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NEWS U CAN USE
May 10, 2024
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The Week that was…
06
th
May to 10
th
May
2
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Indian Economy
• India’s Services Purchasing Managers’ Index (PMI) eased slightly to 60.8 in Apr 2024 as
compared to 61.2 in Mar 2024 but saw the fastest growth rates in 14 years. Growth was
driven by significant rise in new orders, with a notable strength in domestic demand.
• Industrial production growth in India (IIP) slowed to 4.9% YoY in Mar 2024, as compared to
5.6% rise in Feb 2024. Production in the manufacturing industry increased by 5.2%, mining
by 1.2% and electricity by 8.6% in Mar 2024.
• According to the Petroleum Planning and Analysis Cell of the oil ministry, India's fuel
consumption rose by 6.1% YoY in Apr 2024 to 19.86 million metric tons. Sales of diesel &
gasoline rose by 1.4% & 14% annually to 7.93 million tons & 3.28 million tons in the same
period, respectively.
• According to the Ministry of Commerce, the merchandise exports slightly declined by 3%
to USD 437.1 billion in FY24 compared to FY23, while services exports rose to USD 341.1
billion against $325.3 in the same period. Overall exports reached $778.2 billion in FY24 as
compared to $776.4 billion in FY23, registering a marginal growth of 0.23%.
• According to the latest National Account Statistics 2024 of the Ministry of Statistics and
Programme Implementation, net household savings declined sharply by Rs. 9 lakh crore to
Rs. 14.16 lakh crore in three years to 2022-23. The net household savings peaked at Rs.
23.29 lakh crore in 2020-21.
3
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4
Domestic Equity Market Indices
Indices
10-May-24 1 Week Return YTD Return
S&P BSE Sensex
72,664.47 -1.64% 0.59%
Nifty 50
22,055.2 -1.87% 1.49%
S&P BSE Mid
-Cap 41,027.75 -3.27% 11.37%
S&P BSE Small
-Cap 45,396.99 -3.80% 6.38%
Source: Refinitiv
Values as on May 10, 2024
• Domestic equity markets fell after
witnessing rise in previous two weeks
as key benchmark indices S&P BSE
Sensex and Nifty 50 fell 1.64% and
1.87%, respectively. The fall was broad
based as the mid-cap segment and the
small-cap segment both closed the
week in red.
• Domestic equity markets fell during the
week following the escalated tensions
in the Middle East after Israel's plans to
proceed with military operations in the
southern city of Rafah, despite the
ongoing ceasefire talks. Losses were
extended on concern over the
unpredictability surrounding the
outcome of the ongoing general
election and due to decreased voter
turnout. Sentiments were further
affected by concerns over delays in rate
cuts by the U.S. Federal Reserve.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
23.25 21.33 29.34 32.23
P/B
3.52 3.87 3.73 3.44
Dividend Yield
1.22 1.36 0.93 0.66
Source: NSE, BSE
Values as on May 10, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
06-May-24 770 1,848 0.42
07-May-24 597 1,995 0.30
08-May-24 1431 1118 1.28
09-May-24 413 2156 0.19
10-May-24 1591 965 1.65
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
S&P BSE Auto
51,984.19 1.25% 3.91%
S&P BSE Bankex
54,153.35 -2.27% -2.23%
S&P BSE CD
52,203.64 -4.76% -2.92%
S&P BSE CG
60,987.48 -2.60% -2.51%
S&P BSE FMCG
19,857.43 1.29% 1.58%
S&P BSE HC
34,695.60 -2.46% -2.81%
S&P BSE IT
33,700.95 -0.59% -6.61%
S&P BSE Metal
30,773.30 -3.32% 0.84%
S&P BSE Oil & Gas
27,833.31 -4.50% -2.72%
Source:BSE
Values as on May 10, 2024
• On the BSE sectoral front, S&P BSE PSU
experienced 4.84% fall on concerns over
election-related uncertainty. Sate owned
lenders further dragged down the sector after
the RBI proposed stricter regulations on
projects under implementation.
• As per the RBI guidelines, 5% general provision
must be set aside for all existing and new
project loans in the construction phase. Once
projects are in the operational phase, these
provisions can be reduced to 2.5% of the
funding outstanding and further to 1% under
certain conditions.
Indian Derivatives Market Review
• Nifty May 2024 Futures stood at 22,140.60, a premium of 85.40 points above the spot
closing of 22,055.20.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1781.90 lakh crore as against Rs. 1536.12 lakh crore for the week to May 03.
• The Put-Call ratio stood at 0.94 compared with the previous week’s close of 1.05.
• The Nifty Put-Call ratio stood at 0.91 compared with the previous week’s close of 0.89.
Indian Equity Market (contd.)
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7.10
7.11
7.12
7.13
7.14
6-May 7-May 8-May 9-May 10-May
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
6.73 6.45 6.55 6.80
91 Day T-Bill
7.02 7.03 6.85 6.94
07.06% 2028, (5 Yr GOI)
7.11 7.15 7.09 7.25
07.18% 2033, (10 Yr GOI)
7.13 7.15 7.11 7.30
Source: Refinitiv Values as on May 10, 2024
• Bond yields declined in tandem with a
significant drop in U.S. Treasury yields as
a result of weaker-than-expected
employment data in Apr 2024. The
unexpected announcement of the Indian
government's bond buyback resulted in
further gains. However, gains were
restricted as market participants
preferred to book profits following the
recent rise in prices of securities.
• Yield on the 10-year benchmark paper
(7.18% GS 2033) fell by 2 bps to close at
7.13% from the previous week’s close of
7.15%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
increased to $641.59 billion for the week
ended May 03, 2024 compared with
$637.92 billion a week earlier.
Domestic Debt Market
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-10
-5
0
5
6.90
7.00
7.10
7.20
7.30
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 10-May-24 03-May-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 7.19 7.92 73
3 Year 7.25 7.78 53
5 Year 7.25 7.68 43
10 Year 7.25 7.65 40
Source: Refinitiv
Values as on May 10, 2024
• Yields on gilt fell between 2 to 5 bps across the
maturities, barring 1 year paper that rose by 2 bps,
while 12 year paper was unchanged.
• Corporate bond yields fell up to 10 bps across the
curve, barring 15 year paper that was unchanged.
• Difference in spread between AAA corporate bond
and gilt remained steady or expanded by 1 bps
across the segments, barring 1 year paper that
contracted by 12 bps and 15 year paper that
expanded by 3 bps.
Domestic Debt Market (Spread Analysis)
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8
• The capital market regulator SEBI has asked investment advisors to periodically share details
of the bank account in which they receive fees, their social media activities and their
certifications with SEBI. Investment advisors will also need to report about inspections done
by SEBI on them and complaints lodged against them, in every 6 months.
• The corporate affairs ministry is considering a quicker way to transfer shares, dividends, and
matured debentures in inactive accounts that haven't been claimed in more than seven
years. After following the correct procedures and receiving Investor Education and
Protection Fund Authority’s approval, the ministry intends to permit companies to settle
claims. The authority will transfer unclaimed papers to companies for refunds within 15
days.
• According to media report, the Centre has begun moving towards excluding farm fire
burners from Minimum Support Price benefits this year on, citing the 2023 Supreme Court
recommendation on bringing in disincentives for stubble burning.
• According to media report, a high-level expert panel on floor wages in India will review the
wage rates that were previously decided upon, taking into account the minimum wages that
are announced by each state in three different categories. The committee will hold its final
meeting on May 27, 2024 and submit its report to the new government by Jun 2024.
Regulatory Updates in India
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9
• The RBI is striving to increase the acceptance of the Central Bank Digital Currency (CBDC)
for retail transactions, although the number of transactions using the CBDC has reached
one million per day. In addition to introducing programmability features and encouraging
financial inclusion, the RBI is concentrating on making the digital currency transferable
offline.
• According to notification published by Directorate General of Foreign Trade, the central
government has permitted exports of 14,000 tonne of non-basmati white rice to Mauritius
through National Cooperative Exports Limited.
Regulatory Updates in India (contd..)
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• According to the Labor Department, U.S. jobless claims climbed to 231,000 in the week
ended May 4th 2024, an increase of 22,000 from the previous week's revised level of
209,000.
• According to the Office for National Statistics, U.K. gross domestic product grew 0.6% in
the first quarter of 2024 from the fourth quarter of 2023, when the economy shrank by
0.3%. Output had declined 0.1% in the third quarter last year.
• The Bank of England left its key policy rate unchanged for the sixth consecutive meeting
and signaled that the first-rate cut since 2020 is on the horizon. The Monetary Policy
Committee decided to hold the Bank Rate at 5.25% again in a split vote. The current bank
rate is the highest since early 2008.
• According to Destatis, Germany’s industrial production declined 0.4% on a monthly basis in
Mar 2024, in contrast to the 1.7% increase in Feb 2024. This was the first drop so far this
year and the pace of decline was less severe than the expected 0.6% fall.
• According to the customs office, China’s exports advanced 1.5% on a yearly basis in Apr
2024. This was faster than the 1.0% expected growth and reversed Mar's 7.5% decrease.
• According to a survey, China’s caixin Services Purchasing Managers' Index fell to 52.5 in Apr
2024 from 52.7 in the previous month. A reading above 50.0 indicates expansion in the
sector.
10
Global News/Economy
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11
Global Indices
Indices
10-May-24
1-Week
Return
YTD
Return
Russell 3000 2,658.25 1.57% 10.63%
Nasdaq 100 18,161.18 1.51% 7.94%
FTSE 100 8,433.76 2.68% 9.06%
DAX Index 18,772.85 4.28% 12.07%
Nikkei Average 38,229.11 -0.02% 14.24%
Straits Times 3,290.70 -0.07% 1.56%
Source: Refinitiv Value as on May 10
, 2024
U.S.
• U.S. equity markets rose following the
Labor Department's data release, which
showed a far greater increase in first
claims for U.S. unemployment benefits
in the week ending May 4, 2024, than
was predicted. The news may have
reinforced the newly revived
expectation that the U.S. Federal
Reserve will cut interest rates in the
coming months.
Europe
• European markets rose after the Labor Department showed that U.S. jobless claims
climbed to 231,000 in the week ended May 4th, 2024, an increase far greater than 22,000
from the previous week's revised level of 209,000, which was predicted that would fuel
hopes the U.S. Federal Reserve will soon start lowering interest rates.
Asia
• Asian equity markets closed on a mixed note. Asian equity markets rose as fresh signs of
cooling in the U.S. labor market revived prospects for U.S. rate cuts this year. The Chinese
market rose after data showed that China’s exports and imports rebounded more than
expected in Apr 2024.
Global Equity Markets
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4.42
4.44
4.46
4.48
4.50
4.52
6-May 7-May 8-May 9-May 10-May
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury
remained steady at 4.50% from the
previous week’s close of 4.50%.
• U.S. Treasury prices rose on Thursday
after the Labor Department showed
that U.S. jobless claims climbed to
231,000 in the week ended May 4th
2024, an increase of 22,000 from the
previous week's revised level of
209,000, which fueled hopes the U.S.
Federal Reserve will soon start lowering
interest rates.
• Meanwhile, investors waited on key
inflation data for Apr 2024 next week
for more clues about Federal Reserve
policy.
Global Debt (U.S.)
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8.00
8.50
9.00
9.50
10.00
10.50
11.00
10-Apr-24 26-Apr-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($/Barrel)
84.53 84.7
Gold ($/Oz)
2,360.14 2,301.56
Gold (Rs/10 gm)
72,886 70,941
Silver ($/Oz)
28.15 26.54
Silver (Rs/Kg)
84,267 79,911
Source: Refinitiv *Value as on May 10, 2024
Gold
• Gold prices rose after data showing a
considerably larger than anticipated
increase in U.S. unemployment claims in
the week ending May 4th, 2024, which
fueled hopes the U.S. Federal Reserve will
soon start lowering interest rates.
Brent Crude
• Brent crude oil prices fell slightly despite
optimism about the demand forecast
following data that revealed a rise in
imports from China and recent data that
revealed a larger than anticipated decline
in U.S. oil stockpiles last week.
Baltic Dry Index
• The index rose over the week due to
improved capesize and panamax activities.
Commodities Market
10-May-24
-0.20%
2.55%
6.06%
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9.40
9.60
9.80
10.00
10.20
10-Apr-24 26-Apr-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
83.49 83.38
Pound Sterling
104.69 104.62
EURO
90.01 89.50
100 Yen
53.66 54.45
Source: Refinitiv Figures in INR , *Value as on May
10, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar due to weakness in other Asian
peers and negative trends in the domestic
equity market.
Euro
• The euro rose against the greenback following
economic data that continued to indicate a
deterioration of the U.S. labor market, which
raised hope for interest rate cuts in the U.S.
Pound
• Pound fell against the U.S. dollar despite
economic data showed that continued to point
to the U.S. labor market's softening.
Y
en
• Yen fell against the U.S. dollar after economic
data showed more signs of softening in the U.S.
labor market.
Currencies Markets
10-May-24
0.14%
-1.45%
0.57%
0.07%
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15
The Week that was…
06
th
May to 10
th
May
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16
The Week that was (May 06 – May 10)
Date Events
Present
Value
Previous
Value
Monday,
May 06, 2024
• China Caixin Services PMI(Apr) 52.5 52.7
• Geramany HCOB Composite PMI(Apr) 50.6 50.5
• Eurozone Producer Price Index (MoM)(Mar) -0.40% -1.10%
Tuesday,
May 07, 2024
• Germany Factory Orders (MoM)(Mar) -0.40% -0.80%
• Eurozone Retail Sales (YoY)(Mar) 0.70% -0.50%
• U.S. API Weekly Crude Oil Stock(May 3) 0.509M 4.906M
Wednesday,
May 08, 2024
• Germany Industrial Production (MoM)(Mar) -0.40% 1.70%
• U.S. Wholesale Inventories (Mar) -0.40% -0.40%
• Japan Labor Cash Earnings (YoY)(Mar) 0.60% 1.40%
Thursday,
May 09, 2024
• China Imports (YoY)(Apr) 8.40% -1.90%
• U.K. BoE Interest Rate Decision 5.25% 5.25%
• U.S. Initial Jobless Claims(May 3) 231K 209K
• Japan Current Account (Mar) ¥3,398.8B ¥2,644.2B
Friday,
May 10, 2024
• India Industrial Production (YoY) (Mar) 4.90% 5.60%
• U.K. Gross Domestic Product (QoQ)(Q1) PREL 0.60% -0.30%
• U.K. Industrial Production (MoM)(Mar) 0.20% 1.00%
• U.S. Michigan Consumer Sentiment Index(May) PREL 67.4 77.2
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17
The Week Ahead
13
th
May to 17
th
May
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18
The Week Ahead
Day Event
Monday,
May 13, 2024
• India Inflation Rate (YoY) (Apr)
• U.S. Fed's Mester speech
• Japan Producer Price Index (YoY)(Apr)
Tuesday,
May 14, 2024
• Germany Harmonized Index of Consumer Prices (MoM)(Apr)
• U.K. Claimant Count Change (Apr)
• U.S. Producer Price Index (YoY)(Apr)
Wednesday,
May 15, 2024
• Eurozone Gross Domestic Product (QoQ)(Q1) PREL
• Eurozone Industrial Production (MoM)(Mar)
• U.S. Consumer Price Index (YoY)(Apr)
• U.S. Retail Sales (MoM)(Apr)
• Japan Gross Domestic Product (QoQ)(Q1) PREL
Thursday,
May 16, 2024
• U.S. initial Jobless Claims (May 10)
• U.S. Housing Starts (MoM)(Apr)
• U.S. Industrial Production (MoM)(Apr)
Friday,
May 17, 2024
• China Industrial Production (YoY)(Apr)
• China Retail Sales (YoY)(Apr)
• Eurozone Harmonized Index of Consumer Prices (MoM)(Apr)
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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
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19
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