Markets For You of 12 July 2019 – Nippon India Mutual Fund

12Jul2019

MarketsforYou

https://www.reliancemutual.com

GlobalIndices

GlobalIndices 11‐Jul Prev_Day Abs.Change

%Change

Russell3000 1,315 1,312 2 0.19

Nasdaq 8,196 8,203 ‐6 ‐0.08

FTSE 7,510 7,531 ‐21 ‐0.28

Nikkei 21,644 21,533 110 0.51

HangSeng 28,432 28,205 227 0.81

IndianIndices 11‐Jul Prev_Day Abs.Change

%Change

S&PBSESensex 38,823 38,557 266 0.69

Nifty50 11,583 11,499 84 0.73

Nifty100 11,679 11,594 85 0.73

Nifty500 9,466 9,400 66 0.71

NiftyBank 30,717 30,522 194 0.64

S&PBSEPower 2,027 2,014 13 0.63

S&PBSESmallCap 13,755 13,699 56 0.41

S&PBSEHC 12,859 12,755 104 0.82

Date P/E Div.Yield P/E Div.Yield

11‐Jul 28.06 1.20 28.40 1.26

MonthAgo 28.43 1.20 29.59 1.22

YearAgo 23.14 1.21 27.20 1.19

Nifty50Top3Gainers

Company 11‐Jul Prev_Day

%Change

ZeeEnte. 355 333 6.63

HeroMoto 2508 2400 4.49

IndusIndBank 1541 1487 3.63

Nifty50Top3Losers DomesticNews

Company 11‐Jul Prev_Day

%Change

TechMahindra 666 675 ‐1.36

BajajAuto 2712 2740 ‐1.05

ICICIBank 427 431 ‐1.01

AdvanceDeclineRatio

BSE NSE

Advances 1235 931

Declines 1201 841

Unchanged 160 119

InstitutionalFlows(Equity)

Description(Cr) YTD

FIIFlows* 73870

MFFlows** 8965

*11

Jul2019;**10

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)

12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

346

‐460

2.57%

(Feb‐19)

• Finance minister said the government is committed to follow the path

of fiscal consolidation without compromising on public expenditure,

according to media news. She was replying to the general discussion on

Budget 2019‐20 in the Lok Sabha and added that the government has set

the fiscal deficit target at 3.3% of GDP for 2019‐20.

• Media reports showed the government has identified 28 central PSUs

for disinvestment this year. It also includes the national air carrier. The

government is aiming to garner more than Rs. 1 lakh crore in 2019‐22

from the sale of its shares in public sector undertakings. The finance

minister in the budget estimated government’s disinvestment proceeds

to be Rs 1.05 lakh crore, which is an increase of 31% over the last year’s

figure. The government has identified 28 central PSUs for disinvestment

this year. It also includes the national air carrier.

• As per the latest finance ministry data, deposits in bank accounts

opened under the Jan Dhan scheme, which was launched around five

years ago by the government, have crossed the Rs. 1 lakh crore mark. As

per the latest finance ministry data, the total balance in over 36.06 crore

Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts was at Rs. 1,00,495.94

crore as on Jul 3, 2019. The deposits in the account of the beneficiaries,

which has been steadily rising, was Rs. 99,649.84 crore on Jun 6 and Rs.

99,232.71 crore in the week before.

• The government has booked almost 1,800 cases for issuing fake GST

invoices since 2017‐18, media reports showed. The highest number of

cases have been booked in 2018‐19 when the authorities booked 1,220

cases involving an amount of nearly Rs. 9,500 crore. The government

informed the Rajya Sabha that 1,796 cases for issuing fake GST invoices

has been booked in three years to claim the Input Tax Credit (ITC)

available under the GST.

MarketsforYou

• Asian equity markets gained as the U.S. Federal Reserve chairman gave

dovish comments, strengthening hopes of U.S. rate cut later in the

month. The chairman hinted in his testimony that the central bank could

cut rates soon. The Fed’s next meeting is scheduled on Jul 30‐31, 2019.

Today (as of July 12), Asian markets opened on a subdued note despite

rise on the Wall Street overnight. While Nikkei was trading almost steady,

Hang Seng was higher 0.29% (as at 8 a.m. IST).

• As per the last close, European markets fell on worries about global

economic slowdown after the International Monetary Fund (IMF) and

Bank of England spoke about risks from trade tensions, Brexit impact and

Italy's big deficit budget.

• As per the last close, U.S markets rose partially due to surge in share

prices of a major U.S. healthcare giant, along with other health insurers

on news that the U.S. President is abandoning a plan to eliminate rebates

from government drug plans. Moreover, surprise uptick in U.S. consumer

prices in June, added to the upside.

• Indian equity markets gained on strong global cues as the U.S. Federal

Reservehintedthatitwouldcutinterestratessoon.TheU.S.Fedcould

reduce key U.S. borrowing costs by 25 basis points at its meeting on Jul

30‐31, though the decision thereafter will depend on economic data.

Also, the rupee touched an 11‐month high against the U.S. dollar on U.S.

rate‐cut hopes.

• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 0.69% and

0.73%, respectively, to close at 38,823.11 and 11,582.90, respectively.

• The overall market breadth on BSE was weak with 1235 scrips

advancing and 1201 scrips declining. A total of 160 scrips remained

unchanged.

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

1.84%, followed by S&P BSE Metal, up 1.81%, and S&P BSE Telecom, up

1.46%. S&P BSE Realty and S&P BSE Consumer Discretionary Goods &

Services gained 1.36% and 1.15%, respectively. S&P BSE Capital Goods

was the major loser, down 0.23%, followed by S&P BSE Consumer

Durables and S&P BSE IT, down 0.05% and 0.11%, respectively.

FIIDerivativeTradeStatistics 11‐Jul

(RsCr) Buy Sell OpenInt.

IndexFutures 2861.01 2720.10 20479.87

IndexOptions 252742.15 252344.11 44967.09

StockFutures 10396.27 10615.90 85054.31

StockOptions 5814.61 5889.18 3585.35

Total 271814.04 271569.29 154086.62

11‐Jul Prev_Day Change

PutCallRatio(OI) 1.03 0.85 0.18

IndianDebtMarket

PutCallRatio(Vol) 0.97 0.73 0.24

11‐Jul Wk.Ago Mth.Ago YearAgo

CallRate 5.58% 5.67% 5.70% 6.17%

T‐Repo 5.66% 5.46% 5.67% NA

Repo 5.75% 5.75% 5.75% 6.25%

ReverseRepo 5.50% 5.50% 5.50% 6.00%

91DayT‐Bill 5.80% 5.95% 5.95% 6.52%

364DayT‐Bill 5.95% 6.09% 6.03% 7.20%

10YearGilt 6.49% 6.75% 7.04% 7.87%

G‐SecVol.(Rs.Cr) 92654 87530 51147 20274

CurrencyMarketUpdate

FBILMIBOR* 5.85% 5.90% 5.80% 6.26%

3MonthCPRate 6.80% 6.90% 6.65% 7.55%

5YearCorpBond 7.79% 7.94% 8.07% 8.84%

1MonthCDRate 5.80% 5.81% 5.68% 6.40%

3MonthCDRate 6.90% 6.35% 6.31% 6.97%

1YearCDRate 6.89% 7.69% 7.25% 7.98%

CommodityMarketUpdate

Currency 11‐Jul Prev_Day Change

USD/INR 68.37 68.53 ‐0.16

GBP/INR 85.65 85.30 0.35

EURO/INR 77.04 76.79 0.25

InternationalNews

JPY/INR 0.63 0.63 0.00

Commodity 11‐Jul WkAgo Mth.Ago YearAgo

NYMEXCrude($/bl) 59.90 57.03 53.25 70.42

BrentCrude($/bl) 68.43 64.21 65.00 74.96

Gold($/oz) 1404 1415 1327 1242

Gold(Rs./10gm) 34575 34134 32331 30403

Source:ThomsonReutersEikon

*Asonprevioustradingday

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

12July2019

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DerivativeStatistics‐NiftyOptions



Disclaimer:

DerivativesMarket

DebtWatch

CurrencyMarket

CommodityPrices

• Bond yield declined following strength in the local currency after the

U.S. Federal Reserve’s Chairman signalled a policy rate cut. In addition,

investors’ expectation that the retail inflation would come in below the

RBI’s target also buoyed market sentiments.

• Yield on the 10‐year benchmark paper (7.26% GS 2029) went down 5

bps to 6.49% compared with the previous close of 6.54% after trading in

a range of 6.48% to 6.56%.

• Banks borrowings under the repo window of the Liquidity Adjustment

Facility (LAF) stood at Rs. 3,632 crore (gross) on Jul 11, 2019, compared

with Rs. 4,132 crore (gross) as on Jul 10, 2019. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 5,990

crore on Jul 10, 2019.

• Banks borrowed Rs. 50 crore under the central bank’s Marginal

Standing Facility on Jul 10, 2019 compared with borrowings of Rs. 2,550

crore on Jul 9, 2019.

• The minutes of U.S. Federal Reserve’s Jun 2019 meeting said many

participants believe the case for lowering interest rates has

strengthened. This mirrors Federal Reserve chairman’s remarks in

Congressional testimony earlier in the day.

• A report released by the Commerce Department showed wholesale

inventories in the U.S. increased in line with estimates in May 2019. The

Commerce Department said wholesale inventories rose 0.4% in May

after climbing 0.8% in Apr 2019, matching expectations.

MarketsforYou

• Nifty Jul 2019 Futures stood at 11,582.05, a discount of 0.85 points,

below the spot closing of 11,582.90. The turnover on NSE’s Futures and

Options segment increased to Rs. 19,43,857.18 crore on Jul 11, 2019,

compared with Rs. 12,87,147.73 crore on Jul 10, 2019.

• The Put‐Call ratio stood at 0.92 compared with the previous session’s

close of 0.84.

• The Nifty Put‐Call ratio stood at 1.03 compared with the previous

session’s close of 0.85.

• Open interest on Nifty Futures stood at 20.43 million, compared with

the previous session’s close of 21.19.

• The Indian rupee appreciated against the greenback after the U.S.

Federal Reserve Chairman’s dovish remark, which raised optimism on

deeper interest rate cuts in the U.S. The rupee closed at 68.44 a dolla

compared with the previous close 68.57.

• The euro edged higher amid dollar weakness after the U.S. Federal

Reserve Chairman hinted of interest rate cut, citing broader global

outlook and U.S.‐China trade tension. The euro was last seen trading at

1.1267, up 0.16% compared with the previous close of 1.1249.

• Gold prices edged higher against the greenback after the latte

weakened when the U.S. Fed Chairman indicated a policy rate cut.

• Brent crude prices surged after oil rigs at the Gulf of Mexico had to be

evacuated ahead of a likely storm, which is forecast to churn into a

hurricane.

Thank you for

your time.

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