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NEWS U CAN USE
March 24, 2023
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
20
th
March to 24
th
March
2
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Indian Economy
• The Lok Sabha approved the Finance Bill 2023 after 64 formal changes, including one to
remove the debt mutual fund industry's long-term tax benefits and another to establish
the GST Appellate Tribunal. In addition, a committee headed by the finance secretary has
been established to investigate the pension concerns of public workers.
• According to Minister of State for Finance, the gross NPA ratio of public sector banks has
considerably improved, falling from a peak of 14.6% in Mar 2018 to 5.53% in Dec 2022. All
PSBs are in profit, with an overall profit of Rs 66,543 crore in 2021–22 and Rs 70,167 crore
in the first nine months of the current fiscal year.
• According to Finance Ministry, the Indian economy is predicted to expand at 7% in FY23
despite global headwinds while retail inflation would moderate in line with wholesale
inflation, which fell to a 25-month low in Jan 2022.
• According to official statements, the finance ministry will ask international rating agencies
to raise India's sovereign rating in the coming days, pointing to a significant post-pandemic
improvement in the nation's macroeconomic fundamentals in defiance of the turmoil
occurring around the world.
• According to a report by FIS, Indian e-commerce was valued at $83 billion in 2022. It is
anticipated to reach $185 billion in 2026 thanks to universal payments interface (UPI)
transactions. In January 2023, UPI's transaction volume saw its largest YoY increase, at
74.1%.
3
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4
Domestic Equity Market Indices
Indices 24-Mar-23 1 Week Return YTD Return
S&P BSE Sensex
57,527.10 -0.80% -5.45%
Nifty 50
16,945.05 -0.91% -6.41%
S&P BSE Mid-Cap
23,633.56 -1.98% -6.64%
S&P BSE Small-Cap
26,767.00 -1.48% -7.47%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
20-Mar-23 611 1,692 0.36
21-Mar-23 1,311 928 1.41
22-Mar-23 1,332 885 1.51
23-Mar-23 800 1,431 0.56
24-Mar-23 553 1,761 0.31
Source: NSE
• Domestic equity markets continued to
remain under pressure as lingering
concerns of contagion in the global
banking sector weighed on the market
sentiment.
• Sentiments were further hit on the
penultimate day of the week after the
government hiked securities
transaction tax on futures and options
contracts, along with other
amendments in Finance Bill 2023.
According to the amendments made in
the Finance Bill, no benefit of
indexation will be applicable for debt
mutual funds for calculation of long-
term capital gains tax. The same will be
applicable for investments made on or
after Apr 1, 2023. Also, such debt
mutual funds who invest less than 35%
of their assets in equities will be subject
to short-term capital gains tax.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
21.88 19.97 21.54 22.00
P/B
3.18 3.97 2.65 2.34
Dividend Yield
1.26 1.47 1.38 0.95
Source: BSE, NSE Va
lue as on Mar 24, 2023
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
27,905.6 -1.08% -5.46%
S&P BSE Bankex
44,692.2 -0.46% -1.17%
S&P BSE CD
37,591.6 -0.10% -0.07%
S&P BSE CG
33,932.1 -1.84% -0.58%
S&P BSE FMCG
16,192.8 0.29% -0.79%
S&P BSE HC
21,560. 0.11% -1.98%
S&P BSE IT
27,791.4 -2.81% -8.10%
S&P BSE Metal
18,702. -4.14% -5.17%
S&P BSE Oil & Gas
17,408.9 -0.97% 1.11%
Source: Refinitiv *Value as on Mar 24, 2023
• On the BSE sectoral front, all the sectoral
indices fell barring S&P BSE Power, S&P BSE
FMCG and S&P BSE Healthcare which rose
0.63%, 0.29% and 0.11% respectively. Power
stocks rose on hopes that power demand will
go up in the summer season. FMCG stocks
gained on anticipation that gradual decline in
inflation and recovery in demand may result in
improved profitability. However, turmoil in the
global banking sector and recessionary worries
kept the overall market sentiment subdued.
Indian Derivatives Market Review
• Nifty Mar 2023 Futures stood at 16,955.05, a premium of 10.00 points above the spot
closing of 16,945.05.
• The Put-Call ratio stood at 1.02 compared with the previous week’s close of 0.94.
• The Nifty Put-Call ratio stood at 0.78 compared with the previous week’s dclose of 0.75.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
6.54 6.65 6.72 5.40
91 Day T-Bill
6.76 6.81 6.91 5.90
05.74% 2026, (5 Yr GOI)
7.16 7.22 7.38 7.34
07.26% 2032, (10 Yr GOI)
7.31 7.35 7.42 7.39
Source: Refinitiv Value as on Mar 24, 2023
• Bond yields fell following decline in yields
on U.S. Treasuries after the U.S. Federal
Reserve hinted at ending the rate hike
cycle soon. However, gains were capped
as markets awaited the outcome of the
Reserve Bank of India's monetary policy
decision on Apr 6 and the government's
borrowing calendar for Apr to Sep of
2023.
• Yield on the 10-year benchmark paper
(7.26% GS 2032) fell 4 bps over the week
to close at 7.31% as compared to the
previous week’s close of 7.35%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
rose to $572.80 billion for the week
ended Mar 17, 2023, from $560 billion a
week earlier.
Domestic Debt Market
7.30
7.32
7.34
7.36
20-Mar 21-Mar 23-Mar 24-Mar
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 7.31 7.77 46
3 Year 7.27 7.96 69
5 Year 7.30 7.87 57
10 Year 7.45 7.83 38
Source: Refinitiv
Value as on Mar 24, 2023
• Yields on gilt securities fell across the maturities by
up 14 bps. The maximum fall was witnessed on 7-
year paper and the minimum fall on 15 and 19-year
paper.
• Corporate bond yields fell across 2 to 7-year
maturities in the range of 4 bps to 24 bps and
increased across the remaining maturities in the
range of 3 bps to 23 bps.
• Difference in spread between AAA corporate bond
and gilt contracted across 2 to 6-year maturities in
the range of 4 bps to 16 bps barring 1, 10 and 15-
year maturities and expanded across the remaining
maturities in the range of 8 bps to 24 bps.
Domestic Debt Market (Spread Analysis)
-8
-6
-4
-2
0
6.00
6.50
7.00
7.50
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 24-Mar-23 17-Mar-23
Yield in %
Change in bps
Source: Refinitiv
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• The Finance Bill, 2023, has been amended by the Lok Sabha, and the Finance Minister has
eliminated the long-term capital gain tax benefit that debt mutual fund investors previously
had. The modifications provide that debt funds that invest less than 35% in equity shares
will be taxed at the income tax bracket level and will be considered short-term capital gains.
Similarly, bank fixed deposits are taxed.
• The Centre has hiked the securities transaction tax (STT) on the sale of future and option
contracts by up to 25%. The STT has increased by 25% on the selling of futures contracts
and by 24% on the sale of options under the revisions to the Finance Law, 2023.
• Prime Minister revealed the official 6G testbed project and India's 6G mission, which aims to
create a focused plan for the country's next-generation technology. With 1.2 billion digital
users, India is the second-largest telecom market in the world.
• According to RBI, the Indian economy recovered from the pandemic stronger than
anticipated and has gained momentum since the Q2 of the current fiscal. Although YoY
growth rates do not show this acceleration because of the impact of statistical base effects.
• According to the Ministry of Agriculture and Farmers Welfare, an MoU was inked between
the agriculture and farmers welfare ministry and the World Food Programme (WFP) during
the global millets conference. The aim of the MoU is fostering food self-sufficiency and
supporting international and national efforts that ensure lasting solutions to the issue of
hunger.
Regulatory Updates in India
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9
• According to U.S. Department of Energy's Lawrence Berkeley National Laboratory, India
can achieve energy independence by 2047, when it commemorates 100 years of
independence. It also stated that in the ensuing decades, India's energy infrastructure will
require an expenditure of USD 3 trillion.
• According to the Commerce and Industry Ministry, a task force will be established to
create a framework for calculating logistics expenses in the nation. According to some
estimates, the expense of logistics in India accounts for between 13-14% of the nation's
GDP.
• According to Minister of Road Transport and Highways of India, the government intends
to replace the current highway toll plazas within the next six months with new
technologies, such as GPS-based toll gathering systems. Also, NHAI's toll revenue, which is
presently worth Rs 40,000 crore, will double within two to three years to reach Rs 1.40
lakh crore.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• The U.S. Federal Reserve in its monetary policy review raised the target range for the
federal funds rate by another 25 bps to 4.75% to 5.0% and indicated that interest rate
hikes may be nearing an end. The Federal Open Market Committee noted that, future rate
hikes are not assured and will depend largely on incoming data. According to the U.S.
Federal Reserve, “additional policy firming” may be appropriate which is a shift from
previous statements saying “ongoing increases” in rates will be appropriate. The U.S.
central bank described the U.S. banking system as "sound and resilient" but added that the
recent events in the banking system may result in tighter credit conditions for households
and businesses. The U.S. Federal Reserve projected just one more rate hike this year.
• The Bank of England increased its benchmark interest rate by 25 basis points to 4.25% for
the eleventh session running. The percentage was at its highest point since 2008. In the
current tightening cycle, which started in Dec 2021, the rate was increased by 415 basis
points.
• The People's Bank of China kept its base lending rate at 3.65% for the seventh consecutive
month. In a similar vein, the standard five-year LPR for mortgage rates remained at 4.30%.
• The Office for National Statistics stated that U.K. consumer price inflation increased by
10.4% annually in Feb 2023 after rising by 10.1% in Jan 2023. In Oct 2022, headline
inflation reached its greatest point since 1981, peaking at 11.1%.
10
Global News/Economy
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11
Global Indices
Indices
24-Mar-23
1-Week
Return
YTD
Return
Russell 3000
1,886.70 1.58% 9.90%
Nasdaq 100
12,767.05 1.97% 16.70%
FTSE 100
7,405.45 0.95% -0.62%
DAX Index
14,957.23 1.28% 7.42%
Nikkei Average
27,385.25 0.19% 4.95%
Straits Times
3,212.64 0.92% -1.19%
Source: Refinitiv *Value as on Mar 24, 2023
U.S.
• U.S. equity markets rose after steps
were taken to rescue distressed banks
in the U.S. and Europe. Gains were
extended after the U.S. Treasury
Secretary said that the government will
provide protection to bank depositors if
smaller lenders are threatened. Hopes
that the U.S. Federal Reserve is nearing
the end of its monetary policy
tightening cycle also contributed to the
upside.
Europe
• European equity markets rose as worries over the ongoing crisis in the global banking
sector eased to some extent after steps were taken by governments and central banks to
provide support to distressed banks in the U.S. and Europe.
Asia
• Asian markets rose as concerns over the ongoing turmoil in the global banking sector
eased to some extent following coordinated actions by governments and the central
banks to rescue troubled banks in the U.S. and Europe. Anticipation that the U.S. Federal
Reserve is nearing the end of its monetary policy tightening cycle added to the gains.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury fell 2
bps to close at 3.38% as compared to the
previous week’s close of 3.40%.
• U.S. Treasury prices rose over the week on
anticipation that the U.S. Federal Reserve
is near the end of its rate hiking cycle. The
U.S. Federal Reserve raised interest rates
by 25 basis points, as was widely
expected, and projected only one more
rate hike this year.
• Concerns over the ongoing turmoil in the
global banking sector also boosted the
safe haven appeal of U.S. Treasuries.
• However, gains were capped as
coordinated efforts by governments and
central banks helped allay concerns over
the global banking sector to some extent.
Global Debt (U.S.)
3.35
3.45
3.55
3.65
20-Mar 21-Mar 22-Mar 23-Mar 24-Mar
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
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13
Performance of various commodities
Commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel)
73.02 72.16
Gold ($/Oz)
1,977.22 1,987.93
Gold (Rs/10 gm)
59,545 58,034
Silver ($/Oz)
23.22 22.59
Silver (Rs/
Kg) 69,907 66,545
Source: Refinitiv *Value as on Mar 24, 2023
Gold
• Gold prices dipped in a volatile week as
rescue measures for struggling banks
eased concerns over the ongoing turmoil in
the global financial sector to some extent.
• However, anticipation of a pause in interest
rate hikes by the U.S. Federal Reserve
restricted further losses.
Brent Crude
• Brent crude oil prices rose on expectations
of strong demand from China.
• However, concerns over the ongoing
turmoil in the global banking sector and
worries about a possible recession capped
the gains.
Baltic Dry Index
• The index fell over the week due to
sluggish capesize and panamax activities.
Commodities Market
8.00
9.00
10.00
11.00
12.00
24-Feb-23 10-Mar-23 24-Mar-23
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global
Commodity Prices
Rebased to 10
Source: Refinitiv
1.19%
-0.54%
2.80%
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
82.24 82.47
Pound Sterling
100.98 100.25
EURO
89.06 87.81
100 Yen
63.13 62.03
Source: Refinitiv Figures in INR , *
Value as on Mar 24, 2023
Rupee
• The Indian Rupee in the spot trade rose against
the greenback on anticipation that the U.S.
Federal Reserve is near the end of its rate hiking
cycle.
Euro
• Euro rose against the U.S. dollar on hopes that
the U.S. Federal Reserve is near the end of its
rate hiking cycle.
Pound
• Pound rose against the U.S. dollar after inflation
in U.K. grew more than expected in Feb 2023
and Bank of England raised interest rates in its
monetary policy review.
Yen
• Yen rose against the U.S. dollar as market
participants assessed the possibility of a pause
in interest rate hikes by the U.S. Federal
Reserve amid concerns over the ongoing
turmoil in the global banking sector.
Currencies Markets
9.60
9.70
9.80
9.90
10.00
10.10
10.20
10.30
24-Feb-23 10-Mar-23 24-Mar-23
USD GBP Euro JPY
Source: Refinitiv
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
-0.28%
1.77%
1.43%
0.73%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
20
th
March to 24
th
March
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16
The Week that was (Mar 20 – Mar 24)
Date Events Present Value Previous Value
Monday,
March 20, 2023
• U.K. Rightmove House Price Index (YoY)(Mar) 3% 3.90%
• Germany Producer Price Index (MoM)(Feb) -0.30% -1.20%
• China PBoC Interest Rate Decision 3.65% 3.65%
Tuesday,
March 21, 2023
• U.K. Public Sector Net Borrowing (Feb) £15.859B £-9.104B
• Eurozone Construction Output (YoY)(Jan) 0.90% -0.60%
• U.S. Existing Home Sales (MoM)(Feb) 4.58M 4M
• Germany ZEW Survey – Current Situation (Mar) -46.5 -45.1
Wednesday,
March 22, 2023
• U.K. Consumer Price Index (YoY)(Feb) 10.40% 10.10%
• U.K. Retail Price Index (MoM)(Feb) 1.20% 0%
• U.S. Fed Interest Rate Decision 5% 4.75%
Thursday,
March 23, 2023
• U.K. BoE Interest Rate Decision 4.25% 4%
• U.S. Initial Jobless Claims (Mar 17) 191K 192K
• U.S. New Home Sales (MoM)(Feb) 0.64M 0.633M
• Japan National Consumer Price Index (YoY)(Feb) 3.30% 4.30%
• Eurozone Consumer Confidence (Mar) PREL -19.2 -19.1
Friday,
March 24, 2023
• U.K. GfK Consumer Confidence (Mar) -36 -38
• U.K. Retail Sales (MoM)(Feb) 1.20% 0.90%
• Germany S&P Global/BME Services PMI (Mar) PREL 53.9 50.9
• U.S. Durable Goods Orders (Feb) -1% -5.00%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
27
th
March to 31
st
March
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18
Day Event
Monday,
March 27, 2023
• Japan Leading Economic Index (Jan)
• U.S. Dallas Fed Manufacturing Business Index (Mar)
• Germany IFO – Business Climate(Mar)
Tuesday,
March 28 2023
• U.K. Nationwide Housing Prices (YoY)(Mar)
• U.S. S&P/Case-Shiller Home Price Indices (YoY)(Jan)
• U.S. Housing Price Index (MoM)(Jan)
• U.S. Consumer Confidence (Mar)
Wednesday,
March 29, 2023
• Germany Gfk Consumer Confidence Survey (Apr)
• U.S. Pending Home Sales (YoY)(Feb)
Thursday,
March 30, 2023
• Germany Harmonized Index of Consumer Prices (YoY)(Mar) PREL
• U.S. Gross Domestic Product Annualized(Q4)
• U.S. Initial Jobless Claims 4-week average (Mar 24)
• Eurozone Business Climate (Mar)
Friday,
March 31, 2023
• India Infrastructure Output (YoY)
• China Non-Manufacturing PMI(Mar)
• U.S. Core Personal Consumption Expenditures - Price Index
(YoY)(Feb)
The Week Ahead
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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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