Six days before the important meeting of the interest rate-setting body, the government on Tuesday named three external members to the Reserve Bank of India's reconfigured Monetary Policy Committee. The three external members are Delhi School of Economics Director Ram Singh, economist Saugata Bhattacharya, and Nagesh Kumar, director and CEO of the Institute for Studies in Industrial Development. They will succeed outgoing external members Jayanth Varma, Ashima Goyal, and Shashank Bhide. The RBI Act prohibits the reappointment of external members.
Top 3 Leads Today
- India CPI-IW inflation rises to 2.44% in August from 2.15% July.
- Sebi's six-step measures seen making a dent in F&O volumes by up to 40%.
- GNPA ratio to improve to decadal best of 2.5% in FY25: Crisil report.
Indian Markets
Financial Markets were closed on Wednesday for Gandhi Jayanti.
- Money Markets Minute: The call money rate settled at 5.75% for two-day loans on Tuesday, down from 6.24% for one-day loans on Monday.
- Government Bond Brief: The 10-year benchmark 7.10%, 2034 gilt closed at 6.73% on Tuesday, down from 6.75% on Monday.
- Corporate Bond Beat: Secondary market volumes were subdued, and yields were steady, with deals totalling ₹39.76 billion on Tuesday, down from ₹43.58 billion on Monday.
- Forex Flash: The rupee remained steady at 83.82 against the dollar on Tuesday.
- Stocks Spotlight: On Tuesday, Nifty 50 closed 0.1% lower at 25,796.90 points, while the Sensex slipped 0.04% to 84,266.29 points.
International Markets
- US Stocks: Technology stocks rose on Wednesday, but investors worried about West Asia tensions. Nvidia's stock increased 1.6%, contributing to the S&P 500 technology index's rise. However, Tesla shares slid 3.5% as the electric manufacturer revealed lower-than-expected third-quarter vehicle deliveries. Investors kept an eye on West Asia news after Israel and the US promised to retaliate for Iran's attacks on Israel on Tuesday. The US president stated on Wednesday that he would not back any Israeli strike on Iran's nuclear sites in response attack and urged Israel to act "proportionally." On Wednesday, all three major indexes rose: Dow 0.09%, S&P 500 0.01%, and Nasdaq 0.08%.
- Treasuries: Longer-term US Treasury yields climbed after data showed a solid labour market, but investors watched West Asia crisis. Private payrolls climbed by 143,000 jobs last month, up from an upwardly revised 103,000 in August, according to the ADP National Employment Report released on Wednesday. The yield on benchmark US 10-year notes gained 4 basis points to 3.783% from 3.743% Tuesday, while the 30-year bond yield rose 4.9 basis points to 4.1299%.
- Currency: The dollar rose to a three-week high against the euro on Wednesday as the ADP national employment report revealed that US private payrolls expanded more than expected in September. Traders are also watching geopolitical tensions after Iran attacked Israel, raising concerns the oil-producing West Asia could explode in war. The dollar index surged 0.42% to 101.68, its best level since September 11, while the euro sank 0.27% to $1.1037, its lowest since the same date.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| NBFC | 1237 | 1507 | 422 | 544 | - |
| Housing Finance Company | 475 | 801 | 521 | 670 | 35 |
| Financial Institution | 620 | 755 | 255 | 131 | - |
| Private Sector Bank | 50 | 50 | 1 | 433 | - |
| Investment Company | 32 | 25 | 16 | 116 | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Trades Since Issue(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 7.65 LIC HOUSING 19AUG31 | 2024-09-19 | 1906 | 7.62 | 7.56 |
| 7.33 SBI 20SEP34 C 20SEP39 M | 2024-09-20 | 1075 | 7.31 | 7.31 |
| 7.85 TATA POWER RENEWABLE 19SEP34 | 2024-09-19 | 900 | 7.84 | 7.80 |
| 13.83 SHREM AJANTA INFRASTRUCTURE PRIVATE LIMITED 26SEP2027 | 2024-09-26 | 486 | 13.83 | 13.83 |
| 0% CYQURE INDIA PRIVATE LIMITED 17MAR2028 | 2024-09-17 | 432 | 14.30 | 14.50 |
| 7.86 TCHFL 21SEP29 | 2024-09-23 | 375 | 7.83 | 7.74 |
| 8.40 CHOLAINVFIN 18SEP27 | 2024-09-18 | 320 | 8.40 | 8.39 |
| 7.95 ICICI HFL 20DEC27 | 2024-09-19 | 195 | 7.98 | 7.98 |
| 8.01 M&MFINSERV 24DEC27 | 2024-09-26 | 100 | 8.02 | 8.02 |
| 7.49 BOI 26SEP29 C 26SEP34 M | 2024-09-26 | 92 | 7.54 | 7.48 |
| 9.90 SAMMAAN CAPITAL LIMITED 25SEP2027 | 2024-09-25 | 75 | 10.10 | 9.90 |
| 9.50 INCRED 18SEP26 | 2024-09-19 | 64 | 9.90 | 9.73 |
| 7.94 ICICI HFL 19SEP29 | 2024-09-19 | 60 | 7.93 | 7.93 |
| 8.45 GODREJHSGFIN 18SEP29 | 2024-09-18 | 50 | 8.44 | 8.45 |
Source: Harmoney data analytics
Events This Week
October 3, Thursday:
- US Unemployment insurance weekly claims report for Sep 28 week.
- US Weekly Export sales.
- US Services PMI for September.
- US Manufacturers' Shipments, Inventories & Orders for August.
- US Global Services PMI for September.
October 4, Friday:
- US Employment report for September.
- India Composite PMI for September.
- India Bank loan growth for Sep 20 week.
- India Deposit growth for Sep 20 week.
- India FX reserves for Sep 27 week.
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