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NEWS U CAN USE
April 30, 2021
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
26
th
Apr to 30
th
Apr
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• Government data showed that India's infrastructure output rose 6.8% in Mar 2021 as
compared to contraction of 3.8% in Feb 2021 and contraction of 8.6% in Mar 2020. The
coal sector witnessed the maximum contraction of 21.9% followed by fertilizers and crude
oil which contracted 5.0% and 3.1%, respectively. The cement sector witnessed maximum
growth of 32.5% followed by steel and electricity which rose 23% and 21.6%, respectively.
For the period from Apr to Mar of 2021, India's infrastructure output contracted 7.0% as
compared to a growth of 0.4% in the same period of the previous year.
• According to the Labor Ministry, retail inflation for industrial workers rose 5.64% in Mar
2021 as compared to 4.48% in Feb 2021 and 5.50% in Mar 2020, mainly due to higher
prices of certain food items and fuel including petrol and cooking gas.
• According to the Asian Development Bank (ADB), in FY21, India's economy is projected to
rise by 11%, amid successful vaccine campaign. The ADB has warned that the rise in
COVID-19 cases could jeopardise India's economic recovery. India's GDP is expected to
grow at 7% in FY22.
• According to the Centre for Monitoring Indian Economy (CMIE), unemployment rates in
India in Apr 2021 stood at 8.2%, 8.6%, 8.4% and 7.4% in the first four weeks of the month.
As per CMIE, the monthly unemployment rate is likely to be close to 8% compared to 6.5%
in Mar 2021 with lower absorption of labour in the market.
3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4
Domestic Equity Market Indices
Indices 30-Apr-21 1 Week Return YTD Return
S&P BSE Sensex
48,782.36 1.89% 2.16%
Nifty 50
14,631.10 2.02% 4.64%
S&P BSE Mid-Cap
20,312.20 1.80% 13.21%
S&P BSE Small-Cap
21,670.11 3.17% 19.74%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
26-Apr-21 1281 664 1.93
27-Apr-21 1325 570 2.32
28-Apr-21 1204 716 1.68
29-Apr-21 867 1042 0.83
30-Apr-21 799 1087 0.74
Source: NSE
• Domestic equity markets rose on the
back of brisk buying in banking and
finance segments. Upbeat earning
numbers for the quarter ended Mar
2021 boosted market sentiments after
a major private sector bank reported
strong earning numbers. Positive global
cues further added to the gains after
the U.S. Federal Reserve kept interest
rates unchanged in its monetary policy
review and re-affirmed its
accommodative policy to support the
economic recovery.
• However, profit booking capped the
gains to some extent. The overall
market sentiment also remained muted
as a devastating second wave of the
COVID-19 pandemic showed no signs
of abating with the country
continuously reporting a record surge
in daily infections.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
32.10 32.21 58.01 74.96
P/B
3.25 4.19 3.04 2.95
Dividend Yield
0.82 1.00 0.92 0.83
Source: BSE, NSE Va
lue as on Apr 30, 2021
Indian Equity Market
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
21,667.80 0.26% -2.63%
S&P BSE Bankex
37,304.97 3.56% -2.07%
S&P BSE CD
32,324.53 2.96% -0.79%
S&P BSE CG
20,252.38 1.45% -4.36%
S&P BSE FMCG
12,508.59 -0.07% -1.82%
S&P BSE HC
23,530.70 0.90% 10.74%
S&P BSE IT
26,305.95 0.17% -1.62%
S&P BSE Metal
17,821.58 10.31% 24.70%
S&P BSE Oil & Gas
14,995.68 3.32% 1.04%
Source: Refinitiv *Value as on Apr 30, 2021
• On the sectoral front, all the indices closed in
the green barring the S&P BSE FMCG which
fell 0.07% over the week.
• S&P BSE Metal was the top gainer followed by
S&P BSE PSU and S&P BSE Bankex. S&P BSE
Metal rose due to a surge in steel, copper and
aluminium prices. Prices of steel are also on
the rise as the demand was better than
expected.
Indian Derivatives Market Review
• Nifty May 2021 Futures stood at 14,690.80, a premium of 59.70 points above the spot
closing of 14,631.10. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 219.20 lakh crore as against Rs. 185.45 lakh crore for the week to Apr 23.
• The Put-Call ratio stood at 0.87 compared with the previous week’s close of 0.82.
• The Nifty Put-Call ratio stood at 1.07 compared with the previous week’s close of 1.27.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
3.21 3.21 3.30 3.25
91 Day T-Bill
3.33 3.33 3.31 3.23
05.22% 2025, (5 Yr GOI)
5.38 5.38 5.59 5.17
05.85% 2030, (10 Yr GOI)
6.03 6.04 6.14 5.88
Source: Refinitiv Value as on Apr 30, 2021
• Bond yields rose as market participants
awaited the announcement of the next
open market purchase of government
securities by the Reserve Bank of India
(RBI). The overall market sentiment also
remained subdued as India continued to
witness an unprecedented surge in daily
COVID-19 infection cases.
• However, losses were neutralised after
the RBI announced special open market
operation (OMO) on Thursday.
• RBI announced Special Open Market
Operations (OMO) simultaneous
purchase and sale of government
securities for the notified amount of Rs.
10,000 crore each on May 06, 2021. RBI
will buy papers maturing 5, 7 and 10 year
and simultaneously sell two securities
maturing of 6 months.
Domestic Debt Market
6.00
6.04
6.07
26-Apr 27-Apr 28-Apr 29-Apr 30-Apr
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 3.86 4.58 73
3 Year 4.83 5.21 38
5 Year 5.49 6.26 77
10 Year 6.12 7.17 105
Source: Refinitiv Value as on
Apr 30, 2021
• Yields on gilt securities fell by up to 8 bps
across maturities, leaving 2-year paper that
rose 2 bps while 4- & 19-year papers were
unchanged. Yield fell the most on 7-year
paper.
• Corporate bond yields dropped by up to 23
bps across the curve, barring 1-, 10- & 15-year
papers by up to 5 bps.
• Spread between AAA corporate bond and gilt
contracted in the range of 7 to 23 bps on 2-
to 6-year papers while remaining securities
expanded by up to 8 bps.
Domestic Debt Market (Spread Analysis)
-7
-3
2
2.70
5.00
7.30
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 30-Apr-21 23-Apr-21
Yield in %
Change in bps
Source: Refinitiv
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• The Reserve Bank of India (RBI) has provided governance guidelines for banks, including
private sector banks, small finance banks (SFBs), and wholly owned foreign bank
subsidiaries. RBI has stated that the same person cannot hold the positions of MD and CEO
or WTD (whole-time director) for more than 15 years. After that, if the board deems it
appropriate and attractive, the person will be eligible for re-appointment as MD & CEO or
WTD in the same bank after a minimum of three years, subject to meeting other conditions.
The entity may not be named or affiliated with the bank or its group entities in any way,
either directly or indirectly, during the three-year cooling period. International banks with
branches in India would not be affected by the circular. Banks have until Oct 1, 2021 to put
the new strategy into effect.
• The Reserve Bank of India (RBI) has issued guidelines for statutory auditors to be appointed
by banks and NBFCs, including housing finance companies. The 'Guidelines for Appointment
of Statutory Central Auditors (SCAs)/ Statutory Auditors (SAs) of Commercial Banks
(excluding RRBs), UCBs, and NBFCs (including HFCs)' will be in effect beginning in FY22.
According to the guidelines, statutory audits for organisations with assets of Rs 15,000 crore
or more at the end of the previous year should be performed under joint audit by at least
two audit firms. A statutory auditor may be appointed to any bank with a balance sheet of
less than Rs 15,000 crore. Concurrent auditors, on the other hand, cannot be certified as
statutory auditors in either situation.
Regulatory Updates in India
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9
• SEBI has decided certain disclosures to be made to the investor only for the schemes in
which the unitholders are invested as on the date on which the disclosures are stipulated.
Accordingly, AMCs shall disclose risk-o-meter of the scheme and benchmark while
disclosing the performance of scheme vis-à-vis benchmark. Further, the mutual fund
houses shall also send the details of the scheme portfolio while communicating the
fortnightly, monthly and half-yearly statement of scheme portfolio via email. The same
shall be effective from Jun 1.
• SEBI has decided that a part of compensation of the Key Employees of the AMCs shall be
paid in the form of units of the schemes. Accordingly, a minimum of 20% of the salary/
perks/ bonus/ non-cash compensation (gross annual CTC) net of income tax and any
statutory contributions (i.e. PF and NPS) of the Key Employees of the AMCs shall be paid in
the form of units of Mutual Fund schemes in which they have a role/oversight. The
compensation paid in the form of units shall be proportionate to the AUM of the schemes
in which the key employee has a role/oversight.
• The commerce ministry announced the launch of a COVID-19 helpdesk to assist exporters
and importers with foreign trade concerns such as customs clearance delays and banking
issues. In light of the increase in COVID-19 instances, the Ministry of Foreign Affairs'
Directorate General of Foreign Trade (DGFT) took this initiative to monitor the status of
exports and imports, as well as the challenges faced by trade stakeholders.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• The U.S. Federal Reserve kept interest rates unchanged in its monetary policy review and
re-affirmed its accommodative policy to support the economic recovery. The Federal Open
Market Committee unanimously decided to make no changes in its approach even though
it noted that economic strength as well as inflation is on the rise.
• U.S. gross domestic product (GDP) rose 6.4% in the first quarter of 2021 after rising 4.3% in
the fourth quarter of 2020. According to the Department, consumer spending, non-
residential fixed investment, federal government spending, residential fixed investment,
and state and local government spending all contributed to GDP growth. Meanwhile,
reductions in private inventory expenditure and exports, as well as a rise in imports, which
are a subtraction in the GDP calculation, helped limit the upside.
• According to the flash estimate, eurozone’s inflation rose to 1.6% YoY in Apr 2021 from
1.3% YoY in Mar 2021. On a monthly basis, consumer price inflation rose 0.6% in Apr 2021.
• According to preliminary flash estimate, eurozone’s gross domestic product (GDP)
contracted 0.6% QoQ in the quarter ended Mar 2021 as against 0.7% QoQ fall in quarter
ended Dec 2020. On a yearly basis, GDP fell 1.8% in the quarter ended Mar 2021 slower
than 4.9% decrease in the Dec 2020.
• As was generally anticipated, the Bank of Japan kept its monetary stimulus unchanged at -
0.1% on current accounts that financial institutions maintain at the central bank. Despite
the constraints imposed by the COVID-19 pandemic, the bank downgraded its near-term
inflation outlook and increased its growth estimates.
10
Global News/Economy
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11
Global Indices
Indices
30-Apr-21
1-Week
Return
YTD
Return
Russell 3000 2,099.28 -0.56% 7.51%
Nasdaq 100 13,860.76 -0.58% 7.55%
FTSE 100 6,969.81 0.45% 7.88%
DAX Index 15,135.91 -0.94% 10.33%
Nikkei Average 28,812.63 -0.72% 4.99%
Straits Times 3,218.27 0.76% 13.17%
Source: Refinitiv Value as on Apr 30, 2021
U.S.
• U.S. equity markets fell during the week
under review as market participants
preferred to book profits from the
recent rally.
• However, overall market sentiment
remained upbeat after some major
companies in the technology segment
reported robust earning numbers for
the quarter ended Mar 2021. Upbeat
U.S. economic data also boosted
sentiments.
Europe
• European equity markets largely closed on a positive note as market participants grew
optimistic following a batch of strong corporate earnings numbers for the quarter ended
Mar 2021. However, data showing contraction in euro zone economic growth in the first
quarter of 2021 capped the gains.
Asia
• Asian equity markets fell during the week under review as growing COVID-19 infection
cases in emerging economies including India and Brazil dented market sentiments.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury rose 6
bps to close at 1.63% from the previous
week’s close of 1.57%.
• U.S. Treasury prices fell despite improved
demand for a $62 billion sale of seven-
year notes, and ahead of the U.S. Federal
Reserve (Fed) policy decision. Policy
decision stated that the U.S. Fed is
committed to continue with its ultra-
loose monetary policy as the economy is
still far from meeting the U.S. central
bank's employment and inflation goals.
• Treasury prices fell further after the U.S.
president proposed trillions of dollars in
new spending, and as data showed U.S.
economic growth accelerated in the Mar
quarter of 2021.
• However, losses were restricted at the
end on month-end portfolio rebalancing.
Global Debt (U.S.)
1.53
1.60
1.67
26-Apr 27-Apr 28-Apr 29-Apr 30-Apr
US 10-Year Treasury Yield Movement
Source: Refinitiv
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
13
Performance of various commodities
Commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel)
68.33 66.11
Gold ($/Oz)
1768.59 1777.18
Gold (Rs/10 gm)
47569 47569
Silver ($/Oz)
25.90 25.99
Silver (Rs/Kg)
69875 69875
Source: Refinitiv *Value as on Apr 30, 2021
Gold
• Gold prices fell as upbeat economic data
from U.S. and an increase in yield of U.S.
Treasuries dampened the non-yielding
appeal of the bullion.
Brent Crude
• Global crude oil prices rose as Organisation
of the Petroleum Exporting Countries
(OPEC+) plus, stuck to its plans for a
gradual easing of oil production curbs from
May to Jul of 2021.
• However, concerns over the impact of
rising COVID-19 infection cases in Brazil,
India and Japan capped the gains.
Baltic Dry Index
• The index rose during the week due to
improved capesize and panamax activities.
Commodities Market
9.00
9.50
10.00
10.50
11.00
11.50
30-Mar-21 15-Apr-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
-0.35%
3.36%
-0.48%
30-Apr-21
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
74.02 74.91
Pound Sterling
103.16 103.81
EURO
89.69 90.09
100 Yen
68.02 69.40
Source: Refinitiv Figures in INR , *
Value as on Apr 30, 2021
Rupee
• The Indian rupee rose against the greenback
following gains in the domestic equity market
and selling of the greenback by foreign banks.
Euro
• Euro weakened against the U.S. dollar after
upbeat data on personal income, spending, and
manufacturing in the U.S. Midwest.
Pound
• Sterling fell against the U.S. dollar on month-
end rebalancing of portfolios but downside was
limited after British retailers reported the
sharpest upturn in sales since 2018.
Yen
• Yen dropped against the U.S. dollar ahead of
the U.S. Fed policy decision. The U.S. central
bank committed to continue with its ultra-loose
monetary policy.
Currencies Markets
10.00
10.10
10.20
10.30
10.40
10.50
10.60
30-Mar-21 15-Apr-21
USD GBP Euro JPY
Source: Refinitiv
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
-0.44%
-0.62%
-1.19%
-1.99%
30-Apr-21
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
26
th
Apr to 30
th
Apr
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
16
The Week that was (Apr 26 – Apr 30)
Date Events Present Value Previous Value
Monday,
April 26, 2021
• U.S. Durable Goods Orders (Mar) 0.50% -0.90%
• Germany IFO – Business Climate (Apr) 96.8 96.6
• Japan Leading Economic Index(Feb) 98.7 99.7
Tuesday,
April 27, 2021
• U.S. Housing Price Index (MoM) (Feb) 0.90% 1%
• U.S. Redbook Index (YoY) (Apr 23) 13.90% 13.50%
Wednesday,
April 28, 2021
• Japan Retail Trade (YoY) (Mar) 5.20% -1.50%
• Germany Gfk Consumer Confidence Survey (May) -8.8 -6.1
Thursday
April 29, 2021
• Germany Harmonized Index of Consumer Prices (YoY)(Apr) PREL 2.10% 2%
• U.S. Gross Domestic Product Annualized (Q1) PREL 6.40% 4.30%
• Eurozone Consumer Confidence (Apr) -8.1 -10.8
• Germany Unemployment Rate (Apr) 6% 6%
Friday,
April 30, 2021
• China NBS Manufacturing PMI (Apr) 51.1 51.9
• Germany Gross Domestic Product (QoQ)(Q1) PREL -1.70% 0.30%
• Eurozone Consumer Price Index (YoY)(Apr) PREL 1.60% 1.30%
• Eurozone Gross Domestic Product (QoQ)(Q1) PREL -1.80% -4.90%
• U.S. Personal Income (MoM)(Mar) 21.10% -7%
• Eurozone Unemployment Rate (Mar) 8.10% 8.20%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
03
rd
May to 07
th
May
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
Day Event
Monday,
May 03, 2021
• Germany Retail Sales (YoY) (Mar)
• U.S. ISM Manufacturing PMI (Apr)
Tuesday,
May 04, 2021
• U.K. Markit Manufacturing PMI (Apr)
• U.S. Goods and Services Trade Balance (Mar)
• U.S. Factory Orders (MoM) (Mar)
Wednesday,
May 05, 2021
• U.S. ADP Employment Change (Apr)
• U.S. ISM Services PMI (Apr)
Thursday,
May 06, 2021
• Bank of England Interest Rate Decision
• Bank of Japan Monetary Policy Meeting Minutes
• Eurozone Retail Sales (YoY) (Mar)
Friday,
May 07, 2021
• U.S. Nonfarm Payrolls (Apr)
• U.S. Unemployment Rate (Apr)
• China Trade Balance (USD) (Apr)
• Germany Trade Balance (Mar)
The Week Ahead
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
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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
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19
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