Mutual Fund News of 22 September 2020 – Nippon India Mutual Fund

Global Indices

Global Indices 21-Sep Prev_Day Abs. Change

% Change

Russell 3000 1,681 1,682 -1 -0.08

Nasdaq 10,779 10,793 -14 -0.13

FTSE 5,804 6,007 -203 -3.38

Nikkei

[1]

23,360 23,319 41 0.18

Hang Seng 23,951 24,455 -505 -2.06

Indian Indices 21-Sep Prev_Day Abs. Change

% Change

S&P BSE Sensex 38,034 38,846 -812 -2.09

Nifty 50 11,251 11,505 -254 -2.21

Nifty 100 11,367 11,640 -273 -2.34

Nifty 500 9,313 9,560 -247 -2.58

Nifty Bank 21,367 22,031 -664 -3.02

S&P BSE Power 1,672 1,708 -36 -2.13

S&P BSE Small Cap 14,747 15,300 -553 -3.61

S&P BSE HC 19,614 20,405 -791 -3.87

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

21-Sep 27.88 1.02 32.25 1.45

Month Ago 27.74 1.00 32.08 1.47

Year Ago 26.78 1.21 27.72 1.36

Nifty 50 Top 3 Gainers

Company 21-Sep Prev_Day

% Change

Kotak Bank 1288 1277 0.84

Infosys 1010 1002 0.77

TCS 2465 2450 0.63

Nifty 50 Top 3 Losers Domestic News

Company 21-Sep Prev_Day

% Change

IndusInd Bank 561 613 -8.58

Tata Motors 137 148 -7.07

Hindalco 167 180 -6.88

Advance Decline Ratio

BSE NSE

Advances 579 294

Declines 2194 1639

Unchanged 165 75

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* 39719

MF Flows** 16109

*21

Sep 2020; **16

Sep 2020

Economic Indicator

YoY(%) Current Year Ago

CPI

6.69%

(Aug-20)

3.28%

(Aug-19)

IIP

-10.40%

(Jul-20)

4.90%

(Jul-19)

GDP

-23.90%

(Jun-20)

5.20%

(Jun-19)

[1]

Data as on 18 Sep, 2020

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

22 September 2020

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

-57.30%

(Apr-20)

3.10%

(Mar-20)

Quarter Ago

Inflow/Outflow

-393

1824

6.27%

(May-20)

• Indian equity markets slumped with rising coronavirus cases at home and

abroad denting investor sentiment. Buying interest took a hit after the

International Consortium of Investigative Journalism reported on top-

secret Suspicious Activity Reports, worth more than $2 trillion globally. In

case of India, the U.S. Financial Crimes Enforcement Network at the U.S.

Treasury have so far established sender-receiver connections for 406

transactions involving all major banks. Market sentiments were also

affected by the passage of a controversial farm bill by lawmakers in the

upper house of parliament, which triggered protests by farmers at several

places.

• Key benchmark indices S&P BSE Sensex and Nifty 50 lost 2.09% and 2.21%

to close at 38,034.14 and 11,250.55 respectively.

• The overall market breadth on BSE was weak with 579 scrips advancing and

2,194 scrips declining. A total of 165 scrips remained unchanged.

• On the BSE sectoral front, all sectors lost. S&P BSE Telecom was the major

loser, down 5.77%, followed by S&P BSE Realty and S&P BSE Metal, down

5.7% and 4.75%, respectively. S&P BSE Auto and S&P BSE Healthcare lost

4.03% and 3.87% respectively.

• The government has increased the Minimum Support Prices (MSPs) for all

mandated Rabi crops for marketing season 2021-22. MSP for wheat has

been increased by Rs. 50 per quintal to Rs 1,975 per quintal while that for

barley has been hiked by Rs. 75 per quintal to Rs 1,600 per quintal. The

highest increase in MSP was announced for lentil which was increased by

Rs. 300 per quintal followed by gram and rapeseed & mustard whose price

was increased by Rs. 225 per quintal and safflower whose price was

increased by Rs. 112 per quintal.

• The government has upgraded its foodgrain production target at a record

301 million tonnes for the 2020-21 crop year. This is higher by 1.5%

compared to the output of the previous year. The upgradation comes due

to good monsoon rains and higher acreage in the kharif season.

• Capital market regulator Securities and Exchange Board of India (SEBI)

prescribed an Alternate Risk Management Framework (ARMF) to protect

investors in case of near zero/negative prices in commodities or their

futures. SEBI added that clearing corporations need to ensure that their

systems are ready to implement the ARMF within 60 days.

• The Lok Sabha passed the Foreign Contribution (Regulation) Amendment

Bill 2020 by voice vote. Now it will be binding upon all the office bearers of

non-governmental organizations (NGOs) that seek contribution from

foreign soil to get an Aadhaar card.

• HCL Technologies has announced to acquire Melbourne-headquartered

DWS Ltd. for a total equity value pay-out consideration of 158.2 million

Australian Dollars. HCL Technologies takes this step towards enhancing its

digital initiatives in the Australia and New Zealand region. The transaction is

expected to close in Dec 2020, subject to closing conditions, including

regulatory approvals.

• JSW Steel has announced to raise up to $1 billion through a combination of

offshore bonds and loans, a corpus that could come in handy if the

pandemic were to hasten consolidation in the industry.

• Asian markets closed in the red with investors maintaining cautious stance

on U.S. fiscal stimulus negotiations, COVID-19 vaccine development and

ongoing tensions between Washington and Beijing. Worries about the

global economic recovery and a surge in novel coronavirus cases across

Europe also weighed on markets. Today (as on Sep 22), Asian markets were

trading lower following decline on the Wall Street overnight. While Nikkei is

closed on holiday, Hang Seng was trading lower 0.97% (as at 8 a.m. IST).

• European markets plummeted amid rising worries about a surge in

coronavirus cases across several parts of the region, and fears of

widespread lockdown measures. The sell-off in bank stocks amid allegations

of illegal accounts and funds transfers by several leaders over nearly two

decades.

• U.S. markets plunged on rising worries about surging coronavirus cases in

several countries across Europe. Tensions between the U.S. and China also

contributed to the bearish sentiment in the market.

Markets for You

FII Derivative Trade Statistics 21-Sep

(Rs Cr) Buy

Sell Open Int.

Index Futures 6014.68 4114.65 10211.61

Index Options 142005.58 140883.25 62431.34

Stock Futures 24402.61 25851.80 85487.17

Stock Options 9410.58 9455.53 8232.82

Total 181833.45 180305.23 166362.94

21-Sep Prev_Day

Change

Put Call Ratio (OI) 1.07 1.37 -0.29

Put Call Ratio(Vol) 0.93 1.02 -0.08

21-Sep Wk. Ago Mth. Ago

Year Ago

Call Rate 3.43% 3.43% 3.43% 5.37%

T-Repo 3.75% 3.20% 3.01% 5.36%

Repo 4.00% 4.00% 4.00% 5.40%

Reverse Repo 3.35% 3.35% 3.35% 5.15%

91 Day T-Bill 3.35% 3.30% 3.20% 5.30%

364 Day T-Bill 3.67% 3.60% 3.51% 5.55%

10 Year Gilt 6.04% 6.02% 6.14% 6.79%

G-Sec Vol. (Rs.Cr) 17669 30580 47140 82191

FBIL MIBOR

[1]

3.74% 3.71% 3.77% 5.45%

3 Month CP Rate 3.60% 3.55% 3.40% 5.70%

5 Year Corp Bond 6.74% 6.73% 6.85% 7.68%

1 Month CD Rate 3.30% 3.33% 3.11% 5.44%

3 Month CD Rate 3.44% 3.32% 3.21% 5.43%

1 Year CD Rate 3.90% 3.87% 3.80% 6.35%

Currency 21-Sep Prev_Day

Change

USD/INR 73.32 73.30 0.02

GBP/INR 95.03 95.06 -0.03

EURO/INR 86.96 86.88 0.08

JPY/INR 0.70 0.70 0.00

Commodity 21-Sep Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 39.21 37.18 42.27 57.87

Brent Crude($/bl) 39.72 38.41 44.13 66.12

Gold( $/oz) 1913 1956 1939 1517

Gold(Rs./10 gm) 51258 51260 51840 37390

Source: Refinitiv

[1]

Data as on 18 Sep, 2020

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

Readers are requested to click here for ICRA Analytics Ltd disclaimer

22 September 2020

Derivative Statistics- Nifty Options

Disclaimer:

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International News

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 Nippon Life India Asset

Management Limited (NAM India) 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; NAM India does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials

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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.

• Nifty Sep 2020 Futures stood at 11,256.10, a premium of 5.55 points above

the spot closing of 11,250.55. The turnover on NSE’s Futures and Options

segment rose to Rs. 18,07,273.05 crore on September 21, 2020, compared

with Rs. 13,24,093.29 crore on September 18, 2020.

• The Put-Call ratio stood at 0.95 compared with the previous session’s close

of 0.91.

• The Nifty Put-Call ratio stood at 1.07 compared with the previous session’s

close of 1.37.

• Open interest on Nifty Futures stood at 10.98 million, compared with the

previous session’s close of 11.71 million.

• Bond yields were almost steady after the government's conversion auction

added to higher duration supply, while market participants await more

clarity on open market bond purchases from the Reserve Bank of India (RBI).

• Yield on the 10-year benchmark paper (5.77% GS 2030) inched up 1 bps to

6.02% from the previous close of 6.01% after moving in a range of 6.00% to

6.02%.

• RBI conducted the switch/conversion auction of government securities and

accepted amount of sourced and destination securities were Rs. 8576.03

crore and Rs. 8829.24 crore.

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

facility on Sep 18, 2020 compared with Rs. 70 crore borrowing on Sep 17,

2020.

• The Indian rupee in the spot trade rose against the greenback following

gains in regional currencies. However, losses in the domestic equity market

neutralized most of the gains.

• The euro weakened against the greenback as persisting concerns over the

COVID-19 pandemic dampened investor risk sentiment.

• Gold prices fell due to strengthening of the greenback.

• Brent crude prices fell as persisting concerns over the COVID-19 pandemic

hit the demand outlook of the commodity.

• U.S. leading economic index surged 1.2% in Aug 2020, slower than 2.0% in

Jul 2020. While coincident economic index went up 0.6%, lagging economic

index fell by 0.6% in Aug 2020.

• Data published by the property website Rightmove showed, UK house

inflation accelerate to 5% in Sep 2020 from 4.6% in Aug 2020. This was the

fastest growth in 4 years driven by higher demand for larger homes.

• China kept its benchmark rates for the fifth consecutive month as the

economy continued to record robust recovery from the downturn caused by

the coronavirus pandemic.

• According to the University of Michigan, preliminary data showed the U.S.

consumer sentiment index surged to 78.9 in Sep 2020 from 74.1 in Aug

2020.

Markets for You