Markets For You of 17th August 2018 – Nippon India Mutual Fund

17 Aug 2018

Markets for You

Global Indices

Global Indices 16-Aug Prev_Day Abs. Change

% Change

Dow Jones 25,559 25,162 396 1.58

Nasdaq 7,807 7,774 32 0.42

FTSE 7,556 7,498 59 0.78

Nikkei 22,192 22,204 -12 -0.05

Hang Seng 27,100 27,324 -224 -0.82

Indian Indices 16-Aug Prev_Day Abs. Change

% Change

S&P BSE Sensex 37,664 37,852 -188 -0.50

Nifty 50 11,385 11,435 -50 -0.44

Nifty 100 11,648 11,703 -56 -0.48

Nifty Bank 27,827 28,022 -195 -0.70

SGX Nifty 11,417 11,470 -54 -0.47

S&P BSE Power 1,964 1,966 -2 -0.12

S&P BSE Small Cap 16,710 16,743 -33 -0.20

S&P BSE HC 14,828 14,687 141 0.96

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

16-Aug 24.26 1.18 27.90 1.18

Month Ago 22.86 1.21 27.17 1.19

Year Ago 23.66 1.23 25.28 0.97

Nifty 50 Top 3 Gainers

Company 16-Aug Prev_Day

% Change

GAIL 394 380 3.69

Dr.Reddy 2353 2278 3.29

Sun Pharma 620 602 2.97

Nifty 50 Top 3 Losers Domestic News

Company 16-Aug Prev_Day

% Change

Kotak Bank 1245 1293 -3.68

Vedanta 209 215 -2.93

Zee Ente. 500 514 -2.63

Advance Decline Ratio

BSE NSE

Advances 1170 706

Declines 1556 1102

Unchanged 135 85

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -1372

MF Flows** 72753

*16

Aug 2018; **7

Aug 2018

Economic Indicator

YoY(%) Current Year Ago

CPI

4.17%

(Jul-18)

2.36%

(Jul-17)

IIP

7.00%

(Jun-18)

-0.30%

(Jun-17)

GDP

7.70%

(Mar-18)

6.10%

(Mar-17)

17 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

5.30%

(Mar-18)

7.00%

(Dec-17)

Quarter Ago

Inflow/Outflow

-371

4.58%

(Apr-18)

• According to Monetary Policy Committee’s third monetary policy

meeting minutes, inflation risks remain because of factors such as MSP,

crude oil, monsoon, and GST. RBI deputy governor said retail inflation

could resume upward movement in Oct-Mar. All the members except one

voted for hike in rates. All the members agreed to maintain the neutral

stance. The committee feels there is uncertainty over domestic inflation

and it needs to be carefully monitored in the next few months. Global

developments are also a concern because rising trade protectionism

poses risk to near-term and long-term global growth prospects.

• According to the government, India's crude oil imports could increase by

around $26 billion in FY19 as the rupee is lingering at record lows. The fall

in rupee has made purchase of overseas oil costlier and will lead to

increase in retail selling price of petrol, diesel and cooking gas (LPG). India

imports more than 80% of its oil requirement and spent $87.7 billion on

220.43 million tonne imports of crude oil in FY18. For FY19, the imports

are estimated at around 227 million tonne.

• The Reserve Bank of India (RBI) has been asked by the finance ministry

to review its dividend and capital conservation norms. This is being done

as the government wants a clearer policy on the payouts RBI gives to the

government. The government has also requested the central bank to look

at some of its decisions particularly around liquidity management.

• If household savings rate keeps declining it may become a tough

challenge for the economy, according to a report. Household savings rate

has decreased to 16.3% from 23.6% between FY12 and FY17. The

downturn was on the back of demonetisation and Goods and Services Tax

(GST) implementation. The household sector is the biggest contributor to

savings and in FY12, the rate was at a healthy 34.6%.

Markets for You

• Indian equity markets closed in the red as deepening of tensions

between U.S. and Turkey weighed on investor sentiment. Rupee’s

continued fall and concerns over China’s slowing growth added to the

woes.

• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.50% and

0.44% to close at 37,663.56 and 11,385.05, respectively. S&P BSE Mid-Cap

and S&P BSE Small Cap fell 0.48% and 0.20%, respectively.

• The overall market breadth on BSE was weak with 1170 scrips advancing

and 1556 scrips declining. A total of 135 scrips remained unchanged.

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

up 0.96% followed by S&P BSE Information Technology that grew 0.58%.

S&P BSE Utilities and S&P BSE Teck grew 0.39% and 0.38%. The major

losers were S&P BSE Telecom and S&P BSE Power, falling 0.06% and

0.12%.

• Asian markets closed lower as heightening tensions between U.S. and

Turkey and China growth concerns weighed sentiment down. U.S. said it

would continue with steel tariffs on Turkey, which has led to a crisis in the

latter’s currency. The downfall was restricted by U.S. and China agreeing

on holding fresh round of trade talks in late Aug. Today (as of Aug 17),

Asian markets opened higher following gains in the U.S. Wall Street on

reports that the U.S and China will resume trade talks. Both Nikkei and

Hang Seng were trading up 0.52% and 1.04%, respectively (as at 8.a.m.

IST).

• As per the last close, European markets closed higher as investor

sentiment boosted due to easing concerns over the turmoil in Turkey and

hopes for a trade agreement between China and the U.S. Strong

corporate quarterly earnings further added to the gains.

• As per the last close, U.S markets closed higher as trade war concerns

eased on news that China has accepted an invitation from the U.S. for a

new round of trade talks to be held in late Aug 2018. Strong results for

quarter ended Jun 2018 from major companies also added to the gains.

FII Derivative Trade Statistics 16-Aug

(Rs Cr) Buy

Sell Open Int.

Index Futures 1938.98 2649.57 28726.96

Index Options 66643.02 65509.32 65098.67

Stock Futures 11035.90 10971.72 86158.14

Stock Options 7911.60 7866.40 10225.61

Total 87529.50 86997.01 190209.38

16-Aug Prev_Day

Change

Put Call Ratio (OI) 1.60 1.70 -0.10

Indian Debt Market

Put Call Ratio(Vol) 1.04 1.14 -0.10

16-Aug Wk. Ago Mth. Ago

Year Ago

Call Rate 6.44% 6.38% 6.18% 5.84%

CBLO 5.84% 6.52% 6.23% 5.84%

Repo 6.50% 6.50% 6.25% 6.00%

Reverse Repo 6.25% 6.25% 6.00% 5.75%

91 Day T-Bill 6.78% 6.67% 6.53% 6.13%

364 Day T-Bill 7.28% 7.26% 7.19% 6.24%

10 Year Gilt 7.86% 7.75% 7.80% 6.53%

G-Sec Vol. (Rs.Cr) 24619 36452 29694 33146

Currency Market Update

FBIL MIBOR 6.46% 6.53% 6.30% 6.00%

3 Month CP Rate 7.70% 7.50% 7.50% 6.55%

5 Year Corp Bond 8.70% 8.61% 8.76% 7.40%

1 Month CD Rate 6.53% 6.63% 6.54% 6.09%

3 Month CD Rate 7.19% 7.12% 7.01% 6.19%

1 Year CD Rate 7.92% 7.95% 7.98% 6.48%

Commodity Market Update

Currency 16-Aug Prev_Day

Change

USD/INR 70.23 69.77 0.46

GBP/INR 89.37 89.23 0.14

EURO/INR 79.97 79.70 0.27

International News

JPY/INR 0.63 0.63 0.00

Commodity 16-Aug Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 65.39 66.76 68.17 46.75

Brent Crude($/bl) 68.40 69.74 70.02 50.28

Gold( $/oz) 1174 1212 1240 1283

Gold(Rs./10 gm) 29361 29486 30172 28726

Source: Thomson Reuters Eikon

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

17 August 2018

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Bond yields rose following weakness in domestic currency. Geopolitical

risks and renewed concerns of widening of India’s current account

deficit for Jul 2018 weighed on the rupee. Meanwhile, investors

remained cautious ahead of the minutes of the third bi-monthly policy

meeting that was scheduled post market hours.

• Yield on the 10-year benchmark paper (7.17% GS 2028) rose 4 basis

points to close at 7.86% as against previous close of 7.82%. During the

session, bond yields traded in the range of 7.83% and 7.88%.

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

Facility (LAF) stood at Rs.5,221 crore (gross) on Aug 16 compared to a

borrowing of Rs.12,550 crore on Aug 14. Sale of securities under the

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 11,575

crore on Aug 14.

• According to a Labor Department report, first-time claims for U.S.

unemployment benefits declined in the week ended Aug 11, 2018. Initial

jobless claims came in at 212,000, a dip of 2,000 from the previous

week's 214,000. Expectations were for jobless claims to increase to

215,000.

• Eurostat preliminary data showed euro area trade surplus declined for

the third consecutive month in Jun 2018. The seasonally adjusted trade

surplus decreased to EUR 16.7 billion in Jun from EUR 16.9 billion in May

2018. Expectations were for the data to remain unchanged. Exports

increased 1.6% MoM and imports grew 1.8%.

Markets for You

• Nifty August 2018 Futures closed at 11,410.9, a premium of 25.85

points, above the spot closing of 11,385.05. The turnover on NSE’s

Futures and Options segment increased to Rs. 17,76,483.56 on Aug 16

compared with Rs. 7,49,496.29 on Aug 14.

• The Put-Call ratio stood at 0.84 against previous session’s close of 0.93.

• The Nifty Put-Call ratio stood at 1.60 compared with the previous

session’s close of 1.70.

• India VIX increased 1.58% to 13.4925 from 13.2825 in the previous

trading session.

• Open interest on Nifty Futures stood at 30.72 million as against the

previous session’s close at 30.23 million.

• The rupee fell against the U.S. dollar following wider than expected

India’s trade deficit data for the month of Jul 2018. However, greenback

sales by state-run banks restricted some of the losses.

• The euro rose against the greenback as trade war concerns eased to

some extent on news that a Chinese delegation will travel to the U.S. for

trade talks. Euro rose further as concerns over Turkey’s currency crisis

also eased as lira stabled against the U.S. dollar.

• Gold prices managed to recover with the temporary pause in the recent

U.S. dollar upsurge.

• Brent Crude prices showed signs of recovery in the light of optimism

over resolution of the U.S. – China trade row, which has recently rattled

the global crude oil demand outlook.

Thank you for

your time.