Mutual Fund News of 19th September 2018

19 Sep 2018

Markets for You

Global Indices

Global Indices 18-Sep Prev_Day Abs. Change

% Change

Dow Jones 26,247 26,062 185 0.71

Nasdaq 7,956 7,896 60 0.76

FTSE 7,300 7,302 -2 -0.03

Nikkei 23,421 Closed NA NA

Hang Seng 27,085 26,933 152 0.56

Indian Indices 18-Sep Prev_Day Abs. Change

% Change

S&P BSE Sensex 37,291 37,586 -295 -0.78

Nifty 50 11,279 11,378 -99 -0.87

Nifty 100 11,546 11,657 -110 -0.95

Nifty Bank 26,441 26,820 -379 -1.41

SGX Nifty 11,294 11,401 -107 -0.94

S&P BSE Power 2,069 2,111 -42 -2.00

S&P BSE Small Cap 16,412 16,663 -251 -1.51

S&P BSE HC 15,946 16,062 -116 -0.72

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

18-Sep 23.81 1.20 27.42 1.19

Month Ago 24.69 1.16 28.11 1.17

Year Ago 24.25 1.20 26.42 0.94

Nifty 50 Top 3 Gainers

Company 18-Sep Prev_Day

% Change

HUL 1665 1605 3.71

Yes Bank 324 319 1.55

ONGC 174 172 1.28

Nifty 50 Top 3 Losers Domestic News

Company 18-Sep Prev_Day

% Change

SBI 274 285 -4.03

Indiabulls HFC 1158 1201 -3.55

HPCL 249 258 -3.46

Advance Decline Ratio

BSE NSE

Advances 869 498

Declines 1826 1326

Unchanged 153 83

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -5548

MF Flows** 80794

*18

Sep 2018; **14

Sep 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)

19 September 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

135

4.87%

(May-18)

• Indian equity markets closed lower with selling pressure triggered by

comments by Saudi Arabia regarding the nation being comfortable in the

event of the brent crude oil prices rises above $80 per barrel level. The

increase in global crude oil prices is likely to put pressure on India's

import bill and weighs on the domestic currency. Additionally, the

announcement of fresh tariff by U.S. on $200 billion worth Chinese

imports continued to dent market sentiments.

• Markets were also dragged by selling pressure in banking stocks after

government proposed amalgamation of two PSU banks with a much

larger PSU Bank in an all-stock deal.

• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.78% and

0.87% to close at 37290.67 and 11278.90, respectively. S&P BSE Mid Cap

and S&P BSE Small Cap fell 1.49% and 1.51%, respectively.

• The overall market breadth on BSE was weak with 1826 scrips declining

and 869 scrips advancing. A total of 153 scrips remained unchanged.

• Securities and Exchange Board of India (SEBI) has approved new ‘know

your customer’ (KYC) norms for foreign portfolio investors (FPI) and

would soon issue a revised circular on KYC norms for FPIs. Also, the

market regulator has shortened the time taken for a security to list on an

exchange to three days (T+3) from the date of closure of its initial public

offer (IPO). It has also permitted participation of foreign investors’ in

India’s commodities market except for sensitive ones. SEBI also stated

that the mutual fund expenses will be brought down taking into

consideration economies of scale.

• According to the media reports, the Securities and Exchange Board of

India (SEBI) has delayed the deadline for the extension of trading hours

which was earlier decided to be Oct 1, 2018. As per the reports, the

discussions are underway, and the stock exchanges have not yet reached

at a consensus with brokers. The proposal is that trade hours could be

stretched in order to align domestic market better with the global

markets.

• According to the data from the Reserve Bank of India (RBI), financial

liabilities to Indian households almost doubled in FY18 rising 80% to Rs.

6.74 lakh crore as against Rs. 3.75 lakh crore in FY17. Advances by banks

to households rose 71.5% to Rs. 4.3 lakh crore that reversed consecutive

four-year declines in households’ bank borrowings.

• The merger of Bank of Baroda, Vijaya Bank and Dena Bank has been

proposed by the government. The proposal aims at creation of the

country’s third-biggest lender. The boards of all the three banks will take

the proposal into consideration.

• Cognizant announced that it has bought Advanced Technology Group

for an undisclosed amount. The company stated that the acquisition

would help expand its consulting capabilties on the Salesforce platform.

• The South African Health Products Regulatory Authority has given

approval to Aurobindo Pharma to market its Dolutegravir, Lamivudine

and Tenofovir Disoproxil Fumarate (DLT) tablets. These tablets are first-

line regimen for HIV patients.

• Asian markets mostly traded up on improved crude oil prices and

weaker yen. Investors also remained optimist that China may introduce

some stimulus measures to support the economic growth. However, U.S.

plan to impose more tariffs on Chinese goods kept investors cautious.

Today (as of Sep 19), Asian markets opened higher following gains in

Wall Street in the last session. Investors mostly shrugged off escalating

U.S. and China trade tensions. Nikkei and Hangseng grew 1.43% and

0.45%, respectively (as at 8.a.m. IST).

• As per the last close, European markets closed with slight gains.

Investors remained cautious amid trade war concerns between the U.S.

and China. U.S. President has initially set tariffs at 10% as against

previously earmarked tariff of 25%. However, the tariffs are set to rise to

25% on Jan 1, 2019.

• As per the last close, U.S markets closed almost higher as investors

likely felt relief that the latest tariffs on U.S. and Chinese goods are not

as bad as previously feared. Gains in technology and steel stocks boosted

the indices.

Markets for You

FII Derivative Trade Statistics 18-Sep

(Rs Cr) Buy

Sell Open Int.

Index Futures 2659.49 3276.10 24871.02

Index Options 95767.75 97087.53 83898.56

Stock Futures 11152.67 11881.53 89916.68

Stock Options 10304.35 10204.50 9745.45

Total 119884.26 122449.66 208431.71

18-Sep Prev_Day

Change

Put Call Ratio (OI) 1.20 1.28 -0.09

Indian Debt Market

Put Call Ratio(Vol) 0.91 0.87 0.04

18-Sep Wk. Ago Mth. Ago

Year Ago

Call Rate 6.54% 6.49% 6.44% 5.94%

CBLO 6.50% 6.53% 5.84% 6.01%

Repo 6.50% 6.50% 6.50% 6.00%

Reverse Repo 6.25% 6.25% 6.25% 5.75%

91 Day T-Bill 7.00% 6.88% 6.78% 6.09%

364 Day T-Bill 7.62% 7.47% 7.28% 6.23%

10 Year Gilt 8.14% 8.18% 7.86% 6.61%

G-Sec Vol. (Rs.Cr) 52133 29824 24619 42871

Currency Market Update

FBIL MIBOR 6.67% 6.70% 6.46% 6.00%

3 Month CP Rate 7.95% 7.90% 7.70% 6.66%

5 Year Corp Bond 8.98% 8.96% 8.72% 7.36%

1 Month CD Rate 7.48% 7.17% 6.53% 6.09%

3 Month CD Rate 7.49% 7.28% 7.19% 6.14%

1 Year CD Rate 8.39% 8.36% 7.92% 6.51%

Commodity Market Update

Currency 18-Sep Prev_Day

Change

USD/INR 72.38 72.55 -0.17

GBP/INR 95.29 94.94 0.35

EURO/INR 84.77 84.40 0.37

International News

JPY/INR 0.65 0.65 0.00

Commodity 18-Sep Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 69.82 69.24 65.88 49.83

Brent Crude($/bl) 79.19 78.16 69.33 56.24

Gold( $/oz) 1198 1198 1184 1307

Gold(Rs./10 gm) 30737 30605 29361 29723

Source: Thomson Reuters Eikon

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

19 September 2018

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty Sep 2018 Futures settled at 11310.2, a premium of 31.30 points,

above the spot closing of 11,278.90. The turnover on NSE’s Futures and

Options segment improved to Rs. 12,40,622.18 on Sep 18 compared

with Rs. 7,94,587.42 on Sep 17.

• The Put-Call ratio stood at 0.80, compared with the previous session’s

close of 0.81.

• The Nifty Put-Call ratio stood at 1.20 compared with the previous

session’s close of 1.28.

• Open interest on Nifty Futures stood at 27.96 million as against the

previous session’s close at 27.86 million.

• After falling in the last three consecutive sessions, bond yields rose

following plunge in Indian rupee to a record low against the U.S. dollar

that increased worries of foreign fund outflows.

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

bps to 8.14% compared with the previous closing of 8.10% after trading

in a wide range of 8.04% to 8.14%.

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

Facility (LAF) stood at Rs. 8,660 crore (gross) on Sep 18 compared with a

borrowing of Rs. 20,256 crore (gross) on Sep 17. Sale of securities under

the Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 9,930

crore on Sep 17.

• Banks borrowed Rs. 2,600 crore under the central bank’s Marginal

Standing Facility on Sep 17 compared with borrowing of Rs. 300 crore on

Sep 14.

• The Indian rupee plunged against the U.S. dollar as rising crude oil

prices and escalating trade conflicts between the U.S. and China

dampened demand for the domestic currency. The rupee declined

0.64% to close at 72.98 per dollar from the previous close of 72.51.

• The euro rose against the U.S. dollar as escalating trade tension

between the U.S. and China pushed greenback lower against the euro.

Euro was last seen trading at $1.1708 compared with the previous close

of $1.1683.

• Gold prices inched down on concerns over rate hike decision of

Federal Reserves in its upcoming policy meet.

• Brent crude prices moved up after Saudi Arabia- one of the major oil

producing companies stated that the country is comfortable with rising

oil prices.

• According to data from the statistical office ISTAT, Italy's industrial

orders fell again by 2.3% in Jul 2018 and at the fastest pace in six months

as against 1.5% fall in Jun 2018 whereas it grew 3.3% in May 2018.

• According to the preliminary data from the Census and Statistics

Department, Hong Kong's unemployment rate held steady for fourth

straight month at 2.8% in the Jun 2018 to Aug 2018 period. The report

also stated that the employment grew by around 9,700 persons to 3.88

million.

• According to the data from the Enterprise Singapore, the country’s

non-oil domestic exports grew 5% YoY in Aug 2018 as against 11% rise in

Jul 2018. Exports of electronic products fell 1.5% in Aug as compared

with 5.8% fall in the previous month.

Markets for You

Thank you for

your time.