Mutual Fund News of 26th March 2018

26 Mar 2018

Markets for You

Global Indices

Global Indices 23-Mar Prev_Day Abs. Change

% Change

Dow Jones 23,533 23,958 -425 -1.77

Nasdaq 6,993 7,167 -174 -2.43

FTSE 6,922 6,953 -31 -0.44

Nikkei 20,618 21,592 -974 -4.51

Hang Seng 30,309 31,071 -762 -2.45

Indian Indices 23-Mar Prev_Day Abs. Change

% Change

S&P BSE Sensex 32,597 33,006 -410 -1.24

Nifty 50 9,998 10,115 -117 -1.15

Nifty 100 10,358 10,470 -113 -1.08

Nifty Bank 23,670 24,142 -471 -1.95

SGX Nifty 10,007 10,106 -100 -0.98

S&P BSE Power 2,117 2,131 -15 -0.68

S&P BSE Small Cap 16,801 17,064 -263 -1.54

S&P BSE HC 13,106 13,302 -196 -1.48

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

23-Mar 22.50 1.20 24.38 1.30

Month Ago 23.66 1.16 25.75 1.13

Year Ago 22.36 1.41 23.59 1.22

Nifty 50 Top 3 Gainers

Company 23-Mar Prev_Day

% Change

HCL Tech 957 931 2.89

Bharti Infratel 343 335 2.18

Zee Entertainment 569 559 1.82

Nifty 50 Top 3 Losers Domestic News

Company 23-Mar Prev_Day

% Change

Vedanta Limited 276 292 -5.41

Hindalco 206 217 -4.94

Yes Bank 287 298 -3.89

Advance Decline Ratio

BSE NSE

Advances 558 343

Declines 2149 1482

Unchanged 155 54

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* 11184

MF Flows** 28893

*23

Mar 2018; **22

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)

26 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

431

4.02%

(Nov-17)

• The Ministry of Defence has come out with a draft policy seeking to

promote the domestic defence industry and make India one of the top

five manufacturers of defence platforms and weapons through active

participation of public and private sectors. The policy aims to attain a

turnover and export of Rs. 1,70,000 crore and Rs. 35,000 crore in military

goods and services, respectively, by 2025.

• The commerce ministry has notified exemption from Integrated Goods

and Service Tax (IGST) and compensation cess for procurement under

advance authorisation and Export Promotion Capital Goods (EPCG)

scheme till Oct 1, 2018. EPCG is an export promotion scheme under

which an exporter can import certain amount of capital goods at zero

duty for upgrading technology related with exports. Meanwhile, advance

authorisation is issued to allow duty free import of input, which is

physically incorporated in export product.

• The health minister has announced that the government has decided

to allocate Rs. 10,000 crore initially to implement the Ayushman Bharat-

National Health Protection Mission (AB-NHPM). Also, the health minister

stated that this amount is flexible and will be used to cover costs of

setting up technology systems and verifying entitled beneficiaries in

addition to paying premiums to states that are implementing the scheme

through insurance models.

• According to the Ministry of Housing and Urban Affairs, the

government would complete its target of building 11 million homes

under the Pradhan Mantri Awas Yojna before 2022. The remark comes

amid concerns that the pace of the scheme has slowed down.

• According to the agriculture minister, the government will soon come

out with a policy to ensure that farmers get the support price which is

1.5 times higher than the production cost. The minister added that in the

event prices come down below the minimum support price, the

government will intervene even though the same may hurt the

government exchequer.

Markets for You

• Indian equity markets closed in the red amid heightened concerns of a

trade war after the U.S. President announced tariffs on Chinese imports

worth roughly $50 billion. Meanwhile, decline in banking stocks after the

Central Bureau of Investigation filed two more fraud cases against two

major state-owned lenders negatively impacted the indices.

• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 1.24% and

1.15%, respectively, to close at 32,596.54 and 9,998.05. S&P BSE Mid-

Cap and S&P BSE Small-Cap fell 1.36% and 1.54%, respectively.

• The overall market breadth on BSE was weak with 2,149 scrips

declining and 558 scrips advancing. A total of 155 scrips remained

unchanged.

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

3.31%, followed by S&P BSE Metal that fell 2.89%. S&P BSE Basic

Materials and S&P BSE Bankex fell 2.17% and 2.08%, respectively. S&P

BSE Finance and S&P BSE Capital Goods fell 1.73% and 1.56%,

respectively. Among the gainers, S&P BSE Teck was the major gainer, up

0.32%, followed by S&P BSE Information Technology that grew 0.19%.

• Asian markets closed in the red amid speculation over a trade war after

the U.S. President announced tariffs on Chinese imports, which worth at

least $50 billion. In retaliation, China said it would impose tariffs on up to

$3 billion worth of U.S. goods. Today (As of Mar 26), Asian markets

opened lower following losses in the Wall Street’s last session amid fears

that rising tensions between the U.S. and China could lead to a full-blown

trade war. Both Nikkei and Hang Seng fell 0.95% and 0.14%, respectively

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

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

trade war concerns after U.S. President announced tariffs on at least $50

billion worth of Chinese imports and Beijing outlined plans to introduce

tariffs on U.S. imports.

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

the impact of potential trade war after China said it would impose tariffs

on up to $3 billion worth of U.S. goods in retaliation for the tariffs

announced by the U.S. President.

FII Derivative Trade Statistics 23-Mar

(Rs Cr) Buy

Sell Open Int.

Index Futures 2688.37 2464.08 24053.44

Index Options 111336.20 109232.71 72926.81

Stock Futures 10263.95 9652.73 76059.18

Stock Options 5856.15 5664.98 7836.95

Total 130144.67 127014.50 180876.38

23-Mar Prev_Day

Change

Put Call Ratio (OI) 1.06 1.07 -0.01

Indian Debt Market

Put Call Ratio(Vol) 0.94 0.93 0.01

23-Mar Wk. Ago Mth. Ago

Year Ago

Call Rate 5.93% 5.97% 5.90% 5.92%

CBLO 5.82% 5.29% 5.89% 5.81%

Repo 6.00% 6.00% 6.00% 6.25%

Reverse Repo 5.75% 5.75% 5.75% 5.75%

91 Day T-Bill 6.12% 6.12% 6.19% 5.82%

364 Day T-Bill 6.50% 6.44% 6.61% 6.00%

10 Year Gilt 7.56% 7.56% 7.67% 6.83%

G-Sec Vol. (Rs.Cr) 40602 40873 24927 40405

Currency Market Update

1 Month CP Rate 7.71% 7.60% 6.91% 6.56%

3 Month CP Rate 7.33% 7.31% 7.89% 6.64%

5 Year Corp Bond 7.92% 7.94% 7.98% 7.52%

1 Month CD Rate 7.12% 6.80% 6.25% 6.24%

3 Month CD Rate 7.06% 6.69% 7.24% 6.29%

1 Year CD Rate 7.35% 7.26% 7.52% 6.71%

Commodity Market Update

Currency 23-Mar Prev_Day

Change

USD/INR 65.13 65.06 0.07

GBP/INR 91.96 92.06 -0.11

EURO/INR 80.34 80.37 -0.04

International News

JPY/INR 0.62 0.61 0.01

Commodity 23-Mar Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 65.79 62.28 63.49 46.95

Brent Crude($/bl) 68.62 64.32 66.98 50.06

Gold( $/oz) 1347 1313 1329 1245

Gold(Rs./10 gm) 30700 30299 30390 28870

Source: Thomson Reuters Eikon

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

26 March 2018

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Bond yields remained unchanged as investors preferred to remain on

the sidelines ahead of a meeting, on Mar 24, wherein government will

discuss the borrowing calendar. However, the investors expect

government to ease supply burden.

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

unchanged at 7.56%. During the session, bond yields traded in the range

of 7.52% and 7.56%.

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

Facility (LAF) stood at Rs. 4,580 crore (gross) on Mar 23 compared with

Rs. 5,144 crore on Mar 22. Sale of securities under Reserve Bank of

India’s (RBI) reverse repo window stood at Rs. 28,895 crore on Mar 22.

• Banks borrowed Rs. 23 crore under the central bank’s Marginal

Standing Facility on Mar 22 compared with no borrowings as on Mar 21.

• A report from the Conference Board showed that U.S. leading

economic index came in higher than market expectations and grew 0.6%

in Feb 2018 as against 0.8% increase in Jan 2018. Meanwhile, the

coincident economic index grew 0.3% and the lagging economic index

grew 0.4%.

• According to a report from the Labor Department, U.S. initial jobless

claims edged up to 229,000 for the week ended Mar 17, up 3,000 from

the previous week's level of 226,000. Meanwhile, continuing claims fell

by 57,000 to 1.828 million in the week ended Mar 10.

Markets for You

• Nifty Mar 2018 Futures were at 10003.9 points, a premium of 5.85

points, above the spot closing of 9,998.05. The turnover on NSE’s Futures

and Options segment went up from Rs. 13,65,419.39 crore on Mar 22 to

Rs. 7,84,703.84 crore on Mar 23.

• The Put-Call ratio stood at 0.77 against previous session’s close of 0.82.

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

close of 1.06.

• India VIX moved up 1.95% to 15.5450 from 15.2475 in the previous

trading session.

• Open interest on Nifty Futures stood at 28.76 million as against the

previous session’s close of 28.95 million.

• The Indian rupee rose against the U.S. dollar following greenback sales

by exporters ahead of the financial year-end and IPO-related inflows.

However, fears over looming global trade war capped the gains. The

rupee rose 0.15% to close at 65.01 per dollar from the previous close

65.10.

• The euro rose against the U.S. dollar as the latter weakened due to

concerns that a trade war could hurt global growth. Euro was last seen

trading at $1.2341 compared with the previous close of $1.2300.

• The safe haven appeal of the metal jumped on concerns over

prospective global trade war after the U.S. President signed a

memorandum announcing tariffs on Chinese exports.

• Brent crude prices inched down on concerns over supply glut after

crude production in the U.S. touched a fresh high.

Thank you for

your time.