Morning Brief – October 07, 2022

Global
• Retail sales in the Euro Area fell 0.3% m-o-m in
August, marking a third consecutive monthly decline,
as high inflation continued to weigh on consumers'
affordability.
• Factory orders in Germany fell by 2.4% m-o-m in
August, shifting from an upwardly revised 1.9%
growth in the prior month and worse than market
forecasts of a 0.7% decline.
• OPEC+ agreed to further tighten global crude supply
with a deal to slash production by about 2 million
barrels per day, the largest reduction since 2020.
Domestic
• The S&P Global India services PMI slumped to a six-
month low of 54.3 in September from 57.2 in
August, led by a substantial easing in demand amid
high inflation.
• The World Bank lowered its FY23 GDP growth
forecast for India to 6.5%, from an earlier estimate
of 7.5%, citing deteriorating international
environment.
• India's sugar exports jumped 57% to 109.8 lakh
tonnes during 2021-22 marketing year ending
September, making the country world’s 2nd largest
exporter of sugar, the food ministry said.

Global Indicators
05-10-2022 06-10-2022 % / bps change
Dow 30,274 29,927 -1.15
NASDAQ 11,149 11,073 -0.68
S & P 500 3,783 3,745 -1.02
Nikkei 225 27,121 27,311 0.70
FTSE 100 7,053 6,997 -0.78
US 10-yr (%) 3.76 3.82 7 bps
UK 10-yr (%) 4.03 4.17 14 bps
Germany 10-yr (%) 2.03 2.09 6 bps
Gold ($/t oz) 1,721 1,721 -0.56
Crude Oil-WTI ($/bbl) 87.76 88.45 1.43
Crude Oil-Brent ($/bbl) 93.37 94.42 1.71
$/€* 0.99 0.98 -1.02
¥/$* 144.69 145.14 0.38
$/£* 1.13 1.12 -1.29
*(-)Appreciation/(+)Depreciation; Source: WSJ

Equity and Currency Markets - Domestic

04-10-2022 06-10-2022 % change
Sensex 58,065 58,222 0.27
NIFTY 17,274 17,332 0.33
Rs/$* 81.52 81.89 0.45
Rs/€* 80.53 80.96 0.53
*(-)Appreciation/(+) Depreciation; Source: Mint

Money Market - Domestic

04-10-2022 06-10-2022
Avg. Call Rate (%) 5.75 5.73
Vol. Traded (Rs million) 1,07,568 1,13,319
Net banking system liquidity outstanding (Rs million)* (10,03,746) (7,42,146)
T-Bills 91 days (%) 6.05 6.06
182 days (%) NA 6.45
364 days (%) NA 6.68
G-sec 3 years (%) 7.22 7.29
5 years (%) 7.30 7.36
10 years (%) 7.42 7.49
*(+)Deficit/(-)Surplus (Net banking system liquidity outstanding = total repo+MSF+SLF – total reverse repo); Source: CEIC, CCIL

FPI and MFs Investment Flows - Domestic

Equity Debt
Total (Net)^
Net Net
Net FPI Flows (USD million)
Sep-22 (903) 328 (437)
Oct-22* 207 (267) (69)
04-Oct-22 156 (12) 143
06-Oct-22 238 (47) 189
MF Investments (Rs million)
Oct-22# (10,618) 4,849 (5,769)
*Latest data as of previous trading day; #Data till Oct 03, 2022; ^Total (Net) of equity, debt & hybrid; Source: CEIC

Bond Spreads over G-Sec (PP)*- Domestic G-Sec Yields (%) - Domestic
PSU, FIs
10 Year NBFCs Corporates 10
& Banks
AAA 0.20 0.50 0.55
8
AA+ 0.69 1.02 0.93
AA 0.98 1.31 1.30
6
%

AA- 1.46 1.77 1.74

A+ 2.21 3.52 2.99
4
A 2.46 3.77 3.24
A- 2.71 4.02 3.49 2
BBB+ 3.21 4.52 4.24 1 2 5 10 15 20 30
BBB 3.46 4.77 4.49 Years
BBB- 3.96 5.27 4.99 31-Mar-22 30-Jun-22 06-Oct-22
*As of October 04, 2022; Source: FIMMDA Source: CCIL

Contact
Akanksha Bhende Associate Economist akanksha.bhende@careedge.in +91 - 22 - 6754 3424

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