Markets For You of 10 May 2019 – Nippon India Mutual Fund

10May2019

MarketsforYou

https://www.reliancemutual.com

GlobalIndices

GlobalIndices 09‐May Prev_Day Abs.Change

%Change

DowJones 25,828 25,967 ‐139 ‐0.54

Nasdaq 7,911 7,943 ‐33 ‐0.41

FTSE 7,207 7,271 ‐64 ‐0.87

Nikkei 21,402 21,603 ‐200 ‐0.93

HangSeng 28,311 29,003 ‐692 ‐2.39

IndianIndices 09‐May Prev_Day Abs.Change

%Change

S&PBSESensex 37,559 37,789 ‐230 ‐0.61

Nifty50 11,302 11,359 ‐58 ‐0.51

Nifty100 11,416 11,471 ‐55 ‐0.48

NiftyBank 28,885 28,994 ‐110 ‐0.38

SGXNifty 11,317 11,408 ‐92 ‐0.80

S&PBSEPower 1,898 1,922 ‐24 ‐1.24

S&PBSESmallCap 14,076 14,129 ‐53 ‐0.38

S&PBSEHC 13,818 13,856 ‐38 ‐0.28

Date P/E Div.Yield P/E Div.Yield

9‐May 28.15 1.23 28.24 1.16

MonthAgo 28.22 1.13 29.13 1.13

YearAgo 23.47 1.15 26.66 1.19

Nifty50Top3Gainers

Company 09‐May Prev_Day

%Change

ZeeEnte. 358 332 7.93

YesBank 170 161 5.94

BajajFinance 2971 2921 1.71

Nifty50Top3Losers DomesticNews

Company 09‐May Prev_Day

%Change

RIL 1256 1299 ‐3.31

BPCL 368 380 ‐3.09

BhartiAirtel 315 325 ‐2.79

AdvanceDeclineRatio

BSE NSE

Advances 1034 753

Declines 1437 1044

Unchanged 152 109

InstitutionalFlows(Equity)

Description(Cr) YTD

FIIFlows* 70026

MFFlows** ‐1207

May2019;**8

May2019

EconomicIndicator

YoY(%) Current YearAgo

CPI

2.86%

(Mar‐19)

4.28%

(Mar‐18)

IIP

0.10%

(Feb‐19)

6.90%

(Feb‐18)

GDP

6.60%

(Dec‐18)

7.70%

(Dec‐17)

10May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)

7.00%

(Sep‐18)

QuarterAgo

Inflow/Outflow

457

‐768

2.11%

(Dec‐18)

• Indian equity markets fell for the seventh consecutive session as U.S.‐

China trade developments dominated sentiment. The two countries have

gone back to exchange of strong words with the U.S. President saying he

would be happy to increase tariff on Chinese imports and blaming China

for breaking the ‘deal’. Media reports said China plans to retaliate with

countermeasures.

• Key benchmark indices S&P BSE Sensex and Nifty 50 lost 0.61% and

0.51%, respectively, to close at 37,558.91 and 11,301.80, respectively. S&P

BSE Mid‐Cap and S&P BSE Small Cap lost 0.19% and 0.38%, respectively.

• On the BSE sectoral front, S&P BSE Teck was the major gainer, up 0.44%,

followed by S&P BSE Information Technology and S&P BSE Consumer

Durables,down0.43%and0.3%,respectively.S&PBSERealtyandS&PBSE

Fast Moving Consumer Goods fell 0.27% and 0.1%, respectively. S&P BSE

Energy was the major loser, down 2.63%, followed by S&P BSE Metal and

S&P BSE Telecom, down 1.49% and 1.3%, respectively. S&P BSE Power and

S&P BSE Oil & Gas lost 1.24% and 1.11%, respectively.

• According to a major domestic rating agency, crisis at non‐bank lenders

has led securitisation volumes to reach an all‐time high of almost Rs. 2

lakh crore in fiscal year 2018‐19. This happened as liquidity‐starved

entities sold portfolios. The volumes of securitisation, where a lender sells

a portfolio of future receivables, surged 140% to touch the Rs. 1.99 lakh

crore mark. The market was buoyant in the second half of the fiscal,

driven by the liquidity crisis which forced non‐bank finance companies and

housing finance companies to rely heavily on portfolio loan sell‐downs to

raise funds.

• The finance ministry has started preparing presentation of the full

Budget 2019‐20 by a new government in Jul 2019. The ministry has sent

out communications to various industry bodies and other stakeholders

inviting their suggestions on direct and indirect taxes related to various

sectors. Observers said they expect changes in custom rates and direct

taxes as the Goods and Services Tax (GST) has removed most indirect

taxes from the purview of the budget.

• The tax department has asked builders to choose before May 10, 2019,

the new Goods & Services Tax (GST) rate for ongoing realty projects. The

concessional rate, which came into effect from Apr 1, 2019, was set at 1%

for affordable houses and 5% for others, from the earlier 8% and 12%,

respectively. Developers of under‐construction projects could opt for the

new or previous rate, but now they have been asked to exercise this

option before May 10 in the prescribed format. This means, two people

buying identical flats in the same apartment complex but in different

buildings or towers could technically pay different GST rates. If the

developer does not choose the rates before May 10, then the new GST

rates will start automatically, the Central Board of Indirect Taxes and

Customs said. The rules of the concessional scheme, including transitional

ones, will apply, it said.

• According to media reports, the Ministry of Corporate Affairs on the

basis of a report from Registrar of Companies is examining alleged

diversion of funds from the books of Jet Airways Ltd. The Registrar of

Companies, which is a wing of Ministry of Corporate Affairs, has found

instances of Companies Act violation and some unexplained funds trail

while examining Jet's books of accounts.

• Tata Motors has denied media reports of sale of Jaguar Land Rover to

French automotive group PSA could be imminent.

• Asian equity markets shares declined as investors awaited with bated

breath the result of U.S.‐China’s latest meeting, scheduled for May 9 and

10, 2019. The meeting has become crucial in the midst of comments by

the U.S. President that he would be happy to keep tariffs on Chinese

imports. At the same time, there are media reports that Beijing has

announced it would take "necessary countermeasures." Today (as of May

10), Asian markets opened on a higher note despite increased U.S. tariffs

on Chinese goods due later in the day. Both Nikkei and Hang Seng were

trading higher 0.73% and 1.63%, respectively (as at 8 a.m. IST).

• As per the last close, European markets fell on trade tensions between

the U.S. and China after U.S. President commented that China "broke the

deal" in negotiations. Also worries about Brexit weighed on the market.

The U.S. and Chinese officials are scheduled to meet for negotiations on

Friday.

• As per the last close, U.S markets dropped amid renewed trade concerns

following comments on Wednesday from the U.S. president ahead of two

days of U.S.‐China trade talks in Washington.

MarketsforYou

FIIDerivativeTradeStatistics 09‐May

(RsCr) Buy Sell OpenInt.

IndexFutures 2823.12 3952.05 21680.12

IndexOptions 259310.51 260048.56 62373.99

StockFutures 12209.32 13165.62 83559.28

StockOptions 4173.95 4293.67 5968.21

Total 278516.90 281459.90 173581.60

09‐May Prev_Day Change

PutCallRatio(OI) 1.02 1.04 ‐0.02

IndianDebtMarket

PutCallRatio(Vol) 0.78 0.69 0.08

09‐May Wk.Ago Mth.Ago YearAgo

CallRate 5.98% 6.06% 5.97% 5.91%

T‐Repo 5.97% 5.90% 5.95% NA

Repo 6.00% 6.00% 6.00% 6.00%

ReverseRepo 5.75% 5.75% 5.75% 5.75%

91DayT‐Bill 6.43% 6.44% 6.17% 6.27%

364DayT‐Bill 6.51% 6.52% 6.32% 6.63%

10YearGilt 7.40% 7.39% 7.37% 7.71%

G‐SecVol.(Rs.Cr) 27633 22988 33552 22921

CurrencyMarketUpdate

FBILMIBOR* 6.05% 6.20% 6.05% 6.04%

3MonthCPRate 7.70% 7.70% 6.95% 7.80%

5YearCorpBond 8.49% 8.46% 8.44% 8.48%

1MonthCDRate 6.92% 7.17% 6.61% 6.66%

3MonthCDRate 7.27% 7.40% 6.72% 7.11%

1YearCDRate 7.53% 7.61% 7.19% 7.89%

CommodityMarketUpdate

Currency 09‐May Prev_Day Change

USD/INR 69.87 69.60 0.27

GBP/INR 90.99 90.90 0.09

EURO/INR 78.25 78.01 0.24

InternationalNews

JPY/INR 0.64 0.63 0.00

Commodity 09‐May WkAgo Mth.Ago YearAgo

NYMEXCrude($/bl) 61.53 61.70 64.00 71.11

BrentCrude($/bl) 70.66 70.70 71.66 78.59

Gold($/oz) 1284 1270 1304 1312

Gold(Rs./10gm) 31730 31310 31886 31143

Source:ThomsonReutersEikon

*Asonprevioustradingday

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

10May2019

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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

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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

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DerivativeStatistics‐NiftyOptions



Disclaimer:

DerivativesMarket

DebtWatch

CurrencyMarket

CommodityPrices

• Nifty May 2019 Futures were at 11,334.80, a premium of 33.00 points,

above the spot closing of 11,301.80. The turnover on NSE’s Futures and

Options segment rose to Rs. 21,48,919.95 crore on May 9, 2019,

compared with Rs. 13,24,483.37 crore on May 8, 2019.

• The Put‐Call ratio stood at 0.71 compared with the previous session’s

close of 0.81.

• The Nifty Put‐Call ratio stood at 1.02 compared with the previous

session’s close of 1.04.

• Open interest on Nifty Futures stood at 19.22 million as against the

previous session’s close at 20.44 million.

• Bond yields rose due to the depreciation of the domestic currency.

Market participants remain wary of the escalating trade tension between

U.S. and China. They are closely tracking the two‐day trade discussion at

Washington.

• Yield on the 10‐year benchmark paper (7.26% GS 2029) rose 2 bps to

7.40% compared with the previous session’s close of 7.38% after trading

in a range of 7.37% to 7.40%.

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

Facility (LAF) stood at Rs. 16,461 crore (gross) on May 9, 2019, compared

with Rs. 6,031 crore (gross) as on May 8, 2019. Sale of securities under

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 13,453

crore on May 8, 2019.

• Banks borrowed Rs. 50 crore under the central bank’s Marginal

Standing Facility on May 8, 2019 compared with borrowings of Rs. 600

crore on May 7, 2019.

• The Indian rupee depreciated against the greenback as investors’

appetite for riskier assets have been dented by the escalating trade

conflict between U.S. and China. The rupee closed at 69.93 a dollar, down

0.32% compared with the previous close of 69.71.

• The euro declined against the greenback over U.S.‐China trade war

uncertainty as U.S. threatens to hike tariffs on $200 billion worth of

Chinese imports. The euro was last seen trading at 1.1186, down 0.04%

compared with the previous close of 1.1191.

• Gold prices continued to surge on escalating U.S.‐China trade conflict.

Gold prices were last seen trading at $1,283.45 per ounce compared with

the previous close of $1,280.53.

• Brent crude prices lost its upward momentum on tension over

escalating concerns over U.S.‐China trade feud.

• The National Bureau of Statistics data showed China's consumer price

inflation rose to a six‐month high in Apr 2019 and producer prices

increased more than expected at the fastest pace in four months. The

consumer price index rose 2.5% YoY in Apr, following a 2.3% increase in

Mar 2019, in line with expectations. The latest inflation was the highest

since Oct 2018.

• Official customs data showed China's exports fell unexpectedly in Apr

2019, while imports rebounded. This comes ahead of crucial trade talks

between the country and the U.S. Exports fell 2.7% YoY in Apr, after a

14.2% rise in Mar 2019. Imports rose 4.0% annually in Apr, reversing a

7.6% decline in the previous month. The trade surplus was $13.84 billion

in Apr.

MarketsforYou

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