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NEWS U CAN USE
March 12, 2021
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The Week that was…
08
th
Mar to 12
th
Mar
2
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• Government data showed that the Consumer Price Index based inflation (CPI) rose to
5.03% in Feb 2021 from 4.06% in Jan 2021. The Consumer Food Price Index also rose to
3.87% in Feb 2021 from 1.96% in the Jan 2021. CPI Inflation for vegetables fell 6.27%
while that of oils and fats witnessed a growth of 20.78%. CPI inflation for fuel and light
stood at 3.53% during the month under review.
• Index of Industrial Production (IIP) witnessed contraction of 1.6% in Jan 2021 as compared
to a growth of 2.2% in the same period of the previous year. The manufacturing sector fell
2.0% in Jan 2021 as compared to the growth of 1.8% in the same period of the previous
year. Mining sector fell 3.7% in Jan 2021 as compared to a growth of 4.4% in the same
period of the previous year. Meanwhile the electricity sector witnessed a growth of 5.5%
in Jan 2021 as compared to growth of 3.1% in Jan 2020. For the period from Apr to Jan of
2021, IIP contracted 12.2% as compared to a growth of 0.5% in the same period of the
previous year.
• According to Organization for Economic Co-operation and Development (OECD) interim
economic outlook, India’s gross domestic product (GDP) growth is expected to rebound to
12.6% in FY22, which will be the fastest in the world, followed by China at 7.8% growth.
For FY21, India’s GDP is expected to contract at 7.4%, instead contraction of 9.9%
projected in Dec 2020 due to strong fiscal measures and recovery in manufacturing and
construction.
3
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4
Domestic Equity Market Indices
Indices 12-Mar-21 1 Week Return YTD Return
S&P BSE Sensex
50,792.08 0.77% 6.37%
Nifty 50
15,030.95 0.62% 7.50%
S&P BSE Mid-Cap
20,577.21 -0.05% 14.69%
S&P BSE Small-Cap
21,209.07 1.30% 17.19%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
08-Mar-21 1038 927 1.12
09-Mar-21 744 1208 0.62
10-Mar-21 1080 851 1.27
12-Mar-21 786 1174 0.67
Source: NSE
• Indian equity markets managed to end
the week with modest gains. During
the period, Sensex reclaimed the
51,000 mark only to retreat later, while
Nifty surpassed the 15,000 mark.
Investors took a sigh of relief initially
after U.S. Treasury yields eased
following a well-received debt auction.
• Buying interest found additional
support as Organisation for Economic
Co-operation and Development
projected that the Indian economy is
projected to grow at 12.6% in FY22, the
highest among G20 countries.
• Nonetheless, gains were largely erased
as optimism, triggered by news of U.S.
signing the $1.9-trillion stimulus
package, was overshadowed by
persisting concerns over rising U.S.
bond yield.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
35.36 40.94 58.12 763.27
P/B
3.42 4.26 3.01 2.87
Dividend Yield
0.71 1.06 0.90 0.83
Source: BSE, NSE Va
lue as on Mar 12, 2021
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
23,451.32 -1.22% -4.81%
S&P BSE Bankex
39,995.58 0.76% -2.06%
S&P BSE CD
33,287.23 1.64% 1.78%
S&P BSE CG
22,245.38 1.63% 2.07%
S&P BSE FMCG
12,230.44 -0.65% -2.22%
S&P BSE HC
21,286.28 0.38% -2.25%
S&P BSE IT
26,283.54 3.35% 1.19%
S&P BSE Metal
13,871.57 -0.25% 10.59%
S&P BSE Oil & Gas
15,890.90 -1.24% 7.33%
Source: Refinitiv *Value as on Mar 12, 2021
• On the BSE sectoral front, the indices
witnessed a mixed trend. S&P BSE IT was the
top gainer, up 3.35%, followed by S&P BSE
Teck and S&P BSE Consumer Durables, which
rose 2.66% and 1.64%, respectively.
• Meanwhile, S&P BSE Realty was the major
loser, followed by S&P BSE Oil & Gas and S&P
BSE Auto, which fell 1.24% and 1.22%,
respectively.
Indian Derivatives Market Review
• Nifty Mar 2021 Futures stood at 15,051.40, a premium of 20.45 points above the spot
closing of 15,030.95. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 181.40 lakh crore as against Rs. 227.01 lakh crore for the week to Mar 5.
• The Put-Call ratio stood at 0.99 compared with the previous week’s close of 0.98.
• The Nifty Put-Call ratio stood at 1.02 compared with the previous week’s close of 1.12.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
3.22 3.16 3.31 3.41
91 Day T-Bill
3.30 3.28 3.33 3.34
05.22% 2025, (5 Yr GOI)
5.77 5.71 5.43 5.51
05.85% 2030, (10 Yr GOI)
6.23 6.23 5.99 6.03
Source: Refinitiv Value as on Mar 12, 2021
• Bond yields remained almost steady as
special open market operation (OMO)
conducted by the Reserve Bank of India
(RBI) neutralised the heavy supply of
government securities at the weekly
auction. Meanwhile, market participants
await consumer inflation data for Feb
2021, due post-market closing.
• Yield on the 10-year benchmark paper
(5.85% GS 2030) remained unchanged at
6.23% from the previous week’s close
after moving in a range of 6.20% to
6.27%.
• RBI conducted the auction of 91 days,
182 days and 364 days Treasury Bills
auction for the notified amount of Rs.
4,000 crore, Rs. 7,000 crore and Rs. 8,000
crore, respectively, which was fully
accepted.
Domestic Debt Market
6.18
6.21
6.24
8-Mar 9-Mar 10-Mar 12-Mar
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 4.19 4.35 17
3 Year 5.17 5.51 34
5 Year 5.96 6.29 33
10 Year 6.33 7.59 126
Source: Refinitiv Value as on
Mar 12, 2021
• Yields on gilt securities rose in the range of 2
to 9 bps across maturities, barring 10-year
paper that was unchanged. Yield rose the
most on 11-year paper.
• Corporate bond yields rose in the range of 4
to 18 bps across the curve, leaving 3- to 5-
year papers that fell in the range of 3 to 10
bps and 2-year paper was steady.
• Spread between AAA corporate bond and gilt
contracted in the range of 4 to 17 bps on 2-
to 6-year papers while remaining maturities
expanded in the range of 3 to 17 bps.
Domestic Debt Market (Spread Analysis)
0
5
10
2.60
5.10
7.60
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 12-Mar-21 05-Mar-21
Yield in %
Change in bps
Source: Refinitiv
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8
• The Cabinet approved the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN) as a single non-
lapsable healthcare reserve fund in India. The proceeds of the health and education cess will
be credited to this fund, which will be used to support the health and family welfare
ministry's flagship programmes. The health ministry will administer the fund. Any
programme to achieve India’s sustainable development goals and the targets set out in the
national health policy would be covered by the fund. PMSSN would also be put to use for
disaster preparedness and responses during health emergencies.
• According to reports, the Securities Exchange Board of India has organised a group of
experts to look into the feasibility of implementing Special Purpose Acquisition Companies
(SPACs)-style structures in India. Sebi's Primary Market Advisory Committee (PMAC) has
asked the company to submit its report as soon as possible.
• According to the Ministry of New & Renewable Energy (MNRE), the finance ministry has
agreed to place a 40% basic customs duty (BCD) on solar modules and a 20% BCD on solar
cells from April 1, 2022. Until March31,2022, the BCD rate on solar modules and cells will be
zero.
• The finance ministry department has sent a memorandum to Securities Exchange Board of
India (Sebi) to withdraw a rule treating AT1 bonds (perpetuals) as having 100-year maturity.
In the memorandum to Sebi, the finance ministry has said that the revised norms will lead to
huge mark to market losses to investors.
Regulatory Updates in India
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9
• According to media reports, the government has converted 46 of the 47 licence modules
to paperless form to facilitate ease of doing business and reduce delays in application
filing and processing, fee payment, and licence approval from the Petroleum and
Explosives Safety Organisation (PESO).
• According to media reports, IRDAI is planning to move over from the 'file and use' system
of product approval to the 'use and file' system for product approvals. Under the file and
use system, an insurer, planning to introduce a new product, has to file an application for
the product with the insurance regulator and use the product for sale in the market only
after getting all the regulatory approvals. In case of use and file system, insurers are
permitted to market products without the regulator's prior approval.
Regulatory Updates in India (contd..)
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• The Organization for Economic Co-operation and Development in its latest Interim
Economic Outlook report has raised the global gross domestic product (GDP) growth
forecast for 2021 to 5.6% from 4.2% forecasted in Dec 2020. The increase in growth
forecast has come due to an accelerated roll-out of vaccinations against the coronavirus
and a better outlook for the U.S. on the back of a huge stimulus boost. The global economy
is expected to expand 4% in 2022 faster than 3.7% forecast in Dec.
• The U.S. House of Representatives gave final approval to $1.9 trillion COVID-19 relief bill.
According to reports, this is one of the largest economic stimulus measures in American
history. The relief bill includes $350 billion in aid to state and local governments, $400
billion for $1,400 direct payments to most Americans, an expansion of the child tax credit
and increased funding for the distribution of COVID-19 vaccine.
• The European Central Bank kept the scale of the pandemic emergency purchasing
programme, or PEPP, at EUR 1,850 billion, and said it would run until the end of Mar 2022,
or until the coronavirus crisis is over. The central bank left its key interest rates unchanged.
The European Central Bank also mentioned that it would significantly increase the pace of
its pandemic emergency bond buys in the next quarter to soothe market fears about a rise
in government borrowing costs.
• According to data from the Cabinet Office, Japan’s gross domestic product rose to an
annualized 11.7% YoY in the fourth quarter of 2020 following 22.9% YoY rise in the third
quarter of 2020. On a quarterly basis, gross domestic product rose 2.8% in the fourth
quarter of 2020 as against 5.3% fall in the third quarter of 2020.
10
Global News/Economy
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11
Global Indices
Indices
12-Mar-21
1-Week
Return
YTD
Return
Russell 3000 1,961.50 2.75% 0.46%
Nasdaq 100 12,937.29 2.12% 0.38%
FTSE 100 6,761.47 1.97% 4.66%
DAX Index 14,502.39 4.18% 5.71%
Nikkei Average 29,717.83 2.96% 8.28%
Straits Times 3,095.22 2.70% 8.84%
Source: Refinitiv Value as on Mar 12, 2021
U.S.
• U.S. markets largely went up amid
optimism over gradual recovery of the
economy after the House of
Representatives gave final approval to
the landmark $1.9 trillion U.S.
coronavirus relief package.
Nonetheless, concerns over elevated
Treasury yield loomed large, restricting
gains.
Europe
• European markets went up on continued optimism about global economic recovery and
following European Central Bank's pledge to speed up its bond buying program.
Asia
• Asian markets witnessed a mixed trend as positive impact of U.S. House of
Representatives giving final approval to the landmark $1.9 trillion U.S. coronavirus relief
package was neutralised by concerns over spike in U.S. Treasury yield.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury rose 9
bps to close at 1.64%, from the previous
week’s close of 1.55%. Yield rose to its
highest level in a year.
• U.S. Treasury prices fell on expectations
of higher consumer inflation and more
upbeat prospects for the U.S. economy as
it emerges from the coronavirus
pandemic.
• However, losses trimmed after data
showed U.S. inflation remained modest.
• Prices further plunged at the end on
heightened inflation fears after the
enactment of the $1.9 trillion COVID-19
stimulus package in the U.S.
Global Debt (U.S.)
1.50
1.55
1.60
1.65
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
US 10-Year Treasury Yield Movement
Source: Thomson Reuters Eikon
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13
Performance of various commodities
Commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel)
69.30 70.21
Gold ($/Oz)
1726.41 1700.86
Gold (Rs/10 gm)
44177 44310
Silver ($/Oz)
25.91 25.19
Silver (Rs/Kg)
65835 64964
Source: Refinitiv *Value as on Mar 12, 2021
Gold
• Gold prices rose as market participants
resorted to bargain hunting. However, an
improving global sentiment due to roll out
of the COVID-19 vaccine and a fall in
coronavirus infection cases across the
globe capped the gains.
Brent Crude
• Brent crude prices fell after Saudi Arabia
said that it countered the strike on its oil
sites by Yemen’s Houthi forces which eased
concerns of supply disruption in Saudi
Arabia. However, prospects for tighter
supply due to OPEC+ output curb
restricted further losses.
Baltic Dry Index
• The index rose WoW due to improved
capesize and panamax activities.
Commodities Market
9.00
10.40
11.80
12-Feb-21 26-Feb-21 12-Mar-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
2.87%
-1.30%
1.50%
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
72.68 72.76
Pound Sterling
101.47 101.01
EURO
86.88 86.99
100 Yen
66.77 67.27
Source: Refinitiv Figures in INR , *
Value as on Mar 12, 2021
Rupee
• The Indian rupee gained for the second week
against the U.S. dollar following rise in domestic
equity market and on optimism over the U.S.
fiscal stimulus.
Euro
• Euro was little changed against the U.S. dollar
as rise in U.S. treasury yields offset the upside
after the European Central Bank said it would
keep a lid on borrowing costs.
Pound
• Sterling rose against the U.S. dollar supported
by progress in Britain's vaccination programme,
with the Bank of England's governor cautiously
optimistic about an economic recovery.
Yen
• Yen fell against the U.S. dollar following rise in
U.S. treasury yields amid expectations of strong
U.S. economic growth.
Currencies Markets
9.50
9.90
10.30
12-Feb-21 26-Feb-21 12-Mar-21
USD GBP Euro JPY
Source: Refinitiv
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
-0.12%
0.46%
-0.10%
-0.74%
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15
The Week that was…
08
th
Mar to 12
th
Mar
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16
The Week that was (Mar 08 – Mar 12)
Date Events
Present
Value
Previous
Value
Monday,
March 08, 2021
• Japan Bank Lending YoY (Feb) 6.20% 6.10%
• Japan Leading Economic Index Prel (Jan) 99.10 97.70
• Germany Industrial Production MoM (Jan) -2.50% 1.90%
• U.S. Wholesale Inventories MoM (Jan) 1.30% 0.60%
• U.S. Consumer Inflation Expectations (Feb) 3.09% 3.05%
Tuesday,
March 09, 2021
• Japan GDP Growth Annualized Final (Q4) 11.70% 22.80%
• Japan Machine Tool Orders YoY (Feb) 36.70% 9.70%
• Eurozone GDP Growth Rate YoY 3rd Est (Q4) -4.90% -4.20%
• Euro Zone Employment Change YoY Final (Q4) -1.90% -2.10%
Wednesday,
March 10, 2021
• China Inflation Rate YoY (Feb) -0.20% -0.30%
• U.S. Inflation Rate YoY (Feb) 1.7% 1.4%
• U.S. Core Inflation Rate YoY (Feb) 1.3% 1.4%
• U.S. MBA Mortgage Applications (05/Mar) -1.30% 0.50%
• U.S. MBA 30-Year Mortgage Rate (05/Mar) 3.26% 3.23%
Thursday,
March 11, 2021
• European Central Bank Interest Rate Decision 0% 0%
• U.S. Initial Jobless Claims (06/Mar) 712K 754K
• Japan PPI YoY (Feb) -0.70% -1.50%
Friday,
March 12, 2021
• U.S. Michigan Consumer Sentiment Prel (Mar) 83.00 76.80
• U.K. GDP YoY (Jan) -9.20% -6.50%
• U.K. Construction Output YoY (Jan) -3.00% -3.90%
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17
The Week Ahead
15
th
Mar to 19
th
Mar
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18
Day Event
Monday,
Mar 15, 2021
• China House Price Index YoY (Feb)
• China Industrial Production YoY (Jan-Feb)
• China Retail Sales YoY (Jan-Feb)
• China Unemployment Rate (Jan-Feb)
Tuesday,
Mar 16, 2021
• U.S. Retail Sales MoM (Feb)
• Euro Zone ZEW Economic Sentiment Index (Mar)
• U.S. Industrial Production YoY (Feb)
• Japan Industrial Production YoY Final (Jan)
• Japan Capacity Utilization MoM (Jan)
Wednesday,
Mar 17, 2021
• U.S. Federal Reserve Monetary Policy Review
• Euro Zone Inflation Rate YoY Final (Feb)
• Euro Zone Core Inflation Rate YoY Final (Feb)
Thursday,
Mar 18, 2021
• Bank of England Monetary Policy Review
• Bank of England Quantitative Easing
• U.S. Initial Jobless Claims (Mar 13)
Friday,
Mar 19, 2021
• Bank of Japan Monetary Policy Review
• Japan Inflation Rate YoY (Feb)
• Japan Core Inflation Rate YoY (Feb)
The Week Ahead
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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
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