07 Aug 2019
Markets for You
Global Indices
Global Indices 06-Aug Prev_Day Abs. Change
% Change
#
Russell 3000 1,265 1,245 19 1.55
Nasdaq 7,833 7,726 107 1.39
FTSE 7,172 7,224 -52 -0.72
Nikkei 20,585 20,720 -135 -0.65
Hang Seng 25,976 26,151 -175 -0.67
Indian Indices 06-Aug Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 36,977 36,700 277 0.75
Nifty 50 10,948 10,863 86 0.79
Nifty 100 11,059 10,970 89 0.81
Nifty 500 8,919 8,832 87 0.98
Nifty Bank 28,022 27,648 374 1.35
S&P BSE Power 1,906 1,889 18 0.94
S&P BSE Small Cap 12,495 12,285 211 1.72
S&P BSE HC 12,506 12,442 65 0.52
Date P/E Div. Yield P/E Div. Yield
6-Aug 25.33 1.27 26.97 1.35
Month Ago 28.62 1.18 29.04 1.24
Year Ago 24.12 1.17 28.26 1.18
Nifty 50 Top 3 Gainers
Company 06-Aug Prev_Day
% Change
#
Indiabulls HFC 514 477 7.82
Yes Bank 85 81 5.24
Bajaj Finance 3272 3160 3.55
Nifty 50 Top 3 Losers Domestic News
Company 06-Aug Prev_Day
% Change
#
Zee Ente. 312 331 -5.59
Cipla 500 519 -3.61
Power Grid 198 201 -1.52
Advance Decline Ratio
BSE NSE
Advances 1633 1329
Declines 813 498
Unchanged 119 102
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* 58535
MF Flows** 23818
*6
th
Aug 2019; **31
st
Jul 2019
Economic Indicator
YoY(%) Current Year Ago
CPI
3.18%
(Jun-19)
4.92%
(Jun-18)
IIP
3.10%
(May-19)
3.80%
(May-18)
GDP
5.80%
(Mar-19)
8.10%
(Mar-18)
07 August 2019
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
0.20%
(Feb-19)
6.60%
(Dec-18)
Quarter Ago
Inflow/Outflow
2898
-2171
2.86%
(Mar-19)
• Indian equity markets gained, overcoming a dismal start to the session.
The initial dip was due to trade war tensions after China devalued its
currency to combat U.S.’ tariff threat. Later, investor expectations of a 25
basis points interest rate cut by the Reserve Bank of India at its policy
meet on Aug 7, 2019, lifted the markets. Also, China took steps to
stabilise the yuan after the U.S. labelled the country as a currency
manipulator. Markets took positive cues from the finance minister’s
statement that measures will be taken ‘fairly quickly’ to improve the
economy.
• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 0.75% and
0.79% to close at 36,976.85 and 10,948.25, respectively. S&P BSE Mid-
Cap and S&P BSE Small Cap gained 1.44% and 1.72%, respectively.
• The overall market breadth on BSE was strong with 1,633 scrips
advancing and 813 scrips declining. A total of 119 scrips remained
unchanged.
• On the BSE sectoral front, S&P BSE Capital Goods was the major gainer,
while S&P BSE Energy was the major loser.
• According to media reports, the Ministry of Statistics and Programme
Implementation (Mo-SPI) has set up a working group to revise the
factory output – index of industrial production (IIP) base to 2017-18 from
2011-12 and see if global practices are followed in its estimation. This
comes amid concerns over the credibility of data in recent past. The IIP
gives a single representative figure to measure the general level of
industrial activity on a monthly basis.
• A former RBI governor has said that the government should borrow
only long-term fund from the overseas market. He added that the
amount should not exceed 1.5% of GDP under any condition. The former
governor said he does not have a negative view about overseas
sovereign borrowing but thinks India does not need to borrow from
abroad.
• Micro, small and medium enterprises’ representatives have raised
concerns over high interest rates, delays in loan disbursal and banks
insistence on collateral for working loans. They did this in a meeting with
the finance minister.
• A Rajya Sabha member has opposed a change in terms of reference of
the 15th Finance Commission on division of funds between the centre
and state. The member said it was an attempt to occupy more fiscal
space.
• After the re-designation as a union territory (UT), the reorganised
Jammu & Kashmir and Ladakh will not be eligible for the 15th finance
commission award. As a UT, their finances would be taken care of by
North Block directly. The 15th finance commission’s order is restricted as
per the terms of reference only for the Centre and states, though the
commission will take a final call after examining the re-organisation
notification in detail, media reports showed. UTs were excluded from the
finance commission's mandate after the divisible pool was enlarged in
2000 (11th finance commission), though UTs were part of the mandate
till the 10th finance commission.
• Asian equity markets fell after China confirmed that it is suspending
U.S. agricultural product imports in response to U.S. tariffs. The losses
were limited as the yuan stabilized above 7 per dollar, signalling the
People's Bank of China may not let the currency slip further as of now.
Today (as of Aug 7), Asian markets were mixed as investors looked
forward to People’s Bank of China to set its daily midpoint fix for the
Chinese yuan. . Nikkei was trading down 0.42% and Hang Seng was
trading up 0.13% (as at 8.a.m. IST).
• U.S. markets recovered after China’s central bank hinted that it plans
to keep its currency at a stronger than expected level. This eased
tensions about China using the yuan as a weapon in the trade war. The
bank’s response could have been a result of U.S. Treasury Department
labelling China a currency manipulator.
• European markets fell on escalating trade tensions though concerns
around China devaluing its currency eased after the Chinese central bank
hinted it would keep the currency stable. The bank did this to contest
U.S. labelling it a currency manipulator.
Markets for You
FII Derivative Trade Statistics 06-Aug
(Rs Cr) Buy
Sell Open Int.
Index Futures 4832.33 5987.88 19390.27
Index Options 141895.82 141288.30 51887.09
Stock Futures 14167.66 12945.70 88796.63
Stock Options 5746.03 5837.85 3985.01
Total 166641.84 166059.73 164059.00
06-Aug Prev_Day
Change
Put Call Ratio (OI) 1.12 1.02 0.10
Indian Debt Market
Put Call Ratio(Vol) 0.87 0.83 0.04
06-Aug Wk. Ago Mth. Ago
Year Ago
Call Rate 5.64% 5.53% 5.56% 6.29%
T-Repo 5.61% 5.56% 5.58% NA
Repo 5.75% 5.75% 5.75% 6.50%
Reverse Repo 5.50% 5.50% 5.50% 6.25%
91 Day T-Bill 5.46% 5.70% 5.85% 6.76%
364 Day T-Bill 5.78% 5.93% 6.05% 7.23%
10 Year Gilt 6.34% 6.39% 6.69% 7.77%
G-Sec Vol. (Rs.Cr) 66675 49385 126281 18937
Currency Market Update
FBIL MIBOR* 5.70% 5.75% 5.69% 6.46%
3 Month CP Rate 5.95% 6.30% 6.90% 7.55%
5 Year Corp Bond 7.78% 7.71% 7.89% 8.64%
1 Month CD Rate 5.65% 5.71% 5.90% 6.60%
3 Month CD Rate 5.95% 6.28% 6.28% 6.98%
1 Year CD Rate 6.75% 6.87% 7.42% 7.95%
Commodity Market Update
Currency 06-Aug Prev_Day
Change
USD/INR 70.72 70.36 0.36
GBP/INR 85.99 85.26 0.74
EURO/INR 79.25 78.27 0.98
International News
JPY/INR 0.66 0.66 0.00
Commodity 06-Aug Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 53.55 58.04 57.03 68.96
Brent Crude($/bl) 57.77 61.69 64.82 72.15
Gold( $/oz) 1474 1431 1400 1206
Gold(Rs./10 gm) 36463 34801 34655 29491
Source: Thomson Reuters Eikon
*As on previous trading day
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
07 August 2019
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
that since Reliance Nippon Life Asset Management Company Limited (RNLAM) (formerly Reliance Capital Asset Management Limited) has not independently verified the accuracy or authenticity of
such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrive data; RNLAM does not in any manner assures
the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect RNLAM’s views or opinions, which in turn may have been
formed on the basis of such data or information. The Sponsor(s), the Investment Manager, the Trustee or any of their respective directors, employees, affiliates or representatives do not assume any
responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such data or information. Whilst no action has been solicited based upon the information provided herein, due
care has been taken to ensure that the facts are accurate and opinions given are fair and reasonable, to the extent possible. This information is not intended to be an offer or solicitation for the
purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own investigations. Before making any investments, the
readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor(s), the Investment Manager, the Trustee,
their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on
account of lost profits arising from the information contained in this material.
Readers are requested to click here for ICRON disclaimer - http://www.icraonline.com/legal/standard-disclaimer.html
Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
• Nifty Aug 2019 Futures stood at 10,978.65, a premium of 30.40 points
above the spot closing of 10,948.25. The turnover on NSE’s Futures and
Options segment rose to Rs. 9,66,435.49 crore on Aug 6, 2019,
compared with Rs. 9,57,212.88 crore on Aug 5, 2019.
• The Put-Call ratio stood at 0.82 compared with the previous session’s
close of 0.77.
• The Nifty Put-Call ratio stood at 1.12 compared with the previous
session’s close of 1.01.
• Open interest on Nifty Futures stood at 20.93 million, compared with
the previous session’s close of 21.04 million.
• Bond yields eased ahead of the Monetary Policy Committee meeting
due on Aug 7, 2019, wherein the market expects the policy makers to
trim policy rate. Besides, decline in U.S. Treasury yield and softness in
crude prices also supported the overall sentiment.
• Yield on the 10-year benchmark paper (7.26% GS 2029) fell 5 bps to
close at 6.34% compared with the previous close of 6.39% after trading
in a range of 6.32% to 6.40%.
• Banks borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 6,430 crore (gross) on Aug 6, 2019 compared
with borrowings of Rs. 3,539 crore (gross) on Aug 5, 2019. Sale of
securities under Reserve Bank of India’s (RBI) reverse repo window stood
at Rs. 21,272 crore on Aug 5, 2019.
• Banks borrowed Rs. 375 crore under the central bank’s Marginal
Standing Facility on Aug 5, 2019 compared with borrowings of Rs. 2,505
crore on Aug 2, 2019.
• The Indian rupee weakened against the greenback as investors
resorted to safe-haven assets amid escalating tensions between U.S. and
China. The rupee closed at 70.81 a dollar compared with the previous
close 70.74.
• The euro marginally fell against the greenback as the latter
rebounded. China's central bank stated that it would not use currency as
a tool to deal with trade disputes. The euro closed at 1.1198 compared
with the previous close of 1.1202.
• Gold prices grew after China’s central bank stated that it would not let
the yuan fall too sharply.
• Brent crude prices fell amid escalating trade tensions between China
and U.S. Oil prices closed at $57.77 per barrel compared with the
previous close of $58.46.
• Destatis data showed Germany's factory orders rebounded in Jun 2019
driven by strong demand from non-euro area economies. Factory orders
grew by more than expected MoM in Jun, offsetting a 2% drop in May
2019. Jun's increase was driven by a 5% rise in foreign orders.
• Preliminary data from the Cabinet Office showed Japan's leading index
fell to the lowest level in nearly nine-and-a-half years in Jun 2019. The
leading index, which measures the future economic activity, fell to 93.3
in Jun from 94.9 in May 2019. This was the lowest since Feb 2010, when
the score was 92.5.
Markets for You
Thank you for
your time.
