Mutual Fund News of 11th October 2018

11 Oct 2018

Markets for You

Global Indices

Global Indices 10-Oct Prev_Day Abs. Change

% Change

Dow Jones 25,599 26,431 -832 -3.15

Nasdaq 7,422 7,738 -316 -4.08

FTSE 7,146 7,238 -92 -1.27

Nikkei 23,506 23,469 37 0.16

Hang Seng 26,193 26,173 20 0.08

Indian Indices 10-Oct Prev_Day Abs. Change

% Change

S&P BSE Sensex 34,761 34,299 461 1.35

Nifty 50 10,460 10,301 159 1.54

Nifty 100 10,658 10,474 184 1.76

Nifty Bank 25,322 24,528 794 3.24

SGX Nifty 10,447 10,314 133 1.28

S&P BSE Power 1,926 1,876 50 2.69

S&P BSE Small Cap 13,998 13,502 496 3.67

S&P BSE HC 14,673 14,414 259 1.80

Date P/E Div. Yield P/E Div. Yield

10-Oct 22.33 1.29 25.30 1.28

Month Ago 24.39 1.18 27.81 1.17

Year Ago 23.88 1.21 26.02 1.14

Nifty 50 Top 3 Gainers

Company 10-Oct Prev_Day

% Change

Bajaj Finance 2271 2061 10.19

Bajaj Finserv Limited 5962 5429 9.81

Eicher Motors 22582 21086 7.10

Nifty 50 Top 3 Losers Domestic News

Company 10-Oct Prev_Day

% Change

Bharti Infratel 258 267 -3.10

Infosys 700 718 -2.41

TCS 2044 2092 -2.30

Advance Decline Ratio

BSE NSE

Advances 2058 1538

Declines 611 316

Unchanged 132 80

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -26928

MF Flows** 95622

*10

Oct 2018; **9

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)

11 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

Nifty

4.50%

(Apr-18)

7.70%

(Mar-18)

Quarter Ago

Inflow/Outflow

1064

-823

4.87%

(May-18)

• The Reserve Bank of India will put Rs. 12,000 crore liquidity into the

system by means of purchase of government bonds under open market

operations on Oct 11, 2018. The central bank is doing this to meet the

festival season demand for funds. The bonds will be with maturity

ranging between 2020 to 2030, RBI said in a statement.

• A major global rating agency has said the recent cut in excise duty on

fuel by the government will affect fiscal deficit. The agency has called it

credit negative for the country. The government had a few days ago

reduced excise duty on petrol and diesel by Rs. 1.50/litre and oil

marketing companies were asked to subsume Rs. 1/litre cuts and state

governments to match the Rs. 2.5/litre relief. The reduction would cost

Rs. 10,500 crore in the rest of FY19, according to government estimates.

The government’s fiscal deficit target is at 3.3% of GDP for FY19.

• The government will rebuild the task force that was set up in Nov 2018

to draft a new direct taxes code. The current panel could not submit a

report after a series of disagreements on many aspects such as

exemptions for individual taxpayers. The panel’s responsibilities included

drafting an appropriate direct tax legislation with an eye on the systems

present in various countries, international best practices and economic

needs. The committee’s deadline was six months which was extended by

three months till Aug 2018.

• The government could soon make changes to the Companies Act

through an ordinance. This is being done to encourage ease of doing

business and corporate compliance and speed up insolvency

proceedings. The government could ease various penal provisions in the

Act and introduce measures to unblock National Company Law Tribunal

(NCLT) and special courts. The main aim is to decentralise power to

regional directors and build an in-house e-adjudication mechanism,

which will free up the overburdened NCLT and special courts.

Markets for You

• The Asian equity markets were mixed as IMF’s downgrade of world and

China growth outlook still irked investors and U.S. Treasury yields kept

them on their toes. Treasury yields have been hovering around multi-year

highs. Markets became cautious after the U.S. President iterated his plans

to impose tariffs on all of Chinese imports if China took retaliatory

measures. Today (as of Oct 11), Asian markets opened lower and were

poised for losses following decline in Wall Street in the last session. Nikkei

and Hangseng fell 3.59% and 2.97%, respectively (as at 8.a.m. IST).

• As per the last close, European markets closed lower as worries over

slowing Chinese growth weighed on investor sentiment. Technology and

mining stocks remained under pressure, thereby weighing on the indices.

Meanwhile, investors remained focused on developments around Brexit

and Italy's budget.

• As per the last close, U.S markets closed lower following steep decline

in technology stocks and lingering concerns about the outlook for interest

rates amid recent increase in treasury yields. Substantial weakness in

energy and semiconductor stocks also weighed on the indices.

• Indian equity markets gained as the rupee recovered a bit from lifetime

lows, crude oil prices eased, and investors welcomed Reserve Bank of

India’s (RBI) announcement of injecting Rs. 12,000 crore into the system.

RBI had on Oct 9, 2018, made the announcement. The step will help ease

the tight liquidity condition that has been bothering investors after the

financial sector was rocked by a series of debt defaults by a leading

infrastructure and finance company. The government has since then

taken control of the company’s management to steer it away from any

catastrophe.

• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 1.35% and

1.54% to close at 34,760.89 and 10,460.10, respectively. S&P BSE Mid-

Cap increased 4.23% and S&P BSE Small Cap gained 3.67%.

• On the BSE sectoral front S&P BSE Realty was the major gainer, up

4.44%, followed by S&P BSE Consumer Durables and S&P BSE Finance, up

3.77% and 3.55%, respectively. S&P BSE Bankex and S&P BSE Industrials

gained 3.53% and 3.44%, respectively. The major loser was S&P BSE

Information Technology, down 1.52%, and the only other loser was S&P

BSE Teck, down 1.07%.

FII Derivative Trade Statistics 10-Oct

(Rs Cr) Buy

Sell Open Int.

Index Futures 3962.50 3882.53 20775.68

Index Options 90533.34 91980.83 75822.05

Stock Futures 14768.73 14391.92 82767.00

Stock Options 6389.79 6405.67 6656.35

Total 115654.36 116660.95 186021.08

10-Oct Prev_Day

Change

Put Call Ratio (OI) 1.16 1.11 0.05

Indian Debt Market

Put Call Ratio(Vol) 0.84 0.68 0.17

10-Oct Wk. Ago Mth. Ago

Year Ago

Call Rate 6.45% 6.32% 6.54% 5.88%

CBLO 6.35% 5.88% 6.54% 5.91%

Repo 6.50% 6.50% 6.50% 6.00%

Reverse Repo 6.25% 6.25% 6.25% 5.75%

91 Day T-Bill 6.90% 7.08% 6.87% 6.05%

364 Day T-Bill 7.52% 7.77% 7.45% 6.20%

10 Year Gilt 8.03% 8.11% 8.16% 6.74%

G-Sec Vol. (Rs.Cr) 35386 31813 42665 39206

Currency Market Update

FBIL MIBOR 6.51% 6.49% 6.54% 6.05%

3 Month CP Rate 7.80% 8.20% 7.70% 6.75%

5 Year Corp Bond 8.88% 9.03% 8.92% 7.53%

1 Month CD Rate 6.82% 6.58% 6.97% 6.06%

3 Month CD Rate 7.04% 7.26% 7.30% 6.16%

1 Year CD Rate 8.45% 8.58% 8.25% 6.60%

Commodity Market Update

Currency 10-Oct Prev_Day

Change

USD/INR 74.13 74.10 0.03

GBP/INR 97.63 96.99 0.64

EURO/INR 85.26 85.11 0.16

International News

JPY/INR 0.66 0.66 0.00

Commodity 10-Oct Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 73.13 76.35 67.50 50.88

Brent Crude($/bl) 84.16 85.79 76.76 56.41

Gold( $/oz) 1194 1197 1195 1287

Gold(Rs./10 gm) 31021 30997 30402 29732

Source: Thomson Reuters Eikon

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

11 October 2018

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Bond yield lowered following the recovery in rupee after witnessing six

sessions of continued fall. In addition, the central bank’s declaration of

bond purchase under open market operation boosted the market

sentiment and helped the yield ease.

• Yield on the 10-year benchmark paper (7.17% GS 2028) reduced 5 bps

to 8.03% compared with the previous closing of 8.08% after trading in

the range of 8.02% to 8.07%.

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

Facility (LAF) stood at Rs. 3,798 crore (gross) on Oct 10 compared with a

borrowing of Rs. 2,928 crore (gross) on Oct 9. Sale of securities under the

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 22,307

crore on Oct 9.

• Banks borrowed Rs. 1 crore under the central bank’s Marginal Standing

Facility on Oct 9 compared with borrowing of Rs. 4 crore on Oct 8.

• According to the Organisation for Economic Co-operation and

Development (OECD), unemployment rate for OECD countries was

unchanged for the second consecutive month in Aug 2018. The jobless

rate came in at 5.3% in Aug, same as in Jun and Jul 2018. The rate was

5.2% in May. The youth unemployment rate, applicable to the 15-24 age

group, was 11%.

• Office for National Statistics data showed U.K.'s merchandise trade

deficit widened in Aug 2018 from the previous month. It beat market

expectations.

Markets for You

• Nifty Oct 2018 Futures settled at 10,465.75, a premium of 5.65 points,

above the spot closing of 10,460.10. The turnover on NSE’s Futures and

Options segment grew to Rs. 11,94,244.77 on Oct 10 against Rs.

7,12,977.40 on Oct 9.

• The Put-Call ratio stood at 0.86, compared with previous close of 0.72.

• The Nifty Put-Call ratio stood at 1.16 compared with previous close of

1.11.

• India VIX declined 8.83% to 18.0100 from 19.7550 in previous session.

• Open interest on Nifty Futures stood at 21.76 million as against the

previous session’s close at 21.41 million.

• The Indian rupee rebound against dollar as the latter weakened with

the decline in U.S. Treasury yield. The local unit also gained from the

finance minister and the central bank’s supportive proposal to gather

funds from NRIs. The rupee closed at 74.20 a dollar from the previous

close of 74.39.

• The euro was steady to slightly higher against dollar as the latter

weakened due to the fall in U.S. Treasury yield. The euro was last seen

trading at 1.1497 a dollar compared with the previous close of 1.1489.

• Gold prices remained steady against the greenback with the decline in

U.S. Treasury yield.

• Brent crude prices were nearly steady ahead of the looming U.S.

sanction on Iran that poses global supply threat.

Thank you for

your time.