KEY HIGHLIGHTS

The 10 year government bond yield increases 3% to 6.66 from 6.46 in the previous week. US 10 year benchmark increased 4% to 1.843 as compared to 1.774 in the previous week. The g-sec yields ended uper this week.

In a surprise move, Monetary Policy Committee (MPC) decided to keep rates unchanged despite clamors for further rate cuts. MPC unanimously voted in favor of keeping the policy repo rate unchanged at 5.15%. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target. FY20 GDP growth forecast cut sharply to 5% from 6.1% projected earlier. 2H FY20 GDP growth seen at 4.9-5.5% versus 6.6-7.2% projected earlier.

OPEC and its allies completed a new production pact to deepen their oil-output cuts, delegates said Friday. The 24-nation consensus coincides with the initial public offering of Saudi Arabia’s state-controlled national oil company, Aramco, and illustrates a renewed assertiveness from the alliance’s de facto leader and Saudi’s new oil minister, Prince Abdulaziz bin Salman. Prince Abdelaziz says that Saudi Arabia’s will continue voluntary cuts to off set the limitations of other opec and non opec members. Saudi oil minister says we will continue the voluntary cut of 400k which brings the opec+ total to  2.1 million.

Overseas, developments on the U.S.-China trade front will be closely watched. As per reports, China’s finance ministry said the country will waive import tariffs for certain soybean and pork shipments from the U.S., without providing further detail. The Federal Reserve’s two day meeting begins on Tuesday, 10 December 2019 and the interest rate decision will be announced on Wednesday, 11 December 2019. In Europe, European Central Bank (ECB) will announce its interest rate decision on Thursday, 12 December 2019.

FII/FPI IN DEBT MARKET

DATE PURCHASES SALES NET(cr)
Week ended

6th Dec

    5693.55 5295.57 397.95
Week ended

29th Nov

6753.99 6992.90 -238.91

 

2019-12-07-FII-FPI-IN-DEBT-MARKET

GLOBAL INDICES

INDEX As on

2nd  Dec

As on

29th Nov

%Chg.
S&P BSE SENSEX 40445.15 40793.81 -0.85
NIFTY 50 11921.50 12056.05 -1.12
NASDAQ 8656.53 8665.47 -0.10
FTSE 100 7239.66 7346.53 -1.45

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

6th Dec

As on

29th Nov

%Chg.
USD/INR 71.283 71.749 0.65
EUR/INR 78.832 79.46 0.79
GBP/INR 93.655 92.775 -0.95
JPY/INR 0.6566 0.6552 -0.21

 

2019-12-07-USD-INR

MACRO DATA

PARTICULARS CURRENT PREVIOUS
Foreign Exchange Reserves (08/Nov) $447.00B $439.71B
WPI Inflation YoY (Sep) 0.10% 0.33%
Inflation Rate YoY (Sep) 4.62% 3.99%

 

DOMESTIC INDICATORS

INSTRUMENT As on

6th  Dec

As on

29nd  Nov

10 yr bond yield 6.661% 6.46%
3yr bond yield 6.251% 6.00%
1yr bond yield 5.568 5.32%
US 10 yr benchmark yield 1.843 1.774%

 

2019-12-07-INDIA'S-YIELD

G-SEC YIELDS

Securities Maturity As on

6th  Dec

As on

29th Nov

07.37 GS 2023 16/04/2023 6.2600% 6.0100%
07.32 GS 2024 28/01/2024 6.4300% 6.1900%
07.17 GS 2028 08/01/2028 6.9200% 6.7400%

2019-12-07-G-SEC-YIELD

COMMODITY

INSTRUMENTS As on

6th  Dec

As on

29th Nov

%Chg.
CRUDE OIL 59.13 55.42 6.69
GOLD 39270 39300 0.08
SILVER 48144 47763 -0.80

 

2019-12-07-CRUDE-YIELD


 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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