News U Can Use
March 8, 2019
The Week that was…
March to 8
Indian Economy
The Nikkei India Services Purchasing Managers' Index (PMI) grew to 52.5 in Feb 2019
from 52.2 in Jan 2019. New work led to faster increase in output and solid job creation.
Business sentiment improved and rates of both input cost and output charge inflation
eased. However, international trade was weak. Seasonally adjusted Nikkei India
Composite PMI Output Index grew to 53.8 in Feb 2019 from 53.6 in Jan 2019.
Data from the Society of Indian Automobile Manufacturers (SIAM) showed that sales of
passenger vehicles fell in Feb 2019 on account of high insurance costs and tightened
liquidity in the market. Passenger vehicle sales fell 1.11% to 2,72,284 units. Sales of
commercial vehicles decreased 0.43% to 87,436 units while that of three-wheeler sales fell
4.14% to 59,875 units. Sales of two-wheelers also came down 4.22% to 16,15,071 units.
Overall, vehicle sales across categories declined 3.65% to 20,34,768 units.
The Reserve Bank of India (RBI) announced that Rs. 12,500 crore would be injected into
the financial system through open market operations (OMOs). Also, it stated that the
announcement is based on an assessment of liquidity conditions and durable liquidity
According to data from Tea Board, tea production fell to 13.96 million kg in India in Jan
2019 as against production of 17.68 million kg in the year-ago period. South India was the
biggest contributor and there was no production in north India in Jan 2019 due to ban
imposed on plucking.
Indian Equity Market
Domestic Equity Market Indices
Indices 08-Mar-19 1 Week Return YTD Return
S&P BSE Sensex 36,671.43 1.68% 1.67%
Nifty 50 11,035.40 1.58% 1.59%
S&P BSE Mid-Cap 14,804.21 2.08% -4.11%
S&P BSE Small-Cap 14,529.06 3.91% -1.21%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
05-Mar-19 1540 336 4.58
06-Mar-19 1246 617 2.02
07-Mar-19 871 940 0.93
08-Mar-19 800 1006 0.80
Source: NSE
Indian equity markets closed on a
positive note in the week ended Mar 8,
2019. Decline in oil prices due to global
growth concerns and reports of rise in
U.S. crude inventory boosted the
indices. Surge in Nikkei Services PMI
reading for Feb 2019 and strength in
rupee against the greenback added to
the gains. Reports that China’s
government would implement
measures to boost domestic
consumption also boosted investor
sentiment. However, concerns over
reports that the U.S. President plans to
end key trade benefits for India
restricted the gains.
Further, weak global cues kept the
markets under pressure as
Organization for Economic Co-
operation and Development again cut
its global growth forecasts for 2019 and
Nifty 50
Mid Cap
Small Cap
27.17 27.05 32.11 -123.3
3.09 3.48 2.57 2.24
Dividend Yield
1.17 1.22 0.99 0.89
Source: BSE, NSE Value as on Mar
8, 2019
Indian Equity Market (contd.)
Sectoral Indices
Last Returns (in %)
Closing* 1-Wk 1-Mth
S&P BSE Auto
19,332.23 2.15% 2.05%
S&P BSE Bankex
31,086.39 2.52% 1.77%
22,317.21 3.81% 3.06%
17,762.92 2.55% 5.44%
11,597.56 1.63% 0.13%
13,972.89 0.62% -0.07%
15,032.21 -2.13% -3.79%
S&P BSE Metal
11,025.33 0.82% 7.39%
S&P BSE Oil & Gas
14,309.84 2.67% 4.84%
BSE Power
1,917.27 3.70% 7.62%
7,088.19 3.31% 6.13%
Source: Thomson Reuters Eikon
*Value as on Mar 8, 2019
On the BSE sectoral front, indices closed on
a positive note. S&P BSE Consumer
Durables was the major gainer, up 3.81%
followed by S&P BSE Power that grew
3.70%. Cabinet’s decision to reportedly
provide additional funds for sugar mills likely
boosted consumer durable stocks. S&P BSE
Oil & Gas and S&P BSE Capital Goods grew
2.67% and 2.55%, respectively.
S&P BSE Bankex and S&P BSE Auto grew
2.52% and 2.15%, respectively. S&P BSE
information technology was the major loser
that fell 2.13%.
Indian Derivatives Market Review
Nifty Mar 2019 Futures were at 11,076.05, a premium of 40.65 points, over the spot
closing of 11,035.40. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 41.06 lakh crore as against Rs. 53.99 lakh crore for the week to Mar 1.
The Put-Call ratio stood at 0.87 compared with the previous week’s close of 0.92.
The Nifty Put-Call ratio stood at 1.60 against the previous week’s close of 1.69.
Domestic Debt Market
Debt Indicators
Call Rate
6.15 6.20 6.35 6.34
91 Day T-Bill
6.41 6.42 6.38 6.85
07.32% 2024, (5 Yr GOI)
7.03 7.05 7.15 7.96
07.26% 2029, (10 Yr GOI)
7.37 7.38 7.33 --
Source: Thomson Reuters Eikon
Value as on Mar 8, 2019
Initially, bond yields rose on
expectations of heavy debt supply in
Mar 2019. In addition, market
participants are also staying cautious
ahead of Feb 2019 retail inflation
data, due on Mar 12, 2019. However,
losses reversed following overnight
decline in U.S. Treasury yields and
optimism on another rate cut by the
Monetary Policy Committee in its Apr
2019 meeting.
Yields on the existing 10-year
benchmark paper (7.17% GS 2028)
fell 3 bps to close at 7.53% from the
last week’s close at 7.56%, after
trading in a range of 7.52% to 7.59%.
Yield on the upcoming new 10-year
benchmark paper (7.26% GS 2029)
fell 1 bps to close at 7.37% as
compared with the previous sessions
close of 7.38% after trading in the
range of 7.36% to 7.41%.
5-Mar 6-Mar 7-Mar 8-Mar
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
Domestic Debt Market (Spread Analysis)
G-Sec Yield
Corporate Yield
1 Year 6.66 8.15 149
3 Year 6.84 8.33 149
5 Year 7.16 8.36 120
10 Year 7.67 8.72 105
Source: Thomson Reuters Eikon Value as on Mar 8, 2019
Yields on gilt securities fell across the
maturities by up to 4 bps barring 2-year
paper that increased 1 bps and 30-year
paper that closed steady.
Corporate bond yields increased on 1-, 5-,
6- and 15-year maturities in the range of 4
bps to 6 bps. Yields fell across the
remaining maturities in the range of 2 bps to
7 bps barring 2- and 7-year papers that
closed steady.
Difference in spread between AAA corporate
bond and gilt expanded across the
maturities by up to 10 bps barring 3- and 10-
year papers that contracted 1 bps and 3
bps, respectively.
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 08-Mar-19 01-Mar-19
Yield in %
Change in
Source: Thomson Reuters Eikon
Regulatory Updates in India
The Cabinet Committee on Economic Affairs (CCEA) permitted Alternative Mechanism to
decide on the timing, price and quantum of shares of a state-run company to be put on the
block for outright sale. This comes in order to fast track strategic disinvestment of Central
Public Sector Enterprises (CPSEs).
The Cabinet approved the continuation of Atal Innovation Mission (AIM). Expenditure up to
Rs. 1,000 crore were approved for expansion of Atal Tinkering Labs (ATL) to 10,000 schools
till FY20 with the help of AIM. For maintenance of the ATL equipment and operational
expenses, each ATL receives grant of Rs. 12 lakh in the first year and up to Rs. 2 lakh per
year for following four years.
The finance minister announced that the Cabinet has approved interest subvention worth
Rs. 2,790 crore for extending loans by banks to sugar mills. Cabinet Committee had already
approved Rs. 1,332 crore in Jun 2018.
The Union cabinet announced that it has given approval to grant coal supply to power
plants with short term power purchase agreements. Additionally, besides giving renewable
status to hydroelectric plants, it has cleared investment of Rs. 21,000 crore for setting up
two new coal-based plants in Uttar Pradesh and Bihar.
Regulatory Updates in India (contd..)
According to media reports, the government brought in stiff localisation riders for the
automotive industry in order to avail the incentives upfront under the Faster Adoption and
Manufacturing of hybrid and Electric Vehicles (FAME) II Initiative. This comes on the wake
of promoting local manufacturing of electric vehicles. In order to qualify for the scheme,
vehicle makers have to confirm minimum localisation content of 40% on ex-factory price of
the vehicle in case of buses and 50% for all other categories of vehicles.
The government allowed rebate for all state and Central embedded levies on apparel and
made-up textile segments, making shipments zero-rated. The announcement came in order
to boost the country's competitiveness in export markets.
The Reserve Bank of India (RBI) eased norms/business guidelines for white label ATMs.
Under the new norms, white label ATM operators (WLAO) can source cash directly from
RBI or any scheduled banks including rural banks and cooperative banks. In addition,
WLAOs can offer bill payment and deposit services and may also display advertisements of
non-finance products provided it doesn’t run on the screen when the customer is conducting
a transaction.
Global News/Economy
According to a report from the Labor Department, U.S. non-farm payroll employment rose
marginally by 20,000 jobs, much less than expected, in Feb 2019 following upwardly revised
311,000 jobs increase in Jan 2019. However, the unemployment rate fell to 3.8% in Feb
2019 from 4.0% in Jan 2019.
According to the Institute for Supply Management, U.S. non-manufacturing index rose more
than expected to 59.7 in Feb 2019 from 56.7 in Jan 2019. The major reason for increase
was due to significant increase in the pace of new orders growth.
The European Central Bank (ECB) kept interest rates on hold in its monetary policy review
as expected. The main refinance rate is currently at a record low of 0% and the deposit rate
at -0.40%. The marginal lending facility rate stands at 0.25%. ECB also lowered the growth
forecasts and inflation outlook for this year and the next for the euro zone economy amid
persisting global uncertainties. The growth forecast for 2019 was downgraded to 1.1% from
the earlier projection of 1.7%.
According to data from the Cabinet Office, Japan's GDP rose 0.5% QoQ in the fourth quarter
of 2018 as against 0.3% rise in the previous reading. On YoY basis, GDP rose 1.9%
following 1.4% rise in the previous reading.
Global Equity Markets
Global Indices
Dow Jones
25,450.24 -2.21% 9.10%
Nasdaq 100
7,015.69 -1.90% 10.83%
FTSE 100
7,104.31 -0.03% 5.59%
DAX Index
11,457.84 -1.24% 8.51%
Nikkei Average
21,025.56 -2.67% 5.05%
Straits Times
3,195.87 -0.76% 4.14%
Source: Thomson Reuters Eikon
Value as on Mar 8, 2019
U.S. markets ended the week in the red
as geo political concerns kept investors
jittery following media reports that North
Korea is rebuilding its nuclear test
Sentiment dampened further after ECB
slashed euro zone economic growth
forecasts for this year and the next and
the U.S. jobs data for Feb 2019 came
well below market expectations.
European markets were hit as initial hopes that the U.S. and China will agree on a trade
deal anytime soon waned. Also, ECB trimmed its euro zone economic growth forecast for
this year and the next citing external uncertainties. However, it assured of providing new
loans to banks in order to stimulate growth.
Asian markets were no exception to the weakness seen in global peers. Chinese and
Hong Kong markets were hit with official data showing that Chinese exports plunged the
most in three years and imports fell for a third straight month in Feb 2019. Growth worries
intensified after ECB downgraded the euro zone economic growth forecast for this year
and the next citing external uncertainties.
Global Debt (U.S.)
Yields on the 10-year U.S. Treasury
bond plunged 13 bps to close at 2.63%
compared with the previous close of
U.S. Treasury prices surged after ECB
kept interest rates on hold in its
monetary policy review and indicated
that interest rates will remain
unchanged for the rest of the year.
Also, ECB announced a new round of
long-term loans for banks to boost
lending in the slowing euro zone
economy and lowered the growth
forecasts and inflation outlook of the
euro zone economy for this year and the
next amid persisting global
Gains were extended following
downbeat U.S. nonfarm payroll data for
Feb 2019. However, gains were capped
after business activity jumped in non-
manufacturing sectors in the U.S. in Feb
4-Mar 5-Mar 6-Mar 7-Mar 8-Mar
Yield in %
US 10-Year Treasury Yield Movement
Source: Thomson Reuters Eikon
Commodities Market
Performance of various commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel) 63.07 63.15
Gold ($/Oz) 1,298.01 1,293.31
Gold (Rs/10 gm) 32,123 32,819
Silver ($/Oz) 15.31 15.20
Silver (Rs/Kg) 37,826 39,195
Source: Thomson Reuters Eikon *Value as on Mar 8, 2019
Gold prices inched up as global growth
concerns resurfaced after ECB cut the
2019 growth forecast for the euro zone.
Also, China reported 20.7% drop in
export for Feb 2019 amid the ongoing
trade tension with U.S. Lower than
expected U.S. jobs data for Feb 2019
also supported prices.
Brent Crude
Brent crude prices marginally moved
down on global growth concerns, which
aggravated after ECB trimmed
eurozone’s growth forecast for 2019 and
China lowered its economic growth
target to 6% in 2019 compared with
6.5% in 2018 due to increasing debt and
the trade dispute with U.S.
Baltic Dry Index
The Baltic Dry Index fell on the back of
lower capesize and panamax activities.
9-Feb-19 18-Feb-19 27-Feb-19 8-Mar-19
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Thomson Reuters Eikon
Currencies Markets
Movement of Rupee vs Other Currencies
Currency Last Closing* 1-Wk Ago
US Dollar
70.10 70.97
Pound Sterling
91.80 94.09
78.55 80.72
100 Yen
63.13 63.49
Source: RBI Figures in INR , *Value as on Mar 8, 2019
The rupee rose against the greenback
following gains in domestic equity market
and weak U.S. private jobs data for Feb
2019. However, greenback demand by
state-run bank capped the gains.
The euro fell against the U.S. dollar after
ECB indicated that interest rates will
remain unchanged for the rest of the
year and announced a new round of
long-term loans for banks.
The pound fell against the dollar
following decline in U.K. construction
activity in Feb 2019.
The yen rose against the greenback after
U.S. jobs data came much less than
expected in Feb 2019. However,
expectations that U.S. and China are
moving closer to a trade deal capped the
8-Feb-19 15-Feb-19 22-Feb-19 1-Mar-19 8-Mar-19
Source: RBI
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
The Week that was…
March to 8
The Week that was (Mar 4 Mar 8)
Date Events Present Value Previous Value
March 04, 2019
• U.K Markit/CIPS UK Construction PMI (Feb) 49.50 50.60
• U.S. Construction Spending (MoM) (Dec) -0.60% 0.80%
March 05, 2019
• India Nikkei Services PMI (Feb) 52.50 52.20
• U.S. ISM Non-Manufacturing/Services Composite (Feb) 59.70 56.70
• Eurozone Retail Sales (YoY) (Jan) 2.20% 0.30%
• U.K. Markit/CIPS Services PMI (Feb) 51.30 50.10
• Japan Nikkei Services PMI (Feb) 52.30 51.60
March 06, 2019
• Germany Markit Construction PMI (Feb) 54.70 50.70
• U.S. MBA Mortgage Applications (Mar 01) -2.50% 5.30%
• U.S. ADP Employment Change (Feb) 183k 300k
• U.S. Trade Balance (Dec) -$59.8B -$50.3B
March 07, 2019
• European Central Bank Rate Decision (Mar 07) 0.00% 0.00%
• Japan Leading Index CI (Jan P) 95.90 97.50
• Eurozone Gross Domestic Product (YoY) (4Q F) 1.10% 1.20%
• U.S. Initial Jobless Claims (Mar 02) 223k 226k
March 08, 2019
• U.S. Change in Non-farm Payrolls (Feb) 20k 311k
• U.S. Unemployment Rate (Feb) 3.80% 4.00%
• China Trade Balance (Feb) $4.12b $39.16b
The Week Ahead
March to 15
The Week Ahead
Day Event
March 11, 2019
U.S. Retail Sales Advance (MoM) (Jan)
Japan Machine Tool Orders (YoY) (Feb P)
U.S. Business Inventories (Dec
March 12, 2019
India Consumer Price Index (Feb)
India Index of Industrial Production (Jan)
U.S. Consumer Price Index (YoY) (Feb)
U.K. Trade Balance (Jan)
March 13, 2019
U.S. Durable Goods Orders (Jan P)
Eurozone Industrial Production (YoY) (Jan)
March 14, 2019
India Wholesale Price Index (Feb 19)
China Retail Sales YTD (YoY) (Feb)
U.S. Initial Jobless Claims (Mar 09)
March 15, 2019
India Trade Deficit (Feb)
Japan Bank Rate Decision (Mar 15)
U.S. University of Michigan Sentiment (Mar P)
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 Reliance Nippon Life Asset Management
Company Limited (RNAM) 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; RNAM 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 RNAM’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, affiliates 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,
affiliates 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 Online 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 Online 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 Online 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.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Thank you for
your time.