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Fri,17 May 2019

  • Indian equity markets managed to gain in a day of volatile trade. Though global clues were weak, investors found solace in a strong rupee and rate-cut hopes. Globally, markets were affected by U.S. President declaring national emergency over threats against American technology.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 gained 0.75% and 0.90%, respectively, to close at 37,393.48 and 11,257.10, respectively. S&P BSE Mid-Cap and S&P BSE Small Cap gained 0.27% and 0.25%, respectively.

  • The overall market breadth on BSE was weak with 1124 scrips advancing and 1360 scrips declining. A total of 141 scrips remained unchanged.

  • On the BSE sectoral front, S&P BSE Oil & Gas was the major gainer, up 1.53%, followed by S&P BSE Basic Materials and S&P BSE Realty, up 1.52% and 1.34%, respectively. S&P BSE Metal and S&P BSE Power gained 1.33% each. S&P BSE Telecom was the major loser, down 1.15%, followed by S&P BSE Healthcare and S&P BSE Fast Moving Consumer Goods, down 0.13% and 0.02%, respectively.
Domestic Indices Performance   
  16-May-19 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 11,257 0.90 -4.50 4.80
S&P BSE Sensex 37,393 0.75 -4.79 5.67
S&P BSE Midcap 14,155 0.27 -8.80 -11.67
S&P BSE Smallcap 13,817 0.25 -8.93 -21.21
S&P BSE Auto 17,793 0.45 -12.08 -28.23
S&P BSE Bankex 32,235 0.89 -6.18 9.80
S&P BSE CD 23,546 0.70 -0.34 10.25
S&P BSE CG 17,496 0.70 -5.75 -7.78
S&P BSE FMCG 11,339 -0.02 -5.28 -0.04
S&P BSE HC 13,334 -0.13 -8.18 0.37
S&P BSE IT 15,539 1.25 -0.33 17.16
S&P BSE Metal 10,479 1.33 -10.83 -25.30
S&P BSE Oil 14,579 1.53 -2.13 0.54
S&P BSE Power 1,862 1.33 -9.63 -12.91
S&P BSE PSU 7,158 1.28 -5.38 -7.03
S&P BSE Realty 1,956 1.34 -8.94 -15.89
S&P BSE Teck 7,606 1.14 -1.75 10.34
VIX Index 28 -1.01 30.80 111.09
  • Bond yields remained unchanged amid the country’s ongoing general elections. Market participants have reduced activities and are awaiting the poll’s results, which is due on May 23, 2019.

  • Yield on the 10-year benchmark paper (7.26% GS 2029) closed unchanged at 7.38% after trading in a range of 7.37% to 7.41%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 6,136 crore (gross) on May 16, 2019, compared with Rs. 11,491 crore (gross) as on May 15, 2019. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 12,701 crore on May 15, 2019.

  • Banks borrowed Rs. 182 crore under the central bank’s Marginal Standing Facility on May 15, 2019 compared with no borrowings on May 14, 2019.
Daily Rates    
Key Rates (%) 16-May-19 Previous Close Year Ago
10 Yr Gsec 7.38 7.38 7.90
5 Yr AAA Corp Bond 8.41 8.49 8.59
3 Yr AAA Corp Bond 8.26 8.38 8.52
1 Yr AAA Corp Bond 8.26 8.22 8.16
3 Yr AA Corp Bond 8.65 8.64 8.85
1 Yr AA Corp Bond 8.76 8.90 8.53
12 Month CD 7.52 7.52 8.07
3 Month CD 7.08 7.16 7.33
CALL 5.96 5.95 5.89
T-Repo 5.91 5.88 NA

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on May 16,2019 Debt Equity Debt Equity
Purchases 3,897 4,209 11,680 2,098
Sales 1,339 5,256 11,019 1,796
Net 2,558 -1,048 662 302
MTD Net -1366 -3862 6632 6562

1 As on May 15,2019

  • Straits Times - The index gained 0.36% tracking gains in overnight U.S. markets. U.S. stocks rose on reports that a U.S. delegation could go to China for trade talks as early as next week.
  • Nikkei - The market dropped 0.59% on trade war worries but further losses were restricted on reports stating U.S. President plans to delay imposing tariffs on auto imports by up to six months so that negotiations can continue.
  • Hang Seng - The market was flattish, up just 0.02%, tracking Chinese market that gained on hopes that Beijing could increase stimulus to support the economy.
  • FTSE - The index rose 0.78% following ease in trade tensions after U.S. President plans to delay the implementation of auto tariffs on European car imports. However, a national emergency declared by the U.S. President with respect to the threats against information and communications technology and services caped the gains.
  • Dow Jones - The index rose 0.84% following strong corporate earnings from many big corporates. Upbeat U.S. economic data further boosted the markets. However, gains were capped after a national emergency was declared by the U.S. President with respect to the threats against information and communications technology and services.
Global Indices Performance   
Global Indices 16-May-19 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 25,863 0.84 -2.23 4.42
Nasdaq 100 7,580 1.02 -0.97 9.38
FTSE  7,354 0.78 -1.56 -4.92
Straits Times 3,230 0.36 -3.05 -8.57
Nikkei 21,063 -0.59 -5.21 -7.28
Hang Seng 28,275 0.02 -6.16 -9.11
Shanghai Composite 2,956 0.58 -9.16 -6.75
  • Gold prices were marginally down amid rally in the stock market and the U.S. dollar following the U.S.-China trade development. Gold prices were last seen trading at $1,294.03 per ounce, compared with the previous close of $1,296.42 per ounce.

  • Brent crude prices moved up on escalating geopolitical tension in the Middle East over the attack on Saudi Arabian oil tankers and pipelines. Oil prices were last seen trading at $74.27 per barrel, compared with the previous close of $74.08 per barrel.
Commodity Market    
Commodity (INR) 16-May-19 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 75.69 2.17 6.04 -4.41
Gold (10 gm) 32,051 -0.60 1.30 3.54
Silver (1 kg) 37,070 -0.56 -0.30 -5.12
Aluminium (1 kg) 146.80 0.44 -1.81 -6.68
Copper (1 kg) 424.55 0.35 -5.22 -6.68
  • The Indian rupee surged following greenback sales by foreign banks possibly on behalf of their corporate clients.

  • The euro was marginally up after the U.S. officials said to expect a delay in U.S. tariffs on European autos. However, the single currency’s upside was almost nullified by the anxiety over the upcoming European parliamentary elections.
Currency Market    
Currency 15-May-19 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 70.21 -0.30 0.91 3.51
EURO/INR 78.69 -0.59 0.05 -2.00
GBP/INR 90.63 -0.64 -0.50 -1.15
100 JPY/INR 64.01 -0.37 2.98 4.05
  • The Reserve Bank of India (RBI) has laid out a list of 12 objectives, including four-fold increase in digital payments, reduction in paper-based transactions, improved pricing, better customer grievance redressal mechanisms and establishment of new payment system operators (PSO), in Payment and Settlement System in India Vision 2019-21. RBI aims to achieve these in the next three years.

  • According to RBI data, India's services imports in Mar 2019 grew 10.55% to $11.37 billion. The trade balance in services for the month under review is estimated at $6.58 billion.

  • As per media reports, the Central Electricity Authority (CEA) expects electricity generation from conventional power sources to rise 6.4% YoY to 1,330 billion units (BU) in FY20. Conventional power sources comprise 80% of the total production capacity.
Key Economic Indicators   
Indicators Current Previous
GDP 6.60% (Q3 FY'19) 7.00% (Q2 FY'19)
IIP -0.10% (Mar'19) 0.10% (Feb'19)
WPI 3.07% (Apr'19) 3.18% (Mar'19)
CPI 2.92% (Apr'19) 2.86% (Mar'19)

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 19.00 19.00
Bank Rate 6.25 6.25
  • JSW Energy’s net profit of Rs. 5.79 crore for the Mar 2019 quarter. The power generation business of the Sajjan Jindal-promoted JSW Group had posted a loss of Rs. 480.05 crore in the same period last year. Revenue from operations rose 8.4% over the same period to Rs. 1924.58 crore with consolidated plant load factors (PLF) at 54%, against 51.9% in the year-ago period.

  • Bajaj Finance’s consolidated net profit increased 57% to Rs. 1,176.06 crore for the quarter ended Mar 2019. The consolidated results of Bajaj Finance include its wholly-owned subsidiaries – Bajaj Housing Finance and Bajaj Financial Securities. Bajaj Finance posted a net interest income of Rs. 3,395 crore in Q4FY19, up 50% YoY.

  • Hindalco Industries reported a 37.4% decline in standalone profit to Rs. 235.82 crore for the quarter ended Mar 31. The Aditya Birla Group flagship firm had posted a standalone profit of Rs. 376.97 crore in the year-ago period.
Upcoming Events
Event Date
Forex Reserve 17-May-19
GDP Estimate (Q4FY19) 31-May-19
Index of Eight Core Industries (Apr 19) 31-May-19

Source :ICRON Research

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