Mutual Fund News of 21st February 2019

21 Feb 2019

Markets for You

Global Indices

Global Indices 20-Feb Prev_Day Abs. Change

% Change

Dow Jones 25,954 25,891 63 0.24

Nasdaq 7,489 7,487 2 0.03

FTSE 7,229 7,179 49 0.69

Nikkei 21,431 21,303 129 0.60

Hang Seng 28,514 28,228 286 1.01

Indian Indices 20-Feb Prev_Day Abs. Change

% Change

S&P BSE Sensex 35,756 35,353 404 1.14

Nifty 50 10,735 10,604 131 1.24

Nifty 100 10,865 10,731 134 1.25

Nifty Bank 26,956 26,685 271 1.01

SGX Nifty 10,762 10,612 151 1.42

S&P BSE Power 1,787 1,760 26 1.50

S&P BSE Small Cap 13,272 13,162 111 0.84

S&P BSE HC 13,379 13,314 64 0.48

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

20-Feb 22.97 1.20 26.50 1.26

Month Ago 23.96 1.16 26.19 1.24

Year Ago 23.34 1.18 25.09 1.09

Nifty 50 Top 3 Gainers

Company 20-Feb Prev_Day

% Change

Indiabulls HFC 645 614 5.03

Vedanta Limited 160 153 4.67

Adani Ports & SEZ 355 340 4.48

Nifty 50 Top 3 Losers Domestic News

Company 20-Feb Prev_Day

% Change

Hero Moto 2624 2637 -0.50

Bajaj Auto 2775 2788 -0.47

Dr.Reddy 2525 2537 -0.46

Advance Decline Ratio

BSE NSE

Advances 1490 1119

Declines 1121 676

Unchanged 155 105

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -3168

MF Flows** 12784

*20

Feb 2019; **19

Feb 2019

Economic Indicator

YoY(%) Current Year Ago

CPI

2.05%

(Jan-19)

5.07%

(Jan-18)

IIP

2.40%

(Dec-18)

7.30%

(Dec-17)

GDP

7.10%

(Sep-18)

6.30%

(Sep-17)

21 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

4.60%

(Sep-18)

8.20%

(Jun-18)

Quarter Ago

Inflow/Outflow

426

-1559

3.38%

(Oct-18)

• According to media reports, the Ministry of Finance will infuse Rs.

48,239 crore in 12 state run banks in this fiscal. The objective of the move

is to help the banks maintain regulatory capital requirements and finance

growth plans. The total amount of capital infusion with this funding will

thus increase to Rs. 1,00,958 crore of the planned recapitalisation of Rs

1.06 lakh crore for the state run banks in this fiscal.

• The Union Cabinet has approved the National Electronics Policy. The

policy aims at domestic production of electronics goods to touch $400

billion by 2025 against around $80 billion now. The policy has proposed

interest subvention scheme under which an interest subsidy of 4% will be

provided on loans of up to Rs. 1,000 crore on plant and machinery. In case

of a larger loan, subsidy will be limited to Rs. 1,000 crore.

• Foreign direct investment (FDI) into India shrank 7% to $33.49 billion

during Apr-Dec in FY19, according to commerce and industry ministry

data. Foreign fund inflows during Apr-Dec FY18 stood at $35.94 billion.

The sectors that received the maximum foreign investment during in the

nine months of the fiscal are services ($5.91 billion), computer software

and hardware ($4.75 billion), telecommunications ($2.29 billion), trading

($2.33 billion), chemicals ($6.05 billion), and the automobile industry

($1.81 billion).

• According to media reports, the US Supreme Court gave approval to Dr

Reddy's for the sale of generic versions of the drug Suboxone film which is

used for opioid addiction treatment. Dr Reddy's had to withdraw g-

Suboxone after it was launched in July, 2018 due to an ongoing patent

infringement litigation between the Dr Reddy's and Indivior.

• According to media reports, Moody’s Investors Service has revised the

outlook for both Tata Steel and JSW Steel to stable and positive,

respectively. The improvement comes as the global credit rating agency

noted improvement in companies’ credit profiles.

Markets for You

• Indian equity markets finally gained after an eight-day losing streak.

Investors were buoyed by developments on the U.S.-China trade front.

The U.S. President hinted that the truce between them could be extended,

which means raised tariffs on Chinese imports could be delayed.

• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 1.14% and

1.24%, respectively, to close at 35,756.26 and 10,735.45, respectively. S&P

BSE Mid-Cap and S&P BSE Small Cap gained 0.91% and 0.84%,

respectively.

• The overall market breadth on BSE was strong with 1490 scrips

advancing and 1121 scrips declining. A total of 155 scrips remained

unchanged.

• On the BSE sectoral front, all the sectors gained. S&P BSE Metal was the

major gainer, up 2.99%, followed by S&P BSE Basic Materials and S&P BSE

Oil & Gas, up 2.24% and 2.19%, respectively. S&P BSE Utilities and S&P BSE

Energy gained 1.78% and 1.64%, respectively. S&P BSE Power and S&P BSE

Information Technology gained 1.5% and 1.44%, respectively.

• Asian equity markets were mostly high as investors cheered encouraging

U.S. earnings and chances of a U.S.-China trade resolution seemed to

increase. The U.S. President said the U.S.-China trade talks are "going very

well" and hinted that the Mar deadline to reach a deal could be

postponed. Today (as of Feb 21), Asian markets opened lower a following

a choppy session on Wall Street as traders tried to interpret a release from

the U.S. Federal Reserve. Both Nikkei and Hangseng was trading down

0.48% and 0.39%, respectively (as at 8.a.m. IST).

• As per the last close, European markets closed higher following

optimism on U.S.- China trade talks. Investors were also optimistic over

U.S. Federal Reserve’s latest policy meeting minutes for clues on interest

rate and its balance sheet reduction policy.

• As per the last close, U.S markets closed modestly higher following

optimism about U.S.-China trade talks. Investors also digested the minutes

of the latest Federal Reserve meeting, providing further insight into the

central bank's decision to change the forward guidance language and

indicate a patient approach to raising interest rates.

FII Derivative Trade Statistics 20-Feb

(Rs Cr) Buy

Sell Open Int.

Index Futures 2928.54 2154.40 30576.74

Index Options 130140.23 130295.96 64276.65

Stock Futures 10570.82 10407.06 89102.94

Stock Options 8220.11 8358.04 10443.41

Total 151859.70 151215.46 194399.74

20-Feb Prev_Day

Change

Put Call Ratio (OI) 1.30 1.12 0.19

Indian Debt Market

Put Call Ratio(Vol) 0.87 0.85 0.03

20-Feb Wk. Ago Mth. Ago

Year Ago

Call Rate 6.29% 6.14% 6.45% 5.96%

T-Repo 6.34% 6.12% 6.49% --

Repo 6.25% 6.25% 6.50% 6.00%

Reverse Repo 6.00% 6.00% 6.25% 5.75%

91 Day T-Bill 6.40% 6.31% 6.50% 6.31%

364 Day T-Bill 6.50% 6.49% 6.79% 6.55%

10 Year Gilt 7.55% 7.47% 7.60% 7.67%

G-Sec Vol. (Rs.Cr) 23364 59946 30263 17498

Currency Market Update

FBIL MIBOR* Closed 6.35% 6.48% 6.05%

3 Month CP Rate 7.75% 7.40% 7.65% 7.88%

5 Year Corp Bond 8.39% 8.34% 8.44% 8.15%

1 Month CD Rate 6.65% 6.43% 6.68% 6.24%

3 Month CD Rate 7.39% 7.19% 7.14% 7.23%

1 Year CD Rate 7.62% 7.75% 7.87% 7.48%

Commodity Market Update

Currency 20-Feb Prev_Day

Change

USD/INR 71.18 Closed NA

GBP/INR 92.93 Closed NA

EURO/INR 80.71 Closed NA

International News

JPY/INR 0.64 Closed NA

Commodity 20-Feb Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 56.85 53.79 53.55 61.89

Brent Crude($/bl) 67.36 63.66 62.23 63.92

Gold( $/oz) 1338 1306 1281 1329

Gold(Rs./10 gm) 33730 32855 32276 30567

Source: Thomson Reuters Eikon

*As on 19th Feb 2019

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

21 February 2019

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty Feb 2019 Futures were at 10,751.85, a premium of 16.40 points,

over the spot closing of 10,735.45. The turnover on NSE’s Futures and

Options segment increased to Rs. 10,11,506.05 crore on Feb 20, 2019,

compared with Rs. 8,68,444.29 crore on Feb 19, 2019.

• The Put-Call ratio stood at 0.91, compared with the previous session’s

close of 0.88.

• The Nifty Put-Call ratio stood at 1.30 compared with the previous

session’s close of 1.12.

• Open interest on Nifty Futures stood at 24.34 million as against the

previous session’s close at 24.41 million.

• Bond yields lowered after the central bank announced to transfer an

amount of Rs. 280 billion as an interim surplus to bridge the fiscal deficit.

This was a positive surprise for the market, which helped ease the yield.

• Yield on the 10-year benchmark paper (7.17% GS 2028) declined 3 bps

at 7.55% as compared with the previous session’s close of 7.58% after

trading in the range of 7.54% to 7.58%.

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

Facility (LAF) stood at Rs. 18,726 crore (gross) on Feb 20, 2019, compared

with Rs. 20,926 crore (gross) as on Feb 18, 2019. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 4,671

crore on Feb 18, 2019.

• Banks borrowed Rs. 215 crore under the central bank’s Marginal

Standing Facility on Feb 18, 2019 compared with borrowing of Rs. 1,085

crore on Feb 15, 2019.

• The Indian rupee gained on dollar weakness ahead of the U.S. Federal

Reserve meeting minutes as market participants are expecting to get

clarity on the central bank’s plans on interest rate hikes. The rupee closed

at 71.11 a dollar, up 0.32% compared with the previous close of 71.34.

• The euro drifted lower, reeling under the pressure of economic

slowdown in the eurozone. The euro was last seen trading at 1.1334 a

dollar, down 0.05% compared with the previous close of 1.1340.

• Gold prices gained as investors awaited the minutes of the U.S. Federal

Reserve meeting to get further clarity on the interest rate hike plan for

the year.

• Brent crude prices declined following the rise in U.S. crude production

to a record 11.9 million barrels per day in 2018.

• The National Association of Home Builders report showed a significant

increase in U.S. homebuilder confidence in Feb 2019. This reflects

growing consumer confidence and falling interest rates. The report said

the NAHB/Wells Fargo Housing Market Index increased to 62 in Feb,

which is more than expectations, after rising to 58 in Jan 2019. With the

increase, the index continued to recover after hitting a more than three-

year low of 56 in Dec 2018.

• ZEW - Leibniz Centre for European Economic Research data showed

Germany's investor confidence improved further to its highest level in

five months in Feb 2019. The ZEW Indicator of Economic Sentiment for

Germany rose to -13.4 points from -15.0 points in Jan 2019.

Markets for You

Thank you for

your time.