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Daily Updates
Tue,23 Oct 2018

  • Indian equity markets shed early gains and started the week in the red. The bourses saw late sell-off as crude oil breached the $80 per barrel mark once again, rupee went back to its losing trend and liquidity concerns persisted. Blue chip companies were the worse hit.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 lost 0.53% and 0.57% to close at 34,134.38 and 10,245.25, respectively. S&P BSE Mid-Cap declined 0.71%, while S&P BSE Small Cap fell 1.97%.

  • The overall market breadth on BSE was weak with 804 scrips advancing and 1802 scrips declining. A total of 158 scrips remained unchanged.

  • On the BSE sectoral front, only S&P BSE Power gained, up 0.06%, and S&P BSE Auto remained unchanged. Rest all sectors lost and the biggest loser was S&P BSE Energy, down 0.41%, followed by S&P BSE Oil & Gas and S&P BSE Basic Materials, down 2.45% and 1.48%. S&P BSE Consumer Durables and S&P BSE Industrials lost 1.27% and 1.17%. respectively. Energy and oil & gas were hit as crude oil breached the $80 per barrel mark once again.

  • Among the 31-stock sensitive Sensex pack, ICICI Bank was the major gainer, up 3.84%, followed by NTPC and Bajaj Auto that grew 1.95% and 1.86%, respectively. IndusInd Bank was the major loser, down 8.52%, followed by Reliance Industries and Tata Motors DVR that fell 3.56% and 3.18%, respectively. IndusInd Bank’s second quarter earnings had missed market expectations.
Domestic Indices Performance   
  22-Oct-18 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,245 -0.57 -8.06 0.97
S&P BSE Sensex 34,134 -0.53 -7.35 5.39
S&P BSE Midcap 13,959 -0.71 -10.49 -13.17
S&P BSE Smallcap 13,805 -1.97 -12.42 -19.18
S&P BSE Auto 19,573 0.00 -15.91 -21.16
S&P BSE Bankex 27,978 -0.23 -2.52 4.23
S&P BSE CD 18,014 -1.27 -10.32 -1.31
S&P BSE CG 16,536 -0.65 -8.43 -5.43
S&P BSE FMCG 11,183 -0.01 -5.27 9.11
S&P BSE HC 14,517 -0.22 -6.87 2.69
S&P BSE IT 14,191 -0.73 -8.26 36.98
S&P BSE Metal 12,723 -0.73 -8.84 -12.51
S&P BSE Oil 12,825 -2.45 -14.77 -19.31
S&P BSE Power 1,943 0.06 -3.77 -13.77
S&P BSE PSU 6,839 -0.85 -8.37 -19.54
S&P BSE Realty 1,575 -0.57 -18.81 -27.26
S&P BSE Teck 7,054 -0.68 -8.66 18.98
VIX Index 21 7.93 37.45 72.26
  • Bond yield inched up following weakness of the rupee against the greenback. However, further losses were restricted since the minutes of the latest monetary policy came in as per expectations with no significant deviations.

  • Yield on the 10-year benchmark paper (7.17% GS 2028) rose 1 bps to 7.93% compared with the previous closing of 7.92% after trading in the range of 7.89% to 7.93%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 18,768 crore (gross) on Oct 22 compared with a borrowing of Rs. 3,994 crore (gross) on Oct 19. Sale of securities under the Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 15,690 crore on Oct 19.
Daily Rates    
Key Rates (%) 22-Oct-18 Previous Close Year Ago
10 Yr Gsec 7.93 7.92 6.76
5 Yr AAA Corp Bond 8.86 8.84 7.49
3 Yr AAA Corp Bond 8.93 8.92 7.20
1 Yr AAA Corp Bond 8.92 8.94 7.04
3 Yr AA Corp Bond 9.37 9.36 7.86
1 Yr AA Corp Bond 9.19 9.15 7.80
12 Month CD 8.38 8.38 6.59
3 Month CD 8.23 8.33 6.19
CALL 6.54 6.55 5.97
CBLO 6.50 6.41 5.88

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on October 22,2018 Debt Equity Debt Equity
Purchases 1,074 6,897 1,465 1,721
Sales 1,224 7,558 648 1,165
Net -150 -661 818 556
MTD Net -12317 -20471 23694 12429

1 As on October 19,2018

  • Straits Times - The index gained 0.51% tracking U.S. markets and on China announcing readiness to give stimulus to the economy.
  • Nikkei – The index gained 0.37% on expectations that China will continue to step up stimulus measures in the future.
  • Hang Seng – The index increased 2.32% tracking Chinese markets that gained after the country’s financial regulators announced that they would take all steps to support local businesses.
  • FTSE - The index fell 0.10% as gains from rally in the Chinese stock market and easing concerns over Italy was reversed after Italy vowed to stick to the draft budget. Investors were also cautious ahead of policy meeting scheduled on Oct 25.
  • Dow Jones - The index fell 0.50% following decline in banking stocks amid worries that higher mortgage rates would cap loan growth. Concerns over many corporate earnings reports coming this week and rising geopolitical tensions also dampened investor sentiment.
Global Indices Performance  
Global Indices 22-Oct-18 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 25,317 -0.50 -5.33 8.53
Nasdaq 100 7,141 0.48 -5.18 16.90
FTSE  7,043 -0.10 -5.97 -6.39
Straits Times 3,078 0.51 -4.34 -7.86
Nikkei 22,615 0.37 -5.26 5.39
Hang Seng 26,153 2.32 -6.44 -8.19
Shanghai Composite 2,655 4.09 -5.10 -21.42
  • Gold prices traded lower due to the rally in Chinese and Hong Kong equity market.

  • Brent Crude prices stayed above $80 per barrel as market participant remain wary over the looming U.S. sanction on Iran, which would tighten the global oil supply. Though OPEC earlier planned to increase production to fill in the supply gap, it is feared they do not have enough spare capacity to compensate for the Iran sanctions.
Commodity Market    
Commodity (INR) 22-Oct-18 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 81.34 0.21 2.52 39.33
Gold (10 gm) 31,607 -0.31 2.96 6.74
Silver (1 kg) 38,315 0.18 3.89 -2.42
Aluminium (1 kg) 146.75 -1.18 0.48 4.49
Copper (1 kg) 449.75 1.08 2.45 -1.34
  • The Indian rupee declined against the greenback following the surge in crude oil prices ahead of the looming U.S. sanction on Iran. In addition, the uncertainties surrounding the eurozone strengthened dollar and weighed down on the local unit.

  • The euro declined against the greenback as market participants stayed wary over the rising geopolitical unrest in the eurozone, pertaining to the Italian budget
Currency Market    
Currency 22-Oct-18 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 73.30 -0.18 2.02 12.66
EURO/INR 84.57 0.47 -0.13 10.49
GBP/INR 95.93 0.29 0.82 11.88
100 JPY/INR 65.02 -0.38 2.12 12.24
  • The International Monetary Fund (IMF) and World Bank in their annual conference held Indonesian said international trade frictions and future fiscal and monetary policies are challenges facing the global economy. Members urged leading economies to curb rising trade tensions caused by protectionist policies and asked them to moderate the pace of monetary policy "normalisation".

  • The ministry of electronics and IT could leave data protection legislation to sectoral regulators and relevant departments for them to define what makes up sensitive personal information. This data will have to be stored only in India. This will ensure that regulators do not fall prey of the overarching law once it comes into effect.

  • E-returns filed by individual taxpayers increased 70% annually to 5.4 crore in the Apr-Aug FY19. At the same time, average tax paid by them has decreased 32% to Rs. 27,083. In FY18 and FY17, growth rate for e-filers for Apr-Aug periods was 24% and 39%, respectively, and average tax paid was about Rs. 44,000 to Rs. 40,200.
Key Economic Indicators   
Indicators Current Previous
GDP 8.20% (Q1 FY'19) 7.70% (Q4 FY'18)
IIP 4.30% (Aug'18) 6.50% (Jul'18)
WPI 5.13% (Sep'18) 4.53% (Aug'18)
CPI 3.77% (Sep'18) 3.69% (Aug'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
  • Paytm has forayed into Japan by launching PayPay, a QR-based smartphone payment service in partnership with SoftBank Corp and Yahoo Japan. The Vijay Shekhar Sharma-led company had raised $1.4 billion from SoftBank in 2017 for a 20% stake. PayPay will allow users to store money from a bank account in their PayPay wallet and make payments with it.

  • Asian Paints registered 14.4% decline in second quarter profit to Rs. 493 crore and missed expectations because of higher expenses. It had posted Rs. 576 crore profit in the year-ago period.

  • Infrastructure Leasing and Financial Services’ (IL&FS) newly-appointed board said it has roped in three advisors to formulate and execute a resolution plan for the company. Arpwood Capital and JM Financial have been chosen as the financial and transaction advisors (FTAs), while Alvarez and Marsal (A&M) as the restructuring advisor to the debt-ridden company's board.

  • Accenture has acquired DAZ Systems, Inc., a provider of Oracle ERP cloud services. DAZ Systems is headquartered in El Segundo, California, and was founded in 1995. The company's more than 300 employees will join Accenture’s Oracle Business Group.
Upcoming Events
Event Date
Forex Reserves 26-Oct-18

Source :ICRON Research

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