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Daily Updates
Fri,25 May 2018

  • Indian equity markets closed in the green after a weak rupee drove IT stocks higher. Decline in oil & gas stocks following concerns that the government would impose a windfall tax on oil producers to soften fuel prices capped the gains. Investors kept their eyes on global markets that remained mixed over the fate of trade talks between the U.S. and China coupled with uncertainty about the U.S.-North Korea summit.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.93% and 0.80% to close at 34,663.11 and 10,513.85, respectively. S&P BSE Mid-Cap and S&P BSE Small-Cap fell 0.24% and 0.14%, respectively.

  • The overall market breadth on BSE was weak with 1,391 scrips declining and 1,255 scrips advancing. A total of 133 scrips remained unchanged.

  • On the BSE sectoral front, S&P BSE Oil & Gas was the major loser, down 1.72%, followed by S&P BSE Auto that fell 1.56%. S&P BSE Utilities and S&P BSE Industrials fell 1.03% and 0.72%, respectively. S&P BSE Information Technology was the major gainer, up 2.45% followed by S&P BSE Teck and S&P BSE Telecom that grew 2.37% and 2.23%, respectively.

  • Among the 31-stock sensitive Sensex pack, Bharti Airtel was the major gainer, up 4.11%, followed by Infosys and TCS that grew 3.09% and 3.08%, respectively. Tata Motors was the major loser, down 6.56%, followed by ONGC and Tata MTR DVR that fell 4.50% and 4.40%, respectively.
Domestic Indices Performance   
  24-May-18 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,514 0.80 -0.95 12.32
S&P BSE Sensex 34,663 0.93 0.13 14.39
S&P BSE Midcap 15,662 -0.24 -7.20 11.57
S&P BSE Smallcap 16,954 -0.14 -7.10 16.47
S&P BSE Auto 23,787 -1.56 -7.15 3.08
S&P BSE Bankex 29,242 1.41 4.31 14.36
S&P BSE CD 21,173 -0.32 -6.48 39.51
S&P BSE CG 18,484 0.29 -4.33 8.49
S&P BSE FMCG 11,200 0.41 1.53 14.21
S&P BSE HC 12,908 0.99 -8.22 -7.41
S&P BSE IT 13,529 2.45 2.51 33.50
S&P BSE Metal 13,207 1.00 -7.86 21.77
S&P BSE Oil 13,526 -1.72 -7.48 -1.50
S&P BSE Power 2,080 -0.22 -6.43 -4.99
S&P BSE PSU 7,603 -0.08 -3.07 -10.89
S&P BSE Realty 2,211 -0.49 -7.73 14.64
S&P BSE Teck 6,997 2.37 0.53 23.62
VIX Index 13 -7.15 10.51 11.12
  • Bond yields rose following subdued chances of open market purchase of notes by the central bank. Fall in demand ahead of fresh supply of bonds on May 25 also dampened investor sentiment.

  • Yield on the 10-year benchmark paper (7.17% GS 2028) rose 2 bps to close at 7.87% from the previous close of 7.85%. During the session, bond yields traded in the range of 7.83% and 7.88%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 4,943 crore (gross) on May 24 compared with Rs. 14,767 crore (gross) on May 23. Sale of securities under RBI’s reverse repo window stood at Rs. 11,705 crore on May 23.

  • Banks did not borrow under the central bank’s Marginal Standing Facility on May 23 as against borrowing of Rs. 150 crore on May 22.
Daily Rates    
Key Rates (%) 24-May-18 Previous Close Year Ago
10 Yr Gsec 7.87 7.85 6.80
5 Yr AAA Corp Bond 8.72 8.65 7.45
3 Yr AAA Corp Bond 8.58 8.56 7.33
1 Yr AAA Corp Bond 8.51 8.39 7.10
3 Yr AA Corp Bond 8.91 8.82 7.70
1 Yr AA Corp Bond 8.76 8.67 7.54
12 Month CD 8.19 8.25 6.86
3 Month CD 7.83 7.84 6.41
CALL 5.92 5.97 6.07
CBLO 5.95 6.01 6.11

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on May 24,2018 Debt Equity Debt Equity
Purchases 615 4,452 4,630 3,154
Sales 1,594 4,714 6,449 2,395
Net -979 -262 -1,818 760
MTD Net -18228 -7234 -20289 10529

1 As on May 23,2018

  • Straits Times – The index rose 0.93% after official data showed that Singapore’s GDP growth rose more than initially estimated in the first quarter of 2018.
  • Nikkei – The index fell 1.11% amid worries over new tariff following national security probe launched by U.S. on car and truck imports.
  • Hang Seng – The index rose 0.31% owing to positive impact of dovish minutes of U.S. Federal Reserve’s latest meeting.
  • FTSE - The index fell 0.92% after the U.S. President called off the summit with North Korea. Also, announcement from the U.S. that it plans to investigate whether imports of automobiles and parts harms U.S. national security weighed on the market.
  • Dow Jones - The index fell 0.30% after the U.S. President canceled the summit with North Korea and fall in crude oil prices. Lingering trade concerns after the Commerce Secretary initiated an investigation into whether imports of automobiles and parts threaten to impair U.S. national security further weighed on market.
Global Indices Performance   
Global Indices 24-May-18 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 24,812 -0.30 3.28 18.08
Nasdaq 100 6,950 -0.06 6.77 21.28
FTSE  7,717 -0.92 3.92 2.69
Straits Times 3,529 0.93 -1.55 9.21
Nikkei 22,437 -1.11 0.71 13.65
Hang Seng 30,760 0.31 0.41 20.97
Shanghai Composite 3,155 -0.45 0.82 2.96
  • Gold prices gained ahead of some key economic data releases in the U.S. and on persistent concerns over U.S.-China trade war. Gold prices were last seen trading at $1,295.93 per ounce, compared with the previous close of $1,293.00 per ounce.

  • Brent crude prices eased after the U.S. oil inventories rose 5.8 million barrels in the week to May 18. Oil prices were last seen trading at $79.49 per barrel, compared with the previous close of $79.68 per barrel.
Commodity Market    
Commodity (INR) 24-May-18 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 79.89 0.26 4.30 50.94
Gold (10 gm) 31,164 -0.04 0.11 8.58
Silver (1 kg) 40,128 -0.06 2.21 1.72
Aluminium (1 kg) 155.25 2.21 5.33 23.17
Copper (1 kg) 461.75 -1.68 1.68 24.56
  • The Indian rupee gained against the greenback after minutes of U.S. Federal Reserve’s latest policy meeting indicated that rate hike might occur moving forward, but not at aggressive pace. Gains in the domestic market also supported rupee.

  • Euro rose against the greenback after minutes of the last U.S. Federal Reserve meeting indicated rate hike in future, but not aggressively.
Currency Market    
Currency 24-May-18 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 68.39 0.25 3.05 5.44
EURO/INR 80.14 -0.12 -1.12 10.58
GBP/INR 91.44 0.01 -1.15 8.73
100 JPY/INR 62.40 1.07 2.33 7.66
  • According to media reports, government tenders worth Rs. 13,000 crore were either cancelled or withdrawn. The development took place after the Department of Industrial Policy and Promotion changed regulations for promoting ‘made in India’ goods with a broader objective of boosting income and employment within the country.

  • Data from a major domestic credit rating agency showed that non-performing assets (NPAs) of 26 banks (of which 14 are state-run banks and 12 are private banks) in the Indian banking system grew to Rs. 7.31 lakh crore in Mar 2018 from Rs. 4.82 lakh crore in the same period of the previous year. This corresponds to an increase of more than 50% during the same time period.

  • According to the Financial Services secretary, the government will provide the required capital support to the state-run banks. The remark assumes significance after a major state-run bank reported record loss of Rs. 7,718 crore.
Key Economic Indicators   
Indicators Current Previous
GDP 7.20%  (Q3 FY'18) 6.50%  (Q2 FY'18)
IIP 4.40% (Mar'18) 7.00% (Feb'18)
WPI 3.18% (Apr'18) 2.47% (Mar'18)
CPI 4.58% (Apr'18) 4.28% (Mar'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
  • Jet Airways posted a net loss of Rs. 1,045 crore in the fourth quarter of FY18. It had registered a net profit of Rs. 601.71 crore in the same period of the previous year. Total expenses grew 25% to Rs. 7,091.15 crore, which can be attributed to a 56% increase in plane maintenance costs.

  • Grasim Industries registered a net profit of Rs. 373 crore in the fourth quarter of FY18, an increase of 18% compared with the same period of the previous year. Revenue from operations grew 48% to Rs. 4,606 crore. However, stamp duty on acquisition of assets to the tune of Rs. 213 crore pulled down the company’s profits.

  • Bombay Stock Exchange has entered into an agreement with Brink's India Pvt Ltd. for its much-awaited launch of bullion - gold and silver - commodities trading. Brink's India Pvt Ltd. will provide vaulting and logistics services for storing gold and silver at various places in India.

  • According to media reports, the Department of Telecom gave its approval for sale of standalone mobile towers of Idea Cellular for Rs. 4,000 crore o the Indian arm of American Tower Corporation.
Upcoming Events
Event Date
Forex Reserves 25-May-18
Index of Eight Core Industries (Apr 18) 31-May-18
Quarterly GDP estimate (Q4 of FY18) 31-May-18

Source :ICRON Research

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