ICICI Prudential MF

HEAD START
June 6, 2022

INDIAN EQUITY SUMMARY

• Indian benchmark equity indices fell on Friday weighed down by losses in auto, metal, bank and realty stocks.
• Further, investors remained cautious ahead of RBI monetary policy meet next week.

Nifty Equity Benchmark Indices (Returns %) Domestic Equity Benchmark Indices (Returns %)
Index 3 Jun 1 Day 1 Week 1 Month 1 Year Index 3 Jun 1 Day 1 Week 1 Month 1 Year
Mid Cap 28023 -1.64 1.32 -5.66 6.30 Sensex 55769 -0.09 1.61 -2.12 6.77
Small Cap 9210 -0.86 4.38 -8.99 -2.44 Nifty 50 16584 -0.26 1.42 -2.84 5.70
Auto 11282 -1.82 0.11 3.14 5.96
Bank 35275 -0.95 -0.95 -2.46 -1.05 FII / Mutual Fund data
Energy 25882 -0.33 1.45 -9.42 27.32 (Rs Cr) 2 Jun MTD YTD
FMCG 38274 -0.58 0.08 -0.03 8.53 FIIs -571.40 -1293.79 -170078.39
Infra 4853 -0.70 2.29 -5.26 9.93 Mutual Funds NA 27.91* 116716.65*
IT 29904 0.37 4.41 -3.97 10.80 *Data as of Jun 1
Metal 5329 -1.27 2.25 -16.25 1.15 Nifty P/E
Pharma 12419 -0.65 -1.98 -7.74 -12.01 Latest P/E* FY23E FY24E
Realty 407 -0.96 4.90 -8.51 15.55 20.52X 18.70X 16.15X
* Data as of Jun 3

INDIAN DEBT MARKET SUMMARY

• The interbank call money rate ended higher at 3.70% on Friday compared to 3.50% on Thursday.
• Government bond prices declined on Friday due to weak demand at the weekly debt auction.
• Meanwhile, investors remained cautious ahead of next week’s monetary policy meeting.
• The yield of the 10-year benchmark 6.54% 2032 bond ended higher at 7.46% on Friday compared to 7.43% on Thursday.

Debt Watch Auctions/ Money market operations

3 Jun Week Ago Month Ago Year Ago Date Description Amount (Rs Cr)
Call Rate 3.70% 3.50% 3.00% 3.00% Jun 3 G-sec auction 32,000 (Allotted)
Repo 4.40% 4.40% 4.00% 4.00% Jun 3 Total repo 86,748 (outstanding)
10 Yr Gilt^ 7.45% 7.35% 7.12% 6.00% Jun 3 Total reverse repo 4,87,721 (outstanding)

91-D T Bill^ 4.96% 4.87% 3.99% 3.39% Jun 3 Marginal Standing Facility 100

182-D T Bill^ 5.48% 5.43% 4.38% 3.62% Jun 3 GOI Surplus Cash Balance with 0
RBI
364-D T Bill^ 6.07% 5.90% 4.77% 3.73%
1-mth CP rate 5.30% 5.10% 4.25% 3.63%
Yields (%) Gsec* AAA AA+ AA AA- A+
3-mth CP rate 5.45% 5.40% 4.45% 3.65%
6 month 5.48 5.80 6.95 7.92 8.91 9.92
6-mth CP rate 6.20% 6.10% 4.90% 4.05%
1 Year 6.23 6.45 7.60 8.57 9.56 10.57
1 yr CP rate 6.55% 6.52% 5.30% 4.50%
3 Year 7.00 7.10 8.25 9.22 10.21 11.22
1-mth CD rate 4.85% 4.70% 3.96% 3.40% 5 Year 7.29 7.49 9.22 10.19 11.18 12.19
3-mth CD rate 5.05% 5.10% 4.10% 3.44% 10 Year 7.45 7.75 9.48 10.45 11.44 12.45
6-mth CD rate 5.70% 5.70% 4.60% 3.67% G-sec and corporate bonds data as of Jun 3 * Weighted average
1 yr CD rate 6.33% 6.30% 5.15% 4.00% yields for G-sec data 6 month G-sec: 182 day T-Bill rate; 1 year G-Sec:
7.16% CGL 2023; 3 year G-Sec: 5.22% GS 2025; 5 year G-Sec: 06.79
^Weighted Average Yield GS 2027; 10 year G-Sec: 06.54 GS 2032
 DOMESTIC NEWS
• India S&P Global services PMI rose to 58.9 in May from 57.9 in April and composite PMI increased to 58.3 in May from 57.6 in April.
• India’s forex reserves rose by $3.85 bn to $601.36 bn in the week ended May 27.
• Government approved 8.1% interest rate on employee provident fund (EPF) deposits for fiscal 2022.
• SEBI issued a new framework for investor grievance redressal mechanism.
• SEBI allowed Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) to conduct annual meetings through
video-conferencing and other audio-visual means till the end of December.
• Prem Watsa plans to invest over $7 bn in India over the next five years.

Economic Indicators Key announcements in the month Release Date

YoY (%) Current Quarter Ago Year Ago Eurozone GDP, Q1 June 8
7.79% 6.01% 4.23% Japan GDP, Q1 June 8
Monthly Inflation (CPI)
(Apr-22) (Jan-22) (Apr-21) RBI Interest Rate Decision June 8
1.9% 0.7% 24.2%
IIP
(Mar-22) (Dec-21) (Mar-21)
4.1% 5.4% 2.5%
GDP
(Jan-Mar FY22) (Oct-Dec FY22) (Jan-Mar FY21)
15.08% 13.68% 10.74%
Monthly Inflation (WPI)
(Apr-22) (Jan-22) (Apr-21)

INTERNATIONAL NEWS
• US non-farm payrolls came in at 390,000 in May compared to revised 436,000 in April. The unemployment rate remained unchanged
at 3.6% in May.
• US S&P Global services PMI fell to 53.4 in May from 55.6 in April, while the composite PMI fell to 53.6 in May from 56 in April.
• Eurozone S&P Global services PMI fell to 56.1 in May from 57.7 in April; the composite PMI declined to 54.8 in May from 55.8 in April.
• Eurozone retail sales rose 3.9% on-year in April, from revised 1.6% rise in March.
• China Caixin services PMI rose to 41.4 IN May, from 36.2 in April, and the composite PMI increased to 42.2 in May from 27.2 in April.

Currencies Vs INR Week Month Year 3 Jun 1 Day 1 Mth 1 Year

3 Jun
Ago Ago Ago
3 Jun 2 Jun Change DJIA 32900 -1.05 -0.69 -4.85
US 10-yr yield (%) 2.96 2.74 2.96 1.63
USD 77.63 77.61 -0.02 Nasdaq 12013 -2.47 -4.39 -11.77
UK 10-yr yield (%) 2.17 1.93 1.96 0.83
GBP 97.52 97.35 -0.17 German 10-yr (%) 1.27 0.96 0.95 -0.18 FTSE Closed NA NA NA

Japan 10-yr (%) 0.23 0.22 0.22 0.08 Nikkei 27762 1.27 3.52 -4.46
Euro 83.43 82.96 -0.47
London Brent Crude Hang Seng Closed NA NA NA
100 Yen 59.75 59.70 -0.05 119.72 119.43 104.97 71.31
Oil ($/bbl)
Strait Times 3232 0.16 -3.72 2.12
Gold (Rs/10 gms) 51455 51204 51336 49002

Source: Domestic Indices - NSE, BSE, FII / MF (Equity) – SEBI, Domestic Derivative Statistics – NSE, Currency Movement - RBI, Reuters,
Domestic Economic Indicators - CRISIL Center for Economic Research, Domestic Fixed Income Numbers - CRISIL Fixed Income Database, RBI
Commodity Prices - Reuters, IBJA, International Indices – Respective websites, Market summaries, global bond yields, domestic and
international news – CRISIL Research, Financial websites
Abbreviations: FII (Foreign Institution Investors), CPI (Consumer Price Index), WPI (Wholesale Price Index), P/E (Price/Earnings ratio), CP
(Commercial Papers), CD (Certificate Of Deposits), G-sec (Government Securities), MTD – Month to Date, YTD – Year to Date

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