05 Jul 2018
Markets for You
Global Indices
Global Indices 04-Jul Prev_Day Abs. Change
% Change
#
Dow Jones Closed 24,175 NA NA
Nasdaq Closed 7,503 NA NA
FTSE 7,573 7,593 -20 -0.27
Nikkei 21,717 21,786 -69 -0.31
Hang Seng 28,242 28,546 -304 -1.06
Indian Indices 04-Jul Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 35,645 35,379 267 0.75
Nifty 50 10,770 10,700 70 0.65
Nifty 100 11,033 10,974 59 0.54
Nifty Bank 26,434 26,204 230 0.88
SGX Nifty 10,777 10,747 30 0.27
S&P BSE Power 1,906 1,916 -10 -0.54
S&P BSE Small Cap 16,051 15,990 61 0.38
S&P BSE HC 14,326 14,212 114 0.80
Date P/E Div. Yield P/E Div. Yield
4-Jul 22.81 1.23 26.02 1.21
Month Ago 22.83 1.15 26.92 1.24
Year Ago 22.84 1.26 24.47 1.11
Nifty 50 Top 3 Gainers
Company 04-Jul Prev_Day
% Change
#
Bajaj Auto 2979 2862 4.08
Lupin 934 903 3.44
Bharti Infratel 300 292 2.74
Nifty 50 Top 3 Losers Domestic News
Company 04-Jul Prev_Day
% Change
#
HPCL 252 259 -2.53
Cipla 629 640 -1.80
BPCL 368 374 -1.62
Advance Decline Ratio
BSE NSE
Advances 1230 835
Declines 1378 942
Unchanged 137 99
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* -5135
MF Flows** 68279
*4
th
Jul 2018; **29
th
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)
05 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
Nifty
7.40%
(Jan-18)
7.00%
(Dec-17)
Quarter Ago
Inflow/Outflow
2353
-987
4.44%
(Feb-18)
• Indian Equity markets closed in the green following solid services PMI
data for Jun 2018. Further, cabinet’s approval to raise minimum support
price (MSP) for kharif crops improved market sentiment. However, a
section of investors remained worried as raise in MSP may create
inflationary pressure. Gains were capped as investors remained cautious
ahead of the deadline on U.S. imposition of tariff on goods imported from
China.
• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.75% and
0.65% to close at 35,645.40 and 10,769.90, respectively. S&P BSE Mid-Cap
fell 0.17% and S&P BSE Small Cap grew 0.38%.
• The overall market breadth on BSE was weak with and 1,378 scrips
declining and 1,230 scrips advancing. A total of 137 scrips remained
unchanged.
• On the BSE sectoral front, S&P BSE Auto was the major gainer, up 1.31%
followed by S&P BSE Energy that grew 1.03%. S&P BSE Healthcare and
S&P BSE Finance grew 0.80% and 0.78%, respectively. S&P BSE
Information Technology was the major loser, down 0.60% followed by
S&P BSE Teck that fell 0.55%.
• The Nikkei India Services Purchasing Managers' Index (PMI) climbed to
52.6 in Jun from 49.6 in May. This is the highest since June 2017. Further,
the recovery in services firms' activity, along with an improved
manufacturing growth lifted the composite PMI to 53.3, its highest level
since Oct 2016.
• The Cabinet Committee on Economic Affairs has raised minimum
support price (MSP) for kharif crops for FY19. MSP for common variety of
paddy has been increased by approximately Rs. 200 per quintal and that
of fine paddy from Rs. 1,550 in FY18 to Rs. 1,750. MSP has also been
raised for urad from Rs 5,400 per 100 kg to Rs. 5,600 per 100 kg. The
announcement comes as relief for farmers.
• The Securities and Exchange Board of India (SEBI) after consulting the
Reserve Bank of India increased the overseas investment limit of
alternative investment funds (AIFs) and venture capital funds (VCFs) to
$750 million from the current $500 million. The market regulator has also
asked AIFs and VCFs to disclose the utilisation of the such limits within 5
working days on the SEBI portal.
• The government will change the base year for calculation of Gross
Domestic Product (GDP) and retail inflation to 2017-18 and 2018
respectively. The same will likely come into effect by 2019-20. The
government had last revised the base year for GDP, IIP to 2011-12 and
consumer price index to 2012.
• By 2020, Maruti Suzuki is planning to increase its manufacturing
capacity by another 750,000 units from its three production lines in
Gujarat plant. This is expected to take its total capacity to more than 2.25
million units in a year. The company is analysing ways to increase its
production capacity to more than 2.25 million units per annum, after
2020.
• United States Food and Drug Administration has given final approval to
Unichem Laboratories for its Montelukast chewable tablets with strengths
of 4 mg and 5 mg. These tablets are used for prevention and treatment of
asthma.
Markets for You
• Asian markets traded mostly on lower note as investors remained
cautious over U.S. tariffs imposition plan on Chinese goods scheduled to
become effective from July 6. Stronger yen and lower cues from overnight
U.S. markets further weighed on the sentiments. However, the services
sector in Japan continued to expand in Jun at a faster rate as per the latest
survey from Nikkei PMI. Today (as of Jul 5), Asian markets opened lower
as investors were cautious ahead of deadline when tariffs from the U.S.
and China are due to be implemented. Both Nikkei and Hang Seng were
trading down 0.15% and 0.18%, respectively (as at 8.a.m. IST).
• As per the last close, European markets closed lower amid elevated
tensions between the U.S. and China over forthcoming trade tariffs and
investment restrictions implementation.
• As per the last close, U.S markets were closed on account of U.S.
Independance Day holiday.
FII Derivative Trade Statistics 04-Jul
(Rs Cr) Buy
Sell Open Int.
Index Futures 2610.73 2563.65 19322.63
Index Options 68038.37 67922.40 52310.58
Stock Futures 9905.46 9424.82 79603.74
Stock Options 4351.23 4347.15 3581.95
Total 84905.79 84258.02 154818.90
04-Jul Prev_Day
Change
Put Call Ratio (OI) 1.53 1.50 0.03
Indian Debt Market
Put Call Ratio(Vol) 1.08 0.87 0.22
04-Jul Wk. Ago Mth. Ago
Year Ago
Call Rate 6.09% 6.14% 5.87% 6.04%
CBLO 5.94% 6.09% 5.75% 6.04%
Repo 6.25% 6.25% 6.00% 6.25%
Reverse Repo 6.00% 6.00% 5.75% 6.00%
91 Day T-Bill 6.46% 6.51% 6.48% 6.27%
364 Day T-Bill 7.14% 7.10% 6.06% 6.35%
10 Year Gilt 7.85% 7.87% 7.88% 6.55%
G-Sec Vol. (Rs.Cr) 32259 23103 18363 49477
Currency Market Update
FBIL MIBOR 6.25% 6.28% 6.00% 6.22%
3 Month CP Rate 7.20% 7.55% 8.10% 6.71%
5 Year Corp Bond 8.83% 8.73% 8.65% 7.56%
1 Month CD Rate 6.54% 6.92% 7.21% 6.31%
3 Month CD Rate 7.12% 6.99% 7.73% 6.37%
1 Year CD Rate 8.14% 8.12% 8.25% 6.70%
Commodity Market Update
Currency 04-Jul Prev_Day
Change
USD/INR 68.53 68.69 -0.16
GBP/INR 90.52 90.35 0.18
EURO/INR 80.02 80.02 0.00
International News
JPY/INR 0.62 0.62 0.00
Commodity 04-Jul Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) Closed 76.16 64.76 45.97
Brent Crude($/bl) 76.58 75.58 73.35 49.39
Gold( $/oz) 1256 1252 1292 1224
Gold(Rs./10 gm) 30510 30536 30716 28149
Source: Thomson Reuters Eikon
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
05 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
readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor(s), the Investment Manager, the Trustee,
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.
Readers are requested to click here for ICRON disclaimer - http://www.icraonline.com/legal/standard-disclaimer.html
Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
• Nifty July 2018 Futures were at 10771.35, a premium of 1.45 points,
above the spot closing of 10,769.90. The turnover on NSE’s Futures and
Options segment went up to Rs. 8,72,089.67 crore on Jul 4 from Rs.
5,74,868.04 crore on Jul 3.
• The Put-Call ratio stood at 0.90 against previous session’s close of 0.86.
• The Nifty Put-Call ratio stood at 1.53 against the previous session’s
close of 1.50.
• Open interest on Nifty Futures stood at 21.83 million as against the
previous session’s close at 20.90 million.
• Bond yields fell following short covering by the market participants
and as central government increased minimum support prices (MSP) by
up to 52.47% YoY, which was largely in line with market expectations. In
the last budget, government pledged to raise MSP by at least at 1.5
times of the cost of production.
• Yield on the 10-year benchmark paper (7.17% GS 2028) fell 3 bps to
close at 7.85% as against its previous close of 7.88%. During the session,
bond yields traded in the range of 7.83% and 7.92%.
• Banks’ borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 3,897 crore (gross) on Jul 4, compared with Rs.
3,841 crore (gross) borrowed on Jul 3. Sale of securities under the
Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 45,291
crore on Jul 3.
• The rupee rose initially against the greenback following gains in the
domestic equity market. However, the trend reversed following
greenback purchases by banks. The rupee fell 0.23% to close at 68.74
per dollar from the previous close of 68.58 per dollar.
• The euro inched down against the greenback as persisting concerns of
a global trade war weighed on the market sentiment. Euro was last seen
trading at $1.1644, down 0.09% from the previous close of $1.1655.
• Gold prices moved up on persisting trade tensions.
• Brent crude prices gained following a second successive drop in U.S.
crude inventories driven by supply disruptions from Canadian oil sands
facility.
• According to a report released by the Commerce Department, U.S.
factory orders rose unexpectedly by 0.4% in May 2018 after declining
0.4% in Apr 2018. The unexpected rebound was due to sharp increase in
orders for non-durable goods by 1.1% in May as against 0.3% rise in Apr.
However, durable goods orders fell 0.4% in May as against 1% fall in Apr.
• According to IHS Markit, eurozone’s service Purchasing Managers’
Index (PMI) rose to 55.2 in Jun 2018 from 53.8 in May 2018. Eurozone’s
composite output index rose to 54.9 in Jun from 54.1 in May.
• According to IHS Markit, U.K. services PMI rose to 55.1 in Jun 2018
from 54.0 in May 2018. The increase came due to strong growth in new
work.
Markets for You
Thank you for
your time.