• FAQs
  • Downloads
  • Subscribe

    A more comprehensive understanding of investment is just a click away.

    Newsletter subscribed successfully.

  • Facebook
  • Twitter
Back

Daily Updates
Wed,20 Mar 2019

  • Indian equity markets gained for the seventh straight session, registering its longest gaining stint since Dec 19, 2018. Markets touched more than six-month high as investors remained hopeful of a stable government after the elections and the Reserve Bank of India (RBI) might cut rates in its next meeting. Also, a global brokerage firm upgraded its view on India to "overweight".

  • Key benchmark indices S&P BSE Sensex and Nifty 50 gained 0.70% and 0.61% to close at 38,363.47 and 11,532.40, respectively. S&P BSE Mid-Cap and S&P BSE Small Cap gained 0.52% and 0.37%, respectively.

  • The overall market breadth on BSE was strong with 1390 scrips advancing and 1322 scrips declining. A total of 164 scrips remained unchanged.

  • On the BSE sectoral front, S&P BSE Telecom was the major gainer, up 1.75%, followed by S&P BSE Energy and S&P BSE Utilities, up 1.53% and 1.2%, respectively. S&P BSE Fast Moving Consumer Goods and S&P BSE Oil & Gas gained 1.14% and 1.06%, respectively. The biggest losers were S&P BSE Capital Goods and S&P BSE Auto, both down 0.61%, followed by S&P BSE Industrials and S&P BSE Metal, down 0.2% and 0.11%, respectively.

  • Among the 31-stock sensitive Sensex pack, ITC was the major gainer, up 2.45%, followed by NTPC and HCL Tech that grew 2.19% and 2.18%, respectively. Hero MotoCorp was the major loser, down 2.10%.
Domestic Indices Performance   
  19-Mar-19 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 11,532 0.61 8.75 14.25
S&P BSE Sensex 38,363 0.70 8.52 16.52
S&P BSE Midcap 15,220 0.52 9.76 -4.65
S&P BSE Smallcap 14,873 0.37 13.00 -13.67
S&P BSE Auto 19,311 -0.61 6.55 -19.64
S&P BSE Bankex 33,411 0.62 11.87 22.35
S&P BSE CD 23,192 0.62 11.29 8.06
S&P BSE CG 18,144 -0.61 10.37 -1.12
S&P BSE FMCG 11,790 1.14 4.95 15.20
S&P BSE HC 14,270 0.38 7.17 6.61
S&P BSE IT 15,125 0.94 1.61 25.27
S&P BSE Metal 11,300 -0.11 12.11 -16.60
S&P BSE Oil 15,348 1.06 16.99 4.12
S&P BSE Power 2,015 1.04 14.45 -5.27
S&P BSE PSU 7,562 1.32 17.36 -3.60
S&P BSE Realty 2,005 0.26 12.64 -13.28
S&P BSE Teck 7,587 1.03 2.33 16.81
VIX Index 16 -2.43 -10.72 4.24
  • Bond yields moved up as market participants resorted to profit booking ahead of the heavy corporate debt supply and to gain from the recent rally.

  • Yield on the existing 10-year benchmark paper (7.17% GS 2028) rose 6 bps to 7.54% as compared with the previous session’s close of 7.48% after trading in the range of 7.48% to 7.55%.

  • Yield on the upcoming new 10-year benchmark paper (7.26% GS 2029) rose 6 bps to close at 7.38% compared with the previous session’s close of 7.32% after trading in the range of 7.33% to 7.39%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 6,261 crore (gross) on Mar 19, 2019, compared with Rs. 3,661 crore (gross) as on Mar 18, 2019. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 23,802 crore on Mar 18, 2019.
Daily Rates    
Key Rates (%) 19-Mar-19 Previous Close Year Ago
10 Yr Gsec 7.54 7.48 7.61
5 Yr AAA Corp Bond 8.46 8.44 8.17
3 Yr AAA Corp Bond 8.35 8.25 7.98
1 Yr AAA Corp Bond 8.14 8.16 7.73
3 Yr AA Corp Bond 8.78 8.75 8.39
1 Yr AA Corp Bond 8.74 8.77 8.25
12 Month CD 7.41 7.45 7.26
3 Month CD 7.29 7.31 6.79
CALL 6.20 6.20 5.91
T-Repo 6.14 6.14 NA

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on March 19,2019 Debt Equity Debt Equity
Purchases 1,332 6,446 17,817 2,965
Sales 402 3,943 16,427 4,354
Net 930 2,502 1,390 -1,389
MTD Net 6354 23884 54461 -5590

1 As on March 15,2019

  • Straits Times - The index gained 0.25% tracking overnight U.S. markets that increased Overnight, U.S. stocks ended modestly higher, with news on the merger and acquisition front and renewed hopes for a U.S.-China trade deal offering support.
  • Nikkei - The market inched 0.08% down as investors looked forward to the decisions of various central banks around the world pending in the week.
  • Hang Seng - The index increased 0.19% but the upside was restricted as Chinese shares dropped on profit taking after recent gains.
  • FTSE - The index rose 0.34% following gains in auto stocks. However, concerns amid Brexit uncertainty and U.S. Federal Reserve’s monetary policy decision today capped the gains.
  • Dow Jones - The index fell 0.10% following conflicting reports over the progress of U.S.-China trade negotiations. Investors were also cautious ahead of the monetary policy decision of the U.S. Federal Reserve scheduled today.
Global Indices Performance   
Global Indices 19-Mar-19 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 25,887 -0.10 -0.02 5.19
Nasdaq 100 7,349 0.31 4.00 7.06
FTSE  7,324 0.34 2.02 3.99
Straits Times 3,221 0.25 -1.19 -7.93
Nikkei 21,567 -0.08 1.24 0.40
Hang Seng 29,466 0.19 4.39 -6.50
Shanghai Composite 3,091 -0.18 12.17 -5.74
  • Gold prices edged higher on weak dollar as market participants await the outcome of the two-day Fed policy meeting. Expectations are high that the Fed would further reduce their interest rate hike plan for the current year.

  • Brent Crude prices continued to rise amid market sentiments that were swayed by OPEC-led supply cut to tighten the oil market. In addition, U.S. sanction against oil exports by Iran and Venezuela also aided the commodity’s price.
Commodity Market    
Commodity (INR) 19-Mar-19 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 67.47 1.25 1.61 4.83
Gold (10 gm) 31,952 0.72 -4.67 5.96
Silver (1 kg) 37,986 0.99 -5.55 0.22
Aluminium (1 kg) 149.75 0.91 14.31 11.21
Copper (1 kg) 440.00 -0.77 0.09 -1.00
  • The Indian rupee drifted lower on greenback purchases by corporates and importers. The two-day Fed monetary policy meeting also weighed down on the local unit.

  • The euro rose on dollar weakness on expectations that the U.S. Fed may resort to accommodative monetary policy due to concerns over U.S. economic growth. Investors expect a rate cut following weaker than expected U.S. manufacturing data.
Currency Market    
Currency 19-Mar-19 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 68.58 -0.04 -4.04 5.45
EURO/INR 77.82 0.05 -3.70 -2.45
GBP/INR 91.01 -0.12 -1.37 0.50
100 JPY/INR 61.66 0.26 -4.61 0.26
  • The Niti Aayog Chief underlined the importance of increasing investment in the agriculture sector and introducing new technology and reformatory measures and also advocated for doing away with the Agriculture Produce Marketing Committee Essential Commodities Act that restricts the movement of farm produces. He further added the need of spreading good agriculture practice and opined that growth in agriculture sector is imperative in order to achieve 9 to 10% GDP growth.

  • The Goods and Services Tax (GST) Council gave its approval for the implementation of new tax structure for housing units. According to the revenue secretary, the GST rates for the new projects will be applicable from Apr 1, 2019. The Council also mandated that 80% of materials need to be procured from registered dealer while 15% of commercial space would be treated as residential property for GST purpose.
Key Economic Indicators   
Indicators Current Previous
GDP 6.60% (Q3 FY'19) 7.10% (Q2 FY'19)
IIP 1.70% (Jan'19) 2.60% (Dec'18)
WPI 2.93% (Feb'19) 2.76% (Jan'19)
CPI 2.57% (Feb'19) 1.97% (Jan'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 6.00 6.00
Repo 6.25 6.25
CRR 4.00 4.00
SLR 19.25 19.25
Bank Rate 6.50 6.50
  • According to the media reports, Larsen & Toubro, the Mumbai-based engineering firm, has bought a 20.32% stake in Mindtree for Rs. 3,269 crore from the founder of Cafe Coffee day. As per the reports, L&T will pay Rs. 980 per share.

  • Kotak Investment Advisors Limited announced that it has launched a new fund that will partner with DivyaSree Developer to develop and acquire commercial office assets across India. Based in Bengaluru, DivyaSree Developers is a leading -based real estate developer.

  • According to the media reports, Muthoot Pappachan Group’s vehicle finance subsidiary, Muthoot Capital Services has announced that it has raised Rs. 236 crore through a two-wheeler securitisation deal. As per the reports, the entire issuance was bought by HDFC MF.
Event Date
Credit Growth and Deposit Growth 22-Mar-19
Forex Reserves 22-Mar-19
Index of Eight Core Industries 1-Apr-19

Source :ICRON Research

Disclaimer

All information contained in this report has been obtained by ICRA Online Limited from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA Online Limited or its affiliates or group companies and its respective directors, officers, or employees in particular, makes no representation or warranty, express or implied, as to the accuracy, suitability, reliability, timelines or completeness of any such information. All information contained herein must be construed solely as statements of opinion, and ICRA Online Limited, or its affiliates or group companies and its respective directors, officers, or employees shall not be liable for any losses or injury, liability or damage of any kind incurred from and arising out of any use of this document or its contents in any manner, whatsoever. Opinions expressed in this document are not the opinions of our holding company, ICRA Limited (ICRA), and should not be construed as any indication of credit rating or grading of ICRA for any instruments that have been issued or are to be issued by any entity.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.