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Daily Updates
Tue,15 Jan 2019

  • Indian equity markets lost on weak global cues as China’s trade figures declined unexpectedly to their two-year lows. This has stoked global growth fears among investors all over the world. On the domestic front, index of industrial production data dropped significantly for Nov 2018, adding to investor woes. The saving grace came in the form of gains in the stock of an information technology major as it gave an upbeat revenue growth guidance.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 dropped 0.43% and 0.53%, respectively, to close at 35,853.56 and 10,737.60, respectively. S&P BSE Mid-Cap and S&P BSE Small Cap lost 0.49% and 0.44%, respectively.

  • The overall market breadth on BSE was weak with 1508 scrips declining and 1014 scrips advancing. A total of 192 scrips remained unchanged.

  • On the BSE sectoral front, S&P BSE Healthcare was the major gainer, up 0.38%, followed by S&P BSE Information Technology, up 0.09%. S&P BSE Teck was unchanged. S&P BSE Capital Goods was the major loser, down 1.93%, followed by S&P BSE Utilities and S&P BSE Metal, down 1.43% and 1.14%, respectively. S&P BSE Power and S&P BSE Industrials lost 1.13% and 0.99%, respectively.
Domestic Indices Performance
  14-Jan-19 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,738 -0.53 -0.63 0.53
S&P BSE Sensex 35,854 -0.43 -0.30 3.65
S&P BSE Midcap 15,102 -0.49 -0.60 -16.73
S&P BSE Smallcap 14,536 -0.44 0.24 -27.29
S&P BSE Auto 19,950 -0.15 -4.46 -24.68
S&P BSE Bankex 30,549 -0.82 1.82 4.99
S&P BSE CD 20,911 -0.05 -0.09 -12.04
S&P BSE CG 17,882 -1.93 -3.34 -10.79
S&P BSE FMCG 11,938 -0.18 1.39 10.37
S&P BSE HC 14,073 0.38 2.40 -5.98
S&P BSE IT 14,061 0.09 -4.11 20.18
S&P BSE Metal 11,006 -1.14 -5.40 -30.54
S&P BSE Oil 13,111 -0.57 -2.24 -19.87
S&P BSE Power 1,954 -1.13 0.93 -18.88
S&P BSE PSU 7,058 -0.79 1.30 -23.69
S&P BSE Realty 1,820 -0.72 -0.99 -34.14
S&P BSE Teck 7,085 0.00 -3.15 7.64
VIX Index 16 5.28 6.60 17.70
  • Bond yield eased as market participants expect inflation to lower ahead of the release of the retail inflation date. This also raises expectations of monetary easing in the near future.

  • Yield on the 10-year benchmark paper (7.17% GS 2028) decreased 7 bps to close at 7.43% as compared with 7.50% in the previous session after trading in the range of 7.42% to 7.48%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 3,636 crore (gross) on Jan 14, 2019 compared with a borrowing of Rs. 3,327 crore (gross) on Jan 11, 2019. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 12,829 crore on Jan 11, 2019.

  • Banks borrowed Rs. 213 crore under the central bank’s Marginal Standing Facility on Jan 11, 2019 compared with borrowing of Rs. 225 crore on Jan 10, 2019.
Daily Rates
Key Rates (%) 14-Jan-19 Previous Close Year Ago
10 Yr Gsec 7.43 7.50 7.46
5 Yr AAA Corp Bond 8.34 8.38 8.00
3 Yr AAA Corp Bond 8.40 8.44 7.81
1 Yr AAA Corp Bond 8.43 8.43 7.72
3 Yr AA Corp Bond 8.88 8.92 8.35
1 Yr AA Corp Bond 8.60 8.62 8.12
12 Month CD 8.13 7.90 7.13
3 Month CD 7.11 7.48 6.86
CALL 6.37 6.35 5.91
T-Repo 6.38 6.38 --

 

Institutional Flows 
(INR Cr) FII Flows MF Flows1
As on January 14,2019 Debt Equity Debt Equity
Purchases 1,440 3,220 9,013 2,956
Sales 1,233 3,845 8,706 2,652
Net 208 -625 307 304
MTD Net 875 -3300 25327 2887

1As on January 10,2019

  • Straits Times - The index dropped 0.79% on weak Chinese trade data and as investors awaited U.S. earnings season.
  • Nikkei - The market was closed on account of a public holiday.
  • Hang Seng - The index lost 1.38% on global economic growth concerns. China’s exports and imports for Dec 2018 decreased at the worst pace seen in two years, making investors anxious of rapid slowdown in the economy due to the trade war with U.S. and weakening global activity.
  • FTSE - The index fell after Chinese exports showed contraction, which increased concerns of a slowdown in global growth. Markets were also weighed down by concerns surrounding the ongoing U.S. government shutdown.
  • Dow Jones - The index declined as contraction in Chinese exports increased concerns of a slowdown in global growth. Data showed China’s exports plunged 4.4% YoY in Dec 2018, reflecting the biggest drop in two years. Uncertainty about the impact of the ongoing government shutdown kept investors wary of taking firm positions.
Global Indices Performance
Global Indices 14-Jan-19 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 23,910 -0.36 -0.79 -7.34
Nasdaq 100 6,541 -0.91 -0.82 -3.22
FTSE  6,855 -0.91 0.14 -11.87
Straits Times 3,173 -0.79 3.13 -9.86
Nikkei Closed NA NA NA
Hang Seng 26,298 -1.38 0.78 -16.28
Shanghai Composite 2,536 -0.71 -2.24 -26.05
  • Gold prices edged up on dollar weakness and softness in the global equity market. The decline in import and export numbers from China raised concerns over global growth and pulled down the Asian and European equity markets. Gold prices were last seen trading at $1,295.16 per ounce compared with $1,287.50 per ounce.

  • Brent crude price lowered following weak Chinese import and export data. Oil prices were last seen trading at $57.84 per barrel compared with the previous close of $58.88 per barrel.
Commodity Market
Commodity (INR) 14-Jan-19 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 58.44 -0.75 -0.10 -17.06
Gold (10 gm) 32,117 0.00 2.37 7.64
Silver (1 kg) 39,129 0.00 4.69 1.02
Aluminium (1 kg) 127.95 0.00 -6.50 -9.06
Copper (1 kg) 413.60 0.88 -5.22 -8.96
  • The Indian rupee depreciated against the greenback as investors risk taking appetite for emerging market assets lowered following China’s weak trade data for Dec.

  • The euro declined against the greenback following a data that revealed that the eurozone’s third largest economy, Italy, could enter into a recession.
Currency Market
Currency 14-Jan-19 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 70.82 0.50 -1.27 11.49
EURO/INR 81.25 0.05 -0.27 6.16
GBP/INR 90.96 1.17 0.42 5.71
100 JPY/INR 65.50 0.72 3.64 14.73
  • India’s Wholesale Price Index-based inflation (WPI) came in at 3.80% in Dec 2018 as against 4.64% in Nov 2018 as prices of onions and fruits came down. Wholesale price inflation was at 3.58% in Dec 2017. Onion inflation fell 63.83% in Dec compared with a fall of 47.60% in Nov 2018. Fruit inflation fell 3.69% in Dec compared with 2.49% in Nov. Crude petroleum increased at a slower pace of 17.49% as against a rise of 40.06% in Nov. Inflation in food articles fell 0.07% as against a fall of 3.31% in Nov. Inflation in vegetables decreased 17.55% as against a fall of 26.98% in Nov. The WPI Food Index came in at 0.07% in Dec against -1.96% in Nov 2018.

  • India’s retail inflation plunged to an eighteen month low of 2.19% in Dec 2018 from 2.33% in the previous month and 5.21% in the same month of the previous year. The plunge came as food prices continued to decline with the consumer food price index contracting 2.51% in Dec 2018 compared to a contraction of 2.61% in the previous month but an expansion of 4.96% in the same month of the previous year.
Key Economic Indicators
Indicators Current Previous
GDP 7.10% (Q2 FY'19) 8.20% (Q1 FY'19)
IIP 0.50% (Nov'18) 8.10% (Oct'18)
WPI 3.80% (Dec'18) 4.64% (Nov'18)
CPI 2.19% (Dec'18) 2.33% (Nov'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 6.25 6.25
Repo 6.50 6.50
CRR 4.00 4.00
SLR 19.50 19.50
Bank Rate 6.75 6.75
  • The chief executive officer (CEO) of Flipkart-owned fashion retailer Myntra. The company has abolished the CEO position and Flipkart executive has been named the new head of Myntra, according to media reports. The new head would lead the Myntra-Jabong business and report directly to Flipkart CEO.

  • According to media news, Etihad Airways PJSC has agreed to raise its stake in Jet Airways to 49%. This means Jet’s founder and chairman will give up majority control of the carrier. Goyal’s stake could drop to 20% from 51% after the revamp and his voting rights could be capped at 10%.

  • State-run Bharat Petroleum Corp. Ltd (BPCL) plans to raise $500 million from the international bond market, according to media reports. BPCL is India’s second largest refiner and fuel retailer. It will raise capital through the sale of foreign currency convertible bonds to meet its capital expenditure.
Upcoming Events
Event Date
Consumer Price Index (Dec 18) 14-Jan-19
Wholesale Price Index (Dec 18) 14-Jan-19
Trade Deficit (Dec 18) 15-Jan-19
Forex Reserves 18-Jan-19

Source :ICRON Research

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