According to a report, India's private sector economy rebounded marginally in October after slowing the previous month as manufacturing reported better demand, while job creation increased at the quickest rate since February 2006. HSBC's flash India Composite Purchasing Managers' Index, compiled by S&P Global, increased to 58.6 this month from September's final reading of 58.3, a 10-month low. For 39 straight months, the index, which measures the monthly change in the combined output of India's manufacturing and service sectors, has been over the 50-point threshold that separates expansion from contraction.
Top 3 Leads Today
- India Inc Q2FY25 revenue growth seen at 5-7%, slowest in 4 years: CRISIL.
- Record defaults hit $800 billion Chinese municipal debt market
- Cabinet OKs setting up of ₹10-billion VC fund for space sector start-ups.
Indian Markets
- Money Markets Minute: The call rate closed above the RBI's repo rate of 6.50%, driven by banks' demand for funds following goods and services tax outflows. The one-day call money rate settled at 6.65%, slightly lower than Wednesday's 6.70%. Meanwhile, the weighted average call rate stood at 6.68%, up from 6.65% on Wednesday.
- Government Bond Brief: Yields closed with mixed results amid opposing influences. A fall in US Treasury yields during the day supported bond prices. The yield on the 10-year benchmark 7.10%, 2034 bond remained steady at 6.82%, unchanged from Wednesday. Turnover came in at ₹380.80 billion, down from ₹492.85 billion the previous day.
- Corporate Bond Beat: The secondary market for corporate bonds saw slightly lower activity, with yields remaining stable across maturities as investors turned their attention to the primary market. Two government-backed entities successfully raised funds through bond issuances. Transactions on the exchanges totalled ₹81.13 billion, compared with ₹79.23 billion on Wednesday.
- Forex Flash: The rupee ended flat against the dollar in subdued trading, as market participants remained cautious ahead of the release of the US Purchasing Managers' Index. The Indian currency traded within a narrow range of less than 3 paise, ultimately closing at 84.0775 per dollar, slightly higher than Wednesday's record low of 84.0800 per dollar.
- Stocks Spotlight: Benchmark indices closed slightly lower, with sharp declines in select fast-moving consumer goods and mining stocks partially offset by banking stock gains. The Sensex settled at 80,065.16, down by 0.02%, while the Nifty 50 ended at 24,399.40, slipping 0.15%
International Markets
- US Stocks: The Nasdaq and S&P 500 both rose on Thursday, boosted by Tesla's upbeat earnings estimate and a drop in Treasury yields from a three-month high, which lifted market confidence despite dips in corporate results. Tesla shares rose 21.9% after reporting strong third-quarter profitability and a 20% to 30% sales growth projection for next year. The Dow dipped 0.33% to 42,374.36, the S&P 500 gained 0.21% to 5,809.86, and the Nasdaq rose 0.76% to 18,415.49.
- Treasuries: Yields declined from their three-month highs.. The benchmark treasury yields had risen in the last two weeks, in part because both presidential contenders in the US want to spend money, increasing the debt. An increase in the deficit will likely demand more government debt, and greater government debt issuance will undoubtedly put upward pressure on yields. The 10-year Treasury yield fell to 4.20% on Thursday after reaching a three-month high of 4.26% the previous day.
- Currency: The dollar declined after rising to a nearly three-month high against the euro and yen as data indicated slower Federal Reserve rate cuts. Initial jobless claims fell to 227,000, below economists' estimate of 242,000, while continuing claims surged to an almost three-year high. After three straight advances, the dollar index lost 0.37% to 104.05, while the euro rose 0.39% to $1.0823 after hitting an almost four-month low of $1.076 on Wednesday.
Trading Trends
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 25, Friday:
- US Advance report on durable goods for September.
- India FX Reserves for Oct 18 week.
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