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NEWS U CAN USE
April 16, 2021
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The Week that was…
12
th
Apr to 16
th
Apr
2
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Indian Economy
• Government data showed that the Index of Industrial Production (IIP) witnessed
contraction of 3.6% in Feb 2021 as compared to contraction of 0.9% in Jan 2021 and
growth of 5.2% in Feb 2020. The manufacturing sector witnessed a contraction of 3.7% in
Feb 2021 as compared to the growth of 3.8% in the same period of the previous year.
• Government data showed that the Consumer Price Index based inflation (CPI) rose to
5.52% in Mar 2021 from 5.03% in Feb 2021. The Consumer Food Price Index also rose to
4.94% in Mar 2021 from 3.87% in Feb 2021. CPI Inflation for vegetables fell 4.83% while
that of oils and fats witnessed a growth of 24.92%. CPI inflation for pulses and products
stood at 13.25% during the month under review.
• Government data showed that the wholesale price index (WPI) based inflation rose 7.39%
in Mar 2021 from 4.17% in the previous month and 2.51% in Jan 2021. The WPI Food Index
rose 5.28% in Mar 2021 from 3.31% in the previous month and contraction of 0.26% in Jan
2021.
• Government data showed that India’s trade deficit widened to $13.93 billion in Mar 2021
from $9.98 billion in the same period of the previous year. Exports grew 60.29% over the
year to $34.45 billion in Mar 2021 from $21.49 billion in Mar 2020. Imports rose 53.74%
over the year to $48.38 billion in Mar 2021 from $31.47 billion in Mar 2020. For the period
from Apr 2020 to Mar 2021, trade deficit narrowed sharply to $98.56 billion from $161.35
billion in the same period of the previous year. Imports fell 18.02% on a yearly basis during
the period from Apr 2020 to Mar 2021 while exports came down 7.26%.
3
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4
Domestic Equity Market Indices
Indices 16-Apr-21 1 Week Return YTD Return
S&P BSE Sensex
48,832.03 -1.53% 2.26%
Nifty 50
14,617.85 -1.46% 4.55%
S&P BSE Mid-Cap
20,157.36 -2.91% 12.35%
S&P BSE Small-Cap
21,018.55 -2.68% 16.14%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
12-Apr-21 229 1,781 0.13
13-Apr-21 1,407 519 2.71
15-Apr-21 754 1,166 0.65
16-Apr-21 1,133 763 1.48
Source: NSE
• Indian equity markets ended the week
with modest losses. Bourses took a hit
as record daily cases of COVID-19
infections raised concerns that the
government may go for stricter
lockdowns to curb the second wave of
coronavirus infection.
• Market participants continued to
maintain cautious stance with the
COVID-19 situation in the country
getting grimmer day by day.
• Factors which cushioned the fall
include reports of government moving
to fast-track approvals for foreign
COVID-19 vaccines. Stock specific
movements also supported gains with
market participants keenly tracking the
corporate earning numbers for the
quarter ended Mar 2021.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
33.95 32.84 57.71 79.01
P/B
3.31 4.18 3.03 2.88
Dividend Yield
0.74 0.98 0.91 0.83
Source: BSE, NSE Va
lue as on Apr 16, 2021
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
22,129.0 -1.11% -5.29%
S&P BSE Bankex
36,287.3 -1.31% -7.48%
S&P BSE CD
32,430.2 -2.56% -2.18%
S&P BSE CG
20,429.4 -3.11% -6.78%
S&P BSE FMCG
12,918.8 -1.10% 4.78%
S&P BSE HC
23,006.9 1.24% 8.99%
S&P BSE IT
26,829.8 -4.45% 0.39%
S&P BSE Metal
16,107.0 -0.31% 15.16%
S&P BSE Oil & Gas
14,749.6 -1.22% -6.16%
Source: Refinitiv *Value as on Apr 16, 2021
• On the BSE sectoral front, barring S&P BSE
Healthcare all the major sectors closed in the
red. S&P BSE Realty was the major loser, down
5.94%, followed by S&P BSE IT and S&P BSE
Teck, which slipped 4.45% and 4.02%,
respectively. S&P BSE Capital Goods and S&P
BSE Consumer Durables fell 3.11% and 2.56%,
respectively.
Indian Derivatives Market Review
• Nifty Apr 2021 Futures stood at 14,645.70, a premium of 27.85 points above the spot
closing of 14,617.85. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 192.51 lakh crore as against Rs. 215.79 lakh crore for the week to Apr 9.
• The Put-Call ratio stood at 0.88 compared with the previous week’s close of 0.92.
• The Nifty Put-Call ratio stood at 1.38 compared with the previous week’s close of 1.29.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
3.25 3.15 3.27 3.36
91 Day T-Bill
3.34 3.34 3.35 3.24
05.22% 2025, (5 Yr GOI)
5.55 5.54 5.74 5.27
05.85% 2030, (10 Yr GOI)
6.09 6.02 6.18 --
Source: Refinitiv Value as on Apr 16, 2021
• Bond yields rose in a holiday truncated
week as market participants were
disappointed after the Reserve Bank of
India’s (RBI) open market operations
purchase worth Rs. 25,000 crore under
its so-called government securities
acquisition program. Losses were
restricted after government cancelled
the auction of the 10 year benchmark
paper, leading to short covering.
• Yield on the 10-year benchmark paper
(5.85% GS 2030) rose 7 bps to close at
6.09% from the previous week’s close of
6.02%.
• According to the RBI’s data released in
the weekly statistical supplement, India’s
foreign exchange reserves rose $4.344
billion to $581.213 billion in the week
ended Apr 09, 2021 from $ 576.869
billion in the previous week.
Domestic Debt Market
5.98
6.08
6.18
12-Apr 15-Apr 16-Apr
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 4.04 4.61 57
3 Year 5.04 5.51 47
5 Year 5.69 6.54 85
10 Year 6.18 7.39 121
Source: Refinitiv Value as on
Apr 16, 2021
• Yields on gilt securities rose by up to 12 bps
across maturities, leaving 1-year paper that
fell 7 bps and 3- & 30-year papers that were
steady. Yield rose the most on 14-year paper.
• Corporate bond yields rose in the range of 3
to 22 bps across the curve, barring 1-, 2- & 15-
year papers that rose 10, 7 & 13 bps,
respectively.
• Spread between AAA corporate bond and gilt
expanded in the range of 9 to 22 bps on 3- to
7-year papers while remaining securities
contracted in the range of 2 to 21 bps.
Domestic Debt Market (Spread Analysis)
-10
-5
0
5
10
15
3.00
5.00
7.00
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 19 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 16-Apr-21 09-Apr-21
Yield in %
Change in bps
Source: Refinitiv
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8
• Capital market regulator Securities and Exchange Board of India (SEBI) issued guidelines for
preparing warehousing norms by clearing corporations for agricultural, agri-processed, base
and industrial metals goods. The objective of the move is to bring in uniformity, improve the
ease of doing business within the country and rationalize regulatory compliance cost,
among other aspects. The guidelines would come into effect from Jun 1, 2021.
• The Department of Telecom successfully completed the assignment of frequencies to
successful bidders of the Spectrum Auction, 2021. Harmonization of spectrum was also
accomplished along with frequency assignments. An amount of Rs. 2,306.97 crore was
received in advance from bidders by assigning spectrum immediately, rather than at a later
date.
• According to reports, the Ministry of Finance has expanded the scope of the Rs. 3 lakh crore
Emergency Credit Line Guarantee Scheme (ECLGS). The scheme will now cover borrowers
from the healthcare segment, apart from the 26 sectors identified by the Kamath
Committee.
• According to media reports, IRDAI has notified restrictions and regulations for insurance
companies on advertising policies to safeguard consumer interests. The insurance regulator
wants the advertisement to be relevant, fair and written in simple language so that
customers can make an informed decision. In case a policy buyer fails to identify the product
as insurance in any advertisement or describes benefits that do not match the policy
provisions, it will be termed unfair or misleading advertisement.
Regulatory Updates in India
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9
• According to reports, the Ministry of Finance proposed that insurance companies with
foreign ownership of more than 49% need to maintain a solvency margin of 180% if they
declare dividend payments in a financial year. If insurance companies repatriate profit in
the form of dividend to their shareholders but is unable to meet the 180% margin, they
will have to set aside 50% of their net profit in a general reserve.
• The Union Agriculture Ministry has signed an agreement with Microsoft to run a pilot
program in 100 villages across six states to assist farmers in lowering input costs and
increasing income. According to the agriculture minister, new technology would assist in
making agriculture productive as well as attracting youth to farming.
• The government has cut the annual marking fee for a new Bureau of Indian Standards (BIS)
license and certification by 50% for micro-industry, startups and women entrepreneurs. It
also mentioned that BIS services are now available to all at no cost and can be downloaded
from the e-BIS standardization portal. BIS a government quality standards-setting body,
issues licenses with a standard mark to help identify the unit, which has manufactured the
product at a specific location.
• According to the Ministry of External Affairs, India and France discussed ways to enhance
bilateral cooperation in the Indo-Pacific, including through a trilateral mechanism with
Australia to resolve emerging maritime and space challenges.
Regulatory Updates in India (contd..)
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• According to the National Bureau of Statistics, China’s gross domestic product (GDP) rose
18.3% YoY in the first quarter of 2021 as against 6.5% rise posted in the preceding quarter.
The increase in GDP was largely due to the incredibly low base of reference, as the
pandemic hit the economy around the same period last year. On quarterly basis, GDP rose
0.6% in the first quarter of 2021.
• Data from the University of Michigan showed that the U.S. consumer sentiment index rose
to 86.5 in Apr 2021 after rising to 84.9 in Mar 2021. The consumer sentiment index thus
reached its highest level since hitting 89.1 in Mar 2020 even though the increase was
smaller than expected.
• Data from the U.S. Commerce Department showed that housing starts in U.S. rose 19.4%
to an annual rate of 1.739 million in Mar 2021 after coming down by 11.3% to a revised
rate of 1.457 million in Feb 2021 (1.421 million originally reported for the previous month).
The housing starts thus reached their highest level since hitting an annual rate of 1.802
million in Jun 2006.
• According to the data from the Eurostat, eurozone retail sales rose 3% MoM in Feb 2021 as
against 5.2% in Jan 2021 (revised from 5.9%). On yearly basis, retail sales fell 2.9% in Feb as
against 5.2% decline in the previous month.
• According to data from customs office, China’s exports rose 30.6% YoY in Mar 2021 as
against 60.6% rise in Feb 2021. Meanwhile, imports rose 38.1% YoY in Mar as against
22.2% rise in Feb. Consequently, the trade surplus fell to $13.8 billion in Mar 2021.
10
Global News/Economy
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11
Global Indices
Indices
16-Apr-21
1-Week
Return
YTD
Return
Russell 3000 2,113.56 1.70% 8.24%
Nasdaq 100 14,041.91 1.42% 8.95%
FTSE 100 7,019.53 1.50% 8.65%
DAX Index 15,459.75 1.48% 12.69%
Nikkei Average 29,683.37 -0.28% 8.16%
Straits Times 3,201.76 0.54% 12.59%
Source: Refinitiv Value as on Apr 16, 2021
U.S.
• U.S. markets went up, led by a batch of
largely upbeat U.S. economic data,
including retail sales that surged by
much more than expected in Mar 2021.
Nonetheless, gains were largely
restricted by worries about increase in
coronavirus cases in several countries
across the world and possibility of fresh
lockdown measures at several places.
Europe
• European markets rose as market participants reacted positively to a slew of quarterly
earnings results and encouraging economic data from U.S., eurozone and Asia. U.S.
treasury yields fell following dovish comments from the U.S. Federal Reserve Chairman,
which further boosted market sentiments.
Asia
• Asian markets witnessed a mixed trend as concerns over U.S.-China tension was
neutralized by a series of upbeat U.S. economic data coupled with the encouraging
Chinese GDP data, which instilled confidence over solid global economic recovery.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury fell 10
bps to close at 1.57%, from the previous
week’s close of 1.67%.
• U.S. Treasury prices rose on solid demand
for a 30-year bond auction.
• Treasury prices surged further to one-
month highs on possible safe-haven
appeal amid increased U.S.-Russia
tensions and buying by Japanese
investors.
• However, a batch of largely upbeat U.S.
economic data, including retail sales that
surged by much more than expected in
Mar 2021 capped the gains.
Global Debt (U.S.)
1.45
1.50
1.55
1.60
1.65
1.70
12-Apr 13-Apr 14-Apr 15-Apr 16-Apr
Yield in %
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)
65.78 61.60
Gold ($/Oz)
1776.31 1743.10
Gold (Rs/10 gm)
47,021 46,284
Silver ($/Oz)
25.96 25.24
Silver (Rs/Kg)
68,970 66,994
Source: Refinitiv *Value as on Apr 16, 2021
Gold
• Gold prices rose after key U.S. Federal
Reserve officials indicated that high
inflation will not affect monetary policy
and the U.S. Federal Reserve will keep its
support in place until the COVID-19 crisis is
over.
Brent Crude
• Brent crude prices rose after the
International Energy Agency (IEA) and
Organization of the Petroleum Exporting
Countries (OPEC) upgraded forecasts for
oil demand as major economies continue
recovery from the pandemic. However,
profit booking capped the gains.
Baltic Dry Index
• The index rose WoW due to improved
capesize and panamax activities.
Commodities Market
8.70
9.30
9.90
10.50
16-Mar-21 31-Mar-21 15-Apr-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
2.83%
6.79%
1.91%
16-Apr-21
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
74.56 74.89
Pound Sterling
102.44 102.62
EURO
89.19 89.04
100 Yen
68.49 68.43
Source: Refinitiv Figures in INR , *
Value as on Apr 16, 2021
Rupee
• The Indian rupee rose against the U.S. dollar
following state-run banks’ greenback sales,
likely on behalf of the RBI. However, continuous
increase in coronavirus cases in India deepened
uncertainty of a delay in economic recovery
which capped the gains.
Euro
• Euro rose against the weak U.S. dollar following
decline on the U.S treasury yields which
reduced the attractiveness of the greenback.
Pound
• Pound strengthened against the U.S. dollar on
easing of some lockdown measures in U.K. and
the pace of Britain's vaccine rollout.
Yen
• Yen gained notably against the weak U.S. dollar
following decline on the U.S treasury yields and
strong gains in U.S. inflation in Mar 2021.
Currencies Markets
9.80
9.90
10.00
10.10
10.20
10.30
10.40
10.50
16-Mar-21 31-Mar-21 15-Apr-21
USD GBP Euro JPY
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
- 0.44%
-0.17%
0.16%
0.09%
Source: Refinitiv
16-Apr-21
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15
The Week that was…
12
th
Apr to 16
th
Apr
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16
The Week that was (Apr 12 – Apr 16)
Date Events Present Value Previous Value
Monday,
April 12, 2021
• Euro Zone Retail Sales YoY (Feb) -2.90% -5.20%
• China New Yuan Loans (Mar)
¥
2730B ¥1360B
• Japan Bank Lending YoY (Mar) 6.30% 6.20%
Tuesday,
April 13, 2021
• China Exports YoY (Mar) 30.6% 60.6%
• China Imports YoY (Mar) 38.1% 22.2%
• U.K. GDP YoY (Feb) -7.8% -8.5%
• Germany ZEW Economic Sentiment Index (Apr) 70.7 76.6
• U.S. Inflation Rate YoY (Mar) 2.6% 1.7%
Wednesday,
April 14, 2021
• Japan Machinery Orders YoY (Feb) -7.1% 1.5%
• Euro Zone Industrial Production YoY (Feb) -1.60% 0.10%
Thursday,
April 15, 2021
• Germany Inflation Rate YoY Final (Mar) 1.70% 1.30%
• U.S. Retail Sales MoM (Mar) 9.80% -2.70%
• U.S. Initial Jobless Claims (Apr 10) 576K 769K
• U.S. Industrial Production MoM (Mar) 1.40% -2.60%
Friday,
April 16, 2021
• China GDP Growth Rate YoY (Q1) 18.30% 6.50%
• China GDP Growth Rate QoQ (Q1) 0.60% 3.20%
• China Industrial Production YoY (Mar) 14.10% 35.10%
• China Retail Sales YoY (Mar) 34.20% 33.80%
• Euro Zone Core Inflation Rate YoY Final (Mar) 0.90% 1.10%
• U.S. Michigan Consumer Sentiment Prel (Apr) 86.50 84.90
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17
The Week Ahead
19
th
Apr to 23
rd
Apr
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18
Day Event
Monday,
Apr 19, 2021
• Japan Exports YoY (Mar)
• Japan Imports YoY (Mar)
• Japan Industrial Production MoM Final (Feb)
• Euro Zone Construction Output YoY (Feb)
Tuesday,
Apr 20, 2021
• U.K. Employment Change (Jan)
• Japan Tertiary Industry Index MoM (Feb)
• Germany PPI YoY (Mar)
Wednesday,
Apr 21, 2021
• U.K. Inflation Rate YoY (Mar)
• U.K. Core Inflation Rate YoY (Mar)
• U.S. MBA Mortgage Applications (Apr 16)
Thursday,
Apr 22, 2021
• European Central Bank Monetary Policy
• U.S. Initial Jobless Claims (Apr 17)
• U.S. Existing Home Sales MoM (Mar)
Friday,
Apr 23, 2021
• U.S. Markit Manufacturing PMI Flash (Apr)
• Euro Zone Markit Manufacturing PMI Flash (Apr)
• Japan Jibun Bank Manufacturing PMI Flash (Apr)
• U.S. New Home Sales MoM (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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