Mutual Fund News of 7th February 2019

07 Feb 2019

Markets for You

Global Indices

Global Indices 06-Feb Prev_Day Abs. Change

% Change

Dow Jones 25,390 25,412 -21 -0.08

Nasdaq 7,375 7,402 -27 -0.36

FTSE 7,173 7,177 -4 -0.06

Nikkei 20,874 20,844 30 0.14

Hang Seng Closed Closed NA NA

Indian Indices 06-Feb Prev_Day Abs. Change

% Change

S&P BSE Sensex 36,975 36,617 358 0.98

Nifty 50 11,062 10,934 128 1.17

Nifty 100 11,206 11,080 126 1.14

Nifty Bank 27,402 27,272 131 0.48

SGX Nifty 11,124 10,980 144 1.31

S&P BSE Power 1,825 1,829 -4 -0.22

S&P BSE Small Cap 13,668 13,662 6 0.05

S&P BSE HC 13,863 13,772 91 0.66

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

6-Feb 23.64 1.14 27.39 1.22

Month Ago 23.43 1.17 25.84 1.26

Year Ago 24.09 1.14 25.37 1.08

Nifty 50 Top 3 Gainers

Company 06-Feb Prev_Day

% Change

Tech Mahindra 811 751 8.04

Zee Ente. 388 365 6.20

Cipla 535 508 5.31

Nifty 50 Top 3 Losers Domestic News

Company 06-Feb Prev_Day

% Change

Adani Ports & SEZ 330 340 -2.78

Dr.Reddy 2790 2821 -1.13

IndusInd Bank 1526 1542 -1.02

Advance Decline Ratio

BSE NSE

Advances 1008 743

Declines 1563 1047

Unchanged 141 100

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -480

MF Flows** 6602

Feb 2019; **4

Feb 2019

Economic Indicator

YoY(%) Current Year Ago

CPI

2.19%

(Dec-18)

5.21%

(Dec-17)

IIP

0.50%

(Nov-18)

8.50%

(Nov-17)

GDP

7.10%

(Sep-18)

6.30%

(Sep-17)

07 February 2019

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

-431

715

3.70%

(Sep-18)

• Indian equity markets closed in the green for the fifth consecutive

session in a row ahead of the Monetary Policy Committee’s decision on

key rates in the sixth bi-monthly monetary policy meeting scheduled on

Feb 7, 2019. Optimism that central bank will change its monetary policy

stance to "neutral" from "calibrated tightening" supported buying

interest.

• Additionally, strength in Asian stocks after U.S. President stated that he

would hold a two-day summit with North Korean leader in Vietnam at the

end of Feb 2019 boosted market sentiment.

• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.98% and

1.17% to close at 36,975.23 and 11,062.45, respectively. S&P BSE Mid-

Cap fell 0.12%, however, S&P BSE Small Cap rose 0.05%.

• On the BSE sectoral front, S&P BSE Metal stood as the major gainer, up

2.44% followed by S&P BSE Teck and S&P BSE information technology

that grew 1.71% and 1.64%, respectively. The metal sector rose after

revenue of one of India's leading integrated steel manufacturers surged

for the quarter ended Dec 2018. Further, gains in IT stocks came in after

an IT major stocks posted strong quarterly results for the quarter ended

Dec 2018.

• According to the media reports, the Securities and Exchange Board of

India (SEBI) has asked exchanges to accelerate their surveillance of intra-

day trading. The announcement comes on the wake of significant

volatility in a few stocks. Of late, these stocks have experienced

increased volatility on adverse news flow with respect to their

promoters, top management and other issues.

• The income tax e-returns filed has surged by over 37% for the period

Apr 2018-Jan 2019 compared with the period Apr 2017-Jan 2018. More

than 6.3 crore taxpayers have filed returns in the first ten months of

FY19. Meanwhile, the government expects 7.6 crore returns to be filed

by the end of FY19 compared with 6.9 crore in FY18.

• According to a notice of the directorate general of foreign trade, export

of bio-fuels from special economic zones (SEZs) and export-oriented

units (EoUs) with certain conditions have been permitted by the

government. In Aug 2018, the government has imposed restrictions on

export of bio-fuels for non-fuel purposes. Post this restriction, exporters

operating from SEZs and EoUs made representations to remove this

prohibition stating they only use imported material for export of final

product.

• According to media reports, Siemens reported a 19.7% YoY rise in its

net profit at Rs. 228 crore for the quarter ended Dec 2018, mainly due to

higher revenues. The company’s net profit in the same period of the

previous year stood at Rs, 190.5 crore.

• According to media reports, Indraprastha Gas Ltd witnessed a 19% rise

in standalone net profit at Rs. 197.94 crore compared to the same period

of the previous year when standalone net profit stood at Rs. 165.65

crore.

• According to media reports, the standalone net profit of Jindal

Stainless plunged over 61% to Rs. 52.35 crore compared to the same

period of the previous year when standalone net profit stood at Rs.

134.73 crore.

• Asian markets traded up after the U.S. President stated that he would

hold a two-day meeting with North Korea leader at the end of Feb.

Investors also remained optimist on U.S. China trade deal. Improved

corporate earning numbers from U.S. further supported gains. Today (as

of Feb 7), Asian markets opened on a mixed note. Decline in Wall Street in

the last session weighed on the indices. Meanwhile, expectation for U.S.

and China trade were up as negotiations continue. Nikkei fell 0.81% (as at

8.a.m. IST). Hangseng remained closed.

• As per the last close, U.S markets closed on a lower note amid

uncertainty about the near-term outlook for the markets. Investors

remained concerned over ambiguity about trade talks between the U.S.

and China.

• As per the last close, European markets closed on a mixed note amid a

mixed bag of earnings results. Decline in factory orders in Germany in Dec

weighed on the indices. Further, investors remained cautious over no

positive news on U.S. and China trade front and prospects of another

shutdown in the U.S. over the border wall issue.

Markets for You

FII Derivative Trade Statistics 06-Feb

(Rs Cr) Buy

Sell Open Int.

Index Futures 2561.04 1766.52 24309.85

Index Options 66651.59 66477.88 58537.30

Stock Futures 11950.19 12270.74 86886.80

Stock Options 5517.28 5477.16 5796.83

Total 86680.10 85992.30 175530.78

06-Feb Prev_Day

Change

Put Call Ratio (OI) 1.82 1.68 0.13

Indian Debt Market

Put Call Ratio(Vol) 1.13 1.09 0.04

06-Feb Wk. Ago Mth. Ago

Year Ago

Call Rate 6.42% 6.39% 6.31% 5.86%

T-Repo 6.34% 6.34% 6.23% --

Repo 6.50% 6.50% 6.50% 6.00%

Reverse Repo 6.25% 6.25% 6.25% 5.75%

91 Day T-Bill 6.51% 6.53% 6.58% 6.37%

364 Day T-Bill 6.78% 6.78% 6.85% 6.55%

10 Year Gilt 7.57% 7.55% 7.45% 7.57%

G-Sec Vol. (Rs.Cr) 27325 20280 34618 30961

Currency Market Update

FBIL MIBOR* 6.49% 6.50% 6.46% 6.00%

3 Month CP Rate 7.65% 7.60% 7.85% 7.79%

5 Year Corp Bond 8.53% 8.47% 8.38% 8.16%

1 Month CD Rate 6.60% 6.57% 6.73% 6.24%

3 Month CD Rate 7.17% 7.20% 7.49% 7.24%

1 Year CD Rate 8.02% 7.86% 8.16% 7.52%

Commodity Market Update

Currency 06-Feb Prev_Day

Change

USD/INR 71.57 71.75 -0.17

GBP/INR 92.69 93.56 -0.87

EURO/INR 81.55 82.01 -0.47

International News

JPY/INR 0.65 0.65 0.00

Commodity 06-Feb Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 53.89 54.13 47.71 63.46

Brent Crude($/bl) 62.31 62.33 55.23 66.43

Gold( $/oz) 1306 1320 1285 1325

Gold(Rs./10 gm) 33210 33000 31769 30433

Source: Thomson Reuters Eikon

*As on Feb 5, 2019

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

07 February 2019

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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 Feb 2019 Futures were at 11,090.30, a premium of 27.85 points,

over the spot closing of 11,062.45. The turnover on NSE’s Futures and

Options segment rose to Rs. 6,50,160.10 crore on Feb 6, 2019,

compared with Rs. 5,58,363.03 crore on Feb 5, 2019.

• The Put-Call ratio stood at 0.93 compared with the previous session’s

close of 0.88.

• The Nifty Put-Call ratio stood at 1.82 compared with the previous

session’s close of 1.68.

• Open interest on Nifty Futures stood at 22.89 million as against the

previous session’s close at 20.40 million.

• Bond yields declined as market participants are hoping the Monetary

Policy Committee to change its stance from calibrated tightening to

neutral in the upcoming policy meeting due on Feb 7, 2019.

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

to close at 7.57% as compared with 7.61% in the previous session after

trading in the range of 7.57% to 7.60%.

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

Facility (LAF) stood at Rs. 5,428 crore (gross) on Feb 6, 2019, compared

with Rs. 3,091 crore (gross) as on Feb 4, 2019. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 19,458

crore on Feb 5, 2019.

• Banks borrowed Rs. 451 crore under the central bank’s Marginal

Standing Facility on Feb 5, 2019 compared with borrowing of Rs. 1 crore

on Feb 4, 2019.

• The Indian rupee held steady as market participants preferred to

remain on the sidelines ahead of the monetary policy meeting due on

Feb 7, 2019. The rupee closed at 71.55 a dollar, up 0.02% compared

with the previous close of 71.56.

• The euro declined against the greenback as the European Union Bank

gave a cautionary stance on the eurozone’s economic outlook on the

back of weak economic data. The euro was last seen trading at 1.1386 a

dollar, down 0.23% compared with the previous close of 1.1412.

• Gold prices moved down following the U.S. President’s State of the

Union address where he stated that the trade deal with China should

incorporate structural reforms to end unfair trade practices.

• Brent crude prices plunged on concerns over a supply glut after

reports from API revealed surge in U.S. crude inventories.

• According to a preliminary report from the Federal Statistical Office,

Germany’s manufacturing orders fell 1.6% MoM (calendar and

seasonally adjusted) as against downwardly revised decline of 0.2% in

Nov 2018. The decline reflects weak demand from abroad, thereby

indicating that continued slowdown in the manufacturing sector.

Meanwhile, domestic orders fell 0.6% MoM and foreign orders fell 2.3%

MoM in Dec.

• According to a report from IHS Markit, eurozone’s final Composite

Purchasing Managers' Index fell to 51.0 in Jan 2019 as against 51.1 in

Dec 2018. The expansion slowed for the fifth month in a row.

Additionally, this marked to be the lowest level in five-and-a-half years.

Markets for You

Thank you for

your time.