2023-11-03_news-u-can-use-nov-03-2023

NEWS U CAN USE
November 03, 2023
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The Week that was…
30th Oct to 03rd Nov
Indian Economy
• Government data showed that India’s fiscal deficit for the period from Apr to Sep of FY24
stood at Rs. 7.02 lakh crore or 39.3% of budget estimates of the current fiscal. India’s fiscal
deficit stood at 37.3% of the budget estimate in the corresponding period of the previous
fiscal year. Total expenditure stood at Rs. 21.19 lakh crore or 47.1% of the budget
estimate as compared to 46.2% of the budget estimate in the corresponding period of the
previous fiscal year.
• According to the government data, the combined Index of Eight Core Industries increased
by 8.1% in Sep 2023 as compared to 8.3% in Sep 2022. The production of all Eight Core
Industries recorded positive growth except crude oil which contracted by 0.4% in Sep
2023 over the corresponding month of last year. Coal witnessed the maximum growth at
16.1% in Sep 2023 followed by steel with 9.6% growth.
• The Manufacturing Purchasing Managers' Index growth slowed for the second consecutive
month in Oct 2023 to 55.5, compared to 57.5 in Sep 2023. There was a slower increase in
total new orders, production, exports, buying levels and stocks of purchases. Cost
pressures increased concurrently with a decrease in output price inflation.
• According to the data published by the Ministry of Finance, the Goods and Services Tax
collections in Oct 2023 jumped 13% YoY to touch its second-highest-ever collection of Rs.
1.72 trillion, compared to Rs. 1.63 trillion in Sep 2023.
3
Indian Equity Market
Domestic Equity Market Indices • Domestic equity markets rose after
Indices 03-Nov-23 1 Week Return YTD Return witnessing losses for two consecutive
S&P BSE Sensex 64,363.78 0.91% 5.79%
weeks as key benchmark indices S&P
BSE Sensex and Nifty 50 gained around
Nifty 50 19,230.6 0.96% 6.22%
1%. The mid-cap segment and the
S&P BSE Mid-Cap 31,735.86 2.00% 25.37%
small-cap segment also closed the
S&P BSE Small-Cap 37,589.06 1.90% 29.95%
week in green.
Source: Refinitiv Values as on Nov 03, 2023
• Domestic equities rose during the week

S&P BSE S&P BSE S&P BSE on a positive note following upbeat
Ratios Nifty 50
Sensex Mid Cap Small Cap earning numbers from some index
P/E 22.45 20.88 24.34 28.61 heavyweight companies for the quarter
P/B 3.32 3.37 3.04 2.98 ended Sep 2023. Sentiments were
Dividend Yield 1.26 1.43 1.07 0.76
Source: NSE, BSE Values as on Nov 03, 2023
boosted after the U.S. Federal Reserve
NSE Advance/Decline Ratio
kept interest rates on hold for the third
consecutive time which led to hopes
Date Advances Declines Advance/Decline Ratio
that the U.S. Federal Reserve was done
30-Oct-23 1283 1143 1.12
with rate hikes.
31-Oct-23 1229 1169 1.05
01-Nov-23 938 1478 0.63
02-Nov-23 1670 753 2.22
03-Nov-23 1572 850 1.85
Source: NSE
4
Indian Equity Market (contd.)
Sectoral Indices • On the BSE sectoral front, all the sectoral
Indices
Last Returns (in %) indices closed in green barring S&P BSE Auto
Closing 1-Wk 1-Mth which fell 0.71%. S&P BSE Realty rose the most
S&P BSE Auto 36,457.4 -0.71% 0.76% by 10.44% after some prominent domestic real
S&P BSE Bankex 48,960.4 1.27% -2.09%
estate companies reported upbeat earning
S&P BSE CD 45,327.2 2.90% -0.88%
numbers for the quarter ended Sep 2023.
S&P BSE CG 46,225.7 1.00% -4.11%
S&P BSE FMCG 18,749.6 1.02% 0.88% • IT stocks also gained on hopes that the global
S&P BSE HC 27,759.6 1.76% -2.35% monetary policy tightening may soon come to
S&P BSE IT 31,321.7 0.82% -2.12% an end. Upbeat corporate earning numbers
S&P BSE Metal 22,361. 0.26% -2.89% from some prominent FMCG companies aided
S&P BSE Oil & Gas 18,712.1 3.64% -0.35% the FMCG sector.
Source:BSE Values as on Nov 03, 2023
Indian Derivatives Market Review

• Nifty Nov 2023 Futures stood at 19,303.60, a premium of 73.00 points above the spot
closing of 19,230.60.
• The total turnover on NSE’s Futures and Options segment for the week stood at Rs.
1,615.93 lakh crore as against Rs. 1,370.88 lakh crore for the week to Oct 27.
• The Put-Call ratio stood at 0.92 compared with the previous week’s close of 0.86.
• The Nifty Put-Call ratio stood at 0.96 compared with the previous week’s close of 0.87.
5
Domestic Debt Market
• Bond yields eased following the sharp
Debt Indicators Current 1-Wk 1-Mth 6-Mth drop in U.S. treasury yields. Sentiments
(%) Value Ago Ago Ago
were boosted following the decisions of
Call Rate 6.75 6.76 6.77 6.67 major central banks around the globe
91 Day T-Bill 6.95 6.95 6.83 6.88
namely U.S. Federal Reserve, European
Central Bank & Bank of England which
05.74% 2026, (5 Yr GOI) 7.29 7.35 7.29 6.91
maintained a status quo on interest
07.18% 2033, (10 Yr GOI) 7.31 7.36 7.23 7.01 rates. Gains were extended in
Source: Refinitiv Values as on Nov 03, 2023 anticipation that interest rates has
peaked following the U.S. Federal
Reserve's post-monetary policy remarks.
7.38
10 -Yr Benchmark Bond ( % ) • Yield on the 10-year benchmark paper
7.36 (7.18% GS 2033) fell by 5 bps to close at
Yield in %
7.34 7.31% from the previous week’s close of

7.32 7.36%.
7.30
• Data from Reserve Bank of India showed
7.28
30-Oct 31-Oct 1-Nov 2-Nov 3-Nov
that India's foreign exchange reserves
Source: CCIL
rose to $586.11 billion for the week
ended Oct 27, 2023 compared with
$583.53 billion a week earlier.
6
Domestic Debt Market (Spread Analysis)
• Yields on gilt eased up to 19 bps across the
G-Sec Yield Corporate Yield Spread maturities.
Maturity
(%) (%) bps
• Corporate bond yields increased up to 13 bps across
the curve, barring 1 to 4 year papers that fell
1 Year 7.27 8.00 73
between 2 to 8 bps.
3 Year 7.42 7.86 44 • Difference in spread between AAA corporate bond
and gilt expanded between 2 to 17 bps across the
5 Year 7.47 7.74 27 segments, barring 2 & 3 year papers that contracted
by 5 & 4 bps respectively.
10 Year 7.45 7.77 32
Source: Refinitiv Values as on Nov 03, 2023
India Yield Curve Shift (%) (W-o-W)
Change in bps
7.60 0
7.40
Yield in %
-5
7.20
-10
7.00
6.80 -15
6.60 -20
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
Source: Refinitiv Change in bps 03-Nov-23 27-Oct-23
7
Regulatory Updates in India
• The IRDAI has revised its customer information sheet (CIS), which serves as a reference for
policyholders regarding the features and coverage of their policies, inclusions, exclusions,
portability and grievance redressal procedures. According to the revised norm agents need
to get a physical or digital signature acknowledgment from their clients on the CIS
document before issuing a health policy. This will take effect on Jan 1, 2024.
• The windfall tax on petroleum crude was raised by the Indian government from Rs. 9,050
per ton to Rs. 9,800. Windfall tax on aviation turbine fuel has been eliminated. Additionally,
the government has lowered the windfall tax on diesel from Rs. 4 per litre to Rs. 2 rupees
per litre.
• The government has made the disclosure rules tougher for limited liability partnerships
(LLPs). LLPs will now have to keep an updated list of partners that includes information
about their contributions, both tangible and intangible, and their beneficial interests.
• Central Board of Indirect Taxes and Customs has announced that tenants of real estate
developers, mall owners and airport operators will be subject to an 18% Goods and Services
Tax. However, supply of electricity by Resident Welfare Associations at rates charged by
state electricity boards or power distribution companies will be exempted.
8
Regulatory Updates in India (contd..)
• The finance ministry announced an amnesty program for appealing GST demand orders.
According to the scheme, entities that were unable to file their appeals against orders
issued by the tax officer on or before Mar 31, 2023, will be able to take advantage of the
scheme, which will remain open until Jan 31, 2024. The scheme facilitates taxpayers who
missed the appeal deadline for a variety of reasons by requiring entities to pre-deposit
12.5% of the tax demand, up from 10%.
• According to deputy governor of the RBI, the RBI is moving toward a principle-based
regulatory approach, providing broad guidelines to the entities it regulates while
permitting flexibility in how they achieve compliance. Banks have been progressively
granted more operational freedom by the RBI as a matter of policy to carry out their
business operations within the general regulatory framework.
9
Global News/Economy
• According to the Labor Department, U.S. employment climbed by 150,000 jobs in Oct 2023
after jumping by a downwardly revised 297,000 jobs in Sep 2023. The Labor Department
also said the unemployment rate crept up to 3.9% in Oct 2023 from 3.8% in Sep 2023.
• The U.S. Federal Reserve decided to leave interest rates unchanged. The Fed said it
decided to maintain the target range for the federal funds rate at 5.25 to 5.50% in an
effort to support its dual goals of maximum employment and inflation at a rate of 2% over
the longer run.
• According to Eurostat, eurozone’s unemployment rate edged up to 6.5% in Sep 2023 from
6.4% in Aug 2023. Data showed that nearly 11.017 million people were unemployed in Sep
2023. Unemployment increased by 69,000 from Aug 2023 but decreased 212,000 from last
year.
• The Bank of England left its benchmark interest rate unchanged at 5.25% for the second
consecutive meeting and kept the door open for further increases. The Monetary Policy
Committee, voted by a majority of 6-3 to maintain the bank rate at 5.25%.
• According to a survey, China’s manufacturing Purchasing Managers' Index dropped to 49.5
in Oct 2023 from 50.6 in the previous month. The sector contracted for the first time since
July.
• The Bank of Japan left its short-term lending rate unchanged and made its yield curve
control policy more flexible. The BoJ board decided to retain a negative interest rate of
0.1% on current accounts that financial institutions maintain at the central bank.
10
Global Equity Markets
U.S.
Global Indices • U.S. equity markets rose after the U.S.
Indices 03-Nov-23
1-Week YTD Fed kept interest rates on hold in its
Return Return monetary policy review which led to
Russell 3000 2,163.87 6.26% 26.04% optimism among market participants
Nasdaq 100 15,099.49 6.48% 38.02% that the recent cycle of interest rate
FTSE 100 7,417.73 1.73% -0.46% hikes is over. Market sentiments were
DAX Index 15,189.25 3.42% 9.09% further boosted following a slew of
Nikkei Average* 31,949.89 3.09% 22.44% downbeat U.S. economic data. Bad data
Straits Times 3,143.66 2.67% -3.31% was good news for the markets as it led
Source: Refinitiv Value as on Nov 03, 2023; *Value as on Nov 02, 2023 to hopes that the U.S. Fed might not
Europe raise interest rates further.
• European equity markets rose due to rising optimism about the outlook for interest rates.
Market participants remained hopeful that global monetary policy tightening may soon
come to an end after the U.S. Fed kept interest rates on hold in its monetary policy review.
Also Bank of England kept interest rates on hold and indicated that monetary policy might
remain restricted for an extended period.
Asia
• Asian equity markets rose after the U.S. Fed kept interest rates on hold in its monetary
policy review. Japanese equity markets also went up after Bank of Japan in its monetary
policy review refrained from incorporating major changes to stimulus settings.
11
Global Debt (U.S.)
US 10-Year Treasury Yield Movement • Yields on the 10-year U.S. Treasury fell
29 bps to close at 4.56% from the
5.00
previous week’s close of 4.85%.
4.90
• U.S. Treasury prices rose after data
4.80 revealed that the largest economy in
Yield in %
4.70 the world added fewer jobs (Nonfarm

payrolls) than expected in Oct 2023.
4.60
• Further, prices rose after a recent
4.50
monetary policy meeting where the U.S.
4.40 Fed kept the interest rate unchanged
30-Oct 31-Oct 1-Nov 2-Nov 3-Nov
and on hopes that the U.S. central bank
is done with rate hikes.
Source: Refinitiv
• Gains increased as smaller-than-

expected increases in longer-dated
Treasury supply led to renewed
confidence of the investors.
12
Commodities Market
Rebased to 10 Global Commodity Movement Gold
11.50 • Gold prices fell as easing worries over the
0.26%
Global Commodity Prices
11.00
-0.67% ongoing unrest in the Middle East
10.50
dampened the safe-haven appeal of the
10.00
-1.11%
bullion. However, further losses were
9.50
restricted after the U.S. central bank kept
9.00
8.50
interest rates on hold in its monetary policy
8.00 review.
3-Oct-23 13-Oct-23 23-Oct-23 2-Nov-23
03-Nov-23
Brent Crude
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
• Brent crude oil prices fell as supply
Source: Refinitiv
concerns driven by Middle East tensions
Performance of various commodities eased. Losses were extended after China’s
Commodities Last Closing* 1-Week Ago manufacturing activity unexpectedly
Brent Crude($/Barrel) 90.39 91.40 contracted in Oct 2023.
Gold ($/Oz) 1,992.27 2,005.78
Baltic Dry Index
Gold (Rs/10 gm) 60,843 60,629
Silver ($/Oz) 23.20 23.14 • The index fell over the week due to
Silver (Rs/Kg) 70,556 70,870
sluggish capesize and panamax activities.
Source: Refinitiv *Value as on Nov 03, 2023
13
Currencies Markets
Rupee
Currency Movement
• The Indian rupee in the spot trade fell against
Currency Prices ( in terms of INR)
10.30 Rebased to 10 the U.S. dollar due to a rise in U.S. Treasury

0.72%
10.20 yields and weakness in Asian currencies.
0.71%
10.10 Euro
0.02%
10.00
-0.04%
• Euro rose against the U.S. dollar after data
9.90 revealed that the U.S. added fewer jobs
9.80 (nonfarm payroll) than expected last month and
9.70
confirmed expectations that the U.S. Fed will
3-Oct-23 13-Oct-23 23-Oct-23 2-Nov-23
03-Nov-23 likely keep interest rates unchanged at its Dec
USD GBP Euro JPY 2023 meeting.
Source: Refinitiv
Pound
Movement of Rupee vs Other Currencies
• Pound rose against the U.S. dollar following
Currency Last Closing* 1-Wk Ago data showing that last month's job growth in
US Dollar 83.27 83.25 the U.S. was less than anticipated.
Pound Sterling 101.63 100.91 Yen
EURO 88.53 87.90 • Yen rose against the U.S. dollar as gains after
U.S. nonfarm payroll data rose less than
100 Yen 55.40 55.42
anticipated.
Source: Refinitiv Figures in INR , *Value as on Nov 03, 2023
14
The Week that was…
30th Oct to 03rd Nov
15
The Week that was (Oct 30 – Nov 03)
Present Previous
Date Events
Value Value
• Germany Gross Domestic Product (QoQ)(Q3) PREL -0.10% 0%
Monday, • Eurozone Consumer Confidence(Oct) -17.9 -17.9
October 30, 2023 • Japan Unemployment Rate(Sep) 2.60% 2.70%
• Germany Harmonized Index of Consumer Prices (YoY)(Oct) PREL 3% 4.30%
• India Infrastructure Output (YoY) (Sep) 8.10% 12.50%
• China NBS Manufacturing PMI(Oct) 49.5 50.2
Tuesday,
• Bank ofJapan Interest Rate Decision -0.10% -0.10%
October 31, 2023
• Eurozone Core Harmonized Index of Consumer Prices (YoY)(Oct) PREL 4.20% 4.50%
• U.S. Housing Price Index (MoM)(Aug) 0.60% 0.80%
• India S&P Global Manufacturing PMI (Oct) 55.5 57.5
Wednesday,
• U.S. Fed Interest Rate Decision 5.50% 5.50%
November 01, 2023
• China Caixin Manufacturing PMI(Oct) 49.5 50.6
• Germany HCOB Manufacturing PMI(Oct) 40.8 40.7
Thursday, • Bank of England Interest Rate Decision 5.25% 5.25%
November 02, 2023 • U.S. Initial Jobless Claims(Oct 27) 217K 212K
• U.S. Factory Orders (MoM)(Sep) 2.80% 1%
• India S&P Global Composite PMI (Oct) 58.4 61
Friday,
• U.S. Nonfarm Payrolls(Oct) 150K 297K
November 03, 2023
• Germany Trade Balance (Sep) €16.5B €17.7B
16
The Week Ahead
06th Nov to 10th Nov
17
The Week Ahead
Day Event
• Germany Factory Orders (MoM) (Sep)
Monday, • Eurozone HCOB Composite PMI (Oct)
Nov 06, 2023 • Eurozone Sentix Investor Confidence (Nov)
• Japan Labor Cash Earnings (YoY)(Sep)
• U.K. BRC Like-For-Like Retail Sales (YoY)(Oct)
Tuesday, • China Imports (YoY)(Oct)
Nov 07, 2023 • Germany Industrial Production (MoM)(Sep)
• Eurozone Producer Price Index (YoY)(Sep)
• Germany Harmonized Index of Consumer Prices (YoY)(Oct)
Wednesday, • U.K. BoE's Governor Bailey speech
Nov 08, 2023 • Eurozone Retail Sales (YoY)(Sep)
• Japan Current Account (Sep)
Thursday, • China Consumer Price Index (YoY)(Oct)

• U.S. Initial Jobless Claims (Nov 3)
Nov 09, 2023 • Eurozone EcoFin Meeting
Friday, • India Industrial Production (YoY) (Sep)

• U.K. Gross Domestic Product (QoQ)(Q3) PREL
Nov 10, 2023 • U.S. Michigan Consumer Sentiment Index(Nov) PREL
18
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
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19
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NEWS U CAN USE

November 03, 2023

• Domestic equities rose during the week

Indian Derivatives Market Review

7.34 7.31% from the previous week’s close of

Source: Refinitiv Values as on Nov 03, 2023

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

4.70 the world added fewer jobs (Nonfarm

• Gains increased as smaller-than-

10.30 Rebased to 10 the U.S. dollar due to a rise in U.S. Treasury

Thursday, • China Consumer Price Index (YoY)(Oct)

Friday, • India Industrial Production (YoY) (Sep)

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