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Daily Updates
Wed,18 Oct 2017

  • Indian equity markets witnessed a volatile trading session before closing on a flat note. However, Nifty 50 touched record closing highs amid optimism over corporate earnings and strong buying by domestic investors. However, S&P BSE Sensex retreated as investors preferred to cash in recent profits.

  • While S&P BSE Sensex slipped 0.08% to close at 32,609.16, Nifty 50 edged up 0.04% to close at 10,234.45. Meanwhile, S&P BSE Mid-Cap and S&P BSE Small-Cap rose 0.40% and 0.53%, respectively.

  • The overall market breadth on BSE was positive with 1,375 scrips advancing and 1,301 scrips declining. A total of 129 scrips remained unchanged.

  • On the BSE sectoral front, majority of the indices closed in the green. S&P BSE Telecom was the top gainer, up 2.77%, followed by S&P BSE Realty and S&P BSE Oil & Gas, which went up 0.79% and 0.74%, respectively. S&P BSE Capital Goods and S&P BSE Energy rose 0.43% and 0.40%, respectively. Meanwhile, S&P BSE Bankex and S&P BSE IT were the major losers, down 0.24% each, followed by S&P BSE Consumer Durables and S&P BSE Finances, which slipped 0.20% and 0.03%, respectively.
Domestic Indices Performance
  17-Oct-17 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,234 0.04 1.48 20.12
S&P BSE Sensex 32,609 -0.08 1.04 18.45
S&P BSE Midcap 16,115 0.40 0.89 21.23
S&P BSE Smallcap 17,066 0.53 2.27 30.20
S&P BSE Auto 25,052 0.03 2.32 13.48
S&P BSE Bankex 27,682 -0.24 -1.06 26.83
S&P BSE CD 18,415 -0.20 1.84 44.05
S&P BSE CG 17,523 0.43 -3.50 19.42
S&P BSE FMCG 10,254 0.11 1.16 21.36
S&P BSE HC 14,285 0.38 3.79 -10.88
S&P BSE IT 10,405 -0.24 3.33 3.05
S&P BSE Metal 14,749 0.25 5.53 46.93
S&P BSE Oil 15,807 0.74 3.79 30.57
S&P BSE Power 2,243 0.17 -2.01 13.28
S&P BSE PSU 8,573 0.41 -0.65 11.96
S&P BSE Realty 2,172 0.79 -0.85 43.39
S&P BSE Teck 5,959 0.10 4.87 7.85
VIX Index 12 2.65 -0.58 -25.84
  • Bond yields rose as market participants sold debt securities ahead of holidays later in the week. Media reports that the government might face a potential shortfall in indirect tax collections in this fiscal also weighed on market sentiment. Worries that the next U.S. Federal Reserve chief might be more hawkish on the monetary policy also added to the losses.

  • Yield on the 10-year benchmark paper (6.79% GS 2027) rose 3 bps to at 6.76% from the previous close of 6.73%. During the session, bond yields traded in the range of 6.74% and 6.78%.

  • Banks borrowed Rs. 3,215 crore under the central bank’s Marginal Standing Facility on Oct 16 compared with Rs. 279 crore borrowed on Oct 13.
Daily Rates
Key Rates (%) 17-Oct-17 Previous Close Year Ago
10 Yr Gsec 6.77 6.73 6.85
5 Yr AAA Corp Bond 7.19 7.18 7.30
3 Yr AAA Corp Bond 7.04 7.03 7.20
1 Yr AAA Corp Bond 6.83 6.79 7.08
3 Yr AA Corp Bond 7.59 7.58 7.68
1 Yr AA Corp Bond 7.26 7.22 7.47
12 Month CD 6.59 6.59 6.86
3 Month CD 6.19 6.19 6.49
CALL 5.99 6.01 6.25
CBLO 6.02 6.04 6.25


Institutional Flows 
(INR Cr) FII Flows MF Flows1
As on October 17,2017 Debt Equity Debt Equity
Purchases 1,078 5,486 619 110
Sales 205 5,311 291 101
Net 873 174 328 9
MTD Net 11627 -3156 19822 5182

1As on October 13, 2017

  • Straits Times - The index inched up 0.18% following cues from overnight U.S. market. Meanwhile, Singapore's non-oil domestic exports declined unexpectedly in Sep 2017.
  • Nikkei – The index gained 0.38% following positive cues from overnight U.S. markets. Improved crude oil prices, weak yen and optimism over favourable outcome of Japanese election also helped gains.
  • Hang Seng – The index gained 0.02% ahead of a key meeting in China. Weak cues from Chinese market also restricted gains.
  • FTSE - The index in a sideways trend and closed slightly lower at the end. Market participants continue to track the political situation in Spain.
  • Dow Jones - The index rose modestly after moving in a range during the session. Upside was supported by two U.S. health care major who reported better than expected Sep 2017 quarter results. However, a U.S. financial major fell despite reporting upbeat results.
Global Indices Performance
Global Indices 17-Oct-17 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 22,997 0.18 3.27 27.15
Nasdaq 100 6,123 0.13 2.25 27.66
FTSE  7,516 -0.14 4.17 8.18
Straits Times 3,329 0.18 3.72 18.17
Nikkei 21,336 0.38 7.17 26.25
Hang Seng 28,697 0.02 3.20 24.57
Shanghai Composite 3,372 -0.19 0.55 10.88
  • Gold prices fell on stronger dollar and as investors remained cautious over the nomination of the next U.S. Federal Reserve chair. However, the downside was limited on geopolitical tensions and concerns over the pace of U.S. interest rate hikes.

  • Brent crude prices inched up on tensions between Iraqi troops and Kurdish forces threatened supply disruption from northern Iraq and as geopolitical tension rose between the U.S. and Iran. Investors also remained watchful ahead of weekly data on crude stockpiles.
Commodity Market
Commodity (INR) 17-Oct-17 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 56.72 0.25 -0.96 15.40
Gold (10 gm) 29,671 -0.66 -0.85 -0.23
Silver (1 kg) 39,432 -1.47 -2.30 -5.33
Aluminium (1 kg) 137.05 -1.30 3.43 24.76
Copper (1 kg) 462.45 3.10 10.70 48.67
  • The Indian rupee weakened for the first time in seven sessions against the U.S. dollar following reports from the U.S. President of choosing a hawkish person to replace the existing U.S. Federal Reserve chair.

  • Euro fell against the U.S. dollar as speculations that the existing U.S. Federal Reserve chair will be replaced by a more hawkish person supported greenback.
Currency Market
Currency 17-Oct-17 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 64.92 0.25 1.32 -2.78
EURO/INR 76.42 0.04 0.03 4.16
GBP/INR 86.04 0.03 -0.10 5.81
100 JPY/INR 57.87 -0.10 -0.09 -9.75

  • Market regulator, the Securities and Exchange Board of India (SEBI) has stated in a circular that exchanges should prefer physical settlement system for commodity derivatives contracts. This move is expected to help hedgers manage risk better and curb excessive manipulation. However, cash settlement route would be considered in certain scenarios such as physical delivery is difficult to implement due to intangibility of commodity, inadequate logistics or transport infrastructure and difficult to store due to low shelf life or inadequate storage infrastructure.

  • The International Monetary Fund (IMF) has suggested India to consider setting up an independent fiscal council after the country accepted a public debt anchor at 60% of GDP. Therefore, setting up of an independent fiscal council will help India establish its public debt as a safe asset. IMF experiences from other countries have seen that independent fiscal council has helped both in terms of transparency and accountability towards the general public.
Key Economic Indicators
Indicators Current Previous
GDP 5.70% (Q1 FY'18) 6.10% (Q4 FY'17)
IIP 4.30% (Aug'17) 0.90% (Jul'17)
WPI 2.60% (Sep'17) 3.24% (Aug'17)
CPI 3.28% (Sep'17) 3.28% (Aug'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

  • Wipro reported rise in its consolidated net profit by 5.5% sequentially to Rs. 2,191.7 crore for quarter ended Sep 2017. The growth in consolidated net profit was mainly driven by fall in total expenses, lower finance cost and higher other income.
  • Axis Bank reported 35% YoY increase in net profit to Rs. 432.38 crore for the second quarter ended Sep 2017 compared with Rs. 319.08 crore in the corresponding quarter last year. However, the asset quality of the company worsened as its gross non-performing assets (NPA) increased to 5.90% in the quarter from 5.03% reported in the year-ago quarter.

  • Bajaj Auto’s net profit declined marginally from Rs. 1,123 crore in the quarter ended Sep 2016 to Rs. 1,112 crore in the quarter ended Sep 2017. However, the company’s turnover rose 1% YoY in the quarter ended Sep 2017.

  • Federal Bank reported 31% YoY rise in net profit to Rs. 264 crore in the quarter ended Sep 2017 as against Rs. 201 crore recorded a year earlier. The surge in net profit came due to 25% growth in loans, stable margins and steady asset quality.
Upcoming Events
Event Date
Forex Reserves 20-Oct-17
Money Supply 25-Oct-17

Source :ICRON Research


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