Weekly Newsletter Date: June 14, 2024

Market Indicators

S&P BSE Sensex Nifty 50 10-Year G-Sec Yield 10.00 Corporate bond yields
79000 26000 7.60%
8.00

8.43

8.47

8.41
8.40

8.48
75000 24000 7.40%

7.68
Yields (%)

7.63
7.60

7.56

7.50
71000 22000 6.00
7.20%
67000 20000
76993 4.00
63000 18000 7.00%

0.00
0.00

0.00

0.00

0.00
59000 23466 16000 2.00
6.80%
55000 14000

14-Nov-23

14-Apr-24
14-Jul-23

14-Dec-23
14-Aug-23

14-Sep-23
14-Jun-23

14-Feb-24
14-Mar-24
14-Oct-23

14-Jan-24

14-May-24

14-Jun-24
0.00
14-Jul-23

14-Apr-24
14-Nov-23
14-Dec-23
14-Aug-23
14-Sep-23

14-Mar-24

14-May-24
14-Jan-24
14-Feb-24
14-Oct-23
14-Jun-23

14-Jun-24

6 month 1 Year 3 Year 5 Year 10 Year

Maturity
AAA AA A

Domestic Indices Economic Indicators

Week Month Year
Indices 14-Jun-24 Key Macro Indicators Current Year ago
% Chg % Chg % Chg
76993 0.39 5.32 21.77 Repo Rate 6.50% 6.50%
S&P BSE Sensex
23466 0.75 5.62 25.11 Reverse Repo Rate 3.35% 3.35%
Nifty 50
35099 2.02 7.42 37.38 CPI 4.75% (May-24) 4.31% (May-23)
S&P BSE 500
46059 4.41 10.60 64.22 Core CPI 3.2% (Apr-24) 5.1% (Apr-23)
S&P BSE Midcap
51200 5.07 11.06 59.94 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 58338 3.03 12.09 72.10 Instrument 14-Jun-24 Week ago Month ago Year ago
56865 0.17 4.22 14.15 Call Rate 6.75% 6.00% 5.50% 6.20%
S&P BSE Bankex
59490 4.09 13.43 40.27 91 D T-bill* 6.84% 6.85% 7.01% 6.77%
S&P BSE CD
73256 6.40 16.08 85.47 3 M CP 7.77% 7.80% 7.90% 7.15%
S&P BSE CG
20715 -0.81 4.62 11.82 3 M CD 7.10% 7.08% 7.30% 6.90%
S&P BSE FMCG
37305 2.76 6.38 52.17 1 Yr CP 7.95% 8.00% 8.05% 7.65%
S&P BSE Healthcare
35506 -1.12 4.81 21.70 1 Yr CD 7.65% 7.65% 7.65% 7.36%
S&P BSE IT
33596 0.95 6.31 63.21 1 Yr G-Sec* 7.00% 7.04% 7.06% 6.82%
S&P BSE Metal
29611 3.48 5.34 61.44 3 Yr G-Sec* 6.99% 7.02% 7.11% 6.94%
S&P BSE Oil & Gas
7901 3.08 7.57 97.84 5 Yr G-Sec* 7.00% 7.02% 7.12% 6.96%
S&P BSE Power
8821 5.47 17.72 111.03 10 Yr G-Sec* 6.98% 7.02% 7.06% 7.01%
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 14-Jun-24 Maturity AAA AA A
% Chg % Chg % Chg
DJIA* 38647 -0.39 -1.99 12.96 14-Jun-24 0.71% 1.73% 4.85%
8164 -0.99 -2.99 7.49 1 year
FTSE 100* Week ago 0.70% 1.72% 4.85%
CAC 40* 7708 -3.67 -6.11 5.72
14-Jun-24 0.52% 1.54% 4.67%
XetraDax* 18266 -1.57 -2.54 12.54
3 year
Nikkei 225 38815 0.34 1.20 15.86 Week ago 0.59% 1.61% 4.74%
Straits Times 3298 -1.00 -0.48 2.47 14-Jun-24 0.43% 2.04% 5.16%
Hang Seng 17942 -2.31 -5.93 -7.56 5 year
Week ago 0.47% 2.08% 5.20%
Shanghai Comp 3033 -0.61 -3.60 -6.08
* Data as of Jun 13 To calculate Corp. Bond Yields, annualise the G-Sec yields and add spreads

Equity Fund Flows Indicator Gilt Yield Curve Shift*

80000 79000 7.30 0
60000 76000
7.20
40000 73000 -1
20000 70000 7.10 -2
Change in bps

-2 -2
Yield in %

0 67000
7.00
-20000 64000 -3
-40000 61000 6.90 -4
-60000 58000 -4 -4 -4
6.80
Jul-23

Feb-24

Mar-24

May-24
Jun-23

Jan-24

Jun-24
Oct-23

Apr-24
Nov-23

Dec-23
Aug-23

Sep-23

6.70 -6
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 14-Jun Week ago Year ago

Latest month data till Jun 14, 2024 *Weighted Average Yield
Equity Market Update
● Indian equity ended higher for the second consecutive week owing to expectations of policy continuity by the newly formed government. The BSE Sensex
and Nifty 50 rose 0.39% and 0.75%, respectively.
● More gains were seen owing to ease in inflation both domestically and in the US.

Debt Market Update

● Government bond prices rose in the week. The yield of the 10-year benchmark 7.10% 2034 paper closed lower at 6.98% on June 14 compared with
7.02% on June 7.
● Bond prices rose on reports that the government is likely to stick to its fiscal deficit target in the forthcoming Union Budget.
● The domestic bond prices also rose in tandem with the US treasury prices, which rose after an ease in inflation there boosted bets of rate cut.
● However, further gains in the prices were halted after debt auction result released by the RBI added the supply.

Corporate Update
● Bajaj Housing Finance Ltd (BHFL) filed draft prospectus with the SEBI to launch a Rs 7,000 cr initial public offering (IPO).
● Blackstone divested a 15.08% stake in Mphasis for Rs 6,735 cr through an open market transaction.

Economic and Regulatory Update

● India's retail inflation eased to 4.75% on an annual basis in May as against a 11-month low of 4.83% in April.
● The Index of Industrial Production increased 5.0% on year in April compared with 4.9% in March.
● India’s WPI-based inflation increased 2.61% in May compared with 1.26% in April.

Global Update
● The Federal Reserve left the fed funds target range steady at 5.25%-5.50% for a seventh consecutive meeting in June 2024.
● US inflation slowed to 3.3% on year in May, the lowest in three months, compared to 3.4% in April while core inflation eased to an over three-year low
of 3.4% from 3.6%.
● The Japanese economy contracted 1.8% on an annualized basis in Q1 of 2024, compared with a preliminary reading of a 2.0% fall and after an upwardly
revised 0.4% growth in Q4 2023.
● The Bank of Japan kept its key short-term interest rate unchanged at 0.1% at its June meeting.

Global Bond Yields Currencies vs. Rupee

Week Month Year Week Month Year
14-Jun-24 14-Jun-24
ago ago ago ago ago ago
US 10-Year (%)* 4.25 4.44 4.44 3.80 USD 83.56 83.38 83.51 82.10

UK 10-Year (%)* 4.17 4.26 4.20 4.39 GBP 106.18 106.69 104.75 103.84

German 10-Year (%)* 2.49 2.62 2.54 2.44 Euro 89.30 90.82 90.12 88.73

Japan10-Year (%) 0.92 0.97 0.95 0.43 100 Yen 53.19 53.61 53.42 58.68

* Data as of Jun 13

Key Week Ahead Announcement Commodity Prices

Week Month Year
Indicators Release date 14-Jun-24
ago ago ago
Eurozone CPI, May Jun 18
Brent crude ($/bbl)* 82.75 80.02 83.36 74.29
UK Inflation Rate, May Jun 19
NYMEX crude ($/bbl)* 78.62 75.53 79.12 69.42
China Loan Prime Rate 1Y/5Y, June Jun 20
Gold (Rs/10 gm)# 71866 71913 72335 59264
Japan Inflation, May Jun 21
Silver (Rs/1 Kg)# 87833 90535 84080 72105
# ibjarates.com spot prices * Data as of Jun 13

Source: CRISIL
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