Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
NEWS U CAN USE
Feb 14, 2020
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
10
th
Feb to 14
th
Feb
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• India’s consumer inflation accelerated to 7.59% YoY in Jan 2020 from 7.35% in Dec 2019
and 1.97% in Jan 2019. Food inflation dropped to 13.63% in Jan compared with a growth
of 14.19% in Dec and a degrowth of 2.24% in the same month of the previous year. Food
and beverages inflation rose to 11.8% in Jan compared with 12.2% in Dec. Transport and
communication inflation rose to 6.08% in Jan from 4.77% in Dec.
• India’s Index of Industrial Production (IIP) growth contracted 0.3% YoY in Dec 2019 as
against growth of 1.8% in Nov 2019 and increase of 2.5% in Dec 2018. Mining rose 5.4%,
while manufacturing and electricity deaccelerated 1.2% and 0.1% in Dec 2019.
• India’s Wholesale Price Index (WPI) - based inflation moved up to 3.1% in Jan 2020 from
2.59% in Dec 2019 and 2.76% in Jan 2019. Fuel and power inflation came in at 3.42% in
Jan from 1.46% in Dec. LPG inflation came increased 1.78% in Jan from a deacceleration of
14.69% in Dec.
• The country's exports dropped 1.66% to $25.97 billion in Jan 2020, which is the sixth
straight month of contraction, on account of a significant fall in shipments of petroleum,
plastic, carpet, gems and jewellery, and leather products, media reports showed. Imports
also fell for the eighth consecutive months, down 0.75% to $41.14 billion in Jan, widening
the trade deficit to a seven-month high of $15.17 billion, government data showed.
3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4
Domestic Equity Market Indices
Indices
14-Feb-20
1 Week Return
YTD Return
S&P BSE Sensex
41,257.74 0.28% 0.01%
Nifty 50
12,113.45 0.12% -0.45%
S&P BSE Mid
-Cap
15,662.1 -1.53% 4.64%
S&P BSE Small
-Cap
14,682.65 -1.06% 7.18%
Source:
MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
10-Feb-20 672 1197 0.56
11-Feb-20 800 1022 0.78
12-Feb-20 722 1109 0.65
13-Feb-20 805 1018 0.79
14-Feb-20 639 1204 0.53
Source: NSE
• Indian equity ended on positive note in
the week ended Feb 14, 2020. Hopes
that the coronavirus outbreak in China
could be bottoming out boosted
market sentiment. On Feb 12, 2020,
data reportedly showed that the
growth rate of new coronavirus cases in
China slowed to the lowest since Jan
30, 2020. Further, positive global cues
as some factories in China opened
despite mounting coronavirus deaths
added to the gains.
• However, investors remained cautious
on concerns over the overall economic
impact of the coronavirus epidemic.
Further, gains were restricted after
Supreme Court rejected the
modification pleas of telecom
companies.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
25.01 27.45 28.84 85.07
P/B
3.20 3.41 2.53 2.04
Dividend Yield
1.03 1.26 1.07 1.06
Source: BSE, NSE
Value as on Feb 14, 2020
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
17,589.40 -2.70% -5.39%
S&P BSE
Bankex
35,359.65 -0.89% -3.23%
S&P BSE CD
26,962.31 -0.47% 7.20%
S&P BSE CG
16,781.76 -1.86% -3.33%
S&P BSE FMCG
11,531.89 -0.46% -2.46%
S&P BSE HC
14,415.00 0.93% 5.18%
S&P BSE IT
16,332.89 1.29% 1.02%
S&P BSE Metal
9,639.21 -3.64%
-10.50%
S&P BSE Oil & Gas
14,083.38 -1.58% -4.52%
Source: Thomson Reuters Eikon
*Value as on Feb 14, 2020
• S&P BSE Teck was the major gainer that grew
1.43% followed by S&P BSE Information
Technology and S&P BSE Healthcare that grew
1.29% and 0.93%, respectively.
• However, S&P BSE Metal was the major loser
and fell 3.64% followed by S&P BSE Power and
S&P BSE Realty that fell 3.53% and 3.10%,
respectively.
Indian Derivatives Market Review
• Nifty Feb 2020 Futures stood at 12,129.65, a premium of 16.20 points above the spot
closing of 12,113.45. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 74.56 lakh crore as against Rs. 92.92 lakh crore for the week to Feb 7.
• The Put-Call ratio stood at 0.91 against the previous week’s close of 0.92.
• The Nifty Put-Call ratio stood at 1.28 against the previous week’s close of 1.40.
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
5.03 5.03 4.97 5.33
91 Day T
-Bill
5.11 5.11 5.07 5.48
07.32% 2024, (5 Yr GOI)
5.92 5.98 6.47 6.41
06.45%
2029, (10 Yr GOI)
6.37 6.44 6.67 6.63
Source: Thomson Reuters Eikon
Value as on Feb 14, 2020
• Bond yields fell as the underlying
market sentiment remained upbeat
after the Reserve Bank of India
announced to conduct long term
repos which led to consistent buying
of domestic debt by foreign portfolio
investors.
• No additional borrowing, as
announced by the government at the
budget, and plans to issue special
securities also aided market
sentiment. However, profit booking to
some extent capped the gains.
• Yield on the 10-year benchmark paper
(6.45% GS 2029) fell 7 bps to close at
6.37% compared with the previous
week’s close of 6.44% after trading in
a range of 6.37% to 6.49%.
Domestic Debt Market
6.00
6.30
6.60
10-Feb 11-Feb 12-Feb 13-Feb 14-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
5.39 6.44 105
3 Year
5.86 6.75 88
5 Year
6.02 7.03 100
10 Year
6.47 7.81 134
Source: Thomson Reuters Eikon
Value as on
Feb
14, 2020
• Yields on gilt securities fell across the
maturities in the range of 2 bps to 15 bps.
• Corporate bond yields fell on 1 to 3-year
and 8 to 10-year paper by up to 10 bps
barring 5 to 7-year and 15-year paper
which expanded in the range of 3 to 6 bps
while the same on 4-year closed steady.
• Spread between AAA corporate bond and
gilt expanded across the maturities by up
to 16 bps barring 2 and 10-year paper
which contracted 5 and 1 bps respectively
while on 1-year paper closed steady.
Domestic Debt Market (Spread Analysis)
-12
-6
0
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 14-Feb-20 07-Feb-20
Yield
in %
Change
in bps
Source: Thomson Reuters Eikon
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• Media reports showed the Supreme Court rejected a plea by telecom operators seeking
more time to settle adjusted gross revenue (AGR) dues. The court began contempt
proceedings against the companies and said operators must deposit the dues by Mar 17,
2020. After Supreme Court verdict, the Department of Telecommunications has ordered
telcos to clear dues before Feb 14, 2020, midnight.
• The cabinet has approved changes in the 'Direct Tax Vivad se Vishwas Bill, 2020', media
reports showed. The bill aims to increase its scope to cover litigation pending in various debt
recovery tribunals. It was proposed to cover tax disputes pending at the level of
commissioner (appeals), Income Tax Appellate Tribunals (ITAT), high courts and the Supreme
Court.
• The government is planning to overhaul its flagship crop insurance scheme - Pradhan Mantri
Fasal Bima Yojana (PMFBY). It plans to give more flexibility and freedom to states and
farmers in choosing insurance products for risk hedging as per the proneness of the
particular state to the specific weather vagary, media reports showed. Currently, farmers
across the country don’t have any choice as there is one single comprehensive insurance
product, which covers risks right from pre-sowing to post harvesting.
Regulatory Updates in India
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9
• The government will issue special series bonds in rupees which will be completely outside
capital controls to let the foreign investors buy and sell these sovereign rupee bonds
freely, principal the economic advisor said. This is in line with the budget announcement.
• The finance minister met industry representatives to discuss the proposed direct tax
dispute resolution scheme, media reports showed. The scheme provides opportunity to
taxpayers to pay outstanding taxes and get waiver of interest and penalty. With over Rs. 9
lakh crore worth direct taxes locked up in litigation, the government last week introduced
‘Direct Tax Vivad se Vishwas Bill, 2020’ in the Lok Sabha. Once passed by Parliament, the
scheme would be notified and rules would be framed.
• The Income Tax Department will share all taxpayers' data such as PAN information with
the Securities & Exchange Board of India (SEBI) to help the regulator in its probe against
various entities, including those involved in 'stock market manipulation', media reports
showed. The Central Board of Direct Taxes, which frames policy for the tax department,
had issued an order in this context on Feb 10, 2020, under section 138 (1) of the I-T Act.
The sharing of information will be under three heads: request-based exchange of data, suo
moto and automatic.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• A University of Michigan report showed U.S. consumer sentiment index rose to 100.9% in
Feb 2020 from the final Jan 2020 reading of 99.8.
• Survey data from the Cabinet Office showed a measure of the public assessment of the
Japanese economy improved for the third month in a row in Jan 2020. The current
conditions index of the Economy Watchers' Survey increased to 41.9 in Jan from 39.7 in
Dec 2019.
• The National Bureau of Statistics showed consumer prices in China were up 5.4% YoY in
Jan 2020. That exceeded forecasts and followed the 4.5% gain in Dec 2019.
• First estimates from the Office for National Statistics showed the U.K. economy stalled in
the fourth quarter as uncertainty around Brexit and the general election weighed on
investment and spending. Gross domestic product remained unchanged from the previous
three months, as expected, after expanding by a revised 0.5% in the third quarter.
• Flash estimates from Eurostat showed euro area gross domestic product grew only 0.1%
sequentially, following third quarter's 0.3% expansion. The rate came in line with the
estimate released on Jan 31, 2020.
• Preliminary figures from Destatis showed German gross domestic product was unchanged
from the previous quarter, confounding expectations for growth. The third quarter growth
was revised up to 0.2% from 0.1%.
10
Global News/Economy
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
11
Global Indices
Indices
14-Feb-20
1-Week
Return
YTD
Return
Russell 3000
1,542.25 2.29% 8.15%
Nasdaq 100
9,623.58 2.37% 10.20%
FTSE 100
7,409.13 -0.77% -1.77%
DAX Index
13,768.00 1.88% 3.92%
Nikkei Average
23,687.59 -0.59% 0.13%
Straits Times
3,220.03 1.21% -0.09%
Source: Thomson Reuters
Eikon
Value as on
Feb 14, 2020
U.S.
• U.S. markets went up in the week ended
Feb 14, 2020, on the back of strong
employment data.
• The U.S. Federal Reserve chief in his
testimony showed confidence in the
nation’s economy in the face of the
virus spread. This helped investors
overcome worries emanating from the
virus outbreak in China to some extent.
Europe
• European markets were mostly up in the period. Investors took stock of corporate
earnings and the spread of the new coronavirus. Investors feared the impact of the health
emergency on the Chinese economy and global business could be serious.
Asia
• Asian equity markets gained in the week ended Feb 14, 2020. Sentiment was supported
by easing worries over the spread of virus in mainland China and the U.S. Federal Reserve
Chairman saying the U.S. economy is in a good place, despite the potential threat from the
coronavirus outbreak in China.
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
inched up 1 bps to close at 1.59%
compared to the previous week’s close
of 1.58% as investors continued to
hover around update on coronavirus
epidemic.
• U.S. Treasury prices fell amid reports
that U.S. Federal Reserve Chair has
stated that the U.S. economy is resilient.
Concerns over coronavirus epidemic fell
temporarily on reports that the number
of new coronavirus cases in China have
dropped alleviated.
• However, worsening news about the
coronavirus epidemic in China toward
the end of the week again restricted the
losses.
Global Debt (U.S.)
1.50
1.60
1.70
10-Feb 11-Feb 12-Feb 13-Feb 14-Feb
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)
57.96 55.12
Gold ($/Oz)
1584.32 1569.91
Gold (Rs/10 gm)
40676 40556
Silver ($/Oz)
17.73 17.67
Silver (Rs/Kg)
45928 46205
Source: Thomson Reuters Eikon *
Value as on Feb
14, 2020
Gold
• Gold prices were up following a sharp
surge in the number of new coronavirus
cases in China that fuelled concerns of a
global economic slowdown. However,
the precious metal’s upside was
restricted by U.S. Federal Reserve
Chairman’s upbeat view of the U.S.
economy.
Brent Crude
• Brent crude prices surged on growing
possibility of deeper production cuts
from the Organization of the Petroleum
Exporting Countries (OPEC) and its allies
to support the commodity’s price.
Baltic Dry Index
• The Baltic Dry Index rose due to higher
capesize and panamax activities.
Commodities Market
8.00
8.50
9.00
9.50
10.00
10.50
14-Jan-20 29-Jan-20 13-Feb-20
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global
Commodity Prices
Rebased to 10
Source: Thomson Reuters Eikon
0.32%
5.15%
0.92%
14-Feb-20
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
71.39 71.25
Pound Sterling
93.13 92.22
EURO
77.35 78.23
100 Yen
65.03 64.79
Source: RBI
Figures in INR , *Value as on Feb
14, 2020
Rupee
• The rupee weakened against the
greenback following rise in global crude
oil prices.
Euro
• The euro weakened against the
greenback amid concerns over
coronavirus outbreak in China and its
impact on global growth.
Pound
• The pound rose against the greenback
after the year on year growth of the
British economy in the fourth quarter of
2019 came better than expected.
Yen
• The yen was almost unchanged against
the greenback as persisting concerns
over coronavirus outbreak in China and
its impact on global growth continued to
rattle market participants.
Currencies Markets
9.70
9.80
9.90
10.00
10.10
10.20
10.30
14-Jan-20 30-Jan-20
USD GBP Euro JPY
Source: Thomson Reuters Eikon
Currency
Prices (
in terms of INR)
Rebased to 10
Currency Movement
14-Feb-20
0.98%
0.19%
0.37%
-1.12%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
10
th
Feb to 14
th
Feb
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
16
The Week that was (Feb 10– Feb 14)
Date Events
Present
Value
Previous
Value
Monday,
February 10, 2020
• China Consumer Price Index (YoY) (Jan)
5.4% 4.5%
Tuesday,
February 11, 2020
• U.K. Gross Domestic Product (YoY) (4Q P)
1.1% 1.2%
• U.K. Industrial Production (
MoM) (Dec) -1.80% -2.50%
Wednesday,
February 12, 2020
• India Index of Industrial Production (Dec 2019)
-0.3% 1.8%
• India Consumer Price Index Inflation (Jan 2020)
7.59% 7.35%
• Eurozone Industrial Production w.d.a. (YoY) (Dec)
-4.1% -1.7%
Thursday,
February 13, 2020
• Germany Harmonized Index of Consumer Prices (YoY) (Jan)
1.6% 1.6%
• U.S. Consumer Price Index (YoY) (Jan)
2.5% 2.3%
• U.S. Initial Jobless Claims 4
-week average (Feb 7) 205k 203k
Friday,
February 14, 2020
• India Wholesale Price Index Inflation (Jan 2020)
3.1% 2.6%
• Germany Gross Domestic Product w.d.a. (YoY) (4Q P)
0.4% 0.6%
• Eurozone Gross Domestic Product (YoY) (Q4) (P)
0.9% 1.0%
• U.S. Retail Sales Control Group (Jan)
0.0% 0.2%
• U.S. Michigan Consumer Sentiment Index (Feb) (P)
100.9 99.8
• Euro zone Employment (YoY) (4Q P)
1.0% 1.0%
• Japan Tertiary Industry Index (MoM) (Dec)
-0.2% 1.4%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
17
th
Feb to 21
st
Feb
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
Day Event
Monday,
Feb 17, 2020
•
China New Yuan Loans China (Jan)
•
Japan Gross Domestic Product Annualized s.a. (QoQ) (4Q P)
•
Japan Industrial Production (YoY) (Dec F)
Tuesday,
Feb 18, 2020
•
Eurozone ZEW Survey (Economic Sentiment) (Feb)
•
German ZEW Survey Current Situation (Feb)
•
U.S. NAHB Housing Market Index (Feb)
Wednesday,
Feb 19, 2020
•
Japan Machine Orders (YoY) (Dec)
•
U.K. Consumer Price Index (YoY) (Jan)
•
U.S. Housing Starts (MoM) (Jan)
Thursday,
Feb 20, 2020
•
U.K. Retail Sales Ex Auto Fuel (YoY) (Jan)
•
Eurozone Consumer Confidence (Feb A)
Friday,
Feb 21, 2020
•
Japan National Consumer Price Index (YoY) (Jan)
•
Japan All Industry Activity Index (MoM) (Dec)
•
Eurozone Markit Composite PMI (Feb P)
•
U.K. Markit/CIPS UK Composite PMI (Feb P)
•
Eurozone Consumer Price Index (YoY) (Jan)
•
U.S. Markit US Composite PMI (Feb 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 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.
