India's outward foreign direct investment commitments increased to $3.24 billion in October 2024, from $2.55 billion in October 2023. However, they have fallen sequentially from $3.77 billion in September 2024, according to Reserve Bank of India data. Outbound FDI is expressed as a financial commitment with three components: equity, loans, and guarantees.
Equity commitments dropped to $655.84 million in October 2024 from $993.35 million a year earlier and $817.64 million in September. In October 2024, debt commitments stood at $1.24 billion, up from $248.4 million in October 2023 and $1.16 billion in September 2024. Guarantees for overseas units were $1.33 billion in October 2024, down from $1.79 billion in September 2024.
Top 3 Leads Today
- S&P says India medium-term growth outlook solid, sees GDP rising 7% in FY27.
- SEBI proposes changes in custodian norms, wants minimum net worth to double.
- Policies to play key role in unlocking growth offered by technology, says RBI Patra.
Indian Markets
- Money Markets Minute: The call rate ended above the RBI's repo rate at 6.60%, despite a large liquidity surplus, as some banks sought funds amid uneven liquidity distribution. The weighted average rate slightly decreased to 6.39% from 6.45% on Tuesday.
- Government Bond Brief: Yields edged up as traders pared positions before the weekly gilt auction and the US CPI data release. The 10-year benchmark bond yield closed at 6.84%, up from 6.83% on Tuesday, with a market turnover of ₹361.45 billion, down from ₹415.65 billion.
- Corporate Bond Beat: Yields on corporate bonds remained stable as secondary market activity was limited, with investors focusing on need-based trades only. Total transactions amounted to ₹96.39 billion, slightly down from ₹104.30 billion on Tuesday.
- Forex Flash: The rupee remained stable against the dollar, likely due to the RBI's intervention through dollar sales after the currency hit a record low of 84.4100 per dollar during intraday trading, pressured by foreign fund outflows from domestic equities. The rupee traded within a narrow range of four paise and closed at 84.3775 per dollar, slightly higher than Tuesday's close of 84.3925.
- Stocks Spotlight: The indices dropped over 1% for the second consecutive session, closing at a four-month low due to weak domestic factors and a sharp rise in the 10-year U.S. Treasury yield. The Nifty 50 extended its losing streak to five sessions, ending at 23,559.05 points, down 1.4%, while the Sensex closed at 77,690.95 points, down 1.3%.
International Markets
- US Stocks: The benchmark indices ended mixed. The Dow and S&P 500 finished marginally higher on Wednesday, while the Nasdaq fell after October data showed consumer prices rising in line with expectations, lending support to predictions that the US Federal Reserve will cut interest rates in December. The Dow rose 0.11% to 43,958.19, the S&P 500 gained 0.02% to 5,985.38, and the Nasdaq fell 0.26% to 19,230.74.
- Treasuries: Yields climbed in volatile trade as investors examined the latest US inflation statistics and the Federal Reserve's interest rate policy path. The Labor Department reported a 0.2% consumer price index for the fourth straight month. The CPI rose 2.6% in the year to October, reflecting expectations, following a 2.4% increase in September. The benchmark 10-year US note yield jumped 1.6 basis points to 4.449% after dipping as low as 4.361% following the CPI news.
- Currency: The US dollar rose to a one-year high versus major currencies on Wednesday, boosted by so-called Trump trades and the fact that US inflation for October came in as expected, implying that the Federal Reserve will continue to cut interest rates. The dollar index rose 0.43% to 106.44 after reaching a high of 106.53. The euro fell 0.51% to $1.0569.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| NBFC | 1835 | 576 | 185 | 322 | 146 |
| Financial Institution | 1879 | 510 | 55 | - | 35 |
| Private Sector Bank | 700 | 720 | 35 | 461 | - |
| Housing Finance Company | 75 | 19 | 716 | 1 | - |
| Public Sector Bank | - | - | - | 211 | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 7.32 IREDA 04NOV29 | 2024-11-04 | 336 | 7.32 | 7.31 |
| 7.47 IIFCL 07NOV27 | 2024-11-07 | 215 | 7.47 | 7.47 |
| 7.26 IIFCL 07NOV34 | 2024-11-07 | 175 | 7.26 | 7.27 |
| 8.03 POONAWALLA FINCROP 07NOV29 | 2024-11-07 | 103 | 8.02 | 8.03 |
| 7.65 SUNDARAM HOME FINANCE 29OCT29 | 2024-10-29 | 100 | 7.64 | 7.64 |
| 8.90 BHARATI TELECOM 05NOV31 | 2024-11-05 | 80 | 8.71 | 8.77 |
Source: Harmoney data analytics
Events This Week
November 14, Thursday:
- US Unemployment insurance weekly claims report for Nov 9 week.
- US PPI for October.
- India WPI for October.
November 15, Friday:
- US Weekly export sales.
- US Advance monthly sales for retail & food services for October.
- US Import & export price indexes for October.
- India Bank loan growth for Nov 1 week.
- India Deposit growth for Nov 1 week.
- India Foreign exchange reserves Nov 8 week.
- India Balance of Trade for October.
- India Exports and Imports for October.
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