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NEWS U CAN USE
November 26, 2021
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The Week that was…
22
nd
November to 26
th
November
2
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Indian Economy
• The Indian government and the Asian Development Bank (ADB) have agreed to a $300
million loan to enhance and expand access to comprehensive primary healthcare in 13
states, benefiting over 256 million people, including 51 million from slum regions.
• According to the preliminary data of the commerce ministry, India’s exports rose 18.8% to
USD 20.01 billion during the three-week period of this month (1 Nov – 21 Nov), due to
healthy growth in sectors such as petroleum products, engineering goods, chemicals and
gems and jewellery. Imports during the period increased 45.34% to USD 35.11 billion as
against USD 24.15 billion during the corresponding period last year.
• According to a major state-run bank report, India's GDP growth projection has been
revised upward to range of 9.3% - 9.6% for FY22 and 8.1% in Q2FY22. The revision in GDP
came as 42% population got fully vaccinated againt Covid-19.
• According to a major U.S. investment banking company, following a steep contraction in
2020, India's economic recovery is expected to accelerate in 2022, owing to an increase in
spending. This, in turn, is expected to lift the country's gross domestic product to 9.1%
YoY from 8%.
• As per media reports, India-U.S. bilateral goods trade is set to cross the $100 billion mark in
2021 and the two sides will develop specific trade outcomes by Mar 2022 under the Trade
Policy Forum.
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4
Domestic Equity Market Indices
Indices 26-Nov-21 1 Week Return YTD Return
S&P BSE Sensex
57,107.15 -4.24% 19.59%
Nifty 50
17,026.45 -4.16% 21.78%
S&P BSE Mid-Cap
24,846.51 -4.14% 38.49%
S&P BSE Small-Cap
28,071.41 -2.52% 55.11%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
22-Nov-21 349 1,758 0.20
23-Nov-21 1,548 495 3.13
24-Nov-21 1,175 866 1.36
25-Nov-21 1,273 763 1.67
26-Nov-21 428 1,657 0.26
Source: NSE
• Indian equity markets plummeted over
the week, dragged by reports of a
B1.1.529 strain of coronavirus detected
in South Africa. It has mutations with
higher transmissibility and the ability to
evade vaccine defenses.
• The new variant of coronavirus and its
potential to resist vaccines had left
investors round the world worried that
it could put countries' health systems
under stress again, lead to fresh
lockdowns and threaten the global
economic recovery.
• Investors found brief respite after one
of the leading rating agencies reported
that economic growth of India will
rebound firmly in the next financial
years. Nonetheless, relentless selling of
FII kept market participants wary.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
26.70 23.49 27.26 42.69
P/B
3.48 4.26 3.08 3.21
Dividend Yield
0.99 1.18 0.93 0.70
Source: BSE, NSE Va
lue as on Nov 26, 2021
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
24,330.73 -8.11% -5.06%
S&P BSE Bankex
41,117.95 -5.09% -12.98%
S&P BSE CD
41,920.13 -6.21% -4.80%
S&P BSE CG
27,058.85 -5.02% 0.67%
S&P BSE FMCG
13,748.54 -3.28% -3.81%
S&P BSE HC
25,626.80 1.75% 1.69%
S&P BSE IT
33,839.31 -3.62% -1.14%
S&P BSE Metal
18,703.68 -1.95% -10.44%
S&P BSE Oil & Gas
17,783.21 -3.75% -5.68%
Source: Refinitiv *Value as on Nov 26, 2021
• On the BSE sectoral front, majority of the
indices closed in the red. S&P BSE Auto was
the major loser, down 8.11%, followed by S&P
BSE Realty and S&P BSE Consumer Durables,
which slipped 6.87% and 6.21%. respectively.
Export linked stocks such as auto and metals
sectors came under selling pressure following
reports of emergence of new strain of
coronavirus.
Indian Derivatives Market Review
• Nifty Dec 2021 Futures stood at 17,052.15, a premium of 25.70 points above the spot
closing of 17,026.45. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 403.06 lakh crore as against Rs. 310.48 lakh crore for the week to Nov 18.
• The Put-Call ratio stood at 0.96, compared with the previous week’s close of 0.83.
• The Nifty Put-Call ratio stood at 0.73 compared with the previous week’s close of 0.78.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
3.24 3.44 3.33 3.20
91 Day T-Bill
3.54 3.54 3.51 3.41
05.22% 2025, (5 Yr GOI)
5.34 5.36 5.38 5.27
06.10% 2031, (10 Yr GOI)
6.33 6.35 6.36 5.97
Source: Refinitiv Value as on Nov 26, 2021
• Bond yields rose initially on concerns that
the U.S. Federal Reserve may raise
interest rates around the middle of 2022,
after tapering its bond purchases to
counter rising inflation in the region.
However, the trend reversed especially at
the end of the week following decline in
U.S. Treasury yields and global crude oil
prices on worries over a new variant of
the COVID-19.
• Yield on the 10-year benchmark paper
(6.10% GS 2031) fell 2 bps to close the
week at 6.33% compared to the previous
week’s close of 6.35%.
• Data from RBI showed that India's
foreign exchange reserves rose by $0.29
billion to $640.40 billion as on Nov 19,
2021 from $640.11 billion in the previous
week.
Domestic Debt Market
6.30
6.34
6.38
22-Nov 23-Nov 24-Nov 25-Nov 26-Nov
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 4.33 4.53 20
3 Year 5.18 5.60 42
5 Year 5.83 6.40 57
10 Year 6.43 7.25 82
Source: Refinitiv Value as on
Nov 26, 2021
• Yields on gilt securities fell by up to 2 bps across the
maturities, barring 1 to 3-, 5- and 11-year papers
that rose by up to 34 bps while 7- & 19-year papers
was steady.
• Corporate bond yields fell by up to 6 bps across the
curve, except 3- and 15-year papers that rose 2 and
16 bps, respectively while 2-, 4- & 10-year papers
were steady.
• Spread between AAA corporate bond and gilt
contracted 1, 3, 6, 24 and 33 bps across the
segments, except 4-, 10- and 15-year papers that
expanded 1, 2 or 18 bps.
Domestic Debt Market (Spread Analysis)
-10
0
10
20
30
2.90
5.10
7.30
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 19 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 26-Nov-21 18-Nov-21
Yield in %
Change in bps
Source: Refinitiv
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8
• Securities and Exchange Board of India (SEBI) said that companies should disclose additional
facts to shareholders about related-party transactions when seeking their approval. In a
circular, the regulator stated that listed companies must justify why the proposed deal is in
their best interests. Details of the source of money in connection with the proposed
transaction should be disclosed if the transaction involves any loans, inter-corporate
deposits, advances, or investments made by the listed business or its subsidiary, it added.
Companies should also disclose all terms, including covenants, interest rates, and repayment
schedules, as well as the eventual beneficiary's intended use of the funds.
• SEBI has issued operational guidelines for silver exchange traded funds (ETFs), making it
easier for investors to have exposure to the commodity in a transparent manner. The
regulator has put forth criteria for silver ETF investment objectives, valuation, net asset
value (NAV) determination, tracking error, tracking difference, and disclosure requirements
in the rules. According to a circular issued by SEBI, silver ETFs must invest at least 95% of
their net assets in silver and silver-related instruments. Furthermore, silver-based Exchange
Traded Commodity Derivatives (ETCDs) will be considered a silver-related instrument for
silver ETFs.
• SEBI proposed lowering pricing standards and lock-in limitations to make it easier for
corporations to raise cash through preferential allotment of shares. Furthermore, the
regulator has recommended allowing promoters or promoter groups to pledge shares
issued under preferential issuance during the lock-in period.
Regulatory Updates in India
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9
• The Reserve Bank of India has warned the public that co-operative societies should not use
the words "bank," "banker," or "banking" in their titles unless it is expressly approved. It
further said that deposits made with the societies are not covered by insurance.
• According to the Union Minister, the government is considering a proposal to provide
more tax-related concessions on vehicles that are purchased after scrapping old vehicles
under the recently launched National Automobile Scrappage Policy.
• According to media sources, the government will introduce legislation to establish
standards for cryptocurrencies that will restrict private coins while also laying the
groundwork for the formation of an official digital currency by the Reserve Bank of India.
According to a Lok Sabha bulletin, the bill is one of 26 bills scheduled for consideration
during the winter session of parliament. The cryptocurrency sector is confident that
cryptocurrencies will not be outright banned.
• The Ministry of Labour has announced a new series of Wage Rate Index (WRI) with a base
year of 2016. The WRI is created and maintained by the Labour Bureau, a ministry-
affiliated organisation. The existing WRI series with base 1963-65 will be replaced by the
new series with base 2016=100.
• The Prime Minister of India applauded the Cabinet's decision to prolong the Pradhan
Mantri Garib Anna Yojana's free monthly supply of 5 kg foodgrains until Mar 2022, stating
it is in accordance with the government's commitment to achieving greater public welfare.
Regulatory Updates in India (contd..)
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• The minutes of the U.S. Federal Reserve's monetary policy meeting expressed worry about
the rate of inflation. Various participants feel that if inflation continues to rise above the
central bank's targets, it may be necessary for the U.S. Federal Reserve to reduce asset
purchases while also raising rates.
• According to data from the Commerce Department, U.S. real gross domestic product rose
2.1% in the third quarter of 2021 compared to the previously reported 2% increase but
slower than 6.7% rise in the second quarter.
• According to data from the Commerce Department, U.S. durable goods orders fell 0.5% in
Oct 2021 following 0.4% fall in Sep 2021.
• According to data from Destatis, Germany’s gross domestic product rose 1.7% sequentially
in the third quarter, instead of 1.8% estimated on earlier. Less than expected GDP was due
to weak investment and exports.
• According to flash survey data from IHS Markit, eurozone’s composite output index rose to
55.8 in Nov 2021 from 54.2 in Oct 2021. The services Purchasing Managers' Index improved
to 56.6 in Nov from 54.6 in the prior month. The manufacturing PMI rose slightly to 58.6 in
Nov from 58.3 a month ago.
• According to data from the Jibun Bank, Japan’s preliminary manufacturing PMI rose to
54.2 in Nov 2021 from 53.2 in Oct 2021. Both output and new order growth accelerated in
Nov.
10
Global News/Economy
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11
Global Indices
Indices
26-Nov-21
1-Week
Return
YTD
Return
Russell 3000 2,389.93 -3.37% 22.40%
Nasdaq 100 16,025.58 -3.31% 24.34%
FTSE 100 7,044.03 -2.49% 9.03%
DAX Index 15,257.04 -5.59% 11.21%
Nikkei Average 28,751.62 -3.34% 4.76%
Straits Times 3,166.27 -2.04% 11.34%
Source: Refinitiv Value as on Nov 26, 2021
U.S.
• U.S. markets fell amid reports of a new
and possibly vaccine resistant
coronavirus variant detected in South
Africa. However, further losses were
restricted after Labor Department
report showed first-time claims for U.S.
unemployment benefits slid to their
lowest level in over fifty years in the
week to Nov 20.
Europe
• European markets tumbled as reports of a newly identified and possibly vaccine-resistant
coronavirus variant added to concerns over surging COVID cases in Europe.
Asia
• Asian markets followed its global peers down as the detection of a new and possibly
vaccine-resistant coronavirus variant in South Africa hit global risk sentiment.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury fell 7
bps to close at 1.48%, from the previous
week’s close of 1.55%.
• U.S. Treasury prices fell initially on
growing possibility that the U.S. Federal
Reserve will soon start tightening its
monetary policy to counter rising inflation
in U.S.
• However, the trend reversed as concerns
about a new coronavirus variant boosted
the safe haven appeal of U.S. Treasury.
Little is known of the variant, detected in
Botswana, Hong Kong and South Africa,
but scientists said it could resist vaccines
and be very transmissible. It has already
prompted Britain to introduce travel
restrictions.
Global Debt (U.S.)
1.40
1.50
1.60
1.70
22-Nov 23-Nov 24-Nov 25-Nov 26-Nov
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)
74.31 81.17
Gold ($/Oz)
1791.81 1844.60
Gold (Rs/10 gm)
48,153 49,038
Silver ($/Oz)
23.13 24.59
Silver (Rs/Kg)*
63,374 66,238
Source: Refinitiv *Value as on Nov 26, 2021
Gold
• Gold prices fell amid expectations that U.S.
interest rates will rise in 2022 after
renomination of U.S. Federal Reserve
Chairman. However, the spread of a new
coronavirus variant identified in South
Africa, restricted further losses.
Brent Crude
• Brent crude oil prices fell as the new
COVID-19 strain sparked fears about a
demand slowdown. Oil prices witnessed
additional pressure as U.S. government
announced plans to release 50 million
barrels of oil from the Strategic Petroleum
Reserve.
Baltic Dry Index
• The index rose during the week due to
improved capesize and panamax activities.
Commodities Market
9.40
10.00
10.60
26-Oct-21 10-Nov-21 25-Nov-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
-5.93%
-8.45%
-2.86%
26-Nov-21
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
74.71 74.16
Pound Sterling
99.36 100.05
EURO
83.85 83.92
100 Yen
65.20 64.91
Source: Refinitiv Figures in INR , *
Value as on Nov 26, 2021
Rupee
• The rupee weakened against the greenback
following losses in the domestic equity market
and worries that the U.S. Federal Reserve may
speed up the tapering of its monthly asset
purchase program.
Euro
• The euro rose against the greenback as
concerns of a new COVID-19 strain led to
speculation that monetary policy tightening by
the U.S. Federal Reserve may get delayed.
Pound
• The pound weakened against the greenback
amid concerns over new COVID restrictions
across Europe.
Yen
• The yen rose against the greenback as its safe
haven appeal improved amid reports of a new
coronavirus variant that is potentially resistant
to current vaccines.
Currencies Markets
9.50
9.80
10.10
26-Oct-21 10-Nov-21 25-Nov-21
USD GBP Euro JPY
Source: Refinitiv
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
26-Nov-21
0.45%
0.75%
-0.69%
-0.08%
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15
The Week that was…
22
nd
November to 26
th
November
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16
The Week that was (November 22 – November 26)
Date Events Present Value Previous Value
Monday,
November 22, 2021
• Eurozone Consumer Confidence(Nov) PREL -6.8 -4.8
• U.S. Existing Home Sales (MoM)(Oct) 6.3M 6.29M
Tuesday,
November 23, 2021
• Germany Markit PMI Composite(Nov) PREL 52.8 52
• Eurozone Markit PMI Composite(Nov) PREL 55.8 54.2
• U.K. Markit Services PMI(Nov) PREL 58.6 59.1
• U.S. Markit PMI Composite(Nov) PREL 56.5 57.6
Wednesday,
November 24, 2021
• U.S. Durable Goods Orders(Oct) -0.50% -0.40%
• U.S. Gross Domestic Product Annualized(Q3) PREL 2.10% 2%
• Germany IFO – Business Climate(Nov) 96.5 97.7
• U.S. Core Personal Consumption Expenditures (QoQ)(Q3) PREL 4.50% 4.50%
Thursday
November 25, 2021
• Germany Gfk Consumer Confidence Survey(Dec) -1.6 1
• Germany Gross Domestic Product (QoQ)(Q3) 1.70% 2%
• Japan Leading Economic Index(Sep) 100.9 101.3
Friday,
November 26, 2021
• Japan Tokyo Consumer Price Index (YoY)(Nov) 0.50% 0.10%
• Germany Import Price Index (YoY)(Oct) 21.70% 17.70%
• Eurozone M3 Money Supply (YoY)(Oct) 7.70% 7.50%
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17
The Week Ahead
29
th
November to 3
rd
December
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18
Day Event
Monday,
November 29, 2021
• Germany Harmonized Index of Consumer Prices (YoY)(Nov) PREL
• U.S. Pending Home Sales (MoM)(Oct)
• Eurozone Industrial Confidence (Nov)
• Eurozone Consumer Confidence (Nov)
Tuesday,
November 30, 2021
• China Non-Manufacturing PMI(Nov)
• Eurozone Consumer Price Index (YoY)(Nov) PREL
• U.S. Consumer Confidence (Nov)
Wednesday,
December 1, 2021
• Germany Retail Sales (YoY)(Oct)
• U.S. ADP Employment Change (Nov)
• U.S. ISM Manufacturing PMI(Nov)
• China Caixin Manufacturing PMI(Nov)
Thursday,
December 2, 2021
• Eurozone Unemployment Rate (Oct)
• Japan Consumer Confidence Index (Nov)
Friday,
December 3, 2021
• Eurozone Retail Sales (YoY)(Oct)
• U.S. Nonfarm Payrolls(Nov)
• U.S. ISM Services PMI(Nov)
• China Caixin Services PMI(Nov)
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
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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