Mutual Fund News of 18th July 2018 – Reliance Mutual Fund

18 Jul 2018

Markets for You

Global Indices

Global Indices 17-Jul Prev_Day Abs. Change

% Change

Dow Jones 25,120 25,064 56 0.22

Nasdaq 7,855 7,806 49 0.63

FTSE 7,626 7,600 26 0.34

Nikkei 22,697 Closed NA NA

Hang Seng 28,182 28,540 -358 -1.25

Indian Indices 17-Jul Prev_Day Abs. Change

% Change

S&P BSE Sensex 36,520 36,324 196 0.54

Nifty 50 11,008 10,937 71 0.65

Nifty 100 11,231 11,151 80 0.71

Nifty Bank 27,008 26,680 328 1.23

SGX Nifty 11,027 10,939 88 0.80

S&P BSE Power 1,916 1,897 19 1.01

S&P BSE Small Cap 15,966 15,790 176 1.12

S&P BSE HC 13,770 13,599 172 1.26

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

17-Jul 23.08 1.20 27.35 1.19

Month Ago 23.23 1.15 27.44 1.22

Year Ago 23.51 1.22 25.17 1.08

Nifty 50 Top 3 Gainers

Company 17-Jul Prev_Day

% Change

HPCL 281 264 6.41

Indian Oil 164 158 4.41

Hindalco 220 213 3.03

Nifty 50 Top 3 Losers Domestic News

Company 17-Jul Prev_Day

% Change

HUL 1682 1751 -3.97

Tech Mahindra 647 657 -1.60

Bharti Airtel 343 347 -1.40

Advance Decline Ratio

BSE NSE

Advances 1429 1056

Declines 1146 761

Unchanged 145 82

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -6074

MF Flows** 69998

*17

Jul 2018; **9

Jul 2018

Economic Indicator

YoY(%) Current Year Ago

CPI

5.00%

(Jun-18)

1.46%

(Jun-17)

IIP

3.20%

(May-18)

2.90%

(May-17)

GDP

7.70%

(Mar-18)

6.10%

(Mar-17)

18 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

6.90%

(Feb-18)

7.00%

(Dec-17)

Quarter Ago

Inflow/Outflow

-540

4.28%

(Mar-18)

• Indian Equity markets closed in the green due to gains in banking

stocks following reports that six public sector banks might get a capital

infusion of about Rs. 80 billion from the government. Further, gains in oil

& gas stocks due to fall in oil prices boosted the indices. Additionally, rise

in rupee added to the gains. However, gains were restricted on subdued

global markets as investors awaited U.S. Federal Reserve’s Chairman’s

testimony for clues on the outlook for U.S. interest rates.

• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.54% and

0.65% to close at 36,519.96 and 11,008.05, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap grew 2.14% and 1.12%.

• The overall market breadth on BSE was strong with 1,429 scrips

advancing and 1,146 scrips declining. A total of 145 scrips remained

unchanged.

• On the BSE sectoral front, S&P BSE Oil & Gas stood as the major gainer,

up 2.19% followed by S&P BSE Metal that grew 1.91%. S&P BSE Energy

and S&P BSE Basic Materials grew 1.84% and 1.52%, respectively. S&P

BSE FMCG stood as the major loser, down 0.80% followed by S&P BSE

Information Technology that fell 0.07%.

• The government has hiked the official maximum load carrying capacity

of heavy vehicles by 20-25%. It has also scrapped the renewal of fitness

certificates for freight carriers, which was compulsory annually. The

changed rules apply to new vehicles.

• The Central Board of Indirect Taxes and Customs (CBIC) in its effort to

clear pending GST refunds of exporters will organise a fortnight drive

from July 16 to 30, the third of its kind. In the first two fortnights, CBIC

had cleared Rs. 5,401 crore and Rs. 7,635 crore refunds under Integrated

GST (IGST) paid and input tax credit (ITC) claims, respectively.

• The Directorate General of Trade Restrictions (DGTR) has decided to

impose safeguard duty on solar panels and modules imported from

China and Malaysia. The duty would be imposed for two years – 25% for

the first year, 20% for the first half of the second year and 15% for the

second half. This is being done to protect the interests of domestic

manufacturers of solar panels.

• The Central Board of Indirect Taxes and Custom (CBIC) has notified that

import duty has been doubled on more than 50 textile products, such as

carpets and suits. The duty on these products now stands at 20%. This is

being done to promote domestic manufacturing.

• According to media reports, the finance ministry has approved capital

infusion of Rs. 11,336 crore in five public sector banks including PNB,

Corporation Bank and Andhra Bank. This was done to help these banks

meet regulatory capital requirements.

• HDFC AMC will open its initial public offer (IPO) on Jul 25, 2018. The

AMC plans to raise Rs. 945.23 crore through the IPO. The offer will

remain open till Jul 27. The HDFC group has so far filed three IPOs and

this one will be the fourth.

• Aurobindo Pharma has entered into a definitive agreement with

Apotex, a Canadian pharmaceutical company. The Hyderabad-based

pharma company will take over the latter’s commercial operations in five

European countries in an all-cash deal of 74 million euros. The deal will

be finalised in three to six months.

• Asian markets mostly traded lower on worries over the U.S.-China

trade war and as investors remained cautious ahead of the Congressional

testimony of Federal Reserve (Fed) Chairman. Lower cues from overnight

U.S. markets and fall in crude oil prices also weighed on the sentiments.

Today (as of July 18), Asian markets opened higher following gains in

Wall Street in the last session and upbeat comments from Fed Chairman

during the congressional testimony. Nikkei and Hangseng grew 1.02%

and 0.46%, respectively (as at 8.a.m. IST).

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

gains in basic resources stocks. However, decline in telecom stocks

capped the gains. Meanwhile, investors remained focused on testimony

by Fed Chair before Congress.

• As per the last close, U.S markets closed higher after Fed Chairman

came in with few surprises in the semiannual monetary policy testimony.

The Chairman stated that the U.S. economy has grown at a solid pace so

far in 2018 and expects job market to remain strong. Gains in technology

stocks boosted the indices.

Markets for You

FII Derivative Trade Statistics 17-Jul

(Rs Cr) Buy

Sell Open Int.

Index Futures 2530.04 1934.93 24213.64

Index Options 50892.25 49192.22 65196.18

Stock Futures 12709.00 13173.88 80011.29

Stock Options 9880.55 9950.89 7049.06

Total 76011.84 74251.92 176470.17

17-Jul Prev_Day

Change

Put Call Ratio (OI) 1.68 1.62 0.06

Indian Debt Market

Put Call Ratio(Vol) 1.04 1.13 -0.09

17-Jul Wk. Ago Mth. Ago

Year Ago

Call Rate 6.12% 6.15% 6.10% 6.07%

CBLO 6.23% 6.24% 6.09% 6.17%

Repo 6.25% 6.25% 6.25% 6.25%

Reverse Repo 6.00% 6.00% 6.00% 6.00%

91 Day T-Bill 6.53% 6.40% 6.50% 6.18%

364 Day T-Bill 7.18% 7.11% 7.05% 6.28%

10 Year Gilt 7.75% 7.90% 7.89% 6.46%

G-Sec Vol. (Rs.Cr) 53995 15049 28561 39571

Currency Market Update

FBIL MIBOR 6.30% 6.26% 6.24% 6.25%

3 Month CP Rate 7.65% 7.15% 7.65% 6.58%

5 Year Corp Bond 8.71% 8.86% 8.78% 7.44%

1 Month CD Rate 6.50% 6.32% 7.00% 6.26%

3 Month CD Rate 7.05% 6.77% 7.04% 6.30%

1 Year CD Rate 7.98% 8.10% 8.46% 6.59%

Commodity Market Update

Currency 17-Jul Prev_Day

Change

USD/INR 68.30 68.59 -0.29

GBP/INR 90.52 90.85 -0.33

EURO/INR 80.10 80.25 -0.15

International News

JPY/INR 0.61 0.61 0.00

Commodity 17-Jul Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 67.98 74.06 65.01 45.97

Brent Crude($/bl) 70.31 77.41 71.11 47.70

Gold( $/oz) 1227 1255 1279 1234

Gold(Rs./10 gm) 30044 30399 31068 28036

Source: Thomson Reuters Eikon

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

18 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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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 11023.75, a premium of 15.70 points,

above the spot closing of 11,008.05. The turnover on NSE’s Futures and

Options segment went down to Rs. 7,46,544.77 crore on Jul 17 from Rs.

5,79,798.56 crore on Jul 16.

• The Put-Call ratio stood at 0.93 against previous session’s close of

0.90.

• The Nifty Put-Call ratio stood at 1.68 against the previous session’s

close of 1.62.

• Open interest on Nifty Futures stood at 26.82 million as against the

previous session’s close at 26.13 million.

• Bond yields declined after two straight days of increase as global crude

oil prices fell and alleviated concerns of rise in domestic inflationary

pressures to some extent.

• Yield on the 10-year benchmark paper (7.17% GS 2028) fell 5 bps to

close at 7.75% as against its previous close of 7.80%. During the session,

bond yields traded in the range of 7.73% and 7.79%.

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

Facility (LAF) stood at Rs. 4,158 crore (gross) on Jul 17, compared with

Rs. 13,468 crore (gross) borrowed on Jul 16. Sale of securities under the

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 8,579

crore on Jul 16.

• Banks borrowed Rs. 925 crore under the central bank’s Marginal

Standing Facility on Jul 16 compared with borrowing of Rs. 115 crore on

Jul 13.

• The rupee rose against the greenback following decline in crude oil

prices. Gains were extended as market participants awaited the U.S.

Federal Chief’s testimony on the economy and monetary policy.

• The euro fell against the greenback as concerns over the trade dispute

rose, weighing on investor sentiments. Market participants were also

cautious ahead of U.S. Federal Chief’s testimony that will provide clues

on the interest rates changes and U.S. economy’s momentum.

• Gold prices traded lower as greenback gained against the euro.

• Brent Crude prices traded lower as worries eased over supply

disruptions. According to the U.S. Energy Information Administration,

production from seven major U.S. shale oil formations is expected to

rise by 143,000 barrels per day (bpd) to 7.47 million bpd in Aug 2018.

• Data from Office for National Statistics showed Britain's employment

level set a new record in Mar to May 2018. Employment grew to 32.399

million, a rise of 137,000 sequentially. Unemployment remained

unchanged and pay growth eased to its lowest level in six months.

• According to data from Istat, Italy's consumer price inflation rose less

than expected in Jun 2018 at 1.3% YoY. But it was faster than the 1.0%

rise in May. Inflation increased because of higher prices of unregulated

energy and food products. Core inflation excluding energy and

unprocessed food was stable at 0.8%.

• Data from Istat showed Italy's industrial orders recovered in May 2018

and sales grew at a faster pace. Industrial orders increased a seasonally

adjusted 3.6% MoM in May, against a 0.6% fall in Apr 2018.

Markets for You

Thank you for

your time.