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Domestic Market
| Indices | Today's Close | Previous Close | Absolute Change | % Change |
|---|---|---|---|---|
| BSE SENSEX | 62,428.54 | 62,622.24 | -193.70 | -0.31 |
| Nifty 50 | 18,487.75 | 18,534.40 | -46.65 | -0.25 |
| Nifty 500 | 15,760.35 | 15,766.40 | -6.05 | -0.04 |
| Nifty Next 50 | 42,154.70 | 42,049.30 | 105.40 | 0.25 |
| S&P BSE Mid-Cap | 27,130.43 | 27,100.05 | 30.38 | 0.11 |
| BSE Smallcap | 30,711.67 | 30,524.82 | 186.85 | 0.61 |
| India VIX Index | 11.60 | 11.97 | -0.37 | -3.09 |
*Unchanged
Domestic Market News
- The combined Index of Eight Core Industries (ICI) increased by 3.5 per cent (provisional) in April 2023 as compared to the Index of April 2022. The production of Fertilizers, Steel, Cement and Coal increased in April 2023 over the corresponding month of last year. ICI measures combined and individual performance of production of eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. Final growth rate of Index of Eight Core Industries for January 2023 is recorded 9.7 per cent. The cumulative growth rate of ICI during 2022-23 reported 7.7 per cent (provisional) as compared to the corresponding period of last year.
- The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) announced the provisional Estimates (PE) of National Income for 2022-23 and Quarterly Estimates of Gross Domestic Product (GDP) for the quarter January-March of 2022-23 (Q4 2022-23). Real GDP or GDP at Constant (2011-12) Prices in the year 2022-23 is estimated to attain a level of Rs 160.06 lakh crore, as against the First Revised Estimates of GDP for the year 2021-22 of Rs 149.26 lakh crore. The growth in real GDP during 2022-23 is estimated at 7.2 per cent as compared to 9.1 per cent in 2021-22.
- The Reserve Bank of India All India HPI growth (y-o-y) inched up to 4.6 per cent in Q4:2022-23 from 2.8 per cent in the previous quarter and 1.8 per cent a year ago; the y-o-y movements in HPI varied widely across the cities - ranging from a growth of 16.3 per cent (Bengaluru) to a contraction of 8.5 per cent (Jaipur). On a sequential (q-o-q) basis, all India HPI increased by 0.6 per cent in Q4:2022-23, showing sequential increase in seven of the cities. The Reserve Bank quarterly house price index (HPI)1 (base: 2010-11=100) for Q4:2022-23, is based on transaction-level data received from the registration authorities in ten major cities (viz., Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai).
- The Reserve Bank Of India (RBI) has reported that currency in circulation contracted by 1% on the week to stand at Rs 34.41 lakh crore as on May 26, 2023. The central bank stated further that the overall reserve money also contracted by 0.90% on the week to Rs 44.21 lakh crore. Currency in circulation moved up 6.9% on a year ago basis compared to 8.7% growth at the same time last year. In the current fiscal, the currency in circulation has edged up by 1.9% so far while the reserve money has gained by 0.8%.
- The Cabinet has approved a Rs 1 lakh crore plan to create the world~s largest grain storage capacity in India in the cooperative sector through convergence of various existing schemes of the ministries of agriculture, food and public distribution and food processing industries. The plan would be implemented by utilizing the available outlays provided under certain identified schemes of all these ministries.
- The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose from 57.2 in April to 58.7 in May, indicating the strongest improvement in the health of the sector since October 2020. The factory orders increased for the twenty-third month running in May, but also to the greatest extent since January 2021.
- India~s manufacturing PMI showcased encouraging developments in May, painting a notably positive picture for the sector. Demand conditions demonstrated remarkable strength, with factory orders rising at the fastest pace since January 2021. This surge in sales paved the way for stronger increases in production, employment and quantities of purchases. With supply chain-conditions improving further, companies noted a record accumulation in input inventories. Meanwhile, cost pressures remained historically mild, but demand strength facilitated a solid and quicker increase in output charges.
International Market
| Indices | Today's Close | Previous Close | Absolute Change | % Change |
|---|---|---|---|---|
| Dow Jones | 33,098.70 | 32,907.17 | 191.53 | 0.58 |
| Nasdaq | 13,077.64 | 12,933.72 | 143.92 | 1.10 |
| FTSE 100 | 7,490.27 | 7,445.88 | 44.39 | 0.59 |
| Dax Index | 15,853.66 | 15,661.72 | 191.94 | 1.21 |
| Shanghai Composite | 3,204.64 | 3,204.56 | 0.07 | 0.00 |
| Hang Seng | 18,216.91 | 18,234.25 | -17.34 | -0.10 |
| Nikkei | 31,148.01 | 30,885.69 | 262.32 | 0.84 |
| Kospi | 2,569.17 | 2,577.10 | -7.93 | -0.31 |
*Unchanged
International Market News
- The manufacturing sector in Australia continued to contract in May, albeit at a slower rate, the latest survey from Judo Bank showed on Thursday with a manufacturing PMI score of 48.4, up from 48 in previous month but well under the boom-or-bust line of 50 that separates expansion from contraction. New orders rose in May although this series remains in contraction.
- The manufacturing sector in South Korea continued to contract in May, the latest survey from S&P Global revealed on Thursday with a manufacturing PMI score of 48.8. While this was up from 48.0, it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. South Korea~s factory activity has now contracted for an 11th consecutive month in May, witnessing its longest downtrend in 14 years. The new export orders fell for the 15th month. However, employment increased by the most since March 2022.
- Manufacturing business conditions in China improved for the first time in three months during May, according to latest PMI data. Production expanded at the quickest rate in nearly a year, supported by a fresh rise in overall new business amid reports of firmer client demand. This in turn contributed to increases in purchasing activity and stocks of inputs. At the same time, further improvements in supplier capacity helped to shorten average delivery times and ease cost pressures. Notably, input costs fell solidly in May, with firms often passing on savings to clients in the form of lower selling prices. However, business confidence around the 12-month outlook for output slipped to a seven-month low in May amid concerns over lingering global economic uncertainty.
- The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index or PMI fell to a four-month low of 47.1 in May, down from 47.8 in April but above the flash estimate of 46.9. All of the PMI components (output, new orders, employment, stocks of purchases and supplier lead times) signalled deterioration in operating performance.
- The manufacturing downturn in UK deepened in May, as rates of contraction in output, new orders and employment all accelerated. Manufacturers were hit by weak domestic market sentiment, lower new export order intakes and client destocking, which offset the tapering benefits from improving supply chains. There was better news on the costs front, however, with average input prices falling for the first time in three-and-a-half years.
- Germany~s Retail Sales in April showed a 0.8% increase compared to the previous month. On a yearly basis, retail sales declined by 4.3%, marking an improvement from the previous month~s 8.6% slump. Overall, while challenges remain, the data indicates a gradual recovery and stabilization in Germany~s retail sector.
- Germany~s manufacturing sector contracted at the fastest rate in three years in May and output fell for the first time in four months, a survey showed on Thursday. The HCOB final Purchasing Managers~ Index (PMI) for manufacturing, which accounts for about a fifth of Germany~s economy, fell to 43.2 from 44.5 in April, the fourth consecutive monthly decline and the lowest reading since 2020. The manufacturing PMI has been below the 50 level that separates growth from contraction since July 2022.
- Eurozone~s Final Manufacturing PMI fell to 36-month Low in May amid continued weak demand conditions. The manufacturing production and new orders both fall at their strongest rates in six months. Eurozone May final manufacturing PMI came in at 44.8 as against 44.6 in preliminary estimate.
- The euro area seasonally-adjusted unemployment rate was 6.5% in April, down from 6.6% in March 2023 and from 6.7% in April 2022. The EU unemployment rate was 6.0% in April 2023, stable compared with March 2023 and down from 6.1% in April 2022. These figures are published by Eurostat, the statistical office of the European Union.
- Euro area annual inflation is expected to be 6.1% in May 2023, down from 7.0% in April according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in May (12.5%, compared with 13.5% in April), followed by non-energy industrial goods (5.8%, compared with 6.2% in April), services (5.0%, compared with 5.2% in April) and energy (-1.7%, compared with 2.4% in April)
- Job openings experienced a significant increase in April, reaching 10.1 million, according to the recent report by the Labor Department. This surge suggests that job opportunities are resilient in the face of economic pressures that have raised concerns about a potential recession in the American economy. However, compared to the previous year, the labor market exhibited a less robust state, as indicated by the Job Openings and Labor Turnover Survey (JOLTS) report.
Debt Market
| Indices | Today's Close | Previous Close | Absolute Change | % Change |
|---|---|---|---|---|
| TREP | 6.32 | 6.33 | -0.01 | -0.09 |
| 3 Month CD | 7.00 | 6.97 | 0.03 | 0.43 |
| 6 Month CD | 7.23 | 7.23 | Unch* | Unch* |
| 1 year CD | 7.43 | 7.45 | -0.02 | -0.27 |
| 1 year CP | 7.55 | 7.55 | Unch* | Unch* |
| 1 year T-Bill | 6.87 | 6.88 | -0.01 | -0.15 |
| 1 year AAA (PSU) | 7.44 | 7.45 | -0.01 | -0.13 |
| 5 year AAA (PSU) | 7.40 | 7.43 | -0.03 | -0.40 |
| 10 year G-Sec | 6.98 | 6.99 | -0.01 | -0.09 |
*Unchanged
Debt Market News
- India~s fiscal deficit came in at Rs 1733131 crore or 6.4% of the gross domestic product for the last financial year compared to 6.7% in previous fiscal year.
- Total Expenditure incurred by Government of India is Rs 41,88,837 crore (100% of corresponding RE 22-23), out of which Rs 34,52,518 crore is on Revenue Account and Rs 7,36,319 crore is on Capital Account. Out of the Total Revenue Expenditure, Rs 9,28,424 crore is on account of Interest Payments and Rs 5,30,959 crore is on account of Major Subsidies.
- The Government of India has received Rs 24,55,706 crore (101% of corresponding RE 2022-23 of Total Receipts) during 2022-23 comprising Rs 20,97,368 crore Tax Revenue (Net to Centre), Rs 2,86,151 crore of Non-Tax Revenue and Rs 72,187 crore of Non-Debt Capital Receipts. Non-Debt Capital Receipts consists of Recovery of Loans (Rs 26,152 crore) and Miscellaneous Capital Receipts (Rs 46,035 crore). Rs 9,48,406 crore has been transferred to State Governments as Devolution of Share of Taxes by Government of India upto this period which is Rs 50,015 crore higher than the previous year.
- The benchmark 10-year 7.26% G-sec 2033 bond yield quotes at 6.98% - holding near one year low.
- The benchmark 10-year 7.26% G-sec 2033 bond yield stayed under 7% mark.
Commodity
| Commodity | Last | % Change |
|---|---|---|
| Gold (10 gm) | 60630 | 1.00 |
| Crude Oil (Rs/barrel) | 7679 | 0.23 |
Commodity News
- U.S. crude oil inventories rose by about 5.2 million barrels while gasoline inventories posted a build of about 1.9 million barrels last week, according to market sources citing American Petroleum Institute (API) figures on Wednesday. WTI crude futures are quoting at $68.37 per barrel, up 0.41% on the day.
- COMEX Gold futures approached near a two week high of $1993 per ounce but flipped back amid some corrective selling as traders eyed at the developments on the US debt front. The US House of Representatives has approved a deal to allow the US to borrow more money. The deal was passed the chamber by an overwhelming vote of 314-117. The US Senate must now vote on the bill and clear it this week as the government is forecast to hit its borrowing limit on Monday 5 June.
Currency Exchange Rates
| Currency | Rate |
|---|---|
| USD/INR | 82.68 |
| EUR/INR | 88.36 |
| 100JPY/INR | 59.30 |
| GBP/INR | 102.38 |
Currency News
- EURUSD regained $1.07, up 0.17% on the day. For the month of May, the pair has lost more than 3%. The European unit has been heavily battered since the beginning of May as risk aversion mounted faith in dollar sending it above 104 mark. EURINR recovered to 88.40 after having hit a low of 88.48 earlier in the day and as compared to previous close at 88.60.
- Euro is seen gaining some respite against the dollar after Euro area unemployment rate edged down to 6.5% in April 2023, the lowest rate on record and down from 6.6% in March 2023 and from 6.7% in April 2022.
- The INR currently quotes at 82.42 per US dollar, up 32 paise on the day. INR hit near two week high with this spurt.
- Latest data showed that the recovery in the economy is being backed up by private consumption, which showed a 2.8 per cent growth during the fourth quarter and a 7.5 per cent growth in FY23, as a percentage of GDP stood at a 16-year high in 2022-23.
- The Indian Rupee saw excellent gains amid supportive economic growth data.
- The 10-year US treasury yield currently quotes at 3.67%- testing around two week low.
Global Interest Rates
| Global Interest Rates | % |
|---|---|
| LIBOR 3 Months | 5.52 |
| US Treasury 2 Years | 4.33 |
| US Treasury 10 Years | 3.61 |
| Germany 10 year | 2.25 |
| Uk 10 Year | 4.12 |
| Japan 10 year | 0.42 |
Fll Trends
| Fill Numbers | US ($) million |
|---|---|
| FII Debt | -12.63 |
| FII Equity | 464.15 |
Liquidity
| Liquidity | % |
|---|---|
| Repo | 6.50 |
| Reverse Repo | 3.35 |
| CRR | 4.50 |
| SLR | 18.00 |
Corporate Yields Matrix
| Tenors | AAA | AA+ | AA | AA- | A+ | A | A- |
|---|---|---|---|---|---|---|---|
| 3 Month CD | 7.10 | 7.39 | 7.65 | 8.62 | 9.07 | 9.85 | 10.62 |
| 6 Month CD | 7.28 | 7.56 | 7.83 | 8.80 | 9.25 | 10.03 | 10.80 |
| 1 Year | 7.48 | 7.77 | 8.04 | 8.82 | 9.27 | 10.05 | 10.82 |
| 2 Year | 7.51 | 7.83 | 8.11 | 8.57 | 9.02 | 9.80 | 10.57 |
| 3 Year | 7.52 | 7.87 | 8.15 | 8.69 | 9.14 | 9.92 | 10.69 |
| 5 Year | 7.49 | 7.88 | 8.13 | 8.61 | 9.06 | 9.84 | 10.61 |
| 7 Year | 7.51 | 7.90 | 8.15 | 8.63 | 9.08 | 9.86 | 10.63 |
| 10 Year | 7.59 | 7.99 | 8.27 | 8.81 | 9.26 | 10.03 | 10.81 |
Investment Jargon
- Depositary Receipt A depositary receipt is a negotiable financial instrument issued by a bank to represent a foreign companys publicly traded securities.
Investment Mantra
- How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case. –Robert G. Allen
Disclaimer:
The information contained in this material are extracted from different public sources and does not represent views/opinions of Kotak Mahindra Asset Management Company Limited or its associated companies. Kotak Mahindra Asset Management Co Ltd. does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. All reasonable care has been taken to ensure that the information contained herein is not misleading or untrue at the time of publication. This is not a sales literature and all the information is for the information of the person to whom it is provided without any liability whatsoever on the part of Kotak Mahindra Asset Management Co Ltd or any associated companies or any employee thereof.
Risk Factors:
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
As on May 31, 2023
As on May 31, 2023
Domestic Market
| Indices | Today's Close | Previous Close | Absolute Change | % Change |
|---|---|---|---|---|
| BSE SENSEX | 62,428.54 | 62,622.24 | -193.7 | -0.31 |
| Nifty 50 | 18,487.75 | 18,534.40 | -46.65 | -0.25 |
| Nifty 500 | 15,760.35 | 15,766.40 | -6.05 | -0.04 |
| Nifty Next 50 | 42,154.70 | 42,049.30 | 105.4 | 0.25 |
| S&P BSE Mid-Cap | 27,130.43 | 27,100.05 | 30.38 | 0.11 |
| BSE Smallcap | 30,711.67 | 30,524.82 | 186.85 | 0.61 |
| India VIX Index | 11.60 | 11.97 | -0.37 | -3.09 |
*Unchanged
Domestic Market News
- The combined Index of Eight Core Industries (ICI) increased by 3.5 per cent (provisional) in April 2023 as compared to the Index of April 2022. The production of Fertilizers, Steel, Cement and Coal increased in April 2023 over the corresponding month of last year. ICI measures combined and individual performance of production of eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. Final growth rate of Index of Eight Core Industries for January 2023 is recorded 9.7 per cent. The cumulative growth rate of ICI during 2022-23 reported 7.7 per cent (provisional) as compared to the corresponding period of last year.
- The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) announced the provisional Estimates (PE) of National Income for 2022-23 and Quarterly Estimates of Gross Domestic Product (GDP) for the quarter January-March of 2022-23 (Q4 2022-23). Real GDP or GDP at Constant (2011-12) Prices in the year 2022-23 is estimated to attain a level of Rs 160.06 lakh crore, as against the First Revised Estimates of GDP for the year 2021-22 of Rs 149.26 lakh crore. The growth in real GDP during 2022-23 is estimated at 7.2 per cent as compared to 9.1 per cent in 2021-22.
- The Reserve Bank of India All India HPI growth (y-o-y) inched up to 4.6 per cent in Q4:2022-23 from 2.8 per cent in the previous quarter and 1.8 per cent a year ago; the y-o-y movements in HPI varied widely across the cities - ranging from a growth of 16.3 per cent (Bengaluru) to a contraction of 8.5 per cent (Jaipur). On a sequential (q-o-q) basis, all India HPI increased by 0.6 per cent in Q4:2022-23, showing sequential increase in seven of the cities. The Reserve Bank quarterly house price index (HPI)1 (base: 2010-11=100) for Q4:2022-23, is based on transaction-level data received from the registration authorities in ten major cities (viz., Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai).
- The Reserve Bank Of India (RBI) has reported that currency in circulation contracted by 1% on the week to stand at Rs 34.41 lakh crore as on May 26, 2023. The central bank stated further that the overall reserve money also contracted by 0.90% on the week to Rs 44.21 lakh crore. Currency in circulation moved up 6.9% on a year ago basis compared to 8.7% growth at the same time last year. In the current fiscal, the currency in circulation has edged up by 1.9% so far while the reserve money has gained by 0.8%.
- The Cabinet has approved a Rs 1 lakh crore plan to create the world~s largest grain storage capacity in India in the cooperative sector through convergence of various existing schemes of the ministries of agriculture, food and public distribution and food processing industries. The plan would be implemented by utilizing the available outlays provided under certain identified schemes of all these ministries.
- The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose from 57.2 in April to 58.7 in May, indicating the strongest improvement in the health of the sector since October 2020. The factory orders increased for the twenty-third month running in May, but also to the greatest extent since January 2021.
- India~s manufacturing PMI showcased encouraging developments in May, painting a notably positive picture for the sector. Demand conditions demonstrated remarkable strength, with factory orders rising at the fastest pace since January 2021. This surge in sales paved the way for stronger increases in production, employment and quantities of purchases. With supply chain-conditions improving further, companies noted a record accumulation in input inventories. Meanwhile, cost pressures remained historically mild, but demand strength facilitated a solid and quicker increase in output charges.
International Market
| Indices | Today's Close | Previous Close | Absolute Change | % Change |
|---|---|---|---|---|
| Dow Jones | 33,098.70 | 32,907.17 | 191.532 | 0.58 |
| Nasdaq | 13,077.64 | 12,933.72 | 143.917 | 1.10 |
| FTSE 100 | 7,490.27 | 7,445.88 | 44.392 | 0.59 |
| Dax Index | 15,853.66 | 15,661.72 | 191.936 | 1.21 |
| Shanghai Composite | 3,204.64 | 3,204.56 | 0.071 | 0.00 |
| Hang Seng | 18,216.91 | 18,234.25 | -17.343 | -0.10 |
| Nikkei | 31,148.01 | 30,885.69 | 262.321 | 0.84 |
| Kospi | 2,569.17 | 2,577.10 | -7.925 | -0.31 |
*Unchanged
International Market News
- The manufacturing sector in Australia continued to contract in May, albeit at a slower rate, the latest survey from Judo Bank showed on Thursday with a manufacturing PMI score of 48.4, up from 48 in previous month but well under the boom-or-bust line of 50 that separates expansion from contraction. New orders rose in May although this series remains in contraction.
- The manufacturing sector in South Korea continued to contract in May, the latest survey from S&P Global revealed on Thursday with a manufacturing PMI score of 48.8. While this was up from 48.0, it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. South Korea~s factory activity has now contracted for an 11th consecutive month in May, witnessing its longest downtrend in 14 years. The new export orders fell for the 15th month. However, employment increased by the most since March 2022.
- Manufacturing business conditions in China improved for the first time in three months during May, according to latest PMI data. Production expanded at the quickest rate in nearly a year, supported by a fresh rise in overall new business amid reports of firmer client demand. This in turn contributed to increases in purchasing activity and stocks of inputs. At the same time, further improvements in supplier capacity helped to shorten average delivery times and ease cost pressures. Notably, input costs fell solidly in May, with firms often passing on savings to clients in the form of lower selling prices. However, business confidence around the 12-month outlook for output slipped to a seven-month low in May amid concerns over lingering global economic uncertainty.
- The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index or PMI fell to a four-month low of 47.1 in May, down from 47.8 in April but above the flash estimate of 46.9. All of the PMI components (output, new orders, employment, stocks of purchases and supplier lead times) signalled deterioration in operating performance.
- The manufacturing downturn in UK deepened in May, as rates of contraction in output, new orders and employment all accelerated. Manufacturers were hit by weak domestic market sentiment, lower new export order intakes and client destocking, which offset the tapering benefits from improving supply chains. There was better news on the costs front, however, with average input prices falling for the first time in three-and-a-half years.
- Germany~s Retail Sales in April showed a 0.8% increase compared to the previous month. On a yearly basis, retail sales declined by 4.3%, marking an improvement from the previous month~s 8.6% slump. Overall, while challenges remain, the data indicates a gradual recovery and stabilization in Germany~s retail sector.
- Germany~s manufacturing sector contracted at the fastest rate in three years in May and output fell for the first time in four months, a survey showed on Thursday. The HCOB final Purchasing Managers~ Index (PMI) for manufacturing, which accounts for about a fifth of Germany~s economy, fell to 43.2 from 44.5 in April, the fourth consecutive monthly decline and the lowest reading since 2020. The manufacturing PMI has been below the 50 level that separates growth from contraction since July 2022.
- Eurozone~s Final Manufacturing PMI fell to 36-month Low in May amid continued weak demand conditions. The manufacturing production and new orders both fall at their strongest rates in six months. Eurozone May final manufacturing PMI came in at 44.8 as against 44.6 in preliminary estimate.
- The euro area seasonally-adjusted unemployment rate was 6.5% in April, down from 6.6% in March 2023 and from 6.7% in April 2022. The EU unemployment rate was 6.0% in April 2023, stable compared with March 2023 and down from 6.1% in April 2022. These figures are published by Eurostat, the statistical office of the European Union.
- Euro area annual inflation is expected to be 6.1% in May 2023, down from 7.0% in April according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in May (12.5%, compared with 13.5% in April), followed by non-energy industrial goods (5.8%, compared with 6.2% in April), services (5.0%, compared with 5.2% in April) and energy (-1.7%, compared with 2.4% in April)
- Job openings experienced a significant increase in April, reaching 10.1 million, according to the recent report by the Labor Department. This surge suggests that job opportunities are resilient in the face of economic pressures that have raised concerns about a potential recession in the American economy. However, compared to the previous year, the labor market exhibited a less robust state, as indicated by the Job Openings and Labor Turnover Survey (JOLTS) report.
Debt Market
| Indices | Today's Close | Previous Close | Absolute Change | % Change |
|---|---|---|---|---|
| TREP | 6.32 | 6.33 | -0.01 | -0.09 |
| 3 Month CD | 7.00 | 6.97 | 0.03 | 0.43 |
| 6 Month CD | 7.23 | 7.23 | Unch* | Unch* |
| 1 year CD | 7.43 | 7.45 | -0.02 | -0.27 |
| 1 year CP | 7.55 | 7.55 | Unch* | Unch* |
| 1 year T-Bill | 6.87 | 6.88 | -0.01 | -0.15 |
| 1 year AAA (PSU) | 7.44 | 7.45 | -0.01 | -0.13 |
| 5 year AAA (PSU) | 7.40 | 7.43 | -0.03 | -0.40 |
| 10 year G-Sec | 6.98 | 6.99 | -0.01 | -0.09 |
*Unchanged
Debt Market News
- India~s fiscal deficit came in at Rs 1733131 crore or 6.4% of the gross domestic product for the last financial year compared to 6.7% in previous fiscal year.
- Total Expenditure incurred by Government of India is Rs 41,88,837 crore (100% of corresponding RE 22-23), out of which Rs 34,52,518 crore is on Revenue Account and Rs 7,36,319 crore is on Capital Account. Out of the Total Revenue Expenditure, Rs 9,28,424 crore is on account of Interest Payments and Rs 5,30,959 crore is on account of Major Subsidies.
- The Government of India has received Rs 24,55,706 crore (101% of corresponding RE 2022-23 of Total Receipts) during 2022-23 comprising Rs 20,97,368 crore Tax Revenue (Net to Centre), Rs 2,86,151 crore of Non-Tax Revenue and Rs 72,187 crore of Non-Debt Capital Receipts. Non-Debt Capital Receipts consists of Recovery of Loans (Rs 26,152 crore) and Miscellaneous Capital Receipts (Rs 46,035 crore). Rs 9,48,406 crore has been transferred to State Governments as Devolution of Share of Taxes by Government of India upto this period which is Rs 50,015 crore higher than the previous year.
- The benchmark 10-year 7.26% G-sec 2033 bond yield quotes at 6.98% - holding near one year low.
- The benchmark 10-year 7.26% G-sec 2033 bond yield stayed under 7% mark.
Commodity
| Commodity | Last | % Change |
|---|---|---|
| Gold (10 gm) | 60,630.00 | 1.00 |
| Crude Oil (Rs/barrel) | 7,679.00 | 0.23 |
*Unchanged
Commodity News
- U.S. crude oil inventories rose by about 5.2 million barrels while gasoline inventories posted a build of about 1.9 million barrels last week, according to market sources citing American Petroleum Institute (API) figures on Wednesday. WTI crude futures are quoting at $68.37 per barrel, up 0.41% on the day.
- COMEX Gold futures approached near a two week high of $1993 per ounce but flipped back amid some corrective selling as traders eyed at the developments on the US debt front. The US House of Representatives has approved a deal to allow the US to borrow more money. The deal was passed the chamber by an overwhelming vote of 314-117. The US Senate must now vote on the bill and clear it this week as the government is forecast to hit its borrowing limit on Monday 5 June.
Currency Exchange Rates
| Currency | Rate |
|---|---|
| USD/INR | 82.46 |
| EUR/INR | 88.07 |
| 100JPY/INR | 59.02 |
| GBP/INR | 102.56 |
Currency News
- EURUSD regained $1.07, up 0.17% on the day. For the month of May, the pair has lost more than 3%. The European unit has been heavily battered since the beginning of May as risk aversion mounted faith in dollar sending it above 104 mark. EURINR recovered to 88.40 after having hit a low of 88.48 earlier in the day and as compared to previous close at 88.60.
- Euro is seen gaining some respite against the dollar after Euro area unemployment rate edged down to 6.5% in April 2023, the lowest rate on record and down from 6.6% in March 2023 and from 6.7% in April 2022.
- The INR currently quotes at 82.42 per US dollar, up 32 paise on the day. INR hit near two week high with this spurt.
- Latest data showed that the recovery in the economy is being backed up by private consumption, which showed a 2.8 per cent growth during the fourth quarter and a 7.5 per cent growth in FY23, as a percentage of GDP stood at a 16-year high in 2022-23.
- The Indian Rupee saw excellent gains amid supportive economic growth data.
- The 10-year US treasury yield currently quotes at 3.67%- testing around two week low.
Global Interest Rates
| Global Interest Rates | % |
|---|---|
| LIBOR 3 Months | 5.52 |
| US Treasury 2 Years | 4.33 |
| US Treasury 10 Years | 3.61 |
| Germany 10 year | 2.25 |
| Uk 10 Year | 4.12 |
| Japan 10 year | 0.42 |
Fll Trends
| Fll Numbers | US ($) million |
|---|---|
| FII Debt | -12.63 |
| FII Equity | 464.15 |
Liquidity
| Liquidity | % |
|---|---|
| Repo | 6.50 |
| Reverse Repo | 3.35 |
| CRR | 4.50 |
| SLR | 18.00 |
Corporate Yields Matrix
| Tenors | AAA | AA+ | AA | AA- | A+ | A | A- |
|---|---|---|---|---|---|---|---|
| 3 Month CD | 7.10 | 7.39 | 7.65 | 8.62 | 9.07 | 9.85 | 10.62 |
| 6 Month CD | 7.28 | 7.56 | 7.83 | 8.80 | 9.25 | 10.03 | 10.80 |
| 1 Year | 7.48 | 7.77 | 8.04 | 8.82 | 9.27 | 10.05 | 10.82 |
| 2 Year | 7.51 | 7.83 | 8.11 | 8.57 | 9.02 | 9.80 | 10.57 |
| 3 Year | 7.52 | 7.87 | 8.15 | 8.69 | 9.14 | 9.92 | 10.69 |
| 5 Year | 7.49 | 7.88 | 8.13 | 8.61 | 9.06 | 9.84 | 10.61 |
| 7 Year | 7.51 | 7.90 | 8.15 | 8.63 | 9.08 | 9.86 | 10.63 |
| 10 Year | 7.59 | 7.99 | 8.27 | 8.81 | 9.26 | 10.03 | 10.81 |
Investment Jargon
- Depositary Receipt A depositary receipt is a negotiable financial instrument issued by a bank to represent a foreign companys publicly traded securities.
Investment Mantra
- How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case. –Robert G. Allen
Disclaimer:
The information contained in this material are extracted from different public sources and does not represent views/opinions of Kotak Mahindra Asset Management Company Limited or its associated companies. Kotak Mahindra Asset Management Co Ltd. does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. All reasonable care has been taken to ensure that the information contained herein is not misleading or untrue at the time of publication. This is not a sales literature and all the information is for the information of the person to whom it is provided without any liability whatsoever on the part of Kotak Mahindra Asset Management Co Ltd or any associated companies or any employee thereof.
