21 May 2018
Markets for You
Global Indices
Global Indices 18-May Prev_Day Abs. Change
% Change
#
Dow Jones 24,715 24,714 1 0.00
Nasdaq 7,354 7,382 -28 -0.38
FTSE 7,779 7,788 -9 -0.12
Nikkei 22,930 22,838 92 0.40
Hang Seng 31,048 30,942 106 0.34
Indian Indices 18-May Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 34,848 35,149 -301 -0.86
Nifty 50 10,596 10,683 -86 -0.81
Nifty 100 10,908 11,007 -99 -0.90
Nifty Bank 25,876 26,074 -198 -0.76
SGX Nifty 10,573 10,682 -109 -1.02
S&P BSE Power 2,106 2,136 -29 -1.38
S&P BSE Small Cap 17,327 17,612 -285 -1.62
S&P BSE HC 13,018 13,292 -274 -2.06
Date P/E Div. Yield P/E Div. Yield
18-May 23.49 1.18 26.27 1.21
Month Ago 23.60 1.14 26.13 1.22
Year Ago 23.21 1.31 24.91 1.22
Nifty 50 Top 3 Gainers
Company 18-May Prev_Day
% Change
#
Bajaj Finance 2150 2067 4.02
Tech Mahindra 693 676 2.54
HUL 1606 1570 2.29
Nifty 50 Top 3 Losers Domestic News
Company 18-May Prev_Day
% Change
#
Cipla 533 554 -3.74
Wipro 269 278 -3.40
ICICI Bank 286 296 -3.34
Advance Decline Ratio
BSE NSE
Advances 719 467
Declines 1915 1335
Unchanged 124 69
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* 4016
MF Flows** 51583
*18
th
May 2018; **14
th
May 2018
Economic Indicator
YoY(%) Current Year Ago
CPI
4.58%
(Apr-18)
2.99%
(Mar-17)
IIP
4.40%
(Mar-18)
4.10%
(Mar-17)
GDP
7.20%
(Dec-17)
6.80%
(Dec-16)
21 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
Sensex
7.10%
(Dec-17)
6.50%
(Sep-17)
Quarter Ago
Inflow/Outflow
693
-412
5.07%
(Jan-17)
• The market regulator Securities and Exchange Board of India (SEBI) has
proposed a uniform methodology to determine pricing of non-traded
and thinly traded non-convertible debt securities. The uniform pricing
methodology would provide prices on daily basis and may be followed by
all the regulated entities for valuing their corporate bond portfolio. As
per the current practice, pricing of corporate bonds varies for different
classes of regulated entities and this impacts trading in the secondary
market.
• The Reserve Bank of India (RBI) has issued detailed guidelines on Net
Stable Funding Ratio (NSFR), which will help banks maintaining a stable
funding profile considering their assets and off-balance sheet activities.
During the recession that started in 2007, the Basel Committee on
Banking Supervision had proposed certain reforms to strengthen global
capital and liquidity regulations. The reforms aimed at promoting a more
resilient banking sector. The detailed guidelines issued on NFSR are in
line with global norms prescribed by the Basel Committee.
• SEBI has extended the deadline for setting up a new system for
depositories to monitor the foreign investment limits in listed Indian
companies till Jun 1, 2018. This marks extension for the second time. The
extension was done after considering representations from various
quarters.
• Commercial vehicle major Ashok Leyland’s standalone net profit rose
40% YoY to Rs. 667 crore in the Mar quarter of FY2018. Total income
increased 23.79% YoY to Rs. 8,830 crore. Sales volume in medium and
heavy commercial vehicle including exports rose 15% YoY and light
commercial vehicle increased 59%.
• Two wheeler major Bajaj Auto’s consolidated net profit rose 36.32%
YoY to Rs. 1,175 crore in the Mar quarter of 2018, due to robust sales
across segments. Total revenue went up to 30% YoY to Rs. 6,773 crore.
Sales volumes stood at 10.45 lakh units in the Mar quarter from 7.88
units in the year-ago period.
Markets for You
• Most of the Asian markets traded up on weaker yen and rising crude oil
prices. However, cautious note was witnessed due to concerns over
trade talks between the U.S. and China after a report stated that China
has offered a $200 billion reduction in annual trade surplus to the U.S.
Today (as of May 21), Asian markets opened higher after the analysts
regarded weekend developments in U.S.-China talks as positive. Hang
seng and Nikkei grew 1.03% and 0.42%, respectively (as at 8.a.m. IST).
• As per the last close, European markets ended lower following
uncertainty about the outcome of trade talks between the U.S. and
China. Decline in basic resources stocks after a mining major plunged on
reports that it may face investigation by the U.K.'s Serious Fraud Office
further weighed on the indices.
• As per the last close, U.S markets ended on a mixed note. Investors
preferred to remain on the sidelines following uncertainty about the
outcome of trade talks between the U.S. and China. Also, investors
seemed reluctant to make more significant moves amid no major event
on the U.S. economic front.
• Indian equity markets ended the last session of the week in the red as
uncertainty over the formation of government in Karnataka weighed on
investor sentiment. In the latest development on the matter, the
Supreme Court has directed the ruling party leader and the state's new
chief minister to conduct the floor test on May 19. Global cues too had a
bearing on the buying interest with markets participants maintaining a
cautious stance over development in U.S.-China trade negotiations.
• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.88% and
0.81% to close at 34,848.30 and 10,596.40, respectively. S&P BSE Mid-
Cap and S&P BSE Small-Cap slipped 1.47% and 1.62%, respectively.
• The market breadth on BSE was weak with 1,915 scrips declining and
719 scrips advancing. A total of 124 scrips remained unchanged.
• On the BSE sectoral front, barring S&P BSE FMCG, all the indices closed
in the red. S&P BSE Capital Goods was the major loser, down 3.05%,
followed by S&P BSE Industrials and S&P BSE Metal, which fell 2.54% and
2.36%, respectively. S&P BSE Healthcare and S&P BSE Auto slipped 2.06%
and 1.82%, respectively.
FII Derivative Trade Statistics 18-May
(Rs Cr) Buy
Sell Open Int.
Index Futures 2135.86 2165.53 18981.38
Index Options 124190.80 121499.23 74045.46
Stock Futures 9825.16 10068.70 85156.37
Stock Options 6928.69 6895.58 9070.62
Total 143080.51 140629.04 187253.83
18-May Prev_Day
Change
Put Call Ratio (OI) 1.36 1.46 -0.10
Indian Debt Market
Put Call Ratio(Vol) 0.92 0.90 0.02
18-May Wk. Ago Mth. Ago
Year Ago
Call Rate 5.97% 5.92% 5.88% 6.05%
CBLO 5.98% 5.36% 5.88% 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 6.30% 6.25% 6.10% 6.20%
364 Day T-Bill 6.80% 6.66% 6.51% 6.47%
10 Year Gilt 7.83% 7.73% 7.54% 6.67%
G-Sec Vol. (Rs.Cr) 37693 19290 23991 49329
Currency Market Update
FBIL MIBOR 6.04% 6.03% 6.00% 6.25%
3 Month CP Rate 8.30% 7.95% 6.90% 6.78%
5 Year Corp Bond 8.56% 8.50% 8.21% 7.45%
1 Month CD Rate 6.90% 6.64% 6.46% 6.32%
3 Month CD Rate 7.70% 7.45% 6.80% 6.45%
1 Year CD Rate 8.14% 7.94% 7.36% 6.85%
Commodity Market Update
Currency 18-May Prev_Day
Change
USD/INR 67.96 67.72 0.24
GBP/INR 91.88 91.65 0.23
EURO/INR 80.28 79.89 0.39
International News
JPY/INR 0.61 0.61 0.00
Commodity 18-May Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 71.18 70.64 68.39 49.31
Brent Crude($/bl) 79.37 78.36 74.32 51.35
Gold( $/oz) 1292 1318 1349 1247
Gold(Rs./10 gm) 30921 31379 31276 28871
Source: Thomson Reuters Eikon
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
21 May 2018
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Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
• Bond yields fell amid speculations that the government may take steps
to revive the domestic bond market.
• Yield on the 10-year benchmark paper (7.17% GS 2028) fell 5 bps to
close at 7.83% from the previous close of 7.88%. During the session,
bond yields traded in the range of 7.76% and 7.93%.
• Banks’ borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 12,419 crore (gross) on May 18 compared with
Rs. 3,955 crore on May 17. Sale of securities under Reserve Bank of
India’s (RBI) reverse repo window stood at Rs. 1,984 crore on May 17.
• Banks borrowed Rs. 250 crore under the central bank’s Marginal
Standing Facility on May 17 as against borrowing of Rs. 500 crore on
May 16.
• U.S. leading economic index came in line with market expectations
and grew 0.4% in Apr 2018 that remained unchanged as against
upwardly revised gain in Mar 2018. Improvements by the labor market
components partly led to surge in leading economic index. Meanwhile,
the coincident economic index surged 0.3% in Apr as against a gain of
0.2% in Mar.
• According to a report from the Labor Department, U.S. initial jobless
claims surged 222,000 for the week ended May 12, 2018, up 11,000
from the previous week's level of 211,000. Meanwhile, continuing
claims fell by 87,000 to 1.707 million for the week ended May 5, 2018.
Markets for You
• Nifty May 2018 Futures were at 10,597.05 points, a premium of 0.65
points, above the spot closing of 10,596.40. The turnover on NSE’s
Futures and Options segment went down to Rs. 5,32,191.61 crore on
May 18 from Rs. 14,32,762.88 crore on May 17.
• The Put-Call ratio stood at 0.85 against previous session’s close of 0.87.
• The Nifty Put-Call ratio stood at 1.36 against the previous session’s
close of 1.46.
• India VIX moved up 4.68% to 14.0350 from 13.4075 in the previous
trading session.
• Open interest on Nifty Futures stood at 25.53 million as against the
previous session’s close at 24.90 million.
• The Indian rupee fell against the U.S. dollar following increase in global
crude oil prices and U.S. Treasury yields. However, greenback sales by
few state-run banks restricted the losses. The rupee fell 0.45% to close at
68.01 per dollar from the previous close of 67.70.
• The euro fell against the greenback as political uncertainty in Italy
continued to weigh investor sentiment. Euro was last seen trading at
$1.1757, down 0.31% compared with its previous close $1.1793.
• Gold prices traded lower as rising bond yield triggered speculation over
faster pace of rate hike by the U.S. Federal Reserve.
• Brent crude prices remained above the $80 per barrel level as concerns
over U.S. sanctions against Iran, ongoing economic crisis in Venezuela
and strong demand continued to support prices.
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