News You Can Use of 29 March 2024

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NEWS U CAN USE

March 29, 2024

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The Week that was…

Mar to 29

Mar

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Indian Economy

• India’s current account deficit narrowed to US$ 10.5 billion (1.2% of GDP) in Q3 FY24 from

US$ 11.4 billion (1.3% of GDP) in Q2 FY24 and it was also lower than US$ 16.8 billion (2.0%

of GDP) compared to the same period of previous year. This improvement was primarily

driven by higher service exports, with a 5.2% YoY growth in services exports, particularly in

software, business, and travel services.

• According to preliminary data released by the ministry of labour and employment, there

were 7.8% more net new members added to EPFO year over year in Jan 2024 as compared

to 1.48 million in Jan 2023.

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

stood at Rs. 15.01 lakh crore or 86.5% of budget estimates of the current fiscal. India’s

fiscal deficit stood at 82.8% of the budget estimate in the corresponding period of the

previous fiscal year. Total expenditure stood at Rs. 37.47 lakh crore or 83.4% of the budget

estimate as compared to 83.4% of the budget estimate in the corresponding period of the

previous fiscal year.

• According to the Ministry of Commerce & Industry, the combined Index of Eight Core

Industries increased by 6.7% in Feb 2024 as compared to 7.4% in Feb 2023. The production

of all Eight Core Industries recorded growth in Feb 2024 over the corresponding month of

last year except fertilizers. Coal witnessed the maximum growth at 11.6% in Feb 2024

followed by natural gas with 11.3% growth.

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Domestic Equity Market Indices

Indices

28-Mar-24 1 Week Return YTD Return

S&P BSE Sensex

73,651.35 1.13% 1.95%

Nifty 50

22,326.90 1.04% 2.74%

S&P BSE Mid

-Cap 39,322.12 1.34% 6.74%

S&P BSE Small

-Cap 43,166.34 0.92% 1.15%

Source: Refinitiv

Values as on Mar 28, 2024

• Domestic equity markets rose for the

second consecutive week as key

benchmark indices S&P BSE Sensex and

Nifty 50 rose 1.13% and 1.04%

respectively. The rally was broad-based

as the mid-cap and small-cap segments

also closed the week in green.

• Domestic equity markets rose during

the week supported by buying across

the sectors. Banking & financial stocks

significantly attributed to the gains

following the RBI’s circular that relaxed

the provisioning norms on investments

in Alternative Investment Funds (AIFs)

for the regulated entities like banks

and non-banking financial companies.

Sentiments were boosted due to fall in

crude oil prices after data showing a

significant surge in crude stockpiles in

the U.S.

Ratios

S&P BSE

Sensex

Nifty 50

S&P BSE

Mid Cap

S&P BSE

Small Cap

P/E

25.15 22.88 27.50 30.91

P/B

3.74 3.92 3.59 3.36

Dividend Yield

1.12 1.20 0.92 0.68

Source: NSE, BSE

Values as on Mar 28, 2024

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

26-Mar-24 859 1,742 0.49

27-Mar-24 1,085 1,493 0.73

28-Mar-24 1,348 1,217 1.11

Source: NSE

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Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

S&P BSE Auto

49,142.11 1.85% 4.96%

S&P BSE Bankex

53,515.19 0.77% 2.02%

S&P BSE CD

52,276.61 2.50% 2.05%

S&P BSE CG

60,943.12 3.77% 6.15%

S&P BSE FMCG

19,318.40 0.13% -0.67%

S&P BSE HC

35,052.84 1.63% -0.08%

S&P BSE IT

35,644.77 -0.50% -7.20%

S&P BSE Metal

28,196.08 1.28% 4.95%

S&P BSE Oil & Gas

27,644.48 1.77% -0.07%

Source:BSE

Values as on Mar 28, 2024

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

Goods surged 3.77% as numerous government

initiatives aimed at increasing capital

expenditure had contributed to the growth of

the sector.

• S&P BSE Realty rose 2.93% as sentiments were

boosted for the sector after data from property

consultancy firm ANAROCK showed India's

housing sales jumped 14% YoY in the Jan-Mar

quarter of 2024.

Indian Derivatives Market Review

• Nifty Mar 2024 Futures settled at spot closing of 22,326.90. Nifty Apr 2024 Futures stood at

22,635.10, a premium of 308.2 points, above the spot closing.

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

1314.32 lakh crore as against Rs. 2025.44 lakh crore for the week to Mar 22.

• The Put-Call ratio stood at 0.95 compared with the previous week’s close of 0.91.

• The Nifty Put-Call ratio stood at 1.07 compared with the previous week’s close of 1.23.

Indian Equity Market (contd.)

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7.02

7.04

7.06

7.08

7.10

26-Mar 27-Mar 28-Mar

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

7.63 6.70 6.43 6.87

91 Day T-Bill

7.02 6.87 6.89 6.87

05.74% 2026, (5 Yr GOI)

6.90 7.07 6.97 7.27

07.18% 2033, (10 Yr GOI)

7.06 7.09 7.08 7.22

Source: Refinitiv Values as on Mar 28, 2024

• Bond yields decreased amid value buying

after a recent decline in bond prices.

Gains were extended following the

government's planned borrowing from

the market for the first half of the year

which was substantially less than

expected.

• Yield on the 10-year benchmark paper

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

7.06% from the previous week’s close of

7.09%.

• Data from Reserve Bank of India showed

that India's foreign exchange reserves

increased to $642.63 billion for the week

ended Mar 22, 2024 compared with

$642.49 billion a week earlier.

Domestic Debt Market

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-20

-10

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 28-Mar-24 22-Mar-24

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 7.10 7.97 87

3 Year 7.18 7.7 52

5 Year 7.18 7.65 47

10 Year 7.18 7.6 42

Source: Refinitiv

Values as on Mar 28, 2024

• Yields on gilt fell up to 6 bps across the maturities,

barring 19 year paper that increased by 2 bps, while

15 year paper was unchanged.

• Corporate bond yields fell up to 5 bps across the

curve, barring 15 year paper that increased by 3 bps,

while 10 year paper was unchanged.

• Difference in spread between AAA corporate bond

and gilt expanded between 2 to 4 bps across the

segments, barring 2 year paper that contracted by 2

bps, while 1 & 3 year papers remained steady.

Domestic Debt Market (Spread Analysis)

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• According to media reports, India intended to replace the minimum wage system with a

living wage by 2025, and it has asked the International Labour Organization for assistance in

creating a framework for calculating and putting this new wage into effect. 90% of the more

than 500 million workers in India are employed in the unorganized sector. While many

people make Rs. 176 or more per day as the minimum wage, the national wage had not

been increased since 2017.

• The chairperson of the Competition Commission of India (CCI) revealed that the regulator is

committed to maintaining a competitive digital market and is conducting ongoing

investigations into fintech companies to assess the impact of their technology on

competition. CCI seeks to correct market distortions, promoting innovation and economic

growth, with a focus on big tech and a number of industries, including film distribution.

• The Reserve Bank of India (RBI) has announced that the ability to exchange or deposit Rs.

2,000 banknotes will not be available on Apr 1, 2024 due to activities related to the annual

closing of accounts. This facility will resume on Apr 2, 2024, at the 19 issue offices of the RBI.

• India's trade minister stated at a press conference that India is willing to join trading blocs

that include China, provided Beijing guarantees that its economy operates in an open,

transparent, and World Trade Organization-compliant manner.

Regulatory Updates in India

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• The Central Government wants to expedite the onboarding of unorganized sector

employees on e-Shram portal, which gives them access to a universal account number and

helps assist with job and skill-development programs.

• The government has issued a new policy for the export of certain telecom and information

security-related items which aims to simplify and liberalize the export process for these

items, with licenses valid for three years. Under this policy, one-time bulk licenses will be

granted for these items under the Special chemicals, organisms, materials, equipment and

technologies (SCOMET) category.

• The RBI relaxed the norms on investments in Alternative Investment Funds (AIFs) for banks

and non-banking financial companies. According to the circular, the RBI said that its

regulated entities will now be required to make provisioning only to the extent of the

amount invested by the AIF scheme in the debtor company and not the entire investment.

Regulatory Updates in India (contd..)

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• According to the Commerce Department, U.S. personal consumption expenditures rose by

0.3% in Feb 2024 after climbing by an upwardly revised 0.4% in Jan 2024. Economists had

expected consumer prices to advance by 0.4% compared to the 0.3% increase originally

reported for the previous month.

• According to the Labor Department, U.S. initial jobless claims dipped to 210,000 in the

week ended Mar 23rd, 2024, a decrease of 2,000 from the previous week's revised level of

212,000.

• According to the Energy Information Administration, U.S. crude oil inventories jumped by

3.2 million barrels in the week ended Mar 22nd, 2024 after slumping by 2.0 million barrels

in the previous week. Economists had expected inventories to decrease by another 1.3

million barrels.

• According to final data from the Office for National Statistics, U.K. gross domestic product

fell by an unrevised 0.3% in the fourth quarter of 2023 after a 0.1% drop in the third

quarter.

• According to data from the central bank of Japan, the core inflation rate in Japan eased to

2.3% from 2.6% in Jan 2024 and Dec 2023. Economists had expected the rate to slow to

2.5%.

• According to data from the National Bureau of Statistics, China’s industrial profits grew

10.2% in Jan to Feb 2024 period from the previous year. This has reversed a 2.3% fall seen

in 2023.

Global News/Economy

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Global Indices

Indices

29-Mar-24

1-Week

Return

YTD

Return

Russell 3000

[1]

2,667.75 -0.46% 11.03%

NASDAQ 100

[1]

18,254.69 -0.46% 8.49%

FTSE 100

[1]

7,952.62 0.27% 2.84%

DAX Index

[1]

18,492.49 1.57% 10.39%

Nikkei Average 40,369.44 -1.27% 20.63%

Straits Times

[1]

3,224.01 0.19% -0.50%

Source: Refinitiv Value as on Mar 28, 2024

U.S.

• U.S. equity market mostly fell on

concerns about the economic impact of

the indefinite suspension of vessel

traffic into and out of the Port of

Baltimore. Vessel traffic was suspended

after a cargo ship crashed into a pillar of

the Francis Scott Key Bridge early

Tuesday morning, leading to the

bridge's collapse.

Europe

• European equity markets rose on hopes that several central banks will likely decrease

interest rates sooner than later as the European Central Bank suggested a probable

interest rate cut in Jun 2024.

Asia

• Asian equity markets mostly fell after data revealed that inflation reports from Singapore

and Malaysia came in higher than expected for Feb 2024. Further, the market fell on

concerns about growth that are driving losses in the Chinese market. The Japanese

market also fell following the threat of currency intervention from authorities which

stalled the yen's decline.

Global Equity Markets

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4.16

4.18

4.20

4.22

4.24

4.26

25-Mar 26-Mar 27-Mar 28-Mar

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

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

by 3 bps to close at 4.19% from the

previous week’s close of 4.22%.

• U.S. Treasury prices rose as investors'

expectations increased that the U.S.

Federal Reserve would soon lower

interest rates.

• Meanwhile, investors were awaiting the

release of Friday's anticipated U.S.

inflation figures. According to the data,

personal consumption expenditures in

the U.S. increased by 0.3% in Feb 2024

following an upwardly revised 0.4%

increase in Jan 2024. In contrast to the

0.3% increase that was initially

announced for the previous month,

economists had predicted that

consumer prices would rise by 0.4%.

Global Debt (U.S.)

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9.00

9.50

10.00

10.50

11.00

11.50

12.00

29-Feb-24 15-Mar-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

) 85.52 85.21

Gold ($/Oz

) 2,232.38 2,164.15

Gold (Rs/10 gm

) 66,987 65,975

Silver ($/Oz

) 24.97 24.66

Silver (Rs/Kg

) 74,028 73,890

Source: Refinitiv *Value as on Mar 28, 2024

Gold

• Gold prices rose amid continued optimism

about an interest rate cut by the U.S.

Federal Reserve in Jun 2024. Further,

prices rose as market participants

preferred safe-haven yellow metals amid

concerns about geopolitical tensions.

Brent Crude

• Brent crude oil prices edged up on

concerns about a tighter global supply due

to the rising conflict in the Middle East and

between Russia and Ukraine. However,

gains were limited after data showed an

unexpected rise in U.S. crude and gasoline

inventories in the week ended Mar 22,

2024.

Baltic Dry Index

• The index fell over the week due to

sluggish capesize and panamax activities.

Commodities Market

28-Mar-24

0.36%

3.15%

1.26%

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9.70

9.80

9.90

10.00

10.10

10.20

29-Feb-24 14-Mar-24 28-Mar-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

83.37 83.35

Pound Sterling

105.29 105.25

EURO

90.22 90.26

100 Yen

55.09 55.05

Source: Refinitiv Figures in INR , *

Value as on Mar 28, 2024

Rupee

• The Indian rupee in the spot trade edged up

against the U.S. dollar, tracking rise in Asian

counterparts, which helped the domestic

currency to recover from last week's lows.

However, gains were restricted due to

greenback demand.

Euro

• Euro fell against the greenback as the European

Central Bank suggested a probable interest rate

cut in Jun 2024.

Pound

• Pound rose against the U.S. dollar as market

participants waited for fresh triggers to give

clues on U.S. Federal Reserve policy.

• Yen rose against the U.S. dollar as investors bet

that the U.S. Federal Reserve would start

cutting interest rates this year.

Currencies Markets

28-Mar-24

0.02%

0.07%

-0.05%

0.04%

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The Week that was…

Mar to 29

Mar

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The Week that was (Mar 25 – Mar 29)

Date Events

Present

Value

Monday,

March 25, 2024

• U.S. New Home Sales (MoM)(Feb) 0.662M 0.664M

• China FDI - Foreign Direct Investment (YTD) (YoY)(Feb) -19.90% -11.70%

Tuesday,

March 26, 2024

• India Current Account (Q4) $-10.5B $-11.4B

• Germany Gfk Consumer Confidence Survey(Apr) -27.4 -28.8

• U.S. Durable Goods Orders ex Defense(Feb) 2.20% -7.90%

• U.S. Housing Price Index (MoM)(Jan) -0.10% 0.10%

Wednesday,

March 27, 2024

• Eurozone Consumer Confidence(Mar) -14.9 -14.9

• Eurozone Industrial Confidence(Mar) -8.8 -9.4

• U.S. EIA Crude Oil Stocks Change(Mar 22) 3.165M -1.952M

• Japan Foreign Investment in Japan Stocks(Mar 22) ¥-891.4B ¥-1,461.9B

Thursday,

March 28, 2024

• India External Debt (Q4) $648.2B $635.3B

• Germany Retail Sales (YoY)(Feb) -2.70% -1.40%

• U.K. Gross Domestic Product (YoY)(Q4) -0.20% -0.20%

• Germany Unemployment Rate (Mar) 5.90% 5.90%

Friday,

March 29, 2024

• India Infrastructure Output (YoY) (Feb) 6.70% 4.10%

• U.S. Core Personal Consumption Expenditures - Price Index (YoY)(Feb) 2.80% 2.90%

• U.S. Personal Spending(Feb) 0.80% 0.20%

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The Week Ahead

Apr to 05

Apr

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The Week Ahead

Day Event

Monday,

Apr 01, 2024

• China Caixin Manufacturing PMI (Mar)

• U.S. ISM Manufacturing PMI(Mar)

• Japan Monetary Base (YoY)(Mar)

Tuesday,

Apr 02, 2024

• Germany HCOB Manufacturing PMI (Mar)

• Eurozone HCOB Manufacturing PMI (Mar)

• Germany Consumer Price Index (MoM) (Mar) PREL

• Germany Harmonized Index of Consumer Prices (MoM)(Mar) PREL

Wednesday,

Apr 03, 2024

• China Caixin Services PMI (Mar)

• Eurozone Harmonized Index of Consumer Prices (MoM)(Mar) PREL

• U.S. ISM Services PMI(Mar)

Thursday,

Apr 04, 2024

• India HSBC Composite PMI Final (MAR)

• Germany HCOB Composite PMI(Mar)

• Eurozone HCOB Composite PMI(Mar)

• Eurozone Producer Price Index (MoM)(Feb)

• U.S. Initial Jobless Claims (Mar 29)

Friday,

Apr 05, 2024

• Reserve Bank of India Interest Rate Decision

• U.S. Nonfarm Payrolls (Mar)

• U.S. Unemployment Rate (Mar)

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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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