23 May 2018
Markets for You
Global Indices
Global Indices 22-May Prev_Day Abs. Change
% Change
#
Dow Jones 24,834 25,013 -179 -0.72
Nasdaq 7,378 7,394 -16 -0.21
FTSE 7,877 7,859 18 0.23
Nikkei 22,960 23,002 -42 -0.18
Hang Seng Closed 31,234 NA NA
Indian Indices 22-May Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 34,651 34,616 35 0.10
Nifty 50 10,537 10,517 20 0.19
Nifty 100 10,853 10,815 38 0.35
Nifty Bank 25,778 25,751 27 0.10
SGX Nifty 10,540 10,508 32 0.30
S&P BSE Power 2,087 2,084 3 0.14
S&P BSE Small Cap 17,057 16,946 111 0.65
S&P BSE HC 12,830 12,686 143 1.13
Date P/E Div. Yield P/E Div. Yield
22-May 23.76 1.17 26.13 1.22
Month Ago 23.59 1.14 26.22 1.21
Year Ago 22.54 1.31 24.94 1.22
Nifty 50 Top 3 Gainers
Company 22-May Prev_Day
% Change
#
Dr.Reddy 2010 1893 6.16
Tata Motors 308 296 3.99
SBI 254 244 3.87
Nifty 50 Top 3 Losers Domestic News
Company 22-May Prev_Day
% Change
#
Indian Oil 161 165 -2.82
Ultratech Cem 3756 3852 -2.51
Bharti Infratel 316 322 -1.82
Advance Decline Ratio
BSE NSE
Advances 1405 1029
Declines 1219 766
Unchanged 145 73
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* 3302
MF Flows** 53132
*22
nd
May 2018; **18
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)
23 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
-23
-438
5.07%
(Jan-17)
• Indian Equity markets witnessed muted growth. Buying interest in PSU
banking, auto and metal stocks with easing concerns over trade war
between U.S. and China pushed the benchmark indices higher. Rising oil
prices and higher U.S. bond yields along with ongoing uncertainty over
government formation in Karnataka in the domestic front continued to
be a drag for the markets. Weak cues from Asian markets played spoil
sport.
• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.10% and
0.19% to close at 34,651.24 and 10,536.70, respectively. S&P BSE Mid-
Cap and S&P BSE Small-Cap grew 0.65% each.
• On the BSE sectoral front, S&P BSE Oil & Gas was the major loser, down
0.41%, followed by S&P BSE Energy that fell 0.28%. S&P BSE FMCG and
S&P BSE Utilities fell 0.1% and 0.09%, respectively. S&P BSE Auto was the
major gainer, up 1.73% followed by S&P BSE Metal and S&P BSE Realty
that grew 1.58% and 1.26%, respectively.
• According to the vice-chairman of NITI Aayog, Indian economy is
expected to achieve 9% sustainable growth rate by 2022 following the
reform measures like GST, demonetisation and the Insolvency and
Bankruptcy Code (IBC). He has also added that the government has
taken pilot projects to double the income of farmers.
• The government of India has decided to expand the pilot project
“Digital Village” or the “DigiGaon” from 6 villages to 700 villages across
the country by end of 2018. This initiative by the Prime Minister tries to
connect villages with Wi-Fi, provide digital literacy to villagers and assist
in entrepreneurship opportunities. This initiative will allow villagers to
access quality services like telemedicine, education, and skills with the
help of digital technologies.
• As per media reports, the central government’s capital expenditure
(capex) surged 48% to Rs. 430 billion in Apr 2018 as against Rs. 290
billion in Apr 2017 due to second consecutive year of an advanced
budget. As per reports, the beneficiaries of increased capex were
ministries of defence, railways and road transport. However, lower
carryovers led to reduced revenue expenditure for the central
government.
• Dr. Reddy’s Laboratories reported a profit of Rs. 302.20 crore for the
quarter ended Mar 31, 2018, down 3% YoY from Rs. 312.50 crore in the
previous year period. Revenues came in at Rs. 3,534.90 crore as against
Rs. 3,554.20 crore in the year-ago period.
• State Bank of India (SBI) posted a loss of Rs. 77.18 billion in the quarter
ended Mar 31, 2018 as against a profit of Rs. 28.14 billion in the year-ago
period. The loss reflects lending of huge money as provision against its
stressed loans. Provisions for non-performing assets came in at Rs.
240.80 billion as against Rs. 109.93 billion in the year-ago period.
• Tata Steel announced that it will raise Rs. 165 billion through debt
instruments to finance Rs. 325 billion acquisition of Bhushan Steel Ltd. It
stated that the remaining amount will be raised through internal
resources.
• Asian markets largely remained weak with investors maintaining a
cautious stance on the political developments in Italy. Chinese markets
closed flat as gains in healthcare and telecom stocks were offset by
declines in real estate firms. Today (as of May 23), Asian markets opened
lower following U.S. President’s statement with regards to dissatisfaction
on trade talks between U.S. and China. Nikkei and Hang seng fell 1.31%
and 0.76%, respectively (as at 8.a.m. IST).
• As per the last close, European markets ended higher after China stated
that it would reduce tariffs on cars and auto parts. Investors continued to
focus on political situation in Italy and on comments from the Bank of
England wherein the governor stated that the slowdown in Q1’18 was
temporary and interest rates are set to rise at a moderate pace.
• As per the last close, U.S markets ended lower after the U.S. President
showed dissatisfaction with trade talks between U.S. and China. Also, the
U.S. President stated it is not sure that summit with North Korea will in
fact take place, thereby weighing on market sentiment.
Markets for You
FII Derivative Trade Statistics 22-May
(Rs Cr) Buy
Sell Open Int.
Index Futures 1625.59 2298.68 21135.54
Index Options 79820.41 78040.12 73354.88
Stock Futures 9929.40 10449.68 83622.60
Stock Options 8722.87 8653.23 9613.41
Total 100098.27 99441.71 187726.43
22-May Prev_Day
Change
Put Call Ratio (OI) 1.23 1.28 -0.05
Indian Debt Market
Put Call Ratio(Vol) 0.78 0.92 -0.14
22-May Wk. Ago Mth. Ago
Year Ago
Call Rate 5.97% 5.87% 5.97% 6.05%
CBLO 6.01% 5.96% 6.01% 6.06%
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% 6.18% 6.13% 6.22%
364 Day T-Bill 6.82% 6.72% 6.00% 6.14%
10 Year Gilt 7.81% 7.90% 7.72% 6.66%
G-Sec Vol. (Rs.Cr) 23202 27501 43122 42883
Currency Market Update
FBIL MIBOR 6.09% 6.05% 6.01% 6.25%
3 Month CP Rate 8.40% 8.00% 7.05% 6.76%
5 Year Corp Bond 8.60% 8.57% 8.42% 7.42%
1 Month CD Rate 6.82% 6.62% 6.56% 6.29%
3 Month CD Rate 7.70% 7.45% 6.79% 6.43%
1 Year CD Rate 8.17% 7.90% 7.43% 6.84%
Commodity Market Update
Currency 22-May Prev_Day
Change
USD/INR 68.02 68.09 -0.07
GBP/INR 91.25 91.41 -0.16
EURO/INR 80.07 79.93 0.14
International News
JPY/INR 0.61 0.61 0.00
Commodity 22-May Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 72.04 71.29 68.21 50.76
Brent Crude($/bl) 81.41 79.93 75.36 52.99
Gold( $/oz) 1291 1290 1335 1260
Gold(Rs./10 gm) 31065 31342 31298 28673
Source: Thomson Reuters Eikon
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
23 May 2018
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 advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor(s), the Investment Manager, the Trustee,
their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on
account of lost profits arising from the information contained in this material.
Readers are requested to click here for ICRON disclaimer - http://www.icraonline.com/legal/standard-disclaimer.html
Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
• Nifty May 2018 Futures were at 10552.85 points, a premium of 16.15
points, above the spot closing of 10,536.70. The turnover on NSE’s
Futures and Options segment went up to Rs. 7,02,865.80 crore on May
22 from Rs. 6,35,473.34 crore on May 21.
• The Put-Call ratio stood at 0.78 against previous session’s close of
0.84.
• The Nifty Put-Call ratio stood at 1.23 against the previous session’s
close of 1.28.
• Open interest on Nifty Futures stood at 24.61 million as against the
previous session’s close at 24.74 million.
• Bond yields stood steady on hopes that central bank will soon
announce an open market bond purchase to narrow the liquidity deficit
in the banking system.
• Yield on the 10-year benchmark paper (7.17% GS 2028) stood steady
at 7.81% same as previous close. During the session, bond yields traded
in the range of 7.78% and 7.85%.
• Banks’ borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 16,812 crore (gross) on May 22 compared with
Rs. 10,668 crore on May 21. Sale of securities under RBI’s reverse repo
window stood at Rs. 5,373 crore on May 21.
• Banks borrowed Rs. 1,140 crore under the central bank’s Marginal
Standing Facility on May 21 as against borrowing of Rs. 155 crore on
May 18.
• The Indian rupee rose against the greenback as the latter remained
under pressure ahead of the release of the U.S. Federal Reserve’s latest
policy meeting minutes due May 23, 2018. However, month end dollar
demand from oil importers capped the gains.
• Euro fell against the greenback as trade tensions between U.S. and
China eased to some extent. However, profit booking on the greenback
restricted further losses.
• Gold prices marginally gained ahead of the minutes of the U.S. Federal
Reserve's last policy meeting,.
• Brent crude prices remained at elevated level on concerns over U.S.
sanction on Venezuela which will further restrict oil supply in the global
market.
• A report from the Office for National Statistics showed that U.K.’s
public sector net borrowing, excluding public sector banks, fell GBP 1.6
billion to GBP 7.8 billion in Apr 2018. This marked the lowest net
borrowing since 2008. Public sector net debt came in at GBP 1.77 billion
or equivalent to 85.1% of gross domestic product at the end of Apr.
• A report from the Confederation of British Industry showed that U.K’s
total order book balance fell to -3% in May 2018. This marked the lowest
order book balance since Nov 2016. Meanwhile, a net 8% reported
above normal export order book level and a net 3% reported an increase
in volume of output over three months to May.
Markets for You
Thank you for
your time.