News You Can Use of 27 September 2024

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

NEWS U CAN USE

Sep 27, 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 27

Sep

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

Indian Economy

• According to the Labour Ministry, the Employees Provident Fund Organisation (EPFO) saw

a net increase of 19.94 lakh members in Jul 2024. The union Labour minister noted that

10.52 lakh new workers enrolled in EPFO's Social Security schemes, with a large number

being young people aged 18-25. Additionally, female employment rose with 4.41 lakh new

members joining.

• According to finance minister, India's external debt-to-GDP ratio stood at 18.7%, with a

debt service ratio of 6.7% and a foreign exchange reserves-to-external debt ratio of 97.4%.

The finance minister also emphasized that India's external debt is sustainable and well-

managed, showcasing the nation's robust standing in comparison to numerous middle-

income countries.

• The Asian Development Bank has kept India's growth prediction at 7% for FY25, pointing

to better farm production and increased government spending. The economy is predicted

to gain momentum in the upcoming quarters, supported by strong performance in both

industry and services. Additionally, a rise in private consumption and investment is

expected.

• According to reports, India's exports of gems and jewellery experienced a decline of

18.79% in Aug 2024, amounting to USD 2,012.51 million compared to the previous year.

This downturn is attributed to a slowdown in global consumption, exacerbated by

geopolitical tensions. Notable decreases were observed in the exports of cut and polished

diamonds, lab-grown diamonds, gold jewellery, and coloured gemstones.

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

Domestic Equity Market Indices

Indices

27-Sep-24 1 Week Return YTD Return

BSE Sensex

85,571.85 1.22% 18.45%

Nifty 50

26,178.95 1.50% 20.47%

BSE Mid

-Cap 49,490.32 0.67% 34.34%

BSE Small

-Cap 57,091.36 0.02% 33.79%

Source: Refinitiv

Values as on Sep 27, 2024

• Domestic equity markets rose for the

third consecutive week as key

benchmark indices BSE Sensex and

Nifty 50 rose 1.22% and 1.50%,

respectively. The rally was broad-based

as the mid-cap segment and the small-

cap segment closed the week in green.

• Domestic equity markets rose following

weak U.S. economic data that bolstered

the case for deeper rate cuts by the

Federal Reserve in the next meeting,

which is due in Nov 2024. The influx of

retail investors, the robustness of

India's economic expansion, and

increasing optimism regarding the

possible initiation of a rate-cutting

cycle have propelled the market

upward. Sentiment was boosted

following China's recent economic

stimulus announcement.

Ratios

BSE Sensex

Nifty 50 BSE Mid Cap

BSE Small

Cap

P/E

25.12 24.34 43.34 34.49

P/B

4.33 3.87 5.08 3.88

Dividend Yield

1.06 1.16 0.67 0.57

Source: NSE, BSE

Values as on Sep 27, 2024

Indian Equity Market

NSE Advance/Decline Ratio

Date

Advances Declines Advance/Decline Ratio

23-Sep-24 1,723 1,061 1.62

24-Sep-24 1,291 1,477 0.87

25-Sep-24 1,131 1,637 0.69

26-Sep-24 1,157 1,606 0.72

27-Sep-24 1,369 1,390 0.98

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

62,237.4 4.34% 6.23%

BSE Bankex

61,152. 0.32% 4.76%

BSE CD

67,944.5 0.15% 7.09%

BSE CG

73,704.1 0.45% 0.05%

BSE FMCG

23,891. -0.22% 4.06%

BSE HC

44,437.4 0.68% 4.93%

BSE IT

42,791.9 0.13% 0.24%

BSE Metal

34,246. 7.11% 5.19%

BSE Oil & Gas

31,896.8 5.86% -2.09%

Source:BSE

Values as on Sep 27, 2024

• On the BSE sectoral front, BSE Metal rallied

7.11% after the People’s Bank of China cut the

reserve requirement ratio for banks by 50 bps

and lowered key interest rate in an effort to

support the country's faltering economy. China

remains the largest consumer of commodities in

the world and a stronger demand from China

can lift up global demand and prices too.

• BSE Oil & Gas gained 5.86% led by oil marketing

companies as the decline in crude oil prices lead

the gains for oil marketing companies.

Indian Derivatives Market Review

• Nifty Oct 2024 Futures stood at 26,345.15, a premium of 170.00 points above the spot

closing of 26,175.15.

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

1,887.38 lakh crore as against Rs. 2,107.83 lakh crore for the week to Sep 20.

• The Put-Call ratio stood at 0.96 compared with the previous week’s close of 0.77.

• The Nifty Put-Call ratio stood at 1.16 compared with the previous week’s close of 1.5.

Indian Equity Market (contd.)

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

6.68

6.70

6.72

6.74

6.76

6.78

23-Sep 24-Sep 25-Sep 26-Sep 27-Sep

Yield in %

10 -Yr Benchmark Bond ( % )

Source: CCIL

Debt Indicators

(%)

Current

Value

1-Wk

Ago

1-Mth

Ago

6-Mth

Ago

Call Rate

6.53 6.69 6.51 6.64

91 Day T-Bill

6.54 6.57 6.64 6.97

07.06% 2028, (5 Yr GOI)

6.67 6.69 6.78 7.09

07.10% 2034, (10 Yr GOI)

6.76 6.76 6.86 7.07

Source: Refinitiv Values as on Sep 27, 2024

• Bond yields initially fell on expectations

of lower domestic debt supply in the

second half of FY25 along with another

significant interest rate cut by the

Federal Reserve. However, gains were

wiped out after the central government

upheld its borrowing plan as budgeted,

defying the market participants’

expectations of a reduction.

• The central government has retained its

gross market borrowing target of Rs.

14.01 lakh crore budgeted for FY25 and

planned to raise Rs. 6.61 lakh crore

through auction of dated securities

during Oct to Mar period of this fiscal.

• Yield on the 10-year benchmark paper

(7.10% GS 2034) was unchanged to close

at 6.76% from the previous week’s close.

Domestic Debt Market

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

-4

-2

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 27-Sep-24 20-Sep-24

Yield in %

Change in bps

Source: Refinitiv

Maturity

G-Sec Yield

(%)

Corporate Yield

(%)

Spread

bps

1 Year 6.76 7.53 77

3 Year 6.80 7.36 56

5 Year 6.79 7.34 55

10 Year 6.87 7.38 51

Source: Refinitiv

Values as on Sep 27, 2024

• Yields on gilt fell up to 4 bps across the maturities,

barring 1 year paper that rose by 3 bps, while 3, 5 &

10 year papers were unchanged.

• Corporate bond yields fell up to 2 bps across the

curve, barring 1 year paper that increased by 3 bps,

while 2, 9, 10 & 15 year papers were unchanged.

• Difference in spread between AAA corporate bond

and gilt remained steady or expanded by 1 bps

across the segments, barring 3 & 5 year papers that

contracted by 2 bps each and 6 & 15 year papers

that expanded by 2 bps each.

Domestic Debt Market (Spread Analysis)

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

• SEBI has published a consultation paper suggesting a color-coded risk-o-meter for mutual

fund schemes, following recommendations from the Mutual Fund Advisory Committee

(MFAC). The goal is to standardize a uniform disclosure format and simplify the current risk-

o-meter system for better understanding. Additionally, SEBI recommends that AMCs inform

their unitholders about any changes to the risk-o-meter, providing both the new and old

versions via email or SMS.

• The Central Board of Direct Taxes (CBDT) has announced the regulations for the Vivad se

Vishwas 2.0 scheme, designed to resolve tax disputes that were unresolved as of Jul 2022.

This new scheme streamlines the process into four steps and provides lower settlement

amounts for declarations submitted by 31st Dec 2024. Any payments made after 1st Jan

2025, will incur increased rates.

• The Insolvency and Bankruptcy Board of India has made changes to the Insolvency

Resolution Process for Corporate Persons w.e.f. Sep 24, 2024. One of these modifications is

the appointment of a temporary representative for sizable creditor groups, such as

homebuyers, in order to guarantee their efficient representation throughout the insolvency

process. This seeks to improve the bankruptcy process's equity and efficiency.

• The central government has retained its gross market borrowing target of Rs. 14.01 lakh

crore budgeted for FY25 and planned to raise Rs. 6.61 lakh crore through auction of dated

securities during Oct to Mar period of this fiscal to fund the revenue gap to boost economic

growth.

Regulatory Updates in India

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

• According to Steel Secretary, the government is preparing a second round of the

production-linked incentive program for specialty steel because the first round did not live

up to expectations. During the CII Steel Summit 2024, he mentioned that of the Rs. 6,400

crore allotted, only Rs. 2,600 crore was used. Specialty steel is essential to industries like

automotive and defence.

• The government is thinking of hiking the price of ethanol and raising the Minimum Selling

Price (MSP) of sugar in addition to reviewing sugar exports for the 2024-25 season. Food

Minister mentioned that discussions are ongoing with the petroleum ministry regarding

ethanol prices and a committee is evaluating the MSP of sugar, which has been unchanged

since Feb 2019.

• The Indian government following the sixth session of the India-Egypt Joint Trade

Committee (JTC) announced that the two countries have identified international trade

settlement and digital payments, trade and investment in the Suez Canal Economic Zone

(SCEZ), and transport and trade disputes as areas of focus.

Regulatory Updates in India (contd..)

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

• According to the Commerce Department, U.S. personal consumption expenditures (PCE)

price index inched up by 0.1% in Aug 2024 after rising by 0.2% in Jul 2024. The uptick

matched expectations. The report also said the annual rate of growth of the PCE price

index slowed to 2.2% in Aug 2024 from 2.5% in Jul 2024.

• According to the Labor Department, U.S. initial jobless claims slipped to 218,000 in the

week ended 21st Sep 2024, a decrease of 4,000 from the previous week's revised level of

222,000. Economists had expected jobless claims to rise to 225,000 from the 219,000

originally reported for the previous week.

• According to a survey, U.K. flash composite output index dropped to 52.9 in Sep 2024 from

53.8 in Aug 2024. Nonetheless, a reading above 50.0 suggests expansion in the private

sector.

• According to a survey, eurozone’s HCOB flash composite output index dropped to 48.9 in

Sep 2024 from 51.0 in Aug 2024. The reading was the lowest in eight months and

remained below the forecast of 50.6.

• According to the survey, Germany’s business confidence index fell more-than-expected to

85.4 in Sep 2024 from 86.6 in the previous month. The score was seen at 86.1. The

indicator dropped for the fourth straight month to hit the lowest score since January.

• According to a survey, Japan’s flash composite output index fell to 52.5 in Sep 2024 from

52.9 in the prior month. Further, the flash services Purchasing Managers' Index rose to 53.9

from 53.7 in Aug 2024.

Global News/Economy

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

Global Indices

Indices

27-Sep-24

1-Week

Return

YTD

Return

Russell 3000 2,949.90 0.36% 22.77%

Nasdaq 100 20,008.62 1.10% 18.92%

FTSE 100 8,320.76 1.10% 7.60%

DAX Index 19,473.63 4.03% 16.25%

Nikkei Average 39,829.56 5.58% 19.02%

Straits Times 3,573.36 -1.42% 10.28%

Source: Refinitiv Value as on Sep 27, 2024

U.S.

• U.S. equity markets rose as strength in

the tech sector following a chipmaker

company from the U.S. that reported

strong sales driven by AI demand. Stocks

experienced a positive impact from the

publication of encouraging U.S. economic

data, as a report from the Labor

Department indicated that initial claims

for unemployment benefits in the U.S.

unexpectedly declined during the week

ended 21st Sep, 2024.

Europe

• European equity markets rose amid optimism the Chinese government is set to unveil

additional stimulus measures to help spur growth in the nation's economy, alongside

expectations that the U.S. Fed will further reduce interest rates in the upcoming months.

Asia

• Chinese and Hong Kong markets surged following China's central bank announcement of

its most significant stimulus package since the pandemic to support the economy and

address the ongoing challenges in the property sector. Additionally, the Japanese market

experienced a positive trend amid indications that the Bank of Japan is not in a rush to

implement further interest rate increases.

Global Equity Markets

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

3.70

3.72

3.74

3.76

3.78

3.80

23-Sep 24-Sep 25-Sep 26-Sep 27-Sep

Yield in %

US 10-Year Treasury Yield Movement

Source: Refinitiv

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

by 2 bps to close at 3.75% from the

previous week’s close of 3.73%.

• U.S. Treasury prices fell as benchmark

10-year notes have experienced gains in

five out of the last seven sessions with

investors maintaining their confidence

that the U.S. Federal Reserve would

successfully navigate a soft landing for

the largest economy in the world during

its recent cycle of interest rate

reductions.

• However, losses were restricted

following the release of data indicating

a continued decline in the U.S. Personal

Consumption Expenditures in Aug 2024

within the world's largest economy, the

U.S., the likelihood of a significant

interest rate reduction at the U.S.

Federal Reserve's policy meeting in Nov

2024 has increased.

Global Debt (U.S.)

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

4.00

6.00

8.00

10.00

12.00

14.00

27-Aug-24 12-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)

72.57 78.2

Gold ($/Oz)

2,657.97 2,621.96

Gold (Rs/10 gm)

75,340 73,715

Silver ($/Oz)

31.62 31.11

Silver (Rs/Kg)

90,951 88,560

Source: Refinitiv *Value as on Sep 27, 2024

Gold

• Gold prices rose amid continued optimism

about more interest-rate reductions by the

U.S. Federal Reserve in coming months.

Geopolitical tensions have also played a

significant role in sustaining the demand

for the safe-haven yellow metal.

Brent Crude

• Brent crude oil prices fell amid concerns

about the outlook for demand after data

showed a significant decline in business

activity within the eurozone, and on

worries about excess supply in the market.

However, losses were limited after the

Middle East Tensions exploded.

Baltic Dry Index

• The index rose over the week due to

improved capesize and panamax activities.

Commodities Market

27-Sep-24

-7.20%

1.37%

1.63%

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

9.60

9.80

10.00

10.20

10.40

27-Aug-24 12-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

83.67 83.49

Pound Sterling

112.05 111.23

EURO

93.46 93.29

100 Yen

58.23 58.83

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

27, 2024

Rupee

• The Indian rupee in the spot trade fell against

the U.S. dollar despite rise in other Asian peers

and positive trends in domestic equities.

Euro

• The euro rose slightly against the greenback as

investors maintained their positions,

anticipating that the U.S. Federal Reserve will

implement another significant interest rate

reduction during its Nov 2024 meeting.

Pound

• Pound rose against the U.S. dollar as investors

held onto bets that the U.S. Federal Reserve will

set another large interest rate at its upcoming

monetary policy meeting.

• Yen rose against the U.S. dollar as the new

ruling party leader was elected as the next

Prime Minister.

Currencies Markets

27-Sep-24

0.21%

-1.02%

0.19%

0.73%

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

The Week that was…

Sep to 27

Sep

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

The Week that was (Sep 23 – Sep 27)

Date Events

Present

Value

Monday,

September 23, 2024

• Germany HCOB Manufacturing PMI (Sep) Prel 40.30 42.40

• Eurozone HCOB Services PMI (Sep) Prel 50.50 52.90

• U.K. S&P Global/CIPS Manufacturing PMI (Sep) Prel 51.50 52.50

• U.S. Global Services PMI (Sep) Prel 55.40 55.70

Tuesday,

September 24, 2024

• Germany IFO – Current Assessment (Sep) 84.40 86.40

• U.S. Housing Price Index (MoM) (Jul) 0.10% 0.00%

Wednesday,

September 25, 2024

• U.S. New Home Sales Change (MoM) (Aug) -4.70% 10.30%

• U.S. EIA Crude Oil Stocks Change (Sep 20) -4.471M -1.63M

Thursday,

September 26, 2024

• Germany GfK Consumer Confidence Survey (Oct) -21.20 -21.90

• U.S. Gross Domestic Product Annualized (Q2) 3.00% 3.00%

• U.S. Initial Jobless Claims (Sep 20) 218K 222K

• U.S. Durable Goods Orders (Aug) 0.00% 9.90%

• U.S. Pending Home Sales (MoM) (Aug) 0.60% -5.50%

Friday,

September 27, 2024

• Germany Unemployment Change (Sep) 17K 2K

• Eurozone Consumer Confidence (Sep) -12.90 -12.90

• U.S. Personal Consumption Expenditures - Price Index (MoM) (Aug) 0.10% 0.20%

• U.S. Michigan Consumer Sentiment Index (Sep) 70.10 69.00

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

The Week Ahead

Sep to 04

Oct

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

The Week Ahead

Day Event

Monday,

Sep 30, 2024

• India Infrastructure Output (YoY) (Aug)

• India Current Account – Q1FY25

• China Caixin Manufacturing PMI (Sep)

• U.K. Gross Domestic Product (YoY) (Q2)

Tuesday,

Oct 01, 2024

• India HSBC Manufacturing PMI Final (Sep)

• Eurozone Harmonized Index of Consumer Prices (MoM) (Sep) Prel

• U.S. ISM Manufacturing PMI (Sep)

Wednesday,

Oct 02, 2024

• Eurozone Unemployment Rate (Aug)

• U.S. ADP Employment Change (Sep)

Thursday,

Oct 03, 2024

• Eurozone HCOB Services PMI (Sep)

• U.S. S&P Global Composite PMI (Sep)

• U.S. ISM Services PMI (Sep)

Friday,

Oct 04, 2024

• India HSBC Services PMI Final (Sep)

• Eurozone’s Producer Price Index (YoY) (Aug)

• U.S. Nonfarm Payrolls (Sep)

• U.S. Unemployment Rate (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