Weekly Newsletter Date: May 31, 2024

Market Indicators

10-Year G-Sec Yield 10.00 Corporate bond yields

S&P BSE Sensex Nifty 50
79000 24000 7.60%

8.51
8.00

8.46

8.41
8.38

8.45
75000 22000 7.40%

7.71
7.65
Yields (%)

7.58

7.55

7.50
71000 6.00
20000 7.20%
67000 73961
18000 4.00
63000 7.00%
22531 16000

0.00
0.00

0.00

0.00

0.00
59000 2.00
6.80%
55000 14000

30-Apr-24
31-Jul-23

30-Nov-23

31-Dec-23
31-Aug-23
30-Sep-23

29-Feb-24

31-Mar-24
31-May-23
30-Jun-23

31-Jan-24

31-May-24
31-Oct-23
0.00
30-Apr-24
31-Jul-23

30-Nov-23
31-Dec-23
31-Aug-23
30-Sep-23

29-Feb-24
31-Mar-24
31-May-23
30-Jun-23

31-May-24
31-Jan-24
31-Oct-23

6 month 1 Year 3 Year 5 Year 10 Year

Maturity
AAA AA A

Domestic Indices Economic Indicators

Week Month Year
Indices 31-May-24 Key Macro Indicators Current Year ago
% Chg % Chg % Chg
73961 -1.92 -0.70 18.11 Repo Rate 6.50% 6.50%
S&P BSE Sensex
22531 -1.86 -0.33 21.56 Reverse Repo Rate 3.35% 3.35%
Nifty 50
33344 -1.73 0.61 33.06 CPI 4.83% (Apr-24) 4.70% (Apr-23)
S&P BSE 500
42853 -1.53 1.74 58.13 Core CPI 3.2% (Apr-24) 5.1% (Apr-23)
S&P BSE Midcap
47264 -1.53 -0.11 54.84 GDP Growth Rate 7.8% (Jan-Mar 24) 6.1% (Jan-Mar 23)
S&P BSE Smallcap
Sectoral Indices Debt Indicators
S&P BSE Auto 53026 -2.26 3.84 62.00 Instrument 31-May-24 Week ago Month ago Year ago
55772 -0.26 -0.40 11.50 Call Rate 6.24% 6.65% 6.70% 5.85%
S&P BSE Bankex
54915 -1.81 -0.51 34.41 91 D T-bill* 6.87% 6.88% 6.97% 6.77%
S&P BSE CD
70056 -0.26 11.16 88.22 3 M CP 7.70% 7.70% 7.60% 7.16%
S&P BSE CG
19529 -2.14 -0.42 6.99 3 M CD 7.13% 7.15% 7.20% 6.95%
S&P BSE FMCG
34890 -1.57 -1.46 47.33 1 Yr CP 7.95% 8.05% 7.95% 7.68%
S&P BSE Healthcare
33199 -3.82 -2.63 13.13 1 Yr CD 7.65% 7.60% 7.68% 7.37%
S&P BSE IT
32713 -2.25 4.68 67.39 1 Yr G-Sec* 7.01% 7.00% 7.04% 6.81%
S&P BSE Metal
28640 -3.12 -1.18 59.36 3 Yr G-Sec* 7.05% 7.01% 7.19% 6.88%
S&P BSE Oil & Gas
7699 -1.18 6.64 101.59 5 Yr G-Sec* 7.05% 7.04% 7.20% 6.95%
S&P BSE Power
7980 -0.75 4.40 108.18 10 Yr G-Sec* 6.99% 7.00% 7.20% 6.99%
S&P BSE Realty Index
G-Sec yields mentioned above are semi-annualised *Weighted Average Yield
Global Indices
Corporate Bonds Spreads
Week Month Year
Indices 31-May-24 Maturity AAA AA A
% Chg % Chg % Chg
DJIA* 38111 -2.45 0.78 15.34 31-May-24 0.64% 1.66% 4.79%
8231 -1.04 1.07 9.43 1 year
FTSE 100* Week ago 0.65% 1.67% 4.80%
CAC 40* 7979 -1.44 -0.08 10.66
31-May-24 0.53% 1.55% 4.68%
XetraDax* 18497 -1.05 3.15 16.27
3 year
Nikkei 225 38488 -0.41 0.21 24.61 Week ago 0.57% 1.59% 4.72%
Straits Times 3337 0.60 1.33 5.63 31-May-24 0.37% 1.97% 5.10%
Hang Seng 18080 -2.84 1.78 -0.85 5 year
Week ago 0.39% 1.99% 5.12%
Shanghai Comp 3087 -0.07 -0.58 -3.67
* Data as of May 30 To calculate Corp. Bond Yields, annualise the G-Sec yields and add spreads

Equity Fund Flows Indicator Gilt Yield Curve Shift*

80000 78000 7.20 3
60000 75000 2
40000 72000 7.10 2
20000 69000 1 1
Change in bps

7.00 1 1
Yield in %

0 66000
-20000 63000 0
6.90 0
-40000 60000
-60000 57000
6.80 -1
Feb-24

Mar-24
Jul-23

Oct-23
May-23

May-24
Jun-23

Dec-23

Jan-24
Nov-23
Aug-23

Sep-23

Apr-24

-1 -1
6.70 -2
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
FII Net Monthly Investment DII Net Monthly Investment
S&P BSE Sensex Change in bps 31-May Week ago Year ago

Latest month data till May 31, 2024 *Weighted Average Yield
Equity Market Update
● Indian equity snapped a two-week gain due to nervousness with regard to the outcome of the general elections and caution ahead of release of domestic
growth data. The S&P BSE Sensex and the Nifty 50 fell 1.92% and 1.86%, respectively.
● All sectors ended lower, with information technology, oil and gas, and auto falling the sharpest. S&P BSE IT, S&P BSE Oil & Gas and S&P BSE Auto fell
3.82%, 3.12% and 2.26%, respectively.

Debt Market Update

● Government bond prices ticked marginally higher in the week-ended May 31, 2024. The yield of the 10-year benchmark 7.10% 2034 paper closed lower
at 6.98% on May 31 compared with 7.00% on May 24.
● Bond prices rose on optimism that the central bank's record surplus transfer to the government will improve the fiscal position.
● However, further gains in bond prices were truncated by intermittent gains in the US Treasury yields and profit booking at higher level.

Corporate Update
● Adani Enterprises has approved raising up to Rs 16,600 crore through qualified institutional placement (QIP) and other modes.
● Adani Energy Solutions’s board approved a fundraise of up to Rs 12,500 crore through a QIP or any other permissible route.

Economic and Regulatory Update

● The Indian economy expanded 7.8% in the first quarter of 2024 compared with 8.4% growth in the previous quarter.
● India's infrastructure output rose 6.2% in April 2024 vs an upwardly revised 6.0% increase in March.
● The country’s fiscal deficit stood at Rs 16.54 lakh crore in fiscal 2024 as against a budgetary target of Rs 17.86 lakh crore. With this, the fiscal gap
reached 95.3% of the budgetary target.
● The RBI released final guidelines for setting up a self-regulatory organisation for the fintech sector as well.

Global Update
● The US economy expanded an annualized 1.3% in Q1 2024, below 1.6% growth in the first advance estimate, compared to 3.4% growth in the previous
quarter.
● US Personal Consumption Expenditures (PCE) Prices increased to 3.30% in the first quarter of 2024 from 1.80% in the fourth quarter of 2023 while Core
PCE Prices increased to 3.60% from 2%.
● Eurozone consumer inflation expectations rose to 12.5 in May 2024, compared to 11.6 in April.

Global Bond Yields Currencies vs. Rupee

Week Month Year Week Month Year
31-May-24 31-May-24
ago ago ago ago ago ago
US 10-Year (%)* 4.55 4.47 4.68 3.64 USD 83.46 83.09 83.44 82.73

UK 10-Year (%)* 4.38 4.30 4.41 4.18 GBP 106.21 105.61 104.67 102.27

German 10-Year (%)* 2.66 2.58 2.59 2.28 Euro 90.53 89.99 89.50 88.29

Japan10-Year (%) 1.05 1.00 0.89 0.43 100 Yen 53.07 52.93 53.21 59.25

* Data as of May 30
Commodity Prices
Key Week Ahead Announcement Week Month Year
31-May-24
ago ago ago
Indicators Release date
Brent crude ($/bbl)* 81.86 82.12 88.40 73.71
US S&P Global Manufacturing PMI, May Jun 3
NYMEX crude ($/bbl)* 77.91 77.72 82.63 69.46
US JOLTs Job Openings, April Jun 4
Gold (Rs/10 gm)# 72356 72028 71710 60390
US S&P Global Composite/Services PMI, May Jun 5
Silver (Rs/1 Kg)# 92449 89762 80050 70988
Eurozone ECB Interest Rate Decision Jun 6
# ibjarates.com spot prices * Data as of May 30

Source: CRISIL
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