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NEWS U CAN USE
May 14, 2021
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The Week that was…
10
th
May to 14
th
May
2
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Indian Economy
• Government data showed that the Index of Industrial Production (IIP) witnessed a growth
of 22.4% in Mar 2021 as compared to a contraction of 3.4% in the previous month and a
contraction of 18.7% in the same period of the previous year. The manufacturing sector
witnessed a growth of 25.8% in Mar 2021 as compared to a contraction of 22.8% in the
same period of the previous year. The mining sector grew 6.1% in Mar 2021 as compared
to a contraction of 1.3% in the same period of the previous year while the electricity sector
witnessed a growth of 22.5% in Mar 2021 as compared to a contraction of 8.2% in Mar
2020. In FY21, IIP contracted 8.6% as compared to a contraction of 0.8% in FY20.
• Government data showed that the Consumer Price Index based inflation (CPI) fell to 4.29%
in Apr 2021 from 5.52% in Mar 2021. The Consumer Food Price Index also came down to
2.02% in Apr 2021 from 4.87% in the previous month. CPI Inflation for vegetables fell
14.18% while that of oils and fats witnessed a growth of 25.91% in Apr 2021. CPI inflation
for pulses and products stood at 7.51% during the same month.
• Government data showed that India’s trade deficit widened to $15.10 billion in Apr 2021
from $6.76 billion in Apr 2020 which corresponds to an increase of 123.17%. Exports grew
195.72% on a yearly basis $30.63 billion in Apr 2021 from $10.36 billion in the same period
of the previous year. Imports rose 167.05% over the year to $45.72 billion in Apr 2021
from $17.12 billion in the same period of the previous year.
3
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4
Domestic Equity Market Indices
Indices 14-May-21 1 Week Return YTD Return
S&P BSE Sensex
48,732.55 -0.96% 2.05%
Nifty 50
14,677.80 -0.98% 4.98%
S&P BSE Mid-Cap
20,507.79 -0.49% 14.30%
S&P BSE Small-Cap
22,200.54 -0.08% 22.67%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
10-May-21 1,353 643 2.10
11-May-21 1,182 772 1.53
12-May-21 887 1,089 0.81
14-May-21 761 1,220 0.62
Source: NSE
• Indian equity markets settled for the
week with modest losses. Bourses
witnessed initial buying interest,
supported by optimism over sooner-
than-expected taper down of the
second wave of COVID-19. Gains were
short lived amid worries over soaring
commodity prices that have sent the
cost of raw materials from copper to
iron ore and lumber to record highs and
are the latest indicator that inflation
may not be as transitory as some
policymakers are expecting.
• On the coronavirus front, the World
Health Organization said that the
coronavirus variant first identified in
India last year was being classified as a
variant of global concern. Slowdown in
the vaccination programme amid
supply crunch also weighed on investor
sentiments.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
31.03 29.79 53.22 59.78
P/B
3.13 4.20 2.98 2.95
Dividend Yield
0.87 1.00 0.93 0.84
Source: BSE, NSE Va
lue as on May 14, 2021
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
22,031.2 -0.10% -0.48%
S&P BSE Bankex
36,599.9 -2.44% 1.42%
S&P BSE CD
31,574.6 -0.10% -1.09%
S&P BSE CG
21,334.3 3.50% 4.04%
S&P BSE FMCG
12,990.4 1.93% 0.96%
S&P BSE HC
24,090.6 0.17% 7.55%
S&P BSE IT
26,131.6 -2.45% -2.29%
S&P BSE Metal
18,777.1 -4.47% 19.00%
S&P BSE Oil & Gas
15,583.3 1.18% 6.91%
Source: Refinitiv *Value as on May 14, 2021
• On the BSE sectoral front, majority of the
sectors closed in the red. S&P BSE Metal was
the major loser, down 4.47%, followed by S&P
BSE IT and S&P BSE Bankex, which fell 2.45%
and 2.44%, respectively. Meanwhile, S&P BSE
Capital Goods was the top gainer, up 3.50%,
followed by S&P BSE Power and S&P BSE
FMCG, which rose 3.14% and 1.93%,
respectively.
Indian Derivatives Market Review
• Nifty May 2021 Futures stood at 14,714.95, a premium of 37.15 points above the spot
closing of 14,677.80. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 173.96 lakh crore as against Rs. 212.61 lakh crore for the week to May 7.
• The Put-Call ratio stood at 0.86 compared with the previous week’s close of 0.83.
• The Nifty Put-Call ratio stood at 1.11 compared with the previous week’s close of 1.33.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
3.27 3.22 3.20 3.21
91 Day T-Bill
3.39 3.36 3.35 3.14
05.22% 2025, (5 Yr GOI)
5.38 5.34 5.53 5.11
05.85% 2030, (10 Yr GOI)
5.99 6.02 6.01 5.90
Source: Refinitiv Value as on May 14, 2021
• Bond yields were little changed in the
initial days of the week due to lack of
fresh triggers in the market and as
market participants awaited details of
the Reserve Bank of India’s (RBI) next
bond purchase.
• Towards the end of the week, bond
yields fell as the RBI at its weekly
government securities auction did not
accepted any bid for 10-year benchmark
paper.
• Yield on the 10-year benchmark paper
(5.85% GS 2030) fell 3 bps to close at
5.99% as compared to the previous
week’s close of 6.02%.
• Data from RBI showed that India’s
foreign exchange reserves rose $1.444
billion to $589.465 billion in the week
ended May 07, 2021 from $588.020
billion in the previous week.
Domestic Debt Market
5.95
5.99
6.03
10-May 11-May 12-May 14-May
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 3.87 4.55 68
3 Year 4.82 5.10 28
5 Year 5.65 6.29 64
10 Year 6.08 7.03 95
Source: Refinitiv Value as on
May 14, 2021
• Yields on gilt securities rose by up to 5 bps
across the maturities, barring 1-, 2-, 10- & 19-
year papers that fell 1, 3 or 20 bps. Yield on
11- & 15-year papers were unchanged.
• Corporate bond yields fell in the range of 2 to
32 bps across the curve, except 5- to 9-year
papers that rose in the range of 3 to 13 bps.
• Spread between AAA corporate bond and gilt
contracted by up to 35 bps across segments,
leaving 6-, 7- & 10-year papers that rose 10, 9
& 1 bps, respectively.
Domestic Debt Market (Spread Analysis)
-5
1
7
2.70
5.20
7.70
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 19 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 14-May-21 07-May-21
Yield in %
Change in bps
Source: Refinitiv
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8
• Capital market regulator Securities and Exchange Board of India (SEBI) issued a consultation
paper to review the regulatory framework of promoter and promoter group. The paper
primarily focuses on two aspects, namely shifting from the concept of ‘promoter’ to the
concept of ‘person in control’ and the proposed reduction in lock-in periods for minimum
promoters’ contribution and that of other shareholders in public issue. SEBI is of the view
that several Indian companies are managed and owned by a group of professional investors
rather than by a controlling family. Hence it has proposed to do away with the reference to
promoter from various SEBI regulations and instead introduce the concept of ‘person in
control’ over a transition period of three years. The move will bring about more board
control on companies tapping Indian capital markets. SEBI has also proposed to bring down
the lock in period on the 20% minimum promoter shareholding to one year from three years
and on other pre-IPO shares to six months from one year. The objective of the move is to let
markets determine the lock-in period, instead of prescribing a uniform fixed rule.
• SEBI has extended the timeline for regulatory compliances by Infrastructure Investment
Trusts (InvITs) and Real Estate Investment Trusts (REITs) by one month. The move comes
amid escalating concerns over the second wave of the COVID-19 pandemic.
• The Prime Minister released the 8th instalment of over Rs 20,000 crore to more than 9.5
crore beneficiary farmers under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme.
The scheme directly provides Rs. 6,000 annually in three equal installments to farmers.
Regulatory Updates in India
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9
• SEBI has issued disclosure standards for corporate responsibility and sustainability
reporting, which cover environmental, social, and governance aspects and will apply to the
top 1,000 listed entities by market capitalization. The new Business Responsibility and
Sustainability Report (BRSR) will take the place of the previous Business Responsibility
Report (BRR). Market participants will be able to recognize and evaluate sustainability-
related risks and opportunities as a result of the change, which is expected to increase
transparency.
• According to the Reserve Bank of India (RBI), private banks that operated as agency banks
for government businesses prior to 2012 will continue to do so for the central and state
governments without needing new permission. The RBI also stated that banks seeking
new approval from the Central Bank for government agency businesses should be in good
health and not be subject to a prompt corrective action process or a moratorium at the
time of filing the application or signing the agreement with the RBI.
• As per media reports, the government has proposed more reductions in import duties on
steel products, with the aim of getting them to zero or near-zero levels to help MSMEs
cope with the high cost of raw materials in the midst of the pandemic.
Regulatory Updates in India (contd..)
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• Data from the U.S. Labor Department showed that initial jobless claims in U.S. for the week
ended May 8, 2021 fell by 34,000 to 473,000 from the previous week's revised level of
507,000 (498,000 originally reported for the previous week).
• According to preliminary data released by the University of Michigan, U.S. consumer
sentiment index surprisingly fell to 82.8 in May 2021 from 88.3 in Apr 2021.
• According to a report released by the U.S. Federal Reserve, U.S. industrial production rose
0.7% in Apr, slower than upwardly revised 2.4% surge in Mar 2021. Rise in output was
partially due to a rebound in utilities output.
• According to data from the ZEW - Leibniz Centre for European Economic Research,
Germany’s economic sentiment rose sharply to 84.4 in May 2021 from 70.7 in Apr 2021.
The current conditions index rose by 8.7 points to -40.1 in May.
• According to the Office for National Statistics, U.K. gross domestic product fell 1.5% QoQ
in the first quarter of 2021 as against 1.3% rise in the fourth quarter of 2020. The UK
economy shrank in the first quarter as a result of school closures and a substantial drop in
retail sales earlier in the quarter.
• According to the National Bureau of Statistics, China’s consumer price inflation rose 0.9%
YoY in Apr 2021 as against 0.4% in Mar 2021. On a monthly basis, consumer prices fell 0.3%
MoM as against expected fall of 0.2%.
10
Global News/Economy
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11
Global Indices
Indices
14-May-21
1-Week
Return
YTD
Return
Russell 3000 2,030.15 -2.18% 3.97%
Nasdaq 100 13,393.12 -2.38% 3.92%
FTSE 100 7,043.61 -1.21% 9.03%
DAX Index 15,416.64 0.11% 12.38%
Nikkei Average 28,084.47 -4.34% 2.33%
Straits Times 3,055.02 -4.54% 7.43%
Source: Refinitiv Value as on May 14, 2021
U.S.
• U.S. markets went down amid concerns
about an acceleration in the rate of
inflation and potential monetary policy
tightening by the U.S. Federal Reserve.
Nonetheless, losses were restricted
following higher-than-expected drop in
initial jobless claims for the week to May
8 coupled with bargain hunting.
Europe
• European markets mostly fell as rising inflation raised speculation that the U.S. Federal
Reserve, as well as central banks in some other big economies, might wind back monetary
policy support sooner than expected.
Asia
• Asian markets also closed in the red as faster than expected U.S. inflation data raised
concerns about tighter monetary policy and its impact on the global growth outlook.
Losses were restricted later after Fed officials said that it will not raise rates until it sees
inflation above target for a long time.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury rose 6
bps to close at 1.64%, from the previous
week’s close of 1.58%.
• U.S. Treasury prices fell ahead of the U.S.
consumer inflation data for Apr 2021.
Treasury prices fell further after a much
stronger than expected reading on
consumer prices. This heightened worries
that the economy may be heading
towards a sustained period of higher
inflation.
• However, further losses were restricted
after U.S. retail sales were surprisingly
unchanged in Apr 2021, which led to
investors to pay attention to the U.S.
Federal Reserve's view that a jump in
inflation will be temporary.
Global Debt (U.S.)
1.54
1.64
1.74
10-May 11-May 12-May 13-May 14-May
Yields in %
US 10-Year Treasury Yield
Movement
Source: Refinitiv
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13
Performance of various commodities
Commodities
Last Closing* 1-Week Ago
Brent Crude($/Barrel)
69.85 69.46
Gold ($/Oz)
1842.19 1830.48
Gold (Rs/10 gm)
47,569 47,569
Silver ($/Oz)
27.42 27.43
Silver (Rs/Kg)
69,875 69,875
Source: Refinitiv *Value as on May 14, 2021
Gold
• Gold prices rose on hopes that the U.S.
Federal Reserve will keep interest rates
low for an extended period of time. Weak
U.S. retail sales data for Apr 2021 further
contributed to the upside.
Brent Crude
• Brent crude prices rose amid reports of
Colonial Pipeline in U.S. shutting down its
network following a cyberattack. However,
expectations that the pipeline will be able
to resume full operations by the end of this
week capped the gains. Meanwhile, oil
prices were weighed down by persisting
concerns over COVID-19 pandemic in India.
Baltic Dry Index
• The index rose WoW fell due to sluggish
capesize and panamax activities.
Commodities Market
9.60
9.80
10.00
10.20
10.40
10.60
10.80
11.00
14-Apr-21 29-Apr-21 14-May-21
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
-0.05%
0.56%
0.64%
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
73.37 73.74
Pound Sterling
103.05 102.51
EURO
88.76 88.90
100 Yen
67.01 67.55
Source: Refinitiv Figures in INR , *
Value as on
May 14, 2021
Rupee
• The Indian rupee rose for the third consecutive
week against the U.S. dollar on weaker-than-
expected U.S. nonfarm payroll data and
greenback sales by exporters.
Euro
• Euro fell against the U.S. dollar after U.S.
consumer price inflation rose in Apr 2021 which
fueled concerns of monetary policy tightening
by the U.S. Federal Reserve.
Pound
• Sterling gained against the U.S. dollar
supported by improved economic forecasts,
lockdown easing measures, and market relief
about the outcome of the Scottish election.
Yen
• Yen fell against the U.S. dollar after U.S.
consumer prices increased by the most in nearly
12 years in Apr 2021.
Currencies Markets
9.70
9.80
9.90
10.00
10.10
14-Apr-21 29-Apr-21 14-May-21
USD GBP Euro JPY
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
Source: Refinitiv
- 0.50%
0.53%
- 0.16%
- 0.80%
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15
The Week that was…
10
th
May to 14
th
May
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16
The Week that was (May 10 – May 14)
Date Events Present Value Previous Value
Monday,
May 10, 2021
• U.K. Halifax House Price Index YoY (Apr) 8.2% 6.5%
• U.K. Halifax House Price Index MoM (Apr) 1.40% 1.10%
• U.S. Consumer Inflation Expectations (Apr) 3.40% 3.20%
Tuesday,
May 11, 2021
• Japan Household Spending YoY (Mar) 6.2% -6.6%
• China Inflation Rate YoY (Apr) 0.9% 0.4%
• Euro Zone ZEW Economic Sentiment Index (May) 84.0 66.3
• Germany ZEW Economic Sentiment Index (May) 84.4 70.7
• Germany Wholesale Prices MoM (Apr) 1.1% 1.7%
Wednesday,
May 12, 2021
• Japan Leading Economic Index Prel (Mar) 103.20 98.90
• U.K. GDP YoY (Mar) 1.4% -7.8%
• U.K. GDP 3-Month Avg (Mar) -1.5% -1.7%
• U.S. Core Inflation Rate YoY (Apr) 3.0% 1.6%
• India Industrial Production YoY (Mar) 22.4% -3.4%
• India Inflation Rate YoY (Apr) 4.29% 5.52%
• U.S. Core Inflation Rate YoY (Apr) 3.0% 1.6%
Thursday,
May 13, 2021
• U.S. Initial Jobless Claims (Apr 10) 473K 566K
• U.S. Jobless Claims 4-week Average (May/08) 534K 655.75K
Friday,
May 14, 2021
• U.S. Retail Sales MoM (Apr) 0.00% 9.80%
• U.S. Retail Sales Ex Autos MoM (Apr) -0.80% 9.00%
• U.S. Industrial Production MoM (Apr) 0.70% 2.40%
• U.S. Michigan Consumer Sentiment Prel (May) 82.80 88.30
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17
The Week Ahead
17
th
May to 21
st
May
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18
Day Event
Monday,
May 17, 2021
• China Industrial Production YoY (Apr)
• China Retail Sales YoY (Apr)
• China Unemployment Rate (Apr)
Tuesday,
May 18, 2021
• Japan GDP Growth Annualized Prel (Q1)
• Euro Zone GDP Growth Rate QoQ 2nd Est (Q1)
• U.S. Housing Starts MoM (Apr)
• U.K. Employment Change (Feb)
Wednesday,
May 19, 2021
• Japan Industrial Production YoY Final (Mar)
• U.K. Inflation Rate YoY (Apr)
• Euro Zone Core Inflation Rate YoY Final (Apr)
• U.S. FOMC Minutes
Thursday,
May 20, 2021
• Japan Machinery Orders YoY (Mar)
• U.S. Initial Jobless Claims (15/May)
Friday,
May 21, 2021
• Germany Markit Composite PMI Flash (May)
• Euro Zone Markit Composite PMI Flash (May)
• U.K. Markit/CIPS Composite PMI Flash (May)
• U.S. Markit Manufacturing PMI Flash (May)
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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