KEY HIGHLIGHTS

The 10-year Indian government bond yield Increases 0.56% to 6.622 from 6.585 in the week gone by. US 10 year benchmark increased 0.27% to 1.825 as compared to 1.820 in the previous week due to fear of war between USA and Iran.

A recent rally in the market, spurred by bond purchases from the Reserve Bank of India, has stalled as inflation surges to a five-year high. Stagflation looms as the economy grinds toward its slowest expansion in more than a decade. The National Statistical Office (NSO) has pegged nominal growth rate at 7.5% for the fiscal year ending March 2020, the worst on record since 1975. A simple extrapolation of the budgeted fiscal deficit of ₹7 trillion on the now lower GDP number of ₹204 trillion, worsens the fiscal deficit ratio to 3.5% of GDP. The actual figures, to be announced in the upcoming budget, may be higher, but the fiscal arithmetic already overshoots targets set by the Fiscal Responsibility and Budget Management (FRBM) Act. While this fiscal slippage in times of slowing growth does not come as a surprise, early warning signals for debt sustainability and repayment have started to show up, causing concern in India’s bond markets.

Globally, First-time claims for U.S. unemployment benefits unexpectedly decreased in the week ended January 11th to 204,000, a decrease of 10,000 from the previous week’s unrevised level of 214,000. The Labor Department said its consumer price index rose by 0.2 percent in December after climbing by 0.3 percent in November. China’s gross domestic product grew 6.0 percent year-on-year in the fourth quarter, the same rate as seen in the third quarter and in line with expectations.

FII/FPI IN DEBT MARKET

DATE PURCHASES SALES NET(cr)
Week ended

17th  Jan

16094.02 6181.26 9912.76
Week ended

10th  Jan

     7339.91 7138.78 201.13

 

2020-01-18-FII-FPI-IN-DEBT-MARKET

GLOBAL INDICES

INDEX As on

17th  Jan

As on

10th  Jan

%Chg.
S&P BSE SENSEX 41935.37 41599.72 0.81%
NIFTY 50 12352.35 12256.80 0.78%
NASDAQ 9388.94 9178.86 2.29%
FTSE 100 7674.56 7587.85 1.14%

POLICY RATES

INSTRUMENT Rate
Policy Repo Rate 5.15%
Reverse Repo Rate 4.90%
MSFR 5.40%
Bank Rate 5.40%
CRR 4.00%
SLR 18.50%
GDP 4.5%

EXCHANGE RATES

Rate As on

17th  Jan

As on

10th  Jan

%Chg.
USD/INR 71.079 70.960 -0.17
EUR/INR 78.834 78.922 -0.11
GBP/INR 92.474 92.681 -0.22
JPY/INR 06455 0.6482 -0.42

2020-01-18-USD-INR

MACRO DATA

PARTICULARS CURRENT PREVIOUS
Foreign Exchange Reserves (06/Dec) $453.00B $447.00B
WPI Inflation YoY (Nov) 0.58% 4.64%
Inflation Rate YoY (Nov) 5.54% 2.33%

DOMESTIC INDICATORS

INSTRUMENT As on

17th  Jan

As on

10th  Jan

10 yr bond yield 6.622% 6.585%
3yr bond yield 6.269% 6.296%
1yr bond yield 5.479% 5.426%
US 10 yr benchmark yield 1.825% 1.820%

2020-01-18-INDIA'S-YIELD

G-SEC YIELDS

Securities Maturity As on

17th   Jan

As on

10th   Jan

07.37 GS 2023 16/04/2023 6.270% 6.2900%
07.32 GS 2024 28/01/2024 6.410% 6.4300%
07.17 GS 2028 08/01/2028 6.880% 6.8700%

 

2020-01-18-G-SEC-YIELD

COMMODITY

INSTRUMENTS As on

17th    Jan

As on

10th    Jan

%Chg.
CRUDE OIL 65.1 64.98 0.18%
GOLD 41070 41170 -0.24%
SILVER 49400 51042 -3.22%

2020-01-18-CRUDE-OIL


 DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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