Morning Brief – September 22, 2022

Global
• The Federal Reserve raised its target interest rate by
75 bps to a range of 3.00%-3.25%. It signalled more
hikes with its policy rate rising to 4.40% by the end
of this year, before topping out at 4.60% in 2023.
• US existing home sales dropped (by 0.4% m-o-m)
for the seventh straight month in August as
affordability deteriorated further amid surging
mortgage rates and stubbornly high house prices.
• Consumer inflation (NCPI) in Sri Lanka accelerated
to 70.2% y-o-y in August, after a 66.7% increase in
July. Food prices climbed 84.6%, while prices of non-
food items rose 57.1%.
Domestic
• The Asian Development Bank (ADB) slashed India’s
economic growth projection for 2022-23 to 7% from
7.2% earlier, citing higher than expected inflation
and monetary tightening.
• As per the first advance estimates of production of
major Kharif crops for 2022-23, the foodgrains
production is estimated to reach a new high of
149.92 million tonnes.
• Mineral production in the country fell 3.3% year-on-
year in July. The production of minerals such as iron
ore, lead, petroleum crude, natural gas, etc. showed
negative growth.

Global Indicators
20-09-2022 21-09-2022 % / bps change
Dow 30,706 30,184 -1.70
NASDAQ 11,425 11,220 -1.79
S & P 500 3,856 3,790 -1.71
Nikkei 225 27,688 27,313 -1.36
FTSE 100 7,193 7,238 0.63
US 10-yr (%) 3.56 3.53 -3 bps
UK 10-yr (%) 3.30 3.31 2 bps
Germany 10-yr (%) 1.93 1.89 -4 bps
Gold ($/t oz) 1,671 1,676 0.28
Crude Oil-WTI ($/bbl) 84.45 82.94 -1.79
Crude Oil-Brent ($/bbl) 90.62 89.83 -0.87
$/€* 1.00 0.98 -1.31
¥/$* 143.72 144.08 0.25
$/£* 1.14 1.13 -0.97
*(-)Appreciation/(+)Depreciation; Source: WSJ

Equity and Currency Markets - Domestic

20-09-2022 21-09-2022 % change
Sensex 59,720 59,457 -0.44
NIFTY 17,816 17,718 -0.55
Rs/$* 79.75 79.98 0.29
Rs/€* 79.82 79.57 -0.31
*(-)Appreciation/(+) Depreciation; Source: Mint

Money Market - Domestic

20-09-2022 21-09-2022
Avg. Call Rate (%) 5.47 5.54
Vol. Traded (Rs million) 1,30,568 1,34,753
Net banking system liquidity outstanding (Rs million)* 2,18,734 1,18,864
T-Bills 91 days (%) 5.78 5.88
182 days (%) 5.95 6.20
364 days (%) 6.40 NA
G-sec 3 years (%) 7.16 7.16
5 years (%) 7.22 7.22
10 years (%) 7.28 7.28
*(+)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* 1,402 811 2,319
20-Sep-22 92 (3) 91
21-Sep-22 226 (25) 201
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 0.12 0.40 0.43
8
AA+ 0.47 0.93 0.83
AA 0.75 1.23 1.10
6
%

AA- 1.22 1.69 1.58

A+ 1.97 3.44 2.83 4
A 2.22 3.69 3.08
A- 2.47 3.94 3.58 2
BBB+ 2.97 4.44 4.08 1 2 5 10 15 20 30
BBB 3.22 4.69 4.33 Years
BBB- 3.72 5.19 4.83 31-Mar-22 30-Jun-22 21-Sep-22

*As of September 20, 2022; Source: FIMMDA Source: CCIL

Contact
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