Mutual Fund News of 22 March 2019 – Reliance Mutual Fund

22 Mar 2019

Markets for You

Global Indices

Global Indices 21-Mar Prev_Day Abs. Change

% Change

Dow Jones 25,963 25,746 217 0.84

Nasdaq 7,839 7,729 110 1.42

FTSE 7,355 7,291 64 0.88

Nikkei Closed 21,609 NA NA

Hang Seng 29,072 29,321 -249 -0.85

Indian Indices 20-Mar Prev_Day Abs. Change

% Change

S&P BSE Sensex 38,387 38,363 23 0.06

Nifty 50 11,521 11,532 -11 -0.10

Nifty 100 11,681 11,697 -15 -0.13

Nifty Bank 29,832 29,768 64 0.22

SGX Nifty 11,561 11,599 -38 -0.33

S&P BSE Power 1,984 2,015 -31 -1.54

S&P BSE Small Cap 14,824 14,873 -49 -0.33

S&P BSE HC 14,280 14,270 11 0.08

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

20-Mar 27.85 1.14 28.24 1.17

Month Ago 22.97 1.20 26.50 1.26

Year Ago 22.72 1.19 24.69 1.29

Nifty 50 Top 3 Gainers

Company 20-Mar Prev_Day

% Change

Indiabulls HFC 733 698 4.96

Hindalco 207 202 2.37

Infosys 739 722 2.31

Nifty 50 Top 3 Losers Domestic News

Company 20-Mar Prev_Day

% Change

HPCL 275 291 -5.38

Zee Ente. 443 466 -4.84

BPCL 389 408 -4.57

Advance Decline Ratio

BSE NSE

Advances 1088 691

Declines 1597 1160

Unchanged 167 97

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* 39031

MF Flows** 2594

*20

Mar 2019; **19

Mar 2019

Economic Indicator

YoY(%) Current Year Ago

CPI

2.57%

(Feb-19)

4.44%

(Feb-18)

IIP

1.70%

(Jan-19)

7.50%

(Jan-18)

GDP

6.60%

(Dec-18)

7.70%

(Dec-17)

22 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

8.40%

(Oct-18)

7.10%

(Sep-18)

Quarter Ago

Inflow/Outflow

-540

2190

3.38%

(Oct-18)

• Indian equity markets were flat as weakness in the rupee and rising oil

prices made investors book some profits. The markets had been gaining

for the past seven sessions. Global cues were mixed too as trade worries

re-emerged on media reports that China is not conceding to U.S.

demands. Also, investors awaited U.S. Federal Reserve’s (Fed) interest-

rate decision later in the day.

• Key benchmark indices S&P BSE Sensex gained 0.06% and Nifty 50 lost

0.10% to close at 38,386.75 and 11,521.05, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap lost 0.36% and 0.33%, respectively.

• The overall market breadth on BSE was weak with 1088 scrips

advancing and 1597 scrips declining. A total of 170 scrips remained

unchanged.

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

2.21%, followed by S&P BSE Information Technology and S&P BSE Teck,

up 0.93% and 0.55%, respectively. S&P BSE Capital Goods and S&P BSE

Finance gained 0.48% and 0.21%, respectively. The biggest loser was S&P

BSE Oil and Gas down 2.26%, followed by S&P BSE Utilities and S&P BSE

Power, down 1.84% and 1.54%, respectively.

• According to media reports, economists have raised concerns over a

sharp slowdown in the Indian economy and batted for a monetary policy

boost to support growth. This happened at a meeting with the Reserve

Bank of India (RBI) governor. The governor met more than 12 economists

to get their views on the economy ahead of the Monetary Policy

Committee (MPC) decision scheduled on Apr 4, 2019. Most economists

expect the six-member MPC to cut the repo rate by 25 basis points for

the second time to 6.00%, which is a level last seen in Aug 2017.

• The RBI governor has called for a permanent status to the Finance

Commission and a robust expenditure planning without compromising

on fiscal consolidation. Fiscal federalism is gathering momentum in the

era of goods and services tax (GST). The governor said there is a need to

ensure consistencies between finance commissions so that there is some

certainty in the flow of funds to states.

• India has expressed concern over the widening trade deficit with China.

The deficit with China has grown to more than $58 billion. India's

ambassador to China said India is working with the Chinese for ensuring

greater market access to Indian agricultural products. The bilateral trade

will cross the $100 billion mark this year, he said.

• The finance minister said there is need for setting up of GST Council-

like federal institutions to promote healthcare, rural development and

agriculture sector. Such institutions will help by optimally utilising

resources of the centre and states, he said. The successful establishing of

GST Council, which is a constitutional body for making suggestions to the

union and state governments on issues related to GST, needs to be

repeated in other areas. He said agriculture, rural development and

healthcare are areas where the central government spends a lot of

money on supporting farmers, creating infrastructure and building health

centres for poor population. Also, the state governments are spending

money on these sectors.

Markets for You

• Asian equity markets were mainly higher after the U.S. Federal Reserve

in its meeting hinted that it could no longer raise rates in 2019. This level

of dovishness was more than the markets had expected from the Fed.

The gains were capped amid Brexit concerns and U.S.-China trade talk

worries. The U.S. President warned that U.S. might maintain tariffs on

Chinese goods for a "substantial period" to make Beijing comply with a

trade deal.Today (as of Mar 22), Asian markets opened higher following

an overnight surge on Wall Street. Both Nikkei and Hangseng were

trading up 0.10% and 0.50%, respectively (as at 8.a.m. IST).

• As per the last close, European markets closed mixed following

concerns over Brexit uncertainty and U.S. China trade tensions. However,

rise in U.K. retail sales in Feb 2019 and Bank of England keeping interest

rates on hold as expected boosted the U.K. market.

• As per the last close, U.S markets closed higher following gains from

technology stocks and upbeat U.S. economic data. However, indications

by the U.S. Federal Reserve of keeping the rates unchanged in 2019

restricted the gains.

FII Derivative Trade Statistics

20-Mar

(Rs Cr) Buy

Sell Open Int.

Index Futures 3206.95 2919.41 28018.46

Index Options 218092.77 217538.61 80343.13

Stock Futures 12351.11 12952.04 92807.03

Stock Options 8405.78 8371.82 9553.81

Total 242056.61 241781.88 210722.43

20-Mar Prev_Day

Change

Put Call Ratio (OI) 1.71 1.78 -0.07

Indian Debt Market

Put Call Ratio(Vol) 1.05 1.05 0.00

20-Mar Wk. Ago Mth. Ago

Year Ago

Call Rate 6.20% 6.17% 6.29% 5.92%

T-Repo 6.20% 6.14% 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 6.27% 6.35% 6.40% 6.06%

364 Day T-Bill 6.42% 6.48% 6.50% 6.45%

10 Year Gilt 7.36% 7.38% 7.34% 7.62%

G-Sec Vol. (Rs.Cr) 22332 27976 23364 25012

Currency Market Update

FBIL MIBOR* 6.25% 6.26% 6.31% 6.04%

3 Month CP Rate 7.50% 7.55% 7.75% 7.25%

5 Year Corp Bond 8.44% 8.39% 8.40% 8.14%

1 Month CD Rate 7.75% 7.16% 6.65% 6.89%

3 Month CD Rate 7.28% 7.30% 7.39% 6.82%

1 Year CD Rate 7.46% 7.85% 7.62% 7.27%

Commodity Market Update

Currency 20-Mar Prev_Day

Change

USD/INR 68.86 68.58 0.28

GBP/INR 91.28 91.01 0.28

EURO/INR 78.14 77.82 0.33

International News

JPY/INR 0.62 0.62 0.00

Commodity 21-Mar Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 59.93 60.07 56.85 63.36

Brent Crude($/bl) 68.74 68.79 67.36 65.24

Gold( $/oz) 1309 1312 1338 1311

Gold(Rs./10 gm)* 31812 32225 33730 30251

Source: Thomson Reuters Eikon

*As on Mar 20, 2019

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

22 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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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 11,553.20, a premium of 32.15 points,

over the spot closing of 11,521.05. The turnover on NSE’s Futures and

Options segment increased to Rs. 18,85,084.00 crore on Mar 20, 2019,

compared with Rs. 10,70,873.47 crore on Mar 19, 2019.

• The Put-Call ratio stood at 0.76, compared with the previous session’s

close of 0.90.

• The Nifty Put-Call ratio stood at 1.71 compared with the previous

session’s close of 1.78.

• India VIX decreased 2.98% to 16.0000 compared with 16.4925 at the

previous trading session.

• Bond yields eased following gains in the domestic currency, supported

by greenback sales and hopes of foreign fund inflows. However,

investors stayed on the sidelines ahead of the Federal Reserve’s policy

outcome, which restricted further fall in the yield.

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

declined 2 bps to 7.52% as compared with the previous session’s close

of 7.54% after trading in the range of 7.51% to 7.54%.

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

declined 2 bps to close at 7.36% compared with the previous session’s

close of 7.38% after trading in the range of 7.36% to 7.39%.

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

Facility (LAF) stood at Rs. 5,016 crore (gross) on Mar 20, 2019, compared

with Rs. 6,261 crore (gross) as on Mar 19, 2019. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 9,444

crore on Mar 19, 2019.

• The Indian rupee appreciated against the greenback, supported by

dollar sales by exporters and on expectations of foreign fund inflows.

However, further upside was restricted ahead of the outcome of the

Federal Reserve policy meeting.

• The euro fell against the greenback as investor risk sentiment

dampened on renewed concerns of global trade war after the U.S.

President indicated that the U.S. tariffs on China would remain in place

"for a substantial period of time".

• Gold prices rose after the U.S. Fed, in its policy meeting, announced to

leave interest rates unchanged while also indicating the central bank no

longer expects to raise rates in 2019.

• Brent Crude prices traded marginally higher, backed by supply cuts led

by the OPEC, coupled with U.S. sanctions on Iran and Venezuela.

• Preliminary data from the Office for National Statistics showed U.K.

consumer price inflation unexpectedly increased in Feb 2019. This was

for the first time in six months. The consumer price index rose 1.9% YoY

following a 1.8% increase in Jan. Expectations were for inflation rate to

remain unchanged.

• Eurostat data showed euro zone construction output fell in Jan 2019

after rising in the previous two months. This reflects declines in both

building and civil engineering segments.

Markets for You

Thank you for

your time.