Retail inflation for industrial workers fell to 3.86% in May, compared with 4.42% the previous year. In April 2024, the Consumer Price Index-Industrial Workers (CPI-IW) was 3.87%, according to a labour ministry release. The food and beverage sector grew to 145.2 points in May, up from 143.4 points in April of this year. Every month, the Labour Bureau, an associated unit of the Ministry of Labour & Employment, compiles the Consumer Price Index for Industrial Workers from retail prices from 317 markets in 88 industrially important centres.
Top 3 Leads Today
- Four PSU banks present dividend cheques worth ₹64.81 billion to govt.
- SBI raises ₹100 billion at a coupon of 7.36% in 15-year infra bonds
- Retail inflation for industrial workers eases to 3.86% in May: Govt.
Indian Markets
- Money Markets Minute: The weighted average call money rate ended flat at 6.47% Wednesday, a shade below the RBI’s repo rate, owing to plentiful liquidity in the banking system. Towards close, money was offered at 5.75%, well below the RBI’s Standing Deposit Facility Rate of 6.25%, after most banks met their fund requirements.
- Government Bond Brief: Yields fell as foreign investor demand for gilts increased in JP Morgan's emerging market index suite. The market is awaiting US and India's June CPI inflation data, due Thursday and Friday. Turnover rose to ₹506.05 billion from ₹339.05 billion on Tuesday.
- Corporate Bond Beat: Yields on corporate bonds remained flat in the secondary market as investors focused on the primary market, with State Bank of India raising ₹100 billion through its infrastructure bond issue. On Wednesday, deals worth over ₹91.08 billion were recorded in the secondary market on the NSE and BSE combined, down from ₹98.37 billion on Tuesday
- Forex Flash: After trading in a narrow range of 6 paise, the rupee settled slightly weaker against the dollar Wednesday as banks purchased the greenback on behalf of some oil marketing companies. The rupee settled at 83.5200 a dollar, compared to its close of 83.4850 a dollar on Tuesday.
- Stocks Spotlight: Benchmark indices saw some profit-booking due to high valuation concerns after recent gains. Investors are cautious ahead of the June quarter earnings and US inflation data due this week. The Nifty 50 fell 0.5% to 24,324.45 points, while the Sensex dropped 0.5% to 79,924.77 points
International Markets
- US Stocks: On Wednesday, the Nasdaq and S&P 500 closed at new highs, boosted by advances in Nvidia and other Wall Street heavyweights ahead of this week's inflation data and quarterly earnings announcements. The Dow Jones index also rose 1.06%. The S&P 500 reached a milestone by surpassing 5,600 for the first time, following remarks by Federal Reserve Chair Jerome Powell that fuelled anticipation of a potential interest-rate cut in September.
- Treasuries: US Treasury yields declined as traders evaluated Powell's remarks. On Wednesday, Fed Chair Jerome Powell spoke to Congress for the second day in a row. He said that the central bank will decide on interest rates "when and as" they are needed. He rejected the notion that a September rate drop may be interpreted as a political measure ahead of the November 5 presidential election in the United States.
- Currency: The dollar declined on Wednesday following remarks from Federal Reserve Chair Powell that the US central bank is nearing a potential interest rate cut. Powell emphasised the importance of observing additional drops in inflation before taking any action. The dollar index, which compares the greenback to six other currencies, including the euro and yen, fell 0.07% to 105.05. As investors accepted a hung French parliament, the euro rose 0.1% to $1.0823.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| Financial Institution | 145 | 1450 | 303 | 1077 | 3 |
| NBFC | 497 | 1325 | 79 | 429 | 8 |
| Housing Finance Company | 210 | 226 | 140 | 131 | - |
| Private Sector Bank | 551 | 50 | 15 | 3 | - |
| Civil Construction | 550 | - | - | - | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 7.43 NBFID 04JUL34 | 2024-07-04 | 1835.00 | 7.43 | 7.43 |
| 7.36 SBI 27JUN39 | 2024-06-27 | 1695.00 | 7.36 | 7.35 |
| 11.00 GMR INFRA 26JUN2026 CALL 26JUN2027 | 2024-06-26 | 600.00 | 15.67 | 15.71 |
| 7.89 BOM 04JUL29 C 04JUL34 M | 2024-07-04 | 547.00 | 7.91 | 7.93 |
| 7.53 ICICI 03JUL34 | 2024-07-01 | 400.00 | 7.52 | 7.53 |
| 8.64 CHOLAINVFIN 26JUN29 | 2024-06-26 | 355.20 | 8.63 | 8.63 |
| 8.42 GODREJIND 27DEC27 | 2024-06-27 | 295.00 | 8.44 | 8.44 |
| 8.07 ICICI HFL 01OCT27 | 2024-07-01 | 287.75 | 8.10 | 8.09 |
| 9.15 SHRIRAMFIN 28JUN29 | 2024-06-28 | 282.00 | 9.14 | 9.14 |
| 7.93 TATA POWER RENEWABLE 26JUN29 | 2024-06-26 | 265.00 | 7.92 | 7.92 |
| 7.41 IIFCL 26JUN39 | 2024-06-26 | 170.00 | 7.40 | 7.40 |
| 8.1629 L&T FINANCE 30SEP27 | 2024-06-28 | 160.00 | 8.18 | 8.18 |
| 7.93 TATA POWER RENEWABLE 26JUN34 | 2024-06-26 | 150.00 | 7.92 | 7.92 |
| 9.84 SPANDANA 28JUN26 | 2024-06-28 | 116.10 | 10.99 | 11.31 |
| 7.92 TATA CAPITAL HFL 07JUL34 | 2024-07-08 | 115.00 | 7.92 | 7.92 |
| 8.23 SUNDARAM FINANCE 05JUL34 | 2024-07-05 | 90.00 | 8.22 | 8.22 |
| 7.44 IREDALTD 25AUG34 | 2024-06-25 | 75.00 | 7.44 | 7.44 |
| 11.00 UTKRASHBANK - C 26JUN31 M | 2024-06-27 | 61.50 | 11.37 | 0.00 |
Source: Harmoney data analytics
Events This Week
July 11, Thursday:
- US Real Earnings for June.
- US Unemployment Insurance Weekly Claims Report.
- US Weekly Export Sales.
- US CPI for June.
- US EIA Weekly Natural Gas Storage Report for Jul 5 week.
July 12, Friday:
- US PPI for June.
- India Bank Loan Growth for Jun 28 week.
- India Deposit Growth for Jun 28 week.
- India Foreign Exchange Reserves for Jul 5 week.
- India Industrial Production for May.
- India Inflation Rate for June.
- India Manufacturing Production for May.
- India Inflation Rate for June.
For any inquiries or assistance related to market data, please reach out to us at support@harmoney.in