According to the Reserve Bank of India's most recent figures, loan growth in the fortnight ending November 15 slowed to 11.15% year on year, while deposit growth marginally outperformed credit growth, hitting 11.21% year on year. According to data, outstanding deposits in the fortnight ending November 15 was ₹218.54 trillion, while outstanding credit was ₹173.62 trillion. In the preceding fortnight, outstanding deposits totalled ₹220.27 trillion, while outstanding credit was ₹174.37 trillion. Both loan disbursement and deposit mobilisation fell throughout the reporting fortnight.
Top 3 Leads Today
- SBI's business may hit Rs 100 trillion in FY26, says Chairman CS Setty.
- India eyeing customs pact with Japan, S Africa, more nations, says CBIC head.
- See no near-term tariff hike by telcos; postpaid plans to drive ARPU - Fitch.
Indian Markets
- Money Markets Minute: The call rate closed near the RBI’s marginal standing facility rate of 6.75%, reflecting strong demand for funds from banks amid a liquidity deficit. The one-day call money rate settled at 6.70%, slightly lower than Thursday’s close of 6.75%. The weighted average call money rate remained steady at 6.71%, staying above the RBI's repo rate.
- Government Bond Brief: Yields edged slightly lower, tracking an overnight fall in US Treasury yields. However, gains were partially trimmed as traders placed short bets ahead of the ₹300-billion gilt auction on Friday. The 10-year benchmark 6.79% 2034 bond closed at a 6.80% yield, down from 6.81% on Thursday. Market turnover rose to ₹355.65 billion from ₹307.60 billion the previous day.
- Corporate Bond Beat: Corporate bond yields held steady as secondary market activity remained muted in the absence of fresh global or domestic triggers. Trading was largely driven by mutual funds and banks engaged in requirement-based transactions, while other market participants stayed on the sidelines. Trading volumes rose, with deals worth ₹110 billion recorded on exchanges, compared with ₹88.14 billion on Thursday.
- Forex Flash: The rupee ended mostly unchanged against the dollar in subdued trade, as the RBI’s consistent dollar sales offset banks' purchases for foreign portfolio investors and importers. After briefly matching its all-time low of 84.5000 per dollar, last seen on Friday, the rupee closed at 84.4850 per dollar, slightly weaker than Thursday’s close of 84.4525.
- Stocks Spotlight: Benchmark indices Sensex and Nifty experienced a sharp selloff, tumbling nearly 1.5% in their steepest single-day decline in nearly two months. The downturn was driven by weak global cues, profit-booking ahead of the monthly F&O expiry, and sector-specific pressures, particularly in IT and auto stocks. The BSE Sensex closed at 79,044, while the Nifty ended at 23,914.
International Markets
- US Stocks: On Thursday, markets were closed for the Thanksgiving holiday.
- Treasuries: On Thursday, markets were closed for the Thanksgiving holiday.
- Currency: On Thursday, traders reduced expectations on future European Central Bank interest rate cuts, lowering the euro against the dollar. The US holiday-thinned activity was modest. The euro fell 0.2% to $1.055 after Wednesday's big surge after European Central Bank board member Isabel Schnabel's hawkish comments. The dollar index rose to 106.21 after falling to 105.85, a two-week low.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| Private Sector Bank | 61 | - | 18 | 2613 | - |
| Financial Institution | 785 | 874 | 530 | 112 | - |
| NBFC | 856 | 616 | 159 | 274 | 21 |
| Telecom | 200 | 350 | - | 132 | - |
| Housing Finance Company | 10 | 240 | 140 | 99 | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 7.23 SBI 19NOV39 | 2024-11-19 | 1325 | 7.22 | 7.23 |
| 7.15 IRFC 14NOV39 | 2024-11-13 | 445 | 7.15 | 7.16 |
| 8.25 GIC HOUSING 19JUN26 | 2024-11-21 | 200 | 8.33 | 8.34 |
| 11.00 GMR INFRA PROJECTS PRIVATE LIMITED 13NOV2027 | 2024-11-13 | 200 | 15.93 | 15.94 |
| 10.20 CLIX CAPITAL 18MAR27 | 2024-11-19 | 143 | 10.72 | 10.98 |
| 10.00 MUTHOOT CAPITAL 20NOV26 | 2024-11-21 | 93 | 10.71 | 10.47 |
| 9.50 HERO FINCORP PERP 25MAY35 C | 2024-11-25 | 75 | 9.36 | 0.00 |
| 9.90 IKF FINANCE LIMITED 15MAR2027 | 2024-11-13 | 60 | 11.00 | 11.00 |
| 7.70 SUNDARAM HOME FINANCE 21DEC29 | 2024-11-21 | 50 | 7.70 | 7.70 |
Source: Harmoney data analytics
Events This Week
November 29, Friday:
- US Weekly export sales.
- US Financial markets close early after Thanksgiving.
- India Federal Fiscal Deficit for October.
- India Bank Loan Growth for Nov 11 week.
- India FX Reserves Nov 18 week.
- India Gross Domestic Product Quarterly for Q3.
- India Infrastructure Output for October.
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