09 Aug 2019
Markets for You
Global Indices
Global Indices 08-Aug Prev_Day Abs. Change
% Change
#
Russell 3000 1,297 1,270 28 2.18
Nasdaq 8,039 7,863 176 2.24
FTSE 7,286 7,199 87 1.21
Nikkei 20,593 20,517 77 0.37
Hang Seng 26,121 25,997 124 0.48
Indian Indices 08-Aug Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 37,327 36,691 637 1.74
Nifty 50 11,032 10,856 177 1.63
Nifty 100 11,144 10,971 174 1.58
Nifty 500 8,980 8,855 125 1.41
Nifty Bank 28,110 27,702 408 1.47
S&P BSE Power 1,929 1,904 26 1.35
S&P BSE Small Cap 12,574 12,482 92 0.74
S&P BSE HC 12,702 12,570 132 1.05
Date P/E Div. Yield P/E Div. Yield
8-Aug 25.97 1.24 27.20 1.34
Month Ago 27.84 1.21 28.42 1.27
Year Ago 24.38 1.16 28.23 1.17
Nifty 50 Top 3 Gainers
Company 08-Aug Prev_Day
% Change
#
HCL Tech 1088 1023 6.41
Tata Motors 124 117 5.66
M&M 540 518 4.10
Nifty 50 Top 3 Losers Domestic News
Company 08-Aug Prev_Day
% Change
#
Tata Steel 367 382 -3.80
Cipla 503 518 -2.94
Lupin 761 782 -2.68
Advance Decline Ratio
BSE NSE
Advances 1351 1057
Declines 1069 742
Unchanged 140 120
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* 56159
MF Flows** 23818
*8
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)
09 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
-512
2.86%
(Mar-19)
• Indian equity markets gained after media reports said the government
could exempt foreign portfolio investors (FPIs) from an increase in taxes.
The proposal to increase tax was announced in the Union Budget 2019-
20 and since then equity markets have witnessed huge outflows by FPIs.
Also, the Reserve Bank of India (RBI) cutting interest rates by a more
than expected 35 basis points and promising liquidity support to the
financial sector on Aug 7, 2019, at its policy meet supported sentiment.
• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 1.74% and
1.63% to close at 37,327.36 and 11,032.45, respectively. S&P BSE Mid-
Cap and S&P BSE Small Cap gained 0.42% and 0.74%, respectively.
• On the BSE sectoral front, all the sectors gained. S&P BSE Energy was
the major gainer, up 3.15%, followed by S&P BSE Auto and S&P BSE IT,
which gained 2.77% and 1.98%, respectively. S&P BSE Teck and S&P BSE
Oil & Gas gained 1.94% and 1.81%, respectively. S&P BSE Telecom and
S&P BSE Realty gained 1.74% and 1.65%, respectively.
• Media reports showed the tax department has sent notices to GST-
registered businesses that have reported 20% or more decline in annual
revenue. Notices related to mismatch in declaration between GSTR-3B
(summary return) and GSTR-1 (outward supplies detail) have been a
mainstay but now the department is comparing firms’ earnings under
GST with that of erstwhile service and excise regime.
• The Reserve Bank of India (RBI) has taken two important steps in its
policy meet held recently to make access to credit easier for the crisis-
ridden non-banking financial companies (NBFCs). These are – allowing
banks to on-lend to priority sectors through NBFCs and relaxation in
norms in banks’ counter-party exposure limit to single NBFC. So, now if a
bank lends to NBFCs for onward lending to the priority sectors, it will
automatically be considered as priority sector lending for the bank. On-
lending through non-banks to agriculture (investment credit) can be up
to Rs. 10 lakh, micro and small enterprises up to Rs. 20 lakh and housing
up to Rs. 20 lakh per borrower. On-lending to these three categories of
NBFCs would be classified as priority sector lending. Detailed guidelines
will be issued by month-end.
• American jeweller Tiffany & Co. plans to form a joint venture with a
retail unit of Reliance Industries Ltd. to gain a foothold in the lucrative
Indian market. The New York-based jeweller plans to open stores in Delhi
and Mumbai by 2020.
• HCL Technologies’ net profit declined 13.5% sequentially to Rs. 2,220
crore for the Apr-Jun 2019 quarter. The net profit was Rs. 2,568 in the
previous quarter. Revenue grew 4.2% QoQ and 17.0% YoY in constant
currency terms.
• Hindustan Petroleum Corp Ltd’s net profit declined 53% to Rs. 811
crore in the Jun 2019 quarter mainly because of inventory losses caused
by fall in oil prices and lower refinery margins. Net profit was Rs. 1,719
crore in the year-ago period.
• Asian equity markets majorly gained after China reported better than
expected export numbers for Jul 2019. Also, oil prices recovered from
the nearly 5% drop in the previous session on expectations that
producers could cut supply to support the market. Today (as of Aug 9),
Asian markets traded higher as investors looked forward to the release
of Chinese inflation data. Both Nikkei and Hang Seng were trading up
0.58% and 0.46%, respectively (as at 8.a.m.IST).
• European markets gained as a steep decline in bond yields steadied
and eased concerns over slowing economic growth. Investors kept an
eye on the yuan and China’s central bank set the official reference rate
for the Chinese currency at a level not as bad as expected.
• U.S. markets gained as global bond yields recovered from their steep
fall and investors took stock of better than expected Chinese trade data.
Markets for You
FII Derivative Trade Statistics
08-Aug
(Rs Cr) Buy
Sell Open Int.
Index Futures 3860.29 4840.89 20508.80
Index Options 316650.05 315663.90 53210.86
Stock Futures 13956.43 13347.86 89246.37
Stock Options 5656.29 5660.09 4221.91
Total 340123.06 339512.74 167187.94
08-Aug Prev_Day
Change
Put Call Ratio (OI) 0.98 1.12 -0.14
Indian Debt Market
Put Call Ratio(Vol) 0.76 0.87 -0.11
08-Aug Wk. Ago Mth. Ago
Year Ago
Call Rate 5.27% 5.56% 5.65% 6.43%
T-Repo 5.35% 5.59% 5.68% NA
Repo 5.40% 5.75% 5.75% 6.50%
Reverse Repo 5.15% 5.50% 5.50% 6.25%
91 Day T-Bill 5.35% 5.53% 5.80% 6.65%
364 Day T-Bill 5.65% 5.88% 6.01% 7.27%
10 Year Gilt 6.40% 6.42% 6.56% 7.78%
G-Sec Vol. (Rs.Cr) 44834 55044 102561 20205
Currency Market Update
FBIL MIBOR* 5.75% 5.75% 5.69% 6.45%
3 Month CP Rate 5.85% 6.10% 6.85% 7.55%
5 Year Corp Bond 7.72% 7.84% 7.83% 8.64%
1 Month CD Rate 5.50% 5.44% 5.93% 6.63%
3 Month CD Rate 5.84% 6.20% 6.15% 7.18%
1 Year CD Rate 6.63% 6.62% 7.39% 7.99%
Commodity Market Update
Currency 08-Aug Prev_Day
Change
USD/INR 70.85 70.96 -0.11
GBP/INR 86.15 86.23 -0.07
EURO/INR 79.39 79.50 -0.11
International News
JPY/INR 0.67 0.67 0.00
Commodity 08-Aug Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 52.55 53.59 57.32 66.87
Brent Crude($/bl) 55.43 62.04 65.48 69.90
Gold( $/oz) 1500 1445 1395 1213
Gold(Rs./10 gm) 37047 34572 34437 29418
Source: Thomson Reuters Eikon
*As on previous trading day
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
09 August 2019
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Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
• Nifty Aug 2019 Futures stood at 11,063.95, a premium of 31.50 points
above the spot closing of 11,032.45. The turnover on NSE’s Futures and
Options segment rose to Rs. 27,72,449.26 crore on Aug 8, 2019,
compared with Rs. 15,34,441.36 crore on Aug 7, 2019.
• The Put-Call ratio stood at 0.76 compared with the previous session’s
close of 0.83.
• The Nifty Put-Call ratio stood at 1.25 compared with the previous
session’s close of 0.98.
• Open interest on Nifty Futures stood at 20.68 million, compared with
the previous session’sclose of 20.81 million.
• Bond yields continued to increase on account of ambiguity over future
policy rate cuts, both in terms of quantum and timing, after the rate-
cutting panel trimmed policy rates in its latest meet. The RBI governor
said future rate cuts would be data driven.
• Yield on the 10-year benchmark paper (7.26% GS 2029) rose 3 bps to
close at 6.40% compared with the previous close of 6.37% after trading
in a range of 6.36% to 6.41%.
• Banks borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 5,444 crore (gross) on Aug 8, 2019 compared
with borrowings of Rs. 3,504 crore (gross) on Aug 7, 2019. Sale of
securities under Reserve Bank of India’s (RBI) reverse repo window
stood at Rs. 8,863 crore on Aug 7, 2019.
• Banks borrowed Rs. 50 crore under the central bank’s Marginal
Standing Facility on Aug 7, 2019 compared with borrowings of Rs. 1,350
crore on Aug 6, 2019.
• The rupee strengthened against the greenback following gains in the
domestic equity market and selling of the greenback by foreign banks.
• The euro fell against the greenback after Italian Deputy Prime Minister
indicated dissonance in the present government and added that the
only way forward was to conduct new elections.
• Gold prices fell as market participants preferred to book profits after
the bullion surged to a more than six-year high.
• Brent crude prices rose amid reports that Saudi Arabia is planning
keeping oil exports below 7 million barrels per day in Aug 2019 and Sep
2019 in order to bring back balance in the oil market.
• Labor Department report said first-time claims for U.S. unemployment
benefits unexpectedly showed a modest decrease in the week ended
Aug 3, 2019. Initial jobless claims dipped to 209,000, a decrease of 8,000
from the previous week's revised level of 217,000.
• A Commerce Department report showed wholesale inventories in the
U.S. were unchanged in Jun 2019 after climbing by 0.4% in May 2019.
• Government data showed China's exports rose in Jul 2019, against
expectations of a decline. Exports grew 3.3% YoY after a 1.3% fall in Jun
2019. Imports dropped 5.6% annually after a 7.3% slump in the previous
month.
Markets for You
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