Mutual Fund News of 11 March 2019 – Reliance Mutual Fund

11 Mar 2019

Markets for You

Global Indices

Global Indices 08-Mar Prev_Day Abs. Change

% Change

Dow Jones 25,450 25,473 -23 -0.09

Nasdaq 7,408 7,421 -13 -0.18

FTSE 7,104 7,158 -53 -0.74

Nikkei 21,026 21,456 -430 -2.01

Hang Seng 28,228 28,779 -551 -1.91

Indian Indices 08-Mar Prev_Day Abs. Change

% Change

S&P BSE Sensex 36,671 36,725 -54 -0.15

Nifty 50 11,035 11,058 -23 -0.21

Nifty 100 11,225 11,244 -19 -0.17

Nifty Bank 27,762 27,765 -3 -0.01

SGX Nifty 11,049 11,107 -59 -0.53

S&P BSE Power 1,917 1,899 18 0.96

S&P BSE Small Cap 14,529 14,540 -11 -0.08

S&P BSE HC 13,973 13,998 -25 -0.18

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

8-Mar 27.17 1.17 27.05 1.22

Month Ago 23.53 1.15 27.10 1.23

Year Ago 23.07 1.18 25.00 1.27

Nifty 50 Top 3 Gainers

Company 08-Mar Prev_Day

% Change

NTPC 152 146 4.10

Eicher Motors 21871 21522 1.62

GAIL 350 344 1.60

Nifty 50 Top 3 Losers Domestic News

Company 08-Mar Prev_Day

% Change

Tata Motors 181 189 -4.28

Wipro 258 269 -4.15

Tata Steel 508 521 -2.55

Advance Decline Ratio

BSE NSE

Advances 1189 800

Declines 1460 1006

Unchanged 139 109

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* 18579

MF Flows** 8492

Mar 2019; **7

Mar 2019

Economic Indicator

YoY(%) Current Year Ago

CPI

2.05%

(Jan-19)

5.07%

(Jan-18)

IIP

2.40%

(Dec-18)

7.30%

(Dec-17)

GDP

6.60%

(Dec-18)

7.70%

(Dec-17)

11 March 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

4.60%

(Sep-18)

7.10%

(Sep-18)

Quarter Ago

Inflow/Outflow

-483

1074

3.38%

(Oct-18)

• After gaining for the last four consecutive sessions, Indian equity

markets closed in the red on weak global cues. Asian markets remained

under pressure following China’s weak export data for Feb 2019 that led

to fears about a global economic slowdown.

• Further, decline in auto stocks weighed on the indices. Auto stocks fell

following reports that retail sales of luxury car unit of an auto major

declined in Feb 2019. Weakness in rupee added to the losses. However,

decline in crude oil prices restricted the losses.

• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.15% and

0.21% to close at 36,671.43 and 11,035.40, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap each fell 0.08%.

• The overall market breadth on BSE was weak with 1,460 scrips

declining and 1,189 scrips advancing. A total of 139 scrips remained

unchanged.

• On the BSE sectoral front, S&P BSE Metal stood as the major loser,

down 1.57% followed by S&P BSE Information Technology and S&P BSE

Teck that fell 0.88% and 0.79%, respectively. S&P BSE Utilities stood as

the major gainer and grew 1.09%, followed by S&P BSE Power that grew

0.96%.

• The Reserve Bank of India (RBI) eased norms/business guidelines for

white label ATMs. Under the new norms, white label ATM operators

(WLAO) can source cash directly from RBI or any scheduled banks

including rural banks and cooperative banks. In addition, WLAOs can

offer bill payment and deposit services and may also display

advertisements of non-finance products provided it doesn’t run on the

screen when the customer is conducting a transaction.

• Data from the Society of Indian Automobile Manufacturers (SIAM)

showed that sales of passenger vehicles fell in Feb 2019 on account of

high insurance costs and tightened liquidity in the market which

subsequently dampened market sentiments. Passenger vehicle sales fell

1.11% to 272,284 units. Sales of commercial vehicles decreased 0.43% to

87,436 units while that of three-wheeler sales fell 4.14% to 59,875 units.

Sales of two-wheelers also came down 4.22% to 16,15,071 units. Overall,

vehicle sales across categories declined 3.65% to 20,34,768 units.

• According to the Economic Affairs Secretary, the government will be

able to meet the fiscal deficit target of 3.4% in FY19 as the shortfall in

indirect tax collection would be compensated by lower expenditure. The

Economic Affairs Secretary further added that the collection of direct

taxes will be as per the revised estimates. On a separate note, the

Economic Affairs Secretary unlined the importance of private equity and

venture capital industry in ensuring high growth of the Indian economy

and added that it is imperative that genuine startups do not suffer.

• According to media reports, the Reserve Bank of India has expressed

concerns over the inability of credit rating agencies to assess credit risk

and take timely actions accordingly. The Central Bank noted that sudden

and abrupt credit rating downgrades in recent months have hurt

investors and banks.

• RBI has notified banks with norms regarding 2% interest subvention or

subsidy for short-term crop loans during 2018-19 and 2019-20. It needs

to be noted that the Central Government has already approved the

scheme.

Markets for You

• Asian equity markets fell after the European Central Bank (ECB) revised

its 2019 GDP forecast downward and China reported worse than

expected trade data for Feb 2019. Investors also awaited the release of

monthly jobs report for Feb 2019, scheduled later in the day. China lost

after official data showed Chinese exports declined the most in three

years in Feb and imports fell for the third consecutive month. Today (as

of Mar 11), Asian markets opened higher following increase in crude oil

prices. Both Nikkei and Hangseng was trading up 0.17% and 0.33%,

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

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

disappointing U.S. jobs data and China’s trade data for Feb 2019 raised

concerns about the global economy.

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

Department revealed much more than expected decline in U.S. non-farm

payroll data in Feb 2019. Concerns that the global economy may be

slowing down also weighed on the markets. However, rebound in U.S.

housing starts data in Jan 2019 restricted the losses.

FII Derivative Trade Statistics

08-Mar

(Rs Cr) Buy

Sell Open Int.

Index Futures 3107.72 2574.88 15862.29

Index Options 187405.63 185333.21 53771.10

Stock Futures 10339.86 10717.70 86609.34

Stock Options 7258.55 7342.24 6085.27

Total 208111.76 205968.03 162328.00

08-Mar Prev_Day

Change

Put Call Ratio (OI) 1.60 1.77 -0.17

Indian Debt Market

Put Call Ratio(Vol) 1.06 1.03 0.03

08-Mar Wk. Ago Mth. Ago

Year Ago

Call Rate 6.15% 6.20% 6.35% 5.88%

T-Repo 6.20% 6.20% 6.34% NA

Repo 6.25% 6.25% 6.25% 6.00%

Reverse Repo 6.00% 6.00% 6.00% 5.75%

91 Day T-Bill 6.42% 6.38% 6.32% 6.27%

364 Day T-Bill 6.45% 6.51% 6.55% 6.63%

10 Year Gilt 7.37% 7.38% 7.33% 7.66%

G-Sec Vol. (Rs.Cr) 30649 32544 54792 35780

Currency Market Update

FBIL MIBOR 6.27% 6.35% 6.51% 6.00%

3 Month CP Rate 7.70% 7.80% 7.45% 7.84%

5 Year Corp Bond 8.36% 8.32% 8.45% 8.22%

1 Month CD Rate 7.31% 6.96% 6.56% 7.07%

3 Month CD Rate 7.26% 7.30% 6.96% 7.12%

1 Year CD Rate 7.69% 7.69% 7.96% 7.43%

Commodity Market Update

Currency 08-Mar Prev_Day

Change

USD/INR 70.10 70.03 0.07

GBP/INR 91.80 92.26 -0.46

EURO/INR 78.55 79.17 -0.62

International News

JPY/INR 0.63 0.63 0.00

Commodity 08-Mar Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 55.72 55.71 52.70 60.12

Brent Crude($/bl) 63.07 63.15 61.46 63.96

Gold( $/oz) 1298 1293 1314 1322

Gold(Rs./10 gm) 32123 32819 33043 30459

Source: Thomson Reuters Eikon

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

11 March 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

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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.

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty Mar 2019 Futures were at 11,076.05, a premium of 40.65 points,

over the spot closing of 11,035.40. The turnover on NSE’s Futures and

Options segment decreased to Rs. 5,39,930.66 crore on Mar 8, 2019,

compared with Rs. 17,03,076.34 crore on Mar 7, 2019.

• The Put-Call ratio stood at 0.87, compared with the previous session’s

close of 0.85.

• The Nifty Put-Call ratio stood at 1.60 compared with the previous

session’s close of 1.77.

• Open interest on Nifty Futures stood at 15.60 million as against the

previous session’s close at 15.57 million.

• Bond yields eased following overnight decline in U.S. Treasury yield.

The market sentiment was also supported by optimism on another rate

cut in the upcoming Monetary Policy Committee meeting scheduled for

Apr 2019.

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

declined 5 bps to close at 7.53% as compared with the previous

session’s close of 7.58% after trading in the range of 7.52% to 7.57%.

• Yield on the upcoming new 10-year benchmark paper (7.26% GS 2029)

declined 2 bps to close at 7.37% compared with the previous session’s

close of 7.39% after trading in the range of 7.35% to 7.39%.

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

Facility (LAF) stood at Rs. 4,259 crore (gross) on Mar 8, 2019, compared

with Rs. 3,056 crore (gross) as on Mar 7, 2019. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 16,389

crore on Mar 7, 2019.

• The Indian rupee declined against the greenback following dollar

purchase by a state-run bank and a private lender. Market participants

are awaiting the release of U.S. nonfarm payroll data to take further

cues. The rupee closed at 70.15 a dollar, down 0.21% compared with the

previous close of 70.00.

• The euro rose against the greenback after the U.S. nonfarm payroll

data for Feb 2019 came well below market expectations. The euro was

last seen trading at 1.1238 a dollar, up 0.41% compared with the

previous close of 1.1192.

• Gold prices strengthen amid global growth worries after European

Central Bank cut the 2019 growth forecast for eurozone.

• Brent crude prices plunged on global growth concerns, which

aggravated after European Central Bank trimmed eurozone’s growth

forecast for 2019.

• Labor Department report showed U.S. non-farm payroll employment

rose by 20,000 jobs, much less than expected, in Feb 2019 following

upwardly revised 311,000 jobs increase in Jan 2019.

• According to preliminary data from the Federal Statistical Office,

German factory orders fell sharply 2.6% MoM in Jan 2019 as against

revised 0.9% increase in Dec 2018.

• According to data from the Cabinet Office, Japan's GDP rose 0.5% QoQ

in the fourth quarter of 2018 as against 0.3% rise in the previous

reading. On YoY basis, GDP rose 1.9% following 1.4% rise in the previous

reading.

Markets for You

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