Markets – Global & India
- The US Markets were up by between 1% to 2.5%.
- The Brent Crude Oil price is currently at $119 per barrel.
- India’s Market Cap to GDP ratio currently stands at 103%.
- The US 10-Year G-Sec Yield is at 3.31% while India’s 10-Year G-Sec Yield is at 7.59%.
- Nifty PE ratio at 19.42 and Sensex PE ratio at 21.46.
- Rupee at 78.13 per dollar while US Dollar index at 105.48.
- US Fed hikes interest rates by 75 bps, biggest since 1994.
- Fed could hike rates by 0.75% again in July.
- Rates to be at 3.4% by year-end from the current range of 1.5% to 1.75%; implying a 1.75% tightening this year. 3.8% in 2023 and 3.4% in 2024.
- Fed strongly committed to returning inflation to its 2% objective.
- GDP growth forecasts were cut to 1.7% in 2022 and 2023, from 2.8% and 2.2% respectively in March.
- Reiterates path on-balance-sheet reduction that took effect June 1, shrinking bond portfolio by $47.5 billion a month and stepping up to $95 billion in September.
- Dollar extends gains after Fed Rate decision.
- Exports rose 20.6% to $38.94 billion in May; the trade deficit at a record $24.29 billion.
- Housing and roads were among the biggest CAPEX gainers in FY22.
- Expect telecom companies to buy spectrum worth Rs. 1 Lakh Cr. to Rs. 1.1 Lakh Cr. in 5G auction, as per ICRA.
- SBI raises lending rates; HDFC Bank and Bank of Baroda increase deposit rates.
- PhonePe prepping for IPO; seeks valuation of $8-$10 billion, as per reports.
- Indian MicroFinance industry’s loan book grows 10% to Rs. 2.85 Lakh Cr. in FY22.
- The cement sector’s capacity utilization dropped to 65% as per Fitch Ratings.