Markets For You of 7th December 2018 – Nippon India Mutual Fund

07 Dec 2018

Markets for You

Global Indices

Global Indices 06-Dec Prev_Day Abs. Change

% Change

Dow Jones 24,948 Closed NA NA

Nasdaq 7,188 Closed NA NA

FTSE 6,704 6,922 -218 -3.15

Nikkei 21,502 21,919 -418 -1.91

Hang Seng 26,156 26,820 -663 -2.47

Indian Indices 06-Dec Prev_Day Abs. Change

% Change

S&P BSE Sensex 35,312 35,884 -572 -1.59

Nifty 50 10,601 10,783 -182 -1.69

Nifty 100 10,806 10,989 -183 -1.67

Nifty Bank 26,198 26,520 -321 -1.21

SGX Nifty 10,626 10,849 -223 -2.06

S&P BSE Power 1,901 1,913 -13 -0.65

S&P BSE Small Cap 14,143 14,338 -195 -1.36

S&P BSE HC 13,677 13,875 -198 -1.43

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

6-Dec 22.96 1.24 25.65 1.25

Month Ago 22.61 1.27 25.32 1.26

Year Ago 24.00 1.20 25.70 1.13

Nifty 50 Top 3 Gainers

Company 06-Dec Prev_Day

% Change

Sun Pharma 420 413 1.74

- - - -

Nifty 50 Top 3 Losers Domestic News

Company 06-Dec Prev_Day

% Change

Indiabulls HFC 733 776 -5.54

Maruti 7210 7554 -4.56

Tech Mahindra 696 727 -4.19

Advance Decline Ratio

BSE NSE

Advances 707 385

Declines 1849 1405

Unchanged 141 90

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -36100

MF Flows** 116608

Dec 2018; **5

Dec 2018

Economic Indicator

YoY(%) Current Year Ago

CPI

3.31%

(Oct-18)

3.58%

(Oct-17)

IIP

4.50%

(Sep-18)

4.10%

(Sep-17)

GDP

7.10%

(Sep-18)

6.30%

(Sep-17)

07 December 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

7.00%

(Jun-18)

8.20%

(Jun-18)

Quarter Ago

Inflow/Outflow

-8

-361

4.17%

(Jul-18)

• Indian equity markets fell for the third consecutive day due to

weakness in global markets that weighed on energy, auto and realty

stocks. Global markets remained under pressure after Canadian

authorities arrested a top executive of Chinese tech giant for extradition

to U.S., thereby raising fears of a fresh reason for tensions between U.S.

and China.

• Further, investors remained cautious ahead of the assembly election

results and as they remained focused on the meeting by the Organization

of the Petroleum Exporting Countries (OPEC). Weakness in rupee added

to the woes.

• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 1.59% and

1.69% to close at 35,312.13 and 10,601.15, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap fell 1.54% and 1.36%, respectively.

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

down 2.35% followed by S&P BSE Realty and S&P BSE Auto with both

declining 2.26%. Energy stocks remained under pressure ahead of the

OPEC’s meeting to discuss production cuts. S&P BSE Telecom and S&P

BSE Consumer Discretionary Goods & Services fell 2.11% and 1.83%. S&P

BSE Teck and S&P BSE Oil & Gas fell 1.71% and 1.70%, respectively.

• The Securities and Exchange Board of India (SEBI) has proposed a

framework for warehouse companies and other allied service providers

engaged in non-agricultural goods. The market regulator is planning to

take into consideration an extensive of standards and norms for

compliance by clearing corporations (CC) accredited storage agencies for

storage of physically delivered non-agricultural goods. Currently, the

stock exchanges or clearing corporations have prescribed certain storage

norms, however, there is no uniformity. The move is expected to help

improve the delivery and settlement mechanism.

• According to major domestic rating agency, the non-bank lenders'

asset growth will be lowered by halve to approximately 10% in the

2HFY19 due to difficulties in getting funding. The agency stated that

asset quality of retail loans is resilient, however, non-retail book of the

non-banking finance companies’ has to be monitored for potential

stress.

• A major global credit rating agency has downwardly revised forecast

for India’s gross domestic product to 7.2% for FY19 as against previous

expectation of growth of 7.8%. The revision reflects higher financing cost

and reduced credit availability. It expects growth of 7% and 7.1% in FY20

and FY21.

• The Chemicals and Fertilisers Minister has stated that the fertiliser

subsidy arrears to the industry have come down by 75% to Rs. 10,000

crore in the last four years. Also, the minister stated that the outstanding

amount is expected to be cleared by the end of FY19.

• Korean car maker Kia Motors India has signed two agreements with the

state government of Andhra Pradesh. First is to set up its maiden

manufacturing plant in the country in Andhra Pradesh and to collaborate

on the 'Partnership for Future Eco Mobility', involving the development

of local electric vehicle infrastructure, among other things.

• Asian equity markets declined after doubts arose over U.S.’ China

strategy. The U.S. administration arrested a high-placed official of a major

Chinese technology company over alleged violation of U.S. sanctions on

Iran. Investors were doubting the effectiveness of the 90-day trade truce

between the two countries and the recent development added fuel to

fire. Today (as of Dec 7), Asian markets opened higher on reports that

U.S. Fed could increase interest rates at a slower pace than previously

expected. Nikkei and Hangseng grew 0.27% and 0.36%, respectively (as at

8.a.m. IST).

• As per the last close, European markets closed lower due to concerns

over trade tensions between the U.S. and China following arrest of the

chief financial officer of a Chinese tech giant.

• As per the last close, U.S markets closed on a mixed note. Skepticism

about potential for a long-term trade agreement between U.S. and China

after the arrest of a top executive at Chinese tech giant weighed on the

indices. However, reports that U.S. Fed could hike interest rates at a

slower pace than previously expected likely restricted the losses.

Markets for You

FII Derivative Trade Statistics 06-Dec

(Rs Cr) Buy

Sell Open Int.

Index Futures 2744.11 3908.79 25077.66

Index Options 84462.18 85376.96 55263.24

Stock Futures 12092.65 12935.68 83669.08

Stock Options 6513.60 6203.90 5593.58

Total 105812.54 108425.33 169603.56

06-Dec Prev_Day

Change

Put Call Ratio (OI) 1.44 1.63 -0.19

Indian Debt Market

Put Call Ratio(Vol) 0.90 0.97 -0.07

06-Dec Wk. Ago Mth. Ago

Year Ago

Call Rate 6.34% 6.36% 6.43% 5.80%

T-Repo 6.36% 6.30% 6.39% --

Repo 6.50% 6.50% 6.50% 6.00%

Reverse Repo 6.25% 6.25% 6.25% 5.75%

91 Day T-Bill 6.67% 6.72% 6.93% 6.12%

364 Day T-Bill 7.08% 7.19% 7.42% 6.10%

10 Year Gilt 7.42% 7.61% 7.80% 7.03%

G-Sec Vol. (Rs.Cr) 78883 62918 15785 53249

Currency Market Update

FBIL MIBOR* 6.51% 6.55% 6.50% 5.95%

3 Month CP Rate 7.35% 7.75% 8.55% 6.81%

5 Year Corp Bond 8.41% 8.45% 8.58% 7.71%

1 Month CD Rate 6.60% 6.94% 7.02% 6.18%

3 Month CD Rate 7.21% 7.13% 7.63% 6.24%

1 Year CD Rate 8.19% 8.48% 8.34% 6.65%

Commodity Market Update

Currency 06-Dec Prev_Day

Change

USD/INR 71.04 70.52 0.52

GBP/INR 90.30 89.45 0.85

EURO/INR 80.55 79.84 0.71

International News

JPY/INR 0.63 0.62 0.01

Commodity 06-Dec Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 51.49 51.41 62.11 55.77

Brent Crude($/bl) 57.85 57.88 69.73 62.71

Gold( $/oz) 1238 1224 1226 1264

Gold(Rs./10 gm) 30987 30360 31773 28977

Source: Thomson Reuters Eikon

*As on 05 Dec 2018

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

07 December 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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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty Dec 2018 Futures were at 10,626.30 points, a premium of 25.15

points, above the spot closing of 10,601.15. The turnover on NSE’s

Futures and Options segment rose to Rs. 18,78,740.17 crore on Dec 6

compared with Rs. 7,46,751.53 crore on Dec 5.

• The Put-Call ratio stood at 0.81 compared with the previous session’s

close of 0.83.

• The Nifty Put-Call ratio stood at 1.44 compared with the previous

session’s close of 1.63.

• Open interest on Nifty Futures stood at 22.06 million as against the

previous session’s close at 20.90 million.

• Bond yield declined following the steep fall in crude oil prices on poor

demand outlook and expectations that the production cut by OPEC

would be lower than earlier projected. In addition, the outcome of the

Monetary Policy Committee’s policy review meeting continued to keep

the market sentiment positive.

• Yield on the 10-year benchmark paper (7.17% GS 2028) declined 2 bps

to 7.42% compared with 7.44% in the previous session after trading in

the range of 7.37% to 7.44%.

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

Facility (LAF) stood at Rs. 3,611 crore (gross) on Dec 6 compared with a

borrowing of Rs. 2,716 crore (gross) on Dec 5. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 19,277

crore on Dec 5.

• The Indian rupee depreciated against the greenback with the arrest of

an executive of a Chinese tech company, which raised concerns over the

U.S.-China trade discussions. The rupee fell 0.58% to close at 70.87 a

dollar compared with the previous close of 70.46.

• The euro was marginally lower against the greenback as the latter

firmed up following the arrest of an executive of a Chinese tech company

that triggered concerns over U.S.-China trade terms. The euro was last

seen trading at 1.1334 a dollar, down 0.09% from the previous close of

1.1344.

• Gold prices were flat to slightly lower against the greenback as the

latter firmed up on expectation of interest rate hike at the upcoming

Federal Reserve meeting scheduled for Dec 18-19.

• Brent crude prices plunged more than 4% following the arrest of the

CFO of a multinational company in Canada.

• According to survey by IHS Markit, eurozone’s composite purchasing

managers' index (PMI) fell to 52.7 in Nov 2018 from 53.1 in Oct 2018.

Similarly, eurozone’s services PMI fell to 53.4 in Nov, lowest in over two

years, from 53.7 in Oct.

• According to preliminary data from the Federal Statistical Office,

Germany’s factory orders rose 0.3% MoM in Oct 2018 from Sep 2018’s

0.1% rise. On a yearly basis, factory orders declined 2.7% in Oct as

against 2.6% fall in Sep.

• According to survey result by HIS Markit, U.K. services PMI fell to 50.4

in Nov 2018 from 52.2 in Oct 2018. The decline came due to weaker

growth in both business activity and new work as Brexit concerns

intensified, defying expectations for a modest improvement.

Markets for You

Thank you for

your time.