Mutual Fund News 20th March 2018 – Reliance Mutual Fund

20 Mar 2018

Markets for You

Global Indices

Global Indices 19-Mar Prev_Day Abs. Change

% Change

Dow Jones 24,611 24,947 -336 -1.35

Nasdaq 7,344 7,482 -138 -1.84

FTSE 7,043 7,164 -121 -1.69

Nikkei 21,481 21,677 -196 -0.90

Hang Seng 31,514 31,502 12 0.04

Indian Indices 19-Mar Prev_Day Abs. Change

% Change

S&P BSE Sensex 32,923 33,176 -253 -0.76

Nifty 50 10,094 10,195 -101 -0.99

Nifty 100 10,444 10,556 -112 -1.06

Nifty Bank 24,245 24,490 -244 -1.00

SGX Nifty 10,109 10,244 -135 -1.32

S&P BSE Power 2,127 2,140 -13 -0.59

S&P BSE Small Cap 17,228 17,576 -348 -1.98

S&P BSE HC 13,385 13,506 -121 -0.90

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

19-Mar 22.71 1.19 24.61 1.29

Month Ago 23.60 1.16 25.14 1.09

Year Ago 22.90 1.37 23.78 1.21

Nifty 50 Top 3 Gainers

Company 19-Mar Prev_Day

% Change

NTPC 167 165 1.30

Maruti 8774 8677 1.12

Power Grid 194 192 1.01

Nifty 50 Top 3 Losers Domestic News

Company 19-Mar Prev_Day

% Change

HCL Tech 927 968 -4.25

Tata Steel 575 600 -4.21

Bharti Airtel 400 417 -4.10

Advance Decline Ratio

BSE NSE

Advances 514 285

Declines 2235 1546

Unchanged 162 52

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* 10176

MF Flows** 27291

*19

Mar 2018; **16

Mar 2018

Economic Indicator

YoY(%) Current Year Ago

WPI

2.48%

(Feb-18)

5.51%

(Feb-17)

IIP

7.50%

(Jan-18)

3.00%

(Jan-17)

GDP

7.20%

(Dec-17)

6.80%

(Dec-16)

20 March 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

1.80%

(Oct-17)

6.50%

(Sep-17)

Quarter Ago

Inflow/Outflow

-1076

1051

4.02%

(Nov-17)

• Indian equity markets closed in the red amid concerns after India’s

current account deficit data for the third quarter FY18 widened to 2% of

gross domestic product, or $13.5 billion driven by higher imports. Also,

investors remained cautious ahead of the U.S. Federal Reserve’s and

Bank of England’s policy meeting later in the week. Meanwhile, investors

are closely watching developments in the parliament this week following

the no-confidence motion moved by regional political party against the

ruling government.

• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.76% and

0.99%, respectively to close at 32,923.12 and 10,094.25. S&P BSE Mid-

Cap and S&P BSE Small-Cap fell 1.58% and 1.98%, respectively.

• On the BSE sectoral front, S&P BSE Telecom was the major loser, down

3.40%, followed by S&P BSE Realty that fell 3.01% and S&P BSE Metal

that declined 2.65%. S&P BSE Teck and S&P BSE Basic Materials fell

2.08% and 2.00%, respectively. S&P BSE Information Technology and S&P

BSE Oil & Gas fell 1.98% and 1.70%, respectively. None of the BSE sectors

ended in the green.

• According to media reports, procurement of wheat may cross the

target of 32 million tonnes for 2018-19. Meanwhile the state

governments are taking steps to ensure that farmers get minimum

support price (MSP) of Rs 1,735 per quintal.

• According to the minister of state for finance, bad loans in the banking

sector have gone up steadily for the past eight years. At the end of Dec

2017, non-performing assets in state run banks have surpassed Rs 7.77

lakh crore. On a separate note, the minister added that corporate

lending by banks have increased from Rs. 31.12 lakh crore in Mar 2013 to

Rs. 40.66 lakh crore at the end of Dec 2017.

• According to media reports, the Indian government is considering

approaching the World Trade Organization’s (WTO) dispute settlement

body against the U.S. President’s move to raise import duty on aluminum

and steel. It needs to be noted that trade tensions have increased

recently after the U.S. approached WTO dispute settlement body to hold

discussions with India. U.S. is of the view that there are multiple export

promotion schemes which has impacted the U.S. business activity and

workers.

• According to media reports, Binani Industries may sell 98.47% stake in

cement arm to UltraTech to pay off the debtors to the company

• According to media reports, Suzlon Group has won two wind power

projects of 300 MW and 200 MW. The two projects will be located at

Kutch district in Gujarat.

• According to media reports, BHEL has commissioned first unit of 110

MW of the Kishanganga hydro-electric project (HEP) of NHPC in Jammu

and Kashmir.

• According to media reports, state owned Indian Oil Corp. and Bharat

Petroleum Corp Ltd. may buy 26% stake each in gas utility GAIL India Ltd.

Thereby paying the government over Rs. 20,000 crore each to become

integrated energy firms.

• Asian markets witnessed a mixed trend ahead of the highly anticipated

monetary policy decision by U.S. Federal Reserve, scheduled later during

the week. Market participants also awaited new Fed Chairman's first

press conference for near term directional cues. Today (As of Mar 20),

Asian markets opened lower amid soft lead from Wall Street in the last

session. Also, an ongoing political scandal that is hurting public support

for Japan’s Prime Minister weighed on the market sentiment. Nikkei and

Hang seng fell 0.68% and 0.52%, respectively (as at 8.a.m. IST).

• As per the last close, European markets ended lower amid concerns

over potential trade war. Also, investors remained cautious ahead of

policy decisions by U.S. Federal Reserve (Fed) and the Bank of England

later this week.

• As per the last close, U.S markets ended lower amid lingering concerns

about a potential trade war and political uncertainty. Decline in a U.S.

technology major amid some allegations negatively impacted the indices.

Also, investors remained cautious ahead of the Fed’s monetary policy

decisions later this week.

Markets for You

FII Derivative Trade Statistics 19-Mar

(Rs Cr) Buy

Sell Open Int.

Index Futures 2473.66 4695.23 22864.94

Index Options 76038.22 76099.70 69142.89

Stock Futures 11248.95 11518.51 78972.95

Stock Options 6299.29 6226.28 7628.77

Total 96060.12 98539.72 178609.55

19-Mar Prev_Day

Change

Put Call Ratio (OI) 1.04 1.09 -0.05

Indian Debt Market

Put Call Ratio(Vol) 0.83 0.89 -0.06

19-Mar Wk. Ago Mth. Ago

Year Ago

Call Rate 5.91% 5.86% 5.96% 6.03%

CBLO 5.96% 5.77% 4.96% 4.88%

Repo 6.00% 6.00% 6.00% 6.25%

Reverse Repo 5.75% 5.75% 5.75% 5.75%

91 Day T-Bill 6.13% 6.24% 6.32% 5.91%

364 Day T-Bill 6.50% 6.57% 6.56% 6.14%

10 Year Gilt 7.61% 7.63% 7.58% 6.86%

G-Sec Vol. (Rs.Cr) 34854 29752 23303 23600

Currency Market Update

1 Month CP Rate 7.69% 7.79% 6.87% 6.70%

3 Month CP Rate 7.24% 7.79% 7.89% 6.77%

5 Year Corp Bond 7.95% 8.07% 7.88% 7.62%

1 Month CD Rate 6.83% 7.08% 6.23% 6.24%

3 Month CD Rate 6.79% 7.04% 7.22% 6.28%

1 Year CD Rate 7.26% 7.41% 7.48% 6.66%

Commodity Market Update

Currency 19-Mar Prev_Day

Change

USD/INR 65.04 64.87 0.16

GBP/INR 90.56 90.49 0.07

EURO/INR 79.78 79.91 -0.14

International News

JPY/INR 0.62 0.61 0.00

Commodity 19-Mar Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 62.00 61.34 61.87 48.29

Brent Crude($/bl) 64.36 64.52 64.19 50.07

Gold( $/oz) 1317 1323 1346 1228

Gold(Rs./10 gm) 30154 30271 30635 28487

Source: Thomson Reuters Eikon

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

20 March 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 Mar 2018 Futures were at 10,122.80 points, a premium of 28.55

points, above the spot closing of 10,094.25. The turnover on NSE’s

Futures and Options segment went up from Rs. 5,88,936.11 crore on

Mar 16 to Rs. 6,25,236.27 crore on Mar 19.

• The Put-Call ratio stood at 0.81 against previous session’s close of

0.86.

• The Nifty Put-Call ratio stood at 1.04 against the previous session’s

close at 1.09.

• Open interest on Nifty Futures stood at 27.68 million as against the

previous session’s close of 28.14 million.

• Bond yields grew as investors were cautious ahead of the U.S. Federal

Reserve’s meeting starting from Mar 20 wherein a rate hike is expected.

Investors also resorted to profit booking thereby further leading to fall

in bond prices.

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

close at 7.61% as against previous session’s close of 7.56%. During the

session, bond yields traded in the range of 7.54% and 7.61%.

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

Facility (LAF) stood at Rs. 5,497 crore (gross) on Mar 19 compared with

Rs. 10,297 crore on Mar 16. Sale of securities under Reserve Bank of

India’s (RBI) reverse repo window stood at Rs. 19,721 crore on Mar 16.

• Banks borrowed Rs. 390 crore under the central bank’s Marginal

Standing Facility on Mar 16 compared with that of Rs. 1,340 crore

borrowed on Mar 15.

• The Indian rupee fell against the U.S. dollar following rise in U.S.

industrial production in Feb 2018 and consumer sentiment in Mar 2018.

• After falling in the last three consecutive days, the euro rose

marginally against the greenback ahead of the U.S. Federal Reserve

policy meeting, which is expected to see its first rate hike of 2018.

• Gold prices traded slightly lower as investors preferred to remain on

the sidelines ahead of the U.S. Federal Reserve monetary policy meeting

this week.

• Brent crude prices traded lower after the number of active U.S. oil rigs

increased by four in the week ending Mar 16.

• A preliminary report from the University of Michigan showed an

unexpected improvement in U.S. consumer sentiment in Mar 2018. The

preliminary reading on the consumer sentiment index for Mar 2018

came in at 102.0, up from the final Feb reading of 99.7.

• A report from the U.S. Federal Reserve showed a modest decrease in

U.S. industrial production in Feb 2018. Industrial production grew 1.1%

in Feb 2018 after falling by a revised 0.3% in Jan 2018 (0.1% fall

originally reported).

• According to the British Chambers of Commerce, the U.K. economy is

expected to grow 1.4% this year up from 1.1% projected earlier. The

growth projection for 2019 was increased to 1.5% from 1.3%. For 2020,

the U.K. economy is expected to grow 1.6% in 2020.

Markets for You

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