Mutual Fund News of 9th August 2018

09 Aug 2018

Markets for You

Global Indices

Global Indices 08-Aug Prev_Day Abs. Change

% Change

Dow Jones 25,584 25,629 -45 -0.18

Nasdaq 7,888 7,884 5 0.06

FTSE 7,777 7,718 58 0.75

Nikkei 22,644 22,663 -18 -0.08

Hang Seng 28,359 28,249 110 0.39

Indian Indices 08-Aug Prev_Day Abs. Change

% Change

S&P BSE Sensex 37,888 37,666 222 0.59

Nifty 50 11,450 11,389 61 0.53

Nifty 100 11,732 11,676 56 0.48

Nifty Bank 28,062 27,876 187 0.67

SGX Nifty 11,478 11,426 53 0.46

S&P BSE Power 1,988 1,994 -6 -0.28

S&P BSE Small Cap 16,868 16,862 6 0.03

S&P BSE HC 14,503 14,551 -48 -0.33

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

8-Aug 24.38 1.16 28.23 1.17

Month Ago 22.71 1.24 26.62 1.21

Year Ago 24.05 1.22 25.50 0.97

Nifty 50 Top 3 Gainers

Company 08-Aug Prev_Day

% Change

ONGC 173 168 2.95

RIL 1218 1184 2.83

Bajaj Finance 2813 2747 2.40

Nifty 50 Top 3 Losers Domestic News

Company 08-Aug Prev_Day

% Change

Lupin 826 867 -4.74

Maruti 9207 9412 -2.17

HPCL 283 289 -2.04

Advance Decline Ratio

BSE NSE

Advances 1296 880

Declines 1442 895

Unchanged 131 111

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -2739

MF Flows** 72502

Aug 2018; **3

Aug 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)

09 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

117

113

4.28%

(Mar-18)

• Indian equity markets ended at all-time highs as an index heavyweight

gained after it finalised a stake buy in a leading entertainment and media

company. Positive cues emanated from global markets on expectations

of higher corporate earnings. However, investors remained cautious of

U.S. – China trade tensions after the U.S. administration indicated to

impose 25% tariffs on $16 billion in Chinese imports starting on Aug 23,

2018. Meanwhile, the International Monetary Fund (IMF) stated that

India's central bank need to gradually tighten monetary policy further

due to rising inflation numbers.

• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.59% and

0.53% to close at 37,887.56 and 11,450.00, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap grew 0.61% and 0.03%, respectively.

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

up 1.86% followed by S&P BSE Telecom that grew 1.71%. S&P BSE

Consumer Durables and S&P BSE Bankex grew 1.25% and 0.78%. S&P BSE

Realty and S&P BSE Utilities were the major losers, down 0.03% and

0.06%.

• The Lok Sabha has approved a gross additional expenditure of Rs.

11,697.92 crore under the first batch of supplementary demands for

grants for the current fiscal. The government will seek Parliament's

approval to spend Rs. 1,791.62 crore under the Agriculture Ministry, Rs.

1,500 crore under Textiles Ministry and Rs. 1,057.84 crore under the

Defence Ministry. Rs. 1,708 crore are being sought for the Petroleum

Ministry.

• The International Monetary Fund (IMF) has described the Goods and

Services Tax (GST) as a "milestone reform" in its annual country report.

At the same time the bank has pushed for a simplified structure as it

feels multiple rate structures and other features will raise compliance

and administrative costs. IMF said GST can be progressive and could

preserve revenue neutrality.

• The next draft of ecommerce policy may be brought within the next 10

days by the government. The first draft was tabled by the department of

commerce last week. The draft includes a proposal to allow 49% foreign

direct investment in inventory model on the condition that Indian goods

are sold.

• Hindustan Petroleum Corp. Ltd (HPCL) registered 86% increase in profit

for the quarter ended Jun 2018. Strong refining margins were behind the

good show. Net profit surged to Rs. 1,719 crore in the period from Rs.

925 crore in the corresponding quarter in the previous year.

• The Competition Commission has given U.S. retail behemoth Walmart’s

proposal to takeover India’s Flipkart a go-ahead. Walmart will acquire

77% stake in Flipkart at $20.8 billion.

• IIFL Wealth Management is close to taking over majority stake in

Chennai-based Wealth Advisors at Rs. 500 crore in a mix of cash and

stock options. Wealth Advisors is a private wealth and family officer

manager. Mumbai-based IIFL Wealth Management was founded in 2008

and has Rs. 1.4 lakh crore assets under management.

• India’s Future Group has formed a joint venture with New Zealand's

Fonterra, the world’s biggest dairy exporter. The two will launch dairy

products in India.

• Asian markets traded in mixed as investors remained wary on news

that U.S. is going to start imposing 25% tariff on more Chinese goods

worth $16 billion in Aug. However, Chinese export stood higher than

expectations in Jul albeit the trade surplus fell over the month. Today (as

of Aug 9), Asian markets opened almost lower following weak cues from

Wallstreet’s last session amid trade war tensions. Nikkei and Hangseng

fell 0.30% and 0.12%, respectively (as at 8.a.m. IST).

• As per the last close, European markets closed almost lower amid trade

war concerns after China retaliated 25% tariff on $16 billion of U.S.

goods. However, gains in one of the chemical major stock following

reports of its stake sale in a rubber-maker company capped the losses.

Also, gains in auto and technology stocks boosted the indices.

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

announcement of 25% tariff by Chinese Ministry of Commerce on $16

billion worth of U.S. goods. However, gains in technology stocks capped

the losses.

Markets for You

FII Derivative Trade Statistics 08-Aug

(Rs Cr) Buy

Sell Open Int.

Index Futures 1732.24 1600.94 26636.51

Index Options 50403.69 52075.29 60394.18

Stock Futures 11999.53 12020.70 83275.79

Stock Options 6949.88 7204.18 8824.33

Total 71085.34 72901.11 179130.81

08-Aug Prev_Day

Change

Put Call Ratio (OI) 1.77 1.68 0.09

Indian Debt Market

Put Call Ratio(Vol) 1.20 1.15 0.06

08-Aug Wk. Ago Mth. Ago

Year Ago

Call Rate 6.43% 6.17% 6.15% 5.90%

CBLO 6.45% 6.19% 4.99% 6.01%

Repo 6.50% 6.50% 6.25% 6.00%

Reverse Repo 6.25% 6.25% 6.00% 5.75%

91 Day T-Bill 6.65% 6.77% 6.33% 6.12%

364 Day T-Bill 7.27% 7.26% 7.16% 6.18%

10 Year Gilt 7.78% 7.70% 7.87% 6.46%

G-Sec Vol. (Rs.Cr) 20205 55981 17580 25276

Currency Market Update

FBIL MIBOR 6.47% 6.25% 6.19% 6.02%

3 Month CP Rate 7.55% 7.65% 7.20% 6.59%

5 Year Corp Bond 8.61% 8.57% 8.86% 7.37%

1 Month CD Rate 6.63% 6.78% 6.30% 6.13%

3 Month CD Rate 7.18% 7.40% 7.00% 6.19%

1 Year CD Rate 7.99% 8.10% 8.12% 6.49%

Commodity Market Update

Currency 08-Aug Prev_Day

Change

USD/INR 68.65 68.80 -0.15

GBP/INR 88.82 89.14 -0.32

EURO/INR 79.72 79.56 0.16

International News

JPY/INR 0.62 0.62 0.00

Commodity 08-Aug Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 66.87 68.42 73.73 49.02

Brent Crude($/bl) 69.90 72.92 74.57 52.54

Gold( $/oz) 1213 1215 1254 1260

Gold(Rs./10 gm) 29418 29664 30540 28447

Source: Thomson Reuters Eikon

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

09 August 2018

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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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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

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty August 2018 Futures closed at 11,467.65, a premium of 17.65

points, above the spot closing of 11,450.00. The turnover on NSE’s

Futures and Options segment increased to Rs. 9,93,827.11 on Aug 8

compared with Rs. 5,62,374.58 on Aug 7.

• The Put-Call ratio stood at 0.98 against previous session’s close of

0.99.

• The Nifty Put-Call ratio stood at 1.77 compared with the previous

session’s close of 1.68.

• Open interest on Nifty Futures stood at 28.97 million as against the

previous session’s close at 28.02 million.

• Bond yields closed almost steady as market participants preferred to

stay on the sidelines due to lack of cues. In addition, the rise in oil prices

on supply worries after U.S. introduced sanction against Iran raised

inflationary concerns, especially ahead of the key retail inflation data for

Jul 2018 due on Aug 13, 2018.

• Yield on the 10-year benchmark paper (7.17% GS 2028) declined 1 bps

to close at 7.78% as against its previous close of 7.79%. During the

session, bond yields traded in the range of 7.77% and 7.79%.

• Banks’ borrowings under the repo window of the Liquidity Adjustment

Facility (LAF) stood at Rs. 8,941 crore (gross) on Aug 8, compared with Rs.

4,281 crore (gross) borrowed on Aug 7. Sale of securities under the

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 10,320

crore on Aug 7.

• Banks did not borrow under the central bank’s Marginal Standing

Facility on Aug 7 and Aug 6.

• The rupee strengthened against the greenback for the second

consecutive day after taking positive cues from the gains in the domestic

equity market and continued weakness in dollar as market participant

look for fresh triggers. The rupee improved 0.09% to settle at 68.62

against the previous close of 68.68.

• The euro inched down against the greenback following escalation in

trade tensions between U.S. and China. Euro was last seen trading at

$1.1590, down 0.06% relative to the previous close of $1.1597.

• Gold prices saw little change as the equity market gained strength from

strong corporate results.

• Brent crude slipped after a Chinese data revealed a slowdown in

demand, evident from the drop in crude oil imports with July seeing the

third-lowest import.

• Bank of France data showed the country’s economic growth could

improve in the third quarter. Gross domestic product is expected to

expand 0.4% in the third quarter against 0.2% in the second quarter.

Manufacturing business sentiment index remained steady at 101 in Jul

2018. Industrial activity is expected to increase more rapidly in Aug

2018. Confidence indicator for services dropped to 102 in Jul 2018 from

103 in Jun 2018.

• General Administration of Customs data showed China's exports grew

more than expected in Jul 2018 even as U.S. imposed tariffs on $34

billion Chinese goods. Exports went up 12.2% YoY in Jul, which is greater

than expectations. Imports increased 27.3% YoY, way above

expectations of 16.5% increase.

Markets for You

Thank you for

your time.