News U Can Use
April 13, 2018
The Week that was…
April to 13
Indian Economy
The Consumer Price Index (CPI)-based inflation or retail inflation grew 4.28% in Mar 2018,
down from 4.44% in the previous month and up from 3.89% in the same month of the
previous year. CPI inflation eased for the third consecutive month and marked a 5-month low,
reflecting decline in prices of pulses and products, sugar and confectionery and spices by
13.41%, 1.61% and 0.07%, respectively. The Consumer Food Price Index also grew 2.81% in
Mar 2018, down from 3.26% in the previous month and up from 2.01% in the same month of
the previous year.
India’s Index of Industrial Production (IIP) grew 7.1% in Feb 2018 as against downwardly
revised growth of 7.4% (7.5% originally reported) in Jan 2018 and 1.2% in the same period of
the previous year. The manufacturing sector surged 8.7% in Feb from 0.7% growth in the
same period of the previous year. However, IIP growth for the Apr 2017-Feb 2018 period
slowed to 4.3% from 4.7% in the same period of the previous fiscal.
India’s export during the month of Mar 2018 fell 0.66% YoY to $29.11 billion from $29.30
billion in Mar 2017. Meanwhile, import grew 7.51% YoY to $42.80 billion in Mar 2018 from
$39.95 billion in the same period of the previous year. Trade deficit widened to $13.69 billion
in Mar 2018 as against $10.65 billion in Mar 2017 and $12.0 billion in Feb 2018.
The Reserve Bank of India (RBI) increased the debt investment limits for foreign portfolio
investors (FPIs) to buy Indian government and corporate bonds amid rising global investor
interest for domestic debt papers. The FPI limit for Central government securities would be
increased 0.5% to 5.5% of outstanding stock of securities in FY19 and 6% of outstanding
stock of securities in FY20.
Indian Equity Market
Domestic Equity Market Indices
Indices 13-Apr-18 1 Week Return YTD Return
S&P BSE Sensex 34,192.65 1.68% 1.12%
Nifty 50 10,480.6 1.44% 0.43%
S&P BSE Mid-Cap 16,677.76 0.49% -6.49%
S&P BSE Small-Cap 17,981.99 0.55% -6.73%
Source: MFI Explorer
NSE Advance/Decline Ratio
Date Advances Declines
Advance/Decline Ratio
09-Apr-18 1092 715 1.53
10-Apr-18 851 952 0.89
11-Apr-18 732 1058 0.69
12-Apr-18 741 1042 0.71
13-Apr-18 881 926 0.95
Source: NSE
Indian equity markets closed in the
green amid optimism over the health
of the domestic economy, backed by
strong macro-economic numbers.
Strong buying interest in an Indian
conglomerate major, post-acquisition
of artificial intelligence-based
education platform, and gains in
banking stocks in one of the sessions
after chief executive of a major private-
sector bank announced to step down
further boosted the indices.
Buying interest found further support
from easing concerns over trade war
between U.S. and China as Chinese
President promised to lower import
tariffs on products including cars and
further liberalise the nation’s economy.
However, gains were restricted as U.S.
President’s latest comment cast a
shadow of uncertainty regarding the
timing of U.S. military strike on Syria.
Nifty 50
Mid Cap
Small Cap
23.53 26.01 38.54 102.72
3.12 3.60 2.91 2.60
Dividend Yield
1.14 1.22 0.86 0.64
Source: BSE, NSE Value as on
Apr 13, 2018
Indian Equity Market (contd.)
Sectoral Indices
Last Returns (in %)
Closing 1-Wk 1-Mth
S&P BSE Auto
25,453.6 0.17% 3.29%
S&P BSE Bankex
28,302.5 1.60% 1.42%
22,846.6 2.95% 5.19%
19,134.7 1.78% 2.27%
10,631.3 0.75% 1.28%
13,679.5 -0.04% -0.02%
12,781.6 4.48% 3.20%
S&P BSE Metal
14,095.9 3.41% -2.06%
S&P BSE Oil & Gas
14,666.7 -1.05% -6.12%
Source: Thomson Reuters
Eikon Value as on Apr 13, 2018
On the BSE sectoral front, indices closed on
a positive note. S&P BSE Information
Technology (4.48%) stood as the major
gainer followed by S&P BSE Metal (3.41%),
S&P BSE Teck (3.33%), and S&P BSE
Consumer Durables (2.95%). S&P BSE Oil
& Gas (-1.05%) stood as the major loser
followed by S&P BSE Realty (-0.58%) and
S&P BSE Healthcare (-0.04%).
Decline in S&P BSE Oil & Gas stocks came
in amid media reports that India’s state-run
oil retailers have been asked to absorb a
part of the losses amid recent recovery in
global crude oil and not raise retail diesel
and petrol prices.
Indian Derivatives Market Review
Nifty Apr 2018 Futures were at 10,490.4 points, a premium of 9.80 points, over the spot
closing of 10,480.60. The turnover on NSE’s Futures and Options segment stood at Rs. 36.83
lakh crore against Rs. 34.44 lakh crore on Apr 6.
The Put-Call ratio stood at 1.00 compared with the previous week’s close of 0.91.
The Nifty Put-Call ratio stood at 1.63 compared with the previous week’s close of 1.45.
Domestic Debt Market
Debt Indicators
Call Rate
5.86 5.89 5.86 5.83
91 Day T-Bill
6.08 6.10 6.21 6.08
7.80% 2021, (5 Yr GOI)
7.15 6.94 7.20 6.55
7.17% 2028, (10 Yr GOI)
7.43 7.17 7.65 --
Source: Thomson Reuters
Value as on Apr 13, 2018
Bond yields surged following lower
than expected increase in limits for
foreign investment in government
securities and fresh supply from the
auction of state development loans.
Rise in crude oil prices and subdued
demand for long-tenure papers further
weighed on the domestic bond market.
However, value buying by investors
restricted the losses.
The Reserve Bank of India (RBI)
conducted the auction of state
development loans of 13 state
governments for a notified amount of
Rs. 19,700 crore for which Rs.
18,778.1 crore was accepted. The cut-
off yield stood in the range of 7.55% to
8.00%. Andhra Pradesh and Haryana
accepted partial amount of Rs. 1,553.1
crore and Rs. 525 crore, respectively.
9-Apr 10-Apr 11-Apr 12-Apr 13-Apr
Yield in %
10 -Yr Benchmark Bond ( % )
Source: CCIL
Domestic Debt Market (Spread Analysis)
G-Sec Yield
Corporate Yield
1 Year 6.69 7.58 90
3 Year 7.21 7.82 61
5 Year 7.49 8.13 64
10 Year 7.72 8.25 53
Source: Thomson Reuters
Eikon Value as on Apr 13, 2018
Yields on gilt securities increased across
the maturities in the range of 9 bps to 32
bps. The maximum expansion was
witnessed on 7-year paper and the
minimum on 1-year paper.
Corporate bond yields increased across
the maturities in the range of 4 bps to 27
bps. The maximum expansion was
witnessed on 6-year paper and the
minimum on 2-year paper.
Spread between AAA corporate bond and
gilt contracted across the maturities by up
to 18 bps, barring 6-year paper that
expanded 9 bps.
3 Mths 6 Mths 1 Yr 5 Yrs 10 Yrs 20 Yrs 30 Yrs
India Yield Curve Shift (%) (W-o-W)
Change in bps 13-Apr-18 06-Apr-18
Yield in %
Change in
Source: Thomson Reuters Eikon
Regulatory Updates in India
According to new rules laid down by the Ministry of Finance, before issuing a formal notice to
the businesses, customs officials will now hold consultations with assesses and inform them
about outstanding taxes and interest. They would be given 15 days to respond to the
communication of pre-notice consultation and submit response to the tax officer.
The Securities and Exchange Board of India (SEBI) clarified the investment limit for foreign
portfolio investors owned by foreign governments. According to SEBI, two or more foreign
government-related entities coming from the same jurisdiction will be considered as a single
FPI and they will be able to invest up to 10% in a company listed on the stock exchange.
However, if the Indian government enters into agreements with other sovereign governments
where the agreement gives distinct or separate recognition to certain entities then SEBI will
recognize the said entities as distinct or separate subject to the conditions as specified by
Capital market regulator SEBI announced that physical settlement of equity derivatives will be
made compulsory in a phased manner. Currently, equity derivatives are settled through cash
payments (entry price minus exit price). In physical settlement, traders need to accept the
delivery of physical shares on the settlement day against the derivatives positions. According
to brokers and analysts, the move would revive the stock lending and borrowing market,
however it could impact futures and options activities.
Regulatory Updates in India (contd..)
The government permitted start-ups to avail tax concession only if total investment including
funding from angel investors does not exceed Rs. 100 million. According to a notification by the
commerce and industry ministry, an angel investor investing in a start-up should have a
minimum net worth of Rs. 20 million or on an average has returned income of more than Rs.
2.5 million in the preceding three financial years.
As an effort to boost inflows from overseas investors, SEBI decided to raise the investment
limit for foreign portfolio investors (FPIs) in central government securities and corporate bonds.
The limit will be enhanced in two tranches.
Accelerating the process involved, Cabinet Committee on Economic Affairs (CCEA)
announced that finance and petroleum ministers are now permitted to award oil and gas
exploration blocks to successful bidders. Currently, CCEAs approval is required for awarding
blocks under the Hydrocarbon Exploration Licensing Policy (HELP).
Global News/Economy
Minutes of FOMC’s Mar meeting showed that the U.S. Federal Reserve (Fed) has looked into
the need to slow the economy down. Some members stated that monetary policy eventually
would likely gradually move from an accommodative stance to being a neutral or restraining
factor for economic activity.” The Fed had raised interest rates by a quarter percentage point to
between 1.5%-1.75% in Mar 2018.
U.S. consumer price index inched down 0.1% in Mar 2018 as against a gain of 0.2% in Feb
2018. Core consumer price index (excluding food and energy prices) grew 0.2% in Mar as
against Feb.
Industrial production in the eurozone unexpectedly dropped 0.8% MoM in Feb 2018, better than
0.6% fall in Jan 2018. It was the third straight fall in output. Among sectors, capital goods output
plunged 3.6%, followed by a 2.1% drop in durable consumer goods output. Annually, industrial
output grew 2.9%, slower than 3.7% in Jan 2018.
Germany's consumer price inflation rose to 1.6% in Mar 2018, in line with market expectations,
from 1.4% in Feb 2018. On a monthly basis, the consumer price index rose 0.4% in Mar, slower
than 0.5% increase in Feb.
China’s consumer price inflation came in at 2.1% in Mar 2018 as against an increase of 2.9% in
Feb 2018. Food as well as non-food prices grew 2.1% in Mar. Consumer prices fell 1.1% MoM
as against an increase of 1.2% in Feb.
Global Equity Markets
Global Indices
Dow Jones
24,360.14 1.79% -1.87%
Nasdaq 100
6,628.34 3.03% 1.80%
FTSE 100
7,264.56 1.13% -5.01%
DAX Index
12,442.40 1.64% -3.33%
Nikkei Average
21,778.74 0.98% -7.35%
Straits Times
3,501.30 1.71% 2.89%
Source: Thomson Reuters Eikon
Value as on Apr 13, 2018
U.S. markets rose amid easing
concerns over trade war with China
after it promised to lower import tariffs
on products including cars and take
necessary steps to further liberalise the
world's second-largest economy.
Market rose further after media reports
stated that the U.S. President has asked
his advisor to reconsider joining a major
Trans-Pacific trade deal after first pulling
out of the agreement last year.
European markets went up cues after Chinese President eased trade war tension by lifting
limits of foreign investment in manufacturing and financial sectors. Further, he outlined
various measures to liberalise the nation’s economy. Buying interest found additional
support from official data showing recovery in France’s industrial production in Feb.
Asian markets too witnessed gains amid receding worries over trade war between U.S.
and China following a host of initiatives announced by Chinese President to liberalise the
nation’s trade and economy. Buying interest found additional support as Japan's consumer
confidence data remained steady at the end of the first quarter.
Global Debt (U.S.)
Yield on the 10-year U.S. Treasury bond
rose 5 bps to close at 2.83% from the
previous week’s close of 2.78%.
U.S. Treasury prices fell initially as
market sentiment improved to some
extent on hopes that the U.S. will take
steps to resolve its ongoing trade
conflict with China. U.S. Treasury prices
fell further after U.S. producer prices
increased more than expected in Mar
Losses retreated amid geopolitical
concerns after the U.S. President
warned of possible military action
against Syria following a suspected
poison gas attack.
Prices fell again after the U.S. President
indicated that a possible attack on Syria
may not be imminent, contrary to what
he signaled earlier.
9-Apr 10-Apr 11-Apr 12-Apr 13-Apr
US 10-Year Treasury Yield Movement
Source: Thomson Reuters Eikon
Commodities Market
Performance of various commodities
Last Closing 1-Week Ago
Brent Crude($/Barrel)
73.62 65.70
Gold ($/Oz)
1,345.01 1332.89
Gold (Rs/10 gm)*
30,874 30396
Silver ($/Oz)
16.62 16.35
Silver (Rs/Kg)*
38,485 37884
Source: Thomson Reuters
Eikon Value as on Apr 13, 2018
Gold prices rose amid heightened
tensions between U.S. and Russia. In
the wake of a recent chemical attack on
civilians in Syria, U.S. suspects Russia’s
role in the same and assured of a quick
decision on how to react to the attack.
However, the upside was limited as
minutes of the U.S. Fed’s Mar policy
review indicated that the U.S. inflation
will rise towards the 2% target in the
coming months.
Brent crude prices surged amid growing
concerns over U.S. military activity in
Syria, which may hamper oil supplies
from the region. News that U.S. could
renew sanctions against Iran also
supported prices.
Baltic Dry Index
The Baltic Dry Index rose 6.96% on the
back of improved capesize and
panamax activities.
14-Mar-18 24-Mar-18 3-Apr-18 13-Apr-18
Global Commodity Movement
Gold Spot ($/Oz) Silver Spot ($/Oz) Brent ($/bbl)
Global Commodity Prices
Rebased to 10
Source: Thomson Reuters Eikon
Currencies Markets
Movement of Rupee vs Other Currencies
Currency Last Closing 1-Wk Ago
US Dollar
65.22 64.99
Pound Sterling
92.77 90.96
80.34 79.51
100 JPY
60.64 60.54
Source: RBI Figures in INR , Value as on Apr 13, 2018
The Indian rupee weakened against the
U.S. dollar as demand for greenback
from importers grew following rise in
global crude oil prices.
Euro surged against the U.S. dollar as
risk appetite improved after the Chinese
President’s promise to cut import tariffs,
eased concerns over a global trade
Sterling rose against the U.S. dollar as
Britain’s house prices grew in Mar 2018
and after a policymaker of the Bank of
England suggested an interest rate hike
to control inflation.
Yen fell against the U.S. dollar as risk
appetite improved after the Chinese
President’s promise to cut import tariffs,
eased concerns over global trade
14-Mar-18 24-Mar-18 3-Apr-18 13-Apr-18
Source: RBI
Currency Prices ( in terms of INR)
Rebased to 10
Currency Movement
The Week that was…
April to 13
The Week that was (Apr 09 Apr 13)
Date Events Present Value Previous Value
Apr 9, 2018
Japan Consumer Confidence Index (Mar) 44.3 44.3
Germany Trade Balance (Feb) 18.4b 17.4b
Apr 10, 2018
Japan Machine Tool Orders (YoY) (Mar P) 28.1% 39.5%
Japan Machine Orders (YoY) (Feb) 2.4% 2.9%
Apr 11, 2018
China Consumer Price Index (YoY) (Mar) 2.1% 2.9%
U.S. Consumer Price Index (YoY) (Mar) 2.4% 2.2%
U.K. Trade Balance (Feb) -£965 -£2949
U.K. Industrial Production (YoY) (Feb) 2.2% 1.2%
U.K. Manufacturing Production (YoY) (Feb) 2.5% 2.2%
Apr 12, 2018
India Consumer Price Index (Mar) 4.28% 4.44%
India Index of Industrial Production (Feb) 7.1% 7.4%
U.S. Initial Jobless Claims (Apr 7) 233k 242k
U.S. Export Price Index (YoY) (Mar) 3.4% 3.2%
China Foreign Direct Investment (YoY) (Mar) 0.4% 0.8%
Eurozone Industrial Production (YoY) (Feb) 2.9% 3.7%
Apr 13, 2018
India Trade Deficit (Mar) -$13.69B -$12.00B
China Trade Balance CNY (Mar) -29.78B 222.92B
U.S. University of Michigan Sentiment (Apr P) 97.8 101.4
The Week Ahead
April to 20
The Week Ahead
Day Event
April 16, 2018
India Wholesale Price Index (Mar)
U.S. Retail Sales Advance (MoM) (Mar)
April 17, 2018
China Gross Domestic Product (YoY) (1Q)
Germany ZEW Survey Expectations (Apr)
China Retail Sales YTD (YoY) (Mar)
China Industrial Production (YoY) (Mar)
U.S. Industrial Production (MoM) (Mar)
U.S. Industrial Production (MoM) (Mar)
Japan Trade Balance (Mar)
U.K. ILO Unemployment Rate 3Mths (Feb)
U.S. Housing Starts (MoM) (Mar)
April 18, 2018
U.K. Consumer Price Index (YoY) (Mar)
Eurozone Consumer Price Index (YoY) (Mar F)
April 19, 2018
Japan National Consumer Price Index (YoY) (Mar)
U.K. Retail Sales Ex Auto Fuel (YoY) (Mar)
U.S. Initial Jobless Claims (Apr 14)
April 20, 2018
Japan Tertiary Industry Index (MoM) (Feb)
Eurozone Consumer Confidence (Apr A)
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