In June, the Central and state governments collected ₹1.74 trillion in GST receipts, a 7.74% rise from the previous year. GST receipts for May were ₹1.73 trillion. GST income for May and June, which reflect transactions in the first two months of FY25, was expected to fall from April's highs. Due to year-end sales, companies' sales fell.
Top 3 Leads Today
- India's gross GST collection up 7.7% to ₹1.74 trillion in June.
- Car sales stay on growth track in H1 despite poll, heatwave roadblocks.
- Higher demand pushes hiring up as manufacturing PMI touches 58.3 in June
Indian Markets
- Money Markets Minute: The call money rate ended near the RBI's standing deposit facility rate of 6.25% as banks' demand for funds eased towards the end of trade, despite tight liquidity. The one-day call money rate closed at 6.24%, compared to 5.50% for two-day loans on Saturday.
- Government Bond Brief: Government bonds recovered most of their losses as traders took advantage of attractive prices, breaking the day's monotonous trading pattern. An overnight rise in US Treasury yields had kept bond prices down for most of the day. The 10-year benchmark 7.10% 2034 bond ended with a 7.01% yield.
- Corporate Bond Beat: On the first day of the September quarter, corporate bond yields in the secondary market remained steady due to a lack of major triggers, low trading volumes, and limited participation. Similarly, sovereign bonds showed little movement on the second day after Indian gilts were included in the JP Morgan Government Bond Index–Emerging Markets, as foreign investors stayed on the sidelines due to the absence of significant domestic cues.
- Forex Flash: The rupee settled slightly lower after trading in a narrow range due to dollar purchases by banks for importers. It moved within a 10 paise range and closed at 83.4375 per dollar, down from 83.3825 on Friday.
- Stocks Spotlight: Gains in IT stocks and large private banks boosted domestic benchmark indices to record highs. Positive global cues, with US inflation data meeting expectations, fuelled hopes for lower interest rates later this year. The Nifty 50 and Sensex each closed 0.6% higher at 24,141.95 points and 79,476.19 points, respectively.
International Markets
- US Stocks: Tech companies lifted the Nasdaq index on Monday, while the Dow and S&P 500 also gained in pre-holiday trade. The Nasdaq rose 0.8%, the Dow 0.13%, and the S&P 500 0.27%. Apple, Microsoft, and Amazon stocks rose over 2% on Monday. Thursday is the US Independence Day, therefore markets will be closed.
- Treasuries: The benchmark 10-year treasury yield rose 13 basis points to 4.477%. This spike is their highest since late May. After Sunday's first round of voting in France's national election, Marine Le Pen's National Rally received fewer votes than expected, yields rose. The debate performance of US President Joe Biden last week may be pushing investors to bet more on former President Donald Trump winning in November.
- Currency: The US dollar soared to a 38-year high versus the yen on Monday as long-term bond yields jumped swiftly, alerting investors to Bank of Japan currency intervention. The dollar was weak against the euro after the French extreme right's historic first-round parliamentary election success went unanticipated.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Macro Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| NBFC | 1928 | 1370 | 208 | 214 | 70 |
| Financial Institution | 50 | 350 | 495 | 79 | - |
| Housing Finance Company | 145 | 54 | 71 | 129 | - |
| Public Sector Bank | - | 8 | - | 10 | 930 |
| Diversified | 540 | 100 | - | - | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Traded Volume(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 7.36 SBI 27JUN39 | 2024-06-27 | 930.00 | 7.36 | 7.36 |
| 11.00 GMR INFRA PROJECTS PRIVATE LIMITED 26JUN2026 CALL 26JUN2027 MAT | 2024-06-26 | 600.00 | 15.67 | 15.71 |
| 8.07 NIIF 23AUG29 | 2024-06-21 | 430.00 | 8.07 | 8.07 |
| 8.05 TATA CAPITAL HFL 18JUN29 | 2024-06-18 | 285.00 | 8.05 | 8.04 |
| 10.25 AYEFINANCE 20MAR26 | 2024-06-20 | 220.82 | 11.41 | 10.65 |
| 9.10 SHRIRAMFIN 20JUN34 | 2024-06-20 | 184.00 | 9.11 | 9.15 |
| 8.35 AXISFIN 23JUN34 | 2024-06-24 | 180.00 | 8.36 | 8.35 |
| 7.41 IIFCL 26JUN39 | 2024-06-26 | 160.00 | 7.39 | 7.39 |
| 8.12 KMPL 21JUN27 | 2024-06-21 | 150.00 | 8.12 | 8.12 |
| 8.64 CHOLAINVFIN 26JUN29 | 2024-06-26 | 105.00 | 8.64 | 8.63 |
| 9.25 SKFL 19JUN27 C 19SEP27 M | 2024-06-19 | 100.00 | 9.75 | 9.75 |
| 10.20 KRAZYBEESERVICES 19DEC25 | 2024-06-19 | 97.60 | 11.27 | 13.00 |
| 7.44 IREDALTD 25AUG34 | 2024-06-25 | 75.00 | 7.44 | 7.44 |
| 10.50 NAVIFIN 18JUN27 | 2024-06-18 | 50.15 | 11.15 | 10.76 |
Source: Harmoney data analytics
Events This Week
July 2, Tuesday:
- US Domestic Auto Industry Sales for June.
July 3, Wednesday:
- US International Trade in Goods & Services for May.
- US Unemployment Insurance Weekly Claims Report for Jun 29 week.
- US Services PMI for June.
- US EIA Weekly Petroleum Status Report for Jun 28 week.
- US Global Services PMI for June.
- US financial markets close early for Independence Day.
- US Federal Open Market Committee meeting minutes and economic forecast.
- India Services and Composite PMI for June.
July 4, Thursday:
- US Independence Day. Financial markets closed
July 5, Friday:
- US Employment Report for June.
- US Weekly Export Sales.
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