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Daily Updates
Tue,18 Sep 2018

  • Indian equity markets were dragged by weak global cues after U.S. President decided to impose fresh tariffs on $200 billion of Chinese goods. Investor sentiments were further dented as a global research and brokerage firm cut its Indian equities rating to ‘market-weight’ from ‘over-weight’, after remaining ‘strategically overweight’ on the same since 2014. It expects the markets to consolidate ahead of the general elections and maintains a 12-month Nifty 50 target of 12,000.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 fell 1.33% and 1.19% to close at 37585.51 and 11377.75, respectively. S&P BSE Mid Cap and S&P BSE Small Cap fell 0.76% and 0.05% respectively.

  • The overall market breadth on BSE was weak with 1465 scrips declining and 1265 scrips advancing. A total of 184 scrips remained unchanged.

  • On the BSE sectoral front, barring S&P BSE Realty, S&P BSE Power and S&P BSE Utilities, all the indices closed in the red. S&P BSE Finance was the major loser, down 1.44%, followed by S&P BSE Energy and S&P BSE Consumer Durables, which fell 1.30% and 1.25%, respectively. S&P BSE FMCG and S&P BSE Bankex slipped 1.20% and 1.08%, respectively.
Domestic Indices Performance   
  17-Sep-18 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 11,378 -1.19 -0.81 12.81
S&P BSE Sensex 37,586 -1.33 -0.95 16.46
S&P BSE Midcap 16,226 -0.76 -0.49 1.58
S&P BSE Smallcap 16,663 -0.05 -1.20 -0.15
S&P BSE Auto 24,004 -1.00 -1.53 -1.96
S&P BSE Bankex 30,291 -1.08 -4.94 8.27
S&P BSE CD 20,476 -1.25 -7.13 13.24
S&P BSE CG 18,429 -0.67 3.21 1.49
S&P BSE FMCG 11,923 -1.20 -4.43 17.63
S&P BSE HC 16,062 -1.08 6.98 16.70
S&P BSE IT 15,726 -0.13 4.20 56.17
S&P BSE Metal 14,050 -0.29 9.09 0.53
S&P BSE Oil 14,843 -0.21 0.52 -2.54
S&P BSE Power 2,111 0.14 6.77 -7.76
S&P BSE PSU 7,650 -0.25 -0.61 -11.35
S&P BSE Realty 2,095 1.36 -1.76 -4.33
S&P BSE Teck 7,841 -0.18 3.09 38.01
VIX Index 15 4.77 10.18 24.14
  • Bond yields eased following the finance ministry’s announcement that the government is expected to lay down details on import restriction within this week. This trails the central bank’s declaration of notes purchase under open market operation, which lifted the market sentiment.

  • Yield on the 10-year benchmark paper (7.17% GS 2028) eased 3 bps to 8.10% compared with the previous closing of 8.13% after trading in a range of 8.09% to 8.19%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 20,256 crore (gross) on Sep 17 compared with a borrowing of Rs. 3,956 crore (gross) on Sep 14. Sale of securities under the Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 59,320 crore on Sep 14.
Daily Rates    
Key Rates (%) 17-Sep-18 Previous Close Year Ago
10 Yr Gsec 8.10 8.13 6.60
5 Yr AAA Corp Bond 8.88 8.93 7.36
3 Yr AAA Corp Bond 8.78 8.84 7.12
1 Yr AAA Corp Bond 8.78 8.80 7.04
3 Yr AA Corp Bond 9.37 9.44 7.83
1 Yr AA Corp Bond 9.05 9.07 7.77
12 Month CD 8.38 8.40 6.52
3 Month CD 7.48 7.40 6.14
CALL 6.58 6.43 5.85
CBLO 6.54 5.57 5.99

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on September 17,2018 Debt Equity Debt Equity
Purchases 529 7,247 7,365 2,799
Sales 997 6,567 6,520 1,675
Net -468 680 845 1,125
MTD Net -5557 -3638 19778 3967

1 As on September 12,2018

  • Straits Times - The index fell 0.63% as investors remained cautious trade war concerns. Further, Singapore's exports growth moved down in Aug due to fall in demand for electronics goods and non-oil domestic exports grew 5% annually during the same period, following a 11% rise seen in Jul.
  • Nikkei - The index remained closed on account of public holiday.
  • Hang Seng - The index moved down by 1.30% on worries over fresh U.S. tariff imposition on Chinese goods which might further impact the other emerging markets. Worries over global trade tension after the U.S. – Canada trade talks ended without any conclusion, also weighed on the sentiments.
  • FTSE - The index fell 0.03% as investors remained cautious amid ongoing global trade concerns. Reports that U.S. President intends to proceed with plans to impose tariffs on $200 billion worth of Chinese goods soon weighed on the indices. However, gains in retail stocks boosted the indices.
  • Dow Jones - The index fell 0.35% due to lingering trade concerns. U.S. President stated that an announcement on trade with China would be made after the close of trading. Weakness in technology, and semiconductor stocks weighed on the indices.
Global Indices Performance   
Global Indices 17-Sep-18 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 26,062 -0.35 1.53 17.04
Nasdaq 100 7,435 -1.47 0.78 24.16
FTSE  7,302 -0.03 -3.39 1.20
Straits Times 3,141 -0.63 -2.12 -2.12
Nikkei Closed NA NA NA
Hang Seng 26,933 -1.30 -1.03 -3.15
Shanghai Composite 2,652 -1.11 -0.64 -20.93
  • Gold prices went up with the escalating trade dispute between U.S. and China. The U.S. is preparing for a fresh round of tariff worth $200 billion on Chinese goods. Gold prices were last seen trading at $ 1,198.31 per ounce, against the previous close of $ 1,193.31 per ounce.

  • Brent crude prices continued to surge as market participants stay wary ahead of the U.S. sanction on Iran, which comes into effect in Nov. Oil prices were last seen trading at $78.17 per barrel, compared with the previous close of $77.81 per barrel.
Commodity Market    
Commodity (INR) 17-Sep-18 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 78.16 0.45 12.74 36.48
Gold (10 gm) 30,614 0.18 4.27 2.30
Silver (1 kg) 36,702 0.37 0.11 -9.06
Aluminium (1 kg) 144.00 -0.48 2.60 8.68
Copper (1 kg) 418.90 -2.66 3.41 0.28
  • The Indian rupee slumped against the greenback amid increased dollar demand from importers and widening trade deficit.

  • The euro saw reasonable gains after the greenback was unable to sustain early gains from the worsening U.S.-China trade feud. Market participants are keeping a close watch on dollar as China is not expected to play defence in the intensifying tariff fight.
Currency Market    
Currency 17-Sep-18 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 72.55 1.03 3.31 13.22
EURO/INR 84.40 0.50 5.54 10.47
GBP/INR 94.94 0.83 6.24 10.24
100 JPY/INR 64.78 0.92 2.26 11.84
  • India has introduced an anti-subsidy probe into increased imports of select copper wire rods from Indonesia, Malaysia, Thailand and Vietnam. The probe comes following complaints by domestic players. As per a notification from the Directorate General of Trade Remedies (DGTR), there is "prima facie evidence" of existence of subsidies on production and exports of 'continuous cast copper wire rods' in these four countries. As per DGTR, such subsidised imports are hurting the domestic industry with their volume and price effects.

  • Under the government’s flagship scheme Pradhan Mantri Krishi Sinchai Yojana (PMKSY), the National Bank for Agriculture and Rural Development (NABARD) has approved Rs. 65,634.93 crore loan so far to 93 prioritised irrigation projects. Under the PMKSY, through long term irrigation fund (LTIF), NABARD is funding the central and state share of 99 prioritised irrigation projects.
Key Economic Indicators   
Indicators Current Previous
GDP 8.20% (Q1 FY'19) 7.70% (Q4 FY'18)
IIP 6.60% (Jul'18) 6.90% (Jun'18)
WPI 4.53% (Aug'18) 5.09% (Jul'18)
CPI 3.69% (Aug'18) 4.17% (Jul'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
  • Motilal Oswal Real Estate (MORE)’s India Realty Excellence Fund IV (IREF IV), its fourth real estate fund, has raised Rs. 5.75 billion. The money raised came from high net worth individuals (HNIs) and family offices.

  • Policybazaar Group’s healthcare venture, Docprime.com, has received an initial internal funding of $50 million from the parent company.

  • Cadila Healthcare has planned to launch at least 50 products in the U.S. market during FY19. The company is going strong on boosting its pipeline for the world’s largest single-country drug market.
Upcoming Events  
Event Date
Forex Reserves 21-Sep-18
Index of Eight Core Industries (Aug 18) 1-Oct-18

Source :ICRON Research

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