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| Indian Economic Update
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Formal job creation under the Employees’ Provident Fund Organisation (EPFO) increased 18.2% YoY in October with the addition ...of 1.53 million net new subscribers
India will be the world’s largest recipient of remittances with inflows likely to increase 12.4% to USD 125 billion in 2023 or 3.4% of GDP, according to World Bank’s report
There is a very low risk of India encountering stagflation as inflation in India is more influenced by supply-side factors like spikes in commodity prices along with tighter financial conditions and relatively higher depreciation of the Rupee, according to RBI Bulletin
The disparity between the richest and poorest states has reduced over the last three years, with the per capita income of Indian states ranging from ₹ 54,111 to ₹ 519,964 in FY23 compared with ₹ 42,083 to ₹ 431,351 in FY21, showed Government data
The National Highway Authority of India has surpassed its monetisation target of ₹ 100 billion for FY24 with an award of highway contracts under the Toll, Operate and Transfer (TOT) bundles 13 and 14
According to the Ministry of Finance, over 74 million persons filed for Income Tax Returns in FY23, of which 51.6 million showed zero tax liability
The National Pension System added 19% fewer new subscribers under the corporate segment in the H1FY24, led by the higher exemption limit of Income Tax at ₹ 0.7 million, as per the Ministry of Statistics and Programme Implementation (MOSPI).
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| Global Update
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Chinese banks kept the Loan Prime Lending Rate unchanged with the one-year rate kept at 3.45% and the five-year rate kept at ...4.2%.
The downturn in Euro Zone business activity surprisingly deepened in December, according to closely watched surveys which indicated that the bloc's economy is almost certainly in recession
US 30-year Mortgage Rate fell to the lowest level since June 2023, moving to 6.83%.
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| Equity
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The week started with benchmark equity indices trading higher, following the Asian and US markets. During the week, indices ...witnessed FIIs as net sellers and DIIs as net buyers. Indices corrected from an all-time high as anticipated, however, recovered from lows towards the end of the week.
During the week Sensex declined 0.53% to close at 71106.96 while Nifty lost 0.5% to close at 21349.4
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| Debt
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Government Bond Yields opened lower, following UST. Given MPC’s guidance, a sharp upside in yields is unlikely to take place. ...The Government will auction ₹ 100 billion of the 7.18% of 2037-Maturity Bonds. Some response to that auction is likely in the near term.
The 10Y benchmark G-Sec was trading at a yield of 7.19% on 22 Dec, 2023 at 15:45 IST
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| Oil
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Oil prices continue to trade higher, underpinned by fears of supply disruptions as Houthi militants in Yemen stepped up ... attacks on ships in the Red Sea, forcing shippers to divert vessels. Investors focus on further developments in the Red Sea and its impact on Brent supply.
Brent was trading at $79.98 on 22 Dec, 2023 at 16:18 IST
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| Gold
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Gold prices traded higher, led by a softer USD. Prices are expected to respond to the Fed-preferred core PCE price index. US real... yield movements are expected to remain the prominent driver of gold prices in the near term.
Gold was trading at $2067.3 Per Ounce on 22 Dec, 2023 at 16:19 IST
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| Currency
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USD/INR pair traded aligning with the DXY. Despite upward pressure on the Rupee from rising oil prices, losses are mitigated by a ...decline in the dollar index. Investors will closely monitor developments in the Red Sea, particularly related to oil shipments.
USD/INR was trading at 83.16 on 22 Dec, 2023 at 16:19 IST
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| Sensex |
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During the week Sensex declined 0.53% to close at 71106.96 while Nifty lost 0.5% to close at 21349.4
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| Bond Yields |
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The 10Y benchmark G-Sec was trading at a yield of 7.19% on 22 Dec, 2023 at 15:45 IST
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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.
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