Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
NEWS U CAN USE
Oct 11, 2024
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
07
th
Oct to 11
th
Oct
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• The Monetary Policy Committee (MPC) in its fourth bi-monthly monetary policy review of
FY25 kept key policy repo rate unchanged at 6.50% with immediate effect for the tenth
consecutive time. The standing deposit facility (SDF) rate also remained unchanged at
6.25%. Five out of six members voted to keep the policy repo rate unchanged. The MPC
decided to change the monetary policy stance from withdrawal of accommodation to
neutral and remain unambiguously focused on a durable alignment of inflation with the
target, while supporting growth. All the members voted in favour of the same.
• The RBI has projected CPI inflation for 2024-25 at 4.5% with Q2 at 4.1%, Q3 at 4.8%, Q4 at
4.2% and Q1 of 2025-26 at 4.3%, with the risks are evenly balanced.
• The RBI has projected real GDP growth for 2024-25 at 7.2% with Q2 at 7.0%, Q3 at 7.4%,
Q4 at 7.4% and Q1 of 2025-26 at 7.3%, with the risks are evenly balanced.
• Index of Industrial production (IIP) contracted 0.1% YoY in Aug 2024, as compared to a
4.7% rise in Jul 2024. Production in mining and electricity decreased by 4.3% and 3.7%,
respectively, while manufacturing witnessed a growth of 1% in Aug 2024.
• According to the Solvent Extractors' Association of India, India's palm oil imports in Sep
2024 dropped over 33% from Aug 2024, totaling 527,314 metric tons. Soyoil imports also
fell by 15.4% to 384,382 tons, while sunflower oil imports decreased by 46.2% to 152,803
tons, in the same period.
3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4
Domestic Equity Market Indices
Indices
11-Oct-24 1 Week Return YTD Return
BSE Sensex
81,381.36 -0.38% 12.65%
Nifty 50
24,964.25 -0.20% 14.88%
BSE Mid
-Cap 48,436.86 1.11% 31.48%
BSE Small
-Cap 56,600.09 1.17% 32.63%
Source: Refinitiv
Values as on Oct 11, 2024
• Domestic equity markets fell for the
second consecutive week as key
benchmark indices BSE Sensex and
Nifty 50 fell 0.38% and 0.20%,
respectively. However, the mid-cap
segment and the small-cap segment
closed the week in green.
• Domestic equity markets fell amid
selling in heavyweight large-cap stocks
as investors turned cautious ahead of
Q2 earnings season of FY25. Losses
were extended following a rise in
global crude oil prices amid escalating
tensions in the Middle East due to the
Israel-Iran conflict. Furthermore,
persistent FII outflows kept the market
under pressure. However, sentiment
was boosted after the RBI in its latest
monetary policy meeting shifted its
stance from ‘withdrawal of
accommodation’ to ‘neutral’.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
23.88 23.47 42.40 34.05
P/B
4.12 3.74 4.97 3.88
Dividend Yield
1.12 1.20 0.69 0.57
Source: NSE, BSE
Values as on Oct 11, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
07-Oct-24 334 2,502 0.13
08-Oct-24 2,178 594 3.67
09-Oct-24 1,831 925 1.98
10-Oct-24 1,484 1,257 1.18
11-Oct-24 1,420 1,322 1.07
Source: NSE
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
BSE Auto
59,701.22 1.98% 4.67%
BSE Bankex
58,263.75 -0.22% 0.71%
BSE CD
65,606.03 -0.38% 0.81%
BSE CG
71,579.87 1.82% 0.20%
BSE FMCG
22,613.72 -1.73% -4.16%
BSE HC
44,445.31 2.02% 1.46%
BSE IT
42,827.08 1.10% -0.65%
BSE Metal
33,647.77 -1.84% 9.55%
BSE Oil & Gas
30,158.46 -1.15% -0.67%
Source:BSE
Values as on Oct 11, 2024
• On the BSE sectoral front, BSE Healthcare rose
2.02% following the recovery in the U.S.
economy which remained one of the largest
markets for Indian pharma companies.
• BSE Metal plunged 1.84% as China fails to
introduce new stimulus measures. Investors
were expecting China to announce significant
fiscal support, including trillions of yuan in bond
issuances and initiatives to stimulate
consumption. However, the Chinese
government instead unveiled a modest
investment plan of CNY 100 billion for 2025.
Indian Derivatives Market Review
• Nifty Oct 2024 Futures stood at 25,049.55, a premium of 85.30 points above the spot
closing of 24,964.25.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
2,010.48 lakh crore as against Rs. 1,686.37 lakh crore for the week to Oct 04.
• The Put-Call ratio stood at 0.93 compared with the previous week’s close of 0.88.
• The Nifty Put-Call ratio stood at 0.84 compared with the previous week’s close of 0.69.
Indian Equity Market (contd.)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
6.70
6.75
6.80
6.85
6.90
7-Oct 8-Oct 9-Oct 10-Oct 11-Oct
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
6.43 6.45 6.54 6.55
91 Day T-Bill
6.46 6.48 6.63 6.85
07.06% 2028, (5 Yr GOI)
6.69 6.71 6.73 7.09
07.10% 2034, (10 Yr GOI)
6.79 6.83 6.83 7.08
Source: Refinitiv Values as on Oct 11, 2024
• Bond yields fell following the RBI’s
decision to shift its stance from
withdrawal of accommodation to neutral,
in its monetary policy meeting concluded
on Oct 9, 2024. Gains were extended
following the announcement of inclusion
of India's sovereign bonds in the FTSE
Russell Emerging Market Government
Bond Index in Sep 2025 by FTSE Russell.
• However, gains were restricted tracking
an increase in U.S. Treasury yields as the
likelihood of a significant rate cut by the
U.S. Federal Reserve in Nov 2024
diminished sharply after a robust U.S.
employment report of Sep 2024.
• Yield on the 10-year benchmark paper
(7.10% GS 2034) fell by 4 bps to close at
6.79% from the previous week’s close of
6.83%.
Domestic Debt Market
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
-6
-4
-2
0
2
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 11-Oct-24 04-Oct-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 6.67 7.51 84
3 Year 6.76 7.36 60
5 Year 6.81 7.36 55
10 Year 6.90 7.42 52
Source: Refinitiv
Values as on Oct 11, 2024
• Yields on gilt fell up to 5 bps across the maturities,
barring 2 year paper that rose by 1 bps, while 12, 14
& 19 year papers were unchanged.
• Corporate bond yields fell up to 6 bps across the
curve, barring 1 year paper that increased by 3 bps.
• Difference in spread between AAA corporate bond
and gilt contracted up to 4 bps across the segments,
barring 1, 7, 10 & 15 year papers that expanded up
to 5 bps, while 3 year paper remained steady.
Domestic Debt Market (Spread Analysis)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• The Reserve Bank of India has entered into a Currency Swap Agreement with the Maldives
Monetary Authority. Under this agreement, the Maldives is set to receive a total of up to
USD 400 million and Rs 30 billion. The duration of the agreement extends until June 18,
2027. This initiative aims to assist the Maldives in managing its foreign exchange reserves
effectively.
• The RBI has raised the transaction limits for UPI123Pay and UPI Lite to encourage more use
of UPI. The limit for UPI123Pay has gone up from Rs. 5000 to Rs. 10,000. For UPI Lite, the
wallet limit has been increased from Rs. 2000 to Rs. 5000, and the limit for each transaction
is now Rs. 1000.
• The RBI has directed banks, NBFCs, and other organizations to utilize all relevant
information sources for risk assessments. This initiative is intended to reduce the risks
associated with money laundering, terrorist financing, and the financing of proliferation. It
emphasizes the necessity of conducting risk assessments at the enterprise level and
recommends against a fragmented approach to guarantee efficient risk management.
• The Union Government has announced the disbursement of Rs. 1,78,173 crore to State
Governments as tax devolution. This amount is twice the normal monthly allocation of Rs.
89,086.50 crore. It includes one advance payment along with the regular payment
scheduled for Oct 2024.
Regulatory Updates in India
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9
• According to a government notification, foreign airlines in India are now exempt from GST
for services provided by their head offices to branch offices. Academic institutions are also
getting GST relief for research grants. The new GST rules, starting from Oct 10, 2024, offer
tax relief and penalty waivers to promote voluntary compliance and resolve disputes.
• The RBI directed banks to review and modify their payment systems to ensure accessibility
for people with disabilities. Participants in payment systems must comply with accessibility
standards and report their plans to RBI within a month. Changes are intended to improve
accessibility without compromising safety.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• The minutes from the Federal Open Market Committee (FOMC) meeting held on 17th and
18th Sep 2024 indicated that significant majority of U.S. Federal Reserve officials
expressed support for a half-point reduction in interest rates as a preliminary step towards
a more accommodative monetary policy. However, there seemed to be a broader
consensus that this initial action would not bind the Federal Reserve to a specific trajectory
for future rate cuts. Supporters of the half-point reduction noted that this adjustment in
monetary policy would help align it more closely with the latest indicators of inflation and
the labor market. During the 17th and 18th Sep, 2024 meeting, the U.S. Federal Reserve
reduced the benchmark policy rate to a range of 4.75% to 5.00%, down from the previous
range of 5.25% to 5.50%, which had been in effect since Jul 2023.
• According to the Labor Department, U.S. producer price index for final demand came in
flat in Sep 2024 after rising by 0.2% in Aug 2024. Economists had expected producer prices
to inch up by 0.1%. The producer price index for final demand came in flat in Sep 2024
after rising by 0.2% in Aug 2024. Economists had expected producer prices to inch up by
0.1%.
• According to the Office for National Statistics, U.K. real economy grew 0.2% in Aug 2024
after showing nil growth in Jul 2024 and Jun 2024. In the three months to Aug 2024, real
GDP advanced 0.2% compared to the three months to May 2024 and gained 0.8% from the
same period last year.
• According to the reports, Japan’s producer prices were unchanged in Sep 2024. On a yearly
basis, producer prices rose 2.8% in Sep 2024.
10
Global News/Economy
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
11
Global Indices
Indices
11-Oct-24
1-Week
Return
YTD
Return
Russell 3000 2,999.84 1.40% 24.85%
Nasdaq 100 20,271.97 1.18% 20.48%
FTSE 100 8,253.65 -0.33% 6.73%
DAX Index 19,373.83 1.32% 15.65%
Nikkei Average 39,605.80 2.51% 18.35%
Straits Times 3,573.76 -0.43% 10.29%
Source: Refinitiv Value as on Oct 11, 2024
U.S.
• U.S. equity markets rose as a favorable
response was observed regarding a Labor
Department report indicated that
producer prices in the U.S. remained
unexpectedly stable in Sep 2024. The
information bolstered confidence that
the U.S. Federal Reserve will persist in
reducing interest rates in the upcoming
months.
Europe
• European equity markets mostly rose following the release of producer price inflation data
by the U.S. Labor Department, which was somewhat milder than anticipated, there is a
growing sense of confidence that the U.S. Federal Reserve will persist in its efforts to
reduce interest rates. However, gains were limited following the release of U.S. consumer
price inflation data in Sep 2024 that exceeded expectations
Asia
• Asian equity markets closed on a mixed note. The Japanese market rose as optimism
regarding robust earnings, following the announcement from a Fast-Retailing company,
which issued an upbeat net profit forecast for the current business year.
Global Equity Markets
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4.00
4.02
4.04
4.06
4.08
4.10
7-Oct 8-Oct 9-Oct 10-Oct 11-Oct
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury rose
by 9 bps to close at 4.07% from the
previous week’s close of 3.98%.
• U.S. Treasury prices fell as investors
adjusted their expectations regarding a
less aggressive monetary easing cycle
from the U.S. Federal Reserve.
• However, losses were restricted
following a consistent reading of
producer prices in Sep 2024 that has
shown a downward trend, along with a
consumer sentiment report that
supports the likelihood of an interest
rate reduction by the U.S. Federal
Reserve during next month's monetary
policy meeting.
Global Debt (U.S.)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9.00
9.50
10.00
10.50
11.00
11.50
11-Sep-24 27-Sep-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)
81.31 79.95
Gold ($/Oz)
2,656.00 2,652.25
Gold (Rs/10 gm)
75,319 75,694
Silver ($/Oz)
31.53 32.17
Silver (Rs/Kg)
89,807 92,053
Source: Refinitiv *Value as on Oct 11, 2024
Gold
• Gold prices rose slightly after data showed
a surge in the U.S. initial jobless claims last
week, raising apprehensions about the
health of the U.S. labor market. Further,
prices rose as investors expected an
aggressive rate cut by the U.S. Fed
following the latest U.S. economic data.
Brent Crude
• Brent crude oil prices rose amid lingering
Middle East tensions and expectations of
higher demand for fuel in response to
Hurricane Milton. Further, prices rose as
investors continued to digest Iran's ballistic
missile attack against Israel earlier this
month.
Baltic Dry Index
• The index fell over the week due to
sluggish capesize and panamax activities.
Commodities Market
11-Oct-24
1.70%
0.14%
-2%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9.20
9.40
9.60
9.80
10.00
10.20
10.40
11-Sep-24 27-Sep-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
84.06 83.97
Pound Sterling
109.69 110.29
EURO
91.93 92.62
100 Yen
56.48 57.48
Source: Refinitiv Figures in INR , *Value as on Oct
11, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar on concerns about the recent
spike in oil prices and weakness in other Asian
currencies.
Euro
• The euro fell against the greenback after U.S.
consumer prices sequentially rose more than
expected in Sep 2024.
Pound
• Pound fell against the U.S. dollar on concerns
regarding a worsening conflict in the Middle
East have dampened risk appetite and
increased the value of safe-haven currencies.
Y
en
• Yen fell against the U.S. dollar on concerns
about an escalating conflict in the Middle East
have reduced risk appetite and heightened the
value of safe-haven currencies.
Currencies Markets
11-Oct-24
0.11%
-1.74%
-0.74%
-0.54%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
07
th
Oct to 11
th
Oct
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
16
The Week that was (Oct 07 – Oct 11)
Date Events
Present
Value
Previous
Value
Monday,
October 07, 2024
• Germany Factory Orders (MoM) (Aug) -5.80% 3.90%
• Eurozone Retail Sales (YoY) (Aug) 0.80% -0.10%
• Japan Leading Economic Index (Aug) Prel 106.7 109.3
Tuesday,
October 08, 2024
• Japan Labor Cash Earnings (YoY) (Aug) 3.00% 3.40%
• Germany Industrial Production (YoY) (Aug) -2.70% -5.60%
• U.S. Goods Trade Balance (Aug) $-94.9B $-94.3B
Wednesday,
October 09, 2024
• Reserve Bank of India Interest Rate Decision 6.50% 6.50%
• U.S. Wholesale Inventories (Aug) 0.10% 0.20%
Thursday,
October 10, 2024
• U.S. Consumer Price Index (MoM) (Sep) 0.20% 0.20%
• U.S. Initial Jobless Claims (Oct 4) 258K 225K
Friday,
October 11, 2024
• India Industrial Production (YoY) (Aug) -0.10% 4.70%
• India Manufacturing Production YoY AUG 1.00% 4.40%
• Germany Harmonized Index of Consumer Prices (YoY) (Sep) 1.80% 1.80%
• U.K. Industrial Production (MoM) (Aug) 0.50% -0.70%
• U.K. Manufacturing Production (MoM) (Aug) 1.10% -1.20%
• U.K. Gross Domestic Product (MoM) (Aug) 0.20% 0.00%
• U.S. Producer Price Index (MoM) (Sep) 0.00% 0.20%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
14
th
Oct to 18
th
Oct
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
The Week Ahead
Day Event
Monday,
Oct 14, 2024
•India WPI Inflation (YoY) (Sep)
•India Inflation Rate (YoY) (Sep)
•China Exports (YoY) (Sep)
Tuesday,
Oct 15, 2024
•India Balance of Trade (Sep)
•Germany Wholesale Price Index (YoY) (Sep)
•U.K. Claimant Count Change (Sep)
•Eurozone Industrial Production (MoM) (Aug)
Wednesday,
Oct 16, 2024
•U.K. Consumer Price Index (YoY) (Sep)
•U.K. Retail Price Index (MoM) (Sep)
•U.S. Export Price Index (YoY) (Sep)
Thursday,
Oct 17, 2024
•Eurozone Harmonized Index of Consumer Prices (MoM) (Sep)
•European Central Bank Main Refinancing Operations Rate
•U.S. Initial Jobless Claims (Oct 11)
•U.S. Retail Sales (MoM) (Sep)
•U.S. Industrial Production (MoM) (Sep)
Friday,
Oct 18, 2024
•Japan National Consumer Price Index (YoY) (Sep)
•China Gross Domestic Product (QoQ) (Q3)
•China Industrial Production (YoY) (Sep)
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
professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor(s), the Investment Manager, the
Trustee, their respective directors, employees, associates or representatives shall be liable in any way for any direct, indirect, special, incidental,
consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
All information contained in this document has been obtained by ICRA Analytics Limited from sources believed by it to be accurate and reliable.
Although reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of
any kind, and ICRA Analytics Limited or its affiliates or group companies and its respective directors, officers, or employees in particular, makes no
representation or warranty, express or implied, as to the accuracy, suitability, reliability, timelines or completeness of any such information. All
information contained herein must be construed solely as statements of opinion, and ICRA Analytics Limited, or its affiliates or group companies and
its respective directors, officers, or employees shall not be liable for any losses or injury, liability or damage of any kind incurred from and arising out
of any use of this document or its contents in any manner, whatsoever. Opinions expressed in this document are not the opinions of our holding
company, ICRA Limited (ICRA), and should not be construed as any indication of credit rating or grading of ICRA for any instruments that have been
issued or are to be issued by any entity.
19
Disclaimer
Thank you for
your time.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Thank you for
your time.
