05 Feb 2018
Markets for You
Global Indices
Global Indices 02-Feb Prev_Day Abs. Change
% Change
#
Dow Jones 25,521 26,187 -666 -2.54
Nasdaq 7,241 7,386 -145 -1.96
FTSE 7,443 7,490 -47 -0.63
Nikkei 23,275 23,486 -212 -0.90
Hang Seng 32,602 32,642 -40 -0.12
Indian Indices 02-Feb Prev_Day Abs. Change
% Change
#
S&P BSE Sensex 35,067 35,907 -840 -2.34
Nifty 50 10,761 11,017 -256 -2.33
Nifty 100 11,111 11,385 -274 -2.41
Nifty Bank 26,451 27,221 -770 -2.83
SGX Nifty Closed 11,030 NA NA
S&P BSE Power 2,229 2,321 -91 -3.94
S&P BSE Small Cap 17,848 18,717 -870 -4.65
S&P BSE HC 14,068 14,359 -291 -2.03
Date P/E Div. Yield P/E Div. Yield
2-Feb 24.53 1.12 26.04 1.05
Month Ago 25.07 1.13 26.70 1.09
Year Ago 21.94 1.44 23.38 1.26
Nifty 50 Top 3 Gainers
Company 02-Feb Prev_Day
% Change
#
Tech Mahindra 619 611 1.37
HCL Tech 991 985 0.61
TCS 3154 3139 0.48
Nifty 50 Top 3 Losers Domestic News
Company 02-Feb Prev_Day
% Change
#
Bajaj Finance Limited 1629 1729 -5.81
Bajaj Auto 3241 3413 -5.03
Ultratech Cem 4179 4391 -4.83
Advance Decline Ratio
BSE NSE
Advances 295 135
Declines 2548 1716
Unchanged 119 31
Institutional Flows (Equity)
Description (Cr)
YTD
FII Flows* 14682
MF Flows** 7386
*2
nd
Feb 2018; **30
th
Jan 2018
Economic Indicator
YoY(%) Current Year Ago
WPI
3.58%
(Dec-17)
2.10%
(Dec-16)
IIP
8.40%
(Nov-17)
5.10%
(Nov-16)
GDP
6.30%
(Sep-17)
7.50%
(Sep-16)
05 February 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
4.80%
(Aug-17)
5.70%
(Jun-17)
Quarter Ago
Inflow/Outflow
1051
1166
3.14%
(Sep-17)
Government data showed that India's fiscal deficit during Apr to Dec
2017 stood at Rs. 6.21 lakh crore or 113.6% of the budgeted target for
FY18. During the corresponding period last year, fiscal deficit was at 93.9%
of the Budget Estimate. Total receipts were Rs. 10.78 lakh crore or 67.4%
of the Budget Estimate, while revenue expenditure amounted to Rs. 14.62
lakh crore or 79.6% of the financial year estimates. In the Union Budget
2018-19, government increased its fiscal deficit target from 3.2% of
Budgeted Estimate (BE) to 3.5% for the current financial year. For FY19,
fiscal deficit is projected at 3.3% of BE, which is also higher than 3%
estimated in the previous budget.
According to a major credit rating agency, high debt burden of the
government is a constrain for India’s rating upgrade. In Union Budget
2018-19, fiscal deficit has been targeted at 3.5% of GDP, higher than 3.2%
estimated earlier.
The Union Budget 2018-19 has proposed an allocation of approximately
Rs. 14,500 crore for FY19 in order to augment telecom infrastructure
projects, which include an alternate communication network for defence
services. The finance minister allocated Rs. 10,000 crore for expansion of
telecom infrastructure managed by the Department of Telecom and made
a provision of Rs. 4,500 crore for Network for Spectrum project.
The government plans to amend the Prevention of Money-laundering
Act, 2002, through the Finance Act 2018. The government wants to make
the Act more effective and widen its scope. Also, it wants to remove some
procedural difficulties faced by the Enforcement Directorate.
Bajaj Auto reported increase in consolidated net profit by 3.8% YoY to
Rs. 1,013.16 crore in the quarter ended Dec 2017 as compared with Rs.
976.82 crore in the same quarter of previous fiscal year. Total revenue
from operations of the company stood at Rs. 63.69 billion in the quarter
ended Dec 2017 as against Rs. 53.54 billion in the year-ago quarter.
Markets for You
After the announcements of Union Budget FY19 on Feb 1, 2018, Indian
equity markets plunged heavily as investors closely followed the
developments on the implementation of the Budget proposals, especially,
fiscal deficit target. The finance minister had raised the fiscal deficit target
for FY18 to 3.5% of gross domestic product as against 3.2% earlier. The
target for FY19 has been fixed at 3.3% as against previous target of 3%.
Also, government’s proposal of 10% long-term capital gains tax on
equity gains above Rs. 1 lakh weighed on market sentiment. Further,
announcement by a major credit rating agency that high debt burden of
the government constrains India's rating upgrade further muted buying
interest.
Key benchmark indices S&P BSE Sensex and Nifty 50 fell 2.34% and
2.33% to close at 35,066.75 and 10,760.60, respectively. S&P BSE Mid-Cap
and S&P BSE Small-Cap fell 4.03% and 4.65%, respectively.
On the BSE sectoral front, S&P BSE Realty was the top loser and was
down 6.28%, followed by S&P BSE Basic materials (-3.97%), S&P BSE
Utilities (-3.95%), S&P BSE Power (-3.94%) and S&P BSE Industrials and
S&P BSE Consumer Discretionary Goods & Services (-3.81% each).
Asian markets traded mixed ahead of the U.S. monthly jobs report for
Jan 2018, which will provide clues on U.S. Federal Reserve’s future rate
hike stance. Upcoming key economic data in China also kept investors on
the sidelines. However, elevated crude oil prices limited the downside.
Meanwhile, the Bank of Japan raised its bond purchases as part of efforts
to prevent bond yields from rising. Today (As of Feb 5), Asian markets
opened lower following losses in the Wall Street amid a stronger than
expected jobs report that sent interest rates higher. Both Nikkei and Hang
Seng were trading down 2.34% and 1.82% (as at 8.a.m. IST).
As per the last close, European market ended lower due to concerns of
rate hike by the U.S. Federal Reserve after release of upbeat U.S. jobs data
and disappointing result of a major bank in Germany.
As per the last close, U.S markets ended lower after the Labor
Department released a report showing stronger than expected job growth
and a jump in wages that increased the concern about higher interest
rates. Disappointing result from big tech companies also contributed to
the losses.
FII Derivative Trade Statistics 02-Feb
(Rs Cr) Buy
Sell Open Int.
Index Futures 4789.12 4957.67 17628.80
Index Options 192960.51 193674.63 63942.79
Stock Futures 14985.97 14233.13 78870.86
Stock Options 11781.43 11826.86 4728.28
Total 224517.03 224692.29 165170.73
02-Feb Prev_Day
Change
Put Call Ratio (OI) 1.09 1.21 -0.12
Indian Debt Market
Put Call Ratio(Vol) 0.84 0.93 -0.09
02-Feb Wk. Ago Mth. Ago
Year Ago
Call Rate 5.92% 5.91% 5.87% 5.96%
CBLO 4.59% 5.90% 5.77% 5.93%
Repo 6.00% 6.00% 6.00% 6.25%
Reverse Repo 5.75% 5.75% 5.75% 5.75%
91 Day T-Bill 6.33% 6.40% 6.11% 6.13%
364 Day T-Bill 6.60% 6.51% 6.29% 6.15%
10 Year Gilt 7.76% 7.48% 7.38% 6.40%
G-Sec Vol. (Rs.Cr) 29446 39866 23331 56171
Currency Market Update
1 Month CP Rate 6.94% 6.93% 6.81% 6.71%
3 Month CP Rate 7.76% 7.75% 7.23% 7.03%
5 Year Corp Bond 7.92% 7.78% 7.67% 7.09%
1 Month CD Rate 6.23% 6.24% 6.21% 6.22%
3 Month CD Rate 7.25% 7.21% 6.61% 6.39%
1 Year CD Rate 7.55% 7.45% 7.01% 6.56%
Commodity Market Update
Currency 02-Feb Prev_Day
Change
USD/INR 64.08 63.61 0.47
GBP/INR 91.34 90.18 1.16
EURO/INR 80.03 78.95 1.09
International News
JPY/INR 0.58 0.58 0.00
Commodity 02-Feb Wk Ago Mth. Ago
Year Ago
NYMEX Crude($/bl) 65.48 65.59 60.32 53.50
Brent Crude($/bl) 67.13 71.17 66.99 55.63
Gold( $/oz) 1333 1348 1318 1216
Gold(Rs./10 gm) 30452 30489 29374 29207
Source: ICRON Research
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
05 February 2018
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Derivative Statistics- Nifty Options
Disclaimer:
Derivatives Market
Debt Watch
Currency Market
Commodity Prices
Bond yields fell amid news that the Reserve Bank of India (RBI) may
conduct open market and secondary market purchases of debt. Yields
fell further on reports that the government is also in discussion with the
central bank to raise foreign investment limit in government debt.
Bonds also gained as the central bank did not accept any bids at the
weekly auction on Feb 2.
Yield on the 10-year benchmark paper (7.17% GS 2028) fell 4 bps to
close at 7.56% as against previous session’s close of 7.60%. During the
session, bond yields traded in the range of 7.49% and 7.68%.
Yield on the old 10-year benchmark paper (6.79% GS 2027) fell 4 bps
to close at 7.76% as against previous session’s close of 7.80%. During the
session, bond yields traded in the range of 7.47% and 7.88%.
A report from the Labor Department showed that U.S. non-farm
payroll employment surged 200,000 jobs in Jan 2018 after increasing by
an upwardly revised 160,000 jobs (148,000 jobs originally reported) in
Dec 2017. The unemployment rate came in at 4.1% in Jan and remained
unchanged from the three previous months.
A report from the Bank of Japan showed that monetary base in Japan
was up 9.7% year on year in Jan 2018 and came in at 477.259 trillion yen
as against a gain of 11.2% in Dec 2017. Banknotes in circulation added
an annual 4.4% and coins in circulation gained 1.1%. Meanwhile, current
account balances grew 11.4%, including a 9.8% increase in reserve
balances.
Markets for You
Nifty Feb 2018 Futures were at 10,755.85 points, a discount of 4.75
points below the spot closing of 10,760.60. The turnover on NSE’s
Futures and Options segment went down from Rs. 15,08,842.96 crore on
Feb 1 to Rs. 7,24,402.25 crore on Feb 2.
The Put-Call ratio stood at 0.79 against previous session’s close of 0.80.
The Nifty Put-Call ratio stood at 1.09 against previous session’s close of
1.21.
India VIX moved up 8.10% to 15.2500 from 14.1075 in the previous
trading session.
Open interest on Nifty Futures stood at 23.79 million as against the
previous session’s close of 24.79 million.
The Indian rupee slightly fell against the greenback following losses in
the domestic equity market and recovery in the domestic bond market.
The rupee fell 0.06% to close at 64.06 per dollar from the previous close
of 64.02 per dollar.
The euro fell against the greenback following more than expected rise
in U.S. non-farm payroll data in Jan 2018. Euro fell 0.53% and was trading
at $1.2442, up from the previous close of 1.2508.
Gold prices inched down as market participants remained cautious
ahead of the non-farm payroll data.
Brent crude prices gained ahead of U.S. rig count figures. Sharp decline
in U.S. gasoline stocks and distillate supplies and OPEC's effort to limit
output continued to support the gains.
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