08 Feb 2018
Markets for You
Global Indices
Global Indices 07-Feb Prev_Day Abs. Change
% Change
#
Dow Jones 24,893 24,913 -19 -0.08
Nasdaq 7,052 7,116 -64 -0.90
FTSE 7,279 7,141 138 1.93
Nikkei 21,645 21,610 35 0.16
Hang Seng 30,323 30,595 -272 -0.89
Indian Indices 07-Feb Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 34,083 34,196 -113 -0.33
Nifty 50 10,477 10,498 -22 -0.21
Nifty 100 10,845 10,852 -7 -0.06
Nifty Bank 25,670 25,811 -141 -0.55
SGX Nifty 10,592 10,452 141 1.34
S&P BSE Power 2,217 2,209 8 0.35
S&P BSE Small Cap 17,732 17,392 340 1.95
S&P BSE HC 13,939 13,789 150 1.08
Date P/E Div. Yield P/E Div. Yield
7-Feb 23.94 1.16 25.32 1.08
Month Ago 25.40 1.12 26.99 1.07
Year Ago 21.93 1.44 23.31 1.26
Nifty 50 Top 3 Gainers
Company 07-Feb Prev_Day
% Change
#
HPCL 396 378 4.97
Aurobindo Pharma 616 597 3.23
Coal India 298 290 2.50
Nifty 50 Top 3 Losers Domestic News
Company 07-Feb Prev_Day
% Change
#
Ambuja Cem 248 255 -2.74
Bharti Airtel 430 439 -2.03
Bharti Infratel 339 345 -1.86
Advance Decline Ratio
BSE NSE
Advances 2022 1387
Declines 757 402
Unchanged 89 48
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* 13171
MF Flows** 7802
*7
th
Feb 2018; **2
nd
Feb 2018
Economic Indicator
YoY(%) Current Year Ago
WPI
3.58%
(Dec-17)
2.10%
(Dec-16)
IIP
8.40%
(Nov-17)
5.10%
(Nov-16)
GDP
6.30%
(Sep-17)
7.50%
(Sep-16)
08 February 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
4.80%
(Aug-17)
5.70%
(Jun-17)
Quarter Ago
Inflow/Outflow
-957
-1718
3.14%
(Sep-17)
• The Monetary Policy Committee (MPC) in its sixth bi-monthly policy
review kept key policy repo rate unchanged at 6.0% and also retained its
“neutral” stance. Consequently, the reverse repo rate stood unaltered at
5.75%, and the marginal standing facility (MSF) rate and bank rate each
remained at 6.25%. Five policymakers were in favour of the monetary
policy decision and one advocated for a policy rate increase of 25 bps.
• According to the fifth bi-monthly policy, inflation was expected in the
range of 4.3%-4.7% in second half of FY18, including House Rent
Allowance (HRA) impact. Meanwhile, headline inflation averaged 4.6% in
the third quarter, owing to an unusual increase in food prices in Nov 2017.
Meanwhile, though prices eased in Dec 2017, winter seasonal food price
moderation was less than usual. Also, prices of petrol and diesel surged in
Jan 2018. Considering these factors, MPC expects inflation to be 5.1% in
the fourth quarter, including the HRA impact. According to MPC, inflation
is expected in the range of 5.1%-5.6% in the first half of FY19, including
diminishing statistical HRA impact of central government employees, and
in the range of 4.5%-4.6% in the second half, with risks tilted to the
upside.
• MPC lowered the real Gross Value Added (GVA) growth for 2017-18
from 6.7% to 6.6%. According to the committee, while Goods and Services
Tax (GST) implementation is stabilising, thereby augmenting well for
economic activity. Also, according to MPC, there are early signs of revival
in investment activity as reflected in improving credit offtake and
improving capital goods production and imports. MPC stated that the
process of recapitalization of public sector banks has got underway with
large distressed borrowers being referenced for resolution under the
Insolvency and Bankruptcy Code. This is expected to improve credit flows
further and create demand for fresh investment.
Markets for You
• Indian equity markets closed lower following the outcome of the
Monetary Policy Committee’s (MPC) latest meeting. The MPC kept
interest rates unchanged, but hinted that monetary conditions are likely
to remain tight because of rising risks to inflation.
• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.33% and
0.21% to close at 34,082.71 and 10,476.70, respectively. Meanwhile,
broader indices bucked the trend with S&P BSE Small-Cap and S&P BSE
Mid-Cap rising by 1.95% and 0.43%, respectively.
• The overall market breadth on BSE was positive with 2,022 scrips
advancing and 757 scrips declining. A total of 89 scrips remained
unchanged.
• On the BSE sectoral front, majority of the indices closed in the green.
S&P BSE Oil & Gas was the top gainer, up 1.69%, followed by S&P BSE
Realty and S&P BSE Energy, which rose 1.54% and 1.10%, respectively.
S&P BSE Healthcare and S&P BSE Utilities rose 1.08% and 0.88%,
respectively. Meanwhile, S&P BSE Telecom was the major loser down
1.12%, followed by S&P BSE Teck and S&P BSE IT, which slipped 0.63% and
0.55%, respectively.
• Asian markets largely remained under pressure with investors closely
following the oil price movement and the U.S. bond market after a heavy
sell-off in the global equity markets. Chinese markets reversed earlier
gains to close sharply lower as investors booked profits in recent
outperformers. Today (As of Feb 8), Asian markets opened higher
following recovery in global market. Both Nikkei and Hang Seng were
trading up 0.56% and 0.45% (as at 8.a.m. IST).
• As per the last close, European market ended in green following gains in
Wall Street on Feb 6 and in afternoon trade of last session. Strong
corporate earnings also boosted market.
• As per the last close, U.S markets ended lower as investors were
cautious of rising inflation that pushed U.S. 10-year treasury yield higher.
The threat of a government shutdown also weighed investor’s sentiments.
FII Derivative Trade Statistics 07-Feb
(Rs Cr) Buy
Sell Open Int.
Index Futures 5707.45 7345.69 18270.33
Index Options 129441.34 126605.14 78384.50
Stock Futures 16169.79 14733.16 75111.83
Stock Options 9939.15 9980.21 6738.22
Total 161257.73 158664.20 178504.88
07-Feb Prev_Day
Change
Put Call Ratio (OI) 1.01 1.13 -0.12
Indian Debt Market
Put Call Ratio(Vol) 0.81 0.99 -0.18
07-Feb Wk. Ago Mth. Ago
Year Ago
Call Rate 5.88% 5.92% 5.88% 6.09%
CBLO 5.90% 5.85% 4.79% 6.19%
Repo 6.00% 6.00% 6.00% 6.25%
Reverse Repo 5.75% 5.75% 5.75% 5.75%
91 Day T-Bill 6.40% 6.36% 6.13% 6.10%
364 Day T-Bill 6.58% 6.58% 6.47% 6.13%
10 Year Gilt 7.53% 7.43% 7.17% 6.43%
G-Sec Vol. (Rs.Cr) 38287 33473 52738 50374
Currency Market Update
1 Month CP Rate 6.88% 6.95% 6.81% 6.64%
3 Month CP Rate 7.79% 7.76% 7.24% 6.98%
5 Year Corp Bond 7.86% 7.82% 7.67% 7.08%
1 Month CD Rate 6.25% 6.27% 6.20% 6.16%
3 Month CD Rate 7.24% 7.17% 6.77% 6.36%
1 Year CD Rate 7.52% 7.47% 7.10% 6.51%
Commodity Market Update
Currency 07-Feb Prev_Day
Change
USD/INR 64.14 64.27 -0.13
GBP/INR 89.50 89.72 -0.22
EURO/INR 79.43 79.52 -0.09
International News
JPY/INR 0.59 0.59 0.00
Commodity 07-Feb Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 61.89 64.77 61.44 52.14
Brent Crude($/bl) 65.48 67.65 68.50 53.48
Gold( $/oz) 1318 1345 1320 1234
Gold(Rs./10 gm) 30182 30207 29443 29305
Source: ICRON Research
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
08 February 2018
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Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
• Bond yields fell as the policy meeting by the Monetary Policy
Committee (MPC) was less hawkish than feared by investors. Also, no
clarity on future rate hike by the MPC soothed investors’ nerves.
• Yield on the 10-year benchmark paper (7.17% GS 2028) fell 4 bps to
close at 7.53% as against previous session’s close of 7.57%. During the
session, bond yields traded in the range of 7.49% and 7.61%.
• Banks’ borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 4,789 crore (gross) on Feb 7 compared with Rs.
2,420 crore on Feb 6. Sale of securities under Reserve Bank of India’s
(RBI) reverse repo window stood at Rs. 6,557 crore on Feb 6.
• Banks did not borrow under the central bank’s Marginal Standing
Facility on Feb 6 as against borrowing of Rs. 20 crore on Feb 5.
• According to the European Commission, euro zone’s economy will
grow from 2.3% in 2018, up from the previous expectation of 2.1%.
Similarly, it now expects 2% growth in 2019 as against its previous
expectation of 1.9%. The upside is driven by stronger cyclical
momentum in Europe and better than expected pick-up in global
economic activity and trade.
• A report from Destatis showed that Germany’s industrial output fell
0.6% MoM in Dec 2017 as against revised 3.1% gain in Nov 2017.
Production (excluding energy and construction) fell 0.7%. Energy
production grew 1.4% in Dec and construction output fell 1.7%.
Markets for You
• Nifty Feb 2018 Futures were at 10,465.55 points, a discount of 11.15
points below the spot closing of 10,476.70. The turnover on NSE’s
Futures and Options segment went down from Rs. 9,44,331.22 crore on
Feb 6 to Rs. 7,26,957.69 crore on Feb 7.
• The Put-Call ratio stood at 0.80 against previous session’s close of 0.80.
• The Nifty Put-Call ratio stood at 1.01 against previous session’s close of
1.13.
• India VIX moved down 2.75% to 19.4650 from 20.0150 in the previous
trading session.
• Open interest on Nifty Futures stood at 24.33 million as against the
previous session’s close of 23.50 million.
• The Indian rupee fell marginally as early gains in the domestic equity
market were minimised after MPC kept its policy rates steady. However,
losses were limited on greenback purchases by state-run banks. The
rupee fell 0.05% to close at 64.28 from the previous close of 64.24.
• Euro fell against the U.S. dollar on disappointment over reports that the
leader of Germany’s Social Democrats would not be taking over as
finance minister for Europe’s biggest economy. Euro was trading at
$1.2338 compared with the previous close of $1.2376.
• Gold prices slipped amid strength in U.S. dollar against euro.
• Brent crude prices traded lower following ongoing concerns over rising
U.S. stockpiles, which overshadowed Organization of Petroleum
Exporting Countries’ (OPEC) ongoing efforts to drain the market of excess
supplies.
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