Federal Reserve Chairman Jerome Powell said something similar to what his
counterpart has said at the RBI: strong economic conditions are allowing the central bank to go after inflation for a longer period. “Because the US economy is strong and the labour market is strong, we have the ability to take our time and get this right,” Powell said. “And that’s what we’re planning to do.”
Top 3 Leads Today
- RBI proposes rationalising regulations on export, import transactions.
- Kotak Mahindra says Hindenburg was not an investor in its fund.
- Hindenburg received SEBI show-cause notice for violating Indian regulations.
Indian Markets
- Money Markets Minute: The call money rate ended below the RBI's repo rate of 6.50% due to surplus liquidity in the banking system. The one-day call money rate finished at 6.45%, up from 6.24% on Monday.
- Government Bond Brief: Government bond yields were flat due to lack of significant cues. There was good appetite for bonds in early trade, but it waned quickly. The 10-year closed flat at 7.01%.
- Corporate Bond Beat: Corporate bond yields remained steady as secondary
market activity was limited due to a lack of domestic cues. Only mutual funds and banks were active, engaging in requirement-based trading, while other
market players stayed on the sidelines. - Forex Flash: The rupee settled slightly lower due to dollar purchases by banks for importers, though dollar sales by exporters limited the decline. The rupee ended at 83.5050 today, compared to 83.4375 on Monday.
- Stocks Spotlight: Indices paused their bull run, closing slightly lower. Banking and finance stocks fell due to profit booking. Concerns over non banking financial company margins, and a sell-off in Kotak Mahindra Bank after a Hindenburg report weighed down stocks. The Nifty 50 hit a record 24,236.35 points at market open but closed 0.1% lower at 24,123.85 points. The Sensex ended marginally lower at 79,441.45 points.
International Markets
- US Stocks: The benchmark indices gained on Tuesday led by Tesla and other large-cap growth stocks. However, trading volumes were modest ahead of the US Independence Day holiday on Thursday. The U.S. job openings and labour turnover survey, rose in May after two months of falls. Layoffs increased as economic activity slowed. The Dow rose 0.41%, the S&P 0.62%, and the Nasdaq 0.84% on Tuesday.
- Treasuries: The 10-year treasury yield were marginally down on Tuesday after job market report and Federal Reserve Chair Jerome Powell's statements about interest-rate cuts. At a European Central Bank-supported monetary policy conference in Portugal, Powell called the US "disinflationary path" and added that he would wait for few more data to confirm that recent inflation figures reflect the economy before cutting rates. The US Job openings rose by 221,000 to 8.140 million in May.
- Currency: The dollar was down in thin, volatile trade on Tuesday as Federal Reserve Chair Jerome Powell indicated that the central bank may begin its easing cycle in the coming months. The dollar index, which compares the US dollar to six others, fell 0.1% to 105.71.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Sector | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| NBFC | 615 | 1824 | 548 | 241 | 111 |
| Financial Institution | 60 | 325 | 992 | 55 | |
| Private Sector Bank | 155 | 342 | 599 | ||
| Public Sector Bank | 8 | 50 | 715 | ||
| Housing Finance Company | 150 | 76 | 356 | 29 |
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 | 1645.00 | 7.36 | 7.36 |
| 11.00 GMR INFRA 26JUN26 CALL | 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 | 246.34 | 11.44 | 11.95 |
| 8.64 CHOLAINVFIN 26JUN29 | 2024-06-26 | 205.20 | 8.63 | 8.63 |
| 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 |
| 7.93 TATA POWER RENEWABLE 26JUN34 | 2024-06-26 | 150.00 | 7.92 | 7.92 |
| 10.20 KRAZYBEESERVICES 19DEC25 | 2024-06-19 | 104.50 | 11.37 | 13.00 |
| 9.25 SKFL 19JUN27 C 19SEP27 M | 2024-06-19 | 100.00 | 9.75 | 9.75 |
| 7.44 IREDALTD 25AUG34 | 2024-06-25 | 75.00 | 7.44 | 7.44 |
| 8.12 SUNDARAM FINANCE 21JUN27 | 2024-06-21 | 65.00 | 8.11 | 8.10 |
| 10.50 NAVIFIN 18JUN27 | 2024-06-18 | 56.85 | 11.15 | 11.52 |
| 10.01 AKARA 21DEC25 | 2024-06-21 | 55.31 | 13.40 | 14.50 |
Source: Harmoney data analytics
Events This Week
July 3, Wednesday:
- US Services PMI for June.
- 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.
For any inquiries or assistance related to market data, please reach out to us at support@harmoney.in