06 Dec 2018
Markets for You
Global Indices
Global Indices 05-Dec Prev_Day Abs. Change
% Change
#
Dow Jones Closed 25,027 NA NA
Nasdaq Closed 7,158 NA NA
FTSE 6,922 7,023 -101 -1.44
Nikkei 21,919 22,036 -117 -0.53
Hang Seng 26,820 27,260 -441 -1.62
Indian Indices 05-Dec Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 35,884 36,134 -250 -0.69
Nifty 50 10,783 10,870 -87 -0.80
Nifty 100 10,989 11,086 -97 -0.88
Nifty Bank 26,520 26,694 -174 -0.65
SGX Nifty 10,849 10,924 -75 -0.68
S&P BSE Power 1,913 1,953 -39 -2.00
S&P BSE Small Cap 14,338 14,514 -176 -1.21
S&P BSE HC 13,875 14,160 -284 -2.01
Date P/E Div. Yield P/E Div. Yield
5-Dec 23.48 1.21 26.09 1.23
Month Ago 22.72 1.26 25.33 1.26
Year Ago 24.22 1.19 25.89 1.12
Nifty 50 Top 3 Gainers
Company 05-Dec Prev_Day
% Change
#
HUL 1848 1808 2.24
HDFC Ltd. 1973 1939 1.75
HCL Tech 1051 1036 1.43
Nifty 50 Top 3 Losers Domestic News
Company 05-Dec Prev_Day
% Change
#
Sun Pharma 413 443 -6.76
Hindalco 221 233 -5.14
Tata Steel 518 538 -3.81
Advance Decline Ratio
BSE NSE
Advances 746 473
Declines 1826 1311
Unchanged 146 91
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* -35739
MF Flows** 116623
*5
th
Dec 2018; **5
th
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)
06 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
Nifty
7.00%
(Jun-18)
8.20%
(Jun-18)
Quarter Ago
Inflow/Outflow
0
27
4.17%
(Jul-18)
Indian equity markets closed in the red for the second consecutive day
amid volatile trade especially in the second half of the session. Markets
fell even though the Monetary Policy Committee kept policy rates
unchanged, which was in line with expectations. Metal stocks came under
pressure as prices of industrial metals declined over trade war concerns,
thereby weighing on the indices. Auto stocks also witnessed steep decline
after a major credit agency lowered the credit rating of a luxury car unit of
an auto major.
Further, weak global cues due to sharp fall in long-term U.S. Treasury
yields and resurgent trade concerns raised worries about global economic
growth, thereby weighing on the investor sentiment.
Key benchmark indices S&P BSE Sensex and Nifty 50 fell 0.69% and
0.80% to close at 35,884.41 and 10,782.90, respectively. S&P BSE Mid-Cap
and S&P BSE Small Cap fell 1.22% and 1.21%, respectively.
The overall market breadth on BSE was weak with 1,826 scrips declining
and 746 scrips advancing. A total of 146 scrips remained unchanged.
On the BSE sectoral front, S&P BSE Metal stood as the major loser,
followed by S&P BSE Auto and S&P BSE Basic Materials.
The Monetary Policy Committee (MPC) in its fifth bi-monthly monetary
policy review for FY19 kept key policy repo rate on hold for the second
consecutive time after it increased the same by 25 bps each in Jun 2018
and Aug 2018. The move comes as MPC is of the view that even though
retail inflation came down sharply in Oct 2018, inflation in the fuel and
light group remained at elevated levels. MPC also noted that concerns of a
global trade war, slowing down of global demand and tightening of
monetary policies across the globe may adversely impact the growth
prospects of the Indian economy.
The Monetary Policy Committee has proposed to lower the Statutory
Liquidity Ratio (SLR) by 25 basis points (bps) every calendar quarter until it
reaches 18% of Net Demand and Time Liabilities (NDTL).
On the inflation front, MPC lowered its retail inflation outlook. Including
the HRA impact, MPC lowered the retail inflation outlook to 2.7%-3.2% for
second half of FY19 as against its earlier projection of 3.9%-4.5%. For the
first half of FY20, MPC projected retail inflation in the range of 3.8% to
4.2%. MPC lowered its projection of retail inflation due to weakening of
food prices, sharp fall in international crude oil prices, fading effect of the
7th Central Pay Commission’s HRA and on the assumption that monsoon
will remain normal. However, MPC noted a broad-based increase in
inflation in non-food groups.
MPC retained its expectation for gross domestic product (GDP) growth
at 7.4% for FY19. It expects GDP growth to be 7.5% in the first half of
FY20. MPC expects that going forward, financial market volatility, slowing
global demand and rising trade tensions may adversely impact exports
from the country.
The Monetary Policy Committee has decided that Reserve Bank of India
will provide information on daily Cash Reserve Ratio (CRR) balance of the
banking system to the market participants on the very next day.
Accordingly, with effect from Dec 6, 2018, the daily Money Market
Operations press release will contain the CRR figure for the previous day.
Markets for You
Asian markets fell tracking weak cues from U.S. after 10-year Treasury
yield fell to its lowest level in three months, signaling worries about long-
term economic growth. Meanwhile, investors are sceptical around the
U.S.-China trade agreement announced over the weekend. Today (as of
Dec 06), Asian markets opened lower as investors were concerned ahead
of a closely watched meeting by the Organization of the Petroleum
Exporting Countries (OPEC). Both Nikkei and Hangseng were trading
down 1.56% and 2.26%, respectively (as at 8.a.m. IST).
As per the last close, European markets closed lower as U.S.-China trade
war worries worsened investor fears about global economic growth.
Brexit-related uncertainty also contributed to the losses.
U.S markets were closed on account of National Day of Mourning for a
former U.S. President.
FII Derivative Trade Statistics 05-Dec
(Rs Cr) Buy
Sell Open Int.
Index Futures 1981.75 1944.49 23380.16
Index Options 52523.20 51775.93 55404.46
Stock Futures 12287.02 12686.13 85125.85
Stock Options 5152.06 5320.42 5097.22
Total 71944.03 71726.97 169007.69
05-Dec Prev_Day
Change
Put Call Ratio (OI) 1.63 1.70 -0.07
Indian Debt Market
Put Call Ratio(Vol) 0.97 1.10 -0.13
05-Dec Wk. Ago Mth. Ago
Year Ago
Call Rate 6.36% 6.36% 6.41% 5.82%
T-Repo 6.34% 6.34% 6.17% --
Repo 6.50% 6.50% 6.50% 6.00%
Reverse Repo 6.25% 6.25% 6.25% 5.75%
91 Day T-Bill 6.71% 6.77% 6.90% 6.11%
364 Day T-Bill 7.15% 7.21% 7.43% 6.23%
10 Year Gilt 7.44% 7.64% 7.81% 7.06%
G-Sec Vol. (Rs.Cr) 85464 55612 11970 30226
Currency Market Update
FBIL MIBOR* 6.47% 6.53% 6.54% 5.96%
3 Month CP Rate 7.55% 7.75% 8.50% 6.83%
5 Year Corp Bond 8.42% 8.47% 8.64% 7.71%
1 Month CD Rate 6.67% 6.88% 6.91% 6.17%
3 Month CD Rate 7.29% 7.27% 7.49% 6.23%
1 Year CD Rate 8.25% 8.50% 8.32% 6.63%
Commodity Market Update
Currency 05-Dec Prev_Day
Change
USD/INR 70.52 70.35 0.17
GBP/INR 89.45 89.65 -0.20
EURO/INR 79.84 80.08 -0.24
International News
JPY/INR 0.62 0.62 0.00
Commodity 05-Dec Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 52.59 50.01 63.07 57.61
Brent Crude($/bl) 61.42 57.56 71.77 64.24
Gold( $/oz) 1237 1221 1231 1266
Gold(Rs./10 gm) 30855 30394 31739 29068
Source: Thomson Reuters Eikon; *As on 04-Dec-2018
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
06 December 2018
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Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
Nifty Dec 2018 Futures were at 10,827.65 points, a premium of 42.70
points, above the spot closing of 10,784.95. The turnover on NSE’s
Futures and Options segment rose to Rs. 7,46,751.53 crore on Dec 5
compared with Rs. 4,70,285.85 crore on Dec 4.
The Put-Call ratio stood at 0.83 compared with the previous session’s
close of 0.88.
The Nifty Put-Call ratio stood at 1.63 compared with the previous
session’s close of 1.70.
Open interest on Nifty Futures stood at 20.90 million as against the
previous session’s close at 20.56 million.
Bond yield declined following the outcome of the Monetary Policy
Committee’s policy review meeting. The key interest rate remained
unchanged at 6.50% and the inflation forecast was reduced to 2.7%-
3.2% for the latter half of the fiscal.
Yield on the 10-year benchmark paper (7.17% GS 2028) declined 13
bps to 7.44% compared with 7.57% in the previous session after trading
in the range of 7.42% to 7.59%.
Banks’ borrowings under the repo window of the Liquidity Adjustment
Facility (LAF) stood at Rs. 2,716 crore (gross) on Dec 5 compared with a
borrowing of Rs. 3,141 crore (gross) on Dec 4. Sale of securities under
Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 16,324
crore on Dec 4.
Banks borrowed Rs. 50 crore under the central bank’s Marginal
Standing Facility on Dec 4 compared with borrowing of Rs. 177 crore on
Dec 3.
The Indian rupee closed higher against the greenback, although
marginally, following Monetary Policy Committee’s decision to maintain
interest rates. The rupee closed at 70.46 a dollar compared with the
previous close of 70.49.
The euro continued to benefit from dollar weakness. Concerns over a
slowdown in the U.S. economic and the decline in U.S. Treasury yields
weighed down on the greenback, thereby supporting the euro. The euro
was last seen trading at 1.1354 a dollar, up 0.09% from the previous
close of 1.1344.
Gold prices fell after the Chinese Commerce Ministry spoke about the
progress of the meeting between the U.S. and Chinese Presidents to
settle their trade differences.
Brent crude prices slid after data from the American Petroleum
Institute found that U.S. crude stocks rose in the week to Nov 30.
According to preliminary data from Eurostat, eurozone retail sales rose
0.3% MoM in Oct 2018 as against 0.5% fall in Sep 2018. On a yearly
basis, retail sales grew 1.7% in Oct 2018 after a 0.3% increase in Sep
2018.
According to a latest survey from Caixin, China’s services Purchasing
Managers’ Index (PMI) stood at 53.8 in Nov 2018, which was unchanged
from Oct 2018. The composite index rose to 51.9 in Nov 2018 from 50.5
in Oct 2018. Individually in Nov 2018, services activity increased the
most in five months, while manufacturing production remained stable.
Markets for You
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