Mutual Fund News of 7th January 2019

07 Jan 2019

Markets for You

Global Indices

Global Indices 04-Jan Prev_Day Abs. Change

% Change

Dow Jones 23,433 22,686 747 3.29

Nasdaq 6,739 6,464 275 4.26

FTSE 6,837 6,693 145 2.16

Nikkei 19,562 Closed NA NA

Hang Seng 25,626 25,064 562 2.24

Indian Indices 04-Jan Prev_Day Abs. Change

% Change

S&P BSE Sensex 35,695 35,514 181 0.51

Nifty 50 10,727 10,672 55 0.52

Nifty 100 10,966 10,915 51 0.47

Nifty Bank 27,195 26,960 235 0.87

SGX Nifty 10,804 10,725 79 0.74

S&P BSE Power 1,966 1,947 19 0.97

S&P BSE Small Cap 14,592 14,573 20 0.14

S&P BSE HC 13,823 13,742 80 0.59

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

4-Jan 23.43 1.17 25.84 1.26

Month Ago 23.39 1.22 26.30 1.22

Year Ago 25.25 1.12 26.86 1.08

Nifty 50 Top 3 Gainers

Company 04-Jan Prev_Day

% Change

Bharti Infratel 285 272 4.95

Yes Bank 190 184 3.01

Tata Motors 171 166 2.95

Nifty 50 Top 3 Losers Domestic News

Company 04-Jan Prev_Day

% Change

HCL Tech 932 948 -1.69

Tech Mahindra 681 691 -1.47

TCS 1877 1900 -1.22

Advance Decline Ratio

BSE NSE

Advances 1288 883

Declines 1319 893

Unchanged 158 112

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -2023

MF Flows** 1171

Jan 2019; **3

Jan 2019

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)

07 January 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

439

-1058

4.17%

(Jul-18)

• Indian equity markets ended the week in the green as global cues came

in positive and the rupee strengthened against the U.S dollar. The gains

were limited by an anxious lot of investors as companies are going to

start reporting their earnings in the coming week.

• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 0.51% and

0.52% to close at 35,695.10 and 10,727.35, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap gained 0.48% and 0.14%, respectively.

• The overall market breadth on BSE was weak with 1,319 scrips

declining and 1,288 scrips advancing. A total of 158 scrips remained

unchanged.

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

2.73%, followed by S&P BSE Metal and S&P BSE Basic Utilities, up 1.44%

and 1.03%, respectively. S&P BSE Finance and S&P BSE Power gained

0.97% each. S&P BSE Information Technology was the major loser, down

1.15%, followed by S&P BSE Teck and S&P BSE Consumer Durables, down

0.58% and 0.19%, respectively. A strengthening rupee is putting pressure

on IT companies since they drive a majority of their revenues from

exports.

• The Nikkei India Services Purchasing Managers' Index (PMI) fell to 53.2

in Dec 2018 from 53.7 in Nov 2018. The downside reflects moderated

pace of new work orders and business activity compared with Nov,

though job creation saw a significant uptick. Seasonally adjusted Nikkei

India Composite PMI Output Index fell to 53.6 in Dec 2018 as against

54.5 in Nov 2018 because of weaker rise in private sector output.

• A parliamentary committee has asked the Reserve Bank of India (RBI)

to ease capital adequacy rules for banks and review supervisory Prompt

Corrective Action (PCA) framework. The panel has requested the

government to set up a committee to look into issues concerning

accountability of RBI as a regulator. The standing committee on finance

has asked the central bank to evaluate the efficacy of its own guidelines

on dealing with frauds. The committee suggested increasing the

retirement of age of chiefs of public sector banks to 70 years and effect

proper manpower planning and HR development strategies.

• A major global rating and research agency has said RBI’s decision to

allow a one-time restructuring of some loans to micro, small and

medium enterprises (MSMEs) will foster indiscipline among borrowers.

The relief to small businesses was the new RBI governor’s first big policy

step after taking seat.

• Economic affairs secretary has said the government has not yet

decided on further printing of Rs. 2,000 notes as there are more than

adequate notes of this denomination in the system. Printing of notes is

planned as per requirement, he said. The Rs. 2,000 notes constitute 35%

by value of the total circulation.

• The Goods and Services Tax (GST) anti-profiteering authority has issued

orders against nine businesses. These businesses were found to have not

passed on rate cut benefits of Rs. 559.88 crore to borrowers. Minister of

State for Finance said the GST Council has recommended goods and

services tax rate reduction in respect of 400 groups of goods and 96

groups of services.

• Asian equity markets were mostly high with the exception of Japan.

Investor sentiment was buoyed by strong Chinese services data and

progress on U.S.-China trade front. The two countries have decided to

hold vice-ministerial level trade talks in Beijing on Jan 7-8. Japan fell as

yen strengthened against the U.S. dollar. Today (as of Jan 7), Asian

markets opened higher as investor sentiment slightly boosted ahead of a

round of trade negotiations between U.S and China. Nikkei and Hangseng

grew 3.23% and 1.14%, respectively (as at 8.a.m. IST).

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

U.S. nonfarm payrolls and six-month high China's service sector growth

data for Dec 2018. Also, statement from the China’s commerce ministry

that the U.S. and China would hold trade talks on Jan 7-8 boosted market

sentiment.

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

job growth data in Dec 2018. Comments from the U.S. Federal Reserve

Chairman that central bank could pause its rate hikes and there is no

preset path for policy boosted investor sentiment.

Markets for You

FII Derivative Trade Statistics 04-Jan

(Rs Cr) Buy

Sell Open Int.

Index Futures 2852.03 3329.04 28118.97

Index Options 156098.00 154396.04 45362.19

Stock Futures 11042.05 11955.46 79360.82

Stock Options 5219.46 5079.06 5403.88

Total 175211.54 174759.60 158245.86

04-Jan Prev_Day

Change

Put Call Ratio (OI) 1.34 1.34 0.01

Indian Debt Market

Put Call Ratio(Vol) 0.76 0.84 -0.08

04-Jan Wk. Ago Mth. Ago

Year Ago

Call Rate 6.31% 6.57% 6.35% 5.81%

T-Repo 6.23% 6.52% 6.30% --

Repo 6.50% 6.50% 6.50% 6.00%

Reverse Repo 6.25% 6.25% 6.25% 5.75%

91 Day T-Bill 6.58% 6.52% 6.70% 6.11%

364 Day T-Bill 6.85% 6.93% 7.18% 6.47%

10 Year Gilt 7.45% 7.39% 7.57% 7.33%

G-Sec Vol. (Rs.Cr) 34618 29338 50826 25971

Currency Market Update

FBIL MIBOR 6.46% 6.68% 6.47% 5.95%

3 Month CP Rate 7.85% 7.25% 7.55% 7.19%

5 Year Corp Bond 8.38% 8.26% 8.48% 8.02%

1 Month CD Rate 6.73% 7.09% 6.61% 6.21%

3 Month CD Rate 7.49% 7.01% 7.37% 6.75%

1 Year CD Rate 8.16% 8.05% 8.27% 7.12%

Commodity Market Update

Currency 04-Jan Prev_Day

Change

USD/INR 69.87 70.36 -0.50

GBP/INR 88.26 88.28 -0.02

EURO/INR 79.57 79.92 -0.35

International News

JPY/INR 0.65 0.66 -0.01

Commodity 04-Jan Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 47.71 45.10 53.16 61.93

Brent Crude($/bl) 55.23 50.51 61.24 69.22

Gold( $/oz) 1285 1281 1238 1323

Gold(Rs./10 gm) 31769 31547 30945 29341

Source: Thomson Reuters Eikon

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

07 January 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

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty Jan 2019 Futures were at 10,777.60, a premium of 50.25 points,

over the spot closing of 10,727.35. The turnover on NSE’s Futures and

Options segment declined to Rs. 6,87,035.88 crore on Jan 4, 2019,

compared with Rs. 18,81,982.17 crore on Jan 3.

• The Put-Call ratio stood at 0.84 compared with the previous session’s

close of 0.75.

• The Nifty Put-Call ratio stood at 1.34, unchanged from the previous

session’s close.

• Open interest on Nifty Futures stood at 26.43 million as against the

previous session’s close at 26.15 million.

• Bond yields rose on fears of widening fiscal deficit, which dampened

the bond market sentiment. In addition, the steep rise in crude oil prices

also triggered the yield to end higher.

• Yield on the 10-year benchmark paper (7.17% GS 2028) increased 2

bps to close at 7.45% as compared with 7.43% in the previous session

after trading in the range of 7.40% to 7.47%.

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

Facility (LAF) stood at Rs. 3,082 crore (gross) on Jan 4, 2019 compared

with a borrowing of Rs. 3,661 crore (gross) on Jan 3, 2019. Sale of

securities under Reserve Bank of India’s (RBI) reverse repo window

stood at Rs. 25,664 crore on Jan 3, 2019.

• Banks did not borrow under the central bank’s Marginal Standing

Facility on Jan 3, 2019 compared with borrowing of Rs. 60 crore on Jan

2, 2019.

• The Indian rupee strengthened on dollar weakness. The greenback is

reeling under the pressure of concerns over U.S. economic growth and

the Federal Reserve’s policy stance on interest rate hikes. The rupee

closed at 69.72 a dollar, up 0.67% compared with the previous close of

70.19.

• The euro continued to gain as anticipation of weak U.S. factory activity

and concerns over the Federal Reserve’s policy stance on slowing the

pace of interest rate hikes weighed down on the greenback.

• Gold prices tumbled on signs of easing trade tension between U.S. and

China as the two economies scheduled to hold trade talks for resolving

disputes.

• Brent crude prices rebound on signs of easing global growth worries.

• According to the Labor Department, non-farm payroll employment

soared by 312,000 jobs in Dec 2018 after climbing by 176,000 jobs in

Nov 2018.

• IHS Markit data showed British services sector expanded at a faster

than expected pace at the end of 2018. This happened as modest gains

were seen in activity and demand. The CIPS U.K. Services PMI increased

to 51.2 from 50.4 in Nov 2018, which is a 28-month low.

• Nikkei data showed Japan’s manufacturing sector continued to expand

in Dec 2018 at a faster rate. The PMI score came in at 52.6, up from the

15-month low of 52.2 in Nov 2018.

Markets for You

Thank you for

your time.