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Daily Updates
Wed,21 Feb 2018

  • Indian equity markets closed in the red amid losses in bank stocks as worries intensified about fallout from a $1.77 billion fraud at a public-sector bank. Also, weakness in Asian markets as investors awaited for the minutes of the latest U.S. Federal Reserve meeting for clues on the U.S. rate outlook weighed on the market sentiment.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.21% and 0.17% to close at 33,703.59 and 10,360.40, respectively. S&P BSE Mid-Cap and S&P BSE Small-Cap fell 0.06% and 0.15%, respectively.

  • The overall market breadth on BSE was weak with 1,513 scrips declining and 1,243 scrips advancing. A total of 144 scrips remained unchanged.

  • On the BSE sectoral front, S&P BSE Realty was the top loser and was down 0.64%, followed by S&P BSE Bankex (-0.61%), S&P BSE Finance (-0.43%), S&P BSE Capital Goods (-0.30%) and S&P BSE Auto (-0.27%). Among the gainers, S&P BSE Consumer Durables was the top gainer, up 1.66%, followed by S&P BSE Metal and S&P BSE Telecom, which rose 1.19% and 0.77%, respectively. S&P BSE Basic Materials and S&P BSE Teck rose 0.63% and 0.45%, respectively.

  • Among the 31-stock sensitive Sensex pack, Mahindra & Mahindra was the major loser, down 2.48%, followed by Axis Bank and Kotak Bank, that fell 1.44% and 1.09%, respectively. Yes Bank and Reliance fell 1.06% and 0.70%, respectively.
Domestic Indices Performance
  20-Feb-18 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,360 -0.17 -4.90 16.68
S&P BSE Sensex 33,704 -0.21 -5.09 17.59
S&P BSE Midcap 16,420 -0.06 -7.57 21.50
S&P BSE Smallcap 17,831 -0.15 -8.35 31.21
S&P BSE Auto 24,432 -0.27 -6.08 12.48
S&P BSE Bankex 28,061 -0.61 -7.92 19.29
S&P BSE CD 21,239 1.66 -9.91 57.04
S&P BSE CG 18,844 -0.30 -6.70 22.92
S&P BSE FMCG 10,435 -0.07 -3.94 18.21
S&P BSE HC 14,075 -0.26 -5.34 -8.73
S&P BSE IT 12,073 0.31 -1.40 16.11
S&P BSE Metal 15,059 1.19 -1.34 27.08
S&P BSE Oil 15,391 0.01 -3.10 15.61
S&P BSE Power 2,214 0.31 -6.31 -1.40
S&P BSE PSU 8,380 0.41 -7.86 -2.13
S&P BSE Realty 2,422 -0.64 -7.64 65.09
S&P BSE Teck 6,539 0.45 -3.66 12.92
VIX Index 17 1.20 20.63 23.93
  • Bond yields rose as banks continued to sell domestic papers amid higher U.S. Treasury yields. Fresh supply of papers through an auction of state government debt also weighed on investor’s sentiment.

  • Yield on the 10-year benchmark paper (7.17% GS 2028) rose 9 bps to close at 7.67% as against previous session’s close of 7.58%. During the session, bond yields traded in the range of 7.60% and 7.70%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 5,825 crore (gross) on Feb 20 compared with Rs. 4,055 crore on Feb 16. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 27,066 crore on Feb 16.

  • Banks borrowed Rs. 453 crore under the central bank’s Marginal Standing Facility on Feb 16 as against no borrowing on Feb 15.
Daily Rates
Key Rates (%) 20-Feb-18 Previous Close Year Ago
10 Yr Gsec 7.67 Closed 6.90
5 Yr AAA Corp Bond 7.89 Closed 7.38
3 Yr AAA Corp Bond 7.79 Closed 7.12
1 Yr AAA Corp Bond 7.64 Closed 6.86
3 Yr AA Corp Bond 8.20 Closed 7.60
1 Yr AA Corp Bond 8.04 Closed 7.34
12 Month CD 7.48 Closed 6.61
3 Month CD 7.23 Closed 6.39
CALL 5.96 Closed 5.98
CBLO 5.98 Closed 5.87

 

Institutional Flows 
(INR Cr) FII Flows MF Flows1
As on February 20,2018 Debt Equity Debt Equity
Purchases 173 9,846 6,774 2,579
Sales 675 8,689 4,510 2,718
Net -503 1,157 2,264 -139
MTD Net 2713 -5687 17955 5352

1 As on February 14,2018

  • Straits Times – The index fell 0.33% as investors remained cautious ahead of the minutes of the Federal Reserve’s latest policy meeting and a slew of speeches by Fed officials, scheduled during this week to assess the outlook for rate tightening.
  • Nikkei – The index fell 1.01% as financials, manufacturing and energy stocks traded in negative territory, while technology stocks finished the day on a mixed note.
  • Hang Seng – The index slipped 0.78%, compared with the previous trading session on Feb 15, amid thin trading volume in China and Taiwan.
  • FTSE - The index ended closed almost flat as gains erased after one of the European mining giant and a major bank’s Dec quarter results were lower than market expectation.
  • Dow Jones - The index fell on concerns of rise in interest rates and after a U.S. retail giant saw sharp decline in share prices. Retail giant post its worst fall since Jan 1988.
Global Indices Performance
Global Indices 20-Feb-18 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 24,965 NA -4.25 21.05
Nasdaq 100 6,780 NA -0.80 27.32
FTSE  7,247 -0.01 -6.26 -0.73
Straits Times 3,477 -0.33 -2.08 12.27
Nikkei 21,925 -1.01 -7.91 13.89
Hang Seng 30,874 NA -4.28 27.86
Shanghai Composite Closed NA NA NA
  • Gold prices traded lower ahead of the minutes of the Fed's latest policy meeting, for potential indications on the pace of future rate hikes by Fed. Gold prices were last seen trading at $1339.78 per ounce, compared with previous session’s close of $1346.31 per ounce.

  • Brent Crude prices traded lower, amid concerns that rising U.S. oil output could dampen OPEC’s efforts to drain the market of excess supplies. Oil prices were last seen trading at $63.62 per barrel, compared with the previous close of $64.19 per barrel.
Commodity Market
Commodity (INR) 20-Feb-18 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 63.92 -0.42 -6.97 16.66
Gold (10 gm) 30,567 -0.22 2.03 4.36
Silver (1 kg) 38,263 -0.53 -1.16 -10.38
Aluminium (1 kg) 144.45 -0.24 0.52 14.87
Copper (1 kg) 457.70 0.00 1.65 14.38
  • The Indian rupee weakened amid reports that India may consider tightening approvals for firms borrowing funds offshore. The rupee fell 0.90% to close at 64.79 per dollar from the previous close of 64.21 per dollar.

  • The euro weakened against the greenback amid decline in eurozone’s economic sentiment index for Feb 2018. Euro fell 0.52% and was trading at $1.2342, down from the previous close of $1.2407.
Currency Market
Currency 20-Feb-18 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 64.53 NA 1.27 -3.66
EURO/INR 79.86 NA 2.19 12.39
GBP/INR 90.13 NA 1.67 8.34
100 JPY/INR 60.35 NA 4.97 2.01
  • The Union Cabinet approved six projects for a cost of Rs. 11,661 crore for laying new railway lines as well as for electrification of tracks. The projects would encompass 881 km of lines in Uttar Pradesh, Madhya Pradesh, Bihar and Odisha. The project is expected to generate 200 lakh person days of employment in the four states. The project is most likely to be completed by 2022-2023.

  • The Union Cabinet gave its approval to introduce the Chit Funds (Amendment) Bill, 2018 in Parliament. The objective of the move is to help bring about orderly growth of the chit funds sector by eliminating bottlenecks faced by the industry and provide more financial products to investors.

  • The Reserve Bank of India is considering tightening the approval process for offshore borrowing. The objective of the move is to avoid defaults to improve the trust of international investors in Indian issuers.
Key Economic Indicators
Indicators Current Previous
GDP 6.30% (Q2 FY'18) 5.70% (Q1 FY'18)
IIP 7.10% (Dec'17) 8.80% (Nov'17)
WPI 2.84% (Jan'18) 3.58% (Dec'17)
CPI 5.07% (Jan'18) 5.21% (Dec'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 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



  • IIFL Home Loans, a subsidiary of India Infoline announced that it aims to more than double its loan book to Rs. 28,000 crore by 2020 mainly due to its focus on affordable housing segment. Currently, IIFL Home Loans has a loan book of Rs. 12,000 crore.

  • Infrastructure investment trust (InvIT) IndiGrid announced that it will acquire a partial stake in Patran Transmission for Rs. 2.32 billion. This will thereby be the first third-party acquisition by an InvIT in the country. Additionally, IndiGrid has also acquired three assets from its sponsor Sterlite Power Grid Ventures for Rs. 14.10 billion.

  • According to the media reports, HDFC has begun discussions for a possible acquisition of Apollo Munich Health Insurance. This comes after HDFC, India’s largest mortgage company raised capital to pursue an inorganic growth strategy.

  • Ambuja Cements posted standalone profit of Rs. 338 crore, up 89% YoY for the quarter ended Dec 2017 from Rs. 179 crore in the year-ago period. The significant increase reflects robust cement demand as impact of cash ban and goods and service tax faded.
Upcoming Events
Event Date
RBI Interest Rate Decision  7-Feb-18
Industrial Production YoY (December) 10-Feb-18
CPI Inflation Rate YoY (January) 13-Feb-18
WPI Inflation YoY (January) 14-Feb-18
GDP Growth Rate YoY (December Quarter of 2017) 28-Feb-18

Source :ICRON Research

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