NEWS U CAN USE July 09, 2021

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The Week that was… 5th July to 9th July

2 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Indian Economy • Data from the private survey showed that the seasonally adjusted Services Business Activity Index fell to 41.2 in Jun 2021 from 46.4 in May 2021. The service industry contracted sharply as tighter restrictions to contain a return of coronavirus infections devastated demand and prompted enterprises to cut employees at a quick pace. The Composite PMI Output also decreased to 43.1 in June 2021 from 48.1 in May 2021. • National Commodity and Derivatives Exchange (NCDEX) introduced two sectoral indices in agri-commodities basket namely NCDEX GUAREX and NCDEX SOYDEX. GUAREX is a return-based index that tracks the price movement of its guar seed and guar gum refined split futures contracts in real-time. Similarly, SOYDEX will track changes in soybean and refined soya oil futures contracts. • The of the Reserve of India wants to anchor inflation expectations as the country focuses on recovering economic growth, and he has encouraged the government to consider decreasing fuel taxes to relieve price pressures. A fast reversal of monetary policy attitude or strategy, according to the governor, can have major ramifications for the economy's recovery. • According to the finance ministry the economy has begun to show indications of rebound from the impact of the second wave of the COVID-19 epidemic on the back of targeted fiscal relief, monetary policy, and a quick vaccination effort.

3 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Indian Equity Market

• Indian equity markets settled for the Domestic Equity Market Indices week with modest losses. Buying interest Indices 09-Jul-21 1 Week Return YTD Return were initially strong as investors S&P BSE Sensex 52,386.19 -0.19% 9.71% continued to take positive cues from Nifty 50 15,689.80 -0.21% 12.22% declining COVID-19 cases, easing of curbs S&P BSE Mid-Cap 22,813.67 1.37% 27.16% and a surge in vaccinations, which also S&P BSE Small-Cap 25,874.40 1.20% 42.97% helped the Nifty and Sensex hit record Source: MFI Explorer highs in recent times.

S&P BSE S&P BSE S&P BSE • Nonetheless, gains were erased by Ratios Nifty 50 Sensex Mid Cap Small Cap worries over a probable stalled economy, P/E 31.40 28.27 42.19 52.66 which grew as the Delta form of COVID- P/B 3.38 4.23 3.19 3.32 19 spread fast across the Asian region. In Dividend Yield 1.04 1.09 0.90 0.74 addition, the market was pulled down by Source: BSE, NSE Value as on Jul 09, 2021 lower-than-expected initial earnings of IT NSE Advance/Decline Ratio companies. Date Advances Declines Advance/Decline Ratio 05-Jul-21 1338 696 1.92 • Markets were further hit by report 06-Jul-21 865 1124 0.77 showing fall in the monthly GST collection 07-Jul-21 1065 924 1.15 below Rs 1-trillion, for the first time in 08-Jul-21 750 1213 0.62 09-Jul-21 1088 869 1.25 eight months in Jun. Source: NSE

4 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Indian Equity Market (contd.)

Sectoral Indices Last Returns (in %) • On the BSE sectoral front, majority of the Indices Closing* 1-Wk 1-Mth indices closed in the red. S&P BSE Auto was S&P BSE Auto 23,252.10 -2.89% -3.18% the major loser, down 2.89%, followed by S&P S&P BSE Bankex 39,668.64 0.55% 0.47% BSE Oil & Gas and S&P BSE IT, which slipped S&P BSE CD 35,742.95 -0.87% 1.38% 1.46% and 1.35%, respectively. S&P BSE CG 22,960.64 0.81% -0.28% • Auto sector went down as the brutal wave of S&P BSE FMCG 13,580.63 -0.02% 2.29% the COVID-19 pandemic wreaked havoc on the S&P BSE HC 25,875.41 -0.50% 3.93% market sentiment with most of the domestic S&P BSE IT 29,624.11 -1.35% 5.62% automobile factories still running well below S&P BSE Metal 18,978.42 2.96% 1.85% capacity and sales much below expected. S&P BSE Oil & Gas 15,858.41 -1.46% -7.05% Source: Refinitiv *Value as on Jul 09, 2021

Indian Derivatives Market Review • Nifty Jul 2021 Futures stood at 15,722.45, a premium of 32.65 points above the spot closing of 15,689.80. The total turnover on NSE’s Futures and Options segment for the week stood at Rs. 258.92 lakh crore as against Rs. 223.74 lakh crore for the week to Jul 2. • The Put-Call ratio stood at 0.91 compared with the previous week’s close of 0.87. • The Nifty Put-Call ratio stood at 0.94 compared with the previous week’s close of 1.09.

5 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Domestic Debt Market • Bond yields surged to the highest level Debt Indicators Current 1-Wk 1-Mth 6-Mth since Mar 19, 2021 after the Reserve Bank (%) Value Ago Ago Ago of India (RBI) sold the much-awaited new

Call Rate 3.17 3.14 3.12 3.18 10-year bond at a higher-than-expected yield of 6.10%. Increase in global crude oil 91 Day T-Bill 3.46 3.41 3.41 3.06 prices and intensifying concerns about an 05.22% 2025, (5 Yr GOI) 5.59 5.61 5.28 5.01 early normalisation of monetary policy due 05.85% 2030, (10 Yr GOI) 6.19 6.06 6.02 5.87 to rise in domestic inflationary pressures

Source: Refinitiv Value as on Jul 09, 2021 also weighed on the market sentiment. • Yield on the 10-year benchmark paper 10 -Yr Benchmark Bond ( % ) 6.20 (5.85% GS 2030) surged 13 bps to close at 6.19% from the previous week’s close 6.06%. 6.10

Yield in % Yieldin • RBI conducted the auction of three government securities for a notified 6.00 amount of Rs. 26,000 crore for which the 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul entire amount was accepted. The implicit Source: CCIL yield at cut off for the much-awaited new 10-year bond came in at 6.10%.

6 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Domestic Debt Market (Spread Analysis) • Yields on gilt securities increased on 7-year paper, 10-year paper and 12 to 30-year G-Sec Yield Corporate Yield Spread Maturity (%) (%) bps maturities in the range of 2 bps to 14 bps. • Corporate bond yields fell across 2 to 10-year 1 Year 4.09 4.75 66 maturities by up to 14 bps barring 1-year paper and 15-year paper which increased 3 3 Year 4.84 5.31 47 bps and 8 bps respectively. 5 Year 5.81 6.37 56 • Difference in spread between AAA corporate bond and gilt expanded on 1-year and 15-year 10 Year 6.28 7.22 93 paper by 4 bps each while it contracted across

Source: Refinitiv Value as on Jul 09 2021 the remaining maturities in the range of 4 bps to 15 bps.

India Yield Curve Shift (%) (W-o-W) Change

8.00 16 in in %

5.00 6 bps in Yield

2.00 -4 3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs Source: Refinitiv Change in bps 09-Jul-21 02-Jul-21

7 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Regulatory Updates in India • The Department of Public Enterprises (DPE) and the Finance Ministry have amalgamated to offer the government more control over state-owned businesses and to enable its ambitious privatisation drive. The Finance Ministry will now have six departments, while the Ministry of Heavy Industries and Public Enterprises will now be known as the Ministry of Heavy Industries. • The Union Minister of Fisheries, Animal Husbandry, and Dairy released the 'Matsya Setu' smartphone app to help aqua farmers learn about the latest freshwater aquaculture technologies. In the Matsya Setu app, renowned aquaculture experts explain the basic concepts and practical demonstrations on breeding, seed production, and grow-out culture of commercially important fishes like carp, catfish, scampi, murrel, ornamental fish, and pearl farming in species-and subject-specific self-learning online course modules. • The has warned and financial institutions against structuring deals based on the London Interbank Offered Rate (LIBOR), a long-standing reference frame for cross-border fund-raising, as the global rate gauge is nearing the end of its life cycle and will be replaced beginning next year. • The Union Cabinet has authorised a Rs. 23,123 crore package to improve health infrastructure in order to combat COVID-19, as part of which roughly 2.4 lakh hospital beds and 20,000 intensive care units (ICUs) will be built, with a special focus on paediatric care. The package will be implemented over the next nine months till Mar 2022.

8 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Regulatory Updates in India (contd..)

• The Securities and Exchange Board of India, in an unprecedented step to reduce the number of technical failures at market infrastructure organisations such as stock exchanges, published new guidelines that will hold such institutions and their personnel accountable if they fail to provide services. • The Securities and Exchange Board of India has decreased the time it takes for corporations to file an application to the markets regulator for a 'No Objection Certificate' for the release of 1% of the issue amount from four months to two months. • The Reserve Bank of India (RBI) has enabled banks to provide the lower of the savings deposit rate or the fixed deposit rate on matured FDs in an effort to deter businesses from utilising banks for treasury management. • Rashtrapati Bhavan hosted a swearing-in event for 43 ministers. 15 Cabinet Ministers and 28 Ministers of State were sworn in. 36 fresh faces will be added to the cabinet. Government has promoted seven ministers who were previously in his Cabinet. The new members of India's Council of Ministers were picked for their diversity, experience, and education.

9 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Global News/Economy • The recent monetary policy meeting of the U.S. Federal Reserve suggests that it will not be in a hurry to start winding down its asset buying programme. The central bank has stated repeatedly that it intends to keep buying assets at a rate of at least $120 billion per month until it achieves "significant further progress" toward its goals of maximum employment and price stability. • According to the Institute for Supply Management (ISM), U.S. services Purchasing Manufacturing Index fell to 60.1 in Jun 2021 from 64 in May 2021. The decline came likely restrained by labor and raw material shortages, resulting in unfinished work continuing to pile up. • The European Commission raised its economic forecasts, citing improved health and, as a result, continuous relaxing of virus containment measures. In 2021, the euro area economy is expected to develop at a rate of 4.8%, up from the prior prediction of 4.3%. Similarly, the forecast for 2022 was revised from 4.4% to 4.5%. • The People's Bank of China said that it will reduce the reserve requirement ratio (RRR) by 0.5% points, with effect from Jul 15, 2021. The RRR for major banks was last decreased by the bank in March 2020. China's central bank reduced the reserve requirement ratio for large commercial banks to enhance the amount of money available for lending and assist economic growth.

10 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Global Equity Markets

Global Indices U.S. 1-Week YTD Indices 09-Jul-21 • U.S. markets managed to close in the Return Return green as investors set aside worries about Russell 3000 2,239.61 0.83% 14.70% the spread of the delta variant of the Nasdaq 100 14,826.09 0.67% 15.04% coronavirus and remained optimistic the FTSE 100 7,121.88 -0.02% 10.24% U.S. economy will continue to DAX Index 15,687.93 0.24% 14.35% outperform. The minutes of Fed’s latest Nikkei Average 27,940.42 -2.93% 1.81% policy meeting too generated positive Straits Times 3,131.40 0.08% 10.11% Source: Refinitiv Value as on Jul 09, 2021 vibes among the investors. Europe • Majority of the European markets dipped as worries about the spread of the Delta variant of the coronavirus and its impact on economic growth dented sentiment. A sharp fall in crude oil prices after OPEC+ abandoned discussions amid failure to agree on production policy too hit the bourses. Asia • Asian markets witnessed a mixed trend during the week. Worries over a new wave of COVID-19 infections in numerous Asian countries, as well as concerns about China's crackdown on technological companies kept investors wary. Nonetheless, the minutes of Fed’s latest policy meet generated positive vibes.

11 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Global Debt (U.S.)

US 10-Year Treasury Yield Movement • Yields on the 10-year U.S. Treasury fell 7 bps to close at 1.36%, from the previous 1.40 week’s close of 1.43%. • U.S. Treasury prices rose after data showed that service sector activity in U.S. slowed in Jun 2021 from May 2021. Data 1.33 from the Institute for Supply Management showed that the U.S. non- manufacturing activity index fell to 60.1 in Jun 2021 from 64.0 in May. Gains were 1.26 6-Jul 7-Jul 8-Jul 9-Jul extended after initial jobless claims in U.S. rose for the week ended Jul 3, 2021. Source: Refinitiv • The safe haven appeal of the U.S. Treasuries was further boosted on concerns that the global economic recovery was faltering amid a surge in coronavirus infections in many places around the globe.

12 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Commodities Market Gold Global Commodity Movement

11.80 Rebased to 10 • Gold price crossed $1800/ounce mark as -0.62% treasury yield fell and investors took positive cues from the minutes of U.S. Fed’s latest 10.20 policy meet. Nonetheless, concerns 1.19% regarding global growth of Delta variant of

Commodity Commodity Prices COVID-19 kept investors wary. -1.44% 8.60 Brent Crude Global 9-Jun-21 24-Jun-21 9-Jul-21 Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl) • Brent Crude prices eased with investors Source: Refinitiv speculating collapse in OPEC+ talks, which could mean more supply. Oil prices Performance of various commodities remained weak following the breakdown of Commodities Last Closing* 1-Week Ago discussions between major oil producers Brent Crude($/Barrel) 78.30 78.79 Saudi Arabia and United Arab Emirates. Gold ($/Oz) 1807.98 1786.79 Baltic Dry Index Gold (Rs/10 gm) 47723 47434 Silver ($/Oz) 26.08 26.46 • The index fell on WoW basis due to Silver (Rs/Kg) 68756 68919 slowdown in capesize and panamax activities. Source: Refinitiv *Value as on Jul 09, 2021

13 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Currencies Markets

Rebased to 10 Currency Movement Rupee 10.30 • The rupee rose against the greenback on hopes -0.17% that the U.S. Federal Reserve may not rush to scale back stimulus. 1.16% Euro in terms of INR) of in terms 10.05 -0.13% • The euro inched up against the greenback as

Prices ( Prices the latter came under pressure due to profit -0.28% booking. 9.80 Currency Currency 9-Jun-21 24-Jun-21 9-Jul-21 Pound • The pound rose against the greenback on Source: Refinitiv USD GBP Euro JPY reports that the British government may

Movement of Rupee vs Other Currencies announce plans to fully reopen the economy later this month despite a surge in COVID-19 Currency Last Closing* 1-Wk Ago cases. US Dollar 74.64 74.77 Yen Pound Sterling 102.75 102.88 • The yen rose against the greenback as its safe EURO 88.29 88.53 haven appeal improved amid surge in COVID-19 100 Yen 67.79 67.01 infection cases in many parts of the world and concerns over global economic recovery. Source: Refinitiv Figures in INR , *Value as on Jul 09, 2021

14 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The Week that was… 5th July to 9th July

15 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The Week that was (Jul 5 – Jul 9)

Date Events Present ValuePrevious Value

• India Markit Service PMI (May) 41.2 46.4 Monday, • Eurozone Markit PMI Composite (Jun) 59.5 59.2 July 05, 2021 • Germany Markit PMI Composite (Jun) 60.1 60.4 • U.S. ISM Services PMI (Jun) 60.1 64.0

Tuesday, • Eurozone Retail Sales (YoY)(May) 9% 23.30% July 06, 2021 • Germany ZEW Survey – Economic Sentiment (Jul) 63.3 79.8 • Germany Factory Orders (MoM)(May) -3.70% 1.20%

Wednesday, • Japan Leading Economic Index (May) PREL 102.6 103.8 July 07, 2021 • Germany Industrial Production (MoM)(May) -0.30% -0.30%

Thursday • Japan Current Account (Yen)(May) 1979.7B 1321.8B July 08, 2021 • Germany Trade Balance (Euro) (May) 12.6B 15.6B • China Consumer Price Index (YoY)(Jun) 1.10% 1.30% Friday, • U.K. Gross Domestic Product (MoM)(May) 0.80% 2.30% July 09, 2021 • U.K. Industrial Production (MoM)(May) 0.80% -1%

16 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The Week Ahead 12th July to 16th July

17 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The Week Ahead

Day Event • India Consumer Price Inflation (YoY) (May) Monday, • India Index of Industrial Production (May) Jul 12, 2021 • Japan Machinery Orders (YoY)(May) • Germany Wholesale Price Index (YoY)(Jun)

Tuesday, • U.S. Consumer Price Index (YoY)(Jun) • Germany Harmonized Index of Consumer Prices (YoY)(Jun) Jul 13, 2021 • China Trade Balance USD(Jun)

Wednesday, • India Wholesale Price Inflation (YoY) (May) • U.K. Consumer Price Index (YoY)(Jun) Jul 14, 2021 • U.K. Retail Price Index (MoM)(Jun) • China Gross Domestic Product (YoY)(Q2) Thursday, • China Retail Sales (YoY)(Jun) Jul 15, 2021 • U.K. ILO Unemployment Rate (3M)(May) • China Industrial Production (YoY)(Jun) • Bank of Japan Interest Rate Decision Friday, • U.S. Retail Sales (MoM)(Jun) Jul 16, 2021 • U.S. Michigan Consumer Sentiment Index(Jul) PREL • Eurozone Consumer Price Index (MoM)(Jun)

18 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Disclaimer

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19 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Thank you for your time.

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Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.