The Financial Action Task Force, a worldwide anti-money laundering agency, has advised India to expedite the prosecution process in money laundering cases and complete procedures on time. Most of the material used by the Enforcement Directorate to identify potential money laundering cases comes from open-source sources such as media stories, social media comments, tip offs, and complaints, according to the FATF's most recent mutual evaluation report for India, released on Thursday. It also provided data in this regard, stating that open-source platforms led to the detection of 84 money laundering cases in 2018-19, 249 in 2019-20, 447 in 2020-21, 548 in 2021-22, and 605 in 2022–October 2023.
Top 3 Leads Today
- S&P Global projects India to become 3rd largest economy by FY31.
- India's HDFC Bank to close $1 billion loan sale this month.
- Bank of England keeps main rate on hold at 5% in wake of US Fed cut.
Indian Markets
- Money Markets Minute: The one-day call money rate closed at 6.60%, above the RBI's 6.50% repo rate, due to strong demand from banks as liquidity tightened in the banking system. For two-day loans, the rate was 6.75% on Tuesday, while the weighted average call rate remained steady at 6.65%.
- Government Bond Brief: Bond yields fell initially but they retraced some of their fall as traders created space for this weekly gilt auction. The 10-year benchmark 7.10%, 2034 bond ended at 6.76%, down from 6.78% on Tuesday. Turnover surged to ₹1.06 trillion, compared with ₹527.90 billion the previous day, per RBI data.
- Corporate Bond Beat: Yields on five-year corporate bonds dropped 5-6 bps in the secondary market after the US Fed cut rates by 50 bps to 4.75-5.00%. Transactions totalled ₹60.04 billion, up from ₹47.39 billion on Tuesday.
- Forex Flash: The 50 basis point rate cut by the US Federal Reserve on Wednesday pushed the rupee to a two-month high. It briefly reached 83.5600 per dollar before settling at 83.6800, up from Tuesday's close of 83.7500.
- Stocks Spotlight: The Nifty 50 and Sensex reached new all-time highs, driven by foreign investments and expectations of RBI monetary easing in October. The Nifty 50 closed 0.2% higher at 25,415.80, while the Sensex gained 0.3%, closing at a record 83,184.80.
International Markets
- US Stocks: On Thursday, the S&P 500 and the Dow Jones index hit a record high after the Federal Reserve slashed interest rates by 50 basis points and signalled future cuts. Major shares that have benefited from this year's market rally achieved additional gains, with Tesla rising by over 7%, and both Apple and Meta Platforms rising by nearly 4%. S&P 500 closed at 5,713.64, up 1.70%, its highest closing ever. The Nasdaq jumped 2.51% to 18,013.98 points and the Dow Jones was up 1.26% to 42,025.19, crossing 42000 for the first time.
- Treasuries: Yields rose across the curve, particularly at the longer end on underlying concerns about inflation and easier financial conditions, and because the Federal Reserve marginally revised up its long-run outlook for the fed funds rate. The yield on rate-sensitive 2-year treasuries increased 3.8 basis points to 3.6297%, up from 3.592% Tuesday. The yield on benchmark 10-year notes jumped 6.6 basis points to 3.708% from 3.642% Tuesday.
- Currency: The US dollar fell in choppy trade on Wednesday as markets dealt with the Federal Reserve's massive 50 basis point interest rate cut and its shift to an easing monetary policy stance. The dollar index, which measures the greenback against a basket of six peers, fell 0.38% to 100.64, reversing early gains. It fell to its lowest point in over a year, 100.21, in the previous session. The euro strengthened 0.4% to $1.1163.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| NBFC | 1343 | 1700 | 698 | 670 | 51 |
| Financial Institution | 260 | 277 | 2524 | 857 | 10 |
| Public Sector Bank | - | 9 | - | 672 | 185 |
| Housing Finance Company | - | 283 | 360 | 217 | - |
| Investment Company | 30 | 539 | 2 | 100 | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 9.65 ADANIENTLTD 09SEP27 | 2024-09-09 | 545 | 9.74 | 9.61 |
| 7.45 AXISBANK 05SEP34 | 2024-09-05 | 490 | 7.44 | 7.36 |
| 7.24 INDIAN BANK 13SEP34 | 2024-09-13 | 250 | 7.23 | 7.22 |
| 7.26 BOB 09SEP34 | 2024-09-09 | 180 | 7.24 | 7.22 |
| 9.03 CREDILA 04MAR26 | 2024-09-04 | 160 | 9.10 | 9.09 |
| 8.22 TATACAPITAL 13SEP34 | 2024-09-13 | 130 | 8.24 | 8.20 |
| 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 |
| 8.0490 ADITYA BIRLA HFL 03DEC27 | 2024-09-05 | 120 | 8.05 | 8.07 |
| 8.10 ABFL 07SEP29 | 2024-09-09 | 85 | 8.11 | 8.10 |
| 9.90 ADANIENTLTD 12SEP29 | 2024-09-12 | 75 | 10.05 | 9.89 |
| 8.8871 HEROFINCORP 06OCT26 | 2024-09-06 | 57 | 8.91 | 8.90 |
| 8.40 GODREJHSGFIN 05JAN28 | 2024-09-05 | 50 | 8.42 | 8.42 |
Source: Harmoney data analytics
Events This Week
September 20, Friday:
- US State Employment and Unemployment for August.
- India Bank Loan Growth for Sep 2 week.
- India FX Reserves Sep 13 week.
For any inquiries or assistance related to market data, please reach out to us at support@harmoney.in