Mutual Fund News of 28 September 2020 – Nippon India Mutual Fund

Global Indices

Global Indices 25-Sep Prev_Day Abs. Change

% Change

Russell 3000 1,702 1,666 36 2.17

Nasdaq 10,914 10,672 241 2.26

FTSE 5,843 5,823 20 0.34

Nikkei 23,205 23,088 117 0.51

Hang Seng 23,235 23,311 -76 -0.32

Indian Indices 25-Sep Prev_Day Abs. Change

% Change

S&P BSE Sensex 37,389 36,554 835 2.28

Nifty 50 11,050 10,806 245 2.26

Nifty 100 11,176 10,922 254 2.33

Nifty 500 9,156 8,945 211 2.36

Nifty Bank 20,982 20,457 526 2.57

S&P BSE Power 1,613 1,580 33 2.09

S&P BSE Small Cap 14,496 14,168 327 2.31

S&P BSE HC 19,406 18,958 448 2.37

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

25-Sep 27.39 1.04 32.12 1.44

Month Ago 28.40 0.98 32.43 1.46

Year Ago 26.89 1.20 25.92 1.34

Nifty 50 Top 3 Gainers

Company 25-Sep Prev_Day

% Change

Bajaj Finserv Limited 5803 5426 6.96

IndusInd Bank 515 490 5.02

HCL Tech 828 788 5.00

Nifty 50 Top 3 Losers Domestic News

Company 25-Sep Prev_Day

% Change

SBI Life Insurance Company Limite

797 804 -0.91

BPCL 376 377 -0.40

United Phos 505 505 -0.10

Advance Decline Ratio

BSE NSE

Advances 1970 1525

Declines 682 350

Unchanged 166 96

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* 32113

MF Flows** 16109

*25

Sep 2020; **16

Sep 2020

Economic Indicator

YoY(%) Current Year Ago

CPI

6.69%

(Aug-20)

3.28%

(Aug-19)

IIP

-10.39%

(Jul-20)

4.90%

(Jul-19)

GDP

-23.90%

(Jun-20)

5.20%

(Jun-19)

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

28 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

-1666

6.27%

(May-20)

• Indian equity markets surged as strong buying interest in tech stocks

outweighed selling pressure in financial counters after the government

extended the suspension of bankruptcy filings capped the upside. The

suspension of bankruptcy filings, aimed at helping businesses stay afloat

amid the pandemic, will refrain banks from initiating insolvency

proceedings against any borrower for defaults arising on or after Mar 25,

2020.

• Key benchmark indices S&P BSE Sensex and Nifty 50 gained 2.28% and

2.26% to close at 37,388.66 and 11,050.25 respectively.

• The overall market breadth on BSE was strong with 1,970 scrips advancing

and 682 scrips declining. A total of 166 scrips remained unchanged.

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

major gainer, up 5.73%, followed by S&P BSE Teck and S&P BSE IT, up 4.02%

and 3.63%, respectively. S&P BSE Auto and S&P BSE Capital Goods gained

3.4% and 3.1% respectively.

• Data from the Ministry of Statistics and Programme Implementation

showed that the number of new enrolments under the Employees

Provident Fund scheme rose to 6.10 lakh in July 2020 from 5.38 lakh in the

previous month. The number of exited members who rejoined and

resubscribed in Jul 2020 also increased to 5.48 lakh from 5.15 lakh in Jun

2020. However, the number of members who ceased subscribing during

the month fell to 3.13 lakh in Jul 2020 from 5.71 lakh in the previous

month. As a result, the net enrollments under the Employees Provident

Fund scheme stood at 8.45 lakh in Jul 2020 which is the highest so far in

this fiscal.

• The Union Home Ministry gave approval to states to spend up to 50%

money from the State Disaster Response Fund (SDRF) to combat the

COVID-19 pandemic.

• According to the Ministry of Heavy Industries & Public Enterprises, the

Indian government has sanctioned 670 Electric buses in the states of

Maharashtra, Goa, Gujarat and Chandigarh and 241 Charging Stations in

Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Port Blair under Phase-II

of FAME India (Faster Adoption and Manufacturing of (Hybrid &) Electric

Vehicles in India) Scheme.

• According to the Securities and Exchange Board of India, registered

investment advisors (RIAs) can charge a maximum fee of up to Rs. 1,50,000

per annum per client across all of the services. As a percentage of assets

under advice, they can charge 2.5%. Also, existing clients can opt for either

the advisory or distribution services of the RIA at a group or family level.

However, clients cannot be forced to redeem existing assets under advisory

or distribution.

• Bayer announced that it has partnered with private sector lender Axis Bank

for its better life farming (BLF) initiative in India to provide smallholder

farmers and rural farming communities with enhanced and comprehensive

financial solutions.

• According to media reports, Vodafone Group Plc has secured an

international arbitration case against the Indian government in a $2 billion

tax dispute.

• Asian markets largely remained higher, led by media reports that U.S.

Democrats are drafting a new $2.4 trillion relief bill, aimed at resuming the

stalled stimulus talks with Republicans. Nonetheless, gains were restricted

by growing concerns over fresh coronavirus lockdowns in Europe and

political uncertainty from the U.S. presidential election set for November.

Today (as on Sep 28) markets are trading higher with investors taking

positive cues from encouraging Chinese industrial profit data for Aug 2020.

Both Nikkei and Hang Seng are up 0.52% and 0.30% (as at 8:00 AM IST),

respectively.

• European markets closed lower dragged by worries over surging

coronavirus cases across several parts of the region and fresh lockdown

restrictions. Continued uncertainty about the pace of economic recovery

also weighed on sentiment.

• U.S. markets surged as notable strength was seen in tech stocks and

investors shrugging off lower than expected increase in durable goods

orders in the month of Aug.

Markets for You

FII Derivative Trade Statistics

25-Sep

(Rs Cr) Buy

Sell Open Int.

Index Futures 6432.25 8231.53 6035.06

Index Options 333326.19 330416.71 47625.00

Stock Futures 25434.04 24940.37 72002.65

Stock Options 2554.50 2409.71 1466.70

Total 367746.98 365998.32 127129.41

25-Sep Prev_Day

Change

Put Call Ratio (OI) 1.31 0.78 0.53

Put Call Ratio(Vol) 0.87 0.90 -0.03

25-Sep Wk. Ago Mth. Ago

Year Ago

Call Rate 3.41% 3.41% 3.43% 5.33%

T-Repo 3.23% 3.22% 3.09% 5.22%

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% 3.31% 3.15% 5.37%

364 Day T-Bill 3.70% 3.63% 3.50% 5.57%

10 Year Gilt 6.05% 6.03% 6.16% 6.76%

G-Sec Vol. (Rs.Cr) 24384 37427 34741 29494

FBIL MIBOR 3.71% 3.74% 3.77% 5.45%

3 Month CP Rate 3.60% 3.55% 3.45% 6.05%

5 Year Corp Bond 6.76% 6.76% 6.87% 7.50%

1 Month CD Rate 3.39% 3.34% 3.13% 5.50%

3 Month CD Rate 3.54% 3.28% 3.45% 5.83%

1 Year CD Rate 4.01% 3.90% 3.77% 6.63%

Currency 25-Sep Prev_Day

Change

USD/INR 73.73 73.92 -0.19

GBP/INR 94.06 93.87 0.19

EURO/INR 86.04 86.14 -0.10

JPY/INR 0.70 0.70 0.00

Commodity 25-Sep Wk Ago

Mth. Ago

Year Ago

NYMEX Crude($/bl) 40.01 41.04 43.12 56.32

Brent Crude($/bl) 40.83 41.97 46.80 63.30

Gold( $/oz) 1860 1950 1928 1504

Gold(Rs./10 gm) 49589 51619 51440 38006

Source: Refinitiv

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

28 September 2020

Derivative Statistics- Nifty Options

Disclaimer:

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Commodity Prices

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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 may reflect NAM India’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

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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

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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.

• Nifty Oct 2020 Futures stood at 11,042.20, a discount of 8.05 points below

the spot closing of 11,050.25. The turnover on NSE’s Futures and Options

segment fell to Rs. 12,85,399.44 crore on September 25, 2020, compared

with Rs. 43,02,566.44 crore on September 24, 2020.

• The Put-Call ratio remained unchanged compared with the previous

session’s close of 0.83.

• The Nifty Put-Call ratio stood at 1.31 compared with the previous session’s

close of 0.78.

• Open interest on Nifty Futures stood at 8.33 million, compared with the

previous session’s close of 11.89 million.

• Bond yields rose after Reserve Bank of India (RBI) almost fully devolves a

government security (5.77% GS 2030) on primary dealers for the third

consecutive auction.

• Yield on the 10-year benchmark paper (5.77% GS 2030) rose 5 bps to close

at 6.04% from the previous close of 5.99%.

• RBI conducted the auction of government securities- 5.09% GS 2022, 5.77%

GS 2030, GoI FRB 2033 and 6.80% GS 2060 for an aggregate amount of Rs.

30,000 crore, which was oversubscribed but with devolvement of Rs.

17,863.897 crore on primary dealers. The cut off stood at Rs. 101.29 (YTM:

4.2156%), Rs. 98.23 (YTM: 6.0095%), Rs. 95.77 (YTM: 5.1897%) and Rs. 100

(YTM: 6.7995%). Green-shoe of Rs. 1945.117 crore was exercised in 6.80%

GS 2060.

• According to the Scheduled Banks’ Statement of Position in India as on Sep

11, 2020 the deposit growth and credit growth on a yearly basis stood at

11.99% and 5.26% respectively.

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

gains in the domestic equity market. The rupee closed at 73.61 per U.S.

dollar, up 0.39% compared to the previous closing of 73.90 per U.S. dollar.

• The euro weakened against the greenback as increase in coronavirus

infection cases in Europe and uncertainty over the upcoming U.S.

Presidential elections dampened investor risk sentiment.

• Gold prices fell as increase in coronavirus infection cases and uncertainty

over the next U.S. stimulus to aid the economy boosted the safe haven

appeal of the greenback.

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

demand outlook of the commodity.

• U.S. durable goods orders inched up 0.4% in Aug 2020, much slower than

upwardly revised surge by 11.7% (11.4% originally reported) in Jul 2020.

• U.K. public sector net borrowing rose by GBP 146.9 billion YoY to GBP 173.7

billion from Apr to Aug 2020. The UK budget deficit widened to the highest

in any Apr to Aug period since records began in 1993.

• Survey data from the market research group Gfk showed U.K. consumer

confidence index surprisingly rose to -25 in Sep 2020 from -27 in Aug 2020

despite fears of a second wave of coronavirus infections.

• Survey results from the statistical office ISTAT showed, Italy’s consumer

confidence index improved to 103.4 in Sep 2020 from 101.0 in Aug 2020.

Consumer confidence rose to seven-month high.

Markets for You