Markets For You of 12th October 2018 – Nippon India Mutual Fund

12 Oct 2018

Markets for You

Global Indices

Global Indices 11-Oct Prev_Day Abs. Change

% Change

Dow Jones 25,053 25,599 -546 -2.13

Nasdaq 7,329 7,422 -93 -1.25

FTSE 7,007 7,146 -139 -1.94

Nikkei 22,591 23,506 -915 -3.89

Hang Seng 25,266 26,193 -927 -3.54

Indian Indices 11-Oct Prev_Day Abs. Change

% Change

S&P BSE Sensex 34,001 34,761 -760 -2.19

Nifty 50 10,235 10,460 -225 -2.16

Nifty 100 10,432 10,658 -226 -2.12

Nifty Bank 24,784 25,322 -538 -2.12

SGX Nifty 10,351 10,447 -96 -0.91

S&P BSE Power 1,896 1,926 -31 -1.58

S&P BSE Small Cap 13,800 13,998 -197 -1.41

S&P BSE HC 14,350 14,673 -323 -2.20

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

11-Oct 21.86 1.31 24.75 1.31

Month Ago 23.91 1.20 27.44 1.19

Year Ago 23.83 1.22 25.94 1.14

Nifty 50 Top 3 Gainers

Company 11-Oct Prev_Day

% Change

HPCL 208 181 15.08

Indian Oil 131 124 5.65

BPCL 278 265 4.80

Nifty 50 Top 3 Losers Domestic News

Company 11-Oct Prev_Day

% Change

Indiabulls HFC 892 978 -8.85

Bajaj Finserv Limited 5592 5962 -6.20

SBI 262 279 -5.92

Advance Decline Ratio

BSE NSE

Advances 785 523

Declines 1805 1301

Unchanged 141 86

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -28010

MF Flows** 96858

*11

Oct 2018; **10

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)

12 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

1236

-1083

4.87%

(May-18)

• Indian equity markets saw yet another day of losses as heavy sell-off in

overnight U.S. markets spread gloom in Europe and Asia. U.S. markets

fell after technology stocks declined on slowing-demand worries and the

U.S. President commented that the Federal Reserve’s pace of interest

rate hike is unfound, calling the decision “crazy”. On the domestic front,

the rupee’s weakness weighed on investor sentiment.

• Key benchmark indices S&P BSE Sensex and Nifty 50 lost 2.19% and

2.16% to close at 34,001.15 and 10,234.65, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap decreased 2.34% and 1.14%, respectively.

• The overall market breadth on BSE was weak with 785 scrips advancing

and 1805 scrips declining. A total of 141 scrips remained unchanged.

• On the BSE sectoral front only two sectors gained. S&P BSE Oil & Gas

was the major gainer, up 2.88%, followed by S&P BSE Energy, up 0.16%.

S&P BSE Metal was the major loser, down 3.77%, followed by S&P BSE

Information Technology and S&P BSE Realty, down 3.21% and 3.16%,

respectively.

• The Competition Commission of India (CCI) has amended the

combination regulations in relation to withdrawal and refiling of notices

seeking approvals. This is being done to provide faster clearance of

merger and acquisition cases. In Jul 2018, the regulator had invited

comments for the amendments in the Competition Commission of India

(Procedure in regard to the transaction of business relating to

combinations) Regulations.

• According to a report, a resolution of non-performing assets (NPAs)

worth Rs. 1 lakh crore in coal-based power projects is possible if lenders

forgo 40%-60% of the loans repayment. The country’s coal-based power

projects are faced with at least Rs. 3.8 lakh crore worth of NPAs. If

lenders agree to take 40%-60% haircut, they would able to resolve as

much as Rs. 1 lakh crore of debt stuck in coal-based power projects, the

report said.

• According to media reports, the government does not plan to ask oil

marketing companies (OMCs) for any more subsidy on petrol and diesel

prices. The government had recently told OMCs to take a Re 1 per litre

subsidy. It has called the move a "one-time thing".

• Tata Consultancy Services Ltd’s (TCS) second-quarter net profit

increased 3.4% to $1.1 billion compared with $1.08 billion in the

preceding three months. TCS’s revenue increased 3.7% sequentially and

10% annually.

• Electric vehicle maker Olectra-BYD has signed an agreement with

Uttarakhand government to position 500 AC Electric Buses in the state at

an investment of Rs. 700 crore. The Hyderabad-based Olectra Greentech

in a strategic tie-up with China’s BYD Auto Industry will deploy the ‘Made

in India’ eBuzz K7 (9 meter) and eBuzz K9 (12 meter) electric buses in the

Uttarakhand.

• Mahindra-owned Classic Legends will bring back Jawa Motorcycles

towards the end of 2018. Details on the motor were revealed by the bike

maker. The engine has been built from scratch and shares its bore and

stroke with the existing Mahindra Mojo 300cc powertrain and is BS6

ready.

• Asian markets saw heavy sell-off after U.S. markets declined overnight.

The slide in U.S. was a result of trade-war worries, technology stocks

declining on slow demand concerns and the U.S. President’s comments

on rate hikes. The U.S. President said the Federal Reserve’s pace of

interest rate hike is unfound, calling the decision “crazy”. Chinese

markets saw the lowest level since 2016. Today (as of Oct 12), Asian

markets opened on a mixed note. Decline in Wall Street in the last session

weighed on the indices. Nikkei fell 0.27%, however, Hangseng advanced

by 0.46% in early trading session (as at 8.a.m. IST).

• As per the last close, European markets closed lower followed by steep

losses in U.S. stocks. Concerns over trade tensions between the U.S. and

China as well as possibility of aggressive rate hikes by the U.S. Federal

Reserve weighed on the investor sentiment.

• As per the last close, U.S markets closed despite significant drop by

treasury yields as the investors remained concerned about the outlook

for interest rates and escalating trade war between the U.S. and China.

Weakness in banking and energy stocks weighed on the indices.

Markets for You

FII Derivative Trade Statistics 11-Oct

(Rs Cr) Buy

Sell Open Int.

Index Futures 3932.18 5418.93 22881.91

Index Options 146803.11 145654.49 77329.66

Stock Futures 18542.87 16263.06 84500.65

Stock Options 7009.78 7106.54 7404.82

Total 176287.94 174443.02 192117.04

11-Oct Prev_Day

Change

Put Call Ratio (OI) 1.08 1.16 -0.08

Indian Debt Market

Put Call Ratio(Vol) 0.81 0.84 -0.03

11-Oct Wk. Ago Mth. Ago

Year Ago

Call Rate 6.42% 6.32% 6.49% 5.85%

CBLO 6.40% 5.86% 6.53% 5.88%

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% 7.09% 6.88% 6.07%

364 Day T-Bill 7.52% 7.73% 7.47% 6.21%

10 Year Gilt 7.99% 8.16% 8.18% 6.74%

G-Sec Vol. (Rs.Cr) 39373 27393 29824 40584

Currency Market Update

FBIL MIBOR 6.50% 6.45% 6.70% 6.00%

3 Month CP Rate 7.70% 8.40% 7.90% 6.75%

5 Year Corp Bond 8.79% 9.07% 8.96% 7.52%

1 Month CD Rate 6.82% 7.13% 7.17% 6.05%

3 Month CD Rate 7.13% 7.38% 7.28% 6.17%

1 Year CD Rate 8.44% 8.59% 8.36% 6.60%

Commodity Market Update

Currency 11-Oct Prev_Day

Change

USD/INR 74.39 74.13 0.26

GBP/INR 98.30 97.63 0.67

EURO/INR 85.90 85.26 0.64

International News

JPY/INR 0.66 0.66 0.01

Commodity 11-Oct Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 70.92 74.39 69.24 51.25

Brent Crude($/bl) 81.69 86.41 78.16 55.84

Gold( $/oz) 1224 1199 1198 1292

Gold(Rs./10 gm) 31310 31057 30605 29659

Source: Thomson Reuters Eikon

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

12 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 (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 Oct 2018 Futures settled at 10,252.05, a premium of 17.40

points, above the spot closing of 10,234.65. The turnover on NSE’s

Futures and Options segment increased to Rs. 19,94,265.04 on Oct 11

compared with Rs. 11,94,244.77 on Oct 10.

• The Put-Call ratio stood at 0.78, compared with the previous session’s

close of 0.86.

• The Nifty Put-Call ratio stood at 1.08 compared with the previous

session’s close of 1.16.

• Open interest on Nifty Futures stood at 21.92 million as against the

previous session’s close at 21.76 million.

• Bond yield lowered aided by the central bank’s bond purchase worth

Rs. 12,000 crore under open market operation and fall in crude oil

prices. These factors alleviated worries over inflationary pressure.

However, traders continue to remain cautious with overall weakness in

rupee and crude oil price, which is still north of $80 per barrel.

• Yield on the 10-year benchmark paper (7.17% GS 2028) reduced 4 bps

to 7.99% compared with the previous closing of 8.03% after trading in

the range of 7.98% to 8.02%.

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

Facility (LAF) stood at Rs. 3,909 crore (gross) on Oct 11 compared with a

borrowing of Rs. 3,798 crore (gross) on Oct 10. Sale of securities under

the Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 8,028

crore on Oct 10.

• The Indian rupee rose for the second session with the decline in crude

oil prices and hopes that the government would undertake supportive

measures. The rupee closed at 74.12 a dollar from the previous close of

74.20.

• The euro moved up against dollar as an overnight decline in U.S.

Treasury yield had a bearing on the latter. The euro was last seen

trading at 1.1574 a dollar compared with the previous close of 1.1518.

• Gold prices edged up on weak global cues that resulted in massive sell-

off in the international equity market.

• Brent crude prices declined over worries on global growth prospects.

• Labor Department data showed U.S. producer prices increased in line

with estimates in Sep 2018. This happened as an increase in prices for

services offset a modest dip in prices for goods. The producer price

index for final demand rose 0.2% in Sep after decreasing 0.1% in Aug

2018. Expectations were for prices to rise 0.2%.

• A Commerce Department report showed a bigger than expected rise in

U.S. wholesale inventories for Aug 2018. Wholesale inventories

increased 1.0% in Aug after rising by 0.6% in Jul 2018. Expectations were

for wholesale inventories to increase 0.8%.

Markets for You

Thank you for

your time.