05 Dec 2018
Markets for You
Global Indices
Global Indices 04-Dec Prev_Day Abs. Change
% Change
#
Dow Jones 25,027 25,826 -799 -3.10
Nasdaq 7,158 7,442 -283 -3.80
FTSE 7,023 7,062 -40 -0.56
Nikkei 22,036 22,575 -539 -2.39
Hang Seng 27,260 27,182 78 0.29
Indian Indices 04-Dec Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 36,134 36,241 -107 -0.29
Nifty 50 10,870 10,884 -14 -0.13
Nifty 100 11,086 11,103 -17 -0.15
Nifty Bank 26,694 26,858 -164 -0.61
SGX Nifty 10,924 10,912 12 0.11
S&P BSE Power 1,953 1,958 -6 -0.30
S&P BSE Small Cap 14,514 14,494 20 0.14
S&P BSE HC 14,160 14,159 1 0.01
Date P/E Div. Yield P/E Div. Yield
4-Dec 23.39 1.22 26.30 1.22
Month Ago 22.72 1.26 25.40 1.25
Year Ago 24.29 1.18 25.91 1.12
Nifty 50 Top 3 Gainers
Company 04-Dec Prev_Day
% Change
#
BPCL 334 324 3.01
Indiabulls HFC 804 783 2.64
United Phos 751 733 2.57
Nifty 50 Top 3 Losers Domestic News
Company 04-Dec Prev_Day
% Change
#
Sun Pharma 443 455 -2.74
M&M 740 761 -2.73
Grasim Indus 846 865 -2.18
Advance Decline Ratio
BSE NSE
Advances 1156 815
Declines 1417 972
Unchanged 144 101
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* -35767
MF Flows** 116861
*4
th
Dec 2018; **3
rd
Dec 2018
Economic Indicator
YoY(%) Current Year Ago
CPI
3.31%
(Oct-18)
3.58%
(Oct-17)
IIP
4.50%
(Sep-18)
4.10%
(Sep-17)
GDP
7.10%
(Sep-18)
6.30%
(Sep-17)
05 December 2018
Since May-17, MOSPI has revised base year of IIP & WPI from 2004-05 to 2011-12, and for CPI
from 2010 to 2012
Indian Equity Market
Indices Performance
P/E Dividend Yield
Sensex
7.00%
(Jun-18)
8.20%
(Jun-18)
Quarter Ago
Inflow/Outflow
-760
162
4.17%
(Jul-18)
After gaining for six consecutive days, Indian equity markets fell as
investors remained cautious ahead of the outcome of the Monetary
Policy Committee’s fifth monetary policy review meeting on Dec 5, 2018.
Weakness in rupee and surge in oil prices ahead of the impending
meeting in Vienna where OPEC is expected to discuss a production cut
added to the losses.
Further, investors were cautious ahead of the results of crucial
assembly election in five states due on Dec 11, 2018. Weakness in global
markets amid uncertainty whether China and the U.S. will be able to
permanently resolve trade differences dampened investor sentiment.
Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.29% and
0.13% to close at 36,134.31 and 10,869.50, respectively. S&P BSE Mid-
Cap fell 0.07%, however, and S&P BSE Small Cap grew 0.14%.
The overall market breadth on BSE was weak with 1,417 scrips
declining and 1,156 scrips advancing. A total of 144 scrips remained
unchanged.
The Securities and Exchange Board of India (SEBI) has given approval to
the Metropolitan Stock Exchange (MSE) for the launch of weekly options
on U.S. DollarIndian Rupee (USD-INR) and two new currency products.
A weekly hedging product Currency Options on USD-INR is being
introduced by the exchange that will enable participants to reduce their
cost of hedging.
The National Stock Exchange announced that it has introduced futures
on overnight call rate (Mumbai Inter-Bank Offer Rate or MIBOR). This is
expected to provide participants an opportunity to manage risk
exposures. MIBOR is the interest rate at which banks borrow from
another for short term purposes.
SEBI has been recommended by a high-level panel to permit direct
listing of Indian companies on overseas bourses and of foreign firms on
Indian exchanges. Currently, Indian companies can list their shares
through depository receipts abroad. Meanwhile, foreign companies have
to go through the Indian Depository Receipt route for listing of equities.
SEBI has made the settlement rules more attractive to help fast-track
cases. The new norms will be effective from Jan 1, 2019. The market
regulator has included confidentiality and lenient terms for approvers,
however, not for settling the cases of defaulters and fugitive economic
offenders. SEBI stated that it will not settle proceeding in case the
alleged default has widely impacted the market and has resulted in
losses to a large number of investors.
SEBI has issued stricter cybersecurity framework for stock brokers and
depository participants. The new norms that will be effective from Apr
2019 come on the wake of concerns over possible data breaches. With
the new norms, the stock brokers and depository participants would be
required to define the responsibilities of individuals which will include
outsourced staff that have privileged access to the networks.
Markets for You
Asian equity markets were mostly lower as investors took stock of the
announcement by U.S. and China of a 90-day trade truce wherein the
two will cooperate with each other. Investors became sceptical of the
chances of U.S. and China ironing out their differences in the 90-day
time. Today (as of Dec 05), Asian markets opened lower following an
overnight plunge on Wall Street as investors worried about a potential
economic slowdown. Both Nikkei and Hangseng were trading down
1.07% and 1.89%, respectively (as at 8.a.m. IST).
As per the last close, European markets closed lower following profit
taking by investors and lingering worries around U.S.-China trade war.
As per the last close, U.S markets closed lower after the yield on two-
year notes rose above the yield on five-year notes, which was perceived
as an indicator of an upcoming economic slowdown. Profit taking by
investors and lingering worries around U.S.-China trade further added to
the losses.
FII Derivative Trade Statistics 04-Dec
(Rs Cr) Buy
Sell Open Int.
Index Futures 2354.35 1953.09 22407.98
Index Options 44812.01 45982.47 54580.76
Stock Futures 13957.15 13606.71 84424.91
Stock Options 7148.94 7032.55 4460.44
Total 68272.45 68574.82 165874.09
04-Dec Prev_Day
Change
Put Call Ratio (OI) 1.70 1.68 0.03
Indian Debt Market
Put Call Ratio(Vol) 1.10 1.03 0.07
04-Dec Wk. Ago Mth. Ago
Year Ago
Call Rate 6.35% 6.37% 6.41% 5.83%
T-Repo 6.30% 6.40% -- --
Repo 6.50% 6.50% 6.50% 6.00%
Reverse Repo 6.25% 6.25% 6.25% 5.75%
91 Day T-Bill 6.70% 6.73% 6.90% 6.12%
364 Day T-Bill 7.18% 7.20% 7.42% 6.19%
10 Year Gilt 7.57% 7.73% 7.78% 7.08%
G-Sec Vol. (Rs.Cr) 50826 33537 52876 29146
Currency Market Update
FBIL MIBOR Closed 6.58% 6.55% 6.00%
3 Month CP Rate 7.75% 7.80% 8.60% 6.81%
5 Year Corp Bond 8.52% 8.53% 8.65% 7.72%
1 Month CD Rate 6.61% 6.80% 6.97% 6.07%
3 Month CD Rate 7.37% 7.35% 7.56% 6.25%
1 Year CD Rate 8.27% 8.51% 8.34% 6.63%
Commodity Market Update
Currency 04-Dec Prev_Day
Change
USD/INR 70.35 70.03 0.32
GBP/INR 89.65 89.50 0.14
EURO/INR 80.08 79.59 0.49
International News
JPY/INR 0.62 0.62 0.01
Commodity 04-Dec Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 53.16 51.26 63.07 57.43
Brent Crude($/bl) 61.24 59.17 70.20 64.24
Gold( $/oz) 1238 1214 1232 1276
Gold(Rs./10 gm) 30945 30673 31565 29086
Source: Thomson Reuters Eikon
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
05 December 2018
The information herein is meant only for general reading purposes and contains all factual and statistical information pertaining to Industry and markets which have been obtained from independent
third party sources and which are deemed to be reliable. The information provided cannot be considered as guidelines, recommendations or as a professional guide for the readers. It may be noted
that since Reliance Nippon Life Asset Management Company Limited (RNLAM) (formerly Reliance Capital Asset Management Limited) has not independently verified the accuracy or authenticity of
such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrive data; RNLAM does not in any manner assures
the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect RNLAM’s views or opinions, which in turn may have been
formed on the basis of such data or information. The Sponsor(s), the Investment Manager, the Trustee or any of their respective directors, employees, affiliates or representatives do not assume any
responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such data or information. Whilst no action has been solicited based upon the information provided herein, due
care has been taken to ensure that the facts are accurate and opinions given are fair and reasonable, to the extent possible. This information is not intended to be an offer or solicitation for the
purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own investigations. Before making any investments, the
readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor(s), the Investment Manager, the Trustee,
their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on
account of lost profits arising from the information contained in this material.
Readers are requested to click here for ICRON disclaimer - http://www.icraonline.com/legal/standard-disclaimer.html
Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
Nifty Dec 2018 Futures were at 10,907.75 points, a premium of 38.25
points, above the spot closing of 10,869.50. The turnover on NSE’s
Futures and Options segment rose to Rs. 4,70,285.85 crore on Dec 4
compared with Rs. 4,25,998.99 crore on Dec 3.
The Put-Call ratio stood at 0.88 compared with the previous session’s
close of 0.97.
The Nifty Put-Call ratio stood at 1.70 compared with the previous
session’s close of 1.68.
India VIX dipped 1.81% to 17.8925 compared with 18.2225 at the
previous trading session.
Open interest on Nifty Futures stood at 20.56 million as against the
previous session’s close at 20.25 million.
Bond yield declined on hopes that the Monetary Policy Committee
would cut the inflation forecast and hold interest rate at the conclusion
of the 3-day monetary policy meeting ending Dec 5, 2018.
Yield on the 10-year benchmark paper (7.17% GS 2028) declined 6 bps
to 7.57% compared with 7.63% in the previous session after trading in
the range of 7.56% to 7.62%.
Banks’ borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 3,141 crore (gross) on Dec 4 compared with a
borrowing of Rs. 3,621 crore (gross) on Dec 3. Sale of securities under
Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 60,162
crore on Dec 3.
Banks borrowed Rs. 177 crore under the central bank’s Marginal
Standing Facility on Dec 3 compared with borrowing of Rs. 311 crore on
Nov 30.
The Indian rupee was slightly lower as investors stayed on the
sidelines ahead of the Monetary Policy Committee’s decision on interest
rates. The rupee closed at 70.49 a dollar compared with the previous
close of 70.45.
The euro continued to gain on dollar weakness with the decline in U.S.
Treasury yields. Weak U.S. inflation triggered concerns of an economic
slowdown, which made market participants grow cautious, encouraging
them to dispose the greenback.
Gold prices surged against the greenback as the later continued to
remain weak following the G20 summit in Argentina.
Brent crude prices saw a sharp surge ahead of the impending meeting
in Vienna where the OPEC could discuss a production cut to support the
falling price.
According to a report released by the Institute for Supply
Management, U.S. manufacturing Purchasing Managers’ Index (PMI)
rose to 59.3 in Nov 2018 after falling to 57.7 in Oct 2018. The
unexpected increase was due to strong demand.
According to survey data from IHS Markit, U.K. construction PMI rose
to 53.4 in Nov 2018 from 53.2 in Oct 2018. The rise came due to
increase in new work and consequent gains in job creation.
According to the Bank of Japan, the monetary base in Japan rose 6.1%
YoY in Nov 2018 to 501.330 trillion yen as against two straight months of
5.9% gains. Banknotes and coins in circulation rose 3.5% and 1.1% YoY,
respectively. Also, current account balances rose 6.9%, including a 6.0%
increase in reserve balances.
Markets for You
Thank you for
your time.