08 Jul 2019
Markets for You
Global Indices
Global Indices 05-Jul Prev_Day Abs. Change
% Change
#
Russell 3000 1,307 1,310 -2 -0.17
Nasdaq 8,162 8,170 -8 -0.10
FTSE 7,553 7,604 -50 -0.66
Nikkei 21,746 21,702 44 0.20
Hang Seng 28,775 28,796 -21 -0.07
Indian Indices 05-Jul Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 39,513 39,908 -395 -0.99
Nifty 50 11,811 11,947 -136 -1.14
Nifty 100 11,904 12,045 -141 -1.17
Nifty 500 9,658 9,777 -119 -1.22
Nifty Bank 31,476 31,472 4 0.01
S&P BSE Power 2,075 2,149 -74 -3.44
S&P BSE Small Cap 14,142 14,337 -195 -1.36
S&P BSE HC 12,719 12,888 -169 -1.31
Date P/E Div. Yield P/E Div. Yield
5-Jul 28.62 1.18 29.04 1.24
Month Ago 28.76 1.19 29.73 1.21
Year Ago 22.62 1.24 26.69 1.21
Nifty 50 Top 3 Gainers
Company 05-Jul Prev_Day
% Change
#
Indiabulls HFC 727 704 3.34
IndusInd Bank 1533 1493 2.64
Kotak Bank 1517 1498 1.30
Nifty 50 Top 3 Losers Domestic News
Company 05-Jul Prev_Day
% Change
#
Yes Bank 88 96 -8.42
NTPC 137 143 -4.84
United Phos 666 698 -4.66
Advance Decline Ratio
BSE NSE
Advances 770 468
Declines 1711 1317
Unchanged 127 100
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* 74937
MF Flows** 8705
*5
th
Jul 2019; **4
th
Jul 2019
Economic Indicator
YoY(%) Current Year Ago
CPI
3.05%
(May-19)
4.87%
(May-18)
IIP
3.40%
(Apr-19)
4.50%
(Apr-18)
GDP
5.80%
(Mar-19)
8.10%
(Mar-18)
08 July 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
1.60%
(Jan-19)
6.60%
(Dec-18)
Quarter Ago
Inflow/Outflow
191
556
2.57%
(Feb-19)
• Indian equity markets lost in the aftermath of the announcement of the
Union Budget 2019-20. The finance minister proposed in the budget to
increase the minimum public shareholding in listed companies from 25%
to 35%. This led to liquidity concerns among investors and pulled the
market down. The fiscal deficit target was cut from 3.4% to 3.3% and the
government plans to make some of its borrowing offshore.
• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.99% and
1.14% to close at 39,513.39 and 11,811.15, respectively. S&P BSE Mid-
Cap and S&P BSE Small Cap lost 1.39% and 1.36%, respectively.
• The overall market breadth on BSE was weak with 770 scrips advancing
and 1711 scrips declining. A total of 127 scrips remained unchanged.
• On the BSE sectoral front, S&P BSE FMCG stood as the major gainer and
grew 0.18%, followed by S&P BSE Bankex and S&P BSE Telecom that grew
0.14% and 0.03%, respectively. These were the only three sectors that
gained. S&P BSE Metal was the major loser that fell 3.85% followed by
S&P BSE Realty and S&P BSE Power that fell 3.60% and 3.44%,
respectively.
• The government while presenting the Union Budget adhered to the
fiscal consolidation roadmap as it lowered its fiscal deficit target to 3.3%
of GDP for FY20 from 3.4% of GDP for FY19. The government expects the
gross tax revenue to grow 9.5% in FY20 on the back of an increase in
dividend receipts. It also hopes that the central government debt as a %
of GDP will come down to 48.0% of GDP in FY20 from 48.4% in FY19 on
the back of a benign inflation regime which will help reduce the cost of
borrowing. The central government debt as a % of GDP is expected to
come down further to 46.2% in FY21 and 44.4% in FY22.
• The government in the Union Budget proposed further recapitalisation
of state run banks to the tune of Rs. 70,000 crore. It also proposed to give
a one time six-month partial credit guarantee to public sector banks (PSB)
for the first loss of up to 10% in order to tide over the liquidity crisis in the
non-banking financial segment. It also put forward the suggestion of
creating a Debenture Redemption Reserve (DRR) which will help non
banking financial companies to raise fund through public issues.
• The government in the Union Budget allocated Rs. 65,837 crore for the
railway sector. The government also allocated the highest ever outlay for
capital expenditure to the tune of Rs. 1.60 lakh crore. It further added
that railway infrastructure would need an investment of Rs. 50 crore
between 2018 and 2030. The government also proposed to use the
Public-Private Partnership for the development of Indian railways.
• The government in the Union Budget set the disinvestment target at Rs.
1.05 lakh crore for FY20. Acknowledging that exchange traded funds as a
good instrument for India’s divestment program and to boost long term
investment in central public sector enterprises, the finance minister
added that investment option in exchange traded funds on the lines of
Equity Linked Savings Scheme will be offered.
Markets for You
• Asian equity markets were mostly higher as investors looked forward to
the release of the U.S. jobs report later in the day. The report will give
investors a peek into U.S. Federal Reserve's stance on rate cuts. Today (as
of Jul 8), Asian markets opened lower as strong U.S. jobs report reduced
expectations that the U.S. Federal Reserve would do a rate cut. Both
Nikkei and Hang Seng were trading down 0.83% and 1.38%, respectively
(as at 8.a.m. IST).
• As per the last close, European markets closed lower following stronger
than expected jobs growth for Jun 2019 that lowered chances of rate cut
by the U.S. Federal Reserve in the upcoming policy meeting. Concerns
about global slowdown, geopolitical tensions and growing uncertainty
about the U.S. and China agreeing on a trade deal anytime soon also
weighed on the investors.
• As per the last close, U.S markets closed lower as stronger than
expected U.S. jobs data for Jun 2019 dampened hopes for a rate cut by
the U.S. Federal Reserve.
FII Derivative Trade Statistics 05-Jul
(Rs Cr) Buy
Sell Open Int.
Index Futures 2202.98 2207.15 17051.26
Index Options 246852.09 246087.65 35390.07
Stock Futures 9202.03 8889.12 84723.01
Stock Options 3651.89 3667.23 2773.30
Total 261908.99 260851.15 139937.64
05-Jul Prev_Day
Change
Put Call Ratio (OI) 1.09 1.43 -0.34
Indian Debt Market
Put Call Ratio(Vol) 0.70 0.98 -0.28
05-Jul Wk. Ago Mth. Ago
Year Ago
Call Rate 5.56% 5.94% 5.87% 6.07%
T-Repo 5.58% 5.85% 5.79% NA
Repo 5.75% 5.75% 6.00% 6.25%
Reverse Repo 5.50% 5.50% 5.75% 6.00%
91 Day T-Bill 5.85% 6.02% 6.05% 6.30%
364 Day T-Bill 6.05% 6.08% 6.16% 7.16%
10 Year Gilt 6.69% 6.88% 7.02% 7.90%
G-Sec Vol. (Rs.Cr) 126281 45259 44224 15639
Currency Market Update
FBIL MIBOR 5.69% 5.90% 5.95% 6.25%
3 Month CP Rate 6.90% 7.00% 6.75% 7.20%
5 Year Corp Bond 7.89% 8.10% 8.01% 8.89%
1 Month CD Rate 5.90% 6.07% 6.15% 6.30%
3 Month CD Rate 6.28% 6.41% 6.43% 6.94%
1 Year CD Rate 7.42% 7.16% 7.16% 8.15%
Commodity Market Update
Currency 05-Jul Prev_Day
Change
USD/INR 68.75 68.85 -0.10
GBP/INR 86.50 86.57 -0.07
EURO/INR 77.52 77.69 -0.17
International News
JPY/INR 0.64 0.64 0.00
Commodity 05-Jul Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) Closed 58.17 53.45 73.00
Brent Crude($/bl) 64.82 68.96 65.00 76.68
Gold( $/oz) 1400 1409 1325 1257
Gold(Rs./10 gm) 34571 34006 32407 30467
Source: Thomson Reuters Eikon
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08 July 2019
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Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
• Nifty Jul 2019 Futures stood at 11,820.95, a premium of 9.80 points,
above the spot closing of 11,811.15. The turnover on NSE’s Futures and
Options segment decreased to Rs. 10,46,886.87 crore on Jul 5, 2019,
compared with Rs. 19,71,511.37 crore on Jul 4, 2019.
• The Put-Call ratio stood at 0.79 compared with the previous session’s
close of 0.94.
• The Nifty Put-Call ratio stood at 1.09 compared with the previous
session’s close of 1.43.
• Open interest on Nifty Futures stood at 19.63 million, compared with
the previous session’s close of 19.38.
• Bond yield dipped as worries over expanding fiscal deficit eased.
Besides, the government’s proposal to partially raise the gross
borrowings through bond sales in the overseas market lifted the market
sentiment.
• Yield on the 10-year benchmark paper (7.26% GS 2029) declined 6 bps
to 6.69% compared with the previous close of 6.75% after trading in a
range of 6.56% to 6.77%.
• Banks borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 5,417 crore (gross) on Jul 5, 2019, compared
with Rs. 3,497 crore (gross) as on Jul 4, 2019. Sale of securities under
Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 26,287
crore on Jul 4, 2019.
• Banks borrowed Rs. 1,447 crore under the central bank’s Marginal
Standing Facility on Jul 4, 2019 compared with borrowings of Rs. 340
crore on Jul 3, 2019.
• The Indian rupee rose against the dollar on hopes of foreign fund
inflows as the government plans to borrow from the overseas market.
However, gains were capped by greenback purchase by state-run banks.
The rupee closed at 68.42 a dollar, up 0.11% compared with the previous
close 68.50.
• The euro declined tracking fall in the German 10-year bund yield on
expectations of stimulus measures from the European Central Bank.
• Gold prices remained flat as market participants were waiting for the
release of the U.S. jobs report to get an idea on the U.S. Federal
Reserve’s stance on policy rate cut.
• Brent crude prices remained below the $65 per barrel mark following
weak German factory orders numbers.
• Office for National Statistics reported U.K. labor productivity declined
for the third straight quarter. Labor productivity declined 0.2%
sequentially in the first quarter, following a 0.1% drop a quarter ago. This
was the third consecutive decrease. Productivity in services gained 0.2%,
while that in manufacturing fell 0.9% in the first quarter.
• Figures from the Lloyds Bank subsidiary Halifax and IHS Markit showed
U.K. house prices declined for the first time in three months in Jun 2019.
House prices decreased 0.3% MoM in Jun 2019, reversing a 0.4% rise in
May 2019. In the second quarter, house prices growth eased to 5.7%
annually, in line with expectations, from 5.2% seen in three months to
May.
Markets for You
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