Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
NEWS U CAN USE
July 09, 2021
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
5
th
July to 9
th
July
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• Data from the private survey showed that the seasonally adjusted India Services Business
Activity Index fell to 41.2 in Jun 2021 from 46.4 in May 2021. The service industry
contracted sharply as tighter restrictions to contain a return of coronavirus infections
devastated demand and prompted enterprises to cut employees at a quick pace. The
Composite PMI Output also decreased to 43.1 in June 2021 from 48.1 in May 2021.
• National Commodity and Derivatives Exchange (NCDEX) introduced two sectoral indices in
agri-commodities basket namely NCDEX GUAREX and NCDEX SOYDEX. GUAREX is a
return-based index that tracks the price movement of its guar seed and guar gum refined
split futures contracts in real-time. Similarly, SOYDEX will track changes in soybean and
refined soya oil futures contracts.
• The governor of the Reserve Bank of India wants to anchor inflation expectations as the
country focuses on recovering economic growth, and he has encouraged the government
to consider decreasing fuel taxes to relieve price pressures. A fast reversal of monetary
policy attitude or strategy, according to the governor, can have major ramifications for the
economy's recovery.
• According to the finance ministry the economy has begun to show indications of rebound
from the impact of the second wave of the COVID-19 epidemic on the back of targeted
fiscal relief, monetary policy, and a quick vaccination effort.
3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
4
Domestic Equity Market Indices
Indices
09-Jul-21
1 Week Return
YTD Return
S&P BSE Sensex
52,386.19
-0.19% 9.71%
Nifty 50
15,689.80
-0.21% 12.22%
S&P BSE Mid
-Cap
22,813.67
1.37% 27.16%
S&P BSE Small
-Cap
25,874.40
1.20% 42.97%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
05-Jul-21 1338 696 1.92
06-Jul-21 865 1124 0.77
07-Jul-21 1065 924 1.15
08-Jul-21 750 1213 0.62
09-Jul-21 1088 869 1.25
Source: NSE
• Indian equity markets settled for the
week with modest losses. Buying interest
were initially strong as investors
continued to take positive cues from
declining COVID-19 cases, easing of curbs
and a surge in vaccinations, which also
helped the Nifty and Sensex hit record
highs in recent times.
• Nonetheless, gains were erased by
worries over a probable stalled economy,
which grew as the Delta form of COVID-
19 spread fast across the Asian region. In
addition, the market was pulled down by
lower-than-expected initial earnings of IT
companies.
• Markets were further hit by report
showing fall in the monthly GST collection
below Rs 1-trillion, for the first time in
eight months in Jun.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
31.40 28.27 42.19 52.66
P/B
3.38 4.23 3.19 3.32
Dividend Yield
1.04 1.09 0.90 0.74
Source: BSE, NSE Va
lue as on Jul 09, 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
23,252.10
-2.89% -3.18%
S&P BSE Bankex
39,668.64
0.55% 0.47%
S&P BSE CD
35,742.95
-0.87% 1.38%
S&P BSE CG
22,960.64
0.81% -0.28%
S&P BSE FMCG
13,580.63
-0.02% 2.29%
S&P BSE HC
25,875.41
-0.50% 3.93%
S&P BSE IT
29,624.11
-1.35% 5.62%
S&P BSE Metal
18,978.42
2.96% 1.85%
S&P BSE Oil & Gas
15,858.41
-1.46% -7.05%
Source:
Refinitiv *Value as on Jul 09, 2021
• On the BSE sectoral front, majority of the
indices closed in the red. S&P BSE Auto was
the major loser, down 2.89%, followed by S&P
BSE Oil & Gas and S&P BSE IT, which slipped
1.46% and 1.35%, respectively.
• Auto sector went down as the brutal wave of
the COVID-19 pandemic wreaked havoc on the
market sentiment with most of the domestic
automobile factories still running well below
capacity and sales much below expected.
Indian Derivatives Market Review
• Nifty Jul 2021 Futures stood at 15,722.45, a premium of 32.65 points above the spot
closing of 15,689.80. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 258.92 lakh crore as against Rs. 223.74 lakh crore for the week to Jul 2.
• The Put-Call ratio stood at 0.91 compared with the previous week’s close of 0.87.
• The Nifty Put-Call ratio stood at 0.94 compared with the previous week’s close of 1.09.
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
3.17 3.14 3.12 3.18
91 Day T
-Bill
3.46 3.41 3.41 3.06
05.22% 2025, (5
Yr GOI)
5.59 5.61 5.28 5.01
05.85% 2030, (10 Yr GOI)
6.19 6.06 6.02 5.87
Source:
Refinitiv Value as on Jul 09, 2021
• Bond yields surged to the highest level
since Mar 19, 2021 after the Reserve Bank
of India (RBI) sold the much-awaited new
10-year bond at a higher-than-expected
yield of 6.10%. Increase in global crude oil
prices and intensifying concerns about an
early normalisation of monetary policy due
to rise in domestic inflationary pressures
also weighed on the market sentiment.
• Yield on the 10-year benchmark paper
(5.85% GS 2030) surged 13 bps to close at
6.19% from the previous week’s close
6.06%.
• RBI conducted the auction of three
government securities for a notified
amount of Rs. 26,000 crore for which the
entire amount was accepted. The implicit
yield at cut off for the much-awaited new
10-year bond came in at 6.10%.
Domestic Debt Market
6.00
6.10
6.20
5-Jul 6-Jul 7-Jul 8-Jul 9-Jul
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 4.09 4.75 66
3 Year 4.84 5.31 47
5 Year 5.81 6.37 56
10 Year 6.28 7.22 93
Source:
Refinitiv
Value as on
Jul 09 2021
• Yields on gilt securities increased on 7-year
paper, 10-year paper and 12 to 30-year
maturities in the range of 2 bps to 14 bps.
• Corporate bond yields fell across 2 to 10-year
maturities by up to 14 bps barring 1-year
paper and 15-year paper which increased 3
bps and 8 bps respectively.
• Difference in spread between AAA corporate
bond and gilt expanded on 1-year and 15-year
paper by 4 bps each while it contracted across
the remaining maturities in the range of 4 bps
to 15 bps.
Domestic Debt Market (Spread Analysis)
-4
6
16
2.00
5.00
8.00
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 09-Jul-21 02-Jul-21
Yield
in %
Change
in bps
Source: Refinitiv
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
8
• The Department of Public Enterprises (DPE) and the Finance Ministry have amalgamated to
offer the government more control over state-owned businesses and to enable its
ambitious privatisation drive. The Finance Ministry will now have six departments, while the
Ministry of Heavy Industries and Public Enterprises will now be known as the Ministry of
Heavy Industries.
• The Union Minister of Fisheries, Animal Husbandry, and Dairy released the 'Matsya Setu'
smartphone app to help aqua farmers learn about the latest freshwater aquaculture
technologies. In the Matsya Setu app, renowned aquaculture experts explain the basic
concepts and practical demonstrations on breeding, seed production, and grow-out culture
of commercially important fishes like carp, catfish, scampi, murrel, ornamental fish, and
pearl farming in species-and subject-specific self-learning online course modules.
• The Reserve Bank of India has warned banks and financial institutions against structuring
deals based on the London Interbank Offered Rate (LIBOR), a long-standing reference
frame for cross-border fund-raising, as the global rate gauge is nearing the end of its life
cycle and will be replaced beginning next year.
• The Union Cabinet has authorised a Rs. 23,123 crore package to improve health
infrastructure in order to combat COVID-19, as part of which roughly 2.4 lakh hospital beds
and 20,000 intensive care units (ICUs) will be built, with a special focus on paediatric care.
The package will be implemented over the next nine months till Mar 2022.
Regulatory Updates in India
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
9
• The Securities and Exchange Board of India, in an unprecedented step to reduce the
number of technical failures at market infrastructure organisations such as stock
exchanges, published new guidelines that will hold such institutions and their personnel
accountable if they fail to provide services.
• The Securities and Exchange Board of India has decreased the time it takes for
corporations to file an application to the markets regulator for a 'No Objection Certificate'
for the release of 1% of the issue amount from four months to two months.
• The Reserve Bank of India (RBI) has enabled banks to provide the lower of the savings
deposit rate or the fixed deposit rate on matured FDs in an effort to deter businesses
from utilising banks for treasury management.
• Rashtrapati Bhavan hosted a swearing-in event for 43 ministers. 15 Cabinet Ministers and
28 Ministers of State were sworn in. 36 fresh faces will be added to the cabinet.
Government has promoted seven ministers who were previously in his Cabinet. The new
members of India's Council of Ministers were picked for their diversity, experience, and
education.
Regulatory Updates in India (contd..)
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
• The recent monetary policy meeting of the U.S. Federal Reserve suggests that it will not be
in a hurry to start winding down its asset buying programme. The central bank has stated
repeatedly that it intends to keep buying assets at a rate of at least $120 billion per month
until it achieves "significant further progress" toward its goals of maximum employment
and price stability.
• According to the Institute for Supply Management (ISM), U.S. services Purchasing
Manufacturing Index fell to 60.1 in Jun 2021 from 64 in May 2021. The decline came likely
restrained by labor and raw material shortages, resulting in unfinished work continuing to
pile up.
• The European Commission raised its economic forecasts, citing improved health and, as a
result, continuous relaxing of virus containment measures. In 2021, the euro area economy
is expected to develop at a rate of 4.8%, up from the prior prediction of 4.3%. Similarly, the
forecast for 2022 was revised from 4.4% to 4.5%.
• The People's Bank of China said that it will reduce the reserve requirement ratio (RRR) by
0.5% points, with effect from Jul 15, 2021. The RRR for major banks was last decreased by
the bank in March 2020. China's central bank reduced the reserve requirement ratio for
large commercial banks to enhance the amount of money available for lending and assist
economic growth.
10
Global News/Economy
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
11
Global Indices
Indices
09-Jul-21
1-Week
Return
YTD
Return
Russell 3000
2,239.61 0.83% 14.70%
Nasdaq 100
14,826.09 0.67% 15.04%
FTSE 100
7,121.88 -0.02% 10.24%
DAX Index
15,687.93 0.24% 14.35%
Nikkei Average
27,940.42 -2.93% 1.81%
Straits Times
3,131.40 0.08% 10.11%
Source: Refinitiv
Value as on Jul 09, 2021
U.S.
• U.S. markets managed to close in the
green as investors set aside worries about
the spread of the delta variant of the
coronavirus and remained optimistic the
U.S. economy will continue to
outperform. The minutes of Fed’s latest
policy meeting too generated positive
vibes among the investors.
Europe
• Majority of the European markets dipped as worries about the spread of the Delta variant
of the coronavirus and its impact on economic growth dented sentiment. A sharp fall in
crude oil prices after OPEC+ abandoned discussions amid failure to agree on production
policy too hit the bourses.
Asia
• Asian markets witnessed a mixed trend during the week. Worries over a new wave of
COVID-19 infections in numerous Asian countries, as well as concerns about China's
crackdown on technological companies kept investors wary. Nonetheless, the minutes of
Fed’s latest policy meet generated positive vibes.
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 fell 7
bps to close at 1.36%, from the previous
week’s close of 1.43%.
• U.S. Treasury prices rose after data
showed that service sector activity in U.S.
slowed in Jun 2021 from May 2021. Data
from the Institute for Supply
Management showed that the U.S. non-
manufacturing activity index fell to 60.1 in
Jun 2021 from 64.0 in May. Gains were
extended after initial jobless claims in U.S.
rose for the week ended Jul 3, 2021.
• The safe haven appeal of the U.S.
Treasuries was further boosted on
concerns that the global economic
recovery was faltering amid a surge in
coronavirus infections in many places
around the globe.
Global Debt (U.S.)
1.26
1.33
1.40
6-Jul 7-Jul 8-Jul 9-Jul
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)
78.30 78.79
Gold ($/Oz)
1807.98 1786.79
Gold (Rs/10 gm)
47723 47434
Silver ($/Oz)
26.08 26.46
Silver (Rs/Kg)
68756 68919
Source: Refinitiv *
Value as on Jul 09, 2021
Gold
• Gold price crossed $1800/ounce mark as
treasury yield fell and investors took positive
cues from the minutes of U.S. Fed’s latest
policy meet. Nonetheless, concerns
regarding global growth of Delta variant of
COVID-19 kept investors wary.
Brent Crude
• Brent Crude prices eased with investors
speculating collapse in OPEC+ talks, which
could mean more supply. Oil prices
remained weak following the breakdown of
discussions between major oil producers
Saudi Arabia and United Arab Emirates.
Baltic Dry Index
• The index fell on WoW basis due to
slowdown in capesize and panamax
activities.
Commodities Market
8.60
10.20
11.80
9-Jun-21 24-Jun-21 9-Jul-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global
Commodity Prices
Rebased to 10
Source: Refinitiv
-1.44%
-0.62%
1.19%
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
74.64 74.77
Pound Sterling
102.75 102.88
EURO
88.29 88.53
100 Yen
67.79 67.01
Source: Refinitiv Figures in INR , *
Value as on Jul 09, 2021
Rupee
• The rupee rose against the greenback on hopes
that the U.S. Federal Reserve may not rush to
scale back stimulus.
Euro
• The euro inched up against the greenback as
the latter came under pressure due to profit
booking.
Pound
• The pound rose against the greenback on
reports that the British government may
announce plans to fully reopen the economy
later this month despite a surge in COVID-19
cases.
Yen
• The yen rose against the greenback as its safe
haven appeal improved amid surge in COVID-19
infection cases in many parts of the world and
concerns over global economic recovery.
Currencies Markets
9.80
10.05
10.30
9-Jun-21 24-Jun-21 9-Jul-21
USD GBP Euro JPY
Source: Refinitiv
Currency
Prices (
in terms of INR)
Rebased to 10
Currency Movement
-0.17%
-0.28%
-0.13%
1.16%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
15
The Week that was…
5
th
July to 9
th
July
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
16
The Week that was (Jul 5 – Jul 9)
Date Events
Present Value
Previous Value
Monday,
July 05, 2021
• India Markit Service PMI (May)
41.2 46.4
• Eurozone Markit PMI Composite (Jun)
59.5 59.2
• Germany Markit PMI Composite (Jun)
60.1 60.4
Tuesday,
July 06, 2021
• U.S. ISM Services PMI (Jun)
60.1 64.0
• Eurozone Retail Sales (YoY)(May)
9% 23.30%
• Germany ZEW Survey
–
Economic Sentiment (Jul)
63.3 79.8
• Germany Factory Orders (MoM)(May)
-3.70% 1.20%
Wednesday,
July 07, 2021
• Japan Leading Economic Index (May) PREL
102.6 103.8
• Germany Industrial Production (MoM)(May)
-0.30% -0.30%
Thursday
July 08, 2021
• Japan Current Account (Yen)(May)
1979.7B 1321.8B
• Germany Trade Balance (Euro) (May)
12.6B 15.6B
Friday,
July 09, 2021
• China Consumer Price Index (YoY)(Jun)
1.10% 1.30%
• U.K. Gross Domestic Product (MoM)(May)
0.80% 2.30%
• U.K. Industrial Production (MoM)(May)
0.80% -1%
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
17
The Week Ahead
12
th
July to 16
th
July
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
18
Day Event
Monday,
Jul 12, 2021
•
India Consumer Price Inflation (YoY) (May)
•
India Index of Industrial Production (May)
•
Japan Machinery Orders (YoY)(May)
•
Germany Wholesale Price Index (YoY)(Jun)
Tuesday,
Jul 13, 2021
•
U.S. Consumer Price Index (YoY)(Jun)
•
Germany Harmonized Index of Consumer Prices (YoY)(Jun)
•
China Trade Balance USD(Jun)
Wednesday,
Jul 14, 2021
•
India Wholesale Price Inflation (YoY) (May)
•
U.K. Consumer Price Index (YoY)(Jun)
•
U.K. Retail Price Index (MoM)(Jun)
Thursday,
Jul 15, 2021
•
China Gross Domestic Product (YoY)(Q2)
•
China Retail Sales (YoY)(Jun)
•
U.K. ILO Unemployment Rate (3M)(May)
•
China Industrial Production (YoY)(Jun)
Friday,
Jul 16, 2021
•
Bank of Japan Interest Rate Decision
•
U.S. Retail Sales (MoM)(Jun)
•
U.S. Michigan Consumer Sentiment Index(Jul) PREL
•
Eurozone Consumer Price Index (MoM)(Jun)
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
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, associates 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, associates 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.
