08 Oct 2018
Markets for You
Global Indices
Global Indices 05-Oct Prev_Day Abs. Change
% Change
#
Dow Jones 26,447 26,627 -180 -0.68
Nasdaq 7,788 7,880 -91 -1.16
FTSE 7,319 7,418 -100 -1.35
Nikkei 23,784 23,976 -192 -0.80
Hang Seng 26,573 26,624 -51 -0.19
Indian Indices 05-Oct Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 34,377 35,169 -792 -2.25
Nifty 50 10,316 10,599 -283 -2.67
Nifty 100 10,510 10,794 -284 -2.63
Nifty Bank 24,443 24,819 -376 -1.51
SGX Nifty 10,296 10,612 -317 -2.98
S&P BSE Power 1,900 1,942 -42 -2.18
S&P BSE Small Cap 13,840 14,126 -286 -2.02
S&P BSE HC 14,401 14,550 -149 -1.03
Date P/E Div. Yield P/E Div. Yield
5-Oct 21.96 1.31 24.95 1.30
Month Ago 24.35 1.17 27.90 1.17
Year Ago 23.67 1.22 25.69 1.15
Nifty 50 Top 3 Gainers
Company 05-Oct Prev_Day
% Change
#
Infosys 725 707 2.46
Titan Industries 792 777 1.98
TCS 2103 2065 1.83
Nifty 50 Top 3 Losers Domestic News
Company 05-Oct Prev_Day
% Change
#
HPCL 165 217 -23.97
BPCL 265 331 -19.89
Indian Oil 118 140 -15.86
Advance Decline Ratio
BSE NSE
Advances 674 413
Declines 1982 1441
Unchanged 125 93
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* -19924
MF Flows** 90919
*5
th
Oct 2018; **3
rd
Oct 2018
Economic Indicator
YoY(%) Current Year Ago
CPI
3.69%
(Aug-18)
3.28%
(Aug-17)
IIP
6.60%
(Jul-18)
1.00%
(Jul-17)
GDP
8.20%
(Jun-18)
5.60%
(Jun-17)
08 October 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
4.50%
(Apr-18)
7.70%
(Mar-18)
Quarter Ago
Inflow/Outflow
888
-2261
4.87%
(May-18)
Indian equity markets declined as the Reserve Bank of India decided to
maintain interest rates at their present level, defying expectations.
Investors were surprised by the central bank’s move as expectations were
for a 25 basis points hike in rates in the face of rising crude oil prices and
falling rupee excreting upward pressure on inflation. Also, the rupee
continued its downward slide, touching a new all-time low of 74.13.
Key benchmark indices S&P BSE Sensex and Nifty 50 lost 2.25% and
2.67% to close at 34,376.99 and 10,316.45, respectively. S&P BSE Mid-
Cap decreased 2.70%, while S&P BSE Small Cap fell 2.02%.
On the BSE sectoral front, only three sectors gained, namely S&P BSE
Information Technology (1.11%), S&P BSE Teck (0.7%) and S&P BSE
Consumer Durables (0.62%). The major loser was S&P BSE Oil & Gas,
down 12.68%, followed by S&P BSE Energy, down 8.52%. S&P BSE Utilities
lost 3.58% and S&P BSE Metal lost 3.45%. The oil and gas and energy
sectors lost as the government announced it will cut excise duties on
petrol and diesel prices and oil marketing companies would have to
absorb Re 1 per litre. Export-oriented IT sector’s gains come in the wake
of an all-time low rupee.
The Monetary Policy Committee (MPC) in its fourth bi-monthly
monetary policy review for FY19 kept key policy repo rate on hold after it
increased the same by 25 bps each in its two previous bimonthly policy
reviews. The decision comes as MPC opted to keep inflation on a close
vigil for the next few months. MPC voted 5:1 in favour of a status quo.
However, it changed its stance to “calibrated tightening” from neutral
that was in place since Feb 2017.
MPC on the growth front retained the growth projection for FY19 at
7.4%. For the first quarter of FY20, MPC lowered the GDP growth for the
first quarter of FY20 to 7.4% from the earlier projection of 7.5%. The
outlook for economic growth is based on the fact that the outlook for
private consumption has remained robust. According to MPC, it will likely
sustain despite the impact of recent rise in oil prices on disposable
incomes. Improving capacity utilisation and increased financial resources
to the corporate sector augur well for investment activity. However,
global as well as domestic financial conditions have tightened and may
keep a check on the same.
According to media reports, Icra has assigned a B- (negative) rating for
Jet Airways' Rs 70 billion long-term debt (from BB-) which includes non-
convertible debentures, loans, fund, and non-fund based facilities. As per
reports, this is the third rating downgrade in five months as the airline
faces a delay in implementing liquidity enhancement measures.
According to media reports, Thomas Cook India said that its board has
given nod for the acquisition of a 24% stake in Mumbai-based travel tech
start-up 'TravelJunkie Solutions' by its arm TC Tours Ltd.
According to media reports, drug firm Zydus Cadila said that it has
received final approval from the US health regulator to market
Exemestane tablets which is used for the treatment of breast cancer.
According to media reports, Swedish furniture and home accessories
company IKEA plans to invest nearly Rs. 3,000 crore in the next three
years to open three fulfilment centres (packing warehouses) in Mumbai,
Bengaluru and Delhi.
Asian equity markets saw lacklustre trade as investors became cautious
of rising U.S. Treasury yields. The rise in yields has raised concern about
interest rate outlook. Media reports on China conducting a covert action
on global IT majors operating in the country soured sentiment. Today (as
of Oct 8), Asian markets opened almost lower following losses in the Wall
Street in the last session. Hangseng fell 0.03% (as at 8.a.m. IST). Nikkei
remained closed.
As per the last close, European markets closed lower due to concerns
surrounding Italy and Brexit uncertainty and continued trade tensions
between the U.S. and China. Weaker than expected U.S. employment
growth for Sep 2018 also weighed on investor sentiment.
As per the last close, U.S markets closed almost lower following weaker
than expected job growth in Sep 2018. Non-farm payroll employment
surged by 134,000 jobs as against market expectations of a growth of
about 185,000 jobs. However, reports of significant upward revision to
the pace of job growth in Aug 2018 and decline in unemployment rate to
its lowest level since 1969 restricted the losses.
Markets for You
FII Derivative Trade Statistics 05-Oct
(Rs Cr) Buy
Sell Open Int.
Index Futures 5963.81 9120.71 20391.52
Index Options 198137.80 189628.47 66754.26
Stock Futures 17732.64 18097.67 83159.08
Stock Options 9138.92 9071.78 5322.57
Total 230973.17 225918.63 175627.43
05-Oct Prev_Day
Change
Put Call Ratio (OI) 1.07 1.21 -0.14
Indian Debt Market
Put Call Ratio(Vol) 0.66 0.67 -0.01
05-Oct Wk. Ago Mth. Ago
Year Ago
Call Rate 6.41% 6.51% 6.31% 5.83%
CBLO 6.12% 4.36% 6.21% 5.71%
Repo 6.50% 6.50% 6.50% 6.00%
Reverse Repo 6.25% 6.25% 6.25% 5.75%
91 Day T-Bill 6.85% 6.95% 6.78% 6.08%
364 Day T-Bill 7.55% 7.64% 7.35% 6.20%
10 Year Gilt 8.02% 8.02% 8.05% 6.73%
G-Sec Vol. (Rs.Cr) 42133 30033 42961 37946
Currency Market Update
FBIL MIBOR 6.50% 6.60% 6.40% 5.98%
3 Month CP Rate 8.35% 8.15% 7.65% 6.71%
5 Year Corp Bond 8.93% 9.02% 8.80% 7.48%
1 Month CD Rate 7.11% 6.62% 6.36% 6.05%
3 Month CD Rate 7.42% 7.43% 7.18% 6.14%
1 Year CD Rate 8.52% 8.40% 8.07% 6.58%
Commodity Market Update
Currency 05-Oct Prev_Day
Change
USD/INR 73.58 73.75 -0.17
GBP/INR 95.89 95.39 0.50
EURO/INR 84.70 84.63 0.07
International News
JPY/INR 0.65 0.64 0.00
Commodity 05-Oct Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 74.21 73.11 68.64 50.74
Brent Crude($/bl) 85.16 83.21 76.75 56.98
Gold( $/oz) 1202 1192 1196 1268
Gold(Rs./10 gm) 31216 30296 30274 29405
Source: Thomson Reuters Eikon
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
08 October 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 (RNAM) 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; RNAM 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 RNAM’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 Oct 2018 Futures settled at 10,347.15, a premium of 30.70
points, above the spot closing of 10,316.45. The turnover on NSE’s
Futures and Options segment declined to Rs. 7,69,990.23 on Oct 5
compared with Rs. 20,26,271.53 on Oct 4.
The Put-Call ratio stood at 0.68, compared with the previous session’s
close of 0.76.
The Nifty Put-Call ratio stood at 1.07 compared with the previous
session’s close of 1.21.
Open interest on Nifty Futures stood at 21.90 million as against the
previous session’s close at 20.01 million.
Bond yield plunged and witnessed the biggest single day fall in more
than six months after the Monetary Policy Committee kept key policy
repo rate unchanged in its fourth bi-monthly monetary policy review
which surprised market participants. Market participants were expecting
a rate hike in the backdrop of higher crude oil prices and persisting
weakness rupee. The MPC however changed its stance to calibrated
tightening’ from ‘neutral’.
Yield on the 10-year benchmark paper (7.17% GS 2028) declined 14 bps
to 8.02% compared with the previous closing of 8.16% after trading in
the range of 8.01% to 8.16%.
Banks’ borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 3,646 crore (gross) on Oct 5 compared with a
borrowing of Rs. 3,401 crore (gross) on Oct 4. Sale of securities under the
Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 91,071
crore on Oct 4.
The Indian rupee plunged to another record low with consistent surge
in global crude oil prices. Losses were extended after the MPC
surprisingly left key interest rate unchanged but changed its stance to
“calibrated tightening from neutral. The rupee declined 0.26% to close
at 73.77 a dollar from the previous close of 73.58.
The euro inched up against the greenback after the U.S. nonfarm
payroll employment data for Sep 2018 fell short of market expectations.
The euro was last seen trading at 1.1523, up 0.09% compared with the
previous close of 1.1513.
Gold prices rose ahead of the U.S. government’s Sep payroll report.
Brent crude prices slipped as reports on rise in U.S. crude oil inventory
and Russia-Saudi Arabia private deal to increase crude output provided
supply comfort.
According to a report from the Labor Department U.S. employment
rose less than expected by 134,000 jobs in Sep 2018 as against upwardly
revised growth of 270,000 jobs in Aug 2018. Another report from the
Labor Department showed that unemployment rate fell to 3.7% in Sep
2018, lowest level since Dec 1969, from 3.9% in Aug 2018.
According to the Labor Department U.S. initial jobless claims for the
week ended Sep 29 fell by 8,000 to 207,000 from the previous week's
revised level of 215,000. Meanwhile, less volatile four-week moving
average inched up by 500 to 207,000 from the previous week's revised
average of 206,500.
Markets for You
Thank you for
your time.