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NEWS U CAN USE
October 15, 2021
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The Week that was…
11
th
October to 15
th
October
2
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Indian Economy
• The consumer price index-based inflation touched five-month low of 4.35% in Sep 2021
slower than 5.30% in the prior month due to sharp slowdown in food prices. Consumer
Food Price Index (CFPI) rose 0.68% slower than 3.11% in the previous month and 10.68% a
year ago.
• The index of industrial production (IIP) rose 11.9% YoY in Aug 2021 compared with
contraction of 7.1% in Aug 2020. Manufacturing output grew 9.7% in Aug 2021 as
compared with a contraction of 7.6% last year.
• Government data showed that wholesale price index (WPI) based inflation slowed to
10.66% on a yearly basis in Sep 2021 from 11.39% in Aug 2021 and 11.57% in Jul 2021.
WPI Based rate of inflation in the same period of the previous year stood at 1.32%. The
growth of WPI Food index also slowed to 1.14% on a yearly basis in Sep 2021 from 3.43%
in Aug 2021 and 4.52% in Jul 2021.
• Government data showed that India’s merchandise trade deficit widened to $22.59 billion
in Sep 2021 from $2.96 billion in Sep 2020. The trade deficit thus widened by 663.48%.
Merchandise exports grew 22.63% YoY to $33.79 billion in Sep 2021 from $27.56 billion in
Sep 2020. Merchandise imports grew 84.77% YoY to $56.39 billion in Sep 2021 from
$30.52 billion in Sep 2020. Oil imports in Sep 2021 stood at $17.44 billion which was higher
by 199.27% in dollar terms compared to $5.83 billion Sep 2020. It needs to be noted that
as per the data from World Bank, the global Brent price ($/bbl) grew by 81.55% in Sep
2021 vis-à-vis Sep 2020.
3
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4
Domestic Equity Market Indices
Indices 14-Oct-21 1 Week Return YTD Return
S&P BSE Sensex
61,305.95 2.08% 28.39%
Nifty 50
18,338.55 2.48% 31.16%
S&P BSE Mid-Cap
26,699.69 3.34% 48.82%
S&P BSE Small-Cap
29,893.06 1.92% 65.17%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
11-Oct-21 1118 963 1.16
12-Oct-21 1034 1019 1.01
13-Oct-21 1062 987 1.08
14-Oct-21 1017 1044 0.97
Source: NSE
• Indian equity markets ended the
holiday truncated week on a positive
note with benchmark indices scaling
new closing highs.
• Market sentiments were uplifted by the
improved macroeconomic data. Strong
quarterly earning numbers for Sep
2021 from some of the market movers
also boosted the market sentiment.
• Global cues too contributed to the risk
appetite of the investors. The U.S.
Labor Department said that first-time
claims for U.S. unemployment benefits
dropped below 300,000 for the first
time in well over a year last week.
Meanwhile, U.S. President signed
legislation to temporarily raise the
government's debt limit to $28.9
trillion, pushing back the deadline for
debt default to Dec from mid-Oct.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
31.84 28.02 35.37 46.86
P/B
3.92 4.59 3.57 3.63
Dividend Yield
0.88 1.12 0.83 0.63
Source: BSE, NSE Va
lue as on Oct 14, 2021
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
26,436.04 6.33% 14.00%
S&P BSE Bankex
44,759.59 4.08% 6.39%
S&P BSE CD
46,272.59 5.31% 12.29%
S&P BSE CG
27,255.85 3.51% 4.21%
S&P BSE FMCG
15,230.14 3.48% 1.96%
S&P BSE HC
26,442.42 0.93% -1.63%
S&P BSE IT
35,045.09 -1.98% -0.87%
S&P BSE Metal
21,492.95 5.79% 1.68%
S&P BSE Oil & Gas
19,216.73 1.30% 8.37%
Source: Refinitiv *Value as on Oct 14, 2021
• On the BSE sectoral front, majority of the
indices closed in the green. S&P BSE Power
was the top gainer, up 6.82%, followed by S&P
BSE Auto and S&P BSE Metal, which rose
6.33% and 5.79%, respectively. Power stocks
are in focus due to the increasing demand
which has picked up in the second half of this
fiscal with the easing of lockdown measures.
Auto stocks got a fillip from the news of TPG
Capital funding an EV venture of Tata Motors.
Meanwhile, S&P BSE IT and S&P BSE Teck were
the only losers, down 1.98% and 1.94%,
respectively.
Indian Derivatives Market Review
• Nifty Oct 2021 Futures stood at 18,355.00, a premium of 16.45 points above the spot
closing of 18,338.55. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 278.72 lakh crore as against Rs. 311.67 lakh crore for the week to Oct 8.
• The Put-Call ratio stood at 0.87 compared to previous week’s close at 0.82.
• The Nifty Put-Call ratio stood at 1.44 compared with the previous week’s close of 1.30.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
3.20 3.21 3.18 3.20
91 Day T-Bill
3.41 3.46 3.29 3.34
05.22% 2025, (5 Yr GOI)
5.30 5.34 5.21 5.56
06.10% 2031, (10 Yr GOI)
6.33 6.32 6.16 --
Source: Refinitiv Value as on Oct 14, 2021
• Bond yields fell initially after consumer
price index-based inflation fell for the
fourth consecutive month in Sep 2021.
However, gains were neutralized as bond
yields inched up following increase in
global crude oil prices which dampened
market sentiments. Increase in global
crude oil prices fueled concerns over rise
in domestic inflationary pressures as
India imports more than 85% of its oil
requirements.
• Yield on the 10-year benchmark paper
(6.10% GS 2031) rose marginally by 1 bps
to close at 6.33% as compared to the
previous week’s close of 6.32% after
trading in a range of 6.31% to 6.35%.
• Data from RBI showed that India's
foreign exchange reserves rose to
$639.52 billion as of Oct 8, 2021 from
$637.48 billion a week earlier.
Domestic Debt Market
6.30
6.33
6.36
11-Oct 12-Oct 13-Oct 14-Oct
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 4.11 4.38 27
3 Year 5.02 5.40 38
5 Year 5.86 6.23 37
10 Year 6.43 7.22 79
Source: Refinitiv Value as on
Oct 14, 2021
• Yields on gilt securities fell across most of the
maturities by up to 5 bps barring 2, 10 and 11-year
paper which increased by up to 25 bps while the
same on 1, 14 and 30-year paper closed steady.
• Corporate bond yields fell across most of the
maturities in the range of 3 bps to 7 bps barring 2, 3
and 15-year paper which increased by up to 8 bps
while the same on 4-year paper closed steady.
• Difference in spread between AAA corporate bond
and gilt contracted across most of the maturities in
the range of 2 bps to 24 bps barring 3, 4 and 15-year
paper which increased in the range of 5 bps to 10
bps while the same on 5-year paper closed steady.
Domestic Debt Market (Spread Analysis)
-7
0
7
2.70
5.30
7.90
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 14-Oct-21 08-Oct-21
Yield in %
Change in bps
Source: Refinitiv
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8
• Capital market regulator Securities and Exchange Board of India (SEBI) introduced an online
mechanism for obtaining SCORES (SEBI Complaints Redress System) credentials for all
companies intending to list their securities on stock exchanges. The move is a part of SEBI’s
green initiative and to streamline the redressal of investor grievances against companies
before listing.
• SEBI came out with revised formats for limited review and audit reports to be submitted by
entities that have listed their non-convertible securities. The revised formats are applicable
for banks and non- banking financial companies. The changes will come into force with
immediate effect.
• Government permitted power producers to accelerate coal imports to use up to 10% of
blends with the domestic grade to meet increased power demand, which could push up
already high global prices. India is facing large-scale outages as several power plants have
low coal inventories amid a sharp spike in global energy prices.
• The government announced a net subsidy of Rs. 28,655 crore on phosphatic and potassic
fertilisers for the Oct to Mar period of FY22 to ensure that farmers get nutrients at
affordable prices during the rabi sowing season.
• The central government has lowered the import duty on crude and refined palm oil,
soybean oil and sunflower oil between 16.5 % to 19.25% with effect from Oct 14 upto Mar
31, 2022 amid persistently high cooking oil prices since more than a year.
Regulatory Updates in India
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9
• The government scrapped basic customs duty as well as slashed agri cess on crude
varieties of palm, soyabean and sunflower oil till Mar 2022. This moved is aimed to help
ease prices and increase domestic availability in the festive season.
• Prime Minister launched the PM GatiShakti National Master Plan for multi-modal
connectivity in a bid to bring India's infrastructure development on a centralised digital
platform. It will comprise all existing and planned infrastructure initiatives (from roads and
railways to telecom networks and gas pipelines) of as many as 16 central ministries and
departments.
• GST (Goods and Services Tax) Network has blocked Rs. 14,000 crore worth of input tax
credit of 66,000 businesses registered under GST. The amount is only 0.38%
(approximately) of average ITC utilised by all taxpayers in a financial year.
Regulatory Updates in India (contd..)
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• U.S. consumer prices accelerated to 0.4% in Sep 2021 from 0.3% increase in the previous
month. The stronger than expected growth partially reflected higher prices for food and
energy that surged 0.9% and 1.3%, respectively. Annually, consumer prices accelerated to
5.4% in Sep 2021 from 5.3% in Aug 2021.
• Data from the U.S. Labour Department showed that initial jobless claims in U.S. for the
week ended Oct 9, 2021 fell by 36,000 to 293,000 from the previous week's revised level
of 329,000 (326,000 originally reported for the previous week).
• Data from the University of Michigan showed that the U.S. consumer sentiment index
slipped to 71.4 in Oct 2021 from 72.8 in Sep 2021.
• Data from the U.S. Commerce Department showed that retail sales in U.S. grew 0.7% in
Sep 2021 after rising by an upwardly revised 0.9% in Aug 2021 (0.7% increase originally
reported for the previous month).
• Survey results from the ZEW - Leibniz Centre for European Economic Research showed, the
ZEW Indicator of Economic Sentiment in Germany fell to 22.3 in Oct 2021 from 26.5 in Sep
2021. German economic confidence was the lowest since Mar 2020 and deteriorated for
the fifth consecutive month amid supply bottleneck and higher input prices.
• China’s trade surplus expanded to $66.7 billion in Sep 2021 from $58.3 billion in the
previous month due to unexpected acceleration in exports growth despite power
shortages and supply bottlenecks weighing on production. Exports surged 28.1% YoY from
25.6% in Aug 2021. Imports slowed to 17.6% from 33.1% in the prior month.
10
Global News/Economy
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11
Global Indices
Indices
15-Oct-21
1-Week
Return
YTD
Return
Russell 3000 2,289.66 2.56% 17.26%
Nasdaq 100 15,146.92 2.20% 17.52%
FTSE 100 7,234.03 1.95% 11.97%
DAX Index 15,587.36 2.51% 13.62%
Nikkei Average 29,068.63 3.64% 5.92%
Straits Times 3,173.91 1.96% 11.61%
Source: Refinitiv Value as on Oct 15, 2021
U.S.
• U.S. markets ended the week in the
green with the latest batch of upbeat
earnings news contributing to the
strength on Wall Street. Meanwhile, U.S.
President signed legislation to
temporarily raise the government's
debt limit to $28.9 trillion, pushing back
the deadline for debt default to Dec
from mid-Oct which also added to the
gains.
Europe
• European markets settled in the positive territory as optimism about earnings helped
offset concerns over rise in inflation and higher interest rates. U.S. President’s recent
endeavor to push back the deadline for debt default to Dec from mid-Oct also
contributed to the upside.
Asia
• Asian markets too rose during the week under review as market sentiments were boosted
after China's exports growth accelerated in Sep 2021 despite power shortages and supply
bottlenecks.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury fell 4
bps to close at 1.57%, from the previous
week’s close of 1.61%.
• U.S. Treasury prices rose initially as this
month's auction of $38 billion worth of
ten-year notes witnessed above average
demand.
• However, gains were capped as market
participants were of the view that the U.S.
Federal Reserve will announce a tapering
of its massive bond-buying program next
month as inflation in the region continued
to climb.
• U.S. Treasury prices fell further towards
the end of the week after retail sales in
U.S. increased in Sep 2021 which reduced
the safe-haven appeal of the U.S.
Treasuries to some extent.
Global Debt (U.S.)
1.50
1.52
1.54
1.56
1.58
12-Oct 13-Oct 14-Oct 15-Oct
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
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13
Performance of various commodities
Commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel)
85.20 83.37
Gold ($/Oz)
1,767.26 1,756.67
Gold (Rs/10 gm)**
47,899 46,806
Silver ($/Oz)
23.28 22.66
Silver (Rs/Kg)**
62,957 60,927
Source: Refinitiv *Value as on Oct 15, 2021; **Value as on Oct 14, 2021
Gold
• Gold prices went up as a retreat in the U.S.
dollar and Treasury yields lifted the metal’s
appeal despite a looming U.S. Federal
Reserve taper. Additionally, worries over
inflation and debt crisis on China
Evergrande Group's supported the safe
haven appeal of the bullion.
Brent Crude
• Brent Crude prices surpassed the $85 per
barrel level boosted by forecasts of a
supply deficit in the next few months as
the easing of coronavirus-related travel
restrictions spurs demand. Demand has
also picked up with the recovery from the
COVID-19 pandemic.
Baltic Dry Index
• The index fell on WoW basis due to
sluggish capesize and panamax activities.
Commodities Market
8.50
9.00
9.50
10.00
10.50
11.00
11.50
15-Sep-21 30-Sep-21 15-Oct-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
2.75%
2.20%
0.60%
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
75.30 74.99
Pound Sterling
103.02 102.00
EURO
87.32 86.60
100 Yen
66.33 67.01
Source: Refinitiv Figures in INR , *
Value as on Oct 14, 2021
Rupee
• The Indian rupee in the spot trade fell against
the greenback following increase in global
crude oil prices.
Euro
• Euro rose against the greenback as better than
expected corporate earning numbers for the
quarter ended Sep 2021 in U.S. boosted the
investor risk sentiment.
Pound
• Pound rose against the U.S. dollar on hopes
that a post-Brexit trade war with the European
Union will be avoided and on growing possibility
that the Bank of England will raise interest rates
this year.
Yen
• Yen fell against the U.S. dollar on growing
possibility that the U.S. Federal Reserve will
announce a tapering of its massive bond-buying
program next month.
Currencies Markets
9.80
9.90
10.00
10.10
10.20
10.30
15-Sep-21 30-Sep-21 15-Oct-21
USD GBP Euro JPY
Source: Refinitiv
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
-1.01%
0.41%
1.00%
0.84%
14-Oct-21
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15
The Week that was…
11
th
October to 15
th
October
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16
The Week that was (October 11 – October 15)
Date Events Present Value Previous Value
Monday,
October 11, 2021
• Japan Machine Tool Orders YoY (Sep) 71.90% 85.20%
Tuesday,
October 12, 2021
• India Industrial Production YoY (Aug) 11.90% 11.50%
• India Consumer Price Index Inflation Rate YoY (Sep) 4.35% 5.30%
• U.K. Employment Change (Jul) 235K 183K
• Germany ZEW Economic Sentiment Index (Oct) 22.30 26.50
• Euro Area ZEW Economic Sentiment Index (Oct) 21.00 31.10
Wednesday,
October 13, 2021
• Japan Machinery Orders YoY (Aug) 17.00% 11.10%
• Germany Inflation Rate YoY Final (Sep) 4.10% 3.90%
• U.K. GDP 3-Month Avg (Aug) 2.90% 4.20%
• U.K. GDP GDP YoY (Aug) 6.90% 8.80%
• U.S. Core Inflation Rate YoY (Sep) 4.00% 4.00%
Thursday
October 14, 2021
• India WPI Inflation YoY (Sep) 10.66% 11.39%
• India Balance of Trade Final (Sep) $-22.6B $-13.81B
• China Inflation Rate YoY (Sep) 0.70% 0.8%
• U.S. Initial Jobless Claims (09/Oct) 293K 329K
Friday,
October 15, 2021
• India Passenger Vehicles Sales MoM (Sep) -31.10% -12.20%
• U.S. Retail Sales MoM (Sep) 0.70% 0.90%
• U.S. Michigan Consumer Sentiment Prel (Oct) 71.40 72.80
• Euro Area Balance of Trade (Aug) €4.8B €20.7B
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17
The Week Ahead
18
th
October to 22
nd
October
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18
Day Event
Monday,
October 18, 2021
• China GDP Growth Rate YoY (Q3)
• China Retail Sales YoY (Sep)
• China Industrial Production YoY (Sep)
Tuesday,
October 19, 2021
• U.S. Housing Starts (MoM)(Sep)
• U.S. Building Permits (MoM)(Sep)
• Euro Area Construction Output YoY (Aug)
Wednesday,
October 20, 2021
• Japan Exports YoY (Sep)
• Japan Imports YoY (Sep)
• U.K. Core Inflation Rate YoY (Sep)
• Euro Area Core Inflation Rate YoY Final (Sep)
Thursday,
October 21, 2021
• U.S. Initial Jobless Claims (16/Oct)
• U.S. Existing Home Sales MoM (Sep)
• U.K. Public Sector Net Borrowing (Sep)
Friday,
October 22, 2021
• U.S. Markit Manufacturing PMI Flash (Oct)
• U.K. Markit/CIPS Manufacturing PMI Flash (Oct)
• Euro Area Markit Manufacturing PMI Flash (Oct)
• Germany Markit Manufacturing PMI Flash (Oct)
• Japan Jibun Bank Manufacturing PMI Flash (Oct)
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
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