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Daily Updates
Thu,22 Jun 2017

  • Indian equity markets close in the red as investors refrained from taking major bets ahead of the minutes of the Monetary Policy Committee’s Jun 2017 policy meet, which is expected to provide additional cues on the central bank’s interest rate stance. Besides, weak cues from Asian markets dampened investor sentiment.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 slipped 0.04% and 0.21% to close at 31,283.64 and 9,633.60, respectively. Meanwhile, broader indices bucked the trend with S&P BSE Mid Cap and S&P BSE Small Cap rising 0.04% and 0.11%, respectively.

  • The overall market breadth was weak with 1,369 scrips declining and 1,268 scrips advancing. A total of 180 scrips remained unchanged.

  • On the BSE sectoral front, majority of the indices closed in the red. S&P BSE Metal was the top loser, down 1.20%, followed by S&P BSE Oil & Gas and S&P BSE Auto, which slipped 0.86% and 0.66%, respectively. S&P BSE IT and S&P BSE Teck fell 0.50% and 0.47%, respectively. Stock of oil exploring companies fell amid weakness in global crude oil prices. Meanwhile, S&P BSE FMCG was the top gainer, up 0.73%, followed by S&P BSE Realty and S&P BSE Power, which went up 0.51% and 0.19%, respectively.
Domestic Indices Performance   
  21-Jun-17 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 9,634 -0.21 2.18 17.20
S&P BSE Sensex 31,284 -0.04 2.69 16.67
S&P BSE Midcap 14,851 0.04 1.41 30.06
S&P BSE Smallcap 15,696 0.11 3.08 36.26
S&P BSE Auto 24,021 -0.66 3.80 22.34
S&P BSE Bankex 26,775 -0.11 3.54 32.85
S&P BSE CD 16,025 -0.41 3.55 38.04
S&P BSE CG 17,593 0.06 -0.44 19.03
S&P BSE FMCG 10,268 0.73 6.65 24.52
S&P BSE HC 14,066 -0.13 -5.33 -5.13
S&P BSE IT 9,920 -0.50 -1.94 -14.00
S&P BSE Metal 11,207 -1.20 0.01 32.53
S&P BSE Oil 13,703 -0.86 -2.36 44.10
S&P BSE Power 2,236 0.19 -2.50 14.84
S&P BSE PSU 8,418 -0.68 -5.96 28.40
S&P BSE Realty 2,105 0.51 2.96 41.10
S&P BSE Teck 5,555 -0.47 -2.38 -10.38
VIX Index 11 2.42 -3.43 -36.76
  • Bond yields continued to fall for the third consecutive session due to increased demand for bonds ahead of the release of Monetary Policy Committee’s Jun meeting minutes that might signal a rate cut in the coming months.

  • Yield on the 10-year benchmark paper (6.79% GS 2027) fell 2 bps to close at 6.43% from the previous close of 6.45%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 4,155 crore (gross) on Jun 21, up from Rs. 2,145 crore (gross) borrowing on Jun 20. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 4,800 crore on Jun 20.

  • Banks made no borrowing under the central bank’s Marginal Standing Facility on Jun 20, as against borrowing of Rs. 175 crore on Jun 19.
Daily Rates    
Key Rates (%) 21-Jun-17 Previous Close Year Ago
10 Yr Gsec 6.43 6.45 7.50
5 Yr AAA Corp Bond 7.26 7.27 8.11
3 Yr AAA Corp Bond 7.14 7.14 7.95
1 Yr AAA Corp Bond 6.93 6.94 7.73
3 Yr AA Corp Bond 7.57 7.57 8.43
1 Yr AA Corp Bond 7.35 7.36 8.22
12 Month CD 6.66 6.66 7.49
3 Month CD 6.35 6.35 6.87
CALL 6.10 6.08 6.28
CBLO 6.23 6.20 6.24

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on June 21,2017 Debt Equity Debt Equity
Purchases 2,083 4,312 6,593 1,840
Sales 1,537 4,607 3,489 1,626
Net 547 -295 3,103 214
MTD Net 21476 2862 21665 4873

1 As on June 16,2017

  • Straits Times - The index snapped 0.89% following weak cues from the major regional peers.
  • Nikkei - The index slipped 0.45% on a stronger yen.
  • Hang Seng - The index dropped 0.57% despite strong cues in the mainland Chinese markets following decision to include mainland China-listed shares to U.S. stock indexes by U.S. index provider MSCI.
  • FTSE - The index fell 0.33% following steep drop in crude oil prices and after a subprime lender issued a profit warning.
  • Dow Jones - The index fell 0.27% due to continued fall in global crude oil prices amid signs of rising production. Investors were also uncertain about the near-term outlook of the markets.
Global Indices Performance   
Global Indices 21-Jun-17 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 21,410 -0.27 2.91 20.08
Nasdaq 100 5,782 0.98 2.31 31.02
FTSE  7,448 -0.33 -0.31 19.61
Straits Times 3,202 -0.89 -0.47 14.78
Nikkei 20,139 -0.45 2.80 24.55
Hang Seng 25,695 -0.57 2.06 24.32
Shanghai Composite 3,156 0.52 2.12 9.65
  • Gold prices went up as safe-haven appeal got support ahead of the U.S. housing data, which will provide further cues on economic prospect. Gold prices were last seen trading at $1,245.66 per ounce, from the previous close of $1,242.81 per ounce.

  • Brent crude prices inched up as data from the American Petroleum Institute (API) indicated that U.S. crude stockpiles had dropped more than forecast in the last week. Oil prices were last seen trading at $43.35 per barrel, from the previous close of $43.02 per barrel.
Commodity Market    
Commodity (INR) 21-Jun-17 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 43.66 1.49 -16.71 -8.22
Gold (10 gm) 28,567 0.13 -0.32 -4.62
Silver (1 kg) 38,094 -0.41 -1.54 -7.52
Aluminium (1 kg) 120.50 -1.03 -4.33 10.00
Copper (1 kg) 363.05 -1.22 1.10 16.72
  • The Indian rupee inched down against the greenback as gains resulting from foreign fund inflow into the domestic debt market and selling of greenback by foreign banks were outweighed by losses in the domestic equity market.

  • The euro inched up against the greenback amid growing possibility that lower global crude oil prices will keep inflationary pressures subdued in the U.S., thereby restricting the U.S. Fed from raising interest rates.
Currency Market    
Currency 21-Jun-17 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 64.60 0.21 -0.60 -4.26
EURO/INR 71.94 -0.02 -0.49 -5.90
GBP/INR 81.53 -0.75 -3.14 -17.86
100 JPY/INR 58.07 0.47 -0.63 -10.09
  • Capital market regulator Securities and Exchange of India (SEBI) eased norms for Foreign Portfolio Investors (FPIs). SEBI expanded the eligible jurisdictions for grant of FPI registration to category I FPIs as it included those countries that have diplomatic tie-ups with India. In addition, SEBI allowed FPIs who are functioning under the Multiple Investment Managers structure and holding foreign venture capital investors registration, to appoint multiple custodians.

  • According to RBI’s credit data of Travel Head from Balance of Payments, India’s Foreign Exchange Earnings (FEEs) surged 20.9% on a YoY basis to Rs. 12,403 crore in May 2017. Over a period of two years, FEEs increased 30% while tourist footfalls grew 19%. Meanwhile, the FEEs during the period Jan to May 2017 grew 19.2% on a YoY.

  • According to the Directorate General of Civil Aviation, total domestic air passenger traffic surged 17.36% to 1.01 crore in May 2017 from 86.69 lakh in Mar 2016.
Key Economic Indicators   
Indicators Current Previous
GDP (Q4FY17) 6.10% (Mar'17) 7.00% (Dec'16)
IIP 3.10% (Apr'17) 2.70% (Mar'17)
WPI 2.17% (May'17) 3.85% (Apr'17)
CPI 2.18% (May'17) 2.99% (Apr'17)

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 6.00 6.00
Repo 6.25 6.25
CRR 4.00 4.00
SLR 20.50 20.50
Bank Rate 6.50 6.50
  • Cadila Healthcare announced that the company has received Establishment Inspection Report from the U.S. Food and Drugs Administration (USFDA) for its formulations manufacturing facility at Moraiya, near Ahmedabad, indicating a successful closure of the audit.

  • Reliance Capital announced that it has received approval for a shareholders' meeting on demerger of Reliance Home Finance from the National Company Law Tribunal (NCLT). The demerger that is expected to be completed by Sep 2017 will facilitate the independent listing of the home finance unit on exchanges. The company has already received approval from BSE and NSE on the scheme. The proposal is expected to benefit nearly one million shareholders of Reliance Capital.

  • Glenmark Pharmaceuticals and APC Therapeutics Inc have entered into a licensing agreement for development of a potential cancer treatment drug. Per the agreement, Glenmark will license the product from APC Therapeutics and manage all clinical development which will include regulatory filings and commercialisation worldwide.
Upcoming Events
Event Date
Index of Eight Core Industries (May) 30-Jun-17

Source :ICRON Research

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