Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
NEWS U CAN USE
Dec 27, 2019
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
23
rd
Dec to 27
th
Dec
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• The International Monetary Fund (IMF) has said India is in the middle of a significant
economic slowdown and urged the government to take policy actions to address the
downturn. IMF said India has limited room for fiscal stimulus and stressed the need for
fiscal consolidation as it has one of the highest debt among the emerging markets. The
banks said India's public sector needs an estimated amount equivalent to around 8.5% of
GDP in order to pay for the services it provides.
• A committee of officers from the Centre and states, formed to review the goods and
services tax (GST), has recommended selective taxation on education and health, media
reports showed. The committee, which made presentation before the GST Council on Dec
18, 2019, also suggested pruning of exempt list for raising resources. Meat, fish, eggs,
honey, milk products, vegetables, fruits and dry fruits are some of the items that come
under the exempt list.
• According to the Telecom Regulatory Authority of India (TRAI), the volume of total
wireless data usage increased from 828 million GB during 2014 to 46,404 million GB during
2018. The usage in 2019 has already touched 54,917 million GB till Sep 2019. Total number
of wireless data subscribers increased from 281.58 million at the end of 2014 to 664.80
million at the end of Sep 2019, a yearly growth rate of 36.36% in 2018 over 2017 YoY.
3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4
Domestic Equity Market Indices
Indices
27-Dec-19
1 Week Return
YTD Return
S&P BSE Sensex
41,575.14 -0.26% 15.27%
Nifty 50
12,245.80 -0.21% 12.73%
S&P BSE Mid
-Cap 14,929.22 0.63% -3.30%
S&P BSE Small
-Cap 13,547.81 1.17% -7.88%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date
Advances
Declines
Advance/Decline Ratio
23-Dec-19 826 1020 0.81
24-Dec-19 828 999 0.83
26-Dec-19 987 852 1.16
27-Dec-19 1137 703 1.62
Source: NSE
• Indian equity markets were subdued in
the holiday-truncated week ended Dec
27, 2019. The week started on a weak
note as nation-wide protests against a
citizen bill refused to slow down with
increasing protests and casualties.
Investors were also cautious ahead of
the upcoming expiration of near-month
derivative contracts.
• The markets saw profit-booking by
investors and cautious over the
government’s fiscal math due to the
delay in divestments planned for FY20.
• The last day of the week gains returned
to the bourses, snapping a three-session
losing streak. The government infusing
funds into a few public sector banks,
positive global cues and continued
optimism about U.S.-China phase one
trade deal supported sentiment.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
26.13 28.48 28.58 44.74
P/B
3.23 3.78 2.36 1.92
Dividend Yield
1.02 1.23 1.10 1.12
Source: NSE,BSE
Value as on Dec 27, 2019
Indian Equity Market
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
5
Sectoral Indices
Indices
Last Returns (in %)
Closing* 1-Wk 1-Mth
S&P BSE Auto
18,392.29 1.02% 0.22%
S&P BSE Bankex
36,961.63 0.28% 2.36%
S&P BSE CD
25,011.56 0.07% 0.65%
S&P BSE CG
16,944.80 -0.67% -2.64%
S&P BSE FMCG
11,421.83 -0.69% -3.35%
S&P BSE HC
13,416.30 0.14% -1.69%
S&P BSE IT
15,619.96 -0.26% 4.99%
S&P BSE Metal
10,289.21 1.87% 6.08%
S&P BSE Oil & Gas
14,799.08 -0.46% -2.65%
Source: BSE * Value as on Dec 27, 2
019
• S&P BSE FMCG was the major loser, down
0.69% followed by S&P BSE Capital Goods,
down 0.67% and S&P BSE Oil & Gas, down
0.46%. S&P BSE Metal was the major gainer,
up 1.87%.
• The oil & gas sector lost as an industry leader’s
PMT fields were taken over physically by a
state-owned oil company. The metal sector
gained on trade optimism after the U.S. and
China agreed on a phase one deal, which could
be signed right at the beginning of the new
year.
Indian Derivatives Market Review
• Nifty Dec 2019 Futures stood at 12,126.55, a discount of 119.25 points below the spot
closing of 12,245.80. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 54.36 lakh crore as against Rs. 67.43 lakh crore for the week to Dec 20.
• The Put-Call ratio stood at 0.82 against the previous week’s close of 0.91.
• The Nifty Put-Call ratio stood at 1.16 against the previous week’s close of 1.73.
Indian Equity Market (contd.)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
6
Debt Indicators
(%)
Current
Value
1-
Wk
Ago
1-
Mth
Ago
6-
Mth
Ago
Call Rate
5.11 5.09 5.02 5.73
91 Day T
-Bill
5.02 5.04 5.02 5.99
07.32% 2024, (5
Yr GOI)
6.44 6.43 6.20 6.78
06.45% 2029, (10 Yr GOI)
6.51 6.60 6.47 6.90
Source: Thomson Reuters Eikon
Value as on Dec 27, 2019
• Bond yields fell after the Reserve Bank
of India (RBI) announced a second
round of special open market
operations (OMO). RBI announced to
buy the federal government’s 10-year
benchmark bond and sell one-year
notes worth up to Rs. 100 billion
through a special open market
operation on Dec 30.
• RBI’s second special open market
operation boosted demand despite
persistent fiscal concerns. However,
gains were capped as market
participants resorted to profit booking
from the recent bond rally.
• Yield on the 10-year benchmark paper
(6.45% GS 2029) fell 9 bps to close at
6.51% compared with the previous
week’s close of 6.60% after trading in
a range of 6.50% to 6.61%.
Domestic Debt Market
6.00
6.35
6.70
23-Dec 24-Dec 26-Dec 27-Dec
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 5.77 6.82 105
3 Year 6.42 7.43 101
5 Year 6.56 7.77 121
10 Year 6.61 7.89 129
Source: Thomson Reuters Eikon
Value as on Dec 27, 2019
• Yields on gilt securities plunged across the
maturities in the range of 12 to 29 bps,
barring 1 & 2-year papers that increased
29 & 1 bps, respectively.
• Corporate bond yields dropped across the
curve in the range of 8 to 28 bps, barring 1
& 2-year papers that increased 5 & 4 bps,
respectively.
• Spread between AAA corporate bond and
gilt contracted across segments by up to
24 bps, leaving 3- & 15-year papers that
expanded 4 & 10 bps.
Domestic Debt Market (Spread Analysis)
-20
0
20
4.50
6.00
7.50
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 27-Dec-19 20-Dec-19
Yield
in %
Change
in bps
Source: Thomson Reuters Eikon
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• The Pension Fund Regulatory and Development Authority of India (PFRDA) wants the
government to double the tax benefit under the NPS to Rs. 1 lakh in the upcoming budget,
media reports showed. PFRDA also urged to extend the facility of tax free contribution of
14% by the central government to its employees under the NPS to all categories of
subscribers.
• A Reserve Bank of India (RBI) report has said in the coming years, the financial health of
public sector banks (PSBs) should increasingly be assessed by their ability to access capital
markets instead of the tendency to depend excessively on the government.
• Media reports showed the Reserve Bank of India (RBI) has asked lenders to cut their stakes
in insurers to 30%. This is being done to protect banks from risks arising out of their non-
banking businesses. It will also help focus on boosting credit growth in a slowing economy.
The holding limit will be 50% for non-banking financial companies that have insurance units.
Banks have been told to await RBI’s official communication on the new rules, the report
said.
Regulatory Updates in India
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9
• The Union Cabinet has approved the country’s 16th Census exercise to count the
population. A simultaneous exercise to prepare the National Population Register (NPR)
will also be undertaken in Apr 2020. The 2011 Census had pegged India’s population at
1.21 billion—a 17.6% rise from 2001. The Cabinet has allocated Rs. 13,000 crore for
updating the Census and the NPR. The NPR, started in 2010, was last updated in 2015.
• The government launched a good governance index (GGI) to assess the state of
governance in the country, media reports showed. GGI’s objectives will be to provide data
to compare the state of governance in all states and Union territories, help them to
formulate and implement suitable strategies for improving governance and shift to result
oriented approaches and administration.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• A Commerce Department report showed an unexpected slump in new orders for U.S.
manufactured durable goods in Nov 2019 by 2.0% in Nov 2019 after edging up 0.2% in Oct
2019.
• A University of Michigan report showed consumer sentiment in the U.S. improved by
slightly more than initially estimated in Dec 2019. Consumer sentiment index for Dec came
in at 99.3 from the preliminary reading of 99.2.
• Data from Destatis showed Germany's import prices declined at a slower pace in Nov 2019
on weak energy prices. On a yearly basis, import prices decreased by 2.1%, following a
3.5% fall in Oct 2019.
• Minutes of Bank of Japan’s (BoJ) policy board meeting held on Oct 30 and 31, 2019,
showed a few board members are of the view that the central bank should not only
conduct monetary policy but also enhance its cooperation with the government in terms of
economic policies and prepare for the next economic downturn. A different member
pointed out that BoJ should continue to examine whether additional monetary easing
would be necessary.
• Figures from the Ministry of Economy, Trade and Industry showed Japan's all industry
activity dropped for the first time in four months in Oct 2019. The all industry activity index
fell 4.3% MoM Oct, after a 1.9% rise in Sep 2019.
10
Global News/Economy
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
11
Global Indices
Indices
27-Dec-19
1-Week
Return
YTD
Return
Russell 3000
1,432.36 0.82% 34.79%
Nasdaq 100
8,770.98 1.07% 38.56%
FTSE 100
13,337.11 75.89% 98.23%
DAX Index
13,361.56 0.32% 26.54%
Nikkei Average
23,837.72 0.09% 19.10%
Straits Times
3,226.53 0.44% 5.14%
Source: Thomson Reuters Eikon
Value as on Dec 27, 2019
U.S.
• U.S. markets gained in the week ended
Dec 27, 2019. Sentiment was boosted
by trade optimism as U.S. and China
finally signed a phase one deal.
Investors hoped that the new year could
bring an end to the trade tensions that
have been hampering global economic
growth.
Europe
• European markets gained in the week ended Dec 27, 2019. Markets touched all-time highs
in a couple of sessions in a Christmas holiday thin-trading week. The U.S.-China trade deal
fuelled the rally. Sentiment has been buoyed ever since the two countries reached a phase
one trade agreement, which could be signed in early Jan 2020.
Asia
• Asian equity markets gained in the period. China announced plans to lower tariffs on a
variety of U.S. products and U.S. President said an initial U.S.-China trade pact would be
signed soon.
Global Equity Markets
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
12
• Yields on the 10-year U.S. Treasury
Treasuries fell 4 bps to close at 1.88%
compared to the previous week’s close
of 1.92%.
• U.S. Treasury prices fell initially as
investor risk sentiment improved amid
optimism that the U.S. and China could
finalize a trade agreement.
• However, the trend reversed soon
following strong demand at a five year
note auction and seven year note
auction which boosted the prices of U.S.
Treasuries. U.S. Treasury prices rose
further as their demand increased for
year-end portfolio rebalancing.
Global Debt (U.S.)
1.86
1.91
1.96
23-Dec 24-Dec 25-Dec 26-Dec 27-Dec
US 10-Year Treasury Yield Movement
Source: Thomson Reuters Eikon
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($/Barrel)
70.65 70.50
Gold ($/Oz)
1,510.42 1,477.95
Gold (Rs/10 gm)
38,791 37,957
Silver ($/Oz)
17.75 17.19
Silver (Rs/Kg)
46,192 44,222
Source: Thomson Reuters Eikon *
Value as on
Dec 27, 2019
Gold
• Gold prices surged as its safe haven
appeal improved due to persisting
uncertainty over the signing of a phase
one trade deal by U.S. and China.
Brent Crude
• Brent crude prices grew after Russia said
cooperation with OPEC on supply cuts
would continue and amid optimism that
the U.S. and China could finalize a trade
agreement. Gains were extended
following reports from the American
Petroleum Institute as per which U.S.
crude stocks fell by 7.9 million barrels
for the week ended Dec 18, 2019.
Baltic Dry Index
• The Baltic Dry Index fell due to lower
capesize and panamax activities.
Commodities Market
9.20
9.60
10.00
10.40
10.80
11.20
27-Nov-19 7-Dec-19 17-Dec-19 27-Dec-19
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Source: Thomson Reuters Eikon
Currency
Prices (
in terms of INR)
Rebased to 10
Currency Movement
0.21%
2.20%
3.26%
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
71.22 71.16
Pound Sterling
92.55 92.62
EURO
79.19 79.11
100 Yen
65.04 65.09
Source: RBI Figures in INR , *
Value as on
Dec 27, 2019
Rupee
• The rupee marginally gained against the
greenback following greenback sales.
However, gains were restricted following
losses in the domestic equity market and
surge in global crude oil prices.
Euro
• The euro strengthened against the
greenback as market participants resorted to
bargain hunting before the end of the year.
Pound
• Pound gained against the greenback as
European Commission President stated that
European Union may need to extend the
deadline for talks about a new trade
relationship with Britain.
Yen
• Yen weakened against the greenback
following upbeat U.S. industrial output data
and housing data for Nov 2019.
Currencies Markets
9.33
10.00
10.67
27-Nov-19 7-Dec-19 17-Dec-19 27-Dec-19
USD GBP Euro JPY
Source: Thomson Reuters Eikon
Currency
Prices (
in terms of INR)
Rebased to 10
Currency Movement
-0.07%
0.09%
-0.08%
0.10%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
23
rd
Dec to 27
th
Dec
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
16
The Week that was (Dec 23 –Dec 27)
Date Events
Present
Value
Previous
Value
Monday,
December 23, 2019
• Japan Leading Economic Index (Oct)
91.60 91.80
• Japan All Industry Activity Index (MoM) (Oct)
-4.3% 1.5%
• U.S. Durable Goods Orders (Nov)
-2.0% 0.2%
• U.S. New Home Sales Change (MoM) (Nov)
1.3% -2.7%
• U.S. Chicago Fed National Activity Index (Nov)
0.56 -0.76
• Germany Import Price Index (YoY) (Nov)
-2.1 % -3.5%
Tuesday,
December 24, 2019
• U.S. Redbook Index (YoY) (Dec 20)
6.2% 4.6%
• U.S. Richmond Fed Manufacturing Index (Dec)
-5.00 -1.00
• Japan Corporate Service Price Index (YoY) (Nov)
2.1% 2.1%
Wednesday,
December 26, 2019
• Japan Construction Orders (YoY) (Nov)
-1.2% 6.4%
• Japan Housing Starts (YoY) (Nov)
-12.7% -7.4%
• U.S. Initial Jobless Claims (Dec 20)
222 K 235 K
Thursday,
December 27, 2019
• Japan Unemployment Rate (Nov)
2.2% 2.4%
• Japan Retail Trade (YoY) (Nov)
-2.1% -7.0%
• Japan Industrial Production (YoY) (Nov) (P)
-8.1% -7.7%
• China Industrial Profits (YoY) (Nov)
5.4% -9.9%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
30
th
Dec to 3
rd
Jan
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
Day Event
Monday,
Dec 30, 2019
•
U.S. Wholesale Inventories Nov 2019 (P)
•
U.K. BBA Mortgage Approvals (Nov)
•
Germany Retail Sales (MoM) (Nov)
Tuesday,
Dec 31, 2019
•
China NBS Manufacturing PMI Dec 2019
•
China NBS Non-Manufacturing PMI Dec 2019
•
China Composite PMI Dec 2019
•
U.S. Housing Price Index (MoM) (Oct)
Wednesday,
Jan 01, 2020
•
India M3 Money Supply (Dec 16)
•
Japan Vehicle Sales (YoY) (Dec)
Thursday,
Jan 02, 2020
•
Euro Zone Markit Manufacturing Final PMI Dec 2019
•
Germany Markit Manufacturing Final PMI Dec 2019
•
China Caixin Manufacturing PMI (Dec)
•
U.K. Markit/CIPS Manufacturing PMI Dec 2019
•
U.S. Markit Manufacturing PMI Final Dec 2019
Friday,
Jan 03, 2020
•
U.K. Markit/CIPS Construction PMI Dec 2019
•
U.S. ISM Manufacturing PMI Dec 2019
•
Germany CPI (MOM) Dec 2019 (P)
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 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.
19
Disclaimer
Thank you for
your time.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Thank you for
your time.
