Global banks have begun restarting IT projects that were placed on hold in 2023, raising expectations for the $254 billion Indian IT sector, which derives almost one-third of its income from banking, financial services, and insurance customers. Quarterly reports from Tata Consultancy Services, Infosys, Wipro, and others showed a tentative revival in BFSI client demand after six quarters of low spending following the Silicon Valley Bank disaster.
Top 3 Leads Today
- Telcos' ARPU growth slows to 7.5% in FY24, down from 20% in FY23: Govt data.
- India's Trade Deficit Widens To $23.5 billion In July.
- WPI inflation cools to 3-month low of 2.04% in July as food prices decline.
Indian Markets
- Financial Markets were closed on Thursday for India’s 78th Independence Day holiday.
- Money Markets Minute: The call money market rate closed significantly below the RBI’s 6.25% standing deposit facility rate on Wednesday.
- Government Bond Brief: The 10-year benchmark 7.10% 2034 bond closed at a 6.86% yield Wednesday, down from 6.88% on Tuesday.
- Corporate Bond Beat: Corporate bond yields remained steady for the first part of this week.
- Forex Flash: The rupee ended steady at 83.9475 per dollar on Wednesday.
- Stocks Spotlight: The Sensex rose 0.19% to 79,105.88, and the Nifty increased 0.02% to 24,143.75 on Wednesday.
International Markets
- US Stocks: All major indices closed higher on Thursday following July's US retail sales data, which highlighted robust consumer spending. The Nasdaq surged over 2%, with nine of the 11 S&P 500 sectors advancing, led by consumer discretionary and IT. Retail sales increased by 1.0% after a downwardly revised 0.2% decline in June, easing fears of a sharp economic downturn triggered by last week's rise in the unemployment rate.
- Treasuries: Yields rose after robust retail sales data in the US allayed concerns about slowing economic growth and dampened investor expectations of immediate aggressive interest rate cuts. The benchmark 10-year treasury yield rose to 3.9188%, while the two-year Treasury yield rose to 4.1034%, fuelled by speculation that the Fed may cut rates more gradually.
- Currency: After US economic data eased recession fears and lowered expectations for aggressive interest-rate cuts, the dollar index rose 0.42% to 103.03, moving away from last week's eight-month low of 102.15. At $1.0973, the euro fell 0.36% against the dollar.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| NBFC | 1127 | 1826 | 687 | 284 | 5 |
| Financial Institution | 125 | 930 | 150 | 176 | - |
| Private Sector Bank | 421 | 150 | 4 | 1 | - |
| Housing Finance Company | 50 | 206 | 44 | 111 | 3 |
| Breweries & Distilleries | - | 58 | 117 | 34 | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 7.37 IRFC 31JUL29 | 2024-07-31 | 2700 | 7.38 | 7.36 |
| 9.10 CHOLAINVFIN 27JUN31 | 2024-07-31 | 1806 | 9.10 | 9.10 |
| 7.98 BAJAJ FINANCE 31JUL29 | 2024-07-31 | 822 | 7.97 | 7.96 |
| 8.25 SBICARDS 08AUG34 | 2024-08-08 | 814 | 8.24 | 8.20 |
| 7.80 BOM 05AUG34 | 2024-08-05 | 306 | 7.78 | 7.81 |
| 7.39 IIFCL 01AUG39 | 2024-08-01 | 265 | 7.38 | 7.38 |
| 8.30 SMFG 30JUN27 | 2024-08-05 | 250 | 8.38 | 8.38 |
| 7.98 IIDL 05AUG34 | 2024-08-05 | 205 | 7.97 | 7.97 |
| 0% 360ONEPRIME 13MAR26 | 2024-08-08 | 164 | 9.00 | 9.00 |
| 8.05 AXISFIN 25APR28 | 2024-08-09 | 119 | 8.02 | 8.03 |
| 9.75 SAMMAAN CAPITAL LIMITED 12APR2028 | 2024-08-12 | 100 | 9.59 | 9.12 |
| 8.28 PNB HFL 30DEC26 | 2024-08-07 | 100 | 8.31 | 8.31 |
| 7.99 RCFL 07AUG27 | 2024-08-07 | 100 | 7.99 | 7.99 |
| 8.1841 TFSIN 29SEP27 | 2024-08-01 | 90 | 8.20 | 8.20 |
| 0% EQUINOX INDIA DEVELOPMENTS LIMITED 05SEP2025 | 2024-08-05 | 80 | 11.93 | 11.93 |
| 7.98 SUNDARAMHFL 04SEP26 | 2024-08-05 | 75 | 7.96 | 7.96 |
| 7.87 SUMMITDIGITELLTD 15DEC29 C 15MAR30 M | 2024-08-05 | 75 | 8.15 | 8.15 |
| 10.30 IKFFIN 30JUL27 | 2024-08-01 | 55 | 11.16 | 10.52 |
| 8.90 MUTHOOT FINANCE 07OCT27 | 2024-08-07 | 50 | 8.92 | 8.92 |
Source: Harmoney data analytics
Events This Week
August 16, Friday:
- India FX reserves for Aug 9 week.
- US New residential construction for July.
- US State employment and unemployment for July.
For any inquiries or assistance related to market data, please reach out to us at support@harmoney.in