NEWS U CAN USE

October 13, 2023

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 The Week that was…
09th Oct to 13th Oct

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Indian Economy
• The consumer price index based inflation dropped to 5.02% in Sep 2023 compared to
6.83% in Aug 2023. The rate fell within the RBI’s upper tolerance level of 6% after
remaining above in the previous two months due to a significant slowdown in food
inflation. The consumer food price index eased to 6.56% in Sep from 9.94% in Aug.
• Industrial production in India (IIP) climbed to 10.3% YoY in Aug 2023, the highest since Jun
last year, as compared to 5.7% rise in Jul 2023. Production in the manufacturing industry
increased by 9.3%, in mining by 12.3% and in electricity by 15.3% in Aug 2023.
• India’s merchandise trade deficit narrowed to $19.37 in Sep 2023 from $27.98 in Sep 2022.
Exports decreased by 2.6% to $34.47 billion in Sep 2023 from $35.39 billion the previous
year, and its imports also fell by 15% to $53.84 billion from $63.37 billion during the same
period.
• According to the media reports, the International Monetary Fund increased India's growth
forecast for FY24 from 6.1% to 6.3% due to higher-than-anticipated consumption in the
Apr to Jun quarter. The forecast for FY25 remains unchanged at 6.3%. India is anticipated
to remain the major economy with the fastest growth rate.
• According to the Chairman of the Central Board of Direct Taxes (CBDT), central
government has received Rs. 600 crore in Tax deducted at Source (TDS) from online
gaming companies and Rs. 105 crore from cryptocurrencies in the current fiscal year.

3
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 Indian Equity Market
• Domestic equity markets rose for the
Domestic Equity Market Indices second consecutive week as key
Indices 13-Oct-23 1 Week Return YTD Return benchmark indices S&P BSE Sensex and
S&P BSE Sensex 66,282.74 0.44% 8.94% Nifty 50 gained 0.44% and 0.50%
Nifty 50 19,751.05 0.50% 9.09% respectively. The gains were broad-
S&P BSE Mid-Cap 32,305.62 0.71% 27.62%
based as the mid cap segment and the
S&P BSE Small-Cap 38,184.83 0.86% 32.01%
small cap segment also closed the week
Source: Refinitiv Values as on Oct 13, 2023
in green.
• Domestic equities initially remained
Ratios
S&P BSE
Nifty 50
S&P BSE S&P BSE under pressure as a military conflict in
Sensex Mid Cap Small Cap
the Middle East weighed on the market
P/E 24.25 22.33 25.71 30.09 sentiment. However, sentiments were
P/B 3.60 3.47 3.18 3.15
Dividend Yield 1.23 1.36 1.04 0.75
boosted after dovish comments from
Source: NSE, BSE Values as on Oct 13, 2023 U.S. Federal Reserve officials that the
NSE Advance/Decline Ratio U.S. Fed may not raise interest rates
Date Advances Declines Advance/Decline Ratio further. Upbeat domestic
09-Oct-23 527 1,910 0.28
macroeconomic data added to the
10-Oct-23 1,795 617 2.91 gains after India’s Industrial Output
11-Oct-23 1,599 807 1.98 rose to a 14-month high in Aug 2023
12-Oct-23 1,403 1,000 1.40 and India’s retail inflation eased to a
13-Oct-23 1,127 1,257 0.90 three-month low in Sep 2023.
Source: NSE

4
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 Indian Equity Market (contd.)
Sectoral Indices • On the BSE Sectoral front, S&P BSE IT fell the
Indices
Last Returns (in %) most by 1.33% followed by S&P BSE Teck
Closing 1-Wk 1-Mth which fell 0.86%.
S&P BSE Auto 37,271.32 2.86% 2.75%
S&P BSE Bankex 49,768.68 -0.17% -3.51%
• IT stocks remained under pressure due to
S&P BSE CD 46,202.73 -0.70% 0.28%
revenue guidance cuts for FY24 by key
S&P BSE CG 47,898.94 -0.64% 2.48% domestic IT companies.
S&P BSE FMCG 19,012.71 1.80% 0.76% • S&P BSE Realty rose the most by 4.13% which
S&P BSE HC 28,300.40 0.84% -0.47% can be attributed to festive cheer, recovery in
S&P BSE IT 32,207.95 -1.33% -2.41% demand, and encouraging second-quarter
S&P BSE Metal 23,197.69 2.40% 0.17%
business updates from numerous developers.
S&P BSE Oil & Gas 18,947.49 1.30% -1.27%
Source:BSE Values as on Oct 13, 2023

Indian Derivatives Market Review

• Nifty Oct 2023 Futures stood at 19,742.05, a discount of 9.00 points below the spot closing
of 19,751.05.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1,516.24 lakh crore as against Rs. 1,245.76 lakh crore for the week to Oct 06.
• The Put-Call ratio stood unchanged at 0.89 compared with the previous week’s close.
• The Nifty Put-Call ratio stood at 1.14 compared with the previous week’s close of 1.12.

5
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 Domestic Debt Market
• Bond yields rose initially following the
Debt Indicators Current 1-Wk 1-Mth 6-Mth RBI's announcement to conduct open
(%) Value Ago Ago Ago
market sale of bonds through auctions.
Call Rate 6.73 6.74 6.74 6.37 High U.S. treasury yields and rising crude
91 Day T-Bill
oil prices extended the losses.
6.90 6.88 6.85 6.73
05.74% 2026, (5 Yr GOI) 7.33 7.37 7.19 7.01 • However, losses were reversed and
prices increased as market participants
07.18% 2033, (10 Yr GOI) 7.32 7.34 7.17 7.21
went for value buying to take advantage
Source: Refinitiv Values as on Oct 13, 2023
of the recent rise in yields. Fall in
domestic retail inflation helped to
extend the gain further.
10 -Yr Benchmark Bond ( % )
7.40 • Yield on the 10-year benchmark paper
7.36 (7.18% GS 2033) fell by 2 bps to close at
Yield in %

7.32 7.32% from the previous week’s close of

7.34%.
7.28
7.24 • Data from Reserve Bank of India showed
9-Oct 10-Oct 11-Oct 12-Oct 13-Oct that India's foreign exchange reserves
Source: CCIL fell to $584.74 billion for the week ended
Oct 6, 2023 compared with $586.91
billion a week earlier.

6
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 Domestic Debt Market (Spread Analysis)
• Yields on gilt fell up to 15 bps across the maturities,
G-Sec Yield Corporate Yield Spread barring 19 year paper that rose by 1 bps, while 6 &
Maturity
(%) (%) bps 15 year papers were unchanged.
• Corporate bond yields fell up to 9 bps across the
1 Year 7.34 7.94 60 curve, barring 8 to 15 year papers that increased up
to 2 bps, while 7 year paper was unchanged.
3 Year 7.44 7.88 44
• Difference in spread between AAA corporate bond
5 Year 7.47 7.7 23 and gilt expanded up to 10 bps across the
segments, barring 2, 3 & 6 year papers that
10 Year 7.45 7.68 23 contracted up to 5 bps, while 4 year paper remain
steady.
Source: Refinitiv Values as on Oct 13, 2023

India Yield Curve Shift (%) (W-o-W)

Change in bps
8.00 3
Yield in %

7.50 -4
7.00 -11
6.50 -18
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
Source: Refinitiv Change in bps 13-Oct-23 06-Oct-23

7
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Regulatory Updates in India
• The GST Council of India has decided to lower the GST to 5% from 28% for molasses and to
5% from 18% for millet flour in powder form. The council also decided to exempt human
consumption alcohol from the indirect tax, but extra neutral alcohol used in industry will still
be subject to the GST.
• Government has approved royalty rates for three critical and strategic minerals, which are
lithium, niobium and rare earth elements (REEs). According to the Cabinet note, the royalty
rates are 3% of the lithium price on the London Metal Exchange, 3% of the average sale
price (ASP) for niobium obtained from both primary and secondary sources and 1% of the
ASP for REEs based on rare earth oxide.
• According to media reports, the G20 finance ministers and governors of central banks have
adopted a roadmap for the implementation of an extensive policy framework for crypto
assets. The roadmap, which is based on recommendations from the International Monetary
Fund and Financial Stability Board, emphasizes regulations rather than a ban to stop crypto
assets from destabilizing the economy.
• According to media reports, trade secretary clarified that India won't impose import
restrictions on laptops instead the government only wanted importers to be on close watch.
Aiming to "ensure trusted hardware and systems" enter India, the import licensing regime
was introduced on Aug 3 but was delayed by three months due to objection from industry
and criticism from Washington.

8
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Regulatory Updates in India (contd..)
• SEBI has introduced regulatory frameworks for Execution Only Platforms (EOP) for
facilitating transactions in direct plans of schemes of Mutual Funds through their
technology or digital platforms. Category 1 EOPs can become agent of AMCs and charge
transaction fee from them by obtaining license from AMFI and Category 2 EOPs can
become representative of investors and charge them directly by taking stock broking
license and have to maintain base minimum capital deposit of Rs. 10 lakh with stock
exchanges as deposit amount.

9
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Global News/Economy
• According to the Labor Department, U.S. consumer price index climbed by 0.4% in Sep
2023 after increasing by 0.6% in Aug 2023. Excluding food and energy prices, core
consumer prices rose by 0.3% in Sep 2023, matching the increase seen in Aug 2023.
• According to the Labor Department, U.S. initial jobless claims came in at 209,000 in the
week ended Oct 7th, 2023, unchanged compared to the previous week's revised level.
• The U.S. Fed released the minutes of its latest monetary policy meeting on 11th Oct 2023,
affirming that the majority of participants believe one more interest rate hike will probably
be appropriate.
• According to the Office for National Statistics, the U.K. Gross domestic product grew 0.2%
in Aug 2023 from Jul 2023, when the economy contracted by a revised 0.6%. On a yearly
basis, monthly GDP advanced 0.5%.
• According to Eurostat, eurozone industrial output grew by a more-than-expected 0.6% on
a monthly basis in Aug 2023, in contrast to the 1.3% decrease in the previous month.
• According to Destatis, Germany’s industrial output decreased 0.2% from Jul 2023, when it
dropped by revised 0.6%. The overall fall in Aug 2023 was driven by the 6.6% contraction in
energy production and the 2.4% decrease in construction output.
• According to the National Bureau of Statistics, China’s consumer price index, or CPI,
remained unchanged on a yearly basis after a 0.1% gain in Aug 2023. Core inflation
excluding food and energy held steady at 0.8% in Sep 2023.

10
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 Global Equity Markets
U.S.
Global Indices •
U.S. equity markets mostly rose as
Indices 13-Oct-23
1-Week YTD comments from U.S. Federal Reserve
Return Return officials eased concerns about further
Russell 3000 2,152.81 0.16% 25.40% interest rate hikes by the U.S. Fed.
Nasdaq 100 14,995.12 0.15% 37.07% Upbeat earning news for the third
FTSE 100 7,599.6 1.40% 1.98% quarter of 2023 from some big-name
DAX Index 15,186.66 -0.28% 9.07% companies in U.S. added to the gains.
Nikkei Average 32,315.99 4.26% 23.84% However, gains were capped after U.S.
Straits Times 3,185.79 0.36% -2.02% consumer prices rose more than
Source: Refinitiv Value as on Oct 13, 2023 expected in Sep 2023 and a slump in
Europe U.S. consumer sentiment for Oct 2023.
• European equity markets closed on a mixed note. Market sentiments were boosted after
comments from U.S. Federal Reserve officials indicated that interest rate hikes in U.S. may
be at an end. Data showing a growth in Britain’s gross domestic product also added to the
gains. However, rising geopolitical crisis in the Middle East weighed on the market
sentiment.
Asia
• Asian equity markets mostly rose amid reports that policymakers in China are considering
adopting fresh stimulus measures. However, ongoing geopolitical crisis in the Middle East
also weighed on the market sentiment.

11
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 Global Debt (U.S.)
US 10-Year Treasury Yield Movement • Yields on the 10-year U.S. Treasury fell
15 bps to close at 4.63% from the
4.72
previous week’s close of 4.78%.
4.70
4.68 • U.S. Treasury prices rose as safe-haven
4.66 inflows due to ongoing Middle East
Yield in %

4.64 conflict and dovish U.S. Federal Reserve

4.62 (Fed) comments earlier this week.
4.60
4.58 • However, gains were restricted after
4.56 U.S. consumer price data rose more
4.54 than market expected in Sep 2023,
10-Oct 11-Oct 12-Oct 13-Oct
which indicated that there is a chance
the U.S. Fed may increase rates again
Source: Refinitiv

this year.

12
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 Commodities Market
Global Commodity Movement Gold
11.00 Rebased to 10 • Gold prices rose as the intensifying conflict
Global Commodity Prices

10.50
5.91% in the Middle East boosted the safe-haven
10.00 5.14% appeal of the bullion.
5.43%
9.50
Brent Crude
9.00
8.50 • Brent crude oil prices rose on concerns that
8.00 the ongoing Israel-Hamas conflict could
13-Sep-23 23-Sep-23 3-Oct-23 13-Oct-23 affect regional oil production. However,
gains were capped after the International
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Energy Agency assuaged market concerns
Source: Refinitiv
by saying that it stands ready to act to
Performance of various commodities ensure markets remain “adequately
Commodities Last Closing* 1-Week Ago supplied” in the event of an abrupt supply
Brent Crude($/Barrel) 95.59 90.26 shortage.
Gold ($/Oz) 1,931.70 1,832.26
Baltic Dry Index
Gold (Rs/10 gm) 58,092 56,327
Silver ($/Oz) 22.70 21.59 • The index rose over the week due to
Silver (Rs/Kg) 69,431 66,907
improved capesize and panamax activities.
Source: Refinitiv *Value as on Oct 13, 2023

13
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 Currencies Markets
Rupee
Currency Movement
• The Indian rupee in the spot trade remained
10.10 Rebased to 10 0.02% almost steady against the U.S. dollar on
Currency Prices ( in terms of

10.00 concerns over high crude oil prices, economic

9.90 -0.50% and geopolitical tension.
0.09%
Euro
INR)

9.80 0.22%
9.70 • Euro fell against the U.S. dollar after U.S.
9.60 consumer prices rose more than expected in
9.50
Sep 2023, which increased the possibility that
13-Sep-23 23-Sep-23 3-Oct-23 13-Oct-23 the U.S. Fed would maintain high interest rates
USD GBP Euro JPY for a while.
Source: Refinitiv

Pound
Movement of Rupee vs Other Currencies
• Pound declined against the strong U.S. dollar
Currency Last Closing* 1-Wk Ago after U.S. consumer prices increased more than
US Dollar 83.26 83.24 anticipated in Sep 2023.
Pound Sterling 101.52 101.29 Yen
EURO 87.76 87.68 • Yen fell marginally against the U.S. dollar on
concerns over the possibility of another U.S.
100 Yen 55.60 55.88
Fed interest rate increase.
Source: Refinitiv Figures in INR , *Value as on Oct 13, 2023

14
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 The Week that was…
09th Oct to 13th Oct

15

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was (Oct 09 – Oct 13)
Date Events Present Value Previous Value

• Germany Industrial Production (YoY) (Aug) -2% -1.70%

Monday,
October 09, 2023 • Eurozone Sentix Investor Confidence(Oct) -21.9 -21.5

• Japan Current Account (Aug) ¥2279.7B ¥2771.7B

Tuesday,
October 10, 2023
• U.S. Wholesale Inventories (MoM) (Aug) -0.10% -0.30%

• Germany Harmonized Index of Consumer Prices (YoY) (Sep) 4.30% 4.30%

Wednesday, • U.S. Producer Price Index ex Food & Energy (YoY) (Sep) 2.70% 2.50%
October 11, 2023
• Japan Machinery Orders (YoY) (Aug) -7.70% -13%

• India Industrial Production (YoY) (Aug) 10.30% 5.70%

• India Inflation Rate (YoY) (Sep) 5.02% 6.83%

Thursday,
• U.K. Gross Domestic Product (MoM) (Aug) 0.20% -0.60%
October 12, 2023
• U.S. Consumer Price Index (MoM) (Sep) 0.40% 0.60%

• U.K. Manufacturing Production (MoM) (Aug) -0.80% -1.20%

• China Consumer Price Index (MoM) (Sep) 0.20% 0.30%

Friday, • China Exports (YoY) (Sep) -6.20% -8.80%

October 13, 2023 • Eurozone Industrial Production (MoM) (Aug) 0.60% -1.10%

• U.S. Michigan Consumer Sentiment Index(Oct) PREL 63 68.1

16
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 The Week Ahead
16th Oct to 20th Oct

17

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week Ahead
Day Event

Monday, • India WPI Inflation (YoY) (Sep)

• Germany Wholesale Price Index (YoY) (Sep)
Oct 16, 2023 • Japan Industrial Production (YoY) (Aug)

Tuesday, • U.K. Claimant Count Change (Sep)

• U.S. Retail Sales (MoM)(Sep)
Oct 17, 2023 • U.K. Employment Change (Aug)
• China Gross Domestic Product (QoQ) (Q3)
Wednesday, • China Industrial Production (YoY) (Sep)
• U.K. Consumer Price Index (YoY) (Sep)
Oct 18, 2023 • Eurozone Core Harmonized Index of Consumer Prices (YoY) (Sep)
• Japan Exports (YoY) (Sep)
• U.S. Initial Jobless Claims (Oct 13)
Thursday, • U.K. GfK Consumer Confidence (Oct)
Oct 19, 2023 • Japan National Consumer Price Index (YoY) (Sep)
• U.S. Existing Home Sales Change (MoM) (Sep)

Friday, • People’s Bank of China Interest Rate Decision

• U.K. Retail Sales (MoM) (Sep)
Oct 20, 2023 • Germany Producer Price Index (MoM) (Sep)

18
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Disclaimer
The information herein is meant only for general reading purposes and contains all factual and statistical information pertaining to Industry and
markets which have been obtained from independent third party sources and which are deemed to be reliable. The information provided cannot be
considered as guidelines, recommendations or as a professional guide for the readers. It may be noted that since Nippon Life India Asset
Management Limited (NAM India) has not independently verified the accuracy or authenticity of such information or data, or for that matter the
reasonableness of the assumptions upon which such data and information has been processed or arrive data; NAM India does not in any manner
assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect NAM
India’s views or opinions, which in turn may have been formed on the basis of such data or information. The Sponsor(s), the Investment Manager, the
Trustee or any of their respective directors, employees, associates or representatives do not assume any responsibility for, or warrant the accuracy,
completeness, adequacy and reliability of such data or information. Whilst no action has been solicited based upon the information provided herein,
due care has been taken to ensure that the facts are accurate and opinions given are fair and reasonable, to the extent possible. This information is
not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Recipients of this information should rely
on information/data arising out of their own investigations. Before making any investments, the readers are advised to seek independent
professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor(s), the Investment Manager, the
Trustee, their respective directors, employees, associates or representatives shall be liable in any way for any direct, indirect, special, incidental,
consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.

All information contained in this document has been obtained by ICRA Analytics Limited from sources believed by it to be accurate and reliable.
Although reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of
any kind, and ICRA Analytics Limited or its affiliates or group companies and its respective directors, officers, or employees in particular, makes no
representation or warranty, express or implied, as to the accuracy, suitability, reliability, timelines or completeness of any such information. All
information contained herein must be construed solely as statements of opinion, and ICRA Analytics Limited, or its affiliates or group companies and
its respective directors, officers, or employees shall not be liable for any losses or injury, liability or damage of any kind incurred from and arising out
of any use of this document or its contents in any manner, whatsoever. Opinions expressed in this document are not the opinions of our holding
company, ICRA Limited (ICRA), and should not be construed as any indication of credit rating or grading of ICRA for any instruments that have been
issued or are to be issued by any entity.

19
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
 Thank you for
your time.
Thank you for
your time.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.