The Modi government introduced the One Nation, One Election Bill in the Lok Sabha on Tuesday, with 269 members backing the move and 198 opposing it. Aimed at synchronizing Lok Sabha and state Assembly elections, the Bill sparked objections from the Opposition INDIA bloc, which argued a two-thirds majority was needed, though procedural rules suggest otherwise. Union Home Minister Amit Shah and Parliamentary Affairs Minister Arjun Ram Meghwal assured that the Bill would undergo scrutiny by a joint parliamentary committee.
Top 3 Leads Today
- Indian companies raised $5.50 billion via overseas debt in October vs $4.84 billion in September.
- Banks mobilise ₹8 trillion via Certificates of Deposits issuance in '25 so far.
- SEBI releases draft on platform for tracing inactive, unclaimed MF folios.
Indian Markets
- Money Markets Minute: The call rate fell to 5.75% on Tuesday down from 6.70% the previous day as banks met their funding needs early, which reduced demand for funds in the latter part of the session. However, the weighted average call rate rose to 6.83%, indicating higher borrowing costs earlier in the day.
- Government Bond Brief: Yields inched higher on Tuesday, following a rise in US Treasury yields, as traders awaited the FOMC's policy decision and interest rate decision due Thursday. The 10-year benchmark 6.79%, 2034 bond ended at a yield of 6.76%, up from 6.74% on Monday, with turnover rising to ₹278.10 billion from ₹204.90 billion in the previous session.
- Corporate Bond Beat: Yields on corporate bonds remained steady across tenures in the secondary market on Tuesday, as trading activity focused on the primary market. The total volume of deals amounted to ₹115.85 billion on the exchanges, significantly higher than ₹55.22 billion recorded on Monday.
- Forex Flash: The rupee closed at a record low on Tuesday, weighed down by downward pressure after India's trade deficit for November surged to an all-time high of $37.84 billion. The currency settled at 84.8950 per dollar, slipping further from its previous close of 84.8625 per dollar on Monday.
- Stocks Spotlight: Indices extended losses for the second consecutive session on Tuesday, driven by broad-based selling across sectors, including auto, financials, metals, and oil & gas. The market opened on a weak note and witnessed intensified profit booking throughout the day, pulling the Nifty close to 24,300 as investors remained cautious ahead of the Federal Reserve's decision on December 18. By the closing bell, the Sensex had fallen 1.30% to settle at 80,684.45, while the Nifty slipped 1.35% to 24,336.
International Markets
- US Stocks: Benchmark indices fell on Tuesday, with the Dow down for the ninth straight session, as investors remained cautious ahead of the Federal Reserve's final policy statement of the year. This followed economic data, which showed that consumer spending stayed strong. Investors were mostly focused on the Fed's policy decision on Wednesday, with a 25-basis point interest rate drop already fully priced in. The Dow sank 0.61% to 43,449.90, the S&P 500 fell 0.39% to 6,050.61, and the Nasdaq dropped 0.32% to 20,109.06.
- Treasuries: Yields remained stable ahead of what is expected to be a "hawkish cut" by the US central bank. The Federal Open Market Committee began its two-day monetary policy meeting on Tuesday, with a 25 basis-point decrease to the Fed funds target rate expected on Wednesday. The yield on the benchmark 10-year note eased slightly to 4.395%, down from 4.399% on Monday, while the 30-year bond yield fell 2.6 basis points to 4.5837% from 4.61%.
- Currency: The dollar edged higher on Tuesday against a basket of currencies, supported by strong retail sales data that highlighted economic momentum and reinforced expectations of a slower pace of Fed easing next year. The dollar index rose 0.18% to 106.98, while the euro slipped 0.22% to $1.0487, and the dollar weakened 0.42% against the yen to 153.51.
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 | 220 | 841 | 2258 | 2586 | - |
| NBFC | 458 | 776 | 84 | 465 | 33 |
| Private Sector Bank | 576 | 20 | 54 | 51 | - |
| Telecom | - | 255 | 120 | 50 | - |
| Housing Finance Company | 10 | 201 | 159 | 8 | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 9.35 TELANGANA STATE INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED 31DEC2027 | 2024-12-06 | 644 | 9.41 | 9.66 |
| 7.23 DME DEVELOPMENT LIMITED 11DEC2034 | 2024-12-11 | 300 | 7.36 | 7.36 |
| 7.92 INDIA INFRADEBT LIMITED 06JUN2030 | 2024-12-06 | 273 | 7.93 | 7.90 |
| 9.35 TELANGANA STATE INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED 31DEC2030 | 2024-12-06 | 243 | 9.47 | 8.90 |
| 9.35 TELANGANA STATE INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED 31DEC2029 | 2024-12-06 | 235 | 9.48 | 9.13 |
| 7.69 LIC 11DEC26 | 2024-12-12 | 200 | 7.69 | 7.69 |
| 9.35 TELANGANA STATE INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED 24NOV2034 | 2024-12-06 | 162 | 9.65 | 9.67 |
| 9.35 TELANGANA STATE INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED 30DEC2033 | 2024-12-06 | 149 | 9.66 | 9.67 |
| 9.35 TELANGANA STATE INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED 29DEC2028 | 2024-12-06 | 145 | 9.65 | 9.66 |
| 7.78 SUNDARAM HOME FINANCE 02FEB28 | 2024-12-02 | 140 | 7.79 | 7.79 |
| 9.35 TELANGANA STATE INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED 31DEC2032 | 2024-12-06 | 140 | 9.64 | 9.67 |
| 9.80 IIFL FINANCE - C 03DEC26 M | 2024-12-03 | 136 | 10.64 | 10.16 |
| 9.35 TELANGANA STATE INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED 31DEC2031 | 2024-12-06 | 130 | 9.67 | 9.67 |
| 11.25 INDEL MONEY 06APR26 | 2024-12-06 | 120 | 12.47 | 13.09 |
| 7.7215 BAJAJ FIN 26MAR27 | 2024-12-10 | 115 | 7.75 | 7.75 |
| 10.97 HELLA INFRA MARKET LIMITED 06JUN2026 | 2024-12-06 | 80 | 14.76 | 17.58 |
| 7.93 NIIF 05DEC30 | 2024-12-02 | 67 | 7.92 | 7.93 |
| 8.92 CHOLA 02DEC34 | 2024-12-02 | 50 | 8.91 | 8.91 |
Source: Harmoney data analytics
Events This Week
December 18, Wednesday:
- US International Transactions for Q3.
- US New Residential Construction for November.
- US Federal Reserve economic projections.
- US Interest rate decision.
December 19, Thursday:
- US 3rd estimate GDP for Q3.
- US Revised Corporate Profits for Q3.
- US Unemployment Insurance Weekly Claims Report for Dec 14 week.
- US Weekly Export Sales.
- US Existing Home Sales for November.
December 20, Friday:
- US State Quarterly Personal Income for Q3.
- US GDP by State for Q3.
- US State Employment and Unemployment for November.
- India FX Reserves for Dec 9 week.
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