NEWS U CAN USE October 30, 2020

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The Week that was… 26th Oct to 30th Oct

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

• Government data showed that 's infrastructure output contracted 0.8% in Sep 2020 as compared to a contraction of 7.3% in Aug 2020 and a contraction of 5.1% in the same period of the previous year. The natural gas sector witnessed the maximum contraction of 10.6% followed by refinery products sector and crude oil sector which contracted 9.5% and 6.0% respectively. • Government data showed that India’s fiscal deficit during the period from Apr to Sep of 2020 stood at Rs. 9.14 lakh crore. India’s fiscal deficit target thus exceeded the full year target of Rs. 7.96 lakh crore by almost 15%. India’s fiscal deficit widened as government’s revenue remained subdued on account of COVID-19 pandemic. Total receipts for the government stood at Rs. 5.65 lakh crore or 25.2% of the budget estimate as compared to 40.2% of the budget estimate in the corresponding period of the previous year. • According to , to India may come down by 9% to $76 billion which it attributed to the ongoing COVID-19 pandemic and global economic recession. World Bank further added that some of the factors which may lead to a decline in remittances are weak economic growth, increasing unemployment, lower global crude oil prices and weakening of the currencies of -source countries against the greenback. • Data from the (RBI) showed that the states ‘consolidated gross fiscal deficit (GFD) is placed at 2.8% of GDP for FY21. However, RBI warned that the COVID-19 pandemic may alter budget estimates substantially.

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

Domestic Equity Market Indices • Indian equity markets settled for the Indices 30-Oct-20 1 Week Return YTD Return week in the red as the surge in the S&P BSE Sensex 39,614.07 -2.63% -3.97% COVID-19 cases at an alarming pace in Nifty 50 11,642.40 -2.41% -4.32% U.S. and Europe raised concerns that economies may resort to lockdowns S&P BSE Mid-Cap 14,904.62 -0.48% -0.42% and travel restrictions. Uncertainty S&P BSE Small-Cap 14,888.08 -1.63% 8.68% around the U.S. Presidential election Source: MFI Explorer due on Nov 3, 2020 kept investors on tenterhooks. Back home, investors S&P BSE S&P BSE S&P BSE Ratios Nifty 50 Sensex Mid Cap Small Cap adopted cautious stance as the first phase of polling for the Bihar Assembly P/E 27.55 31.90 459.76 -1004.51 P/B 2.85 3.30 2.29 2.06 Election began this week. Dividend Yield 1.03 1.36 1.21 1.11 Source: BSE, NSE Value as on Oct 30, 2020 • Meanwhile, the downturn was restricted by hopes of higher foreign NSE Advance/Decline Ratio fund inflow after MSCI said it will Date Advances Declines Advance/Decline Ratio implement the new regime on foreign 26-Oct-20 621 1298 0.48 27-Oct-20 865 982 0.88 ownership limits in the MSCI Global 28-Oct-20 599 1251 0.48 Indices containing Indian securities in 29-Oct-20 642 1247 0.51 the Nov 2020 Semi Annual Index 30-Oct-20 938 908 1.03 Source: NSE Review.

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

Sectoral Indices • On the BSE sectoral front, barring S&P BSE Last Returns (in %) Indices Power and S&P BSE Capital Goods, all the Closing* 1-Wk 1-Mth major indices closed in the red. S&P BSE Auto 17,517.1 -4.10% -2.01% S&P BSE Bankex 27,388.6 -1.43% 12.46% • S&P BSE Metal was the major loser, down S&P BSE CD 24,076.3 -3.01% -0.83% 5.07%, followed by S&P BSE Auto and S&P BSE S&P BSE CG 14,167.3 0.15% 2.41% IT, which slipped 4.10% and 3.12%, S&P BSE FMCG 10,922.6 -1.10% -1.16% respectively. S&P BSE HC 19,257.8 -1.93% -2.73% S&P BSE IT 21,058.8 -3.12% 5.40% S&P BSE Metal 8,207.5 -5.07% -1.16% S&P BSE Oil & Gas 12,126.1 -0.84% -0.95% Source: Refinitiv *Value as on Oct 30, 2020 Indian Derivatives Market Review • Nifty Nov 2020 Futures stood at 11,638.40, a discount of 4.00 points below the spot closing of 11,642.40. The total turnover on NSE’s Futures and Options segment for the week stood at Rs. 135.82 lakh crore as against Rs. 130.62 lakh crore for the week to Oct 23. • The Put-Call ratio stood at 0.99 compared with the previous session’s close of 0.88. • The Nifty Put-Call ratio stood at 1.46 compared with the previous session’s close of 1.47.

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

Debt Indicators Current 1-Wk 1-Mth 6-Mth • Bond yields increased on profit (%) Value Ago Ago Ago booking and as market participants remained cautious ahead of the Call Rate 3.25 3.22 3.40 4.08 Reserve Bank of India’s (RBI) open 91 Day T-Bill 3.23 3.21 3.31 3.64 market purchase, along with weekly 05.22% 2025, (5 Yr GOI) 5.17 5.21 5.39 -- debt auction, which were conducted 05.77% 2030, (10 YrGOI) 5.88 5.84 6.02 -- on Friday. Source: Refinitiv Value as on Oct 29, 2020 • Yields rose further as sentiment 10 -Yr Benchmark Bond ( % ) continues to be supported on dovish 5.90 comments from the Reserve Bank of India (RBI). 5.85 • Yield on the 10-year benchmark paper

Yield in % (5.77% GS 2030) increased 4 bps to close at 5.88% from the previous 5.80 26-Oct 27-Oct 28-Oct 29-Oct week’s close of 5.84% after trading in a range of 5.79% to 5.89%. Source: CCIL

6 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Domestic Debt Market (Spread Analysis)

• Yields on gilt securities fell on 12, 15 and G-Sec Yield Corporate Yield Spread Maturity 30-year maturities by up to 9 bps while it (%) (%) bps increased across the remaining maturities by up to 4 bps barring 3 and 11-year 1 Year 3.50 4.99 149 maturities which closed steady. 3 Year 4.68 5.43 75 • Corporate bond yields increased on 2-year paper and 7 to 10-year maturities in the 5 Year 5.23 6.47 123 range of 3 bps to 8 bps while it fell across 10 Year 5.97 7.07 110 the remaining maturities by up to 5 bps barring 3-year paper which closed steady. Source: Refinitiv Value as on Oct 29, 2020

India Yield Curve Shift (%) (W-o-W) Change 8.00 5 6.00 0 in bps in in % 4.00 -5

Yield 2.00 -10 3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs Source: Refinitiv Change in bps 29-Oct-20 23-Oct-20

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

• The Union Cabinet approved nationwide project for rehabilitation and improvement of dams worth Rs. 10,211 crore. The objective of the move is to ensure safety of dams, enhance water security of the country and support sustainable development while creating employment opportunities. • The government banned export of onion seeds with immediate effect. The move comes amid rising prices of onions in the market on account of damage done by heavy rainfall to standing Kharif crop across several parts of the country. • The Union Cabinet has approved the signing of the Memorandum of Understanding between India and Cambodia on cooperation in the field of Health and Medicine. The objective of the move is to encourage cooperation between the two countries through joint initiatives and technology development in the health sector. • The Union Cabinet approved the signing of the Memorandum of Cooperation between India and Japan on bilateral cooperation in the field of Information and Communication Technologies (ICTs). The objective of the move is to enhance cooperation between two countries in various fields like 5G network, telecom security, Submarine cable, standard certification of communication equipment, utilization of latest Wireless Technologies and ICTs, ICTs capacity building, Public Protection and Disaster Relief, Artificial Intelligence (AI) / Block Chain, Spectrum Chain, Spectrum Management, Cooperation on Multilateral platforms etc.

8 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Regulatory Updates in India (contd..) • The Cabinet Committee on Economic Affairs approved that 100% of the food grains and 20% of the sugar need to be mandatorily packed in diversified jute bags. The objective of the move is to give a push to the diversification of the jute industry and help in price discovery. • The Reserve Bank has asked all lending institutions, including non-banking financial firms, to implement the waiver of difference between simple interest and compound interest on loans up to Rs. 2 crore for a six-month moratorium starting on 1 Mar 2020. Government announced the interest waiver scheme on Oct 23, 2020. • According to media reports, capital market regulator Securities and Exchange Board of India (SEBI) mandated investment bankers and other entities involved in primary market issuances not to share bidding data directly to investors. Instead, investment bankers need to direct investors to stock exchanges where such data is publicly available. • According to media reports, SEBI has clarified that existing clients who have invested in Portfolio Management Services (PMS) to the extent of Rs.25 lakh (earlier regulations) will have to invest such that they meet minimum investment value of Rs.50 lakh in PMS in order to top up his investment portfolio in PMS. Additionally, SEBI has clarified that partial withdrawal is allowed in PMS to the extent that they maintain a minimum investment value of Rs. 50 lakh in PMS.

9 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Global News/Economy

• Data from the U.S. Commerce Department report showed, U.S. real Gross Domestic Product (GDP) surged 33.1% in the Sep quarter of 2020 after plummeting 31.4% in the Jun quarter of 2020. Rebound in GDP was due to consumer spending that rose sharply by 40.7% in Sep quarter after 33.2% plunge in the second quarter. The positive contributions to GDP were partly neutralised by fall in federal government spending and state and local government spending as well as an increase in imports. • Preliminary flash estimate from Eurostat showed, euro area Gross Domestic Product (GDP) surged 12.7% QoQ in the Sep quarter of 2020, compared with a fall of 11.8% in the previous quarter. Rise in GDP was the sharpest seen since the series started in 1995. Among member countries, recorded the largest rise of 18.2% sequentially, followed by Spain and . grew 8.2%. Annually, GDP contracted 4.3% YoY in the Sep quarter of 2020, slower than 14.8% fall in the prior quarter. • The Bank of Japan retained the interest rate at -0.1% on current accounts that financial institutions maintain at the central bank. Without setting an upper limit, the bank will continue to buy the appropriate amount of Japanese government bonds, so that 10-year JGB yields will remain at around zero percent. The bank said that, with economic activity resuming and the influence of the coronavirus steadily diminishing, the economy is likely to follow an improving trend. But it is predicted that the pace will be moderate. The economy is forecast to shrink 5.5% in FY20, weaker than the previous outlook of -4.7%. Overall consumer prices are expected to fall 0.6% versus a 0.5% fall projected in Jul.

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

Global Indices U.S. U.S. markets closed lower amid 1-Week YTD • Indices 30-Oct-20 Return Return concerns about the recent spike in Russell 3000 1,684.78 -5.89% 18.14% coronavirus cases coupled with Nasdaq 100 11,052.95 -5.47% 26.56% uncertainty about the prospects for a new stimulus bill. FTSE 100 5,577.27 -4.83% -26.05% DAX Index 11,556.48 -8.61% -12.77% • The downturn was restricted following Nikkei Average 22,977.13 -2.29% -2.87% the release of a report from the Straits Times 2,423.84 -4.48% -24.79% Commerce Department showing a Source: Refinitiv Value as on Oct 30, 2020 stronger than expected rebound by the U.S. economy in the third quarter of Europe 2020. • European markets settled in the red as worries about continued spikes in coronavirus cases across Europe and the U.S. and tougher lockdown restrictions in several countries, including the U.K., France, Germany and Spain, renewed concerns about economic recovery. Asia • Asian markets retreated as rising coronavirus infections and new restrictions introduced in European countries added to worries about the economic outlook.

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 rose 2 bps to close at 0.86% compared with 0.90 the previous week’s close of 0.84%. • U.S. Treasury prices rose initially during 0.85 the week under review as its safe haven appeal improved due to persisting 0.80 concerns over COVID-19 pandemic amid increase in coronavirus infection cases in U.S. and Europe. Uncertainty ahead of 0.75 the upcoming U.S. Presidential elections 26-Oct 27-Oct 28-Oct 29-Oct 30-Oct also contributed to the upside. Source: Refinitiv • Gains were extended as hopes faded for a stimulus deal in U.S. which kept market participants on tenterhooks. • However, the trend reversed towards the end of the week as U.S. Treasury prices fell on expectations of heavy issuance of new supply of U.S. debt that may come from a post-election stimulus package.

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

Global Commodity Movement Gold

11.40 Rebased to 10 • Gold prices fell as the safe haven appeal of the greenback improved amid persisting -3.86% concerns over the COVID-19 pandemic and 9.90 uncertainty over the upcoming U.S. -1.20% Presidential elections. -12.46% Commodity Prices 8.40 Brent Crude 30-Sep-20 15-Oct-20 30-Oct-20 Global • Brent crude prices slipped below $40 per Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl) barrel level amid persisting concerns over

Source: Refinitiv COVID-19 pandemic and worries on renewed lockdowns. Losses were extended Performance of various commodities as data from U.S. Energy Information Commodities Last Closing* 1-Week Ago Administration showed that oil inventory Brent Crude($/Barrel) 35.76 40.85 increased by 4.3 million barrels for the Gold ($/Oz) 1,877.95 1900.79 week ended Oct 23. Gold (Rs/10 gm) 50,645 51044 Baltic Dry Index Silver ($/Oz) 23.63 24.58 Silver (Rs/Kg) 60,471 62578 • The index fell due to sluggish capesize and Source: Refinitiv *Value as on Oct 30, 2020 panamax activities.

13 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Currencies Markets Rupee Rebased to 10 Currency Movement 10.30 • The weakened against the U.S. dollar as surging coronavirus cases in 0.28% 0.87% Europe and the U.S. dampened risk 0.22% appetite in the region. in terms INR) of 10.00 0.54% Euro

Prices ( • Euro plunged against the safe haven U.S. dollar after the ECB president flagged 9.70

Currency further monetary easing in December. 30-Sep-20 16-Oct-20 29-Oct-20 USD GBP Euro JPY Pound Source: Refinitiv • Sterling fell against the greenback amid Movement of Rupee vs Other Currencies surging coronavirus cases in Europe and the as well as a lack of progress Currency Last Closing* 1-Wk Ago on a U.S. stimulus package, increased US Dollar 73.97 73.58 losses. Pound Sterling 96.33 96.06 Yen EURO 86.97 86.78 • Yen gained marginally against the U.S. 100 Yen 70.87 70.26 dollar as safe haven improved amid surging coronavirus cases in Europe and U.S. Source: RBI Figures in INR , *Value as on Oct 29, 2020

14 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The Week that was… 26th Oct to 30th Oct

15 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The Week that was (Oct 26 – Oct 30)

Present Previous Date Events Value Value • Japan Leading Economic Index Final (Aug) 88.4 86.7 Monday, • U.S. New Home Sales MoM (Sep) -3.5% 3.0% Oct 26, 2020 • Germany Ifo Business Climate (Oct) 92.7 93.2 • U.S. Chicago Fed National Activity Index (Sep) 0.27 1.11 • Industrial Profits (YTD) YoY (Sep) -2.4% -4.4% Tuesday, • U.S. Durable Goods Orders MoM (Sep) 1.9% 0.4% Oct 27, 2020 • U.S. House Price Index MoM (Aug) 1.5% 1.1% • U.S. CB Consumer Confidence (Oct) 100.9 101.3 Wednesday, • U.S. Goods Trade Balance Adv (Sep) $-79.37B $-83.11B Oct 28, 2020 • Bank of Japan Interest Rate Decision -0.1% -0.1% • Germany Unemployment Change (Oct) -35K -10K Thursday, • Eurozone Economic Sentiment (Oct) 90.9 90.9 Oct 29, 2020 • U.S. GDP Growth Rate QoQ Adv (Q3) 33.1% -31.4% • European Central Bank Interest Rate Decision 0% 0% • Germany Inflation Rate YoY P (Oct) -0.2% -0.2% • Germany GDP Growth Rate YoY Flash (Q3) -4.3% -11.3% • Eurozone GDP Growth Rate YoY Flash (Q3) -4.3% -14.8% Friday, • U.S. PCE Price Index YoY (Sep) 1.4% 1.3% Oct 30, 2020 • India Federal Fiscal Deficit, INR (Sep) 9139.93 B 8703.47 B • India Infrastructure Output (YoY) (Sep) -0.8% -7.3%

16 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The Week Ahead 2nd Nov to 6th Nov

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

Day Event • India Markit Manufacturing PMI (Oct) Monday, • U.S. Markit Manufacturing PMI Final (Oct) Nov 2, 2020 • U.S. ISM Manufacturing PMI (Oct) • Germany Markit Manufacturing PMI Final (Oct) Tuesday, • U.S. Factory Orders MoM (Sep) Nov 3, 2020 • China Caixin Composite PMI (Oct) Wednesday, • Germany Markit Composite PMI Final (Oct) • Eurozone Markit Composite PMI Final (Oct) Nov 4, 2020 • U.K. Markit/CIPS Composite PMI Final (Oct) • U.S. ADP Employment Change (Oct) Thursday, • Bank of England Interest Rate Decision • U.S. Initial Jobless Claims (31 Oct) Nov 5, 2020 • Eurozone Retail Sales YoY (Sep)

Friday, • U.S. Fed Interest Rate Decision • U.S. Non-Farm Payrolls (Oct) Nov 6, 2020 • U.S. Unemployment Rate (Oct)

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.