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Indian Economic Update
WPI inflation softened to 8.39% in October from 10.7% in September. The deceleration is broad-based with food inflation, fuel and manufactured... products

CPI inflation eased to 6.77% YoY in October (our est. 6.80%) vs. 7.41% in September while Core inflation remains entrenched at 6% YoY, with most items witnessing no let-up in momentum

Reports suggest that the Finance Ministry would likely allocate Rs250 billion further towards MNREGS for FY23, taking the total BE for FY23 to Rs980 billion

RBI Governor Mr. Shaktikanta Das said that India's strong economic fundamentals and stable financial sector will make it the fastest growing major economy, clocking 7% growth in FY23. On concerns related to RBI using the Forex reserves indiscriminately, he added that the reserves are being accumulated for 'rainy days' and are very comfortable even at this point

The Centre received Rs38.4 billion from the disinvestment process of Axis Bank’s shares, taking the total proceeds from divestment in FY23 to Rs283.8 billion

According to the official sources, the Commerce Ministry is in talks with the Finance Ministry, to address fresh payment issues with Russia involving Indian exporters.

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Global Update
US President Joe Biden has promised that there will be no "new Cold War" with China, following a conciliatory meeting with Chinese President Xi Jinping. ...The US said that the two sides would resume cooperation on issues including Climate Change and Food Security

Federal Reserve Vice Chair for Supervision, Michael Barr cautioned that the US economy would take a hit as the Central Bank confronts high inflation

To bring the fiscal balances in check, the UK Chancellor put together a GBP 55 billion combination of tax hikes and spending cuts. However, he delayed the period of austerity to a two year period

The Chinese government laid out plans to financial institutions on Friday to rescue the property sector, while also issuing a sweeping set of measures recalibrating the Covid-19 Zero Strategy.

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Equity
Benchmark indices opened lower this week, tracking a mixed Asian equity market. The gains were limited as hawkish comments by the US Fed members weighed on the sentiment....

During the week Sensex lost 0.21% to close at 61663.48 while Nifty declined 0.23% to close at 18307.65

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Debt
Government Bond prices opened lower on the back of elevated UST yields and investors were waiting for domestic headline CPI print. During the week, ...CPI inflation came in line with expectations, which aided the market sentiment.

The 10Y benchmark yield ended at 7.31% same as compared to previous week.

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Oil
Oil prices were trading in a lower territory as the fundamentals in the oil complex continue to be clouded by concerns of a potential recession-driven ... downturn. OPEC further trimmed its global oil demand growth forecast for 2022 and 2023. Investors continue to fret about resurgent Covid-19 outbreaks, in top crude importer China.

Brent was trading at $ 89.67 on November 18, at 15:46 IST

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Gold
Gold prices traded lower this week, investors reassessed the outlook for US rates, following mixed signals from the Fed. However, gold prices remain supported ...as investors begin pricing-in smaller hikes in the federal funds rate.

Gold was trading at $ 1764.28 Per Ounce on November 18, at 15:46 IST

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Currency
The pair started trading higher as the greenback remained strong against major currencies.The hawkish comments by the Fed member are supporting the demand ...for the greenback. The pair took cues from domestic and US economic data. RBI intervention is expected to curb any sharp volatility in the pair.

USD/INR was trading at 81.69 on November 18, at 15:46 IST

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Sensex
61663.48
-0.21%
During the week Sensex lost 0.21% to close at 61663.48 while Nifty declined 0.23% to close at 18307.65
 
Bond Yields
7.31%
0 bps
The 10Y benchmark yield ended at 7.31% same as compared to previous week.
 
Source: ICICI Bank Research, Private Banking Investment Strategy Team, Bloomberg and CRISIL.
Disclaimer: The information set out herein has been prepared by ICICI Bank in good faith and from sources deemed reliable. ICICI Bank does not provide any assurance as regards the accuracy of such information. ICICI Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any direct or indirect loss / claim/ damage caused to any person, arising out of or in relation to the use of information communicated herein.