The collection of GST in July witnessed a significant increase of 10.3%, surpassing ₹1.82 trillion. This growth can be attributed to the strong performance of domestic transactions in goods and services, as per the official data released on Thursday. Since the indirect tax regime began on July 1, 2017, this is the third-highest monthly collection. The net GST collection, after accounting for refunds, exceeded ₹1.66 trillion, reflecting a growth of 14.4%.
Top 3 Leads Today
- India Manufacturing PMI eases to 58.1 in July from 58.3 in June.
- India risks being stuck in 'middle-income trap', says World Bank.
- UPI clocks ₹20 trillion for the third straight month in July.
Indian Markets
- Money Markets Minute: The call money market ended below the Reserve Bank of India's repo rate of 6.50% as bank demand for funds eased due to a significant liquidity surplus in the banking system. The one-day call money rate closed at 5.90%, down from 6.50% on Wednesday. The weighted average call rate was 6.47%, compared to 6.49% on Wednesday.
- Government Bond Brief: The benchmark Indian government bond yield fell to a 28-month low on Thursday after the US Federal Reserve's dovish comments. The 10-year benchmark 7.10% 2034 bond closed at a 6.92% yield, down from 6.93% on Wednesday. Turnover was ₹631.85 billion, compared to ₹713.95 billion on Wednesday.
- Corporate Bond Beat: Yields on corporate bonds remained steady across tenures in the secondary market as volumes stayed low due to a lack of firm domestic cues. Trade volumes were tepid, with deals totalling ₹57.78 billion recorded on exchanges, up from ₹42.35 billion on Wednesday.
- Forex Flash: The rupee ended steady against the dollar, after rising to a one-week high, as banks bought dollars on behalf of importers. The Reserve Bank of India sold dollars to limit the rupee's decline. The rupee settled at 83.7175 per dollar, moving within a range of less than 11 paise. It opened slightly higher at 83.6775 per dollar compared to Wednesday's close of 83.7200 per dollar.
- Stocks Spotlight: The equity market extended gains for the fifth consecutive session, reaching new intra-day and closing highs, driven by US rate-cut optimism. Both the Nifty 50 and Sensex hit record highs in pre-open trade after the US Federal Open Market Committee's meeting outcome bolstered hopes for a September rate cut. The Nifty 50 crossed the significant 25,000-point level after a week of near-approaches. The Nifty 50 and Sensex each closed 0.2% higher at 25,010.90 points and 81,867.55 points, respectively.
International Markets
- US Stocks: Benchmark indices ended lower after Thursday's economic data raised concerns that the economy may be deteriorating quicker than expected while the Federal Reserve continues a restrictive monetary policy. The latest data showed a decline in manufacturing activity, reaching its lowest point in eight months in July at 46.8, indicating a contraction. The Dow Jones slid 1.21%, to 40,347.97, the S&P 500 lost 1.37%, to 5,446.68, and the Nasdaq was down 2.30%, to 17,194.15.
- Treasuries: Treasury yields fell in response to the weak data, with two-year to 10-year note yields falling to six-month lows around 4%. The manufacturing PMI dropped to its lowest level since November, indicating contraction in a sector that accounts for more than 10% of the economy, and new unemployment claims rose to an 11-month high last week, suggesting labour market softening. The benchmark 10-year treasury yield fell13.3 basis points to 3.972% from 4.105% on Wednesday.
- Currency: The dollar strengthened on Thursday as escalating geopolitical tensions fuelled a safe-haven rally. Concerns of a worsening Middle East confrontation grew after Hamas leader Ismail Haniyeh was slain in Tehran, Iran, on Wednesday morning, prompting threats of vengeance against Israel. The dollar index rose 0.34% to 104.40. The euro experienced a 0.35% decline, reaching $1.0787.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| NBFC | 207 | 983 | 505 | 372 | 8 |
| Financial Institution | 401 | 175 | 725 | 100 | 65 |
| Housing Finance Company | 4 | 33 | 97 | 305 | 35 |
| Private Sector Bank | 100 | 106 | 3 | 78 | - |
| Diversified | 200 | - | - | 25 | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 7.54 BOI 19JUL34 | 2024-07-19 | 940.00 | 7.55 | 7.55 |
| 8.00 TATAIND 21JUL25 C 17JUL26 M | 2024-07-19 | 659.50 | 7.95 | 7.92 |
| 7.40 CANARA BANK 19JUL34 | 2024-07-19 | 600.00 | 7.39 | 7.38 |
| 8.01 TATACAPITAL 21JUL34 | 2024-07-23 | 349.00 | 8.00 | 8.00 |
| 8.60 GODREJFINLTD 25NOV27 | 2024-07-25 | 250.00 | 8.65 | 8.66 |
| 8.97 MUTHOOT FINANCE 18JAN27 | 2024-07-18 | 250.00 | 8.90 | 8.90 |
| 7.39 IREDALTD 24JUL34 C 22JUL39 M | 2024-07-24 | 130.00 | 7.38 | 7.38 |
| 8.50 CHOLAINVFIN 25JUL27 | 2024-07-25 | 110.00 | 8.49 | 8.50 |
| 9.75 INDIABULLS HOUSING 23JUL29 | 2024-07-23 | 66.01 | 11.01 | 9.72 |
Source: Harmoney data analytics
Events This Week
August 2, Friday:
- US Employment Report for July.
- India FX Reserves for Jul 22 week.
For any inquiries or assistance related to market data, please reach out to us at support@harmoney.in