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NEWS U CAN USE
November 20, 2020
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The Week that was…
16
th
Nov to 20
th
Nov
2
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Indian Economy
• Government data showed that the Wholesale Price Index (WPI) based inflation rose to 1.48%
in Oct 2020 from 1.32% in Sep 2020 and 0.00% in the same period of the previous year. The
WPI Food Index however came down to 5.78% in Oct 2020 from 6.92% in Sep 2020 and 4.75%
in Aug 2020. WPI Inflation for food articles fell to 6.37% in Oct 2020 from 9.80% in the same
period of the previous year while the same for fuel and power contracted 10.95% in Oct 2020
from 8.09% in the same period of the previous year. WPI inflation for manufactured products
however increased 2.12% in Oct 2020 as compared to a contraction of 0.93% in Oct 2019.
• Data from the Directorate General of Civil Aviation showed that passenger carried by domestic
airlines during the period from Jan to Oct of 2020 stood at 493.31 lakhs as compared to
1182.06 lakhs in the same period of the previous year thereby registering a degrowth of
58.27%. However, addition of flights and an increase in load factor due to the onset of festive
season and gradual relaxation of coronavirus induced lockdowns helped the domestic air
traffic grow 33.68% on a monthly basis in Oct 2020. Total domestic passengers carried by
scheduled domestic airlines rose from 39.43 lakh in Sep 2020 to 52.71 in Oct 2020.
• A major global credit rating agency has lowered the contraction rate for India’s gross domestic
product for FY21 to 10.6% from its earlier projection of 11.5%. The global credit rating agency
has also upgraded its growth forecast for the Indian economy for FY22 to 10.8% from the
earlier projection of 10.6%. The rating agency is of the view that the latest stimulus measures
announced by the government will improve the competitiveness of the manufacturing sector,
generate employment, foster infrastructure investment and make credit available to stressed
sectors.
3
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4
Domestic Equity Market Indices
Indices
20-Nov-20
1 Week Return
YTD Return
S&P BSE Sensex
43,882.25 1.01% 6.37%
Nifty 50
12,859.05 1.09% 5.68%
S&P BSE Mid
-Cap
16,436.50 3.53% 9.81%
S&P BSE Small
-Cap
16,182.55 3.47% 18.13%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
17-Nov-20 1,058 853 1.24
18-Nov-20 1,078 812 1.33
19-Nov-20 829 1,057 0.78
20-Nov-20 1,099 770 1.43
Source: NSE
• Indian equity markets settled for the
week with modest gains. Investors
continued to take positive cues from
reports on the coronavirus vaccine and
hopes of improving economic
indicators in the near future. Buying
interest found additional support from
reports that another major global
pharma company, in its trial of
potential coronavirus vaccine, met the
statistical criteria pre-specified in the
study protocol for efficacy, with a
vaccine efficacy of 94.5%.
• Markets extended the rally later with
Sensex surpassing the 44,000-closing
mark, mirroring global advance as the
multinational pharma companies'
promising COVID-19 vaccine trial
results continued to boost hopes of a
quicker return to economic growth.
Ratios
S&P BSE
Sensex
Nifty 50
S&P BSE
Mid Cap
S&P BSE
Small Cap
P/E
31.28 35.36 58.85 -325.55
P/B
2.92 3.64 2.47 2.19
Dividend Yield
0.92 1.23 1.11 1.02
Source: BSE, NSE Va
lue as on Nov 20, 2020
Indian Equity Market
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5
Sectoral Indices
Indices
Last
Closing*
Returns (in %)
1-Wk 1-Mth
S&P BSE Auto
19,642.93 4.59% 10.01%
S&P BSE Bankex
33,604.81 2.70% 21.79%
S&P BSE CD
26,691.99 4.18% 9.27%
S&P BSE CG
16,988.86 7.45% 23.31%
S&P BSE FMCG
11,585.94 0.65% 4.38%
S&P BSE HC
19,722.73 -0.52% -0.25%
S&P BSE IT
21,465.88 -0.62% -2.61%
S&P BSE Metal
9,645.55 2.37% 15.56%
S&P BSE Oil & Gas
12,914.87 -0.33% 7.94%
S&P BSE Power
1,962.62 4.96% 21.65%
Source:
Refinitiv *Value as on Nov 20 , 2020
• On the BSE sectoral front, majority of the
sectors closed in the green. S&P BSE Capital
Goods was the major gainer, up 7.45%,
followed by S&P BSE Power and S&P BSE Auto,
which rose 4.96% and 4.59%, respectively.
• Meanwhile, S&P BSE IT was the major loser,
down 0.62%, followed by S&P BSE Healthcare
and S&P BSE Oil & Gas, which slipped 0.52%
and 0.33%, respectively.
Indian Derivatives Market Review
• Nifty Nov 2020 Futures stood at 12,871.30, a premium of 12.25 points above the spot
closing of 12,859.05. The total turnover on NSE’s Futures and Options segment for the
week stood at Rs. 131.62 lakh crore as against Rs. 150.21 lakh crore for the week to Nov 13.
• The Put-Call ratio stood at 0.90 compared with the previous session’s close of 0.86.
• The Nifty Put-Call ratio stood at 1.57 compared with the previous session’s close of 1.53.
Indian Equity Market (contd.)
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6
Debt Indicators
(%)
Current
Value
1-
Wk
Ago
1-
Mth
Ago
6-
Mth
Ago
Call Rate
3.16 3.21 3.36 3.98
91 Day T
-Bill
2.99 3.14 3.25 3.25
05.22% 2025, (5
Yr GOI)
5.06 5.11 5.21 5.08
05.77% 2030, (10
YrGOI)
5.88 5.88 5.93 5.77
Source:
Refinitiv Value as on Nov 20, 2020
• Bond yields stood steady during the
week as investors awaited further
clarity on Reserve Bank of India’s bond
purchases and also domestic country’s
economic growth data which is due
later this month.
• Yield on the 10-year benchmark paper
(5.77% GS 2030) stood unchanged at
5.88% from the previous week’s close
after moving in a range of 5.86% to
5.89%.
• RBI announced Special OMO of
simultaneous Purchase and Sale of
Government of India Securities for the
notified amount of Rs. 10,000 crore
each on Nov 26, 2020.
Domestic Debt Market
5.85
5.87
5.89
17-Nov 18-Nov 19-Nov 20-Nov
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
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7
Maturity
G-
Sec Yield
(%)
Corporate Yield
(%)
Spread
bps
1 Year 3.41 4.84 143
3 Year 4.47 5.21 74
5 Year 5.12 6.38 126
10 Year 5.96 7.05 108
Source:
Refinitiv
Value as on
Nov 20, 2020
• Yields on gilt securities fell across the
papers by up to 13 bps barring 1, 11 and 19-
yr paper that increased by up to 5 bps while
the closed steady on 10 and 14-yr paper.
• Corporate bond yields fell across papers in
the range of 2 to 9 bps barring 9 and 15-yr
paper which closed steady while increased
on 10-yr paper by 2 bps.
• Difference in spread between AAA
corporate bond and gilt expanded across
the maturities by up to 6 bps barring 1-yr
paper and 5 to 7-yr maturities which
contracted by up to 15 bps.
Domestic Debt Market (Spread Analysis)
-20
-5
10
2.60
4.70
6.80
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 20-Nov-20 13-Nov-20
Yield
in %
Change
in bps
Source: Thomson Reuters Eikon
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8
• The Department of Investment and Public Asset Management (DIPAM) has signed an
agreement with World Bank for receiving advisory services on asset monetization. The
objective of the move is to provide support to DIPAM in detailing & globally benchmarking
the policies & processes for asset monetization to help unlock their value & channelize
investments & growth.
• The Central Government has approved an additional outlay of Rs.10,000 Crores for PM Garib
Kalyan Rozgar Yojana. The objective of the move is to give a boost to rural employment. The
PM Garib Kalyan Rozgar Yojana is already in progress in 116 districts and Rs. 37,543 crore has
been spent till date.
• The Central Government has decided to provide Rs. 65,000 crore for ensuring adequate
availability of fertilizers for farmers in the upcoming crop season. The increased supply of
fertilizers at subsidized rate is expected to help 140 million farmers.
• Capital market regulator Securities and Exchange Board of India (SEBI) has asked the
National Stock Exchange to increase the corpus of the investor protection fund (IPF) to Rs.
1,500 crore from the current Rs. 550 crore. According to reports, SEBI is concerned
regarding the low IPF corpus due to rise in defaults by stock brokers and added that added
that it is working on a formula which will be followed by the stock exchanges to increase the
IPF corpus every year.
Regulatory Updates in India
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9
• SEBI revised the guidelines pertaining to preferential issue and institutional placement of
units by a listed Infrastructure Investment Trusts (“InvITs”). According to the new norms,
the preferential issue of units would not be made to any person who has sold or
transferred any units of the issuer during the six months preceding the relevant date
• According to reports, the government is planning to link e-courts with land records and
registration databases of the department of land resources. The objective of the move is
to bring about easier and earlier disposal of land disputes.
• An internal working group constituted by the Reserve Bank of India (RBI) recommended
that large industrial houses be allowed as promoters of banks. The internal working group
also recommended that large non banking financial companies with asset size of more
than Rs. 50,000 crore can be considered for conversion into banks subject to the
completion of 10 years of operation.
• A memorandum of understanding was signed between the Ministry of Petroleum and
Natural gas and leading oil & gas marketing companies & technology providers for setting
up Compressed Bio-Gas CBG) plants across India under the Sustainable Alternative
Towards Affordable Transportation (SATAT) initiative. The objective of the move is to give
a boost to the availability of affordable and clean transport fuels. The Petroleum Minister
in this regard said that Rs. 2 lakh crore will be invested for setting up a total of 5000 CBG
plants.
Regulatory Updates in India (contd..)
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• The Commerce Department reported U.S. retail sales went up 0.3% in Oct 2020, slower
than downwardly revised jump of 1.6% (1.9% rise originally reported) in the prior month.
Barring sales by motor vehicle and parts dealers, retail sales rose 0.2% after surging 1.2%.
Slower sales growth was partly due to plunge in sales by clothing and accessories stores,
sporting goods, hobby, musical instrument and book stores and department stores.
• The Office for National Statistics reported, U.K. consumer prices accelerated to 3-month
high to 0.7% YoY in Oct 2020, from 0.5% rise in Sep 2020 driven by higher clothing and
food prices. Sequentially, consumer prices remained steady in Oct 2020 compared with
0.4% rise in Sep 2020.
• Data form Eurostat showed, eurozone construction output fell 2.9% MoM in Sep 2020
contrary to 3.9% rise in the previous month. Construction output fell for the first time
after rising in the previous four consecutive months. Building construction and civil
engineering output dropped 3.2% sequentially 0.4%.
• The Ministry of Communications and Internal Affairs said, Japan’s consumer prices
contracted 0.4% YoY in Oct 2020 compared with no change in Sep 2020. Core consumer
prices fell 0.7% YoY in Oct 2020, worse than 0.3% decline in the prior month. The largest
decline were seen in food, fuel, communications and recreation.
• China’s one-year loan prime rate was kept unchanged at 3.85% and the 5-year loan prime
rate was maintained at 4.65%. This is the seventh straight month when loan prime rates
were kept steady after reducing in in April.
10
Global News/Economy
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11
Global Indices
Indices
20-Nov-20
1-Week
Return
YTD
Return
Russell 3000
1,817.49 -0.34% 27.45%
Nasdaq 100
11,906.44 -0.26% 36.34%
FTSE 100
6,351.45 0.56% -15.79%
DAX Index
13,137.25 0.46% -0.84%
Nikkei Average
25,527.37 0.56% 7.91%
Straits Times
2,813.01 3.75% -12.72%
Source:
Refinitiv
Value as on Nov 20, 2020
U.S.
• U.S. markets largely witnessed muted
gains amid renewed concerns about
new restrictions and lockdowns as a
result of the recent surge in coronavirus
cases. Markets found underlying
support from hopes of resumption of
negotiation over a new COVID-19
stimulus bill following comments from
Senate Minority Leader.
Europe
• European markets edged higher, led by rising optimism over effective coronavirus vaccine.
Signs of progress in Brexit negotiations, and strong economic data from China and Japan
also contributed to the upside.
Asia
• Asian markets settled for the week in the green despite worries over surge in global
coronavirus cases and disappointing U.S. retail sales. Optimism over potential COVID-19
vaccines continued to provide underlying support.
Global Equity Markets
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12
• Yields on the 10-year U.S. Treasury fell 6 bps
to close at 0.83% compared to the previous
week’s close of 0.89%.
• U.S. Treasury prices rose after U.S. retail sales
increased less than expected in Oct 2020 as
spending has been curtailed by rising COVID-
19 infections and decreasing household
income as millions of unemployed Americans
lose government financial assistance.
• Treasury prices rose further amid possibility
of a weak fourth economic quarter. As new
business closures to control rising COVID-19
infections unleashed a new wave of layoffs
and further hindered the labour market
recovery, the number of people filing new
claims for jobless benefits in U.S. dramatically
increased last week.
• However, news of another promising vaccine
for coronavirus raised hope that the
economy could be closer to returning to
normal.
Global Debt (U.S.)
0.80
0.86
0.92
16-Nov 17-Nov 18-Nov 19-Nov 20-Nov
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($/Barrel)
42.81 41.19
Gold ($/Oz)
1,870.49 1,888.04
Gold (Rs/10 gm)
50,199 50,738
Silver ($/Oz)
24.14 24.63
Silver (Rs/Kg)
62,028 62,609
Source:
Refinitiv *Value as on
Nov 20, 2020
Gold
• Gold prices fell as progress in COVID-19
vaccine development boosted hopes of a
faster economic rebound which dampened
the safe haven appeal of the bullion.
Brent Crude
• Brent crude prices rose on optimism
regarding the availability of a COVID-19
vaccine. Hopes that OPEC and its allies will
delay a planned increase in oil output also
added to the gains. Gains were restricted
as increase in coronavirus infection cases
across the globe hurt the demand outlook
of the commodity.
Baltic Dry Index
• The index rose during the week due to
improved capesize and panamax activities.
Commodities Market
8.00
9.00
10.00
11.00
20-Oct-20 5-Nov-20
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global
Commodity Prices
Rebased to 10
Source: Thomson Reuters Eikon
-1.97%
3.93%
-0.93%
20-Nov-20
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14
Movement of Rupee vs Other Currencies
Currency
Last Closing*
1-Wk Ago
US Dollar
74.16 74.67
Pound Sterling
98.50 98.00
EURO
88.15 88.15
100 Yen
71.47 71.16
Source: RBI Figures in INR , *
Value as on Nov 20, 2020
Rupee
• The Indian rupee rose against the greenback
following gains in the domestic equity
market and selling of the greenback by
foreign banks.
Euro
• Euro rose against the greenback after second
pharmaceutical firm reported positive results
from its COVID-19 vaccine trials.
Pound
• Pound gained against the weak U.S. dollar on
hopes that U.K. will forge a post-Brexit trade
deal with the European Union in time for its
departure from the customs union and single
market in Jan 2020.
Yen
• Yen strengthened against the continuous
weak greenback on optimism over a second
coronavirus vaccine.
Currencies Markets
9.90
10.17
10.44
20-Oct-20 5-Nov-20
USD GBP Euro JPY
Source: Thomson Reuters Eikon
Currency
Prices (
in terms of INR)
Rebased to 10
Currency Movement
0.00%
0.50%
-0.69%
0.44%
20-Nov-20
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15
The Week that was…
16
th
Nov to 20
th
Nov
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16
The Week that was (Nov 16 – Nov 20)
Date Events
Present
Value
Previous
Value
Monday,
Nov 16, 2020
• China Retail Sales (YoY) (Oct)
4.3% 3.3%
• China Industrial Production (YoY) (Oct)
6.9% 6.9%
• Japan Industrial Production (YoY) (Sep)
-9.0% -13.8%
• China House Price Index (Oct)
4.3% 4.6%
• Japan GDP Growth Annualized
Prel (Q3) 21.4% -28.8%
Tuesday,
Nov 17, 2020
• U.S. Retail Sales (MoM) (Oct)
0.3% 1.6%
• Eurozone Construction Output (YoY) (Sep)
-2.5% 0.4%
• U.S. Industrial Production (MoM) (Oct)
-5.3% -6.7%
• Japan Merchandise Trade Balance Total (Oct)
¥872.9 B ¥687.8 B
Wednesday,
Nov 18, 2020
• U.K. Consumer Price Index (YoY) (Oct)
0.7% 0.5%
• U.K. Retail Price Index (MoM) (Oct)
1.3% 1.1%
• Eurozone Consumer Price Index (MoM) (Oct)
-0.3% -0.3%
• U.S. Housing Starts Change (Oct)
1.53M 1.459M
Thursday,
Nov 19, 2020
• Japan Consumer Price Index (YoY) (Oct)
-0.4% 0.0%
• U.S. Existing Home Sales (MoM) (Oct)
6.85 M 6.57 M
Friday,
Nov 20, 2020
• U.K. Retail Sales (YoY) (Oct)
5.8% 4.6%
• Germany Producer Price Index (MoM) (Oct)
-0.7% -1.0%
• Eurozone Consumer Confidence (Nov) PREL
-17.6 -15.5
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17
The Week Ahead
23
rd
Nov to 27
th
Nov
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18
Day Event
Monday,
Nov 23, 2020
•
Germany Markit Composite PMI Flash (Nov)
•
Eurozone Markit Composite PMI Flash (Nov)
•
U.K. Markit/CIPS Composite PMI Flash (Nov)
•
U.S. Markit Manufacturing PMI Flash (Nov)
Tuesday,
Nov 24, 2020
•
Germany GDP Growth Rate YoY Final (Q3)
•
Germany Ifo Business Climate (Nov)
•
U.S. House Price Index MoM (Sep)
•
U.S. CB Consumer Confidence (Nov)
Wednesday,
Nov 25, 2020
•
U.S. Durable Goods Orders MoM (Oct)
•
U.S. GDP Growth Rate QoQ 2nd Est (Q3)
•
U.S. Michigan Consumer Sentiment Final (Nov)
•
U.S. Core PCE Price Index YoY (Oct)
Thursday,
Nov 26, 2020
•
Germany GfK Consumer Confidence (Dec)
•
Japan Leading Economic Index Final (Sep)
Friday,
Nov 27, 2020
•
Eurozone Consumer Confidence Final (Nov)
•
China Industrial Profits (YTD) YoY (Oct)
•
U.K. Nationwide Housing Prices YoY (Nov)
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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19
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