ICICI Prudential MF

HEAD START
August 3, 2022

INDIAN EQUITY SUMMARY

• Indian benchmark equity indices ended flat on Tuesday after losses in financial and IT stocks offset strength in FMCG and energy
shares.
• Further, concerns over a potential global recession and weak global economic data weighed on investor sentiment.

Nifty Equity Benchmark Indices (Returns %) Domestic Equity Benchmark Indices (Returns %)
Index 2 Aug 1 Day 1 Week 1 Month 1 Year Index 2 Aug 1 Day 1 Week 1 Month 1 Year
Mid Cap 30228 0.33 5.48 13.69 7.00 Sensex 58136 0.04 5.19 9.88 9.79
Small Cap 9403 0.71 5.16 10.91 -11.44 Nifty 50 17345 0.03 5.23 10.12 9.19
Auto 13024 0.54 6.09 11.20 27.89
Bank 38024 0.32 4.44 13.37 9.55 FII / Mutual Fund data
Energy 27039 1.09 6.98 12.09 40.61 (Rs Cr) 1 Aug MTD YTD
FMCG 42799 0.64 2.39 10.52 18.23 FIIs 5346.90 5346.90 -207187.79
Infra 4977 -0.05 4.26 9.61 10.60 Mutual Funds NA 6919.60* 145503.02*
IT 29025 -0.67 5.86 3.42 -5.77 *Data as of Jul 27
Metal 5563 -0.26 7.96 18.46 -3.77 Nifty P/E
Pharma 12780 0.11 3.55 4.24 -11.71 Latest P/E* FY23E FY24E
Realty 445 -1.69 2.75 13.69 6.52 20.86X 19.56X 16.89X
* Data as of Aug 2

INDIAN DEBT MARKET SUMMARY

• The interbank call money rate ended flat at 4.25% on Tuesday.
• Government bond prices ended higher on Tuesday tracking fall in US treasury yield and global crude oil prices.
• Fading expectation over aggressive rate hike by the RBI at its upcoming policy meet also elevated bond prices.
• The yield of the 10-year benchmark 6.54% 2032 bond ended lower at 7.20% on Tuesday compared to 7.24% on Monday.

Debt Watch Auctions/ Money market operations

2 Aug Week Ago Month Ago Year Ago Date Description Amount (Rs Cr)
Call Rate 4.25% 3.35% 3.70% 3.30% Aug 5 G-sec auction 33,000 (Notified)
Repo 4.90% 4.90% 4.90% 4.00% Aug 1 Total repo 86,748 (outstanding)
10 Yr Gilt^ 7.20% 7.37% 7.42% 6.20% Aug 1 Total reverse repo 2,59,272 (outstanding)

91-D T Bill^ 5.48% 5.44% 5.11% 3.40% Aug 1 Marginal Standing Facility 1079

182-D T Bill^ 5.83% 5.87% 5.71% 3.52% Aug 1 GOI Surplus Cash Balance with 0
RBI
364-D T Bill^ 6.15% 6.22% 6.17% 3.66%
1-mth CP rate 5.75% 5.76% 5.25% 3.60%
Yields (%) Gsec* AAA AA+ AA AA- A+
3-mth CP rate 5.95% 5.98% 5.45% 3.70%
6 month 5.83 5.94 7.09 8.06 9.05 10.06
6-mth CP rate 6.35% 6.40% 6.30% 4.10%
1 Year 6.27 6.50 7.65 8.62 9.61 10.62
1 yr CP rate 6.90% 6.85% 6.90% 4.55%
3 Year 6.82 7.01 8.16 9.13 10.12 11.13
1-mth CD rate 5.50% 5.35% 4.85% 3.33% 5 Year 6.94 7.27 9.00 9.97 10.96 11.97
3-mth CD rate 5.68% 5.72% 5.20% 3.41% 10 Year 7.20 7.69 9.42 10.39 11.38 12.39
6-mth CD rate 6.05% 6.14% 5.80% 3.65% G-sec and corporate bonds data as of Aug 2 * Weighted average
1 yr CD rate 6.55% 6.60% 6.60% 3.99% yields for G-sec data 6 month G-sec: 182 day T-Bill rate; 1 year G-Sec:
4.56% GS 2023; 3 year G-Sec: 7.59% GS 2026; 5 year G-Sec: 07.38
^Weighted Average Yield GS 2027; 10 year G-Sec: 06.54 GS 2032
 DOMESTIC NEWS
• India’s trade deficit widened to $31.02 bn in July from $26.18 bn deficit in June.
• Finance Minister Nirmala Sitharaman said the government has adopted a targeted approach to tackle retail inflation.
• Government raised the windfall tax on petroleum crude marginally to Rs 17750 per tonne from Rs 17000 per tonne, but reduced the
levy on diesel exports to Rs 5 per litre from Rs 11 per litre and removed the Rs 4 per litre levy on aviation turbine fuel exports, all the
changes effective from August 3.
• Government widened the ambit of e-invoicing for businesses by lowering the mandatory turnover threshold to Rs 10 cr from Rs 20 cr
under the Goods and Services Tax (GST) regime, effective October 1.
• SEBI rolled out Amnesty Scheme 2.0; intends to collect over Rs 700 cr through the new settlement scheme.
• IRDAI proposed a single limit for the expenses of general and health insurance firms.

Economic Indicators Key announcements in the month Release Date

YoY (%) Current Quarter Ago Year Ago Bank of England Rate Decision August 4
7.01% 6.95% 6.26% US Non-Farm Payrolls, July August 5
Monthly Inflation (CPI)
(Jun-22) (Mar-22) (Jun-21) RBI Interest Rate Decision August 5
19.64% 1.15% 27.61%
IIP
(May-22) (Feb-22) (May-21)
4.1% 5.4% 2.5%
GDP
(Jan-Mar FY22) (Oct-Dec FY22) (Jan-Mar FY21)
15.18% 14.63% 12.07%
Monthly Inflation (WPI)
(Jun-22) (Mar-22) (Jun-21)

INTERNATIONAL NEWS
• UK Nationwide house price index rose 11% on-year in July, compared to 10.7% rise in June.
• China Caixin services PMI rose to 55.5 in July from 54.5 in June, while the composite PMI fell to 54.0 in July from 55.3 in June.
• Japan Jibun Bank services PMI was revised lower to 50.3 in July from 54.0 in June and the composite PMI came in at 50.2 in July
from 53.0 in June.

Currencies Vs INR Week Month Year 2 Aug 1 Day 1 Mth 1 Year

2 Aug
Ago Ago Ago
2 Aug 1 Aug Change DJIA 32396 -1.23 4.18 -7.01
US 10-yr yield (%) 2.74 2.79 2.89 1.17
USD 78.61 79.02 0.41 Nasdaq 12349 -0.16 10.97 -15.89
UK 10-yr yield (%) 1.85 1.92 2.08 0.52
GBP 95.86 96.77 0.91 German 10-yr (%) 0.81 0.93 1.23 -0.48 FTSE 7409 -0.06 3.35 4.62
Japan 10-yr (%) 0.18 0.20 0.21 0.01 Nikkei 27595 -1.42 6.40 -0.67
Euro 80.43 80.90 0.47
London Brent Crude Hang Seng 19689 -2.36 -9.93 -24.95
100 Yen 59.96 59.85 -0.11 100.54 104.40 111.63 72.89
Oil ($/bbl)
Strait Times 3239 0.01 4.64 2.47
Gold (Rs/10 gms) 51549 50760 51791 48034

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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