Markets For You of 14th December 2018 – Nippon India Mutual Fund

14 Dec 2018

Markets for You

Global Indices

Global Indices 13-Dec Prev_Day Abs. Change

% Change

Dow Jones 24,597 24,527 70 0.29

Nasdaq 7,070 7,098 -28 -0.39

FTSE 6,878 6,880 -3 -0.04

Nikkei 21,816 21,603 213 0.99

Hang Seng 26,524 26,187 338 1.29

Indian Indices 13-Dec Prev_Day Abs. Change

% Change

S&P BSE Sensex 35,930 35,779 151 0.42

Nifty 50 10,792 10,738 54 0.50

Nifty 100 11,023 10,960 63 0.57

Nifty Bank 26,816 26,644 173 0.65

SGX Nifty 10,823 10,781 42 0.39

S&P BSE Power 1,918 1,915 3 0.18

S&P BSE Small Cap 14,498 14,404 94 0.65

S&P BSE HC 13,855 13,828 27 0.19

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

13-Dec 23.64 1.21 26.11 1.23

Month Ago 22.82 1.26 25.45 1.25

Year Ago 24.36 1.18 26.10 1.11

Nifty 50 Top 3 Gainers

Company 13-Dec Prev_Day

% Change

Indiabulls HFC 776 734 5.64

Lupin 847 822 3.12

Bajaj Finserv 6159 5989 2.85

Nifty 50 Top 3 Losers Domestic News

Company 13-Dec Prev_Day

% Change

Yes Bank 175 187 -6.38

Sun Pharma 422 431 -2.17

United Phos 773 790 -2.10

Advance Decline Ratio

BSE NSE

Advances 1493 1085

Declines 1058 674

Unchanged 134 97

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -33984

MF Flows** 119269

*13

Dec 2018; **12

Dec 2018

Economic Indicator

YoY(%) Current Year Ago

CPI

2.33%

(Nov-18)

4.88%

(Nov-17)

IIP

8.10%

(Oct-18)

1.80%

(Oct-17)

GDP

7.10%

(Sep-18)

6.30%

(Sep-17)

14 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

6.50%

(Jul-18)

8.20%

(Jun-18)

Quarter Ago

Inflow/Outflow

1233

-1473

3.69%

(Aug-18)

• The government is planning to infuse additional capital of up to Rs.

30,000 crore in public sector banks as they have been unable to raise

required funds from the markets, as per media reports. As part of the

capital infusion plan announced by the Ministry of Finance in Oct 2017,

the government envisaged that public sector banks (PSBs) would raise

Rs. 58,000 crore from the stock markets by Mar 2019 to meet Basel III

norms. However, due to submissive market conditions, banks were

unable to raise enough funds from the markets till now.

• The Goods and Services Tax (GST) Council is planning to rationalise the

28% slab by cutting tax rates on construction items, like cement, in a

meeting scheduled next week. The council, chaired by Union finance

minister and encompassing his state counterparts, has trimmed the 28%

slab by cutting tax rates on 191 goods over the last one-and-a-half year,

leaving only 35 items in the highest slab.

• Seven public sector banks in their meeting with the newly-appointed

Reserve Bank of India (RBI) governor sought relaxation of prompt

corrective action (PCA) norms, easing of one-day default circular, among

other things, according to media reports. In the 90-minute meeting the

governor tried to understand the problems of state-owned banks.

• The government is not looking to change the existing foreign direct

investment (FDI) policy in the multi-brand retail trading sector, according

to internal sources. Currently, the FDI policy permits overseas players to

hold 51% stake in an Indian multi-brand retail company. So far, only one

foreign player, Tesco, has received approval for opening stores under the

multi-brand retail policy. The approval came from the UPA government.

• According to the Minister of State for Road Transport and Highways,

about 435 infrastructure and highway projects across the country are

stuck on account of various factors. The factors include delay in land

acquisition, regulatory clearances, utility shifting, non-availability of

soil/aggregate, poor performance of contracts, environment/forest/

wildlife clearances.

Markets for You

• Asian equity markets extended gains as investors grew hopeful of U.S.

and China striking a long-term trade deal. The optimism stems from news

that China for the first time in more than six months bought soybeans

form U.S. These developments are making investors confident that the

two countries are sticking by the agreement at G20. Today (as of Dec 14),

Asian markets opened lower following decline in European markets and

mixed session on Wall Street. Further, investors remained cautious ahead

of slew of China’s economic data due later in the day. Nikkei and

Hangseng fell 1.49% and 1.42%, respectively (as at 8.a.m. IST).

• As per the last close, European markets closed almost lower as

investors remained cautious amid major ECB developments and results of

U.K. vote. Downgrade of eurozone’s growth projection for 2018 and 2019

also soured investor sentiment.

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

remained focused on new developments in the ongoing U.S.-China trade

war. Steeper than expected drop in initial jobless claims for the week

ended Dec 8 likely helped in improving market sentiment.

• Indian equity markets gained as investor sentiment was buoyed by

inflation and IIP numbers. Inflation eased for the month of Nov 2018 and

the index of industrial production increased in Oct. This also fuelled

expectations of a rate-cut by the Reserve Bank of India in its Feb 2019

policy review. The new RBI governor held a meeting with a few public

sector banks to understand their problems, which was seen as an

encouraging sign by investors. Markets were also supported by news of

positive developments between U.S. and China on the trade front.

• Key benchmark indices S&P BSE Sensex and Nifty 50 both gained 0.42%

and 0.50% to close at 35,929.64 and 10,791.55, respectively. S&P BSE

Mid-Cap and S&P BSE Small Cap increased 0.82% and 0.65%,

respectively.

• The overall market breadth on BSE was strong with 1493 scrips

advancing and 1058 scrips declining. A total of 134 scrips remained

unchanged.

• On the BSE sectoral front, S&P BSE Consumer Durables was the major

gainer, up 1.4%, followed by S&P BSE Capital Goods and S&P BSE Realty,

up 1.27% and 1.19%, respectively.

FII Derivative Trade Statistics 13-Dec

(Rs Cr) Buy

Sell Open Int.

Index Futures 2895.61 3384.21 26440.89

Index Options 105555.42 104254.55 61983.14

Stock Futures 13400.23 13405.36 85515.38

Stock Options 7478.39 7286.93 7793.25

Total 129329.65 128331.05 181732.66

13-Dec Prev_Day

Change

Put Call Ratio (OI) 1.51 1.47 0.04

Indian Debt Market

Put Call Ratio(Vol) 1.06 0.99 0.07

13-Dec Wk. Ago Mth. Ago

Year Ago

Call Rate 6.41% 6.34% 6.42% 5.82%

T-Repo 6.44% 6.36% 6.38% --

Repo 6.50% 6.50% 6.50% 6.00%

Reverse Repo 6.25% 6.25% 6.25% 5.75%

91 Day T-Bill 6.66% 6.67% 6.90% 6.14%

364 Day T-Bill 7.02% 7.08% 7.37% 6.28%

10 Year Gilt 7.41% 7.42% 7.76% 7.17%

G-Sec Vol. (Rs.Cr) 73572 78883 36494 47734

Currency Market Update

FBIL MIBOR

6.60% 6.50% 6.60% 6.00%

3 Month CP Rate 7.20% 7.35% 8.45% 6.84%

5 Year Corp Bond 8.32% 8.34% 8.54% 7.83%

1 Month CD Rate 7.01% 6.60% 6.99% 6.19%

3 Month CD Rate 7.17% 7.21% 7.69% 6.26%

1 Year CD Rate 8.21% 8.19% 8.29% 6.70%

Commodity Market Update

Currency 13-Dec Prev_Day

Change

USD/INR 71.54 72.04 -0.50

GBP/INR 90.31 90.04 0.27

EURO/INR 81.34 81.59 -0.25

International News

JPY/INR 0.63 0.64 0.00

Commodity 13-Dec Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 52.64 51.49 55.58 56.54

Brent Crude($/bl) 58.97 57.85 64.54 64.40

Gold( $/oz) 1242 1238 1202 1255

Gold(Rs./10 gm) 31410 30987 30898 28411

Source: Thomson Reuters Eikon

*As on 12-12-18

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

14 December 2018

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Bond yields initially declined on hopes of easing monetary policy after

Nov retail inflation data came in at a 17-month low. However, yields rose

and returned to the prior level after investors resorted to profit booking.

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

steady at 7.41% compared with the previous session after trading in the

range of 7.38% to 7.44%.

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

Facility (LAF) stood at Rs. 5,971 crore (gross) on Dec 13 compared with a

borrowing of Rs. 21,271 crore (gross) on Dec 12. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 9,286

crore on Dec 12.

• Banks borrowed Rs. 2 crore under the central bank’s Marginal Standing

Facility on Dec 12 compared with borrowing of Rs. 587 crore on Dec 11.

• According to the Labor Department, U.S. consumer prices came in flat

in Nov 2018. This happened as a sharp pullback in gasoline prices offset

increase in other prices. The Labor Department's consumer price index

was unchanged in Nov after rising 0.3% in Oct 2018. The reading

matched expectations. Energy prices declined 2.2% in Nov after

increasing 2.4% in Oct, as gasoline prices dropped 4.2%.

• The European Central Bank on Thursday is set to confirm that its four-

year long quantitative easing (QE) programme will end in Dec 2018. The

QE saw the bank buying EUR 2.6 trillion worth of bonds to rescue the

Euro zone economy. This will mark the end to an era of unconventional

policy making.

Markets for You

• Nifty Dec 2018 Futures were at 10,824.95 points, a premium of 33.40

points, above the spot closing of 10,791.55. The turnover on NSE’s

Futures and Options segment rose to Rs. 18,23,784.25 crore on Dec 13

compared with Rs. 9,56,463.76 crore crore on Dec 12.

• The Put-Call ratio stood at 0.92 compared with previous close of 0.98.

• The Nifty Put-Call ratio stood at 1.51 compared with previous close of

1.47.

• India VIX declined 3.24% to 15.2975 compared with 15.8100 at

previous trading session.

• Open interest on Nifty Futures stood at 22.93 million as against

previous close at 22.69 million.

• The Indian rupee rose as India’s lower than expected retail inflation for

Nov 2018 and strong industrial production data for Oct 2018 boosted

investor’s sentiments. The rupee rose 0.46% to close at 71.68 a dollar

compared with the previous close of 72.01.

• The euro fell against the greenback after the European Central Bank

(ECB) kept interest rates on hold as expected in its monetary policy

review. The euro was last seen trading at 1.1354 a dollar, down 0.12%

compared with the previous close of 1.1368.

• Gold prices remained above the $1,240 mark supported by the U.S.

Labor Department data that revealed no growth in inflation for Nov.

• Brent crude prices lowered on continued oversupply concerns

and bulging inventories.

Thank you for

your time.