23Aug2019
MarketsforYou

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GlobalIndices
GlobalIndices 22‐Aug Prev_Day Abs.Change
%Change
#
Russell3000 1,295 1,298 ‐3 ‐0.22
Nasdaq 7,991 8,020 ‐29 ‐0.36
FTSE 7,128 7,204 ‐76 ‐1.05
Nikkei 20,628 20,619 9 0.05
HangSeng 26,049 26,270 ‐221 ‐0.84
IndianIndices 22‐Aug Prev_Day Abs.Change
%Change
#
S&PBSESensex 36,473 37,060 ‐587 ‐1.59
Nifty50 10,741 10,919 ‐177 ‐1.62
Nifty100 10,837 11,012 ‐175 ‐1.59
Nifty500 8,719 8,865 ‐145 ‐1.64
NiftyBank 27,034 27,719 ‐685 ‐2.47
S&PBSEPower 1,843 1,868 ‐25 ‐1.36
S&PBSESmallCap 12,119 12,390 ‐271 ‐2.19
S&PBSEHC 12,348 12,408 ‐60 ‐0.48
Date P/E Div.Yield P/E Div.Yield
22‐Aug 25.40 1.28 26.57 1.38
MonthAgo 27.47 1.24 27.81 1.31
YearAgo 24.85 1.14 28.29 1.16
Nifty50Top3Gainers
Company 22‐Aug Prev_Day
%Change
#
Dr.Reddy 2545 2503 1.69
TechMahindra 683 673 1.48
TCS 2216 2186 1.36
Nifty50Top3Losers DomesticNews
Company 22‐Aug Prev_Day
%Change
#
YesBank 56 65 ‐13.91
VedantaLimited 129 140 ‐7.79
IndiabullsHFC 451 484 ‐6.82
AdvanceDeclineRatio
BSE NSE
Advances 511 348
Declines 1975 1521
Unchanged 111 81
InstitutionalFlows(Equity)
Description(Cr) YTD
FIIFlows* 55413
MFFlows** 35601
*22
nd
Aug2019;**21
st
Aug2019
EconomicIndicator
YoY(%) Current YearAgo
CPI
3.15%
(Jul‐19)
4.17%
(Jul‐18)
IIP
2.00%
(Jun‐19)
7.00%
(Jun‐18)
GDP
5.80%
(Mar‐19)
8.10%
(Mar‐18)
23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
2.70%
(Mar‐19)
6.60%
(Dec‐18)
QuarterAgo
Inflow/Outflow
292
‐1044
2.99%
(Apr‐19)
• Indian equity market declined as hopes of a stimulus by the government
were almost crushed. Even as the government showed no signs of rolling
out relief measures, the chief economic advisor was quoted by media
saying, “have to be careful on the issue of a fiscal stimulus". He said the
private sector needs to change its mindset and stop “personalizing profit
and socializing losses".
• Key benchmark indices S&P BSE Sensex and Nifty 50 lost 1.59% and
1.67% to close at 36,472.93 and 10,737.75, respectively. S&P BSE Mid‐
Cap and S&P BSE Small Cap lost 1.35% and 2.19%, respectively.
• The overall market breadth on BSE was weak with 511 scrips advancing
and 1975 scrips declining. A total of 111 scrips remained unchanged.
• On the BSE sectoral front, S&P BSE IT was the only gainer, up 0.3%,
while S&P BSE Teck stayed flat. S&P BSE Realty was the major loser, down
6.01%, followed by S&P BSE Metal and S&P BSE Finance, down 3.49% and
2.69%, respectively. S&P BSE Oil & Gas and S&P BSE Bankex lost 2.63%
and 2.52%, respectively.
• Media reports showed that the chief economic advisor of India has
called for a "mindset change" in the private sector. He said the sector
should stop the tendency of grabbing profits and socialising losses and
seeking sops in times of stress. He added that only investment and not
consumption will help the economy grow. His comments come at the
back drop of increasing criticism about the issues plaguing the economy,
and sectors like auto looking for help. Comparing the private sector to a
grown‐up man, he said, "this 30‐ year‐old man and must start to stand on
his own feet. This adult cannot keep asking his father for help and live
with the idea of personalizing profit and socializing losses." "We need to
move on; we're a market economy, where assets do get reallocated when
someone doesn't manage it well," he said.
• The Income Tax department said only small start‐ups with a turnover of
up to Rs. 25 crore will get tax holiday on fulfilling certain conditions. It did
not recognise the Rs. 100‐crore turnover definition of a small start‐up
given by the Department for Promotion of Industry and Internal Trade.
Start‐ups under Section 80 IAC of the Income Tax Act are allowed 100%
deduction of income for three years out of seven years from the year of
incorporation.
• Data from the Directorate General of Civil Aviation (DGCA) showed
domestic air passenger traffic growth during Jan to Jul 2019 grew by just
3.15% annually. This is its lowest growth pace in the last five years and
has happened in the wake of an overall economic slowdown in India and
the grounding of one of the leading airlines. During the Jan to Jul 2018
period, domestic air traffic had grown 21.79% compared with the same
period of the previous year.
• Government think tank Niti Aayog has made a case for extraordinary
steps to deal with the stress in the financial sector. The government
needs to take steps to eliminate apprehension and encourage private
sector players to step up investments, Niti Aayog vice chairman said.
• Asian equity markets ended mixed as investors awaited cues from U.S.
Federal Reserve chairman’s speech on Aug 23, 2019. This will be the Fed
chief’s first speech after bond markets were hit by recession fears as U.S
Treasury yields inverted for the first time in 12 years. Today (as of Aug
23), Asian markets opened lower as investors awaited Fed chairman’s
speech later in the day and trade tensions between Japan and S Korea
deepened. Both Nikkei and Hang Seng were trading up 0.21% and
0.42%, respectively (as at 8.a.m. IST).
• European markets fell as the yield curve inverted once again, leading to
recession fears. This is the third trigger of the recession indicator in less
than two weeks. Investors also awaited the U.S. Fed chairman’s speech
for cues on its interest rate stance.
• U.S. markets were up a tad with investors staying focussed on what the
U.S. Federal Reserve chairman will say at his speech at a yearly central
banking symposium in Jackson Hole, Wyomingon, on Aug 23, 2019.
Investors are expecting the central bank to cut rates at its Sep 2019
meeting and will look for cues in this direction.
MarketsforYou
FIIDerivativeTradeStatistics 22‐Aug
(RsCr) Buy Sell OpenInt.
IndexFutures 3372.62 3509.78 23643.82
IndexOptions 269868.62 270800.50 60767.31
StockFutures 12357.96 12685.58 90596.55
StockOptions 5279.00 5386.25 5499.34
Total 290878.20 292382.11 180507.02
22‐Aug Prev_Day Change
PutCallRatio(OI) 0.70 0.95 ‐0.25
IndianDebtMarket
PutCallRatio(Vol) 0.78 0.74 0.04
22‐Aug Wk.Ago Mth.Ago YearAgo
CallRate 5.33% 5.33% 5.65% 6.42%
T‐Repo 5.21% 5.35% 5.63% NA
Repo 5.40% 5.40% 5.75% 6.50%
ReverseRepo 5.15% 5.15% 5.50% 6.25%
91DayT‐Bill 5.42% 5.40% 5.72% 6.81%
364DayT‐Bill 5.67% 5.74% 5.92% 7.29%
10YearGilt 6.56% 6.63% 6.42% 7.83%
G‐SecVol.(Rs.Cr) 55632 53470 49665 26516
CurrencyMarketUpdate
FBILMIBOR* 5.37% 5.45% 5.70% 6.50%
3MonthCPRate 6.38% 6.47% 6.39% 7.75%
5YearCorpBond 7.76% 7.92% 7.72% 8.62%
1MonthCDRate 5.35% 5.50% 6.02% 6.54%
3MonthCDRate 5.62% 5.54% 6.28% 7.18%
1YearCDRate 6.65% 6.73% 6.99% 8.03%
CommodityMarketUpdate
Currency 22‐Aug Prev_Day Change
USD/INR 71.70 71.55 0.15
GBP/INR 86.91 86.89 0.02
EURO/INR 79.43 79.39 0.03
InternationalNews
JPY/INR 0.67 0.67 0.00
Commodity 22‐Aug WkAgo Mth.Ago YearAgo
NYMEXCrude($/bl) 55.28 55.11 55.84 67.27
BrentCrude($/bl) 60.10 57.35 62.10 70.84
Gold($/oz) 1499 1516 1425 1196
Gold(Rs./10gm) 37668 37574 34932 29529
Source:ThomsonReutersEikon
*Asonprevioustradingday
MutualFundInvestmentsaresubjecttomarketrisks,readallschemerelateddocumentscarefully.
23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 10,732.10, a discount of 9.25 points
below the spot closing of 10,741.35. The turnover on NSE’s Futures and
Options segment rose to Rs. 25,17,204.99 on August 22, 2019, compared
with Rs. 13,16,964.46 crore on August 21, 2019.
• The Put‐Call ratio stood at 0.74 compared with the previous session’s
close of 0.82.
• The Nifty Put‐Call ratio stood at 0.70 compared with the previous
session’s close of 0.95.
• Open interest on Nifty Futures stood at 22.75 million, compared with
the previous session’s close of 22.38 million.
• Bond yields continued to fall on expectations that Monetary Policy
Committee might cut interest rates again to boost the slowing economy.
However, further gains were capped by the weakening local currency
and losses in the domestic equity market.
• Yield on the 10‐year benchmark paper (7.26% GS 2029) fell 1 bps to
6.56% compared with the previous close of 6.57%.
• Banks borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 5,154 crore (gross) on Aug 22, 2019 compared
with borrowings of Rs. 3,815 crore (gross) on Aug 21, 2019. Sale of
securities under Reserve Bank of India’s (RBI) reverse repo window stood
at Rs. 10,389 crore on Aug 21, 2019.
• Banks borrowed Rs. 601 crore under the central bank’s Marginal
Standing Facility on Aug 21, 2019 compared with borrowings of Rs. 475
crore on Aug 20, 2019.
• The Indian rupee weakened to its lowest level since Dec 18, 2019
against the U.S. dollar following multi‐year lows in the Chinese yuan
currency. The rupee fell 0.35% to close at 71.81 per U.S. dollar against
the previous close of 71.56.
• Euro was flat against the U.S. dollar after moving in a narrow range
ahead of the statement from the U.S. Federal Reserve at this week's
Jackson Hole, Wyoming event. Euro was steady at $1.1078.
• Gold prices were trimmed ahead of the U.S. Fed Chief’s speech to the
annual Jackson Hole Economic Policy Symposium.
• Brent crude prices slipped but remained above $60 per barrel level as
weak U.S. factory data highlighted concerns over global demand outlook
for the commodity.
• A Labor Department report showed first‐time claims for U.S.
unemployment benefits fell by much more than expected in the week
ended Aug 17, 2019. The report said initial jobless claims dropped to
209,000, a decrease of 12,000 from the previous week's revised level of
221,000.
• IHS Markit data showed euro area private sector growth improved
unexpectedly to 51.8 in Aug 2019 from 51.5 in Jul 2019, which was a
three month‐low. The overall pace of expansion remained subdued amid
Germany facing a risk of recession. The reading was one of the weakest
in six years.
MarketsforYou
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