry has formed a panel to recommend
changes to the SARFAESI and Debt Recovery Tribunal Acts, with the goal of expediting the
debt recovery process. One of the proposals is to give debtors' e-notices legal sanctity.
• The National Highways Authority of India (NHAI) announced that it has successfully
completed the third round of road monetisation through the National Highways Infra Trust,
monetizing 889 km of national highway worth Rs. 16,000 crore. This is the largest
monetization undertaken by the NHAI.
• The RBI has developed the final omnibus framework for self-regulatory organisations (SRO)
which requires SROs to establish non-discriminatory fee structures and grievance redressal
mechanisms for their members. The general goals, duties, qualifications, and governance
guidelines that apply to all SROs, regardless of industry, are outlined in the RBI omnibus
framework.
• According to Association of Mutual Funds of India, asset management companies have been
instructed by markets regulator SEBI to cease accepting new subscriptions in overseas
exchange traded funds as of Apr 1, 2024, given that the $1 billion investment cap is about to
be exceeded.
Regulatory Updates in India
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9
• The central board of the RBI examined the state and prospects of the domestic economy,
considering the difficulties brought on by the volatility of the global financial markets. The
central bank released a statement stating that the board had also approved the bank's
budget for the 2024–25 fiscal year.
Regulatory Updates in India (contd..)
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• According to the Labor Department, U.S. initial jobless claims edged down to 210,000 in
the week ended Mar 16th 2024, a decrease of 2,000 from the previous week's revised level
of 212,000.
• The Federal Reserve announced its widely expected decision to leave interest rates
unchanged, although the central bank's forecasts suggest rate cuts are still likely later this
year. In support of its dual goals of maximum employment and inflation at a rate of 2%
over the longer run, the Fed said it once again decided to maintain the target range for the
federal funds rate at 5.25 to 5.50%.
• The Bank of England maintained its key policy rate for the fifth straight session, with no
members seeking a hike as inflation is expected to ease faster than expected. The
Monetary Policy Committee voted to keep the bank rate unchanged at 5.25%.
• According to the Office for National Statistics, U.K. consumer price index registered an
annual growth of 3.4% in Feb 2024, slower than the 4.0% rise in Jan 2024. The rate was the
lowest since September 2021.
• According to Destatis, Germany’s producer prices registered an annual decrease of 4.1% in
Feb 2024 after declining 4.4% in Jan 2024. Prices have been falling since Jul 2023.
• According to the Ministry of Internal Affairs and Communications, Japan’s consumer prices
were up 2.8% on a year in Feb 2024. That was in line with expectations and up from 2.2% in
Jan 2024.
10
Global News/Economy
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11
Global Indices
Indices
22-Mar-24
1-Week
Return
YTD
Return
Russell 3000 2,680.18 2.75% 11.54%
Nasdaq 100 18,339.44 2.98% 9.00%
FTSE 100 7,930.92 2.63% 2.56%
DAX Index 18,205.94 1.50% 8.68%
Nikkei Average 40,888.43 5.63% 22.19%
Straits Times 3,217.97 1.42% -0.69%
Source: Refinitiv Value as on Mar 22, 2024
U.S.
• U.S. equity market rose after a positive
reaction to the latest monetary policy
announcement by the U.S. Federal
Reserve. As anticipated, the U.S. Federal
Reserve kept interest rates constant,
but the central bank also maintained its
forecast for three interest rate cuts this
year.
Europe
• European equity markets closed on a mixed note. The market rose as investors cheered
the U.S. Federal Reserve's dovish remarks, which implied that the U.S. central bank will
continue on its current course to lower interest rates three times in 2024. Further, the
market rose as the Bank of England projected that inflation is expected to ease faster
than expected.
Asia
• Asian equity markets mostly rose as investors praised the U.S. Federal Reserve's dovish
posture and hinted about prospective rate reductions in 2024.
Global Equity Markets
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4.15
4.20
4.25
4.30
4.35
18-Mar 19-Mar 20-Mar 21-Mar 22-Mar
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury fell
by 8 bps to close at 4.22% from the
previous week’s close of 4.30%.
• U.S. Treasury prices rose after the U.S.
Federal Reserve's revised economic
predictions, and the bank still plans to
lower interest rates three times this
year.
• Prices rose further as investors
continued to bet that, in spite of recent
stronger-than-expected inflation data in
the U.S., the Federal Reserve will start
lowering interest rates in Jun 2024.
Global Debt (U.S.)
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8.50
9.00
9.50
10.00
10.50
11.00
11.50
22-Feb-24 8-Mar-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($/Barrel)
85.21 86.34
Gold ($/Oz)
2,164.15 2,155.54
Gold (Rs/10 gm)
65,975 65,365
Silver ($/Oz)
24.66 25.16
Silver (Rs/Kg)
73,890 73,820
Source: Refinitiv *Value as on Mar 22, 2024
Gold
• Gold prices rose after the U.S. Federal
Reserve indicated rate cuts by the end of
the year. However, gains were restricted as
surges in the U.S. dollar dampened
sentiment for the yellow metal.
Brent Crude
• Brent crude oil prices fell as the U.S.
Federal Reserve set to hold interest rates
higher for now. However, losses were
limited amid signs of a tight supply outlook
following drone strikes by Ukraine on
Russian oil refineries. Further, prices rose
following data revealing a surprise drop in
U.S. crude and gasoline stocks.
Baltic Dry Index
• The index fell over the week due to
sluggish capesize and panamax activities.
Commodities Market
22-Mar-24
-1.31%
0.40%
-1.98%
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9.80
9.85
9.90
9.95
10.00
10.05
10.10
10.15
10.20
10.25
22-Feb-24 8-Mar-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
83.35 82.89
Pound Sterling
105.25 105.59
EURO
90.26 90.17
100 Yen
55.05 55.90
Source: Refinitiv Figures in INR , *
Value as on Mar 22, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar due to greenback demand and
weakness in other Asian peers.
Euro
• Euro fell against the greenback following the
unexpected interest rate decrease by the Swiss
National Bank, which bolstered global risk
sentiment and underscored the appeal of the
greenback amid strong U.S. economic growth.
Pound
• Pound fell against the U.S. dollar after the
recent monetary policy announcement where
the U.S. Federal Reserve kept interest rates
unchanged.
Y
en
• Yen fell against the U.S. dollar following the
announcement of the U.S. Federal Reserve's
recent monetary policy, which maintained
interest rates steady.
Currencies Markets
22-Mar-24
0.56%
-1.52%
0.11%
-0.32%
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15
The Week that was…
18
th
Mar to 22
nd
Mar
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16
The Week that was (Mar 18 – Mar 22)
Date Events
Present
Value
Previous
Value
Monday,
March 18, 2024
• China Retail Sales (YoY)(Feb) 5.50% 7.40%
• Eurozone Core Harmonized Index of Consumer Prices (MoM)(Feb) 0.70% 0.70%
Tuesday,
March 19, 2024
• Bank of Japan Interest Rate Decision 0% -0.10%
• Japan Industrial Production (MoM)(Jan) -6.70% -7.50%
• U.S. Housing Starts (MoM)(Feb) 1.521M 1.374M
• U.S. API Weekly Crude Oil Stock(Mar 15) -1.519M -5.521M
Wednesday,
March 20, 2024
• People's Bank of China Interest Rate Decision 3.45% 3.45%
• Germany Producer Price Index (MoM)(Feb) -0.40% 0.20%
• U.K. Consumer Price Index (YoY)(Feb) 3.40% 4%
• U.S. Fed Interest Rate Decision 5.50% 5.50%
Thursday,
March 21, 2024
• Germany HCOB Composite PMI(Mar) PREL 47.4 46.3
• Eurozone HCOB Composite PMI(Mar) PREL 49.9 49.2
• U.S. S&P Global/CIPS Composite PMI(Mar) PREL 52.9 53
• Bank of England Interest Rate Decision 5.25% 5.25%
Friday,
March 22, 2024
• U.K. GfK Consumer Confidence(Mar) -21 -21
• U.K. Retail Sales (MoM)(Feb) 0% 3.60%
• Germany IFO – Current Assessment(Mar) 88.1 86.9
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17
The Week Ahead
25
th
Mar to 29
th
Mar
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18
The Week Ahead
Day Event
Monday,
Mar 25, 2024
• U.S. New Home Sales Change (MoM)(Feb)
• Japan Corporate Service Price Index (YoY)(Feb)
Tuesday,
Mar 26, 2024
• U.S. Durable Goods Orders ex Transportation (Feb)
• U.S. Housing Price Index (MoM)(Jan)
• U.S. Consumer Confidence (Mar)
Wednesday,
Mar 27, 2024
• Eurozone Consumer Confidence (Mar)
• Eurozone Industrial Confidence (Mar)
Thursday,
Mar 28, 2024
• India Current Account Q3
• U.K. Gross Domestic Product (YoY)(Q4)
• Germany Unemployment Change (Mar)
• U.S. Initial Jobless Claims (Mar 22)
• U.S. Gross Domestic Product Annualized(Q4)
Friday,
Mar 29, 2024
• India Government Budget Value (Feb)
• India Infrastructure Output (YoY) (Feb)
• U.S. Core Personal Consumption Expenditures - Price Index (MoM)(Feb)
• U.S. Personal Income (MoM)(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
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
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19
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