31 Aug 2018
Markets for You
Global Indices
Global Indices 30-Aug Prev_Day Abs. Change
% Change
#
Dow Jones 25,987 26,125 -138 -0.53
Nasdaq 8,088 8,110 -21 -0.26
FTSE 7,516 7,563 -47 -0.62
Nikkei 22,870 22,848 21 0.09
Hang Seng 28,164 28,416 -252 -0.89
Indian Indices 30-Aug Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 38,690 38,723 -33 -0.08
Nifty 50 11,677 11,692 -15 -0.13
Nifty 100 11,991 11,999 -7 -0.06
Nifty Bank 28,103 28,224 -121 -0.43
SGX Nifty 11,699 11,737 -39 -0.33
S&P BSE Power 2,114 2,099 15 0.71
S&P BSE Small Cap 17,100 17,053 47 0.27
S&P BSE HC 15,606 15,473 132 0.85
Date P/E Div. Yield P/E Div. Yield
30-Aug 24.82 1.15 28.51 1.15
Month Ago 23.53 1.17 28.12 1.19
Year Ago 23.67 1.23 25.54 0.94
Nifty 50 Top 3 Gainers
Company 30-Aug Prev_Day
% Change
#
Bosch 22005 20078 9.60
Sun Pharma 640 621 3.01
Tata Steel 608 594 2.38
Nifty 50 Top 3 Losers Domestic News
Company 30-Aug Prev_Day
% Change
#
Eicher Motors 27602 28189 -2.08
Bajaj Finance 2927 2986 -1.97
HPCL 253 258 -1.80
Advance Decline Ratio
BSE NSE
Advances 1436 963
Declines 1281 846
Unchanged 161 91
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* -2804
MF Flows** 76406
*30
th
Aug 2018; **28
th
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)
31 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
5.30%
(Mar-18)
7.00%
(Dec-17)
Quarter Ago
Inflow/Outflow
-151
-1404
4.58%
(Apr-18)
• The Reserve Bank of India (RBI) plans to review marginal cost of funds
based lending rate (MCLR) norms. The central bank could do away with
the mechanism for lending rate calculation. MCLR was launched less
than three years ago. RBI said in its 2017-18 annual report that it would
review MCLR guidelines and subsidiarisation of foreign banks “for the
purpose of fostering competition and re-orienting the banking structure
in India.” Bankers are of the view that this was coming because the
system had not reflected the changes in rates, according to media
reports.
• According to media reports, the government’s decision to raise the
price of domestically produced natural gas to $3.50 per million metric
British thermal units for the coming six months could lead to a 15% hike
in prices of natural gas. Earlier in 2018, the government had increased
domestic natural gas price by 6% to $3.06 per million metric British
thermal units, which was applicable for Apr-Sep 2018.
• India has started a countervailing duty inquiry into rising imports of a
Chinese synthetic rubber. This is being done to safeguard domestic
businesses from the cheap imports. The investigation has been at the
behest of the Directorate General of Trade Remedies.
• Cash savings have touched 10-year highs while the share of deposit is
at multi-year lows in spite of demonetisation. Note-ban was expected to
alter the saving habit of Indians, making a gradual shift from cash savings
to financial savings. Currency in circulation stands at Rs. 19.38 lakh crore
as of Aug 17, 2018, which is higher than pre-demonetisation levels.
Household cash savings and currency have increased to 2.8% of national
income, which is the highest in around 10 years. Share of savings in
banks and corporate deposits declined to 2.9%, a decadal low. According
to RBI preliminary data, Indians’ cash savings in FY18 increased after
contracting in FY17.
Markets for You
• Asian equity markets could not hold to early gains as U.S.-China trade
war worries overshadowed investor sentiment. Markets were buoyed by
developments on the NAFTA front but could not sustain gains. Chinese
investors awaited manufacturing data, to be released on Aug 31, 2018.
Also, trade war worries kept the market on its toes. Today (as of Aug 31),
Asian markets opened lower amid reports that U.S. President supported
proposed additional tariffs on Chinese goods going ahead. Nikkei and
Hangseng fell 0.30% and 1.33%, respectively (as at 8.a.m. IST).
• As per the last close, European markets closed lower amid reports of
U.S. tariffs on another $200 billion of Chinese goods from Sep 2018.
Further, worries that the response from China may have significant
consequences for the global economy weighed on the indices. Concerns
over Brexit also added to the losses.
• As per the last close, U.S markets closed lower following reports that
U.S. President intends to move ahead with plans to impose tariffs on
another $200 billion of Chinese imports from Sep 2018. Uncertainty of
trade talks between the U.S. and Canada also weighed on the markets.
• Indian equity markets closed marginally lower following the expiry of
Aug 2018 Futures and Options (F&O) contracts. Investor sentiment was
affected after the rupee hit record low of Rs. 70.74 against the U.S.
dollar. Meanwhile, market participants keenly awaited the Jun-quarter
Gross Domestic Product data to be announced on Aug 31.
• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.08% and
0.13% to close at 38,690.10 and 11,676.80, respectively. S&P BSE Mid-
Cap and S&P BSE Small Cap grew 0.43% and 0.27%, respectively.
• The overall market breadth on BSE was strong with 1436 scrips
advancing and 1281 scrips declining. A total of 161 scrips remained
unchanged.
• On the BSE sectoral front, S&P BSE Utilities stood as the major gainer,
up 1.43% followed by S&P BSE Telecom that grew 1.27%. S&P BSE Fast
Moving Consumer Goods and S&P BSE Healthcare grew 1.11% and
0.85%. S&P BSE Basic Materials and S&P BSE Metal grew 0.82% and
0.78%. S&P BSE Energy and S&P BSE Finance was the only losers, down
1.06% and 0.41%, respectively.
FII Derivative Trade Statistics 30-Aug
(Rs Cr) Buy
Sell Open Int.
Index Futures 5555.65 6551.27 33418.88
Index Options 100926.44 101621.51 70835.14
Stock Futures 41257.88 40534.46 93796.62
Stock Options 11230.50 11390.37 11627.42
Total 158970.47 160097.61 209678.06
30-Aug Prev_Day
Change
Put Call Ratio (OI) 1.68 1.79 -0.11
Indian Debt Market
Put Call Ratio(Vol) 1.03 1.01 0.02
30-Aug Wk. Ago Mth. Ago
Year Ago
Call Rate 6.34% 6.41% 6.19% 5.85%
CBLO 6.28% 6.51% 6.24% 5.66%
Repo 6.50% 6.50% 6.25% 6.00%
Reverse Repo 6.25% 6.25% 6.00% 5.75%
91 Day T-Bill 6.80% 6.80% 6.69% 6.11%
364 Day T-Bill 7.31% 7.29% 6.95% 6.24%
10 Year Gilt 7.93% 7.88% 7.79% 6.54%
G-Sec Vol. (Rs.Cr) 32339 24506 22108 27676
Currency Market Update
FBIL MIBOR 6.45% 6.55% 6.26% 6.00%
3 Month CP Rate 7.70% 7.75% 7.50% 6.57%
5 Year Corp Bond 8.77% 8.64% 8.66% 7.34%
1 Month CD Rate 6.98% 6.53% 6.81% 6.04%
3 Month CD Rate 7.25% 7.19% 7.25% 6.17%
1 Year CD Rate 8.03% 8.03% 7.99% 6.49%
Commodity Market Update
Currency 30-Aug Prev_Day
Change
USD/INR 70.73 70.50 0.23
GBP/INR 92.15 90.63 1.53
EURO/INR 82.72 82.34 0.38
International News
JPY/INR 0.63 0.63 0.00
Commodity 30-Aug Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 70.20 68.93 70.81 45.91
Brent Crude($/bl) 77.09 73.62 75.63 52.58
Gold( $/oz) 1200 1185 1221 1308
Gold(Rs./10 gm) 30099 29530 29773 29601
Source: Thomson Reuters Eikon
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
31 August 2018
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Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
• Bond yields rose for the fifth consecutive session as rupee continued
to weaken to a record low against the greenback. The consistent surge
in crude oil prices after reports on fall in U.S. crude inventories also
continued to dampen market sentiments. These factors have raised
fears over foreign fund outflow from the domestic debt market and
aggravated domestic inflationary concern in the coming months, which
might lead the Monetary Policy Committee undertake measures on
additional monetary tightening.
• Yield on the 10-year benchmark paper (7.17% GS 2028) rose 1 bps to
close at 7.93% from the previous closing of 7.92% after trading in a
range of 7.91% to 7.94%.
• Banks borrowed Rs. 200 crore under the central bank’s Marginal
Standing Facility on Aug 29 compared to that of Aug 28 when banks
borrowed Rs. 1,430 crore.
• Commerce Department report showed U.S. economic activity grew
modestly more than estimated initially in the second quarter. According
to the report, real gross domestic product increased 4.2% in the second
quarter compared with the earlier reported 4.1% rise.
• According to a European Commission survey, eurozone economic
confidence declined more than expected in Aug 2018. The economic
sentiment index decreased to 111.6 in Aug from 112.1 in Jul 2018.
Expectations were for 111.9. The reason behind the fall was
considerable decline in confidence among consumers.
Markets for You
• Nifty August 2018 Futures settled at spot close of 11,676.8. Nifty
September 2018 Futures settled at 11,733.15, a premium of 56.35 above
the spot closing. The turnover on NSE’s Futures and Options segment
increased to Rs. 19,31,285.99 on Aug 30 compared with Rs. 10,80,211.83
on Aug 29.
• The Put-Call ratio stood at 0.84 against previous session’s close of 0.91.
• The Nifty Put-Call ratio stood at 1.68 compared with the previous
session’s close of 1.79.
• Open interest on Nifty Futures stood at 35.44 million as against the
previous session’s close at 34.66 million.
• The Indian rupee plunged to record low following surge in oil prices
that raised concerns over widening of current account deficit. The rupee
fell 0.21% to close at Rs. 70.74 per dollar from the previous close of Rs.
70.59 per dollar.
• The euro weakened against the greenback after eurozone’s economic
sentiment index in Aug 2018 fell to one-year low. Euro fell 0.13% and was
trading at $1.691, down from the previous close of 1.1706.
• Gold prices slipped as the greenback’s rebound continues with the
Federal Reserve expected to raise interest rate.
• Brent crude prices surged after the Energy Information Administrations
reported that U.S. crude inventories declined by 2.6 million barrels in the
Aug 24 week.
Thank you for
your time.