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NEWS U CAN USE
April 02, 2021
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
29
th
Mar to 02
nd
Apr
2
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Indian Economy
• Government data showed that India's infrastructure output fell 4.6% in Feb 2021 as
compared to growth of 0.9% in Jan 2021 and an expansion of 6.4% in the same period of the
previous year. All the sectors witnessed contraction. The refinery products sector witnessed
the maximum contraction of 10.9% followed by cement and coal sector which contracted
5.5% and 4.4%, respectively.
• Government data showed that India’s fiscal deficit for the period from Apr to Feb of 2021
came in at Rs. 14.06 lakh crore or 76.0% of the budget estimate for FY21 as compared to
135.2% in the corresponding period of the previous year. Revenue deficit came in at Rs.
10.43 lakh crore or 71.6% of the budget estimate as compared to 156.5% of the budget
estimate in the corresponding period of the previous year. Total receipts stood at Rs. 14.13
lakh crore or 88.2% of the budget estimate as compared to 74.0% of the budget estimate in
the corresponding period of the previous year. Total expenditure stood at Rs. 28.19 lakh
crore or 81.7% of the budget estimate as compared to 91.4% of the budget estimate in the
corresponding period of the previous year.
• Data from Reserve Bank of India showed that India’s current account balance recorded a
deficit of US$ 1.7 billion (0.2% of GDP) in Q3 of FY21 from a surplus of US$ 15.1 billion (2.4%
of GDP) in Q2 of FY21. India has a current account deficit of US$ 2.6 billion (0.4% of GDP) in
Q3 of FY20. However, India’s current account surplus rose to 1.7% of GDP in Apr 2020 - Dec
2020 as against a deficit of 1.2% in in Apr 2019 – Dec 2019 due to a sharp contraction in the
trade deficit.
3
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4
Domestic Equity Market Indices
Indices
01-Apr-21
1 Week Return
YTD Return
S&P BSE Sensex
50,029.84 2.08% 4.77%
Nifty 50
14,867.35 2.48% 6.33%
S&P BSE Mid
-Cap 20,516.40 2.73% 14.35%
S&P BSE Small
-Cap 21,071.69 3.91% 16.43%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
30-Mar-21 1,049 917 1.14
31-Mar-21 925 1,008 0.92
01-Apr-21 1,594 355 4.49
Source: NSE
• Indian equity markets ended the holiday
truncated week on a positive note. For
the fiscal year ending Mar 31, 2021,
Sensex had rallied 68% and Nifty
jumped 71%, making it the best fiscal
year for equity markets in over a decade
despite COVID-19 pandemic.
• Worries over rising coronavirus cases in
India eased to some extent as
government prepares for a vaccine
rollout on a larger scale.
• Bourses commenced FY22 on a strong
footing with buying interest led by
positive cues from global peers, strong
buying in metal stocks and recovery in
the banking sector.
• Market participants rejoiced after U.S.
President announced a multi-trillion-
dollar infrastructure investment plan.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
34.84 33.60 58.28 78.78
P/B
3.38 4.25 3.06 2.87
Dividend Yield
0.72 0.95 0.90 0.84
Source: NSE,BSE Value
as on April 01, 2021
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
22,591.0 2.45% -6.71%
S&P BSE Bankex
38,239.4 1.90% -3.77%
S&P BSE CD
32,809.1 2.80% 0.61%
S&P BSE CG
21,447.6 2.30% -3.24%
S&P BSE FMCG
12,867.1 3.25% 5.02%
S&P BSE HC
21,528.5 3.70% 0.76%
S&P BSE IT
26,769.8 3.63% 5.26%
S&P BSE Metal
15,127.3 8.54% 7.34%
S&P BSE Oil & Gas
15,085.7 2.83% -5.57%
Source: BSE Value as on April 01,
2021
• On the BSE sectoral front, all the major indices
closed in the green. S&P BSE Metal was the
top gainer, up 8.54%, followed by S&P BSE
Healthcare and S&P BSE IT, which went up
3.70% and 3.63%, respectively.
• With the economic activity gaining pace and
demand rising from infra, real estate and
automobile sectors, the metal stocks are
catching the attention of investors.
Indian Derivatives Market Review
• Nifty Apr 2021 Futures stood at 14,953.35, a premium of 86.00 points above the spot
closing of 14,867.35. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 136.76 lakh crore as against Rs. 227.07 lakh crore for the week to Mar 26.
• The Put-Call ratio stood at 0.96 compared with the previous week’s close of 0.90.
• The Nifty Put-Call ratio stood at 1.16 compared with the previous week’s close of 1.14.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-
Wk
Ago
1-
Mth
Ago
6-
Mth
Ago
Call Rate
3.30 3.23 3.21 3.44
91 Day T
-Bill
3.27 3.31 3.22 3.26
05.22% 2025, (5 Yr GOI)
5.59 5.56 5.62 5.30
05.85% 2030, (10
Yr GOI)
6.18 6.12 6.24 6.00
Source:
Refinitiv Value as on Mar 31, 2021
• Bond yields rose in a truncated week
following rise in U.S. Treasury yields.
Yields increased further as market
participants anticipate additional supply
in the 10-year to 14-year bracket of the
yield curve during Apr to Sep of 2021
period.
• Yield on the 10-year benchmark paper
(5.85% GS 2030) rose 6 bps to close at
6.18% from the previous week’s close of
6.12% after moving in a range of 6.13%
to 6.19%.
• RBI announced calendar for issuance of
Government of India dated securities
from Apr to Sep 2021 for the cumulative
amount of Rs. 7.24 lakh crore.
Domestic Debt Market
6.00
6.10
6.20
30-Mar 31-Mar
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-
Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 3.96 4.58 61
3 Year 4.99 5.54 55
5 Year 5.79 6.54 76
10 Year 6.27 7.33 106
Source:
Refinitiv
Value as on
Mar 31, 2021
• Yields on gilt securities rose in the range of 2
to 9 bps across maturities, leaving 1-, 2-, 11 &
15-year papers that fell 2, 5 or 9 bps. Yield on
6- & 30-year papers were unchanged.
• Corporate bond yields rose by up to 6 bps
across the curve, leaving 10- & 15-year papers
that fell 1 & 10 bps, respectively. Yield on 3- &
4-year papers were steady,
• Spread between AAA corporate bond and gilt
expanded 14, 10 & 3 bps on 1-, 2- & 6-year
papers while 7-yr paper was steady.
Remaining securities contracted in the range
of 2 to 8 bps.
Domestic Debt Market (Spread Analysis)
-10
0
10
2.00
5.00
8.00
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 31-Mar-21 26-Mar-21
Yield
in %
Change
in bps
Source: Thomson Reuters Eikon
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8
• The Reserve Bank of India made Additional Factor of Authentication (AFA) mandatory, so
there will be no automatic recurring payments for various services, including recharge and
utility bills, starting Apr 2021. Banks and payment gateways, on the other hand, are
demanding more time to comply with the RBI's automatic recurring payment directive.
Banks will be allowed to alert customers in advance of recurring payment due dates, and
transactions will be carried out only after the customer has given his or her permission. As a
result, the transaction would not be automatic, but rather would take place after the
customer's authentication. According to the new guidelines, banks must give one-time
passwords to customers for recurring payments exceeding Rs. 5,000.
• The Reserve Bank of India (RBI) has tightened its supervision norms for payment companies
storing customer data, amid a slew of cyber-security breaches at Indian tech startups in
recent months. Beginning April1, all licenced payment system operators (PSOs) will be
required to send comprehensive "compliance certificates" to the central bank twice a year,
signed by their CEOs or managing directors, confirming adherence to all RBI regulations
regarding payment data protection and storage.
• The Union Cabinet has approved a Rs. 10,900 crore production-linked incentive (PLI) scheme
for the food processing industry. This will help to create 2.5 lakh jobs, improve exports, and
ensure that customers have access to a wider variety of value-added goods.
Regulatory Updates in India
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9
• The Securities Exchange Board of India (Sebi) has shortened the time limit for refunding
investors' money to four days in the event of a non-receipt of the minimum subscription
and the issuer failing to receive listing or trading approval from the stock exchanges. The
timelines have been shortened in light of the fact that all applicants in public issues must
submit an Application Supported by Blocked Amount (ASBA).
• Securities Exchange Board of India released additional guidelines on the surrender of
foreign portfolio investment (FPI) registration. According to industry practise, any FPI who
wishes to surrender his or her certificate of registration can do so by contacting the
Designated Depository Participants (DDP). The DDP must confirm that the accounts held
by the claimant in the capacity of FPI have Zero balances and are blocked for further
transactions when applying to Sebi for a "no objection certificate" for surrender. It must
also confirm that the FPI's CP (Custodial Participant) code is barred, that no dues or fees
are owed to Sebi, and that no acts or proceedings against the applicant are pending.
• The government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) for
another three months and expanded its coverage to include up to 40% of outstanding
loans as of Feb 29,2020, up from 20% previously.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• According to a report by the Labor Department, U.S. non-farm payroll employment rose
916,000 jobs in Mar 2021 after climbing by an upwardly revised 468,000 jobs in Feb 2021.
The higher-than-expected rise in employment reflected widespread job growth, with
leisure and hospitality jobs leading the way once again.
• According to provisional data from Destatis, Germany’s consumer prices rose 1.7% YoY in
Mar 2021 as against 1.3% rise in Feb 2021. Consumer price inflation in Germany increased
in Mar, owing primarily to higher energy prices.
• According to data from the Office for National Statistics, U.K.’s gross domestic product
(GDP) grew 1.3% QoQ in the fourth quarter of 2020 as against 1% estimated earlier. Over
the whole year of 2020, GDP contracted 9.8% revised from the first estimate of 9.9%
decline.
• According to flash data from Eurostat, eurozone consumer prices inflation rose 1.3% in
Mar 2021 from 0.9% in Feb 2021. On a monthly basis, the harmonized index of consumer
prices rose 0.9% in Mar.
• According to the National Bureau of Statistics, China’s manufacturing Purchasing Manager
Index (PMI) came in at 51.9 in Mar 2021 up from 50.6 in Feb 2021. China’s service PMI came
in at 56.3 in Mar increased from 51.4 in the previous month.
• According to the Institute for Supply Management, U.S. manufacturing Purchasing
Manager Index (PMI) rose to 64.7 in Mar 2021 from 60.8 in Feb 2021.
10
Global News/Economy
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11
Global Indices
Indices
01-Apr-21
1-Week
Return
YTD
Return
Russell 3000
2,003.67 2.30% 2.61%
Nasdaq 100
13,329.52 2.70% 3.42%
FTSE 100
6,737.30 -0.05% 4.28%
DAX Index
15,107.17 2.43% 10.12%
Nikkei Average*
29,854.00 2.32% 8.78%
Straits Times
3,181.68 0.75% 11.88%
Source: Refinitiv
Value as on Apr 01, 2021; *as on Apr 02, 2021
U.S.
• U.S. markets traded higher following
report from payroll processor ADP
showing strong private sector job
growth in Mar.
• Positive sentiment was also generated
in reaction to a report from the Institute
for Supply Management showing the
pace of growth in U.S. manufacturing
activity accelerated by much more than
anticipated in Mar.
Europe
• Most of the European markets went up as a couple encouraging economic data from the
region outweighed concerns about rising coronavirus cases and slow vaccine rollouts.
Asia
• Asian markets closed in the green after U.S. President announced a multi-trillion-dollar
infrastructure investment plan to reshape the world's largest economy. Buying interest
found additional support after private survey showed that the manufacturing sector in
China continued to expand in Mar, albeit at a slightly slower pace.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury rose 5
bps to close at 1.71%, from the previous
week’s close of 1.66%.
• U.S. Treasury prices fell on investor
optimism over the rollout of coronavirus
vaccines in the United States.
• Prices declined further after the U.S.
President unveiled a multitrillion dollar
infrastructure endeavour.
• Losses were limited on higher-than-
expected weekly jobless claims.
• However, at the end, treasury prices fell
again on stronger-than- expected U.S.
non-farm payroll data in Mar 2021.
Global Debt (U.S.)
1.64
1.68
1.72
1.76
29-Mar 30-Mar 31-Mar 1-Apr 2-Apr
US 10-Year Treasury Yield Movement
Source: Thomson Reuters Eikon
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13
Performance of various commodities
Commodities
Last Closing*
1-Week Ago
Brent Crude($/Barrel)
61.74 64.24
Gold ($/Oz)
1,730.18 1,731.97
Gold (Rs/10 gm)
44,741 44,569
Silver ($/Oz)
24.97 25.05
Silver (Rs/Kg)
63,713 64,693
Source: Refinitiv *
Value as on Apr 01, 2021
Gold
• Gold prices fell on the back of a stronger
greenback and elevated U.S. Treasury
yields. Hopes of a faster economic recovery
of the U.S. economy also dampened the
safe haven appeal of the yellow metal.
Brent Crude
• Brent crude prices fell after OPEC and its
allies lowered its oil demand growth
forecast for this year by 300,000 barrels
per day (bpd). However, further losses
were restricted as China’s manufacturing
activity expanded at the quickest pace in
three months in Mar 2020.
Baltic Dry Index
• The index fell during the week due to
sluggish capesize and panamax activities.
Commodities Market
8.80
10.00
11.20
2-Mar-21 17-Mar-21 1-Apr-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global
Commodity Prices
Rebased to 10
Source: Thomson Reuters Eikon
-0.30%
-3.89%
-0.10%
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing*
1-Wk Ago
US Dollar
73.50 72.40
Pound Sterling
100.95 99.62
EURO
86.10 85.31
100 Yen
66.36 66.26
Source: Refinitiv Figures in INR , *
Value as on
Mar 31, 2021
Rupee
• The Indian rupee weakened against the
greenback following gains in U.S. dollar index
and U.S. Treasury yields rose again to over one-
year high levels.
Euro
• Euro fell against the U.S. dollar on increasing
U.S. vaccinations and a major stimulus package
backed expectations of a strong recovery from
the pandemic.
Pound
• Sterling rose against the U.S. dollar as market
participants focused on a planned April re-
opening of shops in England.
Yen
• Yen fell against the U.S. dollar on increasing U.S.
vaccinations and a major stimulus package
backed expectations of a strong recovery from
the pandemic, lifting U.S. Treasury yields.
Currencies Markets
31-Mar-21
9.40
9.60
9.80
10.00
10.20
2-Mar-21 17-Mar-21
USD GBP Euro JPY
Source: Thomson Reuters Eikon
Currency
Prices (
in terms of INR)
Rebased to 10
Currency Movement
0.92%
1.33%
0.15%
1.52%
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15
The Week that was…
29
th
Mar to 02
nd
Apr
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16
The Week that was (Mar 29 – Apr 02)
Date Events
Present
Value
Previous
Value
Monday,
March 29, 2021
• Japan Unemployment Rate (Feb)
2.90% 2.90%
• Japan Retail Trade (YoY) (Feb)
-1.5% -2.4%
Tuesday,
March 30, 2021
• Germany Harmonized Index of Consumer Prices (YoY)(Mar) PREL
2.0% 1.6%
• Eurozone Economic Sentiment Indicator(Mar)
101 93.4
• Eurozone Consumer Confidence (Mar)
-10.8 -10.8
Wednesday,
March 31, 2021
• India Infrastructure Output YoY (Feb)
-4.6% 0.9%
• India Current Account (Q4) (USD)
-14.11B -12.62B
• India Fiscal Deficit (Mar) (Lakh crore)
14.06 12.34
• China NBS Manufacturing PMI (Mar)
51.9 50.6
• U.K. Gross Domestic Product (QoQ) (Q4)
1.3% 1.0%
• Eurozone Consumer Price Index (YoY)(Mar) PREL
1.3% 0.9%
• U.S. ADP Employment Change (Mar)
517K 176K
• Japan Tankan Large All Industry Capex(Q1)
5 -10
Thursday,
April 01, 2021
• Germany Retail Sales (YoY)(Feb)
-9.0% -9.3%
• U.S. ISM Manufacturing PMI (Mar)
64.7 60.8
• U.K. Markit Manufacturing PMI (Mar)
58.9 57.9
• Germany Markit Manufacturing PMI (Mar)
66.6 66.6
Friday,
April 02, 2021
• U.S. Nonfarm Payrolls(Mar)
916K 468K
• U.S. Unemployment Rate(Mar)
6.0% 6.2%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
05
th
Apr to 09
th
Apr
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18
Day Event
Monday,
Apr 05, 2021
•
India Markit Manufacturing PMI (Mar)
•
U.S. ISM Services PMI (Mar)
•
U.S. Factory Orders (MoM) (Feb)
•
Japan Overall Household Spending (YoY)(Feb)
Tuesday,
Apr 06, 2021
•
China Caixin Services PMI (Mar)
•
Eurozone Unemployment Rate (Feb)
Wednesday,
Apr 07, 2021
•
Reserve Bank of India Rate Decision
•
India Services PMI (Mar)
•
U.S. FOMC Minutes
•
Germany Markit PMI Composite (Mar)
•
Eurozone Markit PMI Composite (Mar)
Thursday,
Apr 08, 2021
•
Germany Factory Orders (MoM)(Feb)
•
U.S. Initial Jobless Claims (Apr 2)
Friday,
Apr 09, 2021
•
China Consumer Price Index (YoY)(Mar)
•
Germany Industrial Production (MoM)(Feb)
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
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
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19
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