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NEWS U CAN USE
Nov 08, 2024
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The Week that was…
04
th
Nov to 08
th
Nov
2
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Indian Economy
• The Manufacturing Purchasing Managers' Index stood at 57.5 in Oct 2024 compared to
56.5 in Sep 2024. Enhanced demand has led to an increase in job creation and a favorable
business environment. There has been a significant rise in new orders, both from domestic
and international markets.
• India’s Services Purchasing Managers’ Index (PMI) increased to 58.5 in Oct 2024 as
compared to 57.7 in Sep 2024, driven by strong demand and job creation. Composite PMI
rose to 59.1 from 58.3 in the same period.
• Gross Goods and Services Tax (GST) collections rose 8.9% YoY to Rs. 1.87 lakh crore in Oct
2024, the second highest level of monthly collections seen since the Jul 2017 rollout of
the indirect tax regime, primarily driven by a rise in domestic revenue than imports.
• According to a government official, India is gearing up to collect economic data at the
district level, aiming to release gross district development figures by Jan 2026. This
initiative, endorsed by all states, will encompass data on household consumption,
employment, inflation, and more to bolster the state statistical system and provide
valuable insights for both government and private sector decision-making.
• According to railways ministry data, goods ferried via the Indian Railways registered a
growth of 1.5% YoY during Oct 2024 to 131 million tonnes, compared to a cargo growth of
8.5% in Oct 2023.
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4
Domestic Equity Market Indices
Indices
08-Nov-24 1 Week Return YTD Return
BSE Sensex
79,486.32 0.12% 10.03%
Nifty 50
24,148.20 -0.24% 11.12%
BSE Mid
-Cap 46,080.07 0.25% 25.08%
BSE Small
-Cap 54,913.85 -0.13% 28.68%
Source: Refinitiv
Values as on Nov 08, 2024
• Domestic equity markets remained
mixed during the week as key
benchmark indices BSE Sensex rose
0.12% and Nifty 50 fell 0.24%. The mid-
cap segment closed the week in green
and the small-cap segment closed the
week in red.
• Domestic equity markets started the
week on weaker note as increased
tensions in the Middle East, along with
concerns surrounding the upcoming
U.S. Presidential election and the U.S.
Fed's decision on interest rates.
Meanwhile, markets recovered as
sentiment was boosted after the
former U.S. President and Republican
candidate took a decisive lead in the
2024 U.S. election. However, markets
experienced fall towards the end of the
week amid concerns over softening
second quarter earnings.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
22.77 22.27 39.73 33.25
P/B
4.02 3.62 4.67 3.80
Dividend Yield
1.15 1.29 0.75 0.59
Source: NSE, BSE
Values as on Nov 08, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
04-Nov-24 669 2,156 0.31
05-Nov-24 1,759 1,012 1.74
06-Nov-24 2,176 626 3.48
07-Nov-24 1,051 1,737 0.61
08-Nov-24 835 1,939 0.43
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
BSE Auto
54,041.07 0.94% -8.86%
BSE Bankex
58,857.86 0.33% 1.82%
BSE CD
61,648.78 1.64% -5.26%
BSE CG
69,479.43 0.54% -1.77%
BSE FMCG
21,408.62 -1.18% -6.95%
BSE HC
44,050.85 0.31% 0.22%
BSE IT
41,975.89 3.83% -1.77%
BSE Metal
30,982.90 -0.95% -6.50%
BSE Oil & Gas
27,324.24 -0.49% -9.40%
Source:BSE
Values as on Nov 08, 2024
• On the BSE sectoral front, BSE IT rose 3.83% in
anticipation of a rebound in information
technology spending in the U.S. following the
result of the U.S. election 2024.
• BSE FMCG declined 1.18% as weaker consumer
demand and lower spending power heightened
caution within the segment.
Indian Derivatives Market Review
• Nifty Nov 2024 Futures stood at 24,219.85, a premium of 71.65 points above the spot
closing of 24,148.20.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1,812.48 lakh crore as against Rs. 1,659.87 lakh crore for the week to Oct 31.
• The Put-Call ratio stood at 0.91 compared with the previous week’s close of 0.88.
• The Nifty Put-Call ratio stood at 0.80 compared with the previous week’s close of 0.80.
Indian Equity Market (contd.)
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6.78
6.80
6.82
6.84
6.86
4-Nov 5-Nov 6-Nov 7-Nov 8-Nov
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
6.44 6.54 6.42 6.61
91 Day T-Bill
6.46 6.53 6.48 7.00
07.06% 2028, (5 Yr GOI)
6.73 6.75 6.73 7.13
07.10% 2034, (10 Yr GOI)
6.81 6.84 6.81 7.09
Source: Refinitiv Values as on Nov 08, 2024
• Bond yields remained largely steady
during the week; however yields fell at
the end of the week following a drop in
U.S. Treasury yields after the U.S. Federal
Reserve reduced interest rate by 25 bps
in its Nov 2024 policy meeting.
• Yield on the new 10-year benchmark
paper (6.79% GS 2034) fell by 3 bps to
close at 6.78% from the previous week’s
close of 6.81%.
• Yield on the old 10-year benchmark
paper (7.10% GS 2034) fell by 3 bps to
close at 6.81% from the previous week’s
close of 6.84%.
• Data from Reserve Bank of India showed
that India's foreign exchange reserves
decreased to $682.13 billion for the
week ended Nov 01, 2024 compared with
$684.81 billion a week earlier.
Domestic Debt Market
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-10
-5
0
5
10
6.00
6.30
6.60
6.90
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 08-Nov-24 31-Oct-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 6.80 7.56 76
3 Year 6.85 7.44 59
5 Year 6.86 7.44 58
10 Year 6.89 7.35 46
Source: Refinitiv
Values as on Nov 08, 2024
• Yields on gilt fell up to 7 bps across the maturities,
barring 1, 2, 15 & 19 year papers that rose up to 8
bps, while 12, 14 & 30 year papers were unchanged.
• Corporate bond yields fell up to 8 bps across the
curve, barring 2 & 3 year papers that increased by 3
& 1 bps, respectively, while 1 year paper was
unchanged.
• Difference in spread between AAA corporate bond
and gilt contracted between 2 to 11 bps across the
segments, barring 2 to 4 & 10 year papers that
expanded by 1 or 2 bps, while 5 year paper
remained steady.
Domestic Debt Market (Spread Analysis)
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8
• SEBI has mandated that AMCs provide distinct disclosures of expense ratios, returns, and
yields for direct and regular plans. By enacting this new regulation, the regulator aims to
promote greater transparency, investor understanding, and a uniform disclosure strategy by
the mutual fund industry. Currently, AMCs disclose expense ratio, returns and yields only for
regular plans of their schemes.
• SEBI has enabled fund houses to invest in international mutual funds or mutual funds
exposed to Indian securities. This came after SEBI received feedback from the Mutual Fund
Advisory Committee. The development is expected to facilitate the Indian mutual fund
industry invest in international securities, which is currently not possible due to a breach in
limit of international investments. However, Indian fund houses can only invest in
international mutual funds whose exposure to Indian securities is not more than 25%.
• The Government of India has formed 22 sub-committees to re-evaluate the Income Tax Act
with the aim of simplifying it and making it more user-friendly. The Minister of Finance
reviewed the progress of this initiative, which has already received 6,500 public proposals.
The goal is to introduce a draft bill during the upcoming budget session.
• The central government has approved an equity infusion of Rs. 10,700 crore in the Food
Corporation of India for working capital in FY25, aims to boost the agricultural sector and
ensure the welfare of farmers.
Regulatory Updates in India
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9
• The Insolvency and Bankruptcy Board of India has presented a proposal that could
expedite the resolution process for stressed real estate firms. The proposal aims to grant
ownership of plots or apartments to buyers who have cleared their dues and are currently
occupying their units during the bankruptcy resolution of the stressed real estate firm,
subject to the approval of the committee of creditors.
• The RBI has decided to expand the reporting requirement of forex transactions and
include foreign exchange spot deals to ensure completeness of transaction data in the
trade repository of the Clearing Corporation of India. Starting Feb 10, 2025, authorized
dealers must report all spot deals, including cash and tom transactions, to the Clearing
Corporation of India's trade repository.
• The Central Board of Indirect Taxes and Customs has reduced the insurance requirement
for stored customs cargo to 5 days from 10 days, to improve cash flow for Customs Cargo
Service Providers (CCSPs). Additionally, CCSPs meeting international standards will no
longer need to renew licenses for handling goods.
Regulatory Updates in India (contd..)
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• The Federal Reserve announced on 7th Nov, 2024 its anticipated decision to reduce
interest rates by an additional quarter point, after aggressively slashing interest rates by
half a percentage point in Sep 2024. The U.S. Federal Reserve said it has decided to lower
the target range for the federal funds rate by 25 basis points, settings it at 4.50% to 4.75%.
The central bank announced that its choice to persist in reducing interest rates is
influenced by the overall easing of labor market conditions, alongside the ongoing
advancement of inflation towards its target of 2%.
• According to the Institute for Supply Management, U.S. services PMI rose to 56.0 in Oct
2024 from 54.9 in Sep 2024, with a reading above 50 indicating growth. The uptick
surprised economists, who had expected the index to dip to 53.8.
• The Bank of England has lowered its benchmark interest rate for the second time this year
on 7th Nov, 2024, attributing this decision to ongoing advancements in disinflation. The
Monetary Policy Committee opted to decrease the rate by 25 basis points, bringing it down
to 4.75%.
• According to a survey, eurozone’s HCOB manufacturing Purchasing Managers' Index
increased to 46.0 in Oct 2024 from 45.0 in Sep 2024. The flash score was 45.9.
• According to a survey, China’s services PMI improved to 52.0 in Oct 2024. That's up from
50.3, and it moves further above the boom-or-bust line that separates expansion from
contraction.
10
Global News/Economy
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11
Global Indices
Indices
08-Nov-24
1-Week
Return
YTD
Return
Russell 3000 3,148.54 5.88% 31.04%
Nasdaq 100 21,117.18 5.41% 25.50%
FTSE 100 8,072.39 -1.28% 4.39%
DAX Index 19,215.48 -0.21% 14.71%
Nikkei Average 39,500.37 3.80% 18.04%
Straits Times 3,724.37 4.75% 14.94%
Source: Refinitiv Value as on Nov 08, 2024
U.S.
• U.S. equity markets rose as a positive
reaction to the former President's victory
in the U.S. presidential election. Further,
the U.S. market gained after the U.S.
Federal Reserve made its anticipated
announcement regarding a reduction in
interest rates, decreasing them by a
quarter point on 7th Nov, 2024.
Europe
• European equity markets fell on concerns about geopolitical tensions, and the anticipated
effects of the new President's protectionist policies on the global economy have
negatively influenced market sentiment. The prospect of the former President
implementing increased tariffs, along with the potential strain on international relations,
influenced overall sentiment.
Asia
• Asian equity markets mostly rose as positive Chinese trade data in Oct 2024 alleviated
worries regarding the effects of the new U.S. President's policies on international trade,
immigration, and other significant matters.
Global Equity Markets
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4.20
4.25
4.30
4.35
4.40
4.45
4-Nov 5-Nov 6-Nov 7-Nov 8-Nov
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury rose
by 3 bps to close at 4.31% from the
previous week’s close of 4.28%.
• U.S. Treasury prices fell after the new
President's victory in the presidential
election, which sparked speculation
regarding potential changes in
economic policy that may increase
inflation.
• However, losses were restricted after
the U.S. Federal Reserve cut interest
rates by 25 basis points on 7th Nov,
2024, as widely expected, amid a
cooling labor market, while noting that
economic growth remained solid.
Global Debt (U.S.)
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8.00
9.00
10.00
11.00
12.00
8-Oct-24 24-Oct-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($/Barrel)
74.79 73.86
Gold ($/Oz)
2,683.77 2,735.16
Gold (Rs/10 gm)
77,031 79,181
Silver ($/Oz)
31.29 32.43
Silver (Rs/Kg)
91,014 96,548
Source: Refinitiv *Value as on Nov 08,
2024;
Gold
• Gold prices fell as markets began to
understand the ramifications of the new
President’s election victory and its possible
effects on U.S. interest rate forecasts.
However, losses were restricted after a 25-
bps interest rate cut announcement by the
U.S. Federal Reserve on 7th Nov, 2024.
Brent Crude
• Brent crude oil prices rose supported by
OPEC's choice to postpone its plans for
production increases, alongside escalating
worries regarding tensions in the Middle
East.
Baltic Dry Index
• The index rose over the week due to
improved capesize and panamax activities.
Commodities Market
08-Nov-24
1.26%
-1.88%
-3.50%
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9.40
9.50
9.60
9.70
9.80
9.90
10.00
10.10
8-Oct-24 24-Oct-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
84.38 84.09
Pound Sterling
109.40 108.95
EURO
90.92 91.25
100 Yen
55.19 55.03
Source: Refinitiv Figures in INR , *Value as on
Nov 08, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar as the U.S. presidential election
outcome boosted the greenback demand.
Further, prices fell due to weakness in other
Asian peers.
Euro
• The euro fell against the greenback as investors
evaluated the likely impact on the U.S. economy
after the new President's victory.
Pound
• Pound rose against the U.S. dollar despite
concerns about the U.S. economy after the new
President's victory.
Y
en
• Yen rose slightly against the U.S. dollar despite
concerns regarding the U.S. economy that have
emerged following the recent victory of the
new President.
Currencies Markets
08-Nov-24
0.34%
0.29%
-0.36%
0.41%
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15
The Week that was…
04
th
Nov to 08
th
Nov
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16
The Week that was (Nov 04 – Nov 08)
Date Events
Present
Value
Previous
Value
Monday,
November 04, 2024
• U.S. Factory Orders (MoM) (Sep) -0.50% -0.80%
• Japan Monetary Base (YoY) (Oct) -0.30% -0.10%
• Eurozone Sentix Investor Confidence (Nov) -12.80 -13.80
Tuesday,
November 05, 2024
• U.K. BRC Like-For-Like Retail Sales (YoY) (Oct) 0.30% 1.70%
• China Caixin Services PMI (Oct) 52.00 50.30
• U.S. S&P Global/CIPS Composite PMI (Oct) 51.80 51.70
• U.S. ISM Services PMI (Oct) 56.00 54.90
Wednesday,
November 06, 2024
• Japan Labor Cash Earnings (YoY) (Sep) 2.80% 2.80%
• Germany Factory Orders (MoM) (Sep) 4.20% -5.40%
• Eurozone HCOB Composite PMI (Oct) 50.00 49.70
• Eurozone Producer Price Index (YoY) (Sep) -3.40% -2.30%
Thursday,
November 07, 2024
• China Exports (YoY) (Oct) 12.70% 2.40%
• Germany Industrial Production (MoM) (Sep) -2.50% 2.60%
• U.S. Federal Reserve Interest Rate Decision 4.75% 5.00%
• U.K. Bank of England Interest Rate Decision 4.75% 5.00%
• Eurozone Retail Sales (YoY) (Sep) 2.90% 2.40%
Friday,
November 08, 2024
• U.S. Michigan Consumer Sentiment Index (Nov) 73.00 70.50
• Japan Leading Economic Index (Sep) Prel 109.40 106.90
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17
The Week Ahead
11
th
Nov to 15
th
Nov
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18
The Week Ahead
Day Event
Monday,
Nov 11, 2024
• Japan Machine Tool Orders (YoY) (Oct)
• China FDI - Foreign Direct Investment (YTD) (YoY) (Oct)
Tuesday,
Nov 12, 2024
• India Manufacturing Production (YoY) (Sep)
• India Inflation Rate (MoM) (Oct)
• Germany Harmonized Index of Consumer Prices (YoY) (Oct)
• U.K. Employment Change (3M) (Sep)
• Japan Producer Price Index (MoM) (Oct)
Wednesday,
Nov 13, 2024
• Bank of England Monetary Policy Report Hearings
• Eurozone Industrial Production (MoM) (Sep)
• U.S. Consumer Price Index (MoM) (Oct)
Thursday,
Nov 14, 2024
• Eurozone Gross Domestic Product (QoQ) (Q3) Prel
• U.S. Initial Jobless Claims (Nov 8)
• U.S. Producer Price Index (MoM) (Oct)
• Japan Gross Domestic Product (QoQ) (Q3) Prel
Friday,
Nov 15, 2024
• China Industrial Production (YoY) (Oct)
• China Retail Sales (YoY) (Oct)
• U.S. Retail Sales (MoM) (Oct)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
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
not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Recipients of this information should rely
on information/data arising out of their own investigations. Before making any investments, the readers are advised to seek independent
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consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
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19
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