Mutual Fund News of 10th December 2018

10 Dec 2018

Markets for You

Global Indices

Global Indices 07-Dec Prev_Day Abs. Change

% Change

Dow Jones 24,389 24,948 -559 -2.24

Nasdaq 6,969 7,188 -219 -3.05

FTSE 6,778 6,704 74 1.10

Nikkei 21,679 21,502 177 0.82

Hang Seng 26,064 26,156 -93 -0.35

Indian Indices 07-Dec Prev_Day Abs. Change

% Change

S&P BSE Sensex 35,673 35,312 361 1.02

Nifty 50 10,694 10,601 93 0.87

Nifty 100 10,894 10,806 88 0.82

Nifty Bank 26,594 26,198 396 1.51

SGX Nifty 10,720 10,626 94 0.88

S&P BSE Power 1,899 1,901 -2 -0.10

S&P BSE Small Cap 14,105 14,143 -39 -0.27

S&P BSE HC 13,658 13,677 -20 -0.14

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

7-Dec 23.31 1.22 25.87 1.24

Month Ago 22.61 1.27 25.32 1.26

Year Ago 24.24 1.19 26.01 1.12

Nifty 50 Top 3 Gainers

Company 07-Dec Prev_Day

% Change

Kotak Bank 1280 1180 8.42

Bajaj Finserv Limited 5850 5668 3.22

Adani Ports & SEZ 373 364 2.61

Nifty 50 Top 3 Losers Domestic News

Company 07-Dec Prev_Day

% Change

HCL Tech 962 1013 -4.99

GAIL 335 349 -4.10

Indiabulls HFC 717 733 -2.25

Advance Decline Ratio

BSE NSE

Advances 1079 769

Declines 1499 999

Unchanged 146 108

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -36154

MF Flows** 116287

Dec 2018; **6

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)

10 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

-53

4.17%

(Jul-18)

• After falling for three consecutive days, India equity markets ended the

last trading session of the week on a positive note. Decline in crude oil

prices as OPEC ended talks in Vienna without a deal on oil production

cuts boosted the indices. Gains in banking stocks following reports that

an American business investor is in discussions to buy 10% stake in an

Indian private sector bank supported buying interest. Strength in rupee

added to the gains.

• Further, a rebound in the global stocks amid expectations that U.S.

Federal Reserve may ease its faster pace of interest rate hikes in 2019,

supported the benchmark indices. Meanwhile, investors awaited exit poll

results of five state elections due after market hours on Dec 7, 2018.

• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 1.02% and

0.87% to close at 35,673.25 and 10,693.70, respectively. S&P BSE Mid-

Cap grew 0.23%, however, S&P BSE Small Cap fell 0.27%.

• The overall market breadth on BSE was weak with 1,499 scrips

declining and 1,079 scrips advancing. A total of 146 scrips remained

unchanged.

• The Union cabinet has given approval for an export policy for

agriculture, thereby imposing no restrictions on export of all organic and

processed products. The move is expected to help the government’s

efforts to double farmers’ income by 2022. However, policy for farm

goods such as onions will be reviewed from time to time. The commerce

and industry minister stated that the policy will promote organic, ethnic

and indigenous products.

• According to media reports, an important sub-committee of the

Reserve Bank of India (RBI) did not discuss easing lending curbs facing 11

state-run banks. As per the reports, RBI’s board for financial supervision

(BFS) only discussed the banks' quarterly results for Sep 2018.

• According to media reports, some 30-35 microfinance companies have

come together to create a common loan pool of approximately Rs. 650

crore. The loan pool will be securitised and sold to banks in order to raise

funds at a time when the sector is facing a credit squeeze. Securitisation

of the first tranche of Rs. 400 crore is likely to be carried out in a week.

Meanwhile, immediately after the first tranche, the second instalment of

approximately Rs. 100 crore will take place.

• 30 officials and custodians of some of the large offshore funds have

requested to the Securities and Exchange Board of India (SEBI) to

eradicate the rule as per which most offshore funds have to be broad-

based that needs having at least 20 investors with each holding not more

than 49%. Also, they have raised concern about the practice where

copies of passport, social security numbers, and other national

identification documents of senior management officials of many foreign

funds are shared with brokers and intermediaries.

• According to media reports, the cabinet has increased the

government’s contribution to National Pension Scheme (NPS) to 14% of

basic salary from current contribution of 10%. However, minimum

contribution remains at 10% for the employees. Also, the cabinet has

approved tax incentives under 80C of the Income Tax Act for employees'

contribution to the extent of 10%.

• Asian markets witnessed a mixed trend with investors tracking the

development over U.S. – China trade relation. Meanwhile, market

participants took positive cues from widespread speculation over slower

tempo of interest rate hikes by U.S. Fed compared with previously

expected. Today (as of Dec 10), Asian markets opened lower following

weaker than expected China’s trade data for Nov 2018 which indicated

slower global and domestic demand. Nikkei and Hangseng fell 1.84% and

1.15%, respectively (as at 8.a.m. IST).

• As per the last close, European markets managed to close in gains amid

rebound in crude oil prices and bargain hunting. However, decline in U.S.

markets on weaker-than-expected jobs report for Nov 2018 soured

investor sentiment. Further, investors remained focused on

developments from the OPEC meeting in Vienna.

• As per the last close, U.S markets closed lower following weaker-than-

expected jobs report for Nov 2018. Lingering skepticism about trade

agreement between U.S. and China also continued to weigh on the

markets.

Markets for You

FII Derivative Trade Statistics 07-Dec

(Rs Cr) Buy

Sell Open Int.

Index Futures 2430.44 4152.46 26316.70

Index Options 161029.91 154387.10 53880.66

Stock Futures 12694.99 13742.13 82709.18

Stock Options 7078.96 7061.05 5959.87

Total 183234.30 179342.74 168866.41

07-Dec Prev_Day

Change

Put Call Ratio (OI) 1.47 1.44 0.04

Indian Debt Market

Put Call Ratio(Vol) 0.87 0.90 -0.03

07-Dec Wk. Ago Mth. Ago

Year Ago

Call Rate 6.41% 6.41% 6.43% 5.76%

T-Repo 6.44% 6.29% 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% 6.77% 6.93% 6.09%

364 Day T-Bill 7.01% 7.19% 7.42% 6.28%

10 Year Gilt 7.46% 7.61% 7.80% 7.05%

G-Sec Vol. (Rs.Cr) 39650 38079 15785 44838

Currency Market Update

FBIL MIBOR 6.48% 6.55% 6.50% 5.90%

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

5 Year Corp Bond 8.42% 8.43% 8.58% 7.72%

1 Month CD Rate 6.68% 6.65% 7.02% 6.19%

3 Month CD Rate 7.23% 7.24% 7.63% 6.24%

1 Year CD Rate 8.17% 8.48% 8.34% 6.66%

Commodity Market Update

Currency 07-Dec Prev_Day

Change

USD/INR 70.57 71.04 -0.47

GBP/INR 90.12 90.30 -0.17

EURO/INR 80.22 80.55 -0.32

International News

JPY/INR 0.63 0.63 0.00

Commodity 07-Dec Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 52.71 50.73 62.11 56.45

Brent Crude($/bl) 61.73 57.55 69.73 62.83

Gold( $/oz) 1248 1222 1226 1246

Gold(Rs./10 gm) 31050 30240 31773 28742

Source: Thomson Reuters Eikon

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

10 December 2018

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty Dec 2018 Futures were at 10,735.15 points, a premium of 41.45

points, above the spot closing of 10,693.70. The turnover on NSE’s

Futures and Options segment declined to Rs. 4,29,275.52 crore on Dec 7

compared with Rs. 18,78,740.17 crore on Dec 6.

• The Put-Call ratio stood at 0.78 compared with the previous session’s

close of 0.81.

• The Nifty Put-Call ratio stood at 1.47 compared with the previous

session’s close of 1.44.

• Open interest on Nifty Futures stood at 22.78 million as against the

previous session’s close at 22.06 million.

• Bond yield edged up as market participants resorted to profit booking.

Besides, worries over high production cut of crude oil by OPEC and its

allies adversely impacted the market sentiment.

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

bps to 7.46% compared with 7.42% in the previous session after trading

in the range of 7.39% to 7.48%.

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

Facility (LAF) stood at Rs. 10,126 crore (gross) on Dec 7 compared with a

borrowing of Rs. 3,611 crore (gross) on Dec 6. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 11,499

crore on Dec 6.

• Banks borrowed Rs. 105 crore under the central bank’s Marginal

Standing Facility on Dec 6 compared with borrowing of Rs. 2,225 crore

on Dec 5.

• The Indian rupee rose against the greenback supported by weak crude

oil prices that remained below the $60 a barrel mark. The rupee

improved 0.14% to close at 70.80 a dollar compared with the previous

close of 70.90.

• The euro inched up against the greenback on rising speculations that

the U.S. Federal Reserve may not go ahead with the multiple interest

rate hike campaign in 2019. The euro was last seen trading at 1.1376 a

dollar compared with the previous close of 1.1374.

• Gold prices marginally gained following the U.S. private sector

employment report and worries over the bond market.

• Brent crude prices remained below the $60 a barrel mark after OPEC

discussed the possibility of exempting Iran from production cut at the

Vienna meeting.

• According to a report by the Labor Department, U.S. non-farm payroll

employment rose less than expected by 155,000 jobs in Nov 2018 after

surging up by a downwardly revised 237,000 jobs in Oct 2018.

• According to a survey by the Bank of England, U.K.’s median

expectations of the rate of inflation over the coming year rose to 3.2%

from to 3% predicted in Aug 2018. The central bank also warned that a

no-deal Brexit would lead to a severe recession in the country that has

not been even seen during the global financial crisis a decade ago.

• According to the Ministry of Internal Affairs and Communications,

Japan’s household spending fell 0.3% YoY to 290,396 yen in Oct 2018 as

against 1.6% decline in Sep 2018.

Markets for You

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