Mutual Fund News of 31th October 2018

31 Oct 2018

Markets for You

Global Indices

Global Indices 30-Oct Prev_Day Abs. Change

% Change

Dow Jones 24,875 24,443 432 1.77

Nasdaq 7,162 7,050 111 1.58

FTSE 7,036 7,026 10 0.14

Nikkei 21,457 21,150 307 1.45

Hang Seng 24,586 24,812 -227 -0.91

Indian Indices 30-Oct Prev_Day Abs. Change

% Change

S&P BSE Sensex 33,891 34,067 -176 -0.52

Nifty 50 10,198 10,251 -52 -0.51

Nifty 100 10,414 10,453 -39 -0.38

Nifty Bank 24,808 24,960 -152 -0.61

SGX Nifty 10,203 10,314 -111 -1.08

S&P BSE Power 1,945 1,948 -4 -0.19

S&P BSE Small Cap 14,008 13,878 130 0.94

S&P BSE HC 14,436 14,460 -24 -0.17

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

30-Oct 21.73 1.32 24.55 1.32

Month Ago 23.37 1.23 26.44 1.23

Year Ago 24.77 1.17 26.77 1.10

Nifty 50 Top 3 Gainers

Company 30-Oct Prev_Day

% Change

Tech Mahindra 685 664 3.14

Zee Ente. 444 431 3.05

Grasim Indus 805 782 2.85

Nifty 50 Top 3 Losers Domestic News

Company 30-Oct Prev_Day

% Change

HPCL 220 231 -4.58

Coal India 276 287 -4.02

BPCL 266 277 -3.97

Advance Decline Ratio

BSE NSE

Advances 1492 1088

Declines 1075 702

Unchanged 143 91

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -40216

MF Flows** 108647

*30

Oct 2018; **29

Oct 2018

Economic Indicator

YoY(%) Current Year Ago

CPI

3.77%

(Sep-18)

3.28%

(Sep-17)

IIP

4.30%

(Aug-18)

4.80%

(Aug-17)

GDP

8.20%

(Jun-18)

5.60%

(Jun-17)

31 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

3.80%

(May-18)

7.70%

(Mar-18)

Quarter Ago

Inflow/Outflow

2346

-1806

4.92%

(Jun-18)

• According to a report tilted ‘The Emerging Affluent Study 2018–

Climbing the Prosperity Ladder’ by a prominent private bank, India has

emerged as the most investment-savvy economy in Asia. The report said

over two-thirds of the India’s affluent class prefer to use various

investment products to meet their financial goals. When it comes to

investing, saving and spending, there is an increase in the number of

people climbing the social ladder in Asia, Middle East and Africa. This

group is being called as ’emerging affluent’. The study covered views of

emerging affluent consumers from 11 markets across Asia, Africa and the

Middle East.

• The Prime Minister has signed a $75 billion bilateral currency swap

agreement with his Japanese counterpart Shinzo Abe. This is an

important measure towards stabilizing foreign exchange and enhancing

confidence in the Indian capital markets. The currency swap agreement

will take forward the economic cooperation between the two countries.

The amount under this facility can not only be used as and when the

need arises but will also help to reduce the cost of capital for Indian

entities when they access foreign capital markets.

• The Centre and states have apportioned Rs. 32,000 crore lying in the

integrated goods and services tax (IGST) pool for Oct 2018. The states'

share would be more than Rs. 15,000 crore. The amount would add to

the goods and services tax (GST) revenue of both the centre and states

for the month. The Centre and states have divided IGST funds for the

fifth time. Around Rs. 29,000 crore was settled in Sep 2018, Rs. 12,000

crore in Aug 2018, Rs. 50,000 crore in Jun 2018 and Rs. 35,000 crore in

Feb 2018.

Markets for You

• Asian equity markets mostly gained as investors pinned hopes on the

stimulus by the Chinese government to rescue the situation arising out of

the U.S.-China trade war. Meanwhile, the U.S. President said he is

hopeful of the nation’s upcoming meeting with China but also warned of

more tariffs if talks are not fruitful. Today (as of Oct 31), Asian markets

opened higher despite lower than expected manufacturing growth in

China in Oct 2018. Gains in Wall Street in the last session boosted the

indices. Nikkei and Hangseng grew 1.47% and 0.99%, respectively (as at

8.a.m. IST).

• As per the last close, European markets closed on mixed note amid

mixed bag of corporate earnings. Meanwhile, investors remained

cautious over trade dispute between the U.S. and China.

• As per the last close, U.S markets closed higher after fluctuating for

much of the session. Increase in consumer confidence in Oct 2018

boosted investor sentiment. Further, renewed concerns about trade war

between the U.S. and China was offset by U.S. President’s prediction that

the U.S. will reach a great trade deal with China.

• Domestic equity markets continued to be volatile and ended the day in

the red. The main reasons behind the fall were weak global cues because

of the ensuing U.S.-China trade dispute, mixed domestic quarterly

earnings, and the rupee’s weakness. Meanwhile, rift between the

Reserve Bank of India (RBI) and the government deepened. RBI deputy

governor said attempts of curbing the central bank’s autonomy could be

catastrophic and the finance minister responded by blaming RBI for

allowing banks to lend in excess and adding to the non-performing assets

problem.

• Key benchmark indices S&P BSE Sensex and Nifty 50 lost 0.52% and

0.51% to close at 33,891.13 and 10,198.40, respectively. S&P BSE Mid-

Cap gained 0.91%, while S&P BSE Small Cap increased 0.94%.

• On the BSE sectoral S&P BSE Information Technology was the major

gainer, up 1.71%, followed by S&P BSE Teck and S&P BSE Capital Goods,

up 1.66% and 0.95%, respectively. S&P BSE Industrials and S&P BSE

Realty gained 0.87% and 0.58%, respectively. S&P BSE Energy was the

major loser, down 2.73%, followed by S&P BSE Oil & Gas and S&P BSE

Metal, down 1.7% and 1.21%, respectively.

FII Derivative Trade Statistics 30-Oct

(Rs Cr) Buy

Sell Open Int.

Index Futures 4726.18 4446.74 24623.34

Index Options 69374.17 67146.78 51663.09

Stock Futures 18000.21 15921.92 80054.25

Stock Options 7709.42 7106.95 4456.50

Total 99809.98 94622.39 160797.18

30-Oct Prev_Day

Change

Put Call Ratio (OI) 1.49 1.51 -0.02

Indian Debt Market

Put Call Ratio(Vol) 0.73 0.71 0.03

30-Oct Wk. Ago Mth. Ago

Year Ago

Call Rate 6.45% 6.53% 6.51% 5.89%

CBLO 6.45% 6.48% 4.36% 5.96%

Repo 6.50% 6.50% 6.50% 6.00%

Reverse Repo 6.25% 6.25% 6.25% 5.75%

91 Day T-Bill 6.92% 6.93% 6.95% 6.10%

364 Day T-Bill 7.44% 7.45% 7.64% 6.21%

10 Year Gilt 7.83% 7.89% 8.02% 6.88%

G-Sec Vol. (Rs.Cr) 15695 33965 30033 44459

Currency Market Update

FBIL MIBOR 6.60% 6.60% 6.60% 6.00%

3 Month CP Rate 8.65% 8.20% 8.15% 6.79%

5 Year Corp Bond 8.80% 8.82% 9.02% 7.58%

1 Month CD Rate 7.06% 6.96% 6.62% 6.06%

3 Month CD Rate 7.52% 8.38% 7.43% 6.19%

1 Year CD Rate 8.36% 8.37% 8.40% 6.57%

Commodity Market Update

Currency 30-Oct Prev_Day

Change

USD/INR 73.57 73.42 0.15

GBP/INR 94.18 94.26 -0.08

EURO/INR 83.71 83.69 0.02

International News

JPY/INR 0.65 0.66 0.00

Commodity 30-Oct Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 66.13 66.44 73.11 54.06

Brent Crude($/bl) 75.82 79.56 83.21 60.94

Gold( $/oz) 1223 1230 1192 1276

Gold(Rs./10 gm) 31688 31909 30296 29269

Source: Thomson Reuters Eikon

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

31 October 2018

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Bond yield increased tracking weakness in the local currency that hit a

two-week low. However, further upside was restricted with plunge in

crude oil prices and the central bank bonds purchase plan under open

market operation in Nov.

• Yield on the 10-year benchmark paper (7.17% GS 2028) rose 2 bps to

7.83% compared with the previous close of 7.81% after trading in the

range of 7.81% to 7.84%.

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

Facility (LAF) stood at Rs. 3,876 crore (gross) on Oct 30 compared with a

borrowing of Rs. 5,746 crore (gross) on Oct 29. Sale of securities under

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

13,859 crore on Oct 29.

• Banks borrowed Rs. 4 crore under the central bank’s Marginal

Standing Facility on Oct 29 compared with no borrowing on Oct 26.

• Gold prices declined as the greenback firmed up against a basket of

currency.

• Brent Crude prices drifted lower amid intensifying trade war between

U.S. and China, which is hitting the demand outlook for oil.

• According to preliminary flash estimate from Eurostat, euro

area economy grew at a slower pace in the third quarter. Gross

domestic product expanded 0.2% sequentially after increasing 0.4% in

the second quarter.

• Report from Ministry of Internal Affairs and Communications showed

Japan's unemployment rate declined in Sep 2018. The jobless rate

dropped to 2.3% from 2.4% in Aug 2018. This was the lowest rate since

early 1990s. Expectations were for it remain unchanged at 2.4%.

Markets for You

• Nifty Nov 2018 Futures settled at 10,229.25, a premium of 30.85

points, above the spot closing of 10,198.40. The turnover on NSE’s

Futures and Options segment increased to Rs. 7,19,557.92 on Oct 30

• The Put-Call ratio stood at 0.80, compared with the previous close of

0.77.

• The Nifty Put-Call ratio stood at 1.49 compared with the previous close

of 1.51.

• India VIX improved 3.27% to 20.4750 from 19.8250 in the previous

trading session.

• Open interest on Nifty Futures stood at 22.75 million as against the

previous close at 23.01 million.

• The Indian rupee declined to a two-week low against the greenback as

the escalating trade war between U.S. and China dampened market

sentiments and hurt investors’ risk-taking appetite.

• The euro drifted down against dollar amid weak euro zone growth

outlook and political instability following the German Chancellor’s

decision of opting out of re-election as party chairwoman in December.

Thank you for

your time.