According to industry insiders, Indian oil marketing companies have placed interim orders for crude from traditional West Asia suppliers, including Iraq and the UAE, as global crude prices have remained below $75 in September thus far. Most orders are scheduled for delivery in 2-3 months, they said. Official from a state-run refiner stated that while all major studies predict prices not rising significantly in the short future, it is always a good idea to be prepared with ample inventories. Global crude prices have declined every month since April, when they broke $90 per barrel. Brent crude futures hit a 33-month low of $69 per barrel last week. Due of low demand and oversupply. On Monday with Brent crude futures at $72.9 per barrel.
Top 3 Leads Today
- Fed rate cut won't influence India's monetary policy, says RBI Das.
- Banks, FIs to invest ₹32.5 trillion in renewable energy by 2030: Centre.
- Bonus shares must start trading 2nd day from record date, says SEBI.
Indian Markets
- Money Markets Minute: The rate for one-day loans settled at 6.00%, below the RBI's 6.25% deposit facility rate, as volumes fell due to low bank demand. The weighted average rate was 6.03%, down from 6.62% on Friday, when 4-day loans were at 6.50%.
- Government Bond Brief: Bond yields fell as investors extended their portfolios, anticipating a price rise ahead of the US Federal Open Market Committee's rate decision on Wednesday. The 10-year benchmark 7.10%, 2034 gilt yield ended at 6.76%, down from 6.79% on Friday. Turnover was ₹622.60 billion, compared with ₹811.30 billion on Friday, per RBI data.
- Corporate Bond Beat: A quiet day in the secondary market, with many traders on leave, kept yields steady. Overall volumes were low, with ₹27.32 billion in deals on the exchanges, down from ₹91.58 billion on Friday.
- Forex Flash: The rupee ended flat against the dollar in low-volume trade, as the impact of a weak dollar index was offset by state-owned banks buying dollars for oil companies. After a narrow 6-paise range, the rupee settled unchanged at 83.8875 per dollar.
- Stocks Spotlight: Benchmark indices ended with muted gains as domestic investors have a conservative view about the US Federal Reserve's policy decision on Wednesday and they largely ignored overnight gains in the US markets. Sensex closed at 82988.78 points, up 0.1%. The Nifty 50 settled at 25383.75 points, up 0.1%.
International Markets
- US Stocks: The benchmark indices ended mixed on Monday. The S&P 500 edged up slightly, while the Nasdaq dipped, led down by a technology shares as investors assessed the chances of an increased rate cut from the Federal Reserve this week. The S&P technology index, fell 0.95% as the session's biggest decliner. The Dow Jones rose 0.55% to 41,622.08, the S&P 500 gained 0.13% to 5,633.09, and the Nasdaq fell 0.52% to 17,592.13.
- Treasuries: On Monday, short-term bond yields fell to their lowest level in two years. The rate-sensitive two-year note's yield was 1.7 basis points lower to 3.561%, following a negative trend that started earlier this month. Benchmark 10-year rates fell for the second straight session, dropping 3.1 basis points to 3.618% from 3.649% on Friday. Yields declined on the view that the Federal Reserve will go for more aggressive rate cuts on Wednesday.
- Currency: On Monday, the dollar fell to a more than one-year low versus the yen as all eyes focused on a Federal Reserve meeting later this week, which is expected to kick off a much-anticipated easing cycle. The dollar index, which measures the greenback against a basket of currencies, declined 0.33% to 100.69. Against the Japanese yen, the dollar fell 0.13% to 140.63.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| NBFC | 86 | 477 | 340 | 234 | 70 |
| Private Sector Bank | - | 325 | - | 0 | - |
| Industrial Minerals | - | 292 | 29 | - | - |
| Housing Finance Company | - | 204 | 26 | 20 | 25 |
| Financial Institution | - | 100 | 7 | 121 | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 7.37 IIFCL 02SEP34 | 2024-09-02 | 750 | 7.36 | 7.37 |
| 7.45 AXISBANK 05SEP34 | 2024-09-05 | 465 | 7.44 | 7.45 |
| 7.72 THDC 02SEP34 | 2024-09-03 | 355 | 7.72 | 7.71 |
| 9.65 ADANIENTLTD 09SEP27 | 2024-09-09 | 286 | 9.80 | 10.36 |
| 9.25 MOFSL 03SEP32 | 2024-09-03 | 237 | 9.23 | 9.20 |
| 7.9918 L&T FINANCE 25MAR27 | 2024-09-05 | 125 | 8.02 | 8.02 |
| 7.36 IREDALTD 10SEP34 C 09SEP39 M | 2024-09-10 | 120 | 7.35 | 7.36 |
| 9.03 CREDILA 04MAR26 | 2024-09-04 | 100 | 9.11 | 9.09 |
| 8.8570 SHRIRAMFIN 02SEP27 | 2024-09-02 | 100 | 9.03 | 9.03 |
| 8.10 ABFL 07SEP29 | 2024-09-09 | 85 | 8.11 | 8.10 |
| 8.0490 ADITYA BIRLA HFL 03DEC27 | 2024-09-05 | 70 | 8.04 | 8.07 |
| 8.8871 HEROFINCORP 06OCT26 | 2024-09-06 | 57 | 8.91 | 8.90 |
| 7.26 BOB 09SEP34 | 2024-09-09 | 55 | 7.26 | 7.26 |
| 8.40 GODREJHSGFIN 05JAN28 | 2024-09-05 | 50 | 8.42 | 8.42 |
Source: Harmoney data analytics
Events This Week
September 17, Tuesday:
- US Advance Monthly Sales for Retail & Food Services for August.
- US Industrial Production and Capacity Utilization for August.
- US Manufacturing & Trade for July.
- India WPI Inflation for August.
September 18, Wednesday:
- US New Residential Construction for August.
- US Federal Reserve economic projections.
- US Interest rate decision.
- US Treasury International Capital Data for July.
- India M3 Money Supply for Sep 2 week.
September 19, Thursday:
- US International Transactions for Q2.
- US Unemployment Insurance Weekly Claims Report for Sep 14 week.
- US Weekly Export Sales.
- US Existing Home Sales for August.
September 20, Friday:
- US State Employment and Unemployment for August.
- India Bank Loan Growth for Sep 2 week.
- India FX Reserves Sep 13 week.
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