Markets For You of 28th December 2018 – Nippon India Mutual Fund

28 Dec 2018

Markets for You

Global Indices

Global Indices 27-Dec Prev_Day Abs. Change

% Change

Dow Jones 23,139 22,878 260 1.14

Nasdaq 6,579 6,554 25 0.38

FTSE 6,585 6,686 -101 -1.52

Nikkei 20,078 19,327 751 3.88

Hang Seng 25,479 25,651 -173 -0.67

Indian Indices 27-Dec Prev_Day Abs. Change

% Change

S&P BSE Sensex 35,807 35,650 157 0.44

Nifty 50 10,780 10,730 50 0.47

Nifty 100 11,016 10,969 47 0.43

Nifty Bank 26,879 26,987 -108 -0.40

SGX Nifty 10,780 10,780 0 0.00

S&P BSE Power 1,974 1,966 8 0.41

S&P BSE Small Cap 14,482 14,436 45 0.31

S&P BSE HC 13,656 13,671 -15 -0.11

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

27-Dec 23.40 1.17 26.08 1.23

Month Ago 23.05 1.23 25.85 1.24

Year Ago 24.99 1.13 26.85 1.08

Nifty 50 Top 3 Gainers

Company 27-Dec Prev_Day

% Change

Tech Mahindra 709 694 2.21

ONGC 150 147 2.11

Zee Ente. 464 455 2.05

Nifty 50 Top 3 Losers Domestic News

Company 27-Dec Prev_Day

% Change

Tata Motors 168 171 -1.55

Hero Moto 3129 3175 -1.46

Tata Steel 507 513 -1.35

Advance Decline Ratio

BSE NSE

Advances 1336 961

Declines 1229 804

Unchanged 182 107

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -33975

MF Flows** 119665

*27

Dec 2018; **26

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)

28 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

460

-144

4.17%

(Jul-18)

• Indian equity markets rose, following positive cues from Asian markets.

Weakness in global crude oil prices also contributed to the upside.

Buying interest found additional support from optimism over central

government’s bank recapitalisation announcement. The government is

expected release Rs 286.15 billion before the end of this month towards

a fresh tranche of funds to recapitalise state-run banks. Meanwhile, the

expiry of monthly futures and options contracts added volatility, thereby

restricting gains.

• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 0.44% and

0.47% to close at 35,807.28 and 10,779.80, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap increased 0.32% and 0.31%, respectively.

• The overall market breadth on BSE was strong with 1336 scrips

advancing and 1229 scrips declining. A total of 183 scrips remained

unchanged.

• On the BSE sectoral front, S&P BSE Energy was the major gainer, up

1.54%, followed by S&P BSE Information Technology and S&P BSE Teck,

up 1.32% and 1.22%, respectively.

• The Reserve Bank of India (RBI) has set up an expert committee

headed by its former governor to suggest how the central bank should

handle its reserves. The panel will also suggest whether RBI can transfer

its surplus to the government. The committee will review the existing

economic capital framework (ECF) and submit its report within 90 days

of its first meeting.

• The Goods and Services Tax (GST) Council will extend the unbundling of

bills beyond healthcare for all categories of services exempt from the

tax, such as education. This could mean separate bills for taxable and

non-taxable components in bills that include services exempt under the

GST regime.

The move is aimed at bringing more transparency in billing for

consumers and protecting the government’s revenues.

• The commerce and industry minister said India will aim to receive $100

billion in foreign direct investments in the next two years. He said special

industrial clusters are being created for countries like Japan, South

Korea, China and Russia where their companies can invest and operate.

The minister said his ministry has identified sectors and countries that

hold huge potential for investments in India. He said India would be a

top destination for foreign investors in 2019 and the ministry would

discuss all sectoral issues that may hinder attracting overseas

investments.

• E-commerce firms and trade groups have appreciated the new rules

for the sector as it would help create level playing field for all sellers.

Small vendors are worried over the condition to sell only 25% of their

products through an e-commerce platform.

Markets for You

• Asian equity markets were mostly up as U.S. counterparts gained. U.S.

markets have seen heavy losses in recent days and investors resorted to

bargain hunting, giving a fillip to the bourses. Also, worries about the

tenure of Federal Reserve chairman eased and crude oil prices

rebounded strongly. Today (as of Dec 28), Asian markets opened mixed

following a turbulent session on the U.S. Wall Street. Nikkei was trading

down 0.55% and Hangseng were trading up 0.25% (as at 8.a.m. IST).

• As per the last close, European markets closed lower following rough

start in U.S. and declining crude oil prices. Lingering tensions between

China and the U.S also weighed on investor’s sentiments.

• As per the last close, U.S. markets initially plunged amid renewed

tensions between China and the U.S and weak economic data. However,

the trend reversed, and market closed higher following value buying by

the investors.

FII Derivative Trade Statistics 27-Dec

(Rs Cr) Buy

Sell Open Int.

Index Futures 13921.68 14676.42 34263.28

Index Options 151864.57 151949.34 67556.53

Stock Futures 32306.16 32578.21 90480.81

Stock Options 7071.84 7080.18 8995.63

Total 205164.25 206284.15 201296.25

27-Dec Prev_Day

Change

Put Call Ratio (OI) 1.35 1.39 -0.04

Indian Debt Market

Put Call Ratio(Vol) 0.95 0.91 0.04

27-Dec Wk. Ago Mth. Ago

Year Ago

Call Rate 6.58% 6.44% 6.37% 5.96%

T-Repo 6.60% 6.44% 6.40% --

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% 6.59% 6.73% 6.18%

364 Day T-Bill 6.92% 6.96% 7.20% 6.39%

10 Year Gilt 7.28% 7.27% 7.73% 7.22%

G-Sec Vol. (Rs.Cr) 31874 45131 33537 45535

Currency Market Update

FBIL MIBOR* 6.65% 6.60% 6.58% 6.05%

3 Month CP Rate 7.25% 7.20% 7.80% 7.01%

5 Year Corp Bond 8.26% 8.23% 8.53% 7.91%

1 Month CD Rate 7.07% 6.90% 6.80% 6.40%

3 Month CD Rate 7.07% 6.90% 7.35% 6.40%

1 Year CD Rate 8.06% 8.16% 8.51% 6.96%

Commodity Market Update

Currency 27-Dec Prev_Day

Change

USD/INR 70.33 69.99 0.34

GBP/INR 88.98 88.96 0.02

EURO/INR 80.02 79.82 0.20

International News

JPY/INR 0.63 0.63 0.00

Commodity 27-Dec Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 44.43 45.59 51.26 59.62

Brent Crude($/bl) 51.43 52.78 59.17 66.37

Gold( $/oz) 1275 1260 1214 1287

Gold(Rs./10 gm) 31513 31040 30673 29092

Source: Thomson Reuters Eikon

*As on 26-Dec-18

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

28 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

that since Reliance Nippon Life Asset Management Company Limited (RNLAM) (formerly Reliance Capital Asset Management Limited) has not independently verified the accuracy or authenticity of

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty Dec 2018 Futures settled at spot closing of 10,779.80. Nifty Jan

2019 settled at 10,809.85, a premium of 30.05 points over the spot

closing. The turnover on NSE’s Futures and Options segment rose to Rs.

21,62,816.58 crore on Dec 27 compared with Rs. 15,22,811.79 crore on

Dec 26.

• The Put-Call ratio stood at 0.86 against the previous day’s close of 0.85.

• The Nifty Put-Call ratio stood at 1.35 compared with the previous

session’s close of 1.39.

• India VIX rose 0.47% to 15.9950 compared with 15.9200 at the

previous trading session.

• Bond yields inched up following the fall in rupee. Yield on the 10-year

benchmark paper (7.17% GS 2028) rose 2 bps to close at 7.28% as

compared with 7.26% in the previous session after trading in the range

of 7.23% to 7.30%.

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

Facility (LAF) stood at Rs. 20,537 crore (gross) on Dec 27 compared with

a borrowing of Rs. 22,786 crore (gross) on Dec 26. Sale of securities

under RBI's reverse repo window stood at Rs. 10,820 crore on Dec 26.

• Banks borrowed Rs. 15,810 crore under the central bank’s Marginal

Standing Facility on Dec 26 compared with no borrowing on Dec 24.

• RBI conducted auction of 7 day variable rate repo for notified amount

of Rs. 20,000 crore for which Rs. 20,001 crore was allotted at cut-off rate

of 6.53%.

• The Indian rupee declined due to the month end dollar demand from

importers. The rupee closed at 70.35 a dollar compared with the

previous close of 70.07.

• The euro gained against the greenback with the Italian senate giving its

approval to the 2019 Roman budget. In addition, the rising friction

between the U.S. president and the Federal Reserve over interest rate

policy kept dollar under pressure, while strengthening euro.

• Gold prices extended gains from the previous session on account of the

rising uncertainty on global economic growth and the U.S. political

unrest. .

• Brent crude prices edged lower on oversupply concerns and an

expected fall in energy demand owing to global economic slowdown.

• IHS Markit survey data showed Austria's manufacturing growth slowed

in Dec 2018 on the back of a drop in export orders. The headline

UniCredit Bank Austria Manufacturing purchasing managers' index (PMI)

fell to 53.9 from 54.8 in Nov 2018. A reading above 50 suggests growth in

the sector. This is the lowest reading in over two years.

• INE data showed Spain retail sales grew at a slower pace in Nov 2018.

Retail sales increased an adjusted 1.4% YoY in Nov after rising 2.1% in

Oct 2018. On an unadjusted basis, retail sales grew 1.5% after a 4.7%

increase in the previous month. Sequentially, retail sales increased 0.4%

after a 1.1% rise. Food products sales fell 0.1% and non-food product

sales increased 0.2%.

Markets for You

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