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NEWS U CAN USE
Oct 18, 2024
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The Week that was…
14
th
Oct to 18
th
Oct
2
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Indian Economy
• The consumer price index-based inflation surged to 5.49% YoY in Sep 2024 compared to
3.65% in Aug 2024. It was the highest inflation rate since the start of the year,
overshooting the RBI’s target of 4% after dropping below the threshold in the first two
months of Q2FY25. The increase in inflation is attributed to the ongoing rise in vegetable
prices.
• India’s wholesale price index (WPI) based inflation increased by 1.84% YoY in Sep 2024 as
compared to 1.31% in Aug 2024. The positive rate of inflation in Sep 2024 was primarily
due to increase in prices of food articles, food products, other manufacturing,
manufacture of motor vehicles, trailers & semi-trailers, manufacture of machinery &
equipment, etc.
• According to the data compiled by the Solvent Extractors Association of India, India's oil
meal exports fell by 35% in Sep 2024 to 213,744 tonnes. Exports of soybean meal
increased because of higher demand from the UAE, Iran, and France, but exports of
rapeseed and castor seed meals went down.
• India’s merchandise trade deficit narrowed sequentially to $20.78 billion in Sep 2024
compared to $29.65 billion in Aug 2024, however, the deficit widened on an annual basis
compared to $20.08 billion in Sep 2023. Exports rose marginally by 0.49% YoY to $34.58
billion in Sep 2024, and imports increased by 1.60% YoY to $55.36 billion during the same
period.
3
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4
Domestic Equity Market Indices
Indices
18-Oct-24 1 Week Return YTD Return
BSE Sensex
81,224.75 -0.19% 12.44%
Nifty 50
24,854.05 -0.44% 14.37%
BSE Mid
-Cap 47,946.33 -1.01% 30.15%
BSE Small
-Cap 56,500.05 -0.18% 32.40%
Source: Refinitiv
Values as on Oct 18, 2024
• Domestic equity markets fell for the
third consecutive week as key
benchmark indices BSE Sensex and
Nifty 50 fell 0.19% and 0.44%,
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 after
government data showed that India’s
CPI inflation rose to a nine-month high
of 5.49% in Sep 2024 on the back of
rising food prices, which dampened
hopes of a rate cut by the RBI. Foreign
capital outflow remained another key
factor weighing on market sentiment.
However, losses were restricted
following a drop in global crude oil
prices on the back of a weaker demand
forecast from International Energy
Agency.
Ratios
BSE Sensex
Nifty 50 BSE Mid Cap
BSE Small
Cap
P/E
23.83 23.38 41.63 33.94
P/B
4.11 3.72 4.87 3.90
Dividend Yield
1.13 1.22 0.69 0.57
Source: NSE, BSE
Values as on Oct 18, 2024
Indian Equity Market
NSE Advance/Decline Ratio
Date
Advances Declines Advance/Decline Ratio
14-Oct-24 1,375 1,404 0.98
15-Oct-24 1,322 1,438 0.92
16-Oct-24 1,378 1,390 0.99
17-Oct-24 671 2,065 0.32
18-Oct-24 1,303 1,443 0.90
Source: NSE
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5
Sectoral Indices
Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
BSE Auto
57,109.05 -4.34% -1.92%
BSE Bankex
59,331.76 1.83% -0.81%
BSE CD
64,821.02 -1.20% -2.94%
BSE CG
71,821.01 0.34% -1.32%
BSE FMCG
22,267.63 -1.53% -5.36%
BSE HC
44,238.50 -0.47% 1.09%
BSE IT
42,390.64 -1.02% -0.60%
BSE Metal
33,141.71 -1.50% 4.65%
BSE Oil & Gas
29,686.85 -1.56% -2.53%
Source:BSE
Values as on Oct 18, 2024
• On the BSE sectoral front, BSE Auto plunged
4.34% following the Bajaj Auto’s Q2FY25
financial results. The two-wheeler giant's
weaker-than-expected sales outlook for the
crucial festive season has dampened the
sentiment, dragging down the broader auto
sector.
• BSE Bankex rose 1.83% following the upbeat
first round of private bank results of second
quarter of FY25, which boosted the investors’
confidence in the banking sector’s growth
potential.
Indian Derivatives Market Review
• Nifty Oct 2024 Futures stood at 24,949.15, a premium of 85.75 points above the spot
closing of 24,863.40.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1,786.52 lakh crore as against Rs. 2,010.48 lakh crore for the week to Oct 11.
• The Put-Call ratio stood at 0.82 compared with the previous week’s close of 0.93.
• The Nifty Put-Call ratio stood at 0.93 compared with the previous week’s close of 0.84.
Indian Equity Market (contd.)
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6.74
6.76
6.78
6.80
6.82
6.84
14-Oct 15-Oct 16-Oct 17-Oct 18-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
6.47 6.43 6.65 6.47
91 Day T-Bill
6.46 6.46 6.60 6.88
07.06% 2028, (5 Yr GOI)
6.71 6.69 6.71 7.18
07.10% 2034, (10 Yr GOI)
6.82 6.79 6.78 7.13
Source: Refinitiv Values as on Oct 18, 2024
• Bond yields increased tracking a rise in
U.S. Treasury yields after U.S. retail sales
rose sequentially in Sep 2024, dampening
expectations of an aggressive interest
rate cut by the U.S. Federal Reserve.
Comments by the RBI governor that a
rate cut at this point would be “very
premature” further weighed on
sentiment.
• However, a decline in global crude oil
prices due to a weaker demand outlook
outweighed negative sentiment caused
by higher-than-expected domestic retail
inflation data of Sep 2024 which
accelerated to 5.49% YoY, compared to
3.65% in Aug 2024.
• Yield on the 10-year benchmark paper
(7.10% GS 2034) rose by 3 bps to close at
6.82% from the previous week’s close of
6.79%.
Domestic Debt Market
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-4
-2
0
2
4
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 18-Oct-24 11-Oct-24
Yield in %
Change in bps
Source: Refinitiv
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 6.65 7.51 86
3 Year 6.77 7.39 62
5 Year 6.83 7.42 59
10 Year 6.92 7.42 50
Source: Refinitiv
Values as on Oct 18, 2024
• Yields on gilt rose up to 4 bps across the maturities,
barring 1 year paper that fell by 2 bps, while 2 & 19
year papers were unchanged.
• Corporate bond yields increased up to 6 bps across
the curve, barring 2 & 15 year papers that fell by 1
bps each, while 1 & 10 year papers were unchanged.
• Difference in spread between AAA corporate bond
and gilt expanded by 2 or 3 bps across the
segments, barring 2, 7, 10 & 15 year papers that
contracted up to 4 bps.
Domestic Debt Market (Spread Analysis)
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8
• According to a report, India is set to launch the PM GatiShakti National Master Plan portal
for private sector engagement this year, aimed at accelerating infrastructure development.
This platform, which is presently utilized by government agencies, will grant restricted
access to private firms while safeguarding sensitive information. A total of over 1,600 data
layers will be accessible for planning purposes.
• The Department for Promotion of Industry and Internal Trade has relaxed quality control
norms for cookware and utensils for micro units, exempting enterprises with investments
under Rs. 25 lakh and turnover below Rs. 2 crore. Large and medium manufacturers will
implement changes by Apr 2025, while small and micro enterprises have deadlines extended
to Jul and Oct 2025, respectively.
• The government has approved Rs. 35,000 crore for PM Annadata Aay Sanrakshan Abhiyan to
ensure fair prices for farmers and stabilize market rates for consumers.
• The Central Government has approved an increase in the Minimum Support Price (MSP) for
key rabi crops in a significant boost for farmers ahead of Diwali. The MSP for wheat has been
raised by Rs. 150 per quintal, moving from Rs. 2,275 to Rs. 2,425. Mustard saw a hike of Rs.
300, bringing its MSP to Rs. 5,950 per quintal, while the MSP for gram was increased by Rs.
210 to Rs. 5,650 per quintal.
Regulatory Updates in India
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9
• The Ministry of External Affairs stated that India has extended a new line of credit
amounting to Rs. 487.60 crore to the government of Mauritius for financing of a water
pipeline replacement project. This is the first-ever rupee-denominated Line of Credit to
have been extended by India for project financing to any country under the Indian
Development and Economic Assistance Scheme.
• The finance minister called on Mexican companies to explore collaborations with start-ups
and academic institutions and benefit from India's business-friendly policies. Speaking at
the Tech Leaders Roundtable at the Chamber of Commerce, Guadalajara, she highlighted
the opportunities and responsibilities for similarly placed economies and how India and
Mexico can leverage and collaborate.
Regulatory Updates in India (contd..)
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• According to the Labor Department, U.S. initial jobless claims fell to 241,000 in the week
ended Oct 12th, 2024, a decrease of 19,000 from the previous week's revised level of
260,000. Economists had expected jobless claims to inch up to 260,000 from the 258,000
originally reported for the previous week.
• According to the Commerce Department, U.S. retail sales rose by 0.4% in Sep 2024 after
inching up by 0.1% in Aug 2024. Economists had expected retail sales to rise by 0.3%.
• The European Central Bank reduced its main refinancing operations rate by 25 basis points
from 3.65% to 3.40% on 17th Oct, 2024, in line with expectations. Policymakers
determined that the disinflation process is progressing as anticipated; however, they are
growing increasingly apprehensive about the state of the euro area economy in light of
some disappointing data released since the Sep 2024 policy meeting.
• According to Eurostat, eurozone’s harmonized index of consumer prices posted an annual
increase of 1.7% in Sep 2024. A month ago, inflation stood at 2.2%. Inflation fell below 2%
target for the first time since Jun 2021.
• According to the National Bureau of Statistics, China’s gross domestic product expanded
4.6% on a yearly basis in the third quarter of 2024. This was the weakest growth since the
first quarter of 2023. The rate matched expectations but came in slightly weaker than the
4.7% growth posted in the second quarter of 2024.
10
Global News/Economy
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11
Global Indices
Indices
18-Oct-24
1-Week
Return
YTD
Return
Russell 3000 3,022.72 0.76% 25.80%
Nasdaq 100 20,324.04 0.26% 20.79%
FTSE 100 8,358.25 1.27% 8.08%
DAX Index 19,657.37 1.46% 17.35%
Nikkei Average 38,981.75 -1.58% 16.49%
Straits Times 3,640.19 1.86% 12.34%
Source: Refinitiv Value as on Oct 18, 2024
U.S.
• U.S. equity markets rose amid ongoing
optimism about the outlook for the U.S.
economy following a largely upbeat batch
of data released recently including a
report from the Commerce Department
revealing that U.S. retail sales rose by a
margin slightly exceeding expectations
for the month of Sep 2024. However,
gains were restricted due to profit taking,
as some investors looked to cash in on
recent strength in the markets.
Europe
• European equity markets rose as investors were expressing enthusiasm over the European
Central Bank's announcement regarding a reduction in interest rates, while also processing
a variety of corporate earnings reports along with economic data from both regional and
the U.S.
Asia
• Asian equity markets closed on a mixed note. The Chinese market rose as the nation's
leading commercial banks reduced their deposit rates for the second time this year.
However, the Japanese market fell as data showed exports dropped for the first time in 10
months in Sep 2024.
Global Equity Markets
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3.95
4.00
4.05
4.10
4.15
15-Oct 16-Oct 17-Oct 18-Oct
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
12
• Yields on the 10-year U.S. Treasury rose
by 1 bps to close at 4.08% from the
previous week’s close of 4.07%.
• U.S. Treasury prices fell following the
U.S. retail sales data in Sep 2024, which
has indicated that the economy is on a
stable foundation, leading to a
reduction in market expectations
regarding the U.S. Federal Reserve's
aggressive approach to cutting interest
rates.
• However, losses were restricted as
investors continued to bet that the U.S.
Federal Reserve would cut interest rates
in coming months.
Global Debt (U.S.)
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8.50
9.00
9.50
10.00
10.50
11.00
11.50
18-Sep-24 4-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($/Barrel)
73.79 81.31
Gold ($/Oz)
2,720.25 2,656.00
Gold (Rs/10 gm)
77,164 75,743
Silver ($/Oz)
33.66 31.53
Silver (Rs/Kg)
92,122 90,283
Source: Refinitiv *Value as on Oct 18, 2024
Gold
• Gold prices rose amid persisting worries
about geopolitical tensions and continued
uncertainty about the global economic
outlook, and the upcoming U.S. elections.
Brent Crude
• Brent crude oil prices fell due to concerns
about the outlook for demand from China
after data revealed that in the third
quarter of 2024, China's economy
experienced its slowest growth rate since
the beginning of 2023. Further, prices fell
as fears regarding potential supply
disruptions diminished on reports Israel
will avoid targeting Iran's oil and nuclear
sites.
Baltic Dry Index
• The index fell over the week due to
sluggish capesize and panamax activities.
Commodities Market
18-Oct-24
-9.25%
2.42%
6.75%
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9.20
9.40
9.60
9.80
10.00
10.20
19-Sep-24 5-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
84.07 84.06
Pound Sterling
109.80 109.69
EURO
91.17 91.93
100 Yen
56.06 56.48
Source: Refinitiv Figures in INR , *Value as on Oct
18, 2024
Rupee
• The Indian rupee in the spot trade fell against
the U.S. dollar due to strong greenback
demand. However, losses were restricted
because of weak crude oil prices and suspected
intervention by the Reserve Bank of India.
Euro
• The euro fell against the greenback following
the release of data indicated that U.S. retail
sales rose slightly above expectations in Sep
2024.
Pound
• Pound fell slightly against the U.S. dollar after a
recent data release revealed that U.S. retail
sales exceeded expectations slightly in Sep
2024.
Y
en
• Yen fell against the U.S. dollar after the latest
data release revealed that U.S. retail sales
exceeded expectations slightly in Sep 2024.
Currencies Markets
18-Oct-24
0.01%
-0.74%
-0.83%
0.10%
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15
The Week that was…
14
th
Oct to 18
th
Oct
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16
The Week that was (Oct 14 – Oct 18)
Date Events
Present
Value
Previous
Value
Monday,
October 14, 2024
• India WPI Inflation (YoY) (Sep) 1.84% 1.31%
• India Inflation Rate (YoY) (Sep) 5.49% 3.65%
• China Imports (YoY) (Sep) 0.30% 0.50%
Tuesday,
October 15, 2024
• India Passenger Vehicles Sales (YoY) (Sep) -0.40% -1.60%
• U.K. Employment Change (3M) (Aug) 373K 265K
• Eurozone Industrial Production (MoM) (Aug) 1.80% -0.50%
Wednesday,
October 16, 2024
• U.K. Consumer Price Index (MoM) (Sep) 0.00% 0.30%
• U.K. Retail Price Index (MoM) (Sep) -0.30% 0.60%
Thursday,
October 17, 2024
• Eurozone Core Harmonized Index of Consumer Prices (MoM) (Sep) 0.10% 0.10%
• European Central Bank Main Refinancing Operations Rate 3.40% 3.65%
• U.S. Initial Jobless Claims (Oct 11) 241K 260K
• U.S. Retail Sales (MoM) (Sep) 0.40% 0.10%
Friday,
October 18, 2024
• Japan National Consumer Price Index (YoY) (Sep) 2.50% 3.00%
• China Gross Domestic Product (QoQ) (Q3) 0.90% 0.70%
• U.K. Retail Sales (MoM) (Sep) 0.30% 1.00%
• Eurozone Current Account (Aug) €31.5B €4.08B
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17
The Week Ahead
21
st
Oct to 25
th
Oct
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18
The Week Ahead
Day Event
Monday,
Oct 21, 2024
• People’s Bank of China Interest Rate Decision
• Germany Producer Price Index (YoY) (Sep)
Tuesday,
Oct 22, 2024
• U.S. IMF Meeting
• U.K. Public Sector Net Borrowing (Sep)
Wednesday,
Oct 23, 2024
• Eurozone Consumer Confidence (Oct) Prel
• U.S. Existing Home Sales Change (MoM) (Sep)
Thursday,
Oct 24, 2024
• Germany HCOB Manufacturing PMI (Oct) Prel
• European HCOB Manufacturing PMI (Oct) Prel
• U.K. S&P Global/CIPS Services PMI (Oct) Prel
• U.S. Initial Jobless Claims (Oct 18)
• U.S. S&P Global Services PMI (Oct) Prel
• U.S. New Home Sales (MoM) (Sep)
Friday,
Oct 25, 2024
• U.K. GfK Consumer Confidence (Oct)
• U.S. Durable Goods Orders (Sep)
• U.S. Michigan Consumer Sentiment Index (Oct)
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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
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19
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