08 May 2018
Markets for You
Global Indices
Global Indices 07-May Prev_Day Abs. Change
% Change
#
Dow Jones 24,357 24,263 95 0.39
Nasdaq 7,265 7,210 56 0.77
FTSE Closed 7,567 NA NA
Nikkei 22,467 Closed NA NA
Hang Seng 29,994 29,927 68 0.23
Indian Indices 07-May Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 35,208 34,915 293 0.84
Nifty 50 10,716 10,618 97 0.92
Nifty 100 11,085 10,987 99 0.90
Nifty Bank 25,852 25,645 207 0.81
SGX Nifty 10,738 10,685 53 0.49
S&P BSE Power 2,202 2,191 11 0.50
S&P BSE Small Cap 18,092 17,991 100 0.56
S&P BSE HC 13,771 13,845 -73 -0.53
Date P/E Div. Yield P/E Div. Yield
7-May 23.46 1.15 26.60 1.20
Month Ago 23.24 1.15 25.65 1.24
Year Ago 22.58 1.39 23.59 1.24
Nifty 50 Top 3 Gainers
Company 07-May Prev_Day
% Change
#
GAIL 344 330 4.26
M&M 886 854 3.66
Axis Bank 536 520 3.04
Nifty 50 Top 3 Losers Domestic News
Company 07-May Prev_Day
% Change
#
Lupin 774 796 -2.73
Dr.Reddy 2070 2107 -1.76
TCS 3421 3481 -1.72
Advance Decline Ratio
BSE NSE
Advances 1405 970
Declines 1272 834
Unchanged 164 86
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* 5916
MF Flows** 46287
*7
th
May 2018; **4
th
May 2018
Economic Indicator
YoY(%) Current Year Ago
CPI
4.28%
(Mar-18)
3.89%
(Mar-17)
IIP
7.10%
(Feb-18)
0.80%
(Feb-17)
GDP
7.20%
(Dec-17)
6.80%
(Dec-16)
08 May 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
Nifty
8.50%
(Nov-17)
6.50%
(Sep-17)
Quarter Ago
Inflow/Outflow
294
-1579
5.21%
(Dec-17)
• Positive cues from global peers helped Indian equity markets to close in
the green. Weaker than expected U.S. jobs data for Apr 2018 eased fears
of faster rate hikes by the U.S. Federal Reserve, thereby helping global
markets. Announcement of purchase of government bonds worth up to
Rs. 10,000 crore on May 17, 2018 added to the gains.
• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.84% and
0.92% to close at 35,208.14 and 10,715.50, respectively. S&P BSE Mid-Cap
and S&P BSE Small-Cap grew 0.55% and 0.56%.
• On the BSE sectoral front, S&P BSE Metal was the major gainer, up
1.68%, followed by S&P BSE Oil & Gas that grew 1.64%. S&P BSE Realty
and S&P BSE Energy grew 1.51% and 1.47%, respectively. S&P BSE
Healthcare and S&P BSE Information Technology fell 0.53% and 0.01%,
respectively.
• Among the 31-stock sensitive Sensex pack, Mahindra & Mahindra was
the major gainer, up 3.68%, followed by Axis Bank and Tata Steel that
grew 2.82% and 2.52%, respectively. ICICI Bank grew 2.30% and & State
Bank of India and Reliance grew 1.88% each.
• According to the media reports, the Reserve Bank of India (RBI) would
soon exempt banks from valuing their government bond investments that
are a part of the regulatory required Liquidity Coverage Ratio (LCR) at the
market value. This would likely give banks more flexibility in accounting
their losses in government securities and help them to save hundreds of
crores in provisions and finally boosting their profits.
• Labour ministry is planning to run and administer its flagship provident
fund and medical insurance in a public-private-partnership mode. These
schemes are currently run by the Employees Provident Fund Organisation
and the Employee State Insurance Corporation. The ministry expects that
private intermediaries would be needed as the schemes have increased
from its current coverage by 10 times to around 50 crore workers. The
proposed intermediate agencies will work on behalf of the state social
security boards and would work in areas of fund management, point of
presence, service delivery, and benefit disbursement.
• According to the Asian Development Bank (ADB), if India's projected
GDP growth remains stable over 7%, then the size of the economy can
double within a decade. It has further mentioned that the country will
remain as the fastest growing Asian nation with 7.3% growth in 2018-19,
and 7.6% in 2019-20 and the economy should put more focus on
increasing domestic demand by reducing the income inequality.
• Cognizant posted fall in net profit by 6.64% to $520 million in the
quarter ended Mar 2018 as per GAAP standards as against $557 million
profit recorded in Mar 2017. The company’s revenue grew 10.3% YoY to
$3.91 billion as against $3.55 billion in the same quarter last year. The
company projects revenue to be in the range of $4 billion to $4.04 billion
in the second quarter of 2018.
• Nestle has announced to pay $7.15 billion to Starbucks Corp. in order to
sell its products in retail and food-service channels. Both the companies
are joining hands to revive their coffee empires.
Markets for You
• Asian markets traded in mixed following lower-than-expected U.S. non-
farm payroll data. Optimism over U.S.-China trade talk, strong crude oil
prices and positive cues from U.S. market over the weekend also helped
sentiments. However, setback has witnessed on U.S.’s pending decision to
re-impose sanctions on Iran. Today (As of May 08), Asian markets opened
in green following gains in the U.S. Wall Street. Both Nikkei and Hang Seng
rose 0.31% and 0.92%, respectively (as at 8.a.m. IST).
• As per the last close, European markets ended higher following strong
corporate earnings from few companies and deal between two major
coffee companies. Rise in crude oil prices and gains in the U.S. Wall Street
further added to the positive sentiments.
• As per the last close, U.S markets ended higher as it continued to benefit
from decline in the U.S. unemployment rate in Apr 2018 and increase in
crude oil prices. However, gains were capped after reports that the U.S.
President will announce his decision on the Iran deal on May 8.
FII Derivative Trade Statistics 07-May
(Rs Cr) Buy
Sell Open Int.
Index Futures 1510.09 2003.10 14050.38
Index Options 41059.22 39942.85 61422.43
Stock Futures 8655.97 8911.25 80893.70
Stock Options 5107.03 5062.17 6064.23
Total 56332.31 55919.37 162430.74
07-May Prev_Day
Change
Put Call Ratio (OI) 1.56 1.49 0.07
Indian Debt Market
Put Call Ratio(Vol) 0.98 0.98 0.00
07-May Wk. Ago Mth. Ago
Year Ago
Call Rate 5.94% 6.02% 5.89% 6.02%
CBLO 6.00% 5.53% 5.79% 6.07%
Repo 6.00% 6.00% 6.00% 6.25%
Reverse Repo 5.75% 5.75% 5.75% 6.00%
91 Day T-Bill 6.22% 6.19% 6.08% 6.23%
364 Day T-Bill 6.48% 6.45% 6.45% 6.43%
10 Year Gilt 7.62% 7.77% 7.17% 6.94%
G-Sec Vol. (Rs.Cr) 25757 23708 55428 39811
Currency Market Update
FBIL MIBOR 6.00% 6.00% 6.00% 6.24%
3 Month CP Rate 7.70% 7.40% 6.85% 6.76%
5 Year Corp Bond 8.42% 8.45% 7.89% 7.51%
1 Month CD Rate 6.65% 6.69% 6.11% 6.21%
3 Month CD Rate 7.16% 7.07% 6.66% 6.42%
1 Year CD Rate 7.76% 7.71% 7.12% 6.71%
Commodity Market Update
Currency 07-May Prev_Day
Change
USD/INR 67.11 66.77 0.34
GBP/INR 90.85 90.58 0.26
EURO/INR 80.12 79.97 0.15
International News
JPY/INR 0.61 0.61 0.00
Commodity 07-May Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 70.69 68.51 62.02 46.18
Brent Crude($/bl) Closed 76.66 65.70 46.69
Gold( $/oz) 1314 1315 1333 1228
Gold(Rs./10 gm) 31191 31033 30396 28227
Source: Thomson Reuters Eikon
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
08 May 2018
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Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
• Nifty May 2018 Futures were at 10739.85 points, a premium of 24.35
points, above the spot closing of 10,715.50. The turnover on NSE’s
Futures and Options segment went up to Rs. 3,69,960.32 crore on May 5
from Rs. 3,67,606.45 crore on May 4.
• The Put-Call ratio stood at 0.99 against previous session’s close of 0.92.
• The Nifty Put-Call ratio stood at 1.56 against the previous session’s
close of 1.49.
• Open interest on Nifty Futures stood at 24.74 million as against the
previous session’s close of 24.49 million.
• Bond yields fell following surprise announcement by the government
to conduct an open market purchase of bonds for an aggregate amount
of Rs. 100 billion on May 17. However, significant fall in Indian rupee
capped the gains.
• Yield on the 10-year benchmark paper (7.17% GS 2028) fell 11 bps to
close at 7.62% from the previous close of 7.73%. During the session,
bond yields traded in the range of 7.55% and 7.65%.
• Banks’ borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 14,502 crore (gross) on May 07 compared with
Rs. 4,810 crore on May 04. Sale of securities under Reserve Bank of
India’s (RBI) reverse repo window stood at Rs. 5,366 crore on May 04.
• Banks borrowed Rs. 430 crore under the central bank’s Marginal
Standing Facility on May 04 compared with Rs. 160 crore borrowed on
May 03.
• The Indian rupee weakened against the U.S. dollar as market
sentiment dampened following increase in global crude oil prices.
Greenback demand from corporates also hurt the domestic currency.
However, dollar sales by the central bank restricted further losses.
• Euro fell against the U.S. dollar as market participants perceived that
the U.S. Federal Reserve would aggressively increase interest rates in
2018.
• Gold prices inched down as the U.S. dollar gained strength against the
euro.
• Brent crude prices traded at elevated levels on concerns of re-
imposition of U.S. sanctions on Iran, which may disrupt oil supply from
the Middle-East region.
• According to data from Destatis, Germany factory orders fell 0.9%
MoM in Mar 2018 as against 0.2% fall in Feb 2018. The fall in factory
orders came due to weak foreign demand. However, on a yearly basis,
factory orders rose 3.1% against 3% rise in Feb 2018.
• According to data from IHS Markit, Germany’s construction Purchasing
Managers' Index rose to 50.9 in Apr 2018 from 47.0 in Mar 2018. The
month reading of Apr recovered from previous month that witnessed
disruption to building work due to severe weather conditions.
• According to data from Sentix, eurozone’s investor sentiment index
unexpectedly decreased for the fourth consecutive month to 19.2 in
May 2018 from 19.6 in Apr 2018. Similarly, the current situation index
marginally fell to 42.8 in Apr from 43.0 in May.
Markets for You
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