Morning Brief – September 23, 2022

Global
• The Bank of England raised interest rates by 50 bps
to 2.25% to keep a lid on surging inflation, which
stands near a four-decade high at 9.9%. This was
the seventh consecutive rise.
• The Bank of Japan maintained its ultraloose
monetary policy by keeping unchanged its target for
short-term interest rates (minus 0.1%) and for the
10-year government bond yield (0%) by a
unanimous vote.
• The Swiss National Bank raised its policy rate (by 75
bps) into positive territory for the first time since
2014 in a bid to quell inflationary pressures, and said
further increases "cannot be ruled out" over the
medium term.
Domestic
• India’s rice production is set to decline 6% y-o-y to
104.99 million tonnes in the kharif season this year
(2022-23), mainly attributed to a drop in paddy
acreage.
• The Indian rupee dropped to a record low of 80.86
against the US dollar on concerns over the pace and
quantum of US Federal Reserve's policy tightening
ahead. It was the biggest single-day fall for rupee since
February 24.
• The Union cabinet has approved the new National
Logistics Policy (NLP) designed to bring logistical
efficiency in the economy, reduce overall cost of freight
movement and increase export competitiveness.

Global Indicators
21-09-2022 22-09-2022 % / bps change
Dow 30,184 30,077 -0.35
NASDAQ 11,220 11,067 -1.37
S & P 500 3,790 3,758 -0.84
Nikkei 225 27,313 27,154 -0.58
FTSE 100 7,238 7,160 -1.08
US 10-yr (%) 3.53 3.72 18 bps
UK 10-yr (%) 3.31 3.50 18 bps
Germany 10-yr (%) 1.89 1.97 8 bps
Gold ($/t oz) 1,676 1,681 0.32
Crude Oil-WTI ($/bbl) 82.94 83.49 0.66
Crude Oil-Brent ($/bbl) 89.83 89.53 -0.33
$/€* 0.98 0.98 -0.01
¥/$* 144.08 142.37 -1.19
$/£* 1.13 1.13 -0.15
*(-)Appreciation/(+)Depreciation; Source: WSJ

Equity and Currency Markets - Domestic

21-09-2022 22-09-2022 % change
Sensex 59,457 59,120 -0.57
NIFTY 17,718 17,630 -0.50
Rs/$* 79.98 80.86 1.10
Rs/€* 79.57 79.72 0.19
*(-)Appreciation/(+) Depreciation; Source: Mint

Money Market - Domestic

21-09-2022 22-09-2022
Avg. Call Rate (%) 5.54 5.51
Vol. Traded (Rs million) 1,34,753 1,42,202
Net banking system liquidity outstanding (Rs million)* 1,18,864 (2,66,206)
T-Bills 91 days (%) 5.88 5.85
182 days (%) 6.20 6.38
364 days (%) NA 6.38
G-sec 3 years (%) 7.16 7.22
5 years (%) 7.22 7.29
10 years (%) 7.28 7.33
*(+)Deficit/(-)Surplus (Net banking system liquidity outstanding = total repo+MSF+SLF – total reverse repo); Source: CEIC, CCIL

FPI and MFs Investment Flows - Domestic

Equity Debt
Total (Net)^
Net Net
Net FPI Flows (USD million)
Aug-22 6,442 857 7,107
Sep-22* 1,367 728 2,200
21-Sep-22 226 (25) 201
22-Sep-22 (35) (83) (118)
MF Investments (Rs million)
Sept-22# 27,730 32,088 59,818
*Latest data as of previous trading day; #Data till Sept 08, 2022; ^Total (Net) of equity, debt & hybrid; Source: CEIC

Bond Spreads over G-Sec (PP)*- Domestic G-Sec Yields (%) - Domestic
PSU, FIs
10 Year NBFCs Corporates 10
& Banks
AAA 0.06 0.49 0.53
8
AA+ 0.56 1.03 0.93
AA 0.84 1.33 1.20
6
%

AA- 1.31 1.79 1.68

A+ 2.06 3.54 2.93 4
A 2.31 3.79 3.18
A- 2.56 4.04 3.68 2
BBB+ 3.06 4.54 4.18 1 2 5 10 15 20 30
BBB 3.31 4.79 4.43 Years
BBB- 3.81 5.29 4.93 31-Mar-22 30-Jun-22 22-Sep-22
*As of September 21, 2022; Source: FIMMDA Source: CCIL

Contact
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