Weekly Market Update

28 July, 2023
16 April, 2021

Macro Economic Release Macro Economic Update

Indicators Actual Consensus Previous • Sebi Chief claims that the market regulator is considering the possibility of allowing
Imports ($ billion) (Jun 2023) 53.10 NA 57.10 businesses to delist by declaring a predetermined price to be paid for shares instead of the
Exports ($ billion) (Jun 2023) 32.97 NA 34.98 current reverse book building procedure. The regulator is also investigating the trading plan
mechanism for insiders at listed corporations and working on fast settlement of stock market
Trade Deficit ($ billion) (Jun 2023) 20.13 20.10 22.12
transactions. Before December, Sebi will publish a discussion paper on the delisting
WPI Inflation (Jun 2023) -4.12% -3.60% -3.48% procedure.
Source: Refinitiv
• The International Monetary Fund (IMF) raised India’s growth forecast to 6.1% for FY24 from
FII and DII Investment vs Nifty 50 5.9% estimated in April, citing strong domestic investment but cautioned that the global
economy is still not "out of the woods" and that the fight against inflation is far from finished.
13,035 21,978
The 6.3% prediction for FY25 remains the same.
MF & FII/FPI flow

• Asset management companies are now permitted to issue funds under six additional

Nifty 50 Index
(Rs. Crore)

7,801 20,343
strategies by the Securities and Exchange Board of India (SEBI), which broadens the definition
of the Environmental, Social, and Governance (ESG) thematic category. According to the SEBI
2,566 18,709
circular, any ESG-related scheme may be introduced using one of the following approaches:
exclusion, integration, best-in-class & positive screening, impact investing, sustainable aims,
-2,668 17,074 transition or investments relevant to the transition. According to the Sebi, the new category for
28-Jun-23 08-Jul-23 18-Jul-23 28-Jul-23 ESG programs will take effect right now.
Net FII/FPI flow (Equity) Net DII flow (Equity) Nifty 50

Source: NSDL, SEBI & NSE

Indian Equity Market Performance Key Valuation Ratios

% Change % Change % Change
Broad Indices 28-Jul-23 Broad Indices P/E P/B Dividend Yield
(WoW) (YoY) (YTD)
S&P BSE Sensex 66,160 -0.79 16.36 8.74 Nifty 50 22.91 4.80 1.29
Nifty 50 19,646 -0.50 16.05 8.51 Nifty Midcap 100 25.34 3.22 1.20
S&P BSE 100 20,045 -0.15 15.93 8.79 Nifty Smallcap 100 21.76 3.53 1.20
Nifty 500 16,948 0.26 17.13 9.71 Source: NSE
Nifty Midcap 100 37,357 1.52 27.85 18.56 Domestic Equity Market Update
Nifty Small cap 100 11,600 0.61 28.64 19.21 • Domestic equity markets fell after rising for four consecutive weeks as key benchmark
% Change % Change indices S&P BSE Sensex and Nifty 50 fell around 1%. However, there was some volatility in the
Sector Indices 28-Jul-23 % Change (YoY) market as the mid cap segment and the small cap segment closed the week in green.
(WoW) (YTD)
S&P BSE AUTO 35,650 -0.28 25.70 23.26 • Domestic equities fell as market participants exercised caution and remained on the sidelines
S&P BSE Bankex 51,320 -1.54 19.19 4.93 as they awaited the outcome of the crucial U.S. Federal Reserve monetary policy review.
Market sentiments were further dampened after the U.S Federal Reserve hiked interest rates
S&P BSE CD 42,384 0.30 8.69 6.70
by 25 bps and added that future rate actions will be dependent on incoming data. This led to
S&P BSE CG 43,474 2.53 47.55 30.39 uncertainty and ambiguity as to what stance the U.S. Federal Reserve might adopt regarding
S&P BSE FMCG 19,069 -1.38 23.86 18.62 its monetary policy in the coming months which clouded the outlook of interest rates in U.S.
S&P BSE HC 27,747 3.95 22.41 20.46 • Losses were extended following a slew of upbeat economic data from U.S. which led to
S&P BSE IT 29,893 -0.68 3.10 4.26 worries of continued rate hikes by the U.S. Federal Reserve as data showed that the U.S.
S&P BSE METAL 21,804 2.86 25.37 4.55 economy was on a strong footing. Furthermore, increase in global crude oil prices and rise in
yields on U.S. Treasuries added to the losses. Profit booking too contributed to the market
S&P BSE Oil & Gas 19,213 -0.83 3.37 -5.86
downside. Market sentiments also remained muted due to downbeat earning numbers for the
S&P BSE Power 4,280 6.46 -4.82 -2.32 quarter ended Jun 2023 by some prominent domestic blue-chip companies. However, further
S&P BSE PSU 11,544 2.40 34.61 15.24 losses were restricted after China’s top leaders pledged in the Politburo meeting to roll out
S&P BSE Realty 4,509 5.08 26.75 30.81
further policy support to aid the country’s economic recovery.
S&P BSE Teck 13,536 -0.12 2.49 0.91
Source: BSE & NSE
Indian Debt Market Indicators
6 Months 6 Months
Broad Indices 28-Jul-23 Week Ago Month Ago Year Ago Broad Indices 28-Jul-23 Week Ago Month Ago Year Ago
Ago Ago
Call Rate 6.48% 6.61% 6.82% 6.44% 5.06% 1 Year AAA Corporate Bond 7.68% 7.58% 7.56% 7.77% 6.70%
T-Repo 6.54% 6.51% 6.76% 6.43% 5.15% 3 Year AAA Corporate Bond 7.73% 7.74% 7.75% 7.71% 7.38%
Repo 6.50% 6.50% 6.50% 6.25% 4.90% 5 Year AAA Corporate Bond 7.59% 7.54% 7.50% 7.77% 7.84%
Reverse Repo 3.35% 3.35% 3.35% 3.35% 3.35% 10 Year AAA Corporate Bond 7.49% 7.45% 7.43% 7.71% 8.21%
3 Month CP 7.01% 6.98% 6.99% 7.30% 6.10% 1 Year G-Sec 6.94% 6.92% 6.85% 6.75% 6.32%
1 Year CP 7.48% 7.48% 7.47% 7.82% 6.90% 3 Year G-Sec 7.11% 7.04% 6.99% 7.12% 6.77%
3 Month CD 6.98% 7.00% 6.93% 7.20% 5.93% 5 Year G-Sec 7.15% 7.08% 7.02% 7.20% 7.10%
1 Year CD 7.37% 7.42% 7.38% 7.73% 6.97% 10 Year G-Sec 7.16% 7.09% 7.06% 7.39% 7.33%
* ** @ @@
Source: CCIL,Refinitiv Forex Reserve ($ in billion) 607.04 609.02 593.20 576.76 571.56@@@
* ** @ @@ @@@
Source: CCIL,Refinitiv As on Jul 21, 2023; As on Jul 14, 2023; As on Jun 23, 2023; As on Jan 27, 2023; As on Jul 22, 2022
10 - Year benchmark G-Sec Movement Domestic Debt Market Update
7.53%
• Bond yields rose following rise in yields on U.S. Treasuries over the week. Yields rose further
as the weekly debt auction added to fresh supply.
• Worries that domestic inflationary pressures may rise also weighed on the market sentiment.
Market sentiments also remained muted on anticipation that interest rates in U.S. may remain
7.34%
Yield (in %)

elevated for an extended period of time.

• Yield on the 10-year benchmark paper (7.26% GS 2033) rose 8 bps to close at 7.16% from the
previous week’s close of 7.08%.
7.14%
• Data from Reserve Bank of India showed that the Reserve Bank of India – Digital Payments
(RBI-DPI) Index rose to 395.57 in Mar 2023 from 377.46 in Sep 2022. The RBI-DPI index has
increased across all parameters driven by significant growth in payment infrastructure and
6.94% payment performance across the country over the period.
Jul-22 Nov-22 Mar-23 Jul-23
 Weekly Market Update
28 July, 2023

Global Commodity Update Currencies Update

% Change % Change % Change 6 Months
Commodities 28-Jul-23 Currency 28-Jul-23 Week Ago Month ago Year Ago
(WoW) (YoY) (YTD) Ago
NYMEX Crude Oil ($/barrel) 80.66 5.05 -17.05 0.32 U.S. Dollar 82.23 81.98 82.02 81.51 79.63
Brent Crude Oil ($/barrel) 84.78 4.85 -21.22 -1.41 GBP 105.66 105.39 103.63 101.05 96.97
Gold ($/ounce) 1,959.20 -0.05 11.60 7.39 Euro 90.57 91.17 89.49 88.58 81.17
Silver ($/ounce) 24.33 -0.99 21.81 1.52 Yuan 11.50 11.40 11.32 12.01 11.80
Source: Refinitiv Source: Refinitiv

Global Equity Market Performance Global Bond Yield Update

Country/ % Change % Change % Change 6 Months
Indices 28-Jul-23 Indicators 28-Jul-23 Week ago Month ago Year ago
Region (WoW) (YoY) (YTD) Ago
MSCI MSCI Emerging Market Price Index 1,043 2.82 4.57 9.08 U.S. 10 Year Bond yield (%) 3.97 3.84 3.71 3.52 2.68
MSCI MSCI International World Price Index 3,058 0.96 12.84 17.49 U.K. 10 Year Bond yield (%) 4.33 4.28 4.32 3.33 1.87
U.S. Russell 1000 2,513 0.97 12.39 19.33 German 10 Year Bond yield (%) 2.46 2.43 2.31 2.25 0.80
U.S. Nasdaq composite 14,317 2.02 17.71 36.79 China 10 Year Bond yield (%) 2.69 2.65 2.70 2.94 2.67
U.K. FTSE 7,694 0.40 4.75 3.25 Source: Refinitiv

France CAC 40 7,476 0.59 17.94 15.49 Global Economic Calendar

Germany DAX 16,470 1.81 24.00 18.29 Release
Economic Events Actual Consensus Previous
Japan Nikkei 225 32,759 1.41 17.77 25.54 date

China Shanghai Composite 3,276 3.42 -0.20 6.04 U.S. S&P Global Composite PMI (Jul) PREL 24-Jul 52.00 53.10 53.20

Hong Kong Hang Seng 19,917 4.41 -3.42 0.68 Germany IFO – Business Climate (Jul) 25-Jul 87.30 88.00 88.60

Singapore Straits Times 3,371 2.83 4.67 3.69 U.S. Gross Domestic Product Annualized (Q2) 27-Jul 2.40% 1.80% 2.00%

Russia RTS Index 1,034 2.10 -9.15 6.50 Germany Gross Domestic Product (YoY) (Q2) 28-Jul -0.20% -0.30% -0.50%
Brazil Sao Paulo Se Bovespa 120,187 -0.02 17.15 9.53 Source: FX Street; Refinitiv
Source: Refinitiv

Macro Economic Performance of India

Credit growth vs Deposit growth IIP Growth (%)

22 22 25
Deposit growth (%)
Credit growth (%)

IIP Growth (%)

17 17
15

12 12
5

7 7
15-Jul-22 14-Oct-22 13-Jan-23 14-Apr-23 14-Jul-23
-5
Credit Growth (%) Deposit Growth (%) May-22 Sep-22 Jan-23 May-23

Source: Refinitiv Source: Refinitiv

Retail inflation movement Wholesale price inflation movement

8 7.4 19
7.0 16.2
6.7 7.0 6.8 6.5 6.4 16 14.1
5.9 12.5
CPI Inflation (%)

5.7
WPI Inflation (%)

5.7 13
6 10.6
4.7 4.8 8.7
4.3 10
6.1
4 7 5.0 4.8
3.9
4 1.4
2 1
-2
-0.8
0 -5 -3.5 -4.1
Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23 Jun-23

Source: Refinitiv Source: Refinitiv

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