Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
NEWS U CAN USE
February 12, 2021
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
08
th
Feb to 12
th
Feb
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• Government data showed that the Index of Industrial Production (IIP) witnessed a growth
of 1.0% in Dec 2020 as compared to a growth of 0.4% in the same period of the previous
year. The manufacturing sector grew 1.6% in Dec 2020 as compared to a contraction of
0.3% in the same period of the previous year while the electricity sector witnessed a
growth of 5.1% as compared to a contraction of 0.1% in Dec 2019. For the period from Apr
to Dec of 2020, IIP contracted 13.5% as compared to a growth of 0.3% in the same period
of the previous year.
• Government data showed that the Consumer Price Index based inflation (CPI) slowed to a
16- month low of 4.06% in Jan 2021 from 4.59% in the previous month. The Consumer
Food Price Index also eased to 1.89% in Jan 2021 from 3.41% in the Dec 2020. CPI Inflation
for vegetables came down 15.84% over the month while that of oils and fats witnessed a
growth of 19.71%. CPI inflation for fuel and light stood at 3.87% during the month under
review.
• Data from the Society of Indian Automobile Manufacturers (SIAM) showed that passenger
vehicle sales witnessed a growth of 11.14% from 248,840 units in Jan 2020 to 276,554
units in Jan 2021. Two-wheeler sales witnessed a growth of 6.63% from 1,341,005 units in
Jan 2020 to 1,429,928 units in Jan 2021. However, three wheeler sales fell 56.76% during
the same time period.
3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4
Domestic Equity Market Indices
Indices 12-Feb-21 1 Week Return YTD Return
S&P BSE Sensex
51,544.30 1.60% 7.94%
Nifty 50
15,163.30 1.60% 8.45%
S&P BSE Mid-Cap
19,911.03 2.56% 10.98%
S&P BSE Small-Cap
19,622.05 2.75% 8.42%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
08-Feb-21 1,174 793 1.48
09-Feb-21 800 1,150 0.70
10-Feb-21 879 1,048 0.84
11-Feb-21 1,106 833 1.33
12-Feb-21 854 1,059 0.81
Source: NSE
• Indian equity markets reported muted
gains after witnessing initial rally
backed by optimism that falling
coronavirus infection rates and the
continued rollout of vaccines will
provide a major boost to the economic
recovery. Gains were largely erased as
investors cashed in recent gains seen
on the backdrop of high-spending and
growth-focused Union Budget FY22,
aimed at reviving the economy.
• On the last day of the week, market
participants remained cautious ahead
of the retail price inflation for Jan 21,
scheduled post market hours on Feb
12. The data is expected to give
insights on the near-term interest rate
outlook of Monetary Policy Committee.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
35.79 41.58 59.76 441.30
P/B
3.48 4.30 2.94 2.66
Dividend Yield
0.79 1.05 0.94 0.89
Source: BSE, NSE Va
lue as on Feb 12, 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
24,636.3 1.69% 7.86%
S&P BSE Bankex
40,835.9 1.33% 11.12%
S&P BSE CD
32,705.2 2.87% 5.63%
S&P BSE CG
21,794.8 0.59% 11.18%
S&P BSE FMCG
12,507.5 -2.09% -1.33%
S&P BSE HC
21,776.3 -0.13% -2.09%
S&P BSE IT
25,973.8 1.97% -2.94%
S&P BSE Metal
12,543.0 1.75% -0.40%
S&P BSE Oil & Gas
14,805.7 1.28% -1.42%
Source:
Refinitiv *Value as on Feb 12, 2021
• On the BSE sectoral front, barring S&P BSE
Healthcare and S&P BSE FMCG, all the indices
closed in the green.
• S&P BSE Realty was the top gainer, up 2.92%,
followed by S&P BSE Consumer Durables and
S&P BSE Teck, which rose 2.87% and 2.03%,
respectively. Investors grew optimistic of the
realty sector, owing to economic recovery
picking up pace and attractive home prices.
Indian Derivatives Market Review
• Nifty Feb 2021 Futures stood at 15,161.45, a discount of 1.85 points below the spot closing
of 15,163.30. The total turnover on NSE’s Futures and Options segment for the week stood
at Rs. 195.02 lakh crore as against Rs. 231.98 lakh crore for the week to Feb 5.
• The Put-Call ratio stood at 0.87 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 1.41.
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
3.31 3.26 3.19 3.49
91 Day T-Bill
3.33 3.37 3.28 3.32
05.22% 2025, (5 Yr GOI)
5.43 5.45 5.15 5.15
05.85% 2030, (10 Yr GOI)
5.99 6.07 5.92 5.85
Source: Refinitiv Value as on Feb 12, 2021
• Bond yields fell as the Reserve Bank of
India (RBI) conducted the open market
operations (OMO) and bought
government securities worth Rs.
20,000 crore at lower-than-expected
rates. Yields fell further as the RBI
purchased securities in the secondary
market and is anticipated to announce
more OMO.
• However, gains were capped after the
Central Bank partially devolved the 14-
year government security on primary
dealers, accepted bids at higher-than-
expected rates and exercised
greenshoe option at the weekly
auction.
• Yield on the 10-year benchmark paper
(5.85% GS 2030) fell 8 bps to close at
5.99% from the previous week’s close
of 6.07%.
Domestic Debt Market
5.94
6.02
6.10
8-Feb 9-Feb 10-Feb 11-Feb 12-Feb
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 4.22 4.78 56
3 Year 4.99 5.71 72
5 Year 5.59 6.59 100
10 Year 6.08 7.19 111
Source: Refinitiv Value as on
Feb 12, 2021
• Yields on gilt securities fell by up to 8 bps across
maturities, barring 3- & 7-year papers that
increased 21 & 2 bps, respectively. Yield fell the
most on 5-, 10 & 19-year papers.
• Corporate bond yields declined by up to 8 bps
across the curve. Yield fell the most on 8- to 10-
year papers.
• Difference in spread between AAA corporate
bond and gilt expanded 2 & 4 bps on 1- & 5-year
papers while 4- & 10-year papers were
unchanged. Spread on remaining securities
contracted in the range of 2 to 23 bps.
Domestic Debt Market (Spread Analysis)
-10
3
16
2.60
5.00
7.40
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 19 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 12-Feb-21 05-Feb-21
Yield in %
Change in bps
Source: Refinitiv
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• The Parliament passed the Major Port Authorities Bill, 2020. The bill focuses on reorienting
the governance model in central ports in line with the successful global practices. The
objective of the move is to promote the expansion of port infrastructure and facilitate trade
and commerce through faster and transparent decision making and better project
execution.
• The government gave its approval for inclusion of Specialty Steel under the Production
Linked Incentive (PLI) Scheme with a 5-year financial outlay of Rs. 6,322 crore. The objective
of the move is to give a fillip to the manufacturing of 'Specialty Steel' within the country by
generating employment, attracting capital investment and promoting technology up-
gradation in the steel sector.
• According to media reports, capital market regulator Securities and Exchange Board of India
(SEBI), is considering introducing a framework by which it will be able to ascertain the
incidents of technical glitches and compensate the investors accordingly. SEBI also wants to
devise a methodology for calculation of such compensation. Furthermore, SEBI will review
the existing framework for improving the efficiency and effectiveness of liquidity
enhancement measures such as market making, Liquidity Enhancement Scheme (LES) and
call auction mechanism for illiquid securities.
Regulatory Updates in India
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9
• According to the Ministry of Coal, the government adopted various measures to achieve
the target of augmentation of coal production capacity. Some of the steps which the
government adopted are the launch of single window clearance system, simplification of
guidelines for procedure and approval of mining plan, auctioning of coal mines for
commercial sale and regular review and monitoring of allocated coal mines.
• According to media reports and as per the minister of commerce and industry, the
government has set up a committee which will consist of members from public sector and
private sector. The members will look into issues which will help in promotion and
localization of manufacturing activity.
• According to media reports, Insurance Regulatory and Development Authority (IRDAI) has
allowed general and health insurance companies to launch four more categories of
individual products, add-ons and riders of health policies to be filed under the use-and-file
procedure. The four new categories are personal accident insurance, overseas travel
insurance, domestic travel insurance and benefit-based health insurance products. Under
the use-and-file norms, insurers are permitted to market certain products without IRDAI’s
prior approval.
• According to media reports, a working group of IRDAI has suggested the need to
introduce index-linked insurance products. The requirement arises at a time when the
investment markets are volatile, due to which customers are preferring more guaranteed
products. This, in turn, has increased the balance sheet risk for the insurers.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• Data from the University of Michigan showed that the consumer sentiment index in U.S.
fell to 76.2 in Feb 2021 from 79.0 in Jan 2021. The consumer sentiment index thus fell to
its lowest level since hitting 74.1 in Aug 2020.
• Data from the U.S. Labour Department showed that initial jobless claims in U.S. for the
week ended Feb 6, 2021 fell by 19,000 to 793,00 from the previous week's revised level of
812,000 (779,000 originally reported for the previous week).
• Data from the Office for National Statistics showed that the gross domestic product of
the U.K. economy witnessed a decline of 9.9% in 2020 following a growth of 1.4% in 2019.
The contraction can be attributed to tight restrictions imposed by the British government
to combat the COVID-19 pandemic.
• The European Commission in its interim Winter forecast projected the euro zone economy
to grow 3.8% in 2021 instead of 4.2% projected previously. However, the growth outlook
for 2022 was raised to 3.8% from 3%. Inflation was projected at 1.4% in 2021, up from the
previous forecast of 1.1%. Inflation projection for 2022 was retained at 1.3%.
• Fitch Ratings maintained the sovereign ratings of Japan with a 'negative' outlook. The
outlook remained negative due to risks to the macroeconomic and fiscal outlook from the
COVID-19 pandemic.
• Preliminary data from the Japan Machine Tool Builders' Association showed that Japan's
machine tool orders grew 9.7% on a yearly basis in Jan 2021 following an increase of 9.9%
rise in Dec 2020 and a growth of 8.6% in Nov 2020.
10
Global News/Economy
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
11
Global Indices
Indices
12-Feb-21
1-Week
Return
YTD
Return
Russell 3000 2,074.48 1.31% 6.24%
Nasdaq 100 13,807.70 1.50% 7.13%
FTSE 100 6,589.79 1.55% 2.00%
DAX Index 14,049.89 -0.05% 2.41%
Nikkei Average 29,520.07 2.57% 7.56%
Straits Times* 2,925.48 0.63% 2.87%
Source: Refinitiv
Value as on Feb 12, 2021; * Value as on Feb 11, 2021
U.S.
• U.S. markets rose on optimism about
additional stimulus along with largely
upbeat earnings news, a slowdown in
the rate of coronavirus infections and
accelerated vaccine rollouts.
Europe
• Majority of the European markets rose on growing expectations about global economic
recovery gathering momentum on faster rollout of vaccines and optimism about U.S.
economic stimulus. However, gains were restricted by profit booking towards end of the
week.
Asia
• Asian markets ended the holiday truncated week on a positive note as optimism over
additional U.S. COVID-19 relief package and falling coronavirus infections rates helped to
underpin investor sentiment.
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 rose
3 bps to close at 1.20%, from the
previous week’s close of 1.17%.
• U.S. Treasury prices rose initially after
U.S. inflation data for Jan 2021
disappointed the market along with
good demand for a $41 billion sale of
10-year notes.
• However, gains reversed, and U.S.
Treasury prices fell after an auction saw
less demand for a sale of new 30-year
bonds.
Global Debt (U.S.)
1.10
1.16
1.22
8-Feb 9-Feb 10-Feb 11-Feb 12-Feb
Yield in %
US 10-Year Treasury Yield Movement
Source: Refinitiv
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
13
Performance of various commodities
Commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel)
62.40 60.24
Gold ($/Oz)
1,823.46 1,811.62
Gold (Rs/10 gm)
47,193 47,048
Silver ($/Oz)
27.35 26.83
Silver (Rs/Kg)
68,353 67,485
Source: Refinitiv *Value as on Feb 12, 2021
Gold
• Gold prices remained steady as liquidity
in the gold market remained light due to
Lunar New Year holiday. Meanwhile,
growing possibility that the U.S.
Congress may pass a $1.9 trillion
coronavirus relief bill boosted bullion
prices.
Brent Crude
• Brent crude prices rose after data from
the American Petroleum Institute
showed that crude inventories fell by 3.5
million barrels for the week ended Feb 5,
2021. Hopes that the roll out of COVID-
19 vaccine will lead to recovery in
demand also contributed to the upside.
Baltic Dry Index
• The index rose due to improved capesize
and panamax activities.
Commodities Market
9.60
10.00
10.40
10.80
11.20
11.60
13-Jan-21 23-Jan-21 2-Feb-21 12-Feb-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
1.94%
3.59%
0.65%
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
72.80 72.90
Pound Sterling
100.45 99.73
EURO
88.29 87.20
100 Yen
69.44 69.07
Source: Refinitiv Figures in INR , *Value as on Feb 12, 2021
Rupee
• The Indian rupee rose against the U.S.
dollar supported by equity related
greenback inflows, decline in the U.S.
dollar index amid prospects of more U.S.
fiscal stimulus.
Euro
• Euro rose against the U.S. dollar as risk
sentiment improved on the back of gains
in global equity market and rise in U.S.
Treasury yields.
Pound
• Pound rose against the U.S. dollar on
U.K.’s lead in COVID-19 vaccinations
compared with other European
countries.
Yen
• Yen rose against the greenback on
disappointing U.S. jobs data for Jan 2021
and as U.S. Treasury yields rose.
Currencies Markets
9.71
9.84
9.97
10.10
13-Jan-21 23-Jan-21 2-Feb-21 12-Feb-21
USD GBP Euro JPY
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
-0.14%
1.25%
0.54%
0.72%
Source: Refinitiv
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
08
th
Feb to 12
th
Feb
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
16
The Week that was (Feb 08 – Feb 12)
Date Events Present Value Previous Value
Monday,
February 8, 2021
• Japan Bank Lending YoY (Jan) 6.1% 6.2%
• Japan Eco Watchers Survey Current (Jan) 31.20 34.30
• Germany Industrial Production MoM (Dec) 0% 1.5%
• U.S. Consumer Inflation Expectations (Jan) 3.05% 3.00%
Tuesday,
February 9, 2021
• Japan Average Cash Earnings YoY (Dec) -3.20% -1.80%
• Japan Machine Tool Orders YoY (Jan) 9.70% 9.90%
• Germany Balance of Trade s.a (Dec) €16.1B €16B
Wednesday,
February 10, 2021
• China Inflation Rate YoY (Jan) -0.3% 0.2%
• China PPI YoY (Jan) 0.3% -0.4%
• Germany Inflation Rate YoY Final (Jan) 1.0% -0.3%
• U.S. Inflation Rate YoY (Jan) 1.4% 1.4%
• U.S. Core Inflation Rate YoY (Jan) 1.4% 1.6%
• U.S. Wholesale Inventories MoM (Dec) 0.3% 0.0%
Thursday,
February 11, 2021
• Germany Wholesale Prices YoY (Jan) 0.00% -1.20%
• Germany Wholesale Prices MoM (Jan) 2.10% 0.60%
• U.S. Initial Jobless Claims (Feb 6) 793K 812K
Friday,
February 12, 2021
• U.K. GDP YoY (Dec) -6.5% -7.6%
• U.K. GDP 3-Month Avg (Dec) 1.0% 4.5%
• U.S. Michigan Consumer Sentiment Prel (Feb) 76.20 79.00
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
15
th
Feb, 2021 to 19
th
Feb, 2021
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
Day Event
Monday,
February 15, 2021
• Japan Industrial Production YoY Final (Dec)
• Euro Zone Industrial Production YoY (Dec)
• Japan GDP Growth Annualized Prel (Q4,2020)
Tuesday,
February 16, 2021
• Euro Zone ZEW Economic Sentiment Index (Feb)
• Japan Tertiary Industry Index MoM (Dec)
Wednesday,
February 17, 2021
• Japan Machinery Orders YoY (Dec)
• U.K. Core Inflation Rate YoY (Jan)
• U.K. Inflation Rate YoY (Jan)
• U.S. Retail Sales MoM (Jan)
Thursday,
February 18, 2021
• U.S. Initial Jobless Claims (Feb 13)
• U.S. Housing Starts MoM (Jan)
• U.S. Building Permits (Jan)
• Euro Zone Consumer Confidence Flash (Feb)
Friday,
February 19, 2021
• U.K. Gfk Consumer Confidence (Feb)
• U.K. Retail Sales YoY (Jan)
• U.S. Markit Manufacturing PMI Flash (Feb)
• U.S. Existing Home Sales MoM (Jan)
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) (formerly Reliance Nippon Life Asset Management Limited) 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 India’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 Analytics 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 Analytics 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 Analytics 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.
