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NEWS U CAN USE
April 09, 2021
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The Week that was…
05
th
Apr to 09
th
Apr
2
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Indian Economy
• The Monetary Policy Committee (MPC) in its monetary policy review kept key policy repo
rate unchanged at 4.0%. The MPC also decided to continue with its accommodative stance as
long as necessary to sustain growth on a durable basis and continue to mitigate the impact
of COVID-19 on the economy, while ensuring that inflation remains within the target going
forward. All the members of the MPC unanimously voted for keeping the policy repo rate
unchanged and continuing with the accommodative stance on the monetary policy.
• The International Monetary Fund (IMF) has boosted India's economic growth forecast for the
current fiscal year by one percentage point to 12.5%. According to the forecast published in
the IMF's World Economic Outlook, India will once again be the world's fastest-growing big
economy. In reality, India is the only major world economy expected to rise in double digits in
FY22.
• IHS Markit survey showed India’s Manufacturing Purchasing Managers’ Index (PMI) fell to
55.4 in Mar 2021 from 57.5 in Feb 2021. The index touched seven month low as lockdowns
to make Apr month a challenging month for manufacturers. Although production, new
orders and input buying rose at a slower pace and softer rates in Mar 2021, the increases
outpaced their respective long-run averages. Also job creation is still in deceleration mode.
• IHS Markit survey showed that the seasonally adjusted India Services Business Activity Index
fell to 54.6 in Mar 2021 from 55.3 in Feb 2021. The Composite PMI Output Index also came
down to 56.0 in Mar 2021 from 57.3 in Feb 2021.
3
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4
Domestic Equity Market Indices
Indices
09-Apr-21 1 Week Return YTD Return
S&P BSE Sensex
49,591.32 -0.88% 3.85%
Nifty 50
14,834.85 -0.22% 6.10%
S&P BSE Mid-Cap
20,762.17 1.20% 15.72%
S&P BSE Small-Cap
21,596.85 2.49% 19.33%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
05-Apr-21 623 1374 0.45
06-Apr-21 1158 774 1.50
07-Apr-21 1277 647 1.97
08-Apr-21 1242 707 1.76
09-Apr-21 1071 844 1.27
Source: NSE
• Indian equity markets ended the week
with modest losses. Investor sentiments
were weighed down by another record
number of new COVID-19 infections on
Apr 9 and daily deaths also hitting their
highest in more than five months. India
is battling a second wave of infections
and states complain of a persistent
vaccine shortage.
• Nonetheless, the fall was cushioned by
RBI Governor’s decision to keep rates
unchanged in the first bi-monthly
monetary policy meeting of FY22 held
during the week, along with holding the
GDP growth rate steady at 10.5% for
new financial year.
• Buying interest found additional
support from IMF’s revision of India’s
GDP growth forecast upward to 12.5%
in FY22.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
34.29 33.53 58.65 80.32
P/B
3.33 4.24 3.08 2.92
Dividend Yield
0.73 0.97 0.89 0.82
Source: NSE,BSE Value
as on April 09, 2021
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
22,376.67 -0.95% -5.29%
S&P BSE Bankex
36,770.43 -3.84% -9.11%
S&P BSE CD
33,283.77 1.45% 1.37%
S&P BSE CG
21,084.35 -1.69% -4.90%
S&P BSE FMCG
13,061.86 1.51% 6.43%
S&P BSE HC
22,724.74 5.56% 7.38%
S&P BSE IT
28,078.95 4.89% 8.43%
S&P BSE Metal
16,156.39 6.80% 17.55%
S&P BSE Oil & Gas
14,932.19 -1.02% -6.79%
Source: BSE Value as on April 09, 2021
• On the BSE sectoral front, the indices
witnessed a mixed trend. S&P BSE Bankex was
the major loser, down 3.84%, followed by S&P
BSE Power and S&P BSE Capital Goods which
slipped 2.25% and 1.69%, respectively.
• Meanwhile, S&P BSE Metal was the major
gainer, up 6.80%, followed by S&P BSE
Healthcare and S&P BSE IT, which rose 5.56%
and 4.89%, respectively.
Indian Derivatives Market Review
• Nifty Apr 2021 Futures stood at 14,889.40, a premium of 54.55 points above the spot
closing of 14,834.85. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 215.79 lakh crore as against Rs. 136.76 lakh crore for the week to Apr 1.
• The Put-Call ratio stood at 0.92 compared with the previous week’s close of 0.96.
• The Nifty Put-Call ratio stood at 1.29 compared with the previous week’s close of 1.16.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
3.15 3.30 3.17 3.39
91 Day T-Bill
3.34 3.27 3.32 3.29
05.22% 2025, (5 Yr GOI)
5.54 5.59 5.76 5.24
05.85% 2030, (10 Yr GOI)
6.02 6.18 6.21 5.94
Source: Refinitiv Value as on Apr 09, 2021
• Bond yields plunged as a surge in
coronavirus cases increased expectations
that the Reserve Bank of India’s (RBI)
monetary policy would likely remain
accommodative for extended period of
time.
• Sentiment turned further bullish after
the RBI on its first monetary policy
meeting of FY22 announced Rs. 1 lakh
crore worth of purchases of government
securities till Jun 2021 end.
• Yield on the 10-year benchmark paper
(5.85% GS 2030) fell 16 bps to close at
6.02% from the previous week’s close of
6.18% after moving in a range of 5.99%
to 6.20%. Yield fell the most on weekly
basis since Sep 4, 2020 week.
Domestic Debt Market
6.00
6.10
6.20
5-Apr 6-Apr 7-Apr 8-Apr 9-Apr
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 4.05 4.67 62
3 Year 5.03 5.68 65
5 Year 5.66 6.50 84
10 Year 6.11 7.38 127
Source: Refinitiv Value as on
Apr 09, 2021
• Yields on gilt securities fell in the range of 3
to 16 bps across maturities, leaving 1-, 2-, 11-,
15- & 30-year papers that rose by up to 9 bps.
Yield fell the most on 10-year paper.
• Corporate bond yields fell by up to 22 bps
across the curve, barring 1-, 2-, 10- & 15-year
papers that rose 3, 11, 14 or 15 bps. Yield fell
the most on 4-year paper.
• Spread between AAA corporate bond and gilt
contracted in the range of 6 to 18 bps on 3-
to 6-year papers while remaining securities
expanded by up 19 bps.
Domestic Debt Market (Spread Analysis)
-26
-3
20
2.20
4.70
7.20
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 09-Apr-21 31-Mar-21
Yield in %
Change in bps
Source: Refinitiv
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8
• The Reserve Bank of India (RBI) decided to extend the TLTRO (Targeted Long Term Repo
Operations) on Tap Scheme by a period of six months till Sep 30, 2021. The move comes as
the country is facing the resurgence of the COVID-19 pandemic which forced many states to
re-impose curfews and lockdowns.
• RBI has decided to extend fresh support of Rs. 50,000 crore to All India Financial Institutions
(AIFIs) for new lending in FY22. Accordingly, the National Bank for Agriculture and Rural
Development (NABARD) will be provided a special liquidity facility (SLF) of Rs. 25,000 crore
for a period of one year to support agriculture and allied activities, the rural non-farm sector
and non-banking financial companies-micro finance institutions (NBFC-MFIs). The National
Housing Bank (NHB) will get a SLF of Rs. 10,000 crore for one year to support the housing
sector. The Small Industries Development Bank of India (SIDBI) will be sanctioned Rs. 15,000
crore for a period of up to one year and all these three facilities will be available at the
prevailing policy repo rate.
• RBI decided to enhance the limit of maximum balance at end of the day from Rs. 1 lakh to
Rs. 2 lakh per individual customer for payments banks. The objective of the move is to bring
about financial inclusion and augment their ability to cater to the needs of their customers,
including MSMEs, small traders and merchants.
Regulatory Updates in India
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9
• RBI proposed to constitute a Committee which will undertake a comprehensive review of
the working of Asset Reconstruction Companies (ARCs) in the financial sector ecosystem.
The committee will recommend suitable measures for enabling ARCs to meet the growing
requirements of the financial sector. Details of the constitution of the committee and its
terms of reference will be announced shortly.
• RBI has decided to extend the Priority Sector Lending (PSL) classification for lending by
banks to NBFCs by six months till Sep 30, 2021. The objective of the move is to bring about
‘on-lending’ to the sectors who are bottom at the pyramid and contribute significantly to
the economic growth in terms of export and employment. The objective of the move is to
augment the liquidity position of the NBFCs.
• RBI has decided to enhance the loan limit from Rs. 50 lakh to Rs. 75 lakh per borrower
against the pledge/hypothecation of agricultural produce backed by Negotiable
Warehouse Receipts (NWRs)/electronic-NWRs(e-NWRs). The receipts will be issued by
warehouses registered and regulated by Warehousing Development and Regulatory
Authority (WDRA). The objective of the move is to encourage farm credit to individual
farmers.
• RBI proposed to make interoperability mandatory for full-KYC Prepaid Payment
Instruments (PPIs), and for all acceptance infrastructure. To boost the migration of PPIs to
full-KYC, RBI proposed to increase the limit of outstanding balance in such PPIs from the
current level of Rs. 1 lakh to Rs. 2 lakh.
Regulatory Updates in India (contd..)
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• According to International Monetary Fund’s latest World Economic Outlook report, the
world economy is set to grow 6% in 2021 and 4.4% in 2022 amid huge fiscal stimulus in
some big economies and a vaccine-driven recovery in the future.
• According to the minutes from the U.S. Federal Reserve's latest monetary policy meeting,
the bank is unlikely to change its ultra-loose monetary policy anytime soon despite recent
signs of strength in the U.S. economy. More infectious virus strains, challenges in having
enough people vaccinated, and social-distancing exhaustion were all listed as risks by the
participants. Members plan to keep monetary policy accommodative until the Fed's targets
of maximum jobs and inflation moderately above 2% for some times are met.
• According to data from Sentix, eurozone investor confidence index rose sharply to 13.1 in
Apr 2021 from 5.0 in Mar 2021. In Apr, investor optimism in the eurozone hit its highest
level in more than two years, even though economic lockdowns in many eurozone
countries had little effect on the overall recovery.
• According to the National Bureau of Statistics, China’s consumer prices rose 0.4% YoY in
Mar 2021 as against 0.2% fall in Feb 2021. On a monthly basis, consumer prices fell 0.5% in
Mar as against 0.6% rise in Feb.
• According to preliminary data from the Cabinet Office, Japan’s leading index, which
measures the future economic activity, grew to 99.7 in Feb 2021 from 98.5 in Jan 2021.
The coincident index decreased to 89.0 in Feb from 90.3 in the previous month.
10
Global News/Economy
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11
Global Indices
Indices
09-Apr-21
1-Week
Return
YTD
Return
Russell 3000
2,078.24 3.72% 6.43%
Nasdaq 100
13,845.06 3.87% 7.42%
FTSE 100
6,915.75 2.65% 7.05%
DAX Index
15,234.16 0.84% 11.05%
Nikkei Average
29,768.06 -0.29% 8.47%
Straits Times
3,184.54 0.09% 11.98%
Source: Refinitiv Value as on Apr 09, 2021
U.S.
• U.S. markets managed to close for the
week in the green. Initial weakness,
amid uncertainty about the near-term
outlook for the markets, was
outweighed by U.S. Fed's repeated
assurances that monetary policy is likely
to remain unchanged for the
foreseeable future.
Europe
• European markets rose after the minutes of Fed’s latest policy meeting reiterated that
the U.S. central bank does not intend to change its ultra-loose monetary policy anytime
soon. Nonetheless, concerns about a surge in coronavirus cases in several countries and a
slowdown in the pace of vaccination in parts of the continent restricted gains.
Asia
• Asian markets largely closed in the red as positive impact of private survey showing
acceleration of Chinese service sector in Mar was overshadowed by worries over rising
coronavirus cases. Further, rise in Chinese inflation raised worries about further tightening
of policy.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury fell 1
bps to close at 1.67%, from the previous
week’s close of 1.68%.
• U.S. Treasury prices rose on view that rise
in yields based on an earlier-than-
expected tightening by the U.S. Federal
Reserve (Fed) was too aggressive. Further
support was seen on overseas buying
especially Japanese investors after the
end of their fiscal year on Mar 31.
• Gains increased on fresh dovish
comments from U.S. Fed Chairman and
weaker-than-expected U.S. initial weekly
jobless claims.
• However, most other gains reversed after
higher-than-expected U.S. producer
prices data for Mar 2021 that showed
inflation rose.
Global Debt (U.S.)
1.60
1.68
1.76
5-Apr 6-Apr 7-Apr 8-Apr 9-Apr
US 10-Year Treasury Yield Movement
Source: Refinitiv
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13
Performance of various commodities
Commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel)
61.60 61.74
Gold ($/Oz)
1,743.10 1,728.84
Gold (Rs/10 gm)
46,284 44,741
Silver ($/Oz)
25.24 24.97
Silver (Rs/Kg)
66,994 63,713
Source: Refinitiv *Value as on Apr 09, 2021
Gold
• Gold prices drew support from the minutes
of Fed’s latest policy meeting which
reiterated that the U.S. central bank does
not intend to change its ultra-loose
monetary policy anytime soon.
Nonetheless, gains were restricted by
upbeat economic data from U.S. which
dampened its safe haven appeal.
Brent Crude
• Brent crude prices eased WoW as talks to
revive a nuclear deal with Iran opened the
possibility of an easing of sanctions on its
oil exports.
Baltic Dry Index
• The index rose WoW due to improved
capesize and panamax activities.
Commodities Market
8.70
9.60
10.50
9-Mar-21 25-Mar-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
1.08%
-0.23%
0.82%
9-Apr-21
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
74.89 73.50
Pound Sterling
102.62 100.95
EURO
89.04 86.10
100 Yen
68.43 66.36
Source: Refinitiv Figures in INR , *
Value as on Apr 9, 2021
Rupee
• The Indian rupee recorded its steepest weekly
fall in 7 years on the back of RBI’s quantitative
easing announcement and greenback demand
from importers & short-covering.
Euro
• Euro gained against the U.S. dollar as market
participants booked profits after fall in Treasury
yields from recent high and rise in global equity
market.
Pound
• Pound fell against the U.S. dollar on
expectations that much of the U.S. recovery has
been priced in while Europe's latest lockdowns
will start to weaken sterling.
Yen
• Yen rose against the U.S. dollar tracking fall in
U.S. Treasury yields, after upbeat U.S. initial
weekly jobless claims.
Currencies Markets
9.70
10.05
10.40
9-Mar-21 25-Mar-21
USD GBP Euro JPY
Source: Refinitiv
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
3.42%
1.65%
3.12%
1.88%
9-Apr-21
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15
The Week that was…
05
th
Apr to 09
th
Apr
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16
The Week that was (Apr 05 – Apr 09)
Date Events
Present
Value
Previous
Value
Monday,
April 5, 2021
• Japan Jibun Bank Composite PMI Final (Mar) 49.9 48.2
• Japan Jibun Bank Services PMI Final (Mar) 48.3 46.3
• U.S. Markit Composite PMI Final (Mar) 59.7 59.5
• U.S. Factory Orders MoM (Feb) -0.80% 2.70%
Tuesday,
April 6, 2021
• China Caixin Composite PMI (Mar) 53.10 51.70
• China Caixin Services PMI (Mar) 54.30 51.50
• Euro Zone Unemployment Rate (Feb) 8.3% 8.3%
• U.K. New Car Sales YoY (Mar) 11.5% -35.5%
Wednesday,
April 7, 2021
• Germany Markit Composite PMI Final (Mar) 57.30 51.10
• Germany Markit Services PMI Final (Mar) 51.50 45.70
• Eurozone Markit Composite PMI Final (Mar) 53.20 48.80
• U.K. Markit/CIPS Composite PMI Final (Mar) 56.40 49.60
• U.S. MBA Mortgage Applications (02/Apr) -5.1% -2.2%
Thursday,
April 8, 2021
• Germany Factory Orders MoM (Feb) 1.2% 0.8%
• Japan Consumer Confidence (Mar) 36.10 33.80
• U.K. Construction PMI (Mar) 61.70 53.30
• U.S. Initial Jobless Claims (03/Apr) 744K 728K
Friday,
April 9, 2021
• China Inflation Rate YoY (Mar) 0.40% -0.20%
• China Vehicle Sales YoY (Mar) 74.9% 365.0%
• U.S. Wholesale Inventories MoM (Feb) 0.6% 1.4%
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17
The Week Ahead
12
th
Apr to 16
th
Apr
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18
Day Event
Monday,
Apr 12, 2021
• Japan Machine Tool Orders YoY (Mar)
• U.S. Consumer Inflation Expectations (Mar)
• India Industrial Production YoY (FEB)
• India Inflation Rate YoY (MAR)
Tuesday,
Apr 13, 2021
• China Exports YoY (Mar)
• U.K. GDP 3-Month Avg (Feb)
• Euro Zone ZEW Economic Sentiment Index (Apr)
Wednesday,
Apr 14, 2021
• Japan Machinery Orders YoY (Feb)
• Euro Zone Industrial Production YoY (Feb)
• U.S. Fed Beige Book
• India WPI Inflation YoY (MAR)
Thursday,
Apr 15, 2021
• Germany Inflation Rate YoY Final (Mar)
• U.S. Retail Sales MoM (Mar)
• U.S. Initial Jobless Claims (10/Apr)
• U.S. Industrial Production YoY (Mar)
Friday,
Apr 16, 2021
• China GDP Growth Rate YoY (Q1)
• China Industrial Production YoY (Mar)
• China Retail Sales YoY (Mar)
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
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