Mutual Fund News of 1st August 2018

01 Aug 2018

Markets for You

Global Indices

Global Indices 31-Jul Prev_Day Abs. Change

% Change

Dow Jones 25,415 25,307 108 0.43

Nasdaq 7,672 7,630 42 0.55

FTSE 7,749 7,701 48 0.62

Nikkei 22,554 22,545 9 0.04

Hang Seng 28,583 28,733 -150 -0.52

Indian Indices 31-Jul Prev_Day Abs. Change

% Change

S&P BSE Sensex 37,607 37,494 112 0.30

Nifty 50 11,357 11,320 37 0.33

Nifty 100 11,634 11,595 39 0.34

Nifty Bank 27,764 27,843 -78 -0.28

SGX Nifty 11,377 11,344 33 0.29

S&P BSE Power 1,975 1,974 1 0.06

S&P BSE Small Cap 16,584 16,540 44 0.26

S&P BSE HC 14,206 14,123 83 0.59

Date P/E Div. Yield P/E Div. Yield

31-Jul 23.61 1.17 28.22 1.18

Month Ago 22.54 1.26 25.90 1.22

Year Ago 23.70 1.20 25.69 0.95

Nifty 50 Top 3 Gainers

Company 31-Jul Prev_Day

% Change

Tech Mahindra 681 655 3.86

RIL 1186 1151 3.01

Dr.Reddy 2128 2067 2.93

Nifty 50 Top 3 Losers Domestic News

Company 31-Jul Prev_Day

% Change

Axis Bank 550 570 -3.38

Indiabulls HFC 1297 1341 -3.26

Eicher Motors 27799 28595 -2.78

Advance Decline Ratio

BSE NSE

Advances 1465 1007

Declines 1185 776

Unchanged 158 83

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -3781

MF Flows** 74115

*31

Jul 2018; **20

Jul 2018

Economic Indicator

YoY(%) Current Year Ago

CPI

5.00%

(Jun-18)

1.46%

(Jun-17)

IIP

3.20%

(May-18)

2.90%

(May-17)

GDP

7.70%

(Mar-18)

6.10%

(Mar-17)

01 August 2018

Since May-17, MOSPI has revised base year of IIP & WPI from 2004-05 to 2011-12, and for CPI

from 2010 to 2012

Indian Equity Market

Indices Performance

P/E Dividend Yield

Sensex

Nifty

6.90%

(Feb-18)

7.00%

(Dec-17)

Quarter Ago

Inflow/Outflow

-199

-145

4.28%

(Mar-18)

• Domestic equity market initially traded lower as investors remained

cautious ahead of the third bi- monetary policy meet due on Aug 1, 2018

and the fiscal deficit figures for Q1FY19. Upcoming policy rates decision

from major central banks across the globe also kept investors wary.

However, trend reversed towards the end and key benchmark indices

touched new highs. One of the leading large cap companies set a new

record by crossing Rs. 7.51 lakh crore in market value.

• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.30% and

0.33% to close at 37,606.58 and 11,356.50, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap grew 0.33% and 0.26%, respectively.

• The overall market breadth on BSE was strong with 1465 scrips

advancing and 1185 scrips declining. A total of 158 scrips remained

unchanged.

• On the BSE sectoral front, S&P BSE Energy stood as the major gainer,

up 1.89% followed by S&P BSE Realty that grew 1.1%. S&P BSE Consumer

Durables and S&P BSE Capital Goods grew 1.01% and 0.95%. S&P BSE

Information Technology and S&P BSE Fast Moving Consumer Goods grew

0.81% and 0.72%.

• Government data showed that India’s fiscal deficit for Apr-Jun 2018

came in at Rs. 4.29 lakh crore, or 68.7% of the budgeted target for FY19

against 80.8% in the year-ago period. Net tax receipts were Rs. 2.37 lakh

crore or 16.0% of the budget estimate for FY19 compared to 14.5% in the

corresponding period of the previous year. The government’s total

expenditure for the period from Apr to Jun of 2018 stood at Rs. 7.08 lakh

crore or 29% of the budget estimate for FY19 compared to 30.3% in the

in the corresponding period of the previous year. Capital expenditure

stood at Rs. 8.70 lakh crore or 29.0% of the budget estimate for FY19,

more than 22.1% in the same period of the previous year. India aims to

cut the deficit to 3.3% of GDP in 2018-19. In 2017-18, India’s fiscal deficit

was at 3.5% of GDP.

• Government data showed that the growth of index of eight core

industries rose to a seven-month high of 6.7% in Jun 2018 from 4.3% in

the previous month and 1.0% in the same month of the previous year.

The cement sector witnessed a maximum growth of 13.2% during the

period under review followed by refinery products sector and coal sector

which grew 12.0% and 11.5% respectively. However, crude oil sector and

natural gas sector witnessed a contraction of 3.4% and 2.7% respectively.

Crude oil sector and natural gas sector thus contracted for the seventh

consecutive month and second consecutive month respectively.

• Jindal Steel and Power Ltd (JSPL) has won 20% of the Rs. 2,500 crore

global tender by the Indian Railways. The tender is for supply of long rails

of around 4.87 lakh metric tonne to fulfil the shortfall of supply from

Steel Authority of India Ltd. This is the first time in 30 years that private

sector has been included in railways procurement.

expenditure of Rs. 11,697.92 crore under the turnaround plan.

• According to media reports, Tata Motors Ltd. consolidated net loss

stood at Rs. 1,902.4 crore in the quarter ended Jun compared to a net

profit of Rs. 3,199 crore in the same period of the previous year. The loss

can be attributed to its Jaguar Land Rover in U.K. that sold less luxury

cars to dealerships in China while cost of raw materials grew in the same

time.

• Asian markets traded in mixed ahead of the U.S. Federal Reserve and

Bank of England’s monetary policy announcements later in the week.

Lower-than-expected Chinese manufacturing data for Jul and slower

industrial output in Japan for Jun weighed on the sentiments. Today (as

of Aug 1), Asian markets opened almost higher following positive cues

from Wallstreet’s last session and amid reports that U.S. and China might

restart official talks on resolving trade dispute. Nikkei and Hangseng

grew 0.49% and 0.46%, respectively (as at 8.a.m. IST).

• As per the last close, European markets closed higher following reports

that U.S. and China are attempting to restart trade talks to avoid a trade

war. Positive corporate earnings from some major companies boosted

the indices.

• As per the last close, U.S markets closed almost higher following

reports that U.S. and China are trying to restart talks aimed to resolve

the trade conflict between the two countries. Meanwhile, investors

preferred to remain on the sidelines ahead of Fed's monetary policy

announcement on Aug 1, 2018.

Markets for You

FII Derivative Trade Statistics 31-Jul

(Rs Cr) Buy

Sell Open Int.

Index Futures 2405.72 2647.89 21117.95

Index Options 49720.70 49575.01 49229.43

Stock Futures 13521.32 12517.70 78679.19

Stock Options 7041.45 7068.21 4789.25

Total 72689.19 71808.81 153815.82

31-Jul Prev_Day

Change

Put Call Ratio (OI) 1.73 1.72 0.01

Indian Debt Market

Put Call Ratio(Vol) 1.11 1.04 0.07

31-Jul Wk. Ago Mth. Ago

Year Ago

Call Rate 6.16% 6.27% 6.21% 6.10%

CBLO 6.24% 6.38% 6.20% 6.18%

Repo 6.25% 6.25% 6.25% 6.25%

Reverse Repo 6.00% 6.00% 6.00% 6.00%

91 Day T-Bill 6.69% 6.63% 6.48% 6.12%

364 Day T-Bill 7.24% 7.21% 7.11% 6.22%

10 Year Gilt 7.77% 7.78% 7.90% 6.47%

G-Sec Vol. (Rs.Cr) 26766 25975 27152 36804

Currency Market Update

FBIL MIBOR 6.25% 6.39% 6.25% 6.25%

3 Month CP Rate 7.50% 7.80% 7.55% 6.60%

5 Year Corp Bond 8.64% 8.72% 8.79% 7.43%

1 Month CD Rate 6.89% 6.64% 6.81% 6.22%

3 Month CD Rate 7.30% 7.04% 7.00% 6.21%

1 Year CD Rate 8.06% 7.97% 8.08% 6.52%

Commodity Market Update

Currency 31-Jul Prev_Day

Change

USD/INR 68.61 68.75 -0.15

GBP/INR 90.09 90.15 -0.06

EURO/INR 80.37 80.16 0.21

International News

JPY/INR 0.62 0.62 0.00

Commodity 31-Jul Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 69.25 70.02 74.08 50.16

Brent Crude($/bl) 74.80 74.17 76.78 52.18

Gold( $/oz) 1223 1224 1252 1269

Gold(Rs./10 gm) 29726 29897 30341 28513

Source: Thomson Reuters Eikon

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

01 August 2018

The information herein is meant only for general reading purposes and contains all factual and statistical information pertaining to Industry and markets which have been obtained from independent

third party sources and which are deemed to be reliable. The information provided cannot be considered as guidelines, recommendations or as a professional guide for the readers. It may be noted

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty August 2018 Futures closed at 11,371.6, a premium of 15.10

points, above the spot closing of 11,356.50. The turnover on NSE’s

Futures and Options segment increased to Rs. 5,29,372.26 on Jul 31

from Rs. 5,15,736.20 on Jul 30.

• The Put-Call ratio stood at 0.97 against previous session’s close of

0.96.

• The Nifty Put-Call ratio stood at 1.73 compared with the previous

session’s close of 1.72.

• Open interest on Nifty Futures stood at 26.10 million as against the

previous session’s close at 24.80 million.

• Bond yields fell after going up for two consecutive days as market

participants resorted to bargain hunting ahead of the outcome of the

third bi-monthly monetary policy review due Aug 1, 2018. The market

perception also remained divided regarding the outcome of the same.

While a section of market participants was of the view that the

Monetary Policy Committee may hike interest rates, others expect a

rate hike by the end of 2018 or in the fourth quarter of FY19

• Yield on the 10-year benchmark paper (7.17% GS 2028) went down 2

bps to close at 7.77% as against its previous close of 7.79%. During the

session, bond yields traded in the range of 7.77% and 7.80%.• Banks

borrowed Rs. 2,115 crore under the central bank’s Marginal Standing

Facility on Jul 30 compared with borrowing of Rs. 600 crore on Jul 27.

• The rupee rose against the greenback as foreign banks sold dollars.

Expectation of inflows from share sale in a major domestic bank also

supported Indian currency. The rupee rose 0.19% to close at a two-week

high of 68.54 against previous close of 68.67.

• The euro was almost steady against the greenback as market

participants remained on the sidelines and awaited the outcome of the

Fed's monetary policy review due Aug 1, 2018. Euro was last seen

trading at $1.1710, up 0.05% compared with the previous close of

$1.1704.

• Gold prices inched up as investors remained cautious ahead of the U.S.

FOMC rate decision which will provide further cues on the economic

outlook.

• Brent crude prices lowered on oversupply concerns after a survey

revealed that the OPEC output in Jul was the highest in 2018.

• National Association of Realtors data showed U.S. pending home sales

rebounded more than expected in Jun 2018. The pending home sales

index increased 0.9% to 106.9 in Jun after falling 0.5% to 105.9 in May

2018. Expectations were for pending home sales to increase 0.1%.

Annually, pending home sales decreased 2.5%, the sixth consecutive YoY

decrease.

• According to official data, second quarter saw the euro

area economy growing at the slowest pace in two years. Inflation

surpassed the European Central Bank’s target yet again in Jul 2018.

Eurostat’s preliminary flash estimate showed gross domestic product

grew 0.3% in the second quarter against 0.4% in the first quarter. On an

annual basis, GDP growth eased to 2.1 percent from 2.5 percent in the

previous quarter.

Markets for You

Thank you for

your time.