Mutual Fund News of 3rd July 2018 – Reliance Mutual Fund

03 Jul 2018

Markets for You

Global Indices

Global Indices 02-Jul Prev_Day Abs. Change

% Change

Dow Jones 24,307 24,271 36 0.15

Nasdaq 7,568 7,510 57 0.76

FTSE 7,548 7,637 -89 -1.17

Nikkei 21,812 22,305 -493 -2.21

Hang Seng Closed 28,955 NA NA

Indian Indices 02-Jul Prev_Day Abs. Change

% Change

S&P BSE Sensex 35,264 35,423 -159 -0.45

Nifty 50 10,657 10,714 -57 -0.53

Nifty 100 10,930 10,993 -64 -0.58

Nifty Bank 26,230 26,364 -134 -0.51

SGX Nifty 10,648 10,676 -28 -0.26

S&P BSE Power 1,914 1,947 -33 -1.69

S&P BSE Small Cap 15,920 16,032 -112 -0.70

S&P BSE HC 13,961 14,004 -43 -0.30

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

2-Jul 22.40 1.27 25.76 1.23

Month Ago 23.23 1.14 27.09 1.23

Year Ago 22.64 1.27 24.23 1.12

Nifty 50 Top 3 Gainers

Company 02-Jul Prev_Day

% Change

Asian Paints 1293 1264 2.26

Infosys 1335 1307 2.10

Vedanta 240 236 1.55

Nifty 50 Top 3 Losers Domestic News

Company 02-Jul Prev_Day

% Change

NTPC 154 160 -3.82

Ambuja Cem 200 207 -3.64

Bharti Airtel 368 382 -3.64

Advance Decline Ratio

BSE NSE

Advances 914 609

Declines 1691 1196

Unchanged 160 76

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -4306

MF Flows** 65926

Jul 2018; **28

Jun 2018

Economic Indicator

YoY(%) Current Year Ago

CPI

4.87%

(May-18)

2.18%

(May-17)

IIP

4.90%

(Apr-18)

3.20%

(Apr-17)

GDP

7.70%

(Mar-18)

6.10%

(Mar-17)

03 July 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

7.40%

(Jan-18)

7.00%

(Dec-17)

Quarter Ago

Inflow/Outflow

-69

1738

4.44%

(Feb-18)

• The equity markets was dragged down by weak cues from Asian

markets. Persistent concerns over U.S. - China trade war and lower than

expected Chinese manufacturing data for Jun 2018 dampened market

sentiment.

• Downside was restricted by the results of a private survey showing

improvement in domestic manufacturing conditions in Jun. Statement by

U.S. President regarding agreement with Saudi Arabia on increasing oil

production, halted the recent rally in oil prices.

• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.45% and

0.53% to close at 35,264.41 and 10,657.30, respectively. S&P BSE Mid-

Cap and S&P BSE Small-Cap slipped 0.75% and 0.70%, respectively.

• The overall market breadth on BSE was weak with 1,691 scrips

declining and 914 scrips advancing. A total of 160 scrips remained

unchanged.

• On the BSE sectoral front, barring S&P BSE IT, S&P BSE Consumer

Durables and S&P BSE Teck, all the indices closed in the red. S&P BSE

Telecom was the major loser, down 2.61%, followed by S&P BSE Metal

and S&P BSE Power, which fell 1.80% and 1.69%, respectively.

• Government data showed that the index of eight core industries

witnessed a growth of 3.6% on a yearly basis in May 2018, down from

4.6% in the previous month and 3.9% in the same month of the previous

year. The coal sector witnessed the maximum growth of 12.1% on a

yearly basis followed by fertilizers sector and cement sector that

witnessed a growth of 8.4% and 5.2% respectively. The refinery products

sector, electricity sector and steel sector witnessed yearly growth of

4.9%, 3.5% and 0.5%, respectively. However, the crude oil sector and

natural gas sector contracted 2.9% and 1.4% during the same time

period, cumulative growth during Apr to May, 2018-19 came in at 4.1%.

• The Nikkei India Manufacturing Purchasing Managers' Index (PMI), rose

to 53.1 in Jun 2018 from 51.2 in May 2018. This is the strongest reading

in 2018 so far. The increase came due to strong growth in output and

new orders that rose at the fastest rates in this year, so far.

• According to a statement by the Labor Ministry, consumer price

inflation for industrial workers stood at 3.96% in May 2018 as against

3.97% in Apr 2018 and 1.09% in May 2017. The food inflation based on

CPI-IW (Consumer Price Index-Industrial Workers) rose to 1.66% in May

as compared with 1.33% in Apr and fall of 1.63% during May 2017.

• Bajaj Auto’s total sales came in at 4,04,429 units in Jun 2018, up 65%

YoY from 2,44,878 units in Jun 2017. Motorcycle sales came in at

3,37,752 units in Jun 2018, up from 2,04,667 units in Jun 2017.

• U.S. Food and Drug Administration (USFDA) has given the approval to

Aurobindo Pharma for manufacturing and and marketing of Ibuprofen

capsules. The capsules that will launched in Sep 2018 will be used to

relieve pain and reduce fever.

• Coal India Limited’s coal production came in at 136.87 million tonne

during the first quarter ended Jun 2018, up 15.2% YoY. However,

according to the media reports, it missed the production target by 9%.

Meanwhile, the supply to power plants also surged 15.4% to 122.84

million tonne.

Markets for You

• Asian markets largely remained in the red as investor sentiments were

weighed down by weak Chinese manufacturing data for Jun 2018.

Persisting concerns over trade war between U.S. and China continued to

be a spoilsport for the markets. Today (as of Jul 3), Asian markets opened

mixed. Trade tensions between the U.S. and its trading partners weighed

on the market, while gains in the Wall Street boosted investor’s

sentiments. Nikkei was trading up 0.13% while Hang Seng was trading

down 2.46% (as at 8.a.m. IST).

• As per the last close, European markets closed lower as concerns over

global trade continue to weigh on investor sentiment.

• As per the last close, U.S markets closed higher after release of a report

from the Institute for Supply management showing growth in U.S.

manufacturing activity unexpectedly accelerated in the month of Jun

2018. However, trade concerns relation between the U.S. and China

capped the gains.

FII Derivative Trade Statistics 02-Jul

(Rs Cr) Buy

Sell Open Int.

Index Futures 3814.48 2371.82 18387.33

Index Options 43986.51 43924.04 49740.21

Stock Futures 12014.48 11911.52 78549.94

Stock Options 4694.67 4645.35 2421.74

Total 64510.14 62852.73 149099.22

02-Jul Prev_Day

Change

Put Call Ratio (OI) 1.48 1.45 0.02

Indian Debt Market

Put Call Ratio(Vol) 0.85 0.90 -0.05

02-Jul Wk. Ago Mth. Ago

Year Ago

Call Rate 6.12% 6.23% 5.98% 6.11%

CBLO 6.10% 6.26% 5.98% 6.18%

Repo 6.25% 6.25% 6.00% 6.25%

Reverse Repo 6.00% 6.00% 5.75% 6.00%

91 Day T-Bill 6.42% 6.44% 6.43% 6.28%

364 Day T-Bill 7.11% 7.00% 6.86% 6.35%

10 Year Gilt 7.91% 7.82% 7.85% 6.51%

G-Sec Vol. (Rs.Cr) 13776 26377 15457 53131

Currency Market Update

FBIL MIBOR 6.25% 6.35% 6.05% 6.25%

3 Month CP Rate 7.40% 7.50% 8.05% 6.69%

5 Year Corp Bond 8.82% 8.70% 8.62% 7.54%

1 Month CD Rate 6.60% 7.16% 6.59% 6.33%

3 Month CD Rate 6.82% 6.96% 7.58% 6.35%

1 Year CD Rate 8.11% 8.07% 8.25% 6.69%

Commodity Market Update

Currency 02-Jul Prev_Day

Change

USD/INR 68.62 68.58 0.05

GBP/INR 90.43 89.93 0.50

EURO/INR 79.96 79.85 0.11

International News

JPY/INR 0.62 0.62 0.00

Commodity 02-Jul Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 73.84 68.76 65.81 45.97

Brent Crude($/bl) 76.05 72.56 74.48 47.12

Gold( $/oz) 1242 1265 1293 1241

Gold(Rs./10 gm) 30348 30540 30764 28803

Source: Thomson Reuters Eikon

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

03 July 2018

The information herein is meant only for general reading purposes and contains all factual and statistical information pertaining to Industry and markets which have been obtained from independent

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

such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrive data; RNLAM does not in any manner assures

the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect RNLAM’s views or opinions, which in turn may have been

formed on the basis of such data or information. The Sponsor(s), the Investment Manager, the Trustee or any of their respective directors, employees, affiliates or representatives do not assume any

responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such data or information. Whilst no action has been solicited based upon the information provided herein, due

care has been taken to ensure that the facts are accurate and opinions given are fair and reasonable, to the extent possible. This information is not intended to be an offer or solicitation for the

purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own investigations. Before making any investments, the

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their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on

account of lost profits arising from the information contained in this material.

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty July 2018 Futures were at 10,658.25, a premeium of 0.95 points,

above the spot closing of 10,657.30. The turnover on NSE’s Futures and

Options segment went down to Rs. 5,63,024.34 crore on Jul 2 from Rs.

4,35,467.26 crore on Jun 29.

• The Put-Call ratio stood at 0.81 against previous session’s close of

0.82.

• The Nifty Put-Call ratio stood at 1.45 against the previous session’s

close of 1.48.

• India VIX moved up 3.96% to 13.4500 from 12.9375 in the previous

trading session.

• Open interest on Nifty Futures stood at 20.29 million as against the

previous session’s close at 20.26 million.

• Amid lower trade volumes, bond yields initially fell on short covering

by market participants. Gains were reversed following weakness in the

Indian rupee against the U.S. dollar.

• Yield on the 10-year benchmark paper (7.17% GS 2028) inched up 1

bps to close at 7.91% as against its previous close of 7.90%. During the

session, bond yields traded in the range of 7.86% and 7.92%.

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

Facility (LAF) stood at Rs. 3,871 crore (gross) on Jul 02, compared with

Rs. 9,718 crore (gross) borrowed on Jun 29. Sale of securities under the

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 16,921

crore on Jun 29.

• Banks borrowed Rs. 3,125 crore under the central bank’s Marginal

Standing Facility on Jun 29 against no borrowing on Jun 28.

• The rupee weakened against the greenback and ended at the lowest

level since Aug 28, 2013 following losses in the domestic equity market

due to ongoing trade disputes between the U.S. and China. The rupee

fell 0.48% to close at 68.80 per dollar from the previous close of 68.47

per dollar.

• The euro fell against the greenback as investor risk sentiment were

affected following escalating trade tensions between the U.S. and China.

Euro was last seen trading at $1.1608, down 0.64% from the previous

close of $1.1683.

• Gold prices inched down on stronger dollar and on expectations of a

faster rate hike by the Federal Reserve (Fed) in coming time.

• Brent crude prices fell on news that the Saudi Arabia had agreed to

raise more oil output that is likely to be around 2,000,000 barrels, basis

direction by the U.S. President.

• According to a report from the University of Michigan, U.S. consumer

sentiment index came in at 98.2 in Jun down from preliminary reading

of 99.3. However, it came in slightly higher than May reading of 98.0.

• According to a report from Eurostat, eurozone’s unemployment rate

remained unchanged at 8.4% in May 2018. This marked the lowest rate

since Dec 2008. Meanwhile, the number of people out of work fell by

125,000 as against the previous month to 13.656 million in May.

• According to a report from the IHS Markit, Eurozone’s factory

Purchasing Managers' Index fell to 54.9 in Jun 2018 as against 55.5 in

May 2018. This marked an 18-month low.

Markets for You

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your time.