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Daily Updates
Fri,28 Apr 2017

  • Indian equity markets ended the session in the red after posting record highs in the earlier session, as benchmark indices for Apr 2017 closed lower with investors booking profits in industry heavyweights. Investors were not confident by the tax-cut plan initiated by the U.S. President, and also turned alert ahead of a statement from the European Central Bank, in turn affecting the global markets, and further adding to the negative sentiment. However, broader sentiment was optimistic, on the back of hopes of bettering corporate profitability and advancement in the Indian economy.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 slipped 0.34% and 0.10% to close at 30,029.74 and 9,342.15, respectively. S&P BSE Mid-Cap went up 0.07% while S&P BSE Small-Cap dropped 0.02%.

  • The overall market breadth on BSE was negative with 1,566 scrips declining and 1,309 scrips advancing. A total of 160 scrips remained unchanged.

  • On the BSE sectoral front, most indices closed in the green, while S&P BSE Consumer Durables remained unchanged compared with the previous session’s close. The highest gainer was S&P BSE Realty, up 0.69%. Some of the other gainers included S&P BSE IT (0.52%), S&P BSE Oil & Gas (0.41%), S&P BSE Teck (0.40%), S&P BSE Capital Goods (0.33%), and S&P BSE Industrials (0.28%).
Domestic Indices Performance   
  27-Apr-17 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 9,342 -0.10 3.28 17.07
S&P BSE Sensex 30,030 -0.34 2.71 15.21
S&P BSE Midcap 14,772 0.07 6.95 33.03
S&P BSE Smallcap 15,279 -0.02 8.59 37.13
S&P BSE Auto 22,634 -0.12 3.54 19.86
S&P BSE Bankex 25,251 0.17 5.10 31.36
S&P BSE CD 15,540 0.00 6.50 29.84
S&P BSE CG 17,923 0.33 11.59 33.41
S&P BSE FMCG 9,528 -0.72 3.57 21.50
S&P BSE HC 15,000 -0.71 -1.51 -3.74
S&P BSE IT 9,685 0.52 -6.52 -16.11
S&P BSE Metal 11,136 -1.03 -3.63 37.60
S&P BSE Oil 14,476 0.41 8.63 51.94
S&P BSE Power 2,327 0.07 4.13 24.67
S&P BSE PSU 8,909 0.01 5.26 39.59
S&P BSE Realty 1,958 0.69 23.25 48.50
S&P BSE Teck 5,490 0.40 -4.23 -11.97
VIX Index 11 -5.71 -10.98 -32.30
  • Bonds yield fell following decline in the U.S. Treasury yields as investors were disappointed after the announcement of U.S. President’s tax plan. Also, investors were waiting for fresh supply of notes due on Apr 28.

  • Yield on the 10-year benchmark bond (6.97% GS 2026) fell 2 bps to close at 6.94% compared with the previous close of 6.96%. During the session, bond yields moved in the region of 6.93% to 6.96%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility stood at Rs. 1,455 crore (gross) on Apr 27, compared with the gross borrowing of Rs. 1,025 on Apr 26. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 19,271 crore on Apr 26.

  • Banks borrowed Rs. 150 crore under the central bank’s Marginal Standing Facility on Apr 25, compared with the borrowing of Rs. 100 crore on Apr 25.
Daily Rates    
Key Rates (%) 27-Apr-17 Previous Close Year Ago
10 Yr Gsec 6.95 6.95 7.46
5 Yr AAA Corp Bond 7.48 7.46 8.07
3 Yr AAA Corp Bond 7.32 7.34 7.89
1 Yr AAA Corp Bond 7.04 7.03 7.64
3 Yr AA Corp Bond 7.75 7.77 8.42
1 Yr AA Corp Bond 7.48 7.47 8.05
12 Month CD 6.69 6.70 7.45
3 Month CD 6.35 6.38 7.33
CALL 5.98 5.99 6.40
CBLO 6.10 6.18 6.46

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on April 27,2017 Debt Equity Debt Equity
Purchases 661 5,442 4,580 2,734
Sales 846 5,506 2,505 2,075
Net -185 -64 2,075 658
MTD Net 19469 2417 57259 8916

1 As on April 25,2017

  • Straits Times - The index closed flat following the announcement of U.S. government’s highly anticipated tax reform plan that included significant reductions in both individual and corporate income tax rates.
  • Nikkei - The index fell 0.19% after Bank of Japan decided to lower its inflation forecast for this year to 1.4% from 1.5%. However, losses were capped as the central bank kept its policy stance unchanged.
  • Hang Seng - The index rose 0.49% following positive cues from mainland Chinese markets, which rose after official data showed profits earned by Chinese industrial firms rose in Mar 2017, though at a slower pace than in the first two months of the year.
  • FTSE - The index fell 0.71% as investors were disappointed after the European Central Bank left its key interest rates and the volume of asset purchases unchanged for a ninth consecutive policy session.
  • Dow Jones - The index rose 0.03% following stronger quarterly earning well-known data of some well-known companies. However, decline in crude oil prices capped the gains. Investors were also awaiting earning results from major tech companies due after market hours.
Global Indices Performance   
Global Indices 27-Apr-17 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 20,981 0.03 2.09 16.29
Nasdaq 100 5,571 0.54 3.67 26.14
FTSE  7,237 -0.71 -0.77 14.51
Straits Times 3,171 -0.08 1.42 10.32
Nikkei 19,252 -0.19 1.40 11.34
Hang Seng 24,698 0.49 2.09 15.62
Shanghai Composite 3,152 0.36 -3.51 6.72
  • Gold prices continued with the downward trend following U.S. President’s new tax reform proposal. Gold prices were last seen trading at $1,264.5 per ounce, compared with the previous close of $1,268.65 per ounce.
  • Brent crude prices fell due to oversupply concerns in the U.S., which also raised doubts on Organization of the Petroleum Exporting Countries’ (OPEC) effort to reduce output. Brent crude prices were last seen trading at $48.01 per barrel, compared with the previous close of $49.05 per barrel.
Commodity Market    
Commodity (INR) 27-Apr-17 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 49.20 0.31 -1.72 12.30
Gold (10 gm) 28,804 -0.11 -0.35 -1.71
Silver (1 kg) 40,025 -0.91 -3.60 -1.19
Aluminium (1 kg) 125.30 0.04 0.48 14.64
Copper (1 kg) 365.25 -0.04 -3.81 10.73
  • The Indian rupee rose initially against the greenback following disappointments after the announcement of tax plan by the U.S. President. However, the trend reversed later in the day due to weakness in the domestic equity market.

  • Euro fell against the U.S. dollar after the European Central Bank kept interest rates at their record lows, leaving its policy stance unchanged.
Currency Market    
Currency 27-Apr-17 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 64.11 0.18 -1.50 -3.65
EURO/INR 69.89 -0.22 -1.11 -7.03
GBP/INR 82.59 0.56 1.15 -14.79
100 JPY/INR 57.60 0.23 -2.51 -3.76
  • The Reserve Bank of India (RBI) said in a draft that share pricing in a cross border merger between a domestic and a foreign company must be done at an arm’s length basis, an internationally accepted methodology. Also, in case of any acquisition of foreign company by an Indian company, foreign borrowing should comply with external commercial borrowing (ECB) norms. In case of acquisition of Indian company by a foreign company, the overseas company will not be liable to repay outstanding borrowings or impending borrowings as per the National Company Law Tribunal.

  • The market regulator, Securities and Exchange Board of India (SEBI), has taken several important steps. Firstly, SEBI has approved introduction of options contracts in commodity trading. Secondly, the regulator has made mandatory for companies raising more than Rs. 100 crore through initial public offering to appoint a monitoring agency to keep track of the use of funds. Lastly, SEBI has banned both resident and non-resident Indians from making investments through participatory notes in order to curb black money.
Key Economic Indicators   
Indicators Current Previous
GDP 7.00% (Q3 FY'17) 7.40% (Q2 FY'17)
IIP -1.20% (Feb'17) 3.30% (Jan'17)
WPI 5.70% (Mar'17) 6.55% (Feb'17)
CPI 3.81% (Mar'17) 3.65% (Feb'17)

 

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
  • Axis Bank has reported 43% YoY decline in net profit to Rs. 1,225 crore in the fourth quarter ended Mar 2017, as against net profit of Rs. 2,154 crore during the same quarter last year. The fall in net profit was due to flat net interest income and rise in provisions for stressed loans.

  • Infosys has launched 'Infosys Nia', the next-generation Artificial Intelligence (AI) Platform for businesses. The new AI platform will deal with many business problems such as forecasting revenues, anticipating what products need to be built, and understanding customer behaviour, content of contracts and legal documents, compliance, and fraud.

  • Maruti Suzuki has posted 16% rise in net profit to Rs. 1,709 crore in the fourth quarter ended Mar 2017. The profit in FY17 has surged 37% to Rs. 7,337 crore due to volume growth and better product mix.

  • Dr Reddy’s Laboratories has launched two generic medicies, Ezetimibe and Simvastatin tablets, in the U.S. market for reducing cholesterol.
Upcoming Events
Event Date
Forex Reserves 28-Apr-17

Source :ICRON Research

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