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Daily Updates
Thu,22 Mar 2018

  • Indian equity markets closed modestly higher amid gains in realty and banking stocks. However, investors remained cautious ahead of the U.S. Federal Reserve’s (Fed) policy decision wherein Fed is expected to raise interest rates, and thereafter may likely make two more rate hikes this year.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.42% and 0.31%, respectively to close at 33,136.18 and 10,155.25. S&P BSE Mid-Cap and S&P BSE Small-Cap grew 0.22% and 0.31%.

  • The overall market breadth on BSE was weak with 1,427 scrips declining and 1,289 scrips advancing. A total of 144 scrips remained unchanged.

  • On the BSE sectoral front, S&P BSE Telecom was the major gainer, up 2.36%, followed by S&P BSE Realty that grew 0.75%. S&P BSE Finance and S&P BSE Capital Goods grew 0.56% each. S&P BSE Energy and S&P BSE Utilities grew 0.54% and 0.48%, respectively. Among the losers, S&P BSE Metal was the major loser, down 0.54%, followed by S&P BSE Healthcare that fell 0.46%. S&P BSE Basic Materials and S&P BSE Auto fell 0.15% and 0.12%, respectively.
Domestic Indices Performance   
  21-Mar-18 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,155 0.31 -2.33 11.33
S&P BSE Sensex 33,136 0.42 -2.09 12.38
S&P BSE Midcap 16,032 0.22 -2.31 15.72
S&P BSE Smallcap 17,244 0.31 -3.12 22.93
S&P BSE Auto 24,119 -0.12 -1.09 8.74
S&P BSE Bankex 27,256 0.23 -3.15 14.00
S&P BSE CD 21,486 0.18 1.75 46.38
S&P BSE CG 18,531 0.56 -1.09 15.38
S&P BSE FMCG 10,291 0.27 -2.11 10.43
S&P BSE HC 13,382 -0.46 -3.77 -12.69
S&P BSE IT 12,263 0.27 -0.61 17.07
S&P BSE Metal 13,416 -0.54 -9.76 13.16
S&P BSE Oil 14,665 0.32 -5.12 10.16
S&P BSE Power 2,146 0.42 -2.77 -3.80
S&P BSE PSU 7,844 0.27 -6.46 -6.46
S&P BSE Realty 2,326 0.75 -3.18 47.42
S&P BSE Teck 6,602 0.46 -0.80 13.75
VIX Index 15 -3.20 -5.10 26.50
  • Bond yields fell amid indications that the government may take few steps to lessen supply burden of FY19 and borrow more next year through shorter tenure bonds. Also, reports that the government is working on a strategy to bring down bond yields, while the government may attempt another round of buyback before the end of the fiscal further boosted market sentiments.

  • Yield on the 10-year benchmark paper (7.17% GS 2028) fell 4 bps to close at 7.58% as against previous session’s close of 7.62%. During the session, bond yields traded in the range of 7.58% and 7.68%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 6,017 crore (gross) on Mar 21 compared with Rs. 3,460 crore on Mar 20. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 20,367 crore on Mar 20.
Daily Rates    
Key Rates (%) 21-Mar-18 Previous Close Year Ago
10 Yr Gsec 7.58 7.62 6.89
5 Yr AAA Corp Bond 7.93 7.95 7.60
3 Yr AAA Corp Bond 7.70 7.70 7.40
1 Yr AAA Corp Bond 7.48 7.51 6.97
3 Yr AA Corp Bond 8.21 8.21 7.85
1 Yr AA Corp Bond 7.61 7.64 7.38
12 Month CD 7.30 7.27 6.68
3 Month CD 6.82 6.82 6.29
CALL 5.94 5.92 5.92
CBLO 5.95 5.83 5.88


Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on March 21,2018 Debt Equity Debt Equity
Purchases 1,687 5,186 9,896 2,658
Sales 1,113 4,692 9,181 1,771
Net 575 494 715 887
MTD Net -10011 8438 20476 3111

1 As on March 20,2018

  • Straits Times - The index fell 0.06% as investors remained cautious of upcoming U.S. Federal Reserve (Fed) Policy review. However, positive cues from overnight U.S. markets provided some support.
  • Nikkei - The index remained closed on account of public holiday.
  • Hang Seng - The index moved down 0.43% on negative cues from the mainland Chinese market. Investors also preferred to be on sidelines ahead of the U.S. Federal Reserve (Fed) Policy review under the new Fed Chairman and under expectation that the central bank shall raise interest rates by 25 bps.
  • FTSE - The index fell 0.32% as investors remained cautious ahead of the policy decisions by Fed and the Bank of England. Reports that U.K. jobless rate in three months to Jan 2018 was the joint lowest since 1975 boosted investor sentiment.
  • Dow Jones - The index fell 0.18% post volatile session. As widely expected, U.S. Federal Reserve raised interest rates by 25 bps on strength in the broader economy. Also, it continued to expect three rate hikes in 2018. Energy, gold and steel stocks saw gains, however, weakness was visible among telecom and tobacco stocks.


Global Indices Performance   
Global Indices 21-Mar-18 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 24,682 -0.18 -0.47 19.42
Nasdaq 100 6,853 -0.47 1.39 28.52
FTSE  7,039 -0.32 -3.33 -4.60
Straits Times 3,511 -0.06 -0.15 11.16
Nikkei Closed NA NA NA
Hang Seng 31,415 -0.43 -0.06 27.74
Shanghai Composite 3,281 -0.29 NA 0.59
  • Gold prices traded higher as weakness in U.S. dollar against euro underpinned demand for dollar-denominated commodity. Nonetheless, investors awaited the outcome of the upcoming FOMC meeting.

  • Brent Crude prices remained supported by the potential supply disruptions owing to geo political tensions in the Middle East. Oil prices found additional support after data from American Petroleum Institute showed that U.S. crude stocks fell by 2.7 million barrels in the week ending Mar 16.
Commodity Market   
Commodity (INR) 21-Mar-18 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 67.64 3.68 4.79 36.12
Gold (10 gm) 30,300 0.16 -0.31 6.60
Silver (1 kg) 37,927 -0.06 -0.46 -6.57
Aluminium (1 kg) 134.10 -0.78 -5.53 7.11
Copper (1 kg) 436.70 -1.18 -3.78 13.59
  • The Indian rupee closed steady against the greenback as market participants preferred to remain on the sidelines ahead of the outcome of the U.S. Federal Reserve monetary policy review due Mar 21.

  • The euro rose against the greenback as market participants preferred to remain on the sidelines ahead of the outcome of the U.S. Federal Reserve monetary policy review due Mar 21.
Currency Market    
Currency 21-Mar-18 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 65.22 0.03 0.62 -0.15
EURO/INR 79.96 -0.62 0.02 13.75
GBP/INR 91.33 -0.18 0.74 13.27
100 JPY/INR 61.28 -0.08 1.84 5.75
  • The government has extended the facility of hiring workers on fixed-term employment to all sectors to improve the ease of doing business, thereby meeting the announcement made in the Union Budget. Amid major demand of the trade unions, no permanent employee will be moved to fixed term employment. According to the Industrial Establishment (Standing Order) 1946, the facility for hiring on fixed-term contract was initially available only for the apparel manufacturing sector.

  • The Securities and Exchange Board of India (SEBI) has permitted bourses to provide spread benefit in initial margin across futures contracts in commodities. The bourses can charge higher margins depending upon their risk perception. Margin benefit on spread positions shall be entirely withdrawn latest by the start of tender period or the start of the expiry day, whichever is earlier.
Key Economic Indicators   
Indicators Current Previous
GDP 7.20% (Q3 FY'18) 6.50% (Q2 FY'18)
IIP 7.50% (Jan'18) 7.10% (Dec'17)
WPI 2.48% (Feb'18) 2.84% (Jan'18)
CPI 4.44% (Feb'18) 5.07% (Jan'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 5.75 5.75
Repo 6.00 6.00
CRR 4.00 4.00
SLR 19.50 19.50
Bank Rate 6.25 6.25
  • HDFC Bank has mopped up Rs. 2,300 crore in an attractively priced bond-sale. UK-based Sun Global Investments is one of the investment bankers that helped the bank to raise the money. The rate offered was at 8.10% with seven-year maturity. This is for the first time that an Indian lender has used the offshore market to raise rupee-denominated bonds.

  • ICICI Bank announced that it has raised Rs. 4,000 crore from bonds. The proceeds from the raise are expected to be used for fund growth. The notes carry a coupon of 9.15% payable annually and were issued at par.

  • Ashok Leyland announced that it has received an order worth Rs. 321 crore for supply of 2,100 buses from the Institute of Road Transport in Tamil Nadu. Also, the Hinduja Group flagship firm stated that this order is scheduled to be supplied in the first half of next fiscal.

Upcoming Events  
Event Date
Index of Eight Core Industries (Feb 18) 2-Apr-18

Source :ICRON Research


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