KEY HIGHLIGHTS:-

The 10yr government bond yield increased 0.86% to 6.600 from 6.544 in the previous week.US 10yr benchmark increased approximately  7.21% to 2.202 from previous week level of 2.054.

The G-sec yields ended higher this week. The new 10 year benchmark, 6.79% G-sec maturing in 2027, ended at 6.5985% while the old 10 year benchmark, 6.97% maturing in 2026, ended at 6.8321%

Consumer prices in India increased 3.36% y-o-y in August2017 above the market expectations of 3.2%.Wholesale prices in India rose 3.24% y-o-y in August 2017 above the market estimate of 3%.The country’s foreign exchange reserves increased to $40073 million on Sept8 from previous week level of $39812 million.

Rupee closed at 64.14 per dollar vs previous week close of 63.785 per dollar. Gold trades at Rs29925/10gms, silver at Rs40360/kg. Gold prices fell as record highs for key US stock market indexes lured investors away from the precious metal. Crude oil ended at $49.83 per barrel this week. Crude oil prices rose this week as IEA has revised upwards the demand growth this year by 1,00,000 barrels per day.

FIIs stood net buyers in domestic debt market this week with net investment of Rs 1632.85cr compared to Rs 2359.15cr last week.

On the global front, no. of Americans filing for unemployment benefits unexpectedly fell by 14000 to 284 thousand in the week ended Sept 9, well below market expectations of 300 thousand.

FII/FPI IN DEBT MARKET

DATE PURCHASES     SALES       NET(cr)
As on 15th Sept 4116.67 2483.82 1632.85
As on 8th Sept 5344.75 2985.6 2359.15

GLOBAL INDICES

INDEX As on 15th September As on 8th September %Chg
S&P BSE SENSEX 32272.61 31687.52 1.85%
NIFTY 50 10085.4 9934.8 1.52%
NASDAQ 6429.08 6397.87 0.49%
FTSE 100 7199.98 7367.18 -2.27%

POLICY RATES

INSTRUMENT                                     Rate
Policy Repo Rate 6.00%
Reverse Repo Rate 5.75%
MSFR 6.25%
Bank Rate 6.25%
CRR 4.00%
SLR 20.00%

EXCHANGE RATES

RATE As on 15th September As on 8th September %Chg
INR/$ 64.14 63.785 0.56%
EUR/INR 76.5665 76.765 -0.26%
GBP/INR 87.144 84.186 3.51%
JPY/INR 0.5786 0.5914 -2.16%

MACRO DATA

PARTICULARS CURRENT PREVIOUS
FOREIGN EXCHANGE RESERVES(08/SEP) $400.73B $398.12B
Inflation Rate 3.36% 2.36%
WPI Inflation 3.24% 1.88%

DOMESTIC INDICATORS

INSTRUMENT As on

15th September

As on

8th September

10 yr bond yield 6.600 6.544
1yr bond yield 6.298 6.28
3yr bond yield 6.41 6.383
US 10 yr benchmark yield 2.202 2.054

G-SEC YIELDS

Securities Maturity 15th Sept 8th Sept
06.35 GS 2020 02/01/2020 6.3657% 6.3350%
07.68 GS 2023 15/12/2023 6.7023% 6.6404%
07.35 GS 2024 22/06/2024 6.7939% 6.7202%
07.59 GS 2026 11/01/2026 6.9118% 6.8463%
08.60 GS 2028 02/06/2028 7.0759% 6.915%

COMMODITY

INSTRUMENTS As on 15th September As on 8th September %Chg
CRUDE OIL 49.83 47.56 4.77%
GOLD 29925 30388 -1.52%
SILVER 40360 41097 -1.79%

 

Recommended Tax Free Bonds

Bond Name Maturity Coupon LTP YTM Volume(in 000’s) Rating
NTPC N6 16 DEC 33 8.91% 1352.9 6.11% 0.311 AAA
NHAI N8 11 JAN 26 7.39% 1105.1 6.30% 1.901 AAA
REC N9 24 SEP 28 8.71% 1269.94 6.18% 0.475 AAA/STABLE
HUDCO 13 JAN 34 9.01% 1345.55 6.21% 0.012 AAA

Recommended Taxable Bonds

Bond Name Maturity Coupon LTP YTM Volume(in 000’s) Rating
IIHFL N2 02 APR 20 12.00% 1090 12.41% 0.228 AA-
DHFCL NP 09 SEP 23 9.25% 1038.06 10.56% 0.318 AAA
DHFCL  NN 09 SEP 21 9.15% 1010 11.88% 0.02 AAA
ECL FIN N5 26 APR 20 12.00% 1084.84 12.62% 0.1 AA/STABLE

 


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