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NEWS U CAN USE
November 13, 2020
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The Week that was…
9
th
Nov to 13
th
Nov
2
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Indian Economy
Consumer price index based inflation accelerated for the fifth consecutive month and
touched above 6-year high to 7.61% YoY in Oct 2020 from 7.27% in Sep 2020 due to
elevated food prices. Consumer Food Price Index (CFPI) rose to 11.07% YoY in Oct 2020
from 10.68% in the prior month. Vegetables and pulses inflation stood at 22.5% and
18.3%, respectively.
The Index of Industrial Production (IIP) inched up 0.2% YoY in Sep 2020 after falling in the
previous six months and 4.6% fall in Sep 2019. Marginal rise in output was mainly on
account of higher output in mining and power sectors. Mining and power output increased
1.4% and 4.9%, respectively. The manufacturing sector showed a fall of 0.6%.
According to data released by the Society of Indian Automobile Manufacturers, the
domestic wholesale (despatches from the factories to the dealers) of passenger cars for
the third consecutive month. Domestic wholesales of passenger vehicles increased 14.19%
YoY to 3,10,294 units in Oct 2020. Car sales went up 9.68% YoY to 1,82,692 units and sales
of utility vehicles surged 20.45% to 1,13,990 units.
In order to curb the coronavirus pandemic, India increased stimulus steps to rescue firms
and save jobs in an economy hit by a sudden lockdown in Mar 2020. Finance Minister said
the additional stimulus steps amount to about Rs. 9 lakh crore, taking the nation’s total
COVID-19 relief to almost Rs. 30 lakh crore, or 15% of gross domestic product (GDP).
3
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4
Domestic Equity Market Indices
Indices
13-Nov-20 1 Week Return YTD Return
S&P BSE Sensex
43,443.00 3.70% 5.31%
Nifty 50
12,719.95 3.72% 4.53%
S&P BSE Mid-Cap
15,876.49 3.06% 6.07%
S&P BSE Small-Cap
15,639.13 2.77% 14.16%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
09-Nov-20 1121 767 1.46
10-Nov-20 827 1053 0.79
11-Nov-20 989 866 1.14
12-Nov-20 1118 762 1.47
13-Nov-20 1134 730 1.55
Source: NSE
Indian equity markets touched record
closing highs during the week to settle
in the green. Market sentiments were
buoyed by expectations of better
global trade ties and hopes of more
monetary stimulus measures by the
new U.S. President-elect. Better-than-
expected earnings in Sep quarter by
Indian companies also boosted the
investors' confidence.
Investors cheered after one of the
major global pharma companies
confirmed that its vaccine, being jointly
developed with another global pharma
major, was 90% effective in preventing
COVID-19 infections. The report
renewed hopes of faster global
economic recovery.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
30.51 34.57 57.32 -501.05
P/B
2.88 3.60 2.42 2.11
Dividend Yield
0.93 1.25 1.15 1.06
Source: BSE, NSE Va
lue as on Nov 13, 2020
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
18,781.1 3.96% 3.18%
S&P BSE Bankex
32,719.8 6.43% 22.86%
S&P BSE CD
25,621.3 1.22% 5.91%
S&P BSE CG
15,810.7 6.78% 15.74%
S&P BSE FMCG
11,510.8 3.22% 3.94%
S&P BSE HC
19,826.7 0.88% -1.58%
S&P BSE IT
21,600.6 -0.49% -4.68%
S&P BSE Metal
9,422.3 8.12% 18.16%
S&P BSE Oil & Gas
12,957.5 4.94% 7.78%
Source:
Refinitiv *Value as on Nov 13, 2020
On the BSE sectoral front, barring S&P BSE IT,
all the major sectors closed in the green. S&P
BSE Metal was the top gainer, up 8.12%,
followed by S&P BSE Realty and S&P BSE
Capital Goods, which went up 6.82% and
6.78%, respectively.
Metal sector rose with steel industry showing
robust performance as China has again started
consuming a lot more than they used to in the
recent past.
Indian Derivatives Market Review
Nifty Nov 2020 Futures stood at 12,753.40, a premium of 33.45 points above the spot
closing of 12,719.95. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 150.21 lakh crore as against Rs. 114.94 lakh crore for the week to Nov 6.
The Put-Call ratio stood at 0.86 compared with the previous session’s close of 0.88.
The Nifty Put-Call ratio stood at 1.53 compared with the previous session’s close of 1.77.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-Wk
Ago
1-Mth
Ago
6-Mth
Ago
Call Rate
3.21 3.20 3.39 3.88
91 Day T-Bill
3.14 3.16 3.29 3.45
05.22% 2025, (5 Yr GOI)
5.11 5.11 5.17 5.08
05.77% 2030, (10 YrGOI)
5.88 5.87 5.90 5.76
Source: Refinitiv Value as on Nov 13, 2020
Bond yields rose in the initial days as
market participants preferred to
remain on the sidelines and awaited
the retail inflation data for Oct 2020.
However, losses almost reversed at
the end after the Reserve Bank of
India (RBI) announced more open
market operations (OMO) to help clear
out a record borrowing schedule.
Yield on the 10-year benchmark paper
(5.77% GS 2030) inched up 1 bps to
close at 5.88% from the previous
week’s close of 5.87% after moving in
a range of 5.87% to 5.94%.
RBI conducted the auction of OMO
purchase and sale auction for the
notified amount of Rs. 10,000 crore
each, which were completely
accepted.
Domestic Debt Market
5.84
5.89
5.94
9-Nov 10-Nov 11-Nov 12-Nov 13-Nov
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 3.35 4.94 158
3 Year 4.57 5.31 74
5 Year 5.17 6.46 129
10 Year 5.96 7.03 106
Source: Refinitiv Value as on
Nov 13, 2020
Yields on gilt securities fell across 1 to 5-
year maturities by up to 10 bps and
increased across the remaining maturities
by up to 3 bps.
Corporate bond yields increased across 6
to 9-year maturities by up to 5 bps and fell
across the remaining maturities in the
range of 2 bps to 30 bps.
Domestic Debt Market (Spread Analysis)
-14
-4
6
2.40
4.90
7.40
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 13-Nov-20 06-Nov-20
Yield in %
Change in bps
Source: Thomson Reuters Eikon
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8
The Finance Minister announced an additional investment of Rs. 18,000 crore for the urban
housing scheme to help complete real estate projects that would generate jobs and
improve the economy. The amount is over and above the Rs. 8,000 crore Budget Estimates
for FY21 for the Prime Minister Awas Yojana through additional allocation and extra
budgetary resources.
The government has approved the revised Viability Gap Financing scheme, which envisages
a total outlay of Rs. 8,100 crore till 2024-25 to promote investment in social and economic
infrastructure projects.
The Ministry of Power has stated that it has mandated all electricity distribution utilities
(discoms) to comply with the Energy Conservation Act of 2001, which would reduce energy
losses and bring more transparency to the sector. Previously, only discoms with annual
energy losses equal to or greater than 1,000 MU (million units) reported as designated
consumers used to fall within the scope of the Act.
Oil minister said, government has invited global companies to invest in its strategic oil
reserves as the nation's growth as India’s growth in energy consumption will be the fastest
among the major economies in the coming decades.
Finance minister asked banks to ensure all accounts are Aadhaar-seeded and linked with
Permanent Account Number (PAN) by Mar 31, 2021. She also asked banks to promote digital
transactions.
Regulatory Updates in India
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9
Under the Export of Milk and Milk Products (Quality Control, Inspection and Monitoring)
Rules, 2020, government made a health certification mandatory for all milk and milk
product exports. Products will be subject to stringent quality control, inspection and
monitoring. Milk and milk products not complying with the standards will be prohibited.
In line with the interim recommendations of the 15th finance commission, the central
government has disbursed Rs 6,195.08 crore to 14 states on account of the eighth
equated monthly instalment of the post-devolution revenue deficit grant. The 14 states
are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram,
Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.
The 15th Finance Commission submitted its report titled ‘Finance Commission in COVID
Times’ for 5 years from FY22 to FY26 to India’s President. The Commission was asked to
give its recommendations on wide-ranging issues. Apart from vertical and horizontal tax
devolution, local government grants, disaster management grants, it was also asked to
analyse and suggest performance incentives for states in many areas such as power sector,
direct benefit transfer, solid waste management, etc.
The government announced a new version of its Rs 3-lakh-crore guaranteed loan
programme, originally meant for MSMEs, to benefit even larger firms in 27 stressed
sectors affected by COVID-19 pandemic.
Regulatory Updates in India (contd..)
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The Labor Department said U.S. consumer prices remained steady in Oct 2020 after rising
0.2% in Sep 2020. Food prices rose by 0.2% after steady in the previous month. Energy
prices inched up 0.1%, slower than 0.8% rise in the previous month.
According to flash estimate from Eurostat, Eurozone gross domestic product (GDP) rose
12.6% QoQ in the third quarter of 2020 as against 11.8% decline in the second quarter of
2020. On a yearly basis, GDP fell 4.4% in the third quarter as against 14.8% decrease seen
in the second quarter. Euro area grew at the fastest pace on record in the third quarter
after shrinking for two straight quarters following ease in COVID-19 control measures.
According to the Office for National Statistics, Gross domestic product of U.K. surged
15.5% QoQ in the Sept quarter of 2020 compared with 19.8% contractions in the previous
quarter and 2.5% fall in the Mar quarter of 2020. Quantum of growth was the biggest since
records began in 1955. In the third quarter, the UK economy moved out of a recession at a
record rate ahead of the second national lockout.
According to data from the National Bureau of Statistics, China’s consumer price inflation
fell to 0.5% YoY in Oct 2020 from 1.7% in Sep 2020. On monthly basis, consumer prices fell
0.3% as against 0.2% rise in Sep 2020.
According to data from the Cabinet Office, Japan’s current conditions index of the
Economy Watchers' Survey, which measures the current situation of the economy,
increased to 54.5 in Oct 2020 from 49.3 in Sep 2020. The outlook index that signals future
activity rose to 49.1 in Oct from 48.3 in Sep.
10
Global News/Economy
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11
Global Indices
Indices
13-Nov-20
1-Week
Return
YTD
Return
Russell 3000 1,823.60 -1.02% 27.88%
Nasdaq 100 11,937.85 -1.27% 36.70%
FTSE 100 6,316.39 6.88% -16.26%
DAX Index 13,076.72 4.78% -1.30%
Nikkei Average 25,385.87 4.36% 7.31%
Straits Times 2,711.39 5.15% -15.87%
Source: Refinitiv Value as on Nov 13, 2020
U.S.
U.S. markets largely w
ent up initially
following upbeat results from a phase
3 study of the coronavirus vaccine
developed by Pfizer and BioNTech. The
vaccine news added to positive
sentiment generated in reaction to the
news that Democratic candidate won
the presidential election. Gains were
erased to some extent as the recent
surge in coronavirus cases across U.S.
and Europe led to renewed concerns
about the economic outlook.
Europe
European markets witnessed strong gains over the week. Encouraging news on the
coronavirus vaccine front, and positive reaction to U.S. Democrat's win in the presidential
election buoyed market sentiments.
Asia
Asian markets largely closed in the green as optimism over COVID-19 vaccine and receding
U.S. political uncertainty outweighed worries about a surge in coronavirus cases
worldwide.
Global Equity Markets
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12
Yields on the 10-year U.S. Treasury rose
8 bps to close at 0.90% compared to the
previous week’s close of 0.82%.
U.S. Treasury prices fell initially during
the week under review as prospects of a
potential COVID-19 vaccine boosted
market sentiments which dampened
the safe-haven appeal of U.S. Treasuries.
Market participants remained optimistic
of a COVID-19 vaccine after a major
American multinational pharmaceutical
corporation announced that its
experimental vaccine was more than
90% effective in preventing COVID-19,
based on initial data from a large study.
Further losses were restricted as U.S.
Treasury prices went up due to renewed
concerns over COVID-19 pandemic
following a surge in coronavirus
infection cases across the globe.
Global Debt (U.S.)
0.82
0.92
1.02
9-Nov 10-Nov 11-Nov 12-Nov 13-Nov
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($/Barrel)
41.19 37.81
Gold ($/Oz)
1888.04 1951.51
Gold (Rs/10 gm)
50,738 52,192
Silver ($/Oz)
24.63 25.59
Silver (Rs/Kg)
62609 65753
Source: Refinitiv *Value as on Nov 13, 2020
Gold
Gold prices fell as optimism regarding a
potential COVID-19 vaccine fuelled
expectations for a quick economic rebound
which dampened the safe haven appeal of
the yellow metal.
Brent Crude
Brent crude prices rose as optimism
regarding a potential COVID-19 vaccine
improved the demand outlook of the
commodity. Gains were extended after
data from the American Petroleum
Institute showed that U.S. crude stockpiles
fell by 5.1 million barrels in the week to
Nov 6 to about 482 million barrels.
Baltic Dry Index
The index fell due to sluggish capesize and
panamax activities.
Commodities Market
8.40
9.60
10.80
13-Oct-20 29-Oct-20
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Refinitiv
-3.76%
8.94%
-3.25%
13-Nov-20
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing* 1-Wk Ago
US Dollar
74.67 74.05
Pound Sterling
98.00 97.20
EURO
88.15 87.52
100 Yen
71.16 71.52
Source: RBI Figures in INR , *
Value as on Nov 13, 2020
Rupee
The rupee in the spot trade weakened
against the greenback following persistent
dollar purchases from state-run banks,
likely on behalf of the RBI.
Euro
The euro weakened against the greenback
as prospects of a COVID-19 vaccine fuelled
expectations of high economic growth of
the U.S. economy.
Pound
The pound strengthened against the
greenback on prospects of a COVID-19
vaccine and expectations that a post-Brexit
trade agreement was imminent.
Yen
The yen weakened against the greenback
as prospects of a COVID-19 vaccine
dampened yen’s safe haven appeal.
Currencies Markets
9.70
10.05
10.40
13-Oct-20 29-Oct-20
USD GBP Euro JPY
Source: Refinitiv
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
13-Nov-20
0.73%
-0.50%
0.83%
0.82%
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15
The Week that was…
9
th
Nov to 13
th
Nov
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16
The Week that was (Nov 9 Nov 13)
Date Events Present Value Previous Value
Monday,
Nov 09, 2020
• Germany Trade Balance (Euro) (Sep) 17.8B 15.4B
• Eurozone Sentix Investor Confidence (Nov) -10 -8.3
• Japan Trade Balance - BOP Basis (Yen) (Sep) 918.4B 413.2B
Tuesday,
Nov 10, 2020
• China Consumer Price Index (YoY) (Oct) -2.10% -2.10%
• U.K. ILO Unemployment Rate (3M)(Sep) 4.80% 4.50%
• Eurozone ZEW Survey Economic Sentiment(Nov) 32.8 52.3
• Germany ZEW Survey Economic Sentiment(Nov) 39.0 56.1
Wednesday,
Nov 11, 2020
• China New Loans (Oct) 689.8B 1900B
• China M2 Money Supply (YoY) (Oct) 10.50% 10.90%
• U.S. MBA Mortgage Applications (Nov 6) -0.50% 3.80%
• Japan Producer Price Index (YoY)(Oct) -2.10% -0.80%
• Japan Machinery Orders (YoY)(Sep) -11.50% -15.20%
Thursday,
Nov 12, 2020
• India Consumer Price Index (YoY ) (Oct) 7.61% 7.27%
• India Index of Industrial Production (YoY) (Oct) 0.24% -7.37%
• U.K. GDP (QoQ)(Q3) PREL 15.50% -19.80%
• U.S. Consumer Price Index (YoY)(Oct) 1.20% 1.40%
• U.S. Monthly Budget Statement (USD) (Oct) -284B -125B
Friday,
Nov 13, 2020
• Eurozone GDP s.a. (QoQ)(Q3) PRE 12.60% 12.70%
• Germany Wholesale Price Index (YoY) (Oct) -1.90% -1.80%
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17
The Week Ahead
16
th
Nov to 20
th
Nov
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18
Day Event
Monday,
Nov 16, 2020
China Retail Sales (YoY) (Oct)
China Industrial Production (YoY) (Oct)
Japan Industrial Production (YoY) (Sep)
China House Price Index (Oct)
U.K. Rightmove House Price Index (YoY) (Nov)
Tuesday,
Nov 17, 2020
U.S. Retail Sales (MoM) (Oct)
Eurozone Construction Output (YoY) (Sep)
U.S. Industrial Production (MoM) (Oct)
Japan Merchandise Trade Balance Total (Oct)
Wednesday,
Nov 18, 2020
U.K. Consumer Price Index (YoY) (Oct)
U.K. Retail Price Index (MoM) (Oct)
Eurozone Consumer Price Index (MoM) (Oct)
Thursday,
Nov 19, 2020
Japan Consumer Price Index (YoY) (Oct)
U.S. Existing Home Sales (MoM) (Oct)
Friday,
Nov 20, 2020
U.K. Retail Sales (YoY) (Oct)
Germany Producer Price Index (MoM) (Oct)
Eurozone Consumer Confidence (Nov) PREL
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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