On Tuesday, the International Monetary Fund maintained its growth projections for India at 7% for FY25 and 6.5% for FY26. It claimed that pent-up demand accumulated during the pandemic has been depleted as the economy "reconnects" with its potential growth. In India, GDP growth is projected to decrease from 8.2% in FY24 to 7% in FY25 and further to 6.5% in FY26.. In its recent monetary policy committee review, the RBI maintained its growth projection for the current financial year at 7.2%. It referenced strong consumption and investment activity.
Top 3 Leads Today
- Strong chance India's growth will revert to 8% trend post FY26, says RBI Patra.
- Govt gives clean chit to SEBI chief Buch; says will complete term.
- CRISIL says RBI's stringent supervision to curb gold loan growth.
Indian Markets
- Money Markets Minute: The call rate remained steady at 5.75%, unchanged from Monday, closing below the RBI's standing deposit facility rate of 6.25% due to reduced demand for funds from banks towards the end of trading. The weighted average call rate rose to 6.65%, up from 6.50% on Monday.
- Government Bond Brief: Yields ended lower after a volatile session as the 10-year US Treasury yield retreated from its highs. The earlier rise in US yields had dampened the market's optimism following government indications of a potential reduction in borrowing. The 10-year benchmark 7.10%, 2034 bond closed with a yield of 6.82%, slightly down from 6.83% on Monday. Turnover increased to ₹600.25 billion, compared with ₹474.80 billion on Monday.
- Corporate Bond Beat: Yields on three-year and five-year corporate bonds in the secondary market moved within a narrow range, with mutual funds and banks showing active interest in papers maturing in these segments. Meanwhile, yields on 10-year corporate bonds remained stable. Trading volume on the exchanges reached ₹62.65 billion, up from ₹59.13 billion on Monday.
- Forex Flash: The rupee ended at a record closing low of 84.0775 a dollar as banks purchased the greenback, likely on behalf of foreign portfolio investors withdrawing funds from the domestic equities market. After falling to the lifetime low of 84.0800 during the day, a key level the central bank has been protecting, the local currency settled at 84.0775 against the dollar, compared with 84.0725 on Monday.
- Stocks Spotlight: Markets faced extended selling pressure, impaired by weak global signals and underperformance across key sectors, leading to a sharp decline in benchmark indices. The Nifty slipped below the critical 24,500 level, reflecting broad-based weakness. The Sensex closed 1.15% down at 80,220.72, while the Nifty lost 1.25%, ending the session at 24,472.10.
International Markets
- US Stocks: The benchmark S&P 500 and Dow finished lower in volatile trade, dragged down by losses in industrials, commodities, and utilities. The Nasdaq closed higher as investors absorbed corporate earnings from corporations across the US economy. The Dow Jones Industrial Average dropped 0.02% to 42,924.89, the S&P 500 declined 0.05% to 5,851.20, and the Nasdaq Composite increased 0.18% to 18,573.13.
- Treasuries: Yields climbed on Tuesday due to market concern surrounding the US election and the potential for interest rate decreases. According to a Reuters/Ipsos survey, Democratic Vice President Kamala Harris led Republican former President Donald Trump by 46% to 43% as both candidates competed for swing states ahead of November 5 election. The benchmark 10-year Treasury rates rose 2.2 basis points to 4.204%, after touching 4.222%, the highest level since July 26.
- Currency: The US dollar surged to a new two-and-a-half-month high amid Fed rate cuts forecasts. The dollar index, which measures the dollar against a basket of currencies, increased 0.13% to 104.09, after reaching 104.10, its highest level since August 2. Compared to the Japanese yen, the dollar rose 0.21% to 151.14. Sterling fell 0.05% to $1.2978, while the euro dropped 0.17% to $1.0797.
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 11.00 GMR INFRA PROJECTS PRIVATE LIMITED 26JUN2027 | 2024-06-26 | 600.00 | 15.67 | 15.71 |
| 7.44 IREDALTD 25AUG34 | 2024-06-25 | 75.00 | 7.44 | 7.44 |
| 8.35 AXISFIN 23JUN34 | 2024-06-24 | 180.00 | 8.36 | 8.35 |
| 8.07 NIIF 23AUG29 | 2024-06-21 | 430.00 | 8.07 | 8.07 |
| 10.25 AYEFINANCE 20MAR26 | 2024-06-20 | 205.04 | 11.43 | 10.63 |
| 9.10 SHRIRAMFIN 20JUN34 | 2024-06-20 | 129.00 | 9.09 | 9.09 |
| 9.25 SKFL - C 19SEP27 M | 2024-06-19 | 100.00 | 9.75 | 9.75 |
| 10.20 KRAZYBEESERVICES 19DEC25 | 2024-06-19 | 87.60 | 11.24 | 12.60 |
| 8.05 TATA CAPITAL HFL 18JUN29 | 2024-06-18 | 285.00 | 8.05 | 8.04 |
| 7.9265 LICHSGFIN 14JUL27 | 2024-06-14 | 1060.00 | 7.93 | 7.93 |
| 7.44 IRFC 13JUN34 | 2024-06-13 | 1530.00 | 7.45 | 7.40 |
| 8.55 HDB PERP - C | 2024-06-13 | 259.00 | 8.54 | 8.54 |
| 11.40 KEERTANA 13JUN27 | 2024-06-13 | 62.05 | 13.00 | 13.53 |
| 9.95 ADANIAIRPORT 12JUN28 | 2024-06-12 | 96.51 | 9.93 | 9.78 |
| 9.16 360ONEPRIME 12JUN27 | 2024-06-12 | 75.00 | 9.67 | 9.90 |
Source: Harmoney data analytics
Events This Week
October 23, Wednesday:
- US Existing home sales for September.
- India RBI MPC meeting minutes.
October 24, Thursday:
- US Weekly export sales.
- US Unemployment insurance weekly claims report for Oct 19 week.
- US Flash Services PMI for October.
- US Flash Manufacturing PMI for October.
- US New Residential Sales for September.
- India Global manufacturing PMI for October.
- India Services PMI for October.
October 25, Friday:
- US Advance report on durable goods for September.
- India FX Reserves for Oct 18 week.
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