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Daily Updates
Mon,19 Nov 2018

  • Indian equity markets gained yet again on the back of a strong rupee and foreign fund inflows. Also, investors were buoyed by prospects of U.S.-China trade relations getting better, though conflicting news ushered in later.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 gained 0.56% and 0.62% to close at 35,457.16 and 10,682.20, respectively. S&P BSE Mid Cap gained 0.04% and S&P BSE Small Cap declined 0.43%.

  • The overall market breadth on BSE was weak with 1113 scrips advancing and 1530 scrips declining. A total of 141 scrips remained unchanged.

  • On the BSE sectoral front, S&P BSE Telecom was the major gainer, up 6.27%, followed by S&P BSE Energy and S&P BSE Teck, up 1.47% and 1.07%, respectively. The major loser was S&P BSE Metal, down 1.59%, followed by S&P BSE Oil & Gas and S&P BSE Basic Materials, down 0.5% and 0.44%, respectively.

  • Among the 31-stock sensitive Sensex pack, Bharti Airtel was the major gainer, up 9.81%, followed by Reliance and HDFC that grew 2.79% and 1.91%, respectively. Yes Bank was the major loser, down 7.14%, followed by Tata Steel and Maruti that fell 2.47% and 2.02%, respectively. Investors are worried over top level changes at Yes Bank and corruption charges on its non-executive independent chairman, who resigned recently.
Domestic Indices Performance
  16-Nov-18 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,682 0.62 0.92 4.58
S&P BSE Sensex 35,457 0.56 0.84 7.10
S&P BSE Midcap 14,998 0.04 3.16 -9.13
S&P BSE Smallcap 14,486 -0.43 -0.74 -17.05
S&P BSE Auto 20,517 -0.05 0.24 -17.52
S&P BSE Bankex 29,519 -0.04 2.92 2.13
S&P BSE CD 20,126 0.25 8.28 0.42
S&P BSE CG 18,412 -0.09 8.15 1.42
S&P BSE FMCG 11,339 0.47 1.91 11.28
S&P BSE HC 14,349 0.51 -3.52 5.49
S&P BSE IT 14,019 0.31 -4.48 28.82
S&P BSE Metal 12,567 -1.59 -3.84 -10.22
S&P BSE Oil 13,629 -0.50 0.39 -12.98
S&P BSE Power 1,964 0.25 -0.64 -12.89
S&P BSE PSU 7,192 -0.37 2.06 -21.94
S&P BSE Realty 1,728 0.19 5.14 -24.13
S&P BSE Teck 7,063 1.07 -3.18 15.18
VIX Index 18 -0.60 5.64 36.33
  • Bond yields rose as investors were cautious ahead of the Reserve Bank of India (RBI) board meeting scheduled on Nov 19. The board meeting will be a key factor for the bonds as it may provide crucial announcements. Investors were also cautious after a major credit rating agency indicated potential macro risks for the Indian economy.

  • Yield on the 10-year benchmark paper (7.17% GS 2028) increased 6 bps to 7.82% compared with the previous close of 7.76% after trading in the range of 7.76% to 7.82%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 3,861 crore (gross) on Nov 16 compared with a borrowing of Rs. 3,746 crore (gross) on Nov 15. Sale of securities under the RBI's reverse repo window stood at Rs. 50,441 crore on Nov 15.
Daily Rates
Key Rates (%) 16-Nov-18 Previous Close Year Ago
10 Yr Gsec 7.82 7.76 7.06
5 Yr AAA Corp Bond 8.62 8.54 7.73
3 Yr AAA Corp Bond 8.65 8.61 7.41
1 Yr AAA Corp Bond 8.71 8.70 7.23
3 Yr AA Corp Bond 9.18 9.17 8.13
1 Yr AA Corp Bond 9.05 9.08 7.96
12 Month CD 8.17 8.18 6.60
3 Month CD 7.65 7.66 6.23
CALL 6.36 6.34 5.84
T-Repo 6.29 6.27 N.A.

 

Institutional Flows 
(INR Cr) FII Flows MF Flows1
As on November 16,2018 Debt Equity Debt Equity
Purchases 1,794 6,094 8,695 2,464
Sales 1,420 4,181 5,967 2,416
Net 374 1,913 2,728 47
MTD Net 4687 2929 20059 213

1As on November 15,2018

  • Straits Times - The index increased 0.95% on gains in overnight U.S. markets. U.S. stocks increased on rise in oil prices and optimism around G20 summit later in the month where the country is expected to hold talks with China on trade.
  • Nikkei - The index lost 0.57% as a semi-conductor major reported weaker than expected revenue.
  • Hang Seng - The index gained 0.31% tracking Chinese markets that gained after Beijing was reported to have written a response to U.S. trade demands. This raised hopes of a bettering trade relations.
  • FTSE - The index fell 0.34% amid lingering concerns over Brexit uncertainty and the Italian budget. Meanwhile, ECB president warned that Eurozone's growth would continue at a gradual pace. However, core inflation might pick up slowly if uncertainty on economic situation persisted.
  • Dow Jones - The index grew 0.49% following reports that U.S. President has stated that China wants to make a deal on trade boosted the indices. However, investors likely remained cautious amid lingering uncertainty about the global economic outlook and renewed worries over Brexit, thereby restricting the gains.
Global Indices Performance
Global Indices 16-Nov-18 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 25,413 0.49 -1.49 8.33
Nasdaq 100 6,867 -0.34 -5.63 8.33
FTSE  7,014 -0.34 -0.64 -5.05
Straits Times 3,084 0.95 1.62 -7.71
Nikkei 21,680 -0.57 -3.85 -3.00
Hang Seng 26,184 0.31 2.83 -9.77
Shanghai Composite 2,679 0.41 5.21 -21.19
  • Gold prices strengthened as investors moved to risk-averse assets amid Brexit turmoil. Meanwhile investors remained focus on trade war developments between the U.S. and China.

  • Brent crude prices surged amid expectations that OPEC and its allies would agree to cut output in Dec 2018. Ministers from the OPEC will meet on Dec 6, 2018 to decide on production policy for the next six months. However, concerns that the global market was oversupplied restricted the gains.
Commodity Market
Commodity (INR) 16-Nov-18 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 64.13 -0.50 -20.80 4.50
Gold (10 gm) 30,912 0.02 -2.79 5.05
Silver (1 kg) 36,747 0.70 -4.77 -6.86
Aluminium (1 kg) 138.30 0.00 -7.43 0.58
Copper (1 kg) 436.95 1.43 -3.91 -0.74
  • The Indian rupee inched up against the greenback following selling of the greenback by banks and exporters. Gains in the domestic equity market also aided the domestic currency.

  • The euro surged against the greenback as Italian budget woes eased to some extent amid reports that the Italian Prime Minister was looking to work with the EU over his government’s 2019 budget, which was rejected by the latter.
Currency Market
Currency 16-Nov-18 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 71.80 -0.50 -2.84 9.96
EURO/INR 81.46 -0.44 -4.81 5.80
GBP/INR 91.92 -2.16 -5.56 6.83
100 JPY/INR 63.37 -0.28 -3.91 9.62
  • According to media reports, the central government has proposed changing norms that will enable closer supervision of the Reserve Bank of India. The government has recommended panels to be set up which will oversee functions that includes transmission of monetary policy, financial stability, and foreign exchange management.

  • According to media reports, the board of RBI may ease rules that governs transfer of surplus funds to the government. RBI may also liberalise norms for weak banks in order to boost lending in the economy. RBI is also considering reviewing norms for capital and risk weight for Indian banks that are more stringent than the Basel guidelines. Other proposals on the central bank’s agenda include restructuring of loans of up to Rs. 250 million ($3.5 million) that are availed by micro, small and medium enterprises.

  • According to the secretary of the Department of Industrial Policy and Promotion (DIPP), the government will soon come out with a new industrial policy.
Key Economic Indicators
Indicators Current Previous
GDP 8.20% (Q1 FY'19) 7.70% (Q4 FY'18)
IIP 4.50% (Sep'18) 4.70% (Aug'18)
WPI 5.28% (Oct'18) 5.13% (Sep'18)
CPI 3.31% (Oct'18) 3.70% (Sep'18)

Since May-17, MOSPI has revised base year of IIP & WPI from 2004-05 to
2011-12, and for CPI from 2010 to 2012

Policy Rates
Key Rates (%) Current Previous
Reverse Repo 6.25 6.25
Repo 6.50 6.50
CRR 4.00 4.00
SLR 19.50 19.50
Bank Rate 6.75 6.75

 

  • Mahindra and Mahindra Ltd.’s subsidiary Classic Legends Pvt. Ltd has launched two bikes Jawa and Jawa 42. The Jawa Motorcycles have made a comeback after two decades as the Indian operations of Jawa, a brand from erstwhile Czechoslovakia, were wound up in 1996. Industry experts are seeing the two models as the first real challengers to Royal Enfield in the retro cruiser segment of motorcycles.

  • Reliance Infrastructure’s consolidated net profit declined 49% to Rs. 277.19 crore for the quarter ended Sep 2018 compared with Rs. 543.8 crore in the year-ago period. The company’s consolidated income increased to Rs. 7,207.3 crore in the quarter against Rs. 5,898.7 crore in the year-ago period.

  • Indian Hotels Company’s (IHCL) consolidated net loss narrowed to Rs. 5.21 crore in the quarter ended Sep 2018 compared with a loss of Rs. 57.67 crore in the year-ago period. The owner of the Taj brand of hotels saw total income grow 13.53% to Rs. 981.15 crore compared with Rs. 864.18 crore in the same quarter of last fiscal.
Upcoming Events
Event Date
Forex Reserves 23-Nov-18
Index of Eight Core Industries (Oct 18) 30-Nov-18

Source :ICRON Research

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