16 August 2021 www.prudentcorporate.

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Indices Performance Indian Equity Market Update

Domestic Indices 13-Aug 1 Day Chg (%) 1 Week Chg (%) 1 Year Chg (%) • Indian equity markets surged as domestic CPI data showed that retail
S&P BSE Sensex 55,437 1.08 2.14 44.71 inflation in July eased. Lower inflation will give comfort to the RBI to
Nifty 50 16,529 1.01 1.79 46.27
keep rates lower and stance dovish for a longer time. Government’s
assurance on support to tide over economic stress caused by the
Nifty Midcap 100 27,600 -0.30 -1.24 67.02 pandemic also gave confidence to investors.
Nifty Smallcap 100 10,200 -0.39 -2.20 87.72
• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 1.08%
Nifty 200 8,694 0.73 1.10 48.26 and 1.01% to close at 55,437.29 and 16,529.10 respectively.
Nifty 500 14,065 0.67 0.79 51.11
• The overall market breadth on BSE was weak with 1,536 scrips
Global Indices 13-Aug 1 Day Chg (%) 1 Week Chg (%) 1 Year Chg (%) advancing and 1,687 scrips declining. A total of 117 scrips remained
Nasdaq Composite 14,823 0.04 -0.09 34.23 unchanged.
FTSE 7,219 0.35 1.34 16.70 • On the BSE sectoral front, S&P BSE Telecom was the major gainer, up
SSE Composite Index 3,516 -0.24 1.68 5.89 1.8% followed by S&P BSE Teck, up 1.64% and S&P BSE Capital Goods,
up 1.58%. S&P BSE Realty was the major loser, down 0.79% followed
KOSPI 3,171 -1.16 -3.03 30.10
by S&P BSE Healthcare, down 0.76% and S&P BSE Utilities, down
HangSeng 26,392 -0.48 0.81 4.60 0.45%.
Topix 1,956 0.15 1.40 20.46
Source: Refinitiv , BSE & NSE

P/E & Dividend Yield Global Equity Market Update

S&P BSE Sensex Nifty 50 • Asian equity markets closed in the red with rising cases of delta
Date P/E Div. Yield (%) P/E Div. Yield (%) variant coronavirus indicating further lockdown like restrictions.
China’s regulatory crackdown also added worries for the market
13-Aug 30.13 0.97 26.51 1.10
participants. The Chinese government has unveiled a five-year and
Month Ago 31.47 1.03 28.43 1.08 10-point plan outlining tighter regulation of much of its economy.
Year Ago 26.78 1.01 31.42 1.46 Today (as on Aug 16), Asian markets opened on a lower note with
South Korean and Taiwanese stocks saw heavy losses.
Institutional Flows - Equity (₹ Cr.) • European markets rose for the tenth consecutive session, amid
continued optimism about corporate earnings, easing worries about
Net Flow YTD Flow
U.S. inflation and hopes about global economic recovery.
FII Flows* 290 51,119
• U.S. market was little changed as significant fall in U.S. consumer
MF Flows** 712 11,805
sentiment, and worries about the impact of surging cases of the Delta
DII Flows*** 150 15,329 variant of the coronavirus on growth neutralised buoyant earnings
Source: NSDL, SEBI & NSE; *13th Aug 2021; **12th Aug 2021; ***13th Aug 2021 updates from some top notch companies.

Currency Market Currency Market Update

Currency 13-Aug-21 1 Month Ago 1 Year Ago • The Indian rupee was little changed against the U.S. dollar as market
INR (₹) / USD ($) 74.30 74.49 74.84 participants digested additional upbeat U.S. jobs data and a larger-
than-expected decline in India’s consumer inflation rate.
INR (₹) / EUR (€) 87.19 88.35 88.55
INR (₹) / GBP (£) 102.57 103.41 97.85 • Euro rose against the U.S. dollar after a survey showed U.S. consumer
sentiment dropped sharply in early Aug 2021 to its lowest level in a
INR (₹) / 100 Yen (¥) 67.30 67.49 70.17
decade.
Source: FBIL

Commodity Prices Commodity Market Update

Commodity 13-Aug 1 Week Chg (%) 1 Month Chg (%) 1 Year Chg (%) • Gold prices rose on concerns over increase in cases of the Delta
Nymex Crude ($/bbl)^ 68.00 0.25 -9.57 60.79 variant. However, uncertainties over the U.S. Federal Reserve’s
tapering timeline restricted the gains.
Brent Crude ($/bbl)^^ 70.18 -0.14 -8.08 55.92
Gold ($/oz) 1,779.15 0.93 -1.56 -8.90 • Brent crude oil prices fell as the International Energy Agency warned
that demand for crude and its products had slowed substantially as
Gold (Rs./10gm) 46,554 -1.92 -2.52 -11.23
governments around the world were obliged to reintroduce mobility
Silver (Rs./kg) 62,604 -5.88 -9.25 -6.16 restrictions due to an increase in COVID-19 cases.
Source: Refinitiv Expiry Date:^Aug 2021;^^Aug 2021;

Policy Rates (in %) Key Economic Indicators (In %)

13-Aug-21 3 Months Ago 1 Year Ago Index Latest Previous
Reverse Repo 3.35 3.35 3.35 WPI 12.07%(Jun'21) 12.94%(May'21)
Repo 4.00 4.00 4.00 CPI 5.59%(Jul'21) 6.26%(Jun'21)
CRR 4.00 3.50 3.00 IIP 13.60%(Jun'21) 28.60%(May'21)
SLR 18.00 18.00 18.00 GDP 1.60%(Q4 FY'21) 0.50%(Q3 FY'21)
Bank Rate 4.25 4.25 4.25 Fiscal Deficit(as a % of GDP) 9.3( FY21) 4.59( FY20)
Source: RBI, Refinitiv

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16 August 2021 www.prudentcorporate.com

Debt Watch (in %) Indian Debt Market Update

13-Aug Wk. Ago Mth. Ago Year Ago • Bond yields rose after the Reserve Bank of India (RBI) at the weekly
Call Rate 3.15 3.22 3.18 3.44 auction of government securities accepted more than the scheduled
amount.
Tri-Party Repo 3.14 3.06 3.23 3.18
Repo 4.00 4.00 4.00 4.00 • Yield on the 10-year benchmark paper (6.10% GS 2031) rose by 1 bps to
close at 6.24% from the previous close of 6.23% after moving in a range
Reverse Repo 3.35 3.35 3.35 3.35
of 6.22% to 6.24%.
91 Day T-Bill 3.34 3.38 3.41 3.26
• Data from RBI showed that India's foreign exchange reserves rose to a
3 Month CP Rate 3.70 3.80 3.75 3.60 record high of $621.46 billion as on Aug 06, 2021 from $620.58 billion in
3 Month CD Rate 3.38 3.45 3.59 3.29 the previous week.
364 Day T-Bill 3.69 3.58 3.56 3.50 • RBI announced the auction of 91 days, 182 days and 364 days Treasury
5 Year Corp Bond 6.26 6.29 6.36 6.60 Bills for a notified amount of Rs. 17,000 crore. The auction would be
10 Year Gilt 6.24 6.23 6.10 5.90 carried out on Aug 18, 2021.
Source: CCIL • RBI conducted the auction of government securities for a notified
amount of Rs. 31,000 crore, which was oversubscribed. Greenshoe
Institutional Flows - Debt (₹ Cr.)
amount of Rs. 495 crore, Rs. 750 crore, Rs. 2,500 crore and Rs. 1,750
Net Flow YTD Flow crore has been accepted for 5.63% GS 2026, GOI FRB 2033, 6.64% GS
FII Flows* -321 -23,059 2035 and 6.67% GS 2050, respectively. The cut-off stood at Rs. 99.51
MF Flows** 1765 90,832 (5.7494%), Rs. 101.05 (4.5855%), Rs. 98.00 (6.8648%) and Rs.
93.44/7.2096%, respectively.
Source: NSDL, SEBI; *13th Aug 2021**12th Aug 2021

G-sec and Corporate Bond Yields Yield Curve Movement

Period G-Sec AAA AA A 8.35
1 Yr 3.93 4.63 6.04 19.98 7.16

Yield (%)
2 Yr 4.54 4.94 6.52 9.92 5.96
4.77
3 Yr 4.96 5.39 7.05 5.98
3.57
5 Yr 5.73 6.26 7.94 --
1Y 2Y 3Y 4Y 5Y 6Y 7Y 10 Y 15Y
10 Yr 6.24 7.20 8.51 -- Gilt AAA Corp Bond
Source: CCIL, Refinitiv Source: Refinitiv ; Gilt and Corporate Bond Yields are annualised

Mutual Fund Category Performance

• Mutual funds bought equity worth Rs. 4002.48 crore as against sale of Rs. 3290.22 crore as on Aug 12, 2021. This led to a net purchase of Rs. 712.26 crore compared
with a net purchase of Rs. 1003.96 crore on Aug 11, 2021.
• Mutual funds bought debt worth Rs. 10567.15 crore as against sale of Rs. 8801.73 crore as on Aug 12, 2021. This led to a net purchase of Rs. 1765.42 crore
compared with a net sale of Rs. 569.28 crore on Aug 11, 2021.
Equity Category 1 Year 3 Years 5 Years 7 Years Debt Category 3 Months 6 Months 1 Year 3 Years
Large Cap 45.93 13.35 13.07 12.53 Liquid 3.26 3.23 3.19 5.03
Large & Mid Cap 56.17 15.08 14.72 15.04 Ultra Short Duration 3.97 3.96 3.85 5.52
Multi Cap 60.69 16.95 15.37 14.96 Short Duration 3.84 5.06 4.65 6.06
Mid Cap 65.21 17.13 15.64 16.66 Credit Risk 6.74 8.19 5.43 1.80
Small Cap 88.75 19.04 17.18 18.36 Corporate Bond 4.48 5.45 4.79 8.19
Hybrid Category 1 Year 3 Years 5 Years 7 Years Long Duration -5.82 -0.59 -0.17 9.79
Aggressive Hybrid 40.01 12.75 12.14 11.91 Dynamic Bond 3.65 4.85 3.27 7.41
Conservative Hybrid 12.29 7.47 7.05 8.20 Gilt 2.18 3.52 3.00 9.02
Dynamic Asset
22.26 9.61 9.46 9.69
Allocation
Note:
1. Equity & Hybrid: <1 year return are absolute and ≥ 1 year returns are CAGR; 2. Debt: < 1 year return are simple annualised and ≥ 1 year returns are CAGR; 3. Mutual Fund classification as per SEBI categorisation; 4.
Source: MFI Explorer

Event Calendar for next 15 days

Domestic Events Date Global Events Date
WPI Inflation (Jul 2021) 16-Aug-21 Euro Zone Reserve Assets Total Jul 2021 16-Aug-21
WPI Food Index (Jul 2021) 16-Aug-21 China Urban investment (ytd)yy Jul 2021 16-Aug-21
Reserve Money 18-Aug-21 U.S. NY Fed Manufacturing Aug 2021 16-Aug-21
Currency in Circulation 18-Aug-21 China Industrial Output YY Jul 2021 16-Aug-21
Source: Refinitiv
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