News You Can Use of 20 September 2024

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

NEWS U CAN USE

Sep 20, 2024

https://mf.nipponindiaim.com

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

The Week that was…

Sep to 20

Sep

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Indian Economy

• India’s wholesale price index (WPI) based inflation eased to 4-month low of 1.31% YoY in

Aug 2024 as compared to 2.04% in Jul 2024. The positive rate of inflation in Aug 2024 was

primarily due to an increase in prices of food articles, processed food products, other

manufacturing, manufacture of textiles and manufacture of machinery & equipment etc.

• India’s merchandise trade deficit widened to $29.65 billion in Aug 2024 from $24.02 billion

in Aug 2023. Exports fell by 9.33% to $34.71 billion in Aug 2024 from $38.28 billion of the

same month of previous year, while imports rose by 3.31% to $64.36 billion from $62.30

billion during the same period.

• According to government’s data, advance tax collections in India increased by 22.61% to

Rs. 4.36 lakh crore in the first half of FY25, indicating strong corporate performance and a

robust economy. Net direct tax collections rose 16.12% to Rs. 9.95 lakh crore, with

personal income tax showing significant growth over corporate income tax.

• According to the labour ministry data, retail inflation for farm workers and rural labourers

eased to 5.96% and 6.08% YoY, respectively, in Aug 2024 against the comparative figures

of 6.17% cent and 6.20% recorded in Jul 2024.

• According to the latest RBI report, India's net foreign direct investment during the Apr to

Jul period of FY25 rose to $5.5 billion compared to $3.8 billion in the year-ago period.

Manufacturing, financial services, communication services, computer services, electricity,

and other energy sectors accounted for more than three-fourths of the gross FDI inflows.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Domestic Equity Market Indices

Indices

20-Sep-24 1 Week Return YTD Return

BSE Sensex

84,544.31 1.99% 17.03%

Nifty 50

25,790.95 1.71% 18.68%

BSE Mid

-Cap 49,163.22 -0.16% 33.45%

BSE Small

-Cap 57,081.61 -0.08% 33.76%

Source: Refinitiv

Values as on Sep 20, 2024

• Domestic equity markets rose for the

second consecutive week as key

benchmark indices BSE Sensex and

Nifty 50 rose 1.99% and 1.71%,

respectively. However, the mid-cap

segment and the small-cap segment

closed the week in red.

• Domestic equity markets rose during

the week as investors reacted positively

to the U.S. Federal Reserve’s decision

to cut interest rate by 50 bps, signaling

further easing in coming months to

keep the labor market from slowing

too much. Markets reached fresh highs

on expectations of inflow of foreign

funds into domestic equity markets

following the big interest rate cut by

the U.S. central bank. However,

markets witnessed some profit booking

at higher levels amid signs of escalating

tensions in the Middle East.

Ratios

BSE Sensex

Nifty 50 BSE Mid Cap

BSE Small

Cap

P/E

24.80 23.98 33.56 35.99

P/B

4.28 4.08 4.46 4.23

Dividend Yield

1.08 1.18 0.86 0.55

Source: NSE, BSE

Values as on Sep 20, 2024

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

16-Sep-24 1,374 1,399 0.98

17-Sep-24 1,072 1,674 0.64

18-Sep-24 891 1,876 0.47

19-Sep-24 790 1,961 0.40

20-Sep-24 1,779 959 1.86

Source: NSE

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Sectoral Indices

Indices

Last Returns (in %)

Closing 1-Wk 1-Mth

BSE Auto

59,649.55 2.30% 3.27%

BSE Bankex

60,955.12 3.47% 5.26%

BSE CD

67,842.34 1.64% 10.08%

BSE CG

73,373.89 0.99% 0.78%

BSE FMCG

23,943.93 1.06% 5.68%

BSE HC

44,135.35 -0.39% 6.06%

BSE IT

42,737.49 -2.83% 1.23%

BSE Metal

31,973.89 0.28% 0.71%

BSE Oil & Gas

30,130.79 -1.83% -7.18%

Source:BSE

Values as on Sep 20, 2024

• On the BSE sectoral front, BSE Realty, BSE

Bankex & BSE AUTO gained 4.67%, 3.47% &

2.30%, respectively, as investors responded

favorably to these rate-sensitive sectors

following the U.S. Federal Reserve’s decision to

reduce the interest rate significantly by 50 bps,

marking the first decrease in borrowing costs

since Mar 2020.

Indian Derivatives Market Review

• Nifty Sep 2024 Futures stood at 25,767.75, a discount of 23.20 points below the spot

closing of 25,790.95.

• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.

2,107.83 lakh crore as against Rs. 2,127.11 lakh crore for the week to Sep 13.

• The Put-Call ratio stood was unchanged at 0.77 compared with the previous week’s close.

• The Nifty Put-Call ratio stood at 1.5 compared with the previous week’s close of 1.33.

Indian Equity Market (contd.)

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

6.74

6.76

6.78

6.80

16-Sep 17-Sep 19-Sep 20-Sep

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

6.69 6.62 6.50 6.48

91 Day T-Bill

6.57 6.57 6.60 6.93

07.06% 2028, (5 Yr GOI)

6.69 6.72 6.79 7.10

07.10% 2034, (10 Yr GOI)

6.76 6.79 6.86 7.09

Source: Refinitiv Values as on Sep 20, 2024

• Bond yields fell after the U.S. Federal

Reserve kicked off its interest rate cut

cycle, with a significant reduction of 50

basis points. Market participants will

keep a close eye on the domestic

borrowing calendar for the second half

of FY25 for further cues.

• Yield on the 10-year benchmark paper

(7.10% GS 2034) fell by 3 bps to close at

6.76% from the previous week’s close of

6.79%.

• Data from Reserve Bank of India showed

that India's foreign exchange reserves

increased to $689.46 billion for the week

ended Sep 13, 2024 compared with

$689.24 billion a week earlier.

Domestic Debt Market

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

-9

-6

-3

6.20

6.40

6.60

6.80

7.00

3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs

India Yield Curve Shift (%) (W-o-W)

Change in bps 20-Sep-24 13-Sep-24

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 6.73 7.5 77

3 Year 6.80 7.38 58

5 Year 6.79 7.36 57

10 Year 6.88 7.38 50

Source: Refinitiv

Values as on Sep 20, 2024

• Yields on gilt fell up to 8 bps across the maturities.

• Corporate bond yields fell up to 6 bps across the

curve, barring 4 & 5 year papers that increased by 1

bps each, while 3 year paper remained steady.

• Difference in spread between AAA corporate bond

and gilt expanded between 2 to 5 bps across the

segments, barring 10 & 15 year paper that remained

steady.

Domestic Debt Market (Spread Analysis)

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

• The Directorate General of Goods and Services Tax Intelligence (DGGI) has proposed

establishing reciprocal agreements with international governments to enhance information

sharing and enforcement measures aimed at curbing tax evasion in Online Information and

Database Access or Retrieval (OIDAR) services, such as e-gaming and online education. This

initiative seeks to address the issue of uncooperative offshore entities, including online

casinos operating from tax havens, by enabling data sharing and blocking access to their

websites.

• According to a circular by the Central Board of Direct Taxes (CBDT), the Income Tax

Department has raised the minimum thresholds for filing appeals in tax disputes. Appeals

can now be submitted only if the disputed tax amount is over Rs. 60 lakh for the Income Tax

Appellate Tribunal, Rs. 2 crore for high courts, and Rs. 5 crore for the Supreme Court. This

change is intended to minimize frivolous litigation and speed up the resolution of disputes.

• SEBI has granted mutual funds the authorization to purchase and sell a novel financial

instrument known as credit default swaps (CDS). Essentially, CDS functions as purchasing

insurance by making a modest premium payment in exchange for potential risk exposure in

a corporate bond. At present, mutual fund companies are permitted to procure CDS

coverage for corporate bonds that are a part of Fixed Maturity Plans with a maturity period

of at least one year. With this, the capital market regulator has now allowed debt funds to

buy CDS for all schemes and sell CDS with exception of overnight and liquid funds.

Regulatory Updates in India

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

• The finance minister introduced the NPS Vatsalya scheme after the announcement of the

Union Budget 2024-25. The minister will also unveil an online platform for NPS Vatsalya

subscriptions, publish a brochure detailing the scheme, and hand out Permanent

Retirement Account Number (PRAN) cards to minor subscribers.

• The Union Minister of Cooperation introduced the ‘White Revolution 2.0’ initiative in an

effort to revolutionize the dairy cooperative industry in India. The program's objectives are

to strengthen the dairy industry's infrastructure, increase milk production, empower

women farmers, and increase exports. In addition to computerizing Primary Agriculture

Credit Societies, it involves the introduction of RuPay Kisan Credit Cards and micro-ATMs

for dairy producers.

• SEBI has announced a new payment platform designed for the collection of fees to ensure

that investors only pay fees to Registered Investment Advisors (RIAs) and Research

Analysts (RAs). This platform will be known as the Centralized Fee Collection Mechanism

(CeFCoM) for RIAs and RAs. A recognized Administration and Supervisory Body (ASB),

appointed by the regulator, will oversee the new platform.

Regulatory Updates in India (contd..)

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

• The U.S. Federal Reserve announced its anticipated decision on 18th Sep, 2024 to reduce

interest rates for the first time since Mar 2020, implementing a significant cut of half a

percentage point. Further, the U.S. Federal Reserve has indicated that its officials are

increasingly confident that inflation is progressing steadily towards the 2% target.

Consequently, the central bank has reduced the target range for the federal funds rate by

50 basis points, setting it at 4.75% to 5.00%. The U.S. Federal officials anticipate further

reductions in interest rates next year, with forecasts suggesting a decrease of an additional

full percentage point by the end of 2025.

• The Bank of England announced on 19th Sep, 2024 that it would keep its benchmark

interest rate unchanged following a quarter-point reduction implemented last month,

while also prolonging its bond reduction strategy for an additional year. The Bank of

England’s Monetary Policy Committee (MPC) voted 8-1 to maintain the Bank Rate at 5%.

• The People's Bank of China kept its one-year loan prime rate unchanged at 3.35% on 20th

Sep, 2024. Similarly, the five-year LPR, the benchmark for mortgage rates, was retained at

3.85%. The bank had last reduced the LPR in Jul, 2024 by 10 basis points.

• The Bank of Japan decided to keep its benchmark interest rate steady, as was largely

anticipated on 20th Sep, 2024. In a unanimous vote, the Policy Board decided to keep its

interest rate target in the range of 0.15%-0.25%, as highly expected.

Global News/Economy

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Global Indices

Indices

20-Sep-24

1-Week

Return

YTD

Return

Russell 3000 2,939.36 1.64% 22.33%

Nasdaq 100 19,791.49 1.42% 17.62%

FTSE 100 8,229.99 -0.52% 6.42%

DAX Index 18,720.01 0.11% 11.75%

Nikkei Average 37,723.91 3.12% 12.73%

Straits Times 3,624.76 1.74% 11.87%

Source: Refinitiv Value as on Sep 20, 2024

U.S.

• U.S. equity markets rose as investors

continued cheering the U.S. Federal

Reserve's decision on 18th Sep, 2024 to

lower interest rates by half a percentage

point. Further, the Labor Department

released the most recent data, which

shows that new claims for unemployment

benefits in the week ended 14th Sep,

2024 in the U.S. unexpectedly fell to a

low of over four months, and it also

helped the rally.

Europe

• European equity markets closed on a mixed note. The market rose as investors assessed

the latest U.S. monetary policy decision to reduce the interest rate by 50 basis points.

Further, the much-awaited decision by the Bank of England to maintain interest rates

steady was likewise absorbed by investors.

Asia

• Asian equity markets mostly rose following the announcement by the U.S. Federal Reserve

of a larger-than-usual 50-bps reduction in borrowing costs, along with indications of

additional easing measures in the upcoming months.

Global Equity Markets

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

3.55

3.60

3.65

3.70

3.75

16-Sep 17-Sep 18-Sep 19-Sep 20-Sep

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

• Yields on the 10-year U.S. Treasury rose

by 8 bps to close at 3.73% from the

previous week’s close of 3.65%.

• U.S. Treasury prices fell as the release of

jobless claims data that exceeded

expectations heightened global risk

appetite, following the U.S. Federal

Reserve's announcement of a significant

interest rate reduction on 18th Sep,

2024.

• Further, prices fell following the

announcement that retail sales for the

month of Aug 2024 in the largest global

economy rose unexpectedly.

Global Debt (U.S.)

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

8.00

8.50

9.00

9.50

10.00

10.50

11.00

20-Aug-24 5-Sep-24

Global Commodity Movement

Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)

Global Commodity Prices

Rebased to 10

Source: Refinitiv

Performance of various commodities

Commodities

Last Closing* 1-Week Ago

Brent Crude($/Barrel)

78.20 75.93

Gold ($/Oz)

2,621.96 2,576.50

Gold (Rs/10 gm)

73,715 72,761

Silver ($/Oz)

31.11 30.66

Silver (Rs/Kg)

88,560 86,002

Source: Refinitiv *Value as on Sep 20, 2024

Gold

• Gold prices rose after a significant drop in

the U.S. interest rate following the U.S.

Federal Reserve's 50-bps rate cut. Further

prices rose on expectations of more

interest rate cuts from the U.S. Federal

Reserve in coming months. The demand for

the safe-haven yellow metal has surged,

driven by increasing tensions in the Middle

East also added to the gains.

Brent Crude

• Brent crude oil prices rose amid hopes that

reduced borrowing costs will stimulate fuel

demand in the world's largest economy,

the U.S. Further, gains were increased amid

escalating tensions in the Middle East.

Baltic Dry Index

• The index rose over the week due to

improved capesize and panamax activities.

Commodities Market

20-Sep-24

2.99%

1.76%

1.48%

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

9.60

9.80

10.00

10.20

10.40

10.60

20-Aug-24 5-Sep-24

USD GBP Euro JPY

Source: Refinitiv

Currency Prices ( in terms of INR)

Rebased to 10

Currency Movement

Movement of Rupee vs Other Currencies

Currency

Last Closing* 1-Wk Ago

US Dollar

83.49 83.92

Pound Sterling

111.23 110.22

EURO

93.29 92.95

100 Yen

58.83 59.49

Source: Refinitiv Figures in INR , *Value as on Sep

20, 2024

Rupee

• The Indian rupee in the spot trade rose against

the U.S. dollar supported by anticipated

portfolio inflows and following the U.S. Federal

Reserve's decision to implement a 50-basis

point reduction in interest rates.

Euro

• The euro rose against the greenback after the

U.S. Fed cut its interest rate by 50 basis points.

Pound

• Pound surged against the U.S. dollar after the

U.S. Federal Reserve reduced its policy rate by

50 basis points on 18th Sep, 2024, bringing it to

a range of 4.75% to 5.00%, a move that

exceeded economists' expectations.

• Yen fell against the U.S. dollar after the Bank of

Japan left interest rates unchanged on 20th

Sep, 2024 and indicated that it was not in a

hurry to hike them again.

Currencies Markets

20-Sep-24

-0.51%

-1.11%

0.36%

0.92%

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

The Week that was…

Sep to 20

Sep

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

The Week that was (Sep 16 – Sep 20)

Date Events

Present

Value

Monday,

September 16, 2024

• Eurozone Trade Balance (Jul)

€21.2B €21.7B

• Eurozone Labor Cost (Q2)

4.70% 5.00%

Tuesday,

September 17, 2024

• India WPI Inflation (YoY) (Aug)

1.31% 2.04%

• India Balance of Trade (Aug)

$-29.7B $-23.5B

• U.S. Retail Sales (MoM) (Aug)

0.10% 1.10%

• U.S. Industrial Production (MoM) (Aug)

0.80% -0.60%

Wednesday,

September 18, 2024

• U.K. Consumer Price Index (YoY) (Aug)

2.20% 2.20%

• U.K. Retail Price Index (YoY) (Aug)

3.50% 3.60%

• Eurozone Core Harmonized Index of Consumer Prices (YoY) (Aug)

2.20% 2.20%

• U.S. Federal Reserve Interest Rate Decision

5.00% 5.50%

Thursday,

September 19, 2024

• Bank of England Interest Rate Decision

5.00% 5.00%

• U.S. Initial Jobless Claims (Sep 13)

219K 231K

• U.S. Existing Home Sales Change (MoM) (Aug)

3.86M 3.95M

Friday,

September 20, 2024

• People’s Bank of China Interest Rate Decision

3.35% 3.35%

• Bank of Japan Interest Rate Decision

0.15% 0.15%

• Germany Producer Price Index (YoY) (Aug)

-0.80% -0.80%

• U.K. Retail Sales (YoY) (Aug)

2.50% 1.5%

• Eurozone Consumer Confidence (Sep) Prel

-12.90 -13.50

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

The Week Ahead

Sep to 27

Sep

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

The Week Ahead

Day Event

Monday,

Sep 23, 2024

• Germany Manufacturing PMI (Sep)

• Eurozone HCOB Services PMI (Sep)

• U.K. S&P Global/CIPS Manufacturing PMI (Sep)

• U.S. S&P Global Services PMI (Sep)

Tuesday,

Sep 24, 2024

• Germany IFO – Current Assessment (Sep)

• U.S. Housing Price Index (MoM) (Jul)

• U.S. Consumer Confidence (Sep)

Wednesday,

Sep 25, 2024

• U.S. New Home Sales Change (MoM) (Aug)

• U.S. EIA Crude Oil Stocks Change (Sep 20)

Thursday,

Sep 26, 2024

• U.S. Gross Domestic Product Annualized (Q2)

• U.S. Initial Jobless Claims (Sep 20)

• U.S. Durable Goods Orders (Aug)

Friday,

Sep 27, 2024

• Germany Unemployment Change (Sep)

• Eurozone’s Consumer Confidence (Sep)

• U.S. Core Personal Consumption Expenditures - Price Index (YoY) (Aug)

• U.S. Michigan Consumer Sentiment Index (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.

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.

https://mf.nipponindiaim.com