Markets For You of 27th July 2018 – Nippon India Mutual Fund

27 Jul 2018

Markets for You

Global Indices

Global Indices 26-Jul Prev_Day Abs. Change

% Change

Dow Jones 25,527 25,414 113 0.44

Nasdaq 7,852 7,932 -80 -1.01

FTSE 7,663 7,658 5 0.06

Nikkei 22,587 22,614 -27 -0.12

Hang Seng 28,781 28,921 -140 -0.48

Indian Indices 26-Jul Prev_Day Abs. Change

% Change

S&P BSE Sensex 36,985 36,858 126 0.34

Nifty 50 11,167 11,132 35 0.32

Nifty 100 11,431 11,386 46 0.40

Nifty Bank 27,406 27,031 375 1.39

SGX Nifty 11,167 11,129 39 0.35

S&P BSE Power 1,945 1,917 28 1.44

S&P BSE Small Cap 16,306 16,255 51 0.31

S&P BSE HC 13,965 13,910 55 0.40

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

26-Jul 23.34 1.18 27.75 1.20

Month Ago 22.69 1.25 26.02 1.23

Year Ago 23.58 1.21 25.57 1.00

Nifty 50 Top 3 Gainers

Company 26-Jul Prev_Day

% Change

Ambuja Cem 224 208 7.22

SBI 288 272 5.83

ICICI Bank 286 275 4.01

Nifty 50 Top 3 Losers Domestic News

Company 26-Jul Prev_Day

% Change

Maruti 9396 9759 -3.72

Yes Bank 370 383 -3.43

Indian Oil 159 163 -2.64

Advance Decline Ratio

BSE NSE

Advances 1335 910

Declines 1238 879

Unchanged 138 106

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -6972

MF Flows** 74115

*26

Jul 2018; **20

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)

27 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

-199

-624

4.28%

(Mar-18)

• The findings of National Sample Survey Office (NSSO) could be released

by Jun 2019. NSSO has done the 2017-18 consumer expenditure survey.

The findings will form the base for calculating absolute poverty. NSSO is

under the Ministry of Statistics and Programme Implementation and has

done data collection.

• According to media reports, the government could set up an Asset

Management Company (AMC) for assisting banks to sell non-core assets,

which would include real estate. The government is doing this to boost

capital. The AMC’s role would be to acquire the asset, fix a valuation and

then sell it via a bidding process.

• The chief economic adviser said GST slab of 28% could soon cease to

exist, calling it "virtually a hollow shell". The outgoing official is of the

opinion that the slab could phase out in the next year. The slab has been

cut in the case of 191 goods over the last one year, including ACs, digital

cameras, video recorders, dish-washing machines and automobiles. Only

35 items now fall under 28% GST.

• The government by early next will put drafts of new forms for filing GST

returns in public domain. This is being done for stakeholder consultation.

Under the new return filing system, taxpayers who don't have purchase or

supplies in a quarter, can just send an SMS and their returns will be filed.

These are called ‘nil’ fillers. The GST council had cleared the new return

filing form last week and it will replace GSTR-1 and GSTR-3B returns.

• To understand the problems related to GST, state and union territory

tax officers will approach trade and industry bodies and MSMEs. Their

issues and grievances would be then place before the GST council on Aug

4 for mitigation. This is being done on the suggestion of the Central Board

of Indirect Taxes and Customs (CBIC). The compiled suggestions and

responses will be sent to CBIC, the apex body for indirect taxes, by Jul 27.

Markets for You

• Indian equity markets broke new ground yet again with benchmark

indices Sensex and Nifty closing at 36,984.64 and 11,167.30, respectively.

Persistent blue chip demand and optimism over corporate earnings were

the main reasons behind the exuberance. Other factors that supported

gains were capital infusion by DIIs and FIIs and the U.S. President relaxing

his stand over tariffs on trade with the European Union.

• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.34% and

0.32% to close at 36,984.64 and 11,167.30. S&P BSE Mid-Cap increased

0.76% and S&P BSE Small Cap grew 0.31%.

• The overall market breadth on BSE was strong with 1335 scrips

advancing and 1238 scrips declining. A total of 138 scrips remained

unchanged.

• On the BSE sectoral front, S&P BSE Utilities stood as the major gainer, up

1.66% followed by S&P BSE Power that grew 1.44%. S&P BSE Bankex and

S&P BSE Finance grew 1.43% and 1.29%. S&P BSE Telecom and S&P BSE

Realty grew 0.98% and 0.73%. S&P BSE Energy and S&P BSE Auto were the

top two losers, down 0.18% and 0.3%, respectively.

• Asian stocks were mostly down as investors turned cautious over the

trade war and its effect on the Chinese economy. U.S. President agreeing

to remove new trade tariffs on European Union after his meeting with the

European Commission president could not elevate investors’ mood. Today

(as of Jul 27), Asian markets opened mixed following a mixed session in

the U.S. Wall Street. Nikkei was trading up 0.34% and Hang Seng was

trading down 0.38% (as at 8.a.m. IST).

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

trade tension between the U.S. and Europe. Announcement by the

European Central Bank to keep interest rates unchanged and maintain

forward guidance on monetary stimulus also added to the gains.

• As per the last close, U.S markets closed mixed. News that U.S.

President and European Commission has agreed to work towards

eliminating trade barriers on industrial goods boosted the market.

However, disappointing quarterly results by a social media giant weighed

on the market.

FII Derivative Trade Statistics 26-Jul

(Rs Cr) Buy

Sell Open Int.

Index Futures 6260.86 6467.51 29419.70

Index Options 73143.32 73350.93 75228.23

Stock Futures 33107.54 33104.20 83616.83

Stock Options 7001.94 6610.56 8246.80

Total 119513.66 119533.20 196511.56

26-Jul Prev_Day

Change

Put Call Ratio (OI) 1.95 1.89 0.06

Indian Debt Market

Put Call Ratio(Vol) 0.98 1.09 -0.11

26-Jul Wk. Ago Mth. Ago

Year Ago

Call Rate 6.20% 6.13% 6.16% 6.11%

CBLO 6.23% 6.18% 6.18% 6.25%

Repo 6.25% 6.25% 6.25% 6.25%

Reverse Repo 6.00% 6.00% 6.00% 6.00%

91 Day T-Bill 6.70% 6.55% 6.44% 6.15%

364 Day T-Bill 7.24% 7.20% 7.00% 6.23%

10 Year Gilt 7.76% 7.79% 7.83% 6.45%

G-Sec Vol. (Rs.Cr) 36463 31971 19847 29750

Currency Market Update

FBIL MIBOR 6.39% 6.29% 6.34% 6.26%

3 Month CP Rate 7.80% 7.55% 7.50% 6.51%

5 Year Corp Bond 8.72% 8.74% 8.73% 7.40%

1 Month CD Rate 6.73% 6.46% 7.03% 6.24%

3 Month CD Rate 7.18% 7.07% 6.96% 6.23%

1 Year CD Rate 8.01% 7.97% 8.06% 6.52%

Commodity Market Update

Currency 26-Jul Prev_Day

Change

USD/INR 68.70 68.80 -0.10

GBP/INR 90.66 90.58 0.08

EURO/INR 80.60 80.45 0.15

International News

JPY/INR 0.62 0.62 0.00

Commodity 26-Jul Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 71.34 69.37 73.98 48.57

Brent Crude($/bl) 75.15 71.03 73.32 50.07

Gold( $/oz) 1222 1222 1259 1261

Gold(Rs./10 gm) 29869 29742 30394 28327

Source: Thomson Reuters Eikon

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

27 July 2018

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Bond yields fell on hopes that the Monetary Policy Committee will

maintain status quo in its monetary policy review due on Aug 1, 2018.

Expectations that domestic inflationary pressures may come down in Jul

also boosted market sentiments. Strength in the domestic currency

against the greenback also added to the gains.

• Yield on the 10-year benchmark paper (7.17% GS 2028) went down 3

bps to close at 7.76% as against its previous close of 7.79%. During the

session, bond yields traded in the range of 7.75% and 7.81%.

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

Facility (LAF) stood at Rs. 4,923 crore (gross) on Jul 26, compared with

Rs. 16,156 crore (gross) borrowed on Jul 25.

• Banks borrowed Rs. 21 crore under the central bank’s Marginal

Standing Facility on Jul 25 compared with borrowing of Rs. 165 crore on

Jul 24.

• A report from the U.S. Commerce Department revealed a higher than

expected fall in new home sales in the U.S. in Jun 2018. New home sales

dropped 5.3% to an annual rate of 631,000 in Jun after growing 3.9% to

a rate of 666,000 in May 2018.

• According to the Bank of Japan, producer prices in Japan grew 1.2%

YoY in Jun 2018, which was better that last two months growth rate of

1.0%. Month on month, producer prices inched up 0.2% after falling

0.1% in May 2018. The increase was driven by higher prices for

communications, advertising and real estate.

Markets for You

• Nifty July 2018 Futures settled at spot closing of 11,167.30. Nifty

August 2018 Futures settled at 11,201.35, a premium of 34.05 point over

the spot closing. The turnover on NSE’s Futures and Options segment

increased to Rs. 17,81,228.45 on Jul 26 from Rs. 9,05,673.15 on Jul 25.

• The Put-Call ratio stood at 0.92 against previous session’s close of 0.91.

• The Nifty Put-Call ratio stood at 1.95 compared with the previous

session’s close of 1.89.

• Open interest on Nifty Futures stood at 29.48 million as against the

previous session’s close at 28.92 million.

• The rupee rose against the greenback supported by gains in the

domestic market and easing trade dispute after the U.S. and the

European Union committed to work on reducing trade tariffs. The rupee

rose 0.17% to close at 68.66 against the previous close of 68.78.

• The euro went down against the greenback on hopes that the European

Central Bank will keep its monetary policy review on hold. Euro was last

seen trading at $1.1713, down 0.13% compared with the previous close

of $1.1728.

• Gold prices edged lower despite the weakness in the greenback against

the euro after the U.S. and the European Union came to terms on

lowering the trade tariff.

• Brent crude prices rose follwoing a drop in the U.S. inventory.

Thank you for

your time.