Mutual Fund News of 28th February 2019

28 Feb 2019

Markets for You

Global Indices

Global Indices 27-Feb Prev_Day Abs. Change

% Change

Dow Jones 25,985 26,058 -73 -0.28

Nasdaq 7,555 7,549 5 0.07

FTSE 7,107 7,151 -44 -0.61

Nikkei 21,557 21,449 107 0.50

Hang Seng 28,757 28,772 -15 -0.05

Indian Indices 27-Feb Prev_Day Abs. Change

% Change

S&P BSE Sensex 35,905 35,974 -68 -0.19

Nifty 50 10,807 10,835 -29 -0.26

Nifty 100 10,962 10,982 -20 -0.18

Nifty Bank 26,799 26,953 -154 -0.57

SGX Nifty 10,801 10,828 -28 -0.25

S&P BSE Power 1,812 1,820 -8 -0.45

S&P BSE Small Cap 13,573 13,550 23 0.17

S&P BSE HC 13,711 13,668 43 0.31

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

27-Feb 26.15 1.20 26.36 1.25

Month Ago 23.68 1.17 26.14 1.25

Year Ago 23.95 1.15 25.87 1.12

Nifty 50 Top 3 Gainers

Company 27-Feb Prev_Day

% Change

Ultratech Cem 3889 3789 2.65

Bajaj Auto 2915 2859 1.94

United Phos 869 855 1.67

Nifty 50 Top 3 Losers Domestic News

Company 27-Feb Prev_Day

% Change

Bharti Infratel 297 308 -3.65

Wipro 374 388 -3.42

Vedanta 165 170 -2.98

Advance Decline Ratio

BSE NSE

Advances 1140 849

Declines 1401 955

Unchanged 163 90

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* 13373

MF Flows** 15302

*27

Feb 2019; **26

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)

28 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

-371

1663

3.38%

(Oct-18)

• The task force established to draft a new direct tax law to replace the

existing Income Tax Act has sought 2-3 months extension from the finance

minister. The task force was scheduled to submit the report by Feb 28,

2019. With a 3-month extension, the report of the task force would come

before the final budget for 2019-20 fiscal — to be presented in Jul 2019

after the general elections. The Prime Minister, during the annual

conference of tax officers in Sep 2017, had observed that the Income-tax

Act, 1961, was drafted more than 50 years ago and needs to be redrafted.

The task force was assigned to draft direct tax laws in line with the

regulations prevalent in other countries, incorporating international best

practices, and keeping in mind the economic needs of the country.

• The government has detected Rs. 20,000 crore worth goods and services

tax (GST) evasion so far in FY19. It will take more steps to check frauds and

increase compliance, according to media reports. Central Board of Indirect

Taxes and Customs member (Investigation) said the department would

soon call a meeting of the representatives of the real estate sector to

understand transition issues faced by the sector after reduction in GST

rates.

• The government could transfer Rs. 2,000 each to at least 10 million more

farmers by Mar 1, 2019. This will carry forward the PM-KISAN scheme that

Prime Minister launched on Feb 24, 2019. The government has registered

37.1 million farmers from across the country. After the second round of

fund transfer later in the week, the government will make payments on a

regular basis as and when data is validated by the Public Financial

Management System (PFMS).

• Syndicate Bank announced that it is planning to bring down the gross

NPA to below 12% and the net NPA to below 6% in the current year from

the existing level of 12.5% and 6.5%, respectively. According to the bank’s

chief executive officer (CEO), the bank has made a profit in the third

quarter after posting losses in the previous quarters of FY19. The CEO also

expects to settle bad loans worth Rs. 18,000 crore early.

Markets for You

• Indian equity markets dipped over escalating tensions between India

and Pakistan. The two are engaging in air confrontations and fears are that

the situation could go out of hand. The market had started the day on a

positive note on upbeat global cues after the Federal Reserve chairman

iterated that the central bank will be patient while hiking rates in the

future.

• Key benchmark indices S&P BSE Sensex and Nifty 50 dropped 0.19% and

0.26% to close at 35,905.43 and 10,806.65, respectively. S&P BSE Mid-Cap

and S&P BSE Small Cap lost 0.40% and 0.17%, respectively.

• The overall market breadth on BSE was weak with 1140 scrips advancing

and 1401 scrips declining. A total of 163 scrips remained unchanged.

• On the BSE sectoral front, S&P BSE Capital Goods was the major gainer,

up 1.13%, followed by S&P BSE Industrials and S&P BSE Basic Materials, up

0.49% and 0.48%, respectively. S&P BSE Healthcare and S&P BSE Auto

gained 0.31% each. S&P BSE Consumer Durables was the major loser,

down 0.7%, followed by S&P BSE Power and S&P BSE Bankex, down 0.45%

and 0.44%, respectively. S&P BSE Telecom and S&P BSE Metal lost 0.43%

and 0.42%, respectively.

• Asian equity markets were mostly higher as investors welcomed dovish

comments by the U.S. Federal Reserve chairman on monetary policy. The

chief iterated the U.S. central bank will stay patient on monetary policy

keeping in mind the economic headwinds. They also looked forward to the

second summit between the U.S. President and North Korean leader in

Vietnam. Today (as of Feb 28), Asian markets opened lower following

geopolitical concerns and trade concerns. Both Nikkei and Hangseng was

trading up 0.38% and 0.13%, respectively (as at 8.a.m. IST).

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

cautious over second summit between the U.S. President and North

Korean leader. More than expected fall in eurozone economic sentiment

in Feb 2019 also weighed on the market.

• As per the last close, U.S markets closed mostly lower following renewed

concerns over U.S. China trade war after a U.S. Trade Representative

indicated that a trade deal was not yet certain. A slew of geopolitical

issues also weighed on the market.

FII Derivative Trade Statistics 27-Feb

(Rs Cr) Buy

Sell Open Int.

Index Futures 7198.82 7897.09 31118.94

Index Options 196036.72 196608.71 62657.34

Stock Futures 34002.56 33440.82 94342.54

Stock Options 9236.65 9427.72 11069.14

Total 246474.75 247374.34 199187.96

27-Feb Prev_Day

Change

Put Call Ratio (OI) 1.37 1.40 -0.03

Indian Debt Market

Put Call Ratio(Vol) 1.31 1.19 0.12

27-Feb Wk. Ago Mth. Ago

Year Ago

Call Rate 6.26% 6.29% 6.41% 5.93%

T-Repo 6.26% 6.34% 6.39% NA

Repo 6.25% 6.25% 6.50% 6.00%

Reverse Repo 6.00% 6.00% 6.25% 5.75%

91 Day T-Bill 6.36% 6.40% 6.54% 6.26%

364 Day T-Bill 6.55% 6.50% 6.76% 6.50%

10 Year Gilt 7.67% 7.55% 7.55% 7.67%

G-Sec Vol. (Rs.Cr) 35604 23364 32425 24462

Currency Market Update

FBIL MIBOR* 6.35% 6.31% 6.54% 6.04%

3 Month CP Rate 7.75% 7.75% 7.65% 7.90%

5 Year Corp Bond 8.43% 8.40% 8.49% 8.13%

1 Month CD Rate 6.75% 6.65% 6.64% 6.24%

3 Month CD Rate 7.34% 7.39% 7.27% 7.25%

1 Year CD Rate 7.96% 7.62% 7.88% 7.56%

Commodity Market Update

Currency 27-Feb Prev_Day

Change

USD/INR 71.17 71.10 0.07

GBP/INR 94.22 93.36 0.86

EURO/INR 80.97 80.75 0.22

International News

JPY/INR 0.64 0.64 0.00

Commodity 27-Feb Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 56.87 56.85 53.48 62.93

Brent Crude($/bl) 65.49 67.36 61.93 68.23

Gold( $/oz) 1320 1338 1303 1318

Gold(Rs./10 gm) 33367 33730 32303 30496

Source: Thomson Reuters Eikon

*As on previous trading day

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

28 February 2019

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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

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Bond yields saw a sharp rise with the rising geo-political risk between

India and Pakistan. Concerns escalated after Pakistan carried out

airstrikes and shot down two Indian jets.

• Yield on the existing 10-year benchmark paper (7.17% GS 2028) rose 8

bps to close at 7.67% as compared with the previous session’s close of

7.59% after trading in the range of 7.59% to 7.70%.

• Yield on the upcoming new 10-year benchmark paper (7.26% GS 2029)

rose 5 bps to close at 7.47% compared with the previous session’s close

of 7.42% after trading in the range of 7.42% to 7.50%.

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

Facility (LAF) stood at Rs. 13,347 crore (gross) on Feb 27, 2019, compared

with Rs. 3,342 crore (gross) as on Feb 26, 2019. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 38,511

crore on Feb 26, 2019.

• A Commerce Department report, which was delayed by the government

shutdown, showed a much steeper than expected decline in U.S. housing

starts in Dec 2018. The report said housing starts declined 11.2% to an

annual rate of 1.078 million in Dec from the revised Nov 2018 estimate of

1.214 million.

• Conference Board report showed consumer confidence in the U.S.

rebounded in Feb 2019 following three straight monthly decreases. The

Conference Board said its consumer confidence index jumped to 131.4 in

Feb after falling to 121.7 in Jan 2019.

Markets for You

• Nifty Feb 2019 Futures were at 10,809.45, a premium of 2.80 points,

over the spot closing of 10,806.65. The turnover on NSE’s Futures and

Options segment increased to Rs. 14,77,021.36 crore on Feb 27, 2019.

• The Put-Call ratio stood at 1.10, compared with the previous session’s

close of 1.03.

• The Nifty Put-Call ratio stood at 1.37 compared with the previous

session’s close of 1.40.

• India VIX rose 12.24% to 19.2100 compared with 17.1150 at the previous

trading session.

• Open interest on Nifty Futures stood at 23.26 million as against the

previous session’s close at 22.98 million.

• The Indian rupee fell against the greenback following the rising

antagonism and geo-political risk between India and Pakistan. Investors

are closely watching any development on the geo-political space. The

rupee closed at 71.22 a dollar, down 0.22% compared with the previous

close of 70.06.

• The euro rose following the British Prime Minister’s proposal for a vote

to offer a limited extension on Brexit. The euro was last seen trading at

1.1397 a dollar, up 0.11% compared with the previous close of 1.1385.

• Gold prices were mixed ahead of the U.S. Federal Reserve’s second day

of testimony and U.S. reports on home prices and consumer confidence.

• Brent crude prices rose following reports that OPEC and its allies will

continue with their plan of trimming oil supply.

Thank you for

your time.