KEY HIGHLIGHTS:-

The 10 yr government bond yield increased 1.29% to 7.047 from 6.957 in the previous week.US 10 yr benchmark decreased approximately 2.37% to 2.345 from previous week level of 2.402.

The G-sec yields ended higher this week. The new 10 year benchmark, 6.79% G-sec maturing in 2027, ended at 7.0488% while the old 10 year benchmark, 6.97% maturing in 2026, ended at 7.1617%

The country’s foreign exchange reserves increased to $399290 million in Nov 10 from previous week level of $398740 million. Consumer prices in India increased 3.58% y-o-y in Oct 2017, above 3.28% in Sept and market expectations of 3.46%.Wholesale prices in India rose 3.59% y-o-y in Oct 2017 compared to previous month level of 2.60%.

Rupee closed at 64.94 per dollar vs previous week close of 65.19 per dollar.Rupee strengthened against US dollar after Moody’s upgraded the country’s sovereign rating. Gold trades at Rs.29390/10 gms, silver at Rs.39316/kg.Crude oil ended at $56.55 per barrel this week. Crude prices fell this week pressured by rising US output data and doubts that Russia would support an extension of OPEC output cut deal.

FIIs stood net sellers in domestic debt market this week with net investment of Rs -708.55 cr compared to last week with net investment of Rs -2839.6 cr.

International rating agency Moody’s Investors Service has upgraded India’s sovereign rating to Baa2 from Baa3 and changed the outlook from positive to stable.Moody’s believes that the reforms implemented to-date will advance the government’s objective of improving the business climate, enhancing productivity, stimulating foreign and domestic investment, and ultimately fostering strong and sustainable growth.

 

FII/FPI  IN DEBT MARKET

DATE PURCHASES SALES NET(cr)
As on 17thNov 5733.62 6442.17 -708.55
As on 10thNov 6452.16 9291.76 -2839.6

 
Weekly debt (13th - 17th Nov 2017)

GLOBAL INDICES

INDEX As on 17th November As on 10th November %Chg
S&P BSE SENSEX 33342.8 33314.56 0.08%
NIFTY 50 10283.6 10321.75 -0.37%
NASDAQ 6793.29 6750.05 0.64%
FTSE 100 7367.06 7462.07 -1.27%

 

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 19.50%

 

EXCHANGE RATES

RATE As on 17th November As on 10th November %Chg
INR/$ 64.94 65.19 -0.38%
EUR/INR 76.69 76.044 0.85%
GBP/INR 85.798 85.989 -0.22%
JPY/INR 0.5802 0.5744 1.01%

 
Weekly debt (13th - 17th Nov 2017)

MACRO DATA

PARTICULARS CURRENT PREVIOUS
FOREIGN EXCHANGE RESERVES(10/NOV) $399.29B $398.74B
INFLATION RATE(OCT) 3.58% 3.28%
WPI INFLATION(OCT) 3.59% 2.60%

 

DOMESTIC INDICATORS

INSTRUMENT As on 17th November As on 10th November
10 yr bond yield 7.047% 6.957%
1yr bond yield 6.374% 6.360%
3yr bond yield 6.722% 6.581%
US 10 yr benchmark yield 2.345% 2.402%

 
Weekly debt (13th - 17th Nov 2017)

G-SEC YIELDS

Securities Maturity 17th Nov 10th Nov
06.35 GS 2020 02/01/2020 6.6022% 6.5026%
07.68 GS 2023 15/12/2023 7.0117% 6.9131%
07.35 GS 2024 22/06/2024 7.1054% 6.9746%
07.59 GS 2026 11/01/2026 7.2177% 7.0971%
06.57 GS 2033 12/05/2033 7.2632% 7.2225%

 
Weekly debt (13th - 17th Nov 2017)

COMMODITY

INSTRUMENTS As on 17th Nov As on 10th Nov %Chg
CRUDE OIL 56.55 56.9 -0.62%
GOLD 29390 29469 -0.27%
SILVER 39316 39336 -0.05%

 
Weekly debt (13th - 17th Nov 2017)

Recommended Tax Free Bonds

Bond Name Maturity Coupon LTP YTM Volume(in 000’s) Rating
REC N2 19 DEC 27 7.38% 1100 7.01% 0.002 AAA/STABLE
REC NF 24 MAR 29 8.88% 1279 6.46% 0.02 AAA
NHAI NA 11 JAN 31 7.60% 1173.08 6.21% 5.26 AAA
HUDCO 13 JAN 34 9.01% 1350 6.29% 0.676 AAA

 

Recommended Taxable Bonds

Bond Name Maturity Coupon LTP YTM Volume(in 000’s) Rating
IIHFL N2 02 APR 20 12.00% 1088.85 12.96% 0.394 AA-
DHFCL NP 09 SEP 23 9.25% 1043.05 10.84% 0.32 AAA
ECL FIN N5 26 APR 20 12.00% 1084.98 13.14% 0.4 AAA
DHFCL NC 16 AUG 26 9.30% 1064 10.30% 0.363 AA/STABLE

DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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