Mutual Fund News of 23rd July 2018 – Reliance Mutual Fund

23 Jul 2018

Markets for You

Global Indices

Global Indices 20-Jul Prev_Day Abs. Change

% Change

Dow Jones 25,058 25,065 -6 -0.03

Nasdaq 7,820 7,825 -5 -0.07

FTSE 7,679 7,684 -5 -0.07

Nikkei 22,698 22,765 -67 -0.29

Hang Seng 28,224 28,011 214 0.76

Indian Indices 20-Jul Prev_Day Abs. Change

% Change

S&P BSE Sensex 36,496 36,351 145 0.40

Nifty 50 11,010 10,957 53 0.48

Nifty 100 11,216 11,161 55 0.50

Nifty Bank 26,873 26,790 84 0.31

SGX Nifty 11,026 10,980 46 0.42

S&P BSE Power 1,892 1,885 6 0.34

S&P BSE Small Cap 15,721 15,657 64 0.41

S&P BSE HC 13,661 13,518 143 1.06

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

20-Jul 22.90 1.21 27.36 1.22

Month Ago 22.80 1.25 26.52 1.22

Year Ago 23.37 1.23 25.22 1.01

Nifty 50 Top 3 Gainers

Company 20-Jul Prev_Day

% Change

Bajaj Finance 2721 2520 7.98

Aurobindo Pharma 584 568 2.81

Sun Pharma 560 545 2.78

Nifty 50 Top 3 Losers Domestic News

Company 20-Jul Prev_Day

% Change

Bajaj Auto 2840 3115 -8.84

HPCL 275 284 -3.16

Indian Oil 161 166 -2.86

Advance Decline Ratio

BSE NSE

Advances 1135 811

Declines 1437 975

Unchanged 124 86

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -6903

MF Flows** 72228

*20

Jul 2018; **16

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)

23 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

-29

-242

4.28%

(Mar-18)

• Indian Equity markets closed modestly higher due to optimism that the

ruling government may win the no-confidence vote scheduled post

market hours. Financial stocks surged after Indian non-banking financial

firm and its unit surged on strong quarterly results. The Indian rupee

recovered from its all time low during the day, thereby adding to the

gains.

• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.40% and

0.48% to close at 36,496.37 and 11,010.20, respectively. S&P BSE Mid-Cap

and S&P BSE Small Cap fell 0.73% and 0.41%.

• On the BSE sectoral front, S&P BSE Information Technology stood as the

major gainer, up 1.51% followed by S&P BSE Teck that grew 1.38%. S&P

BSE Healthcare and S&P BSE Telecom grew 1.06% and 1.04%. S&P BSE

Capital Goods and S&P BSE Energy grew 0.94% and 0.87%. S&P BSE Oil &

Gas stood as the major loser, down 0.65% followed by S&P BSE Metal that

fell 0.55%. S&P BSE Auto and S&P BSE Basic Materials fell 0.40% and

0.19%, respectively. Auto stocks witnessed decline as shares of an auto

major fell on lower than expected standalone net profit for the quarter

ended Jun 2018.

• A National Appellate Tribunal could be set up by the GST council in

Delhi. It will have three regional benches and members from the judiciary

and tax departments. Under the GST regime, states have their own

appellate authorities called Authority for Advance Ruling (AAR). The

national tribunal will hear appeals against the state appellate authorities.

The proposal is set to be placed before the GST council on Jul 21. The

three regional benches will at Mumbai, Chennai and Kolkata. This step is

being considered to mitigate problems arising from contradictory orders

of AAR in different states.

• The government has approved amendments to the Insolvency and

Bankruptcy Code (IBC) and now lenders will have to adhere to an

additional step in finalising resolution plans. The plans would now have to

be cleared by the Competition Commission of India (CCI) before the

Committee of Creditors (COC) finalises it. This will help avoid litigation

that could hinder resolution at an advanced stage.

• In their meeting with government officials, real estate developers

discussed issues such as reducing GST, tax concessions and ways to boost

investment. Other than this, they looked into ways to increase the

effectiveness of RERA and complete stalled projects. Another meeting will

be held to take the discussion further.

• Wipro’s consolidated net profit increased 2% to Rs. 2,120.8 crore for the

quarter ended Jun 2018 compared with Rs. 2,076.7 crore in the year-ago

period. Revenue from operations increased 2.5% to Rs. 13,977.7 crore

against Rs. 13,626.1 crore in the corresponding period last year.

• Kansai Nerolac Paints’ net profit went down a tad to Rs. 139.84 crore for

the Jun quarter. The company had registered net profit of Rs. 140.81 crore

in the year-ago period. Gross sales increased 4.89% to Rs. 1,513.26 crore

against Rs. 1,442.75 crore in the corresponding period last year.

• JSW Cement will investment $150 million for setting up a 1 million tonne

per annum (mtpa) clinker unit in Fujairah, UAE. The company will also

make a captive power plant to cater to the clinker unit. This is part of JSW

Cement’s aim to achieve 20 MTPA capacity by 2020.

Markets for You

• Asian markets mostly moved up after China's central bank has lowered

its currency further to its lowest level in a year. Also, Japanese consumer

price inflation rose 0.7% year-on-year in June. However, escalating trade

war concerns across the globe limited the upside. Today (as of Jul 23),

Asian markets opened mixed. Strong yen weighed on Nikkei, while gains

in heavily weighted financials supported Hang Seng. Nikkei was trading

lower 1.16% and Hang Seng was trading up 0.29% (as at 8.a.m. IST).

• As per the last close, European markets closed lower after the U.S.

President indicated imposing tariffs on all Chinese imports to the U.S. The

President also indicated gradually raising interest rates.

• As per the last close, U.S markets closed lower after U.S. President

indicated to impose tariffs on all Chinese imports. However, most of the

losses were nullified following strong quarterly results from major U.S.

companies.

FII Derivative Trade Statistics 20-Jul

(Rs Cr) Buy

Sell Open Int.

Index Futures 4366.31 3286.64 25967.91

Index Options 129161.99 127520.10 74382.52

Stock Futures 13467.18 13356.84 79721.58

Stock Options 10138.91 10041.99 8320.03

Total 157134.39 154205.57 188392.04

20-Jul Prev_Day

Change

Put Call Ratio (OI) 1.71 1.64 0.07

Indian Debt Market

Put Call Ratio(Vol) 0.95 1.07 -0.12

20-Jul Wk. Ago Mth. Ago

Year Ago

Call Rate 6.20% 6.16% 6.24% 6.05%

CBLO 5.78% 6.23% 6.28% 6.16%

Repo 6.25% 6.25% 6.25% 6.25%

Reverse Repo 6.00% 6.00% 6.00% 6.00%

91 Day T-Bill 6.58% 6.53% 6.44% 6.10%

364 Day T-Bill 7.21% 7.19% 7.07% 6.21%

10 Year Gilt 7.79% 7.79% 7.83% 6.45%

G-Sec Vol. (Rs.Cr) 21859 37952 27777 32732

Currency Market Update

FBIL MIBOR 6.21% 6.29% 6.30% 6.25%

3 Month CP Rate 7.55% 7.55% 7.55% 6.56%

5 Year Corp Bond 8.72% 8.76% 8.71% 7.42%

1 Month CD Rate 6.62% 6.38% 6.86% 6.22%

3 Month CD Rate 6.97% 6.98% 6.89% 6.27%

1 Year CD Rate 7.98% 7.99% 8.10% 6.52%

Commodity Market Update

Currency 20-Jul Prev_Day

Change

USD/INR 68.85 68.83 0.01

GBP/INR 89.67 89.93 -0.26

EURO/INR 80.31 80.12 0.20

International News

JPY/INR 0.61 0.61 0.00

Commodity 20-Jul Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 70.26 70.98 65.92 46.68

Brent Crude($/bl) 71.83 73.80 73.59 48.13

Gold( $/oz) 1231 1241 1268 1244

Gold(Rs./10 gm) 29849 30080 30589 28165

Source: Thomson Reuters Eikon

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

23 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 11,024.85, a premium of 14.65 points,

above the spot closing of 11,010.20. The turnover on NSE’s Futures and

Options segment went down to Rs. 5,24,534.82 crore on Jul 20 from Rs.

18,20,233.69 crore on Jul 19.

• The Put-Call ratio stood at 0.79 against previous session’s close of 0.80.

• The Nifty Put-Call ratio stood at 1.71 against the previous session’s

close of 1.64.

• Open interest on Nifty Futures stood at 27.99 million as against the

previous session’s close at 26.76 million.

• Bond yields remained unchanged as investors preferred to stay on

sidelines ahead of Monetary Policy Committee scheduled on Aug 1. No

major trigger in the market also led to subdued bond market activity.

• Yield on the 10-year benchmark paper (7.17% GS 2028) remained

unchanged to close at 7.79% as against its previous close. During the

session, bond yields traded in the range of 7.77% and 7.80%.

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

Facility (LAF) stood at Rs. 16,381 crore (gross) on Jul 20, compared with

Rs. 3,796 crore (gross) borrowed on Jul 19. Sale of securities under the

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 10,480

crore on Jul 19.

• Banks borrowed Rs. 73 crore under the central bank’s Marginal

Standing Facility on Jul 19 compared with borrowing of Rs. 70 crore on

Jul 18.

• The rupee fell initially against the greenback following persistent

weakness in the Chinese yuan due to escalation in trade tensions

between U.S. and China. However, the trend reversed due to

intervention by the Reserve Bank of India.

• The euro rose against the greenback after the U.S. President expressed

concerns regarding the strength of the greenback and the recent

increase in interest rates by the U.S. Federal Reserve.

• Gold prices gained on weaker dollar against the euro. Meanwhile, the

U.S. President has raised his concerns over the rate hike decision of the

U.S. Federal Reserve (Fed).

• Brent crude prices inched down on concerns over the ongoing trade

tensions between U.S. and China.

• Eurostat data showed deficit of euro area government continues to

decrease in the first quarter. The decline came as revenue went up and

expenditure fell. General government deficit to GDP decreased to 0.1%

from 0.6% in the fourth quarter. Government revenue increased to

46.3% of GDP from 46.1%. Expenditure decreased to 46.4% against

46.8% in the previous quarter.

• European Central Bank data showed euro area current account surplus

decreased in May 2018 to a seasonally adjusted EUR 22.44 billion

against EUR 29.55 billion in Apr 2018. This level is lowest since Mar

2015. Goods and services trade surplus declined to EUR 21 billion and

EUR 8 billion, respectively.

Markets for You

Thank you for

your time.