Mutual Fund News of 31 July 2019 – Reliance Mutual Fund

31Jul2019

MarketsforYou

https://www.reliancemutual.com

GlobalIndices

GlobalIndices 30‐Jul Prev_Day Abs.Change

%Change

Russell3000 1,323 1,327 ‐3 ‐0.26

Nasdaq 8,274 8,293 ‐20 ‐0.24

FTSE 7,647 7,687 ‐40 ‐0.52

Nikkei 21,709 21,617 93 0.43

HangSeng 28,147 28,106 40 0.14

IndianIndices 30‐Jul Prev_Day Abs.Change

%Change

S&PBSESensex 37,397 37,686 ‐289 ‐0.77

Nifty50 11,085 11,189 ‐104 ‐0.93

Nifty100 11,180 11,291 ‐111 ‐0.99

Nifty500 9,004 9,109 ‐105 ‐1.15

NiftyBank 28,792 29,296 ‐504 ‐1.72

S&PBSEPower 1,954 1,971 ‐17 ‐0.84

S&PBSESmallCap 12,650 12,926 ‐276 ‐2.14

S&PBSEHC 12,585 12,797 ‐213 ‐1.66

Date P/E Div.Yield P/E Div.Yield

30‐Jul 26.64 1.23 27.34 1.34

MonthAgo 28.46 1.19 28.98 1.24

YearAgo 23.53 1.17 28.12 1.19

Nifty50Top3Gainers

Company 30‐Jul Prev_Day

%Change

BhartiAirtel 346 335 3.35

TCS 2179 2130 2.31

HCLTech 1024 1015 0.80

Nifty50Top3Losers DomesticNews

Company 30‐Jul Prev_Day

%Change

YesBank 86 95 ‐9.18

IndusIndBank 1337 1432 ‐6.63

IndiabullsHFC 524 560 ‐6.40

AdvanceDeclineRatio

BSE NSE

Advances 534 346

Declines 1982 1514

Unchanged 107 76

InstitutionalFlows(Equity)

Description(Cr) YTD

FIIFlows* 66904

MFFlows** 18475

*30

Jul2019;**29

Jul2019

EconomicIndicator

YoY(%) Current YearAgo

CPI

3.18%

(Jun‐19)

4.92%

(Jun‐18)

IIP

3.10%

(May‐19)

3.80%

(May‐18)

GDP

5.80%

(Mar‐19)

8.10%

(Mar‐18)

31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

0.20%

(Feb‐19)

6.60%

(Dec‐18)

QuarterAgo

Inflow/Outflow

609

‐374

2.86%

(Mar‐19)

• The Reserve Bank of India (RBI) has relaxed rules for end‐use of money

raised through external commercial borrowings (ECBs). RBI said ECBs with

a minimum average maturity period of seven years can be used for

repayment of rupee loans taken domestically for capital expenditure as

also by non‐banking financial companies for on‐lending for the same

purpose.

• Under the Consumer Protection Bill 2019 passed in Lok Sabha,

misleading advertisements will now attract penalties. The bill contains

provisions to penalise a manufacturer or service provider as well as

celebrity endorser involved in such advertisements. Apart from

conventional media such as television, print and outdoor, the bill also

takes into account e‐commerce, direct selling, telemarketing, etc.

• The World Trade Organization (WTO) said volume of world merchandise

trade (measured by the average of exports and imports) grew 3% in 2018,

just above the 2.9% increase in world GDP over the same period but

“significantly lower” than the 4.6% growth recorded in 2017. The value of

world merchandise exports was $19.48 trillion in 2018, up from $17.33

trillion in 2017, partly due to higher oil prices. However, merchandise

exports of developing economies grew 11% in 2018 while imports

increased 12%, continuing the positive growth of 2017 after a decline in

2015‐16. Merchandise exports totalled $8.22 trillion and imports $7.97

trillion in 2018.

• The commerce and industry ministry has issued a cabinet note for a

new export incentives scheme that would be compliant with the World

TradeOrganization(WTO)rules.TheRebateofStateandCentralTaxes

and Levies (RoSCTL) scheme, which is available on export of garments and

made‐ups, will now be extended to all exports in phases. The new

scheme will replace the extant Merchandise Exports from India Scheme

(MEIS), which was challenged by the U.S. last year in WTO.

MarketsforYou

• Indian equity markets fell mainly because of earnings concerns, foreign

fund outflows and slowdown in auto sales. Investors also remained

cautious ahead of the U.S. Federal Reserve’s policy meet, scheduled on

Jul 31, 2019.

• Key benchmark indices S&P BSE Sensex and Nifty 50 lost 0.77% and

0.93% to close at 37,397.24 and 11,085.40, respectively. S&P BSE Mid‐

Cap and S&P BSE Small Cap lost 1.58% and 2.13%, respectively.

• The overall market breadth on BSE was weak with 534 scrips advancing

and 1982 scrips declining. A total of 107 scrips remained unchanged.

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

0.87%, followed by S&P BSE Teck and S&P BSE IT, which gained 0.69% and

0.67%, respectively. S&P BSE Metal was the major loser, down 3.25%,

followed by S&P BSE Energy and S&P BSE Basic Materials, down 2.42%

and 2.32%, respectively. S&P BSE Oil & Gas and S&P BSE Auto lost 2.14%

and 2.12%, respectively.

• Asian equity markets gained as investors looked forward to U.S. Federal

Reserve’s policy meet and further talks on the U.S.‐China trade front.

Expectations are for the U.S. Fed to cut rates by 25 basis points at the end

of a two‐day policy meeting on Jul 31, 2019. Today (as of Jul 31), Asian

markets opened lower as sentiment dampened around U.S.‐China trade

talks and investors are awaiting U.S. monetary policy announcement.

Both Nikkei and Hang Seng were trading lower 1.01% and 1.41%,

respectively (as at 8.a.m. IST).

• As per the last close, European markets lost as investors took stock of

earnings and renewed U.S.‐China trade uncertainty. The U.S. President’s

remarks have once again shadowed talks between the two countries.

• As per the last close, U.S. markets fell after the U.S. President said China

was not keeping its promise of buying more U.S. agricultural products.

This dampened hopes of a trade deal between the two economies.

Investors also looked forward to U.S. Federal Reserve’s monetary policy

decision.

FIIDerivativeTradeStatistics 30‐Jul

(RsCr) Buy Sell OpenInt.

IndexFutures 2175.74 3813.68 15515.48

IndexOptions 192748.27 190740.61 37587.77

StockFutures 12650.32 12459.69 84409.78

StockOptions 5339.50 5359.05 2588.62

Total 212913.83 212373.03 140101.65

30‐Jul Prev_Day Change

PutCallRatio(OI) 0.53 0.40 0.13

IndianDebtMarket

PutCallRatio(Vol) 0.85 0.87 ‐0.02

30‐Jul Wk.Ago Mth.Ago YearAgo

CallRate 5.53% 5.58% 5.94% 6.19%

T‐Repo 5.56% 5.55% 5.85% NA

Repo 5.75% 5.75% 5.75% 6.25%

ReverseRepo 5.50% 5.50% 5.50% 6.00%

91DayT‐Bill 5.70% 5.72% 6.02% 6.69%

364DayT‐Bill 5.93% 5.93% 6.08% 6.95%

10YearGilt 6.39% 6.46% 6.88% 7.79%

G‐SecVol.(Rs.Cr) 49385 49145 45259 22108

CurrencyMarketUpdate

FBILMIBOR* 5.75% 5.80% 5.97% 6.27%

3MonthCPRate 6.30% 6.30% 7.00% 7.50%

5YearCorpBond 7.72% 7.74% 8.10% 8.66%

1MonthCDRate 5.71% 5.90% 6.07% 6.81%

3MonthCDRate 6.28% 6.28% 6.41% 7.25%

1YearCDRate 6.87% 7.02% 7.16% 7.99%

CommodityMarketUpdate

Currency 30‐Jul Prev_Day Change

USD/INR 68.75 68.90 ‐0.15

GBP/INR 83.54 85.22 ‐1.67

EURO/INR 76.58 76.66 ‐0.08

InternationalNews

JPY/INR 0.63 0.63 0.00

Commodity 30‐Jul WkAgo Mth.Ago YearAgo

NYMEXCrude($/bl) 58.04 56.55 58.17 70.81

BrentCrude($/bl) 61.69 62.47 68.96 75.63

Gold($/oz) 1431 1417 1409 1221

Gold(Rs./10gm) 34801 34852 34006 29773

Source:ThomsonReutersEikon

*Asonprevioustradingday

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

31July2019

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,

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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

• Bond yield declined amid hopes of policy rate cut by the U.S. Federal

Reserve in the two‐day meeting. In addition, the domestic finance

minister’s comment clearing doubts that no review is being conducted

on sovereign bond issue also lifted the market sentiment.

• Yield on the 10‐year benchmark paper (7.26% GS 2029) plunged 2 bps

to close at 6.39% compared with the previous close of 6.41% after

trading in a range of 6.38% to 6.44%.

• Banks borrowings under the repo window of the Liquidity Adjustment

Facility (LAF) stood at Rs. 4,033 crore (gross) on Jul 30, 2019 compared

with Rs. 3,709 crore (gross) borrowed on Jul 29, 2019. Sale of securities

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

15,710 crore on Jul 29, 2019.

• Banks borrowed Rs. 199 crore under the central bank’s Marginal

Standing Facility on Jul 29, 2019 compared with Rs. 300 crore borrowed

on Jul 26, 2019.

• A Conference Board report showed that the U.S. consumer confidence

index surged up to 135.7 in Jul after tumbling to 124.3 in Jun 2019.

• A National Association of Realtors report showed pending home sales

in the U.S. surged up by 2.8% to 108.3 in Jun after jumping by 1.1% to

105.4 in May 2019.

• A Commerce Department report showed personal income and

spending in the U.S. rose in line with estimates in Jun 2019. Personal

income climbed 0.4% in Jun, matching the increase in May 2019.

MarketsforYou

• Nifty Aug 2019 Futures were at 11,095.2, a premium of 9.80 points,

above the spot closing of 11,085.40. The turnover on NSE’s Futures and

Options segment increased to Rs. 13,60,911.98 crore on Jul 30, 2019,

compared with Rs. 8,98,331.92 crore on Jul 29, 2019.

• The Put‐Call ratio remained unchanged compared with previous

session’s close of 0.88.

• The Nifty Put‐Call ratio stood at 0.53 compared with the previous

session’s close of 0.40.

• Open interest on Nifty Futures stood at 18.15 million, compared with

the previous session’s close of 18.22 million.

• The Indian rupee fell against the greenback following losses in the

domestic equity market and concerns of foreign fund outflow from the

domestic economy. The rupee closed at 68.86 a dollar, down 0.19

compared with the previous close of 68.73.

• The euro inched against the greenback as the latter remained unde

pressure ahead of the U.S. Federal Reserve Monetary Policy review. The

euro was last seen trading at 1.1153, up 0.08% compared with the

previous close of 1.1144.

• Gold prices continued with the rally, supported by the weakness in the

international bond yields in response to disappointing Japanese and

European data. .

• Brent Crude prices rose, led by media reports stating that Iranian oil

exports have dropped in Jul.

Thank you for

your time.

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