Markets For You of 21st September 2018 – Nippon India Mutual Fund

21 Sep 2018

Markets for You

Global Indices

Global Indices 20-Sep Prev_Day Abs. Change

% Change

Dow Jones 26,657 26,406 251 0.95

Nasdaq 8,028 7,950 78 0.98

FTSE 7,367 7,331 36 0.49

Nikkei 23,675 23,673 2 0.01

Hang Seng 27,478 27,407 70 0.26

Indian Indices 19-Sep Prev_Day Abs. Change

% Change

S&P BSE Sensex 37,121 37,291 -169 -0.45

Nifty 50 11,234 11,279 -45 -0.39

Nifty 100 11,500 11,546 -46 -0.40

Nifty Bank 26,277 26,441 -164 -0.62

SGX Nifty 11,278 11,294 -17 -0.15

S&P BSE Power 2,058 2,069 -11 -0.52

S&P BSE Small Cap 16,251 16,412 -161 -0.98

S&P BSE HC 15,852 15,946 -93 -0.59

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

19-Sep 23.85 1.20 27.31 1.19

Month Ago 24.69 1.16 28.11 1.17

Year Ago 24.15 1.20 26.40 0.94

Nifty 50 Top 3 Gainers

Company 19-Sep Prev_Day

% Change

BPCL 365 355 2.80

Coal India 281 273 2.73

GAIL 385 375 2.60

Nifty 50 Top 3 Losers Domestic News

Company 19-Sep Prev_Day

% Change

Bajaj Finserv 6312 6528 -3.30

IndusInd Bank 1805 1862 -3.09

Zee Ente. 451 465 -2.96

Advance Decline Ratio

BSE NSE

Advances 917 589

Declines 1758 1223

Unchanged 170 81

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -6652

MF Flows** 80909

*19

Sep 2018; **17

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)

21 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

114

-1104

4.87%

(May-18)

• The domestic equity market ended in the red as the recent weakness in

the rupee continued to worry investors. The indices saw the lowest

closing in around two months. Rupee has been hit by the strength in the

U.S. dollar and rising global crude oil prices, which reached two-month

high on Sep 19 on supply concerns since U.S. sanctions on Iran are slated

to take effect. However, the rupee managed to recover to some extent

against the greenback on hopes that the government will intervene and

soon announce measures for preventing further currency downside.

• Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.45% and

0.39% to close at 37,121.22 and 11,234.35, respectively. S&P BSE Mid-

Cap and S&P BSE Small Cap declined 0.72% and 0.98%, respectively.

• On the BSE sectoral front, S&P BSE Metal stood as the major gainer, up

1.25% followed by S&P BSE Oil & Gas that grew 0.98%. S&P BSE Basic

Materials and S&P BSE Information Technology grew 0.2% and 0.15%.

The other two sectors to grow were S&P BSE Energy and S&P BSE Teck,

up 0.14% and 0.07%, respectively.

• In order to promote ease of doing business, the government has made

procedures simple under the Merchandise Exports from India Scheme

(MEIS). Under the scheme, traders can get export incentives. MEIS gives

duty benefits based on the product and country. The process of system

driven approval of the MEIS claim applications in respect of exports

made through electronic data interface shipping bills will start from Sep

20, 2018.

• The government may announce import curbs on many non-essential

items, according to media reports. Finance minister had said last week

the government will ease regulations for raising overseas borrowing and

put limitations on non-essential imports as part of efforts to check rising

current account deficit and a falling rupee.

• The National Bank for Agriculture and Rural Development (NABARD)

has given approval to Rs. 65,634.93 crore loan for 93 prioritised irrigation

projects. These projects come under the Pradhan Mantri Krishi Sinchai

Yojana (PMKSY). NABARD is funding the share that belongs to the centre

and states in 99 prioritised irrigation projects through long term

irrigation fund. The projects are expected to be complete by 2019.

• According to media reports, Mitsubishi has entered into a partnership

with Google to embed the Android operating system in its vehicles.

• According to media reports, Moody's Investors Service has maintained

the outlook on the ratings of YES Bank as stable. The global credit rating

agency expects that the bank can maintain low credit costs over the next

12-18 months.

• According to media reports, Aditya Birla Group has decided to sell

Aditya Birla Retail to home-grown private equity fund Samara Capital and

global e-commerce giant Amazon.

• According to media reports, Computer Age Management Services

(CAMS), which is a SEBI mutual funds transfer agency has added 2 million

registered users. It needs to be noted that CAMS had added 10 lakh new

registered investors within a short span of one year.

• Asian equity markets were subdued as the trade war between China

and U.S., which was till now limited to the two countries’ officials, has

now engulfed leading businessmen. A global e-commerce giant belonging

to China and listed in the U.S. as well said it has cancelled plans to create

one million jobs in the U.S. This overshadowed positive Wall Street cues

overnight. Today (as of Sep 21), Asian markets opened higher following

record highs on Wall Street in the last session. Nikkei and Hangseng grew

0.56% and 0.59%, respectively (as at 8.a.m. IST).

• As per the last close, European markets closed higher following gains in

banking and mining stocks. Better than expected U.K. retail sales report in

Aug 2018 boosted market sentiment. Further, it seems that investors

shrugged off concerns over the trade war between the U.S. and China.

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

shrugged off escalating U.S. and China trade tensions. Reports that initial

jobless claims fell to lowest level in nearly fifty years for the week ended

Sep 15 and continued increase in leading economic index in Aug boosted

market sentiment.

Markets for You

FII Derivative Trade Statistics 19-Sep

(Rs Cr) Buy

Sell Open Int.

Index Futures 4130.75 3165.76 26088.27

Index Options 162967.98 161430.14 85940.78

Stock Futures 13963.09 15124.92 89686.08

Stock Options 11817.36 11863.13 9998.05

Total 192879.18 191583.95 211713.18

19-Sep Prev_Day

Change

Put Call Ratio (OI) 1.14 1.20 -0.06

Indian Debt Market

Put Call Ratio(Vol) 0.87 0.91 -0.04

19-Sep Wk. Ago Mth. Ago

Year Ago

Call Rate 6.60% 6.45% 6.44% 5.96%

CBLO 6.46% 6.32% 5.84% 6.00%

Repo 6.50% 6.50% 6.50% 6.00%

Reverse Repo 6.25% 6.25% 6.25% 5.75%

91 Day T-Bill 7.06% 7.09% 6.78% 6.08%

364 Day T-Bill 7.63% 7.66% 7.28% 6.23%

10 Year Gilt 8.07% 8.13% 7.86% 6.59%

G-Sec Vol. (Rs.Cr) 43175 41095 24619 35501

Currency Market Update

FBIL MIBOR 6.65% 6.59% 6.46% 6.05%

3 Month CP Rate 8.05% 7.95% 7.70% 6.67%

5 Year Corp Bond 8.86% 8.91% 8.72% 7.40%

1 Month CD Rate 7.51% 7.12% 6.53% 6.08%

3 Month CD Rate 7.51% 7.25% 7.19% 6.15%

1 Year CD Rate 8.39% 8.39% 7.92% 6.49%

Commodity Market Update

Currency 19-Sep Prev_Day

Change

USD/INR 72.68 72.38 0.30

GBP/INR 95.59 95.29 0.30

EURO/INR 84.91 84.77 0.14

International News

JPY/INR 0.65 0.65 0.00

Commodity 20-Sep Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 70.72 70.32 66.45 50.24

Brent Crude($/bl) 79.42 79.96 70.30 58.24

Gold( $/oz) 1207 1205 1190 1301

Gold(Rs./10 gm)* 30722 30478 29361 29661

Source: Thomson Reuters Eikon

*As on 19-Sep-18

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

21 September 2018

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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

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty Sep 2018 Futures settled at 11,272.80, a premium of 38.45

points, above the spot closing of 11,234.35. The turnover on NSE’s

Futures and Options segment improved to Rs. 20,50,327.67 on Sep 19

compared with Rs. 12,40,622.18 on Sep 18.

• The Put-Call ratio stood at 0.79, compared with the previous session’s

close of 0.80.

• The Nifty Put-Call ratio stood at 1.14 compared with the previous

session’s close of 1.20.

• Open interest on Nifty Futures stood at 27.63 million as against the

previous session’s close at 27.96 million.

• Bond yield eased after rupee recovered from the last session’s record

low as the government is expected to intervene and undertake

measures to prevent the local currency from witnessing further losses.

• Yield on the 10-year benchmark paper (7.17% GS 2028) declined 7 bps

to 8.07% compared with the previous closing of 8.14% after trading in a

wide range of 8.06% to 8.14%.

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

Facility (LAF) stood at Rs. 4,995 crore (gross) on Sep 19 compared with a

borrowing of Rs. 8,660 crore (gross) on Sep 18. Sale of securities under

the Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 5,626

crore on Sep 18.

• Banks borrowed Rs. 150 crore under the central bank’s Marginal

Standing Facility on Sep 18 compared with borrowing of Rs. 2,600 crore

on Sep 17.

• The Indian rupee recovered against the greenback with rising hopes

that the government will intervene and soon announce measures for

preventing further currency downside.

• The euro rose against the greenback as worries of escalating trade

tensions between U.S. and China eased to some extent on hopes that

the adverse impact of the ongoing trade row will take some time to get

reflected in the corporate earnings results.

• Gold prices inched higher with the intensifying trade friction between

U.S. and China.

• Brent crude prices stayed close to the 79-mark over supply tightening

tension from the impending U.S. sanction on Iran, which will be formally

applicable from Nov.

• The Organization for Economic Cooperation & Development (OECD)

downgraded its global growth projections for both 2018 and 2019.

According to OCED, the global economy will grow 3.7% in 2018 and

2019. OECD earlier in May had projected global growth at 3.8% for 2018

and 3.9% in 2019. On a separate note, OECD projected the U.S. to grow

2.9% in 2018 and 2.7% in 2019. For China, OECD projected the growth

rate at 6.7% for 2018 and 6.4% for 2019.

• Data from the U. Commerce Department showed that housing starts

in U.S. grew 9.2% to an annual rate of 1.282 million in Aug 2018 from

the revised estimate of 1.174 million in Jul 2018. However, building

permits fell 5.7% to an annual rate of 1.229 million in Aug 2018 from a

revised 1.303 million in Jul 2018.

Markets for You

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