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Daily Updates
Tue,12 Dec 2017

  • Indian equity markets closed on a positive note for the third consecutive session ahead of the industrial production and inflation data scheduled during the week. Positive cues from the other regional peers on the back of stronger jobs data from the U.S. and optimism that the ruling party may win the state elections in Gujarat further supported the gains. Meanwhile, the provisional figures of direct tax collections indicated that the net tax collections stood 14.4% higher during Apr-Nov 2017 compared with the corresponding period of last year.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 went up 0.62% and 0.55% to close at 33,455.79 and 10,322.25, respectively. S&P BSE Mid-Cap and S&P BSE Small-Cap rose 0.36% and 0.22%, respectively.

  • The market breadth on BSE was positive with 1,411 scrips advancing and 1,294 scrips declining. A total of 176 scrips remained unchanged.

  • On the BSE sectoral front, all the indices closed in the green barring S&P BSE Oil & Gas (-0.23%), S&P BSE Energy (-0.19%) and S&P BSE Realty (-0.13%). Meanwhile, S&P BSE IT (1.00%) stood as the major gainer followed by S&P BSE TECK (0.88%) and S&P BSE Healthcare (0.69%).
Domestic Indices Performance   
  11-Dec-17 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,322 0.55 0.00 24.94
S&P BSE Sensex 33,456 0.62 0.42 25.08
S&P BSE Midcap 17,106 0.36 3.28 36.47
S&P BSE Smallcap 18,252 0.22 3.45 48.15
S&P BSE Auto 25,488 0.65 2.23 24.55
S&P BSE Bankex 28,752 0.36 -0.58 34.28
S&P BSE CD 21,870 0.18 6.56 95.81
S&P BSE CG 18,495 0.09 -1.29 32.75
S&P BSE FMCG 10,627 0.61 2.64 30.98
S&P BSE HC 14,120 0.69 1.89 -9.16
S&P BSE IT 10,918 1.00 1.72 11.24
S&P BSE Metal 13,783 0.14 -5.81 26.30
S&P BSE Oil 16,076 -0.23 0.61 32.51
S&P BSE Power 2,303 0.37 0.52 13.82
S&P BSE PSU 9,151 0.22 -2.34 14.85
S&P BSE Realty 2,427 -0.13 5.14 86.88
S&P BSE Teck 6,204 0.88 1.34 15.26
VIX Index 14 3.47 4.99 -6.11
  • Bond yields surged as market participants sold debt securities on concerns that retail inflation may increase sharply in Nov 2017 due to rise in food and oil prices. Retail inflation print for Nov 2017 is due Dec 12, 2017. Market participants also remained on the sidelines ahead of the outcome of U.S. Federal Reserve’s monetary policy review due on Dec 13.

  • Yield on the 10-year benchmark paper (6.79% GS 2027) surged 8 bps to close at 7.17% from the previous close of 7.09%. During the session, bond yields traded in the range of 7.08% and 7.18%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 7,430 crore (gross) on Dec 11 compared with borrowings of Rs. 12,667 crore on Dec 8. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 18,276 crore on Dec 8.
Daily Rates    
Key Rates (%) 11-Dec-17 Previous Close Year Ago
10 Yr Gsec 7.18 7.09 7.87
5 Yr AAA Corp Bond 7.49 7.44 7.20
3 Yr AAA Corp Bond 7.29 7.24 7.02
1 Yr AAA Corp Bond 7.04 6.97 6.81
3 Yr AA Corp Bond 7.71 7.66 7.49
1 Yr AA Corp Bond 7.28 7.21 7.26
12 Month CD 6.72 6.68 6.61
3 Month CD 6.24 6.23 6.33
CALL 5.86 5.90 6.19
CBLO 5.90 5.13 5.57

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on December 11,2017 Debt Equity Debt Equity
Purchases 1,063 6,846 5,588 1,932
Sales 964 6,803 6,116 1,633
Net 99 44 -528 300
MTD Net 2359 -4045 358165 109030

1 As on November 27, 2017

  • Straits Times - The index moved up 1.05% following cues from most of the other regional peers and overnight U.S. markets, which gained on stronger than expected U.S. jobs growth in Nov, and further development on Brexit deal between the U.K. and European Union.
  • Nikkei - The index gained 0.56% tracking U.S. markets, which rose on stronger than expected U.S. jobs growth in Nov. Additionally, a survey showed that Japan's business survey index of large manufacturers strengthened again in the fourth quarter. However, stronger yen limited the upside.
  • Hang Seng - The index gained 1.14% on positive cues from mainland Chinese market. Chinese market gained on news that the government is in no hurry to finalize its new asset management rules.
  • FTSE - The index grew 0.80% on weakening in the value of the British pound that provided a boost to shares of exporters. However, gains were capped as investors remained cautious ahead of number of central bank meetings this week.
  • Dow Jones - The index grew 0.23% amid higher energy prices and continued impact of upbeat jobs data for Nov 2017 released on Dec 8. However, investors remained cautious ahead of U.S. Federal Reserve's monetary policy announcement on Dec 13.
Global Indices Performance   
Global Indices 11-Dec-17 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 24,386 0.23 4.11 23.43
Nasdaq 100 6,394 0.78 1.34 30.60
FTSE  7,453 0.80 0.28 7.18
Straits Times 3,460 1.05 1.18 17.06
Nikkei 22,939 0.56 1.13 20.75
Hang Seng 28,965 1.14 -0.53 27.26
Shanghai Composite 3,322 0.98 -3.22 2.76
  • Gold prices inched up ahead of the Federal Open Market Committee (FOMC) meeting during the week. Although there is higher probability of a rate hike in the Dec policy review, investors remained wary of the pace of rate-hike in the coming year.

  • Brent crude prices moved up marginally due to production cuts by the OPEC and non-OPEC producers. However, the upside was limited after energy services firm Baker Hughes mentioned that the number of U.S. oil drilling rigs rose by two to 751 in the week ended Dec 8.
Commodity Market    
Commodity (INR) 11-Dec-17 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 66.16 2.86 2.04 27.89
Gold (10 gm) 28,535 0.15 -3.27 1.66
Silver (1 kg) 37,158 1.89 -5.90 -9.21
Aluminium (1 kg) 128.40 0.00 -5.48 9.04
Copper (1 kg) 423.30 0.36 -4.12 8.43
  • The Indian rupee rose against the greenback following gains in the domestic equity market. However, dollar purchases by state-run banks, most likely on behalf of the central bank capped the gains.

  • Euro strengthened against the greenback on reports of an explosion in midtown Manhattan. Downbeat U.S. wages data for Nov 2017 further weighed on the greenback.
Currency Market    
Currency 11-Dec-17 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 64.36 -0.16 -1.00 -4.77
EURO/INR 75.81 0.01 0.09 5.64
GBP/INR 86.33 -0.82 0.91 1.41
100 JPY/INR 56.68 -0.28 -1.15 -4.03
  • Data from Securities and Exchange Board of India (SEBI) showed that domestic companies raised Rs. 50,855 crore through private placement of debt securities in Nov 2017. This corresponds to growth of 31.6% compared with the same period of the previous year. In terms of volume, 145 issues were made in Nov 2017 compared with 221 in same period of the previous year. With the latest mobilisation, the total fund raised through private placement of debt securities stood at Rs. 4.2 lakh crore. In the previous fiscal, domestic companies raised Rs. 6.4 lakh crore through private placement of bonds.

  • Data from Society of Indian Automobile Manufacturers (SIAM) showed that sales of domestic passenger vehicles grew 14.29% to 2,75,417 units in Nov 2017 from 2,40,983 units in the same month of the previous year. Domestic car grew 4.49% to 1,81,395 units as against 1,73,607 units in Nov 2016. Sales of motorcycles grew 23.25% to 9,59,122 units as against 7,78,173 units in the same period of the previous year. Sales of two-wheeler vehicles grew 23.49% to 15,35,277 units compared to 12,43,246 units in Nov 2016.
Key Economic Indicators   
Indicators Current Previous
GDP 6.30% (Q2 FY'18) 5.70% (Q1 FY'18)
IIP 3.80% (Sep'17) 4.50% (Aug'17)
WPI 3.59% (Oct'17) 2.60% (Sep'17)
CPI 3.58% (Oct'17) 3.28% (Sep'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
  • Drug firm Alembic Pharmaceuticals informed that the U.S. health regulator has granted fast track designation to its associate company Rhizen Pharmaceuticals SA's RP6530 (tenalisib), which will be used for treating cancer.

  • Novo Nordisk in partnership with Torrent Pharmaceuticals, inaugurated the extended insulin manufacturing facility at the latter’s Indrad factory near Ahmedabad. The company, through the expansion, aims to add another two million patients under its insulin therapy. According to media reports, Novo Nordisk is regarded as the market leader in India for insulin products.

  • According to media reports, GAIL India Ltd. will import about 5 million tonnes (MT) of LNG from the U.S. in the next fiscal. GAIL will thus replace the volumes that it buys from the spot market.

  • According to media reports, Apple Inc has asked the Indian government to defer a planned increase in import taxes on mobile phone parts so it can expand its iPhone manufacturing in the country. However, the government is unlikely to agree to the demands.
Upcoming Events  
Event Date
Index of Industrial Production (Oct) 12-Dec-17
Consumer Price Index (Nov) 12-Dec-17
Wholesale Price Index (Nov) 14-Dec-17
Forex Reserves 15-Dec-17

Source :ICRON Research

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