Saturday, July 4, 2020

The World This Week – 12th June 2020 to 19th June 2020


Indian Equity Summary-
·         Tracking positive cues from global markets, domestic benchmark indices Nifty 50 and Sensex closed in green and rose by 2.72% and 2.81% onØ a WoW basis, albeit, the concerns of rising coronavirus cases in India and geopolitical tensions between India and China. 
·         The top performing sectoral indices on WoW basis were BSE Realty and BSE Bankex that rose by 3.70% and 3.17% WoW while the worstØ performing index was BSE FMCG that fell by 1.22% WoW. 
·         Going forward, global factors like development on the US -China relationship front , any resurgence of Covid-19 cases globally, as economiesØ have started opening up will continue to dictate the trend of the domestic equity market. We expect the trading range for Nifty between 10,000-10,500 in the near term.

Indian Debt Market- 
·         Government bond prices fell as the yield on the latest 10-year benchmark 5.79% 2030 paper settled at 5.85% on Jun 19 compared with 5.80% onØ Jun 12. 
·         State Governments have announced the sale of their securities by way of an auction, for an aggregate face value of ₹ 6,100 Cr.Ø 
·         Fitch Ratings has revised the Outlook on India's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and affirmed theØ rating at 'BBB-‘. 
·         We expect the 10 year benchmark yield to trade between 5.80-6.05% in near termØ.
Domestic News 
·         According to a Reuters poll of 13 analysts , average house prices in India will slump 5.0% in 2020 and 3.0% in 2021 as against an expected rise ofØ 2.0% and 2.5% in 2020 and 2021 respectively in the similar poll made in March.
·         India’s Crude oil imports fell 22.6% YoY to 14.61 million tonnes in May as per the data released by Petroleum Planning and Analysis Cell,being theØ lowest since 2015. 
·         Major port volumes in India came in at 45.4 mnt (-23% y-o-y) in May, sequentially the lowest since February 2015.Ø 
·         Foreign portfolio investors (FPI) have infused a net Rs 17,985 crore into the Indian capital markets in June till now amid increasing liquidity andØ higher risk appetite. 
·         The demand slump has taken its toll on India Inc’s earnings during the January-March quarter with net profit of a sample of 633 companiesØ (excluding banks and financials) declining by 75.22% on a year-on-year basis.

International News
·         The U.S. current account deficit slipped by 0.1% to $104.2 billion, dipping to a near two-year low in the first quarter as the COVID-19 pandemicØ restricted the flow of goods and services.
·         The UK’s Tax revenues in May were 43% lower than a year earlier in cash terms as a result of the government’s deferral of value-added tax billsØ to help companies preserve cash flow. 
·         The total number of bankruptcy filings in HongKong in the first five months stood at 3,605, 12.4% higher than 3,207 a year earlier.Ø
·         Japan’s core consumer price index (CPI), which includes oil but excludes volatile fresh food prices, fell 0.2% in May YoY.Ø 
·         U.S. Fed's balance sheet shrinks for first time since February as the Assets ranging from U.S. Treasury bonds and mortgage-backed securities toØ loans to banks and state governments - fell to $7.14 trillion on June 17 from $7.22 trillion on a WoW basis.


No comments:

Post a Comment