Mutual Fund News of 27 May 2019 – Reliance Mutual Fund

27May2019

MarketsforYou

https://www.reliancemutual.com

GlobalIndices

GlobalIndices 24‐May Prev_Day Abs.Change

%Change

DowJones 25,586 25,490 95 0.37

Nasdaq 7,637 7,628 9 0.11

FTSE 7,278 7,231 47 0.65

Nikkei 21,117 21,151 ‐34 ‐0.16

HangSeng 27,354 27,267 87 0.32

IndianIndices 24‐May Prev_Day Abs.Change

%Change

S&PBSESensex 39,435 38,811 623 1.61

Nifty50 11,844 11,657 187 1.60

Nifty100 11,945 11,746 199 1.70

NiftyBank 31,213 30,409 803 2.64

SGXNifty 11,866 11,685 181 1.54

S&PBSEPower 1,961 1,931 30 1.57

S&PBSESmallCap 14,700 14,353 347 2.42

S&PBSEHC 13,396 13,236 160 1.21

Date P/E Div.Yield P/E Div.Yield

24‐May 28.91 1.20 29.44 1.11

MonthAgo 27.91 1.18 29.27 1.12

YearAgo 22.48 1.18 26.07 1.22

Nifty50Top3Gainers

Company 24‐May Prev_Day

%Change

ICICIBank 432 411 5.09

L&TLtd. 1544 1476 4.61

ZeeEnte. 377 360 4.55

Nifty50Top3Losers DomesticNews

Company 24‐May Prev_Day

%Change

TechMahindra 736 743 ‐1.00

NTPC 129 130 ‐0.54

TCS 2048 2054 ‐0.29

AdvanceDeclineRatio

BSE NSE

Advances 1833 1449

Declines 699 362

Unchanged 148 107

InstitutionalFlows(Equity)

Description(Cr) YTD

FIIFlows* 66084

MFFlows** 4001

*24

May2019;**23

May2019

EconomicIndicator

YoY(%) Current YearAgo

CPI

2.92%

(Apr‐19)

4.58%

(Apr‐18)

IIP

‐0.10%

(Mar‐19)

5.30%

(Mar‐18)

GDP

6.60%

(Dec‐18)

7.70%

(Dec‐17)

27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

2.50%

(Dec‐18)

7.00%

(Sep‐18)

QuarterAgo

Inflow/Outflow

1440

2.11%

(Dec‐18)

• Indian equity markets ended the week at record closing highs. A stable

government at the centre that will continue with the previous reforms

continues to bolster investor sentiment. Also, investors are expecting that

the new government will execute structural reforms to reverse economic

slowdown and create more jobs for the youth.

• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 1.61% and

1.60%, respectively, to close at 39,434.72 and 11,844.10, respectively. S&P

BSE Mid‐Cap and S&P BSE Small Cap gained 2.01% and 2.42%,

respectively.

• The overall market breadth on BSE was strong with 1833 scrips

advancing and 699 scrips declining. A total of 148 scrips remained

unchanged.

• On the BSE sectoral front, all the sectors gained. S&P BSE Realty was the

major gainer, up 4.18%, followed by S&P BSE Capital Goods and S&P BSE

Industrials, up 3.98% and 3.56%, respectively. S&P BSE Telecom and S&P

BSE Auto gained 3.56% and 2.94%, respectively. S&P BSE Basic Materials

and S&P BSE Metal gained 2.88% each.

• A prominent global rating agency has said that a stable government at

the centre is likely to improve business sentiment and outlook for private

investment. The agency said that from a credit rating perspective, it would

focus on the extent of the next government’s efforts to improve India’s

weak fiscal finances. Although it expects fiscal deficit to remain

manageable in the next few years, it has seen “little indication” so far that

the government will pursue significant deficit reduction of the order

needed to meet the general government debt ceiling of 60% of GDP by

Mar 2025 as mandated by the FRBM Act. The global rating agency said it

expect the government to remain reform minded.

• The Goods and Services Network (GSTN), which is the IT support for GST,

has launched the prototype for the new and simplified return filing

system. The system is aimed at familiarising businesses with the new

processes before the eventual roll‐out. However, the prototype launch is

already delayed as the original plan was to introduce a pilot on Apr 1,

2019, followed by the new system on Jul 1, 2019. Experts said that it is

unlikely that new system would be introduced on Jul 1 as businesses have

been given deadline for filing audit reports by Jun 30.

• According to media reports, the government is looking at options to

“insulate” state‐run electricity distribution companies (discoms) fromthe

risk of delayed payments from bulk consumers such as local bodies and

state government departments. Discoms have missed key targets of the

UDAY scheme Power. The reports said that “these receivables of discoms

are almost one and a half times their outstanding payables to generating

companies”. Discoms’ dues to power producers stood at Rs. 38,023 crore

at the end of FY19, up 59.8% from a year earlier, and 65% of these were

“over‐dues” with a payment default of 60 days or more.

• Asian equity markets were mixed amid persistent worries about U.S.‐

China trade dispute. Though the U.S. President said Washington's

complaints against a Chinese tech giant might be resolved within the U.S.‐

China trade deal, he called the company "very dangerous". Today (as of

May 27), Asian markets opened on a mixed note as investors tracked

results from the European parliamentary election. While Nikkei was

trading higher 0.17%, Hang Seng was down 0.29% (as at 8 a.m. IST).

• As per the last close, European markets rose on positive comments by

the U.S. President to end the U.S.‐China trade conflict, which lifted

investor’s confidence. Meanwhile, market participants also kept a close

eye on Brexit developments after U.K. Prime Minister announced to resign

on Jun 7 following the backlash against her new Brexit deal.

• As per the last close, U.S markets went up on easing trade concerns as

the U.S. President Donald said he remains hopeful of a U.S.‐China trade

deal. He said to meet with Chinese President at the G20 summit next

month. Bargain buying also contributed to the upside following last

Thursday's steep losses.

MarketsforYou

FIIDerivativeTradeStatistics 24‐May

(RsCr) Buy Sell OpenInt.

IndexFutures 10183.71 11597.34 22991.56

IndexOptions 434126.09 427703.86 72287.17

StockFutures 20924.55 21296.91 90958.82

StockOptions 14203.46 14069.70 8633.51

Total 479437.81 474667.81 194871.06

24‐May Prev_Day Change

PutCallRatio(OI) 1.23 0.85 0.39

IndianDebtMarket

PutCallRatio(Vol) 0.78 0.80 ‐0.02

24‐May Wk.Ago Mth.Ago YearAgo

CallRate 5.88% 5.99% 6.19% 5.92%

T‐Repo 5.92% 5.95% 6.01% NA

Repo 6.00% 6.00% 6.00% 6.00%

ReverseRepo 5.75% 5.75% 5.75% 5.75%

91DayT‐Bill 6.21% 6.32% 6.38% 6.20%

364DayT‐Bill 6.34% 6.43% 6.48% 6.80%

10YearGilt 7.23% 7.36% 7.43% 7.87%

G‐SecVol.(Rs.Cr) 58585 32164 36674 17063

CurrencyMarketUpdate

FBILMIBOR 6.00% 6.05% 6.25% 6.10%

3MonthCPRate 6.90% 7.25% 7.50% 8.40%

5YearCorpBond 8.31% 8.38% 8.52% 8.72%

1MonthCDRate 6.54% 7.24% 7.11% 6.81%

3MonthCDRate 6.65% 7.07% 7.13% 7.83%

1YearCDRate 7.44% 7.29% 7.50% 8.19%

CommodityMarketUpdate

Currency 24‐May Prev_Day Change

USD/INR 69.61 ‐0.06 ‐0.09

GBP/INR 77.97 0.32 0.41

EURO/INR 88.30 0.38 0.43

InternationalNews

JPY/INR 63.55 0.36 0.57

Commodity 24‐May WkAgo Mth.Ago YearAgo

NYMEXCrude($/bl) 58.39 62.72 65.93 70.72

BrentCrude($/bl) 68.97 74.93 73.05 79.89

Gold($/oz) 1285 1277 1275 1304

Gold(Rs./10gm) 31591 31911 31501 31164

Source:ThomsonReutersEikon

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

27May2019

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

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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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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

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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

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DerivativeStatistics‐NiftyOptions



Disclaimer:

DerivativesMarket

DebtWatch

CurrencyMarket

CommodityPrices

• Nifty May 2019 Futures were at 11,869.4, a premium of 25.30 points,

above the spot closing of 11,844.10. The turnover on NSE’s Futures and

Options segment decreased to Rs. 9,81,157.78 crore on May 24, 2019,

compared with Rs. 25,81,257.90 crore on May 23, 2019.

• The Put‐Call ratio stood at 0.84 compared with the previous session’s

close of 0.85.

• The Nifty Put‐Call ratio stood at 1.23 compared with the previous

session’s close of 0.85.

• Open interest on Nifty Futures stood at 22.76 million as against the

previous session’s close at 21.95 million.

• Bond yields fell after the outcome of the general elections came in line

with the exit polls which raised expectations that the current government

which is set to return for a second five‐year term will continue with its

reform agenda. Market participants also remained hopeful that the

Reserve Bank of India will increase liquidity infusion into the banking

system by stepping up open market purchase of government bonds.

• Yield on the 10‐year benchmark paper (7.26% GS 2029) declined 1 bps

to 7.23% compared with the previous close of 7.24% after trading in a

range of 7.20% to 7.24%.

• RBI after reviewing the evolving liquidity conditions and assessing the

durable liquidity needs going forward has decided to conduct purchase of

government securities under open market operation (OMO) for Rs.

15,000 crore on Jun 13, 2019.

•TheIndianrupeeroseagainstthegreenbackasthedomesticequity

market strengthened after the outcome of the country’s general election.

The rupee closed at 69.53 a dollar compared with the previous close of

70.01.

• The euro rose against the greenback as the latter weakened following

weak U.S. manufacturing activity data for May 2019 that raised the hopes

of rate cut by the U.S. Federal Reserve. The euro was last seen trading at

1.1191 up from 1.1180 in the previous session

• Gold prices gained following weak sales data for new U.S. single‐family

homes in Apr 2019.

• Brent crude prices fell amid rising U.S. crude inventories following

reports from EIA that U.S. crude inventories surged by 4.74 million barrels

in the week ended May 17, 2019 on May 23.

• According to a Commerce Department report, U.S. new home sales

pulled back by much more than anticipated in Apr 2019. The Commerce

Department said new home sales declined 6.9% to an annual rate of

673,000 in Apr after spiking 8.1% to an upwardly revised rate of 723,000

in Mar 2019.

• Office for National Statistics data showed U.K. retail sales performed

better than expected in Apr 2019 as warm weather boosted clothing

sales. The retail sales volume remained unchanged MoM, after rising

1.2% in Mar 2019. Sales were forecast to drop 0.3%. At the same time,

sales excluding auto fuel, dropped 0.2%, in contrast to Mar's 1.4%

increase. Online retailers selling clothing products were the driver to this

growth, with the warm weather helping to boost sales.

MarketsforYou

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