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Fri,23 Jun 2017

  • Indian equity markets closed flat after touching record highs in the intraday session. Investor sentiment found initial support after Securities and Exchange of India (SEBI) eased norms for Foreign Portfolio Investors (FPIs). SEBI expanded the eligible jurisdictions for grant of FPI registration to category I FPIs as it included those countries that have diplomatic tie-ups with India.

  • Markets gave up most of its gains in late trade, amid profit booking and uncertainty over short-term impact of Goods & Services Tax implementation. Commencement of European trading session on a weak note further dampened investor sentiment.

  • While S&P BSE Sensex inched up 0.02% to close at 31,290.74, Nifty 50 slipped 0.04% to close at 9,630.00. Meanwhile, S&P BSE Mid-Cap and S&P BSE Small-Cap fell 0.59% and 0.55%, respectively.

  • Most of the BSE sectoral indices closed in the red. S&P BSE Oil & Gas was the major loser, down 1.79%, followed by S&P BSE Realty and S&P BSE Metal that slipped 1.73% and 1.35%, respectively. S&P BSE Utilities and S&P BSE Power fell 1.23% and 0.81%, respectively. Meanwhile, S&P BSE Bankex was the top gainer, up 0.16%, followed by S&P BSE Finance and S&P BSE Telecom that went up 0.15% and 0.02%, respectively.
Domestic Indices Performance   
  22-Jun-17 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 9,630 -0.04 2.03 17.39
S&P BSE Sensex 31,291 0.02 2.35 16.91
S&P BSE Midcap 14,763 -0.59 2.05 29.44
S&P BSE Smallcap 15,609 -0.55 3.69 36.32
S&P BSE Auto 23,984 -0.16 4.44 23.11
S&P BSE Bankex 26,817 0.16 4.35 33.18
S&P BSE CD 15,992 -0.21 2.71 37.87
S&P BSE CG 17,464 -0.73 -1.65 18.64
S&P BSE FMCG 10,230 -0.37 3.08 24.77
S&P BSE HC 14,056 -0.07 -3.82 -5.59
S&P BSE IT 9,887 -0.33 -2.60 -14.18
S&P BSE Metal 11,056 -1.35 -0.79 30.71
S&P BSE Oil 13,458 -1.79 -2.86 41.76
S&P BSE Power 2,218 -0.81 -2.08 14.29
S&P BSE PSU 8,316 -1.21 -5.05 26.90
S&P BSE Realty 2,069 -1.73 2.51 38.33
S&P BSE Teck 5,544 -0.21 -2.92 -10.42
VIX Index 11 2.68 0.04 -38.37
  • After falling for three consecutive sessions, bond yields rose after the latest policy meeting minutes indicated that the central bank governor favours avoiding premature policy action amid an uncertain near-term inflation outlook.

  • Yield on the 10-year benchmark paper (6.79% GS 2027) grew 2 bps to close at 6.45% from the previous close of 6.43%. During the session, bond yields traded in the range of 6.42% and 6.46%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 3,245 crore (gross) on Jun 22, down from Rs. 4,155 crore (gross) borrowing on Jun 21. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 6,689 crore on Jun 21.

  • Banks made no borrowing under the central bank’s Marginal Standing Facility on Jun 21 and Jun 20.
Daily Rates    
Key Rates (%) 22-Jun-17 Previous Close Year Ago
10 Yr Gsec 6.45 6.43 7.48
5 Yr AAA Corp Bond 7.25 7.26 8.09
3 Yr AAA Corp Bond 7.12 7.14 7.94
1 Yr AAA Corp Bond 6.94 6.93 7.73
3 Yr AA Corp Bond 7.55 7.57 8.42
1 Yr AA Corp Bond 7.36 7.35 8.22
12 Month CD 6.66 6.66 7.48
3 Month CD 6.35 6.35 6.85
CALL 6.10 6.10 6.27
CBLO 6.23 6.23 6.31

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on June 22,2017 Debt Equity Debt Equity
Purchases 1,575 4,835 6,593 1,840
Sales 749 4,924 3,489 1,626
Net 826 -89 3,103 214
MTD Net 22302 2774 21665 4873

1 As on June 16,2017

  • Straits Times - The index gained 0.43% following mixed cues from the major regional peers.
  • Nikkei - The index dipped 0.14% on a stronger yen.
  • Hang Seng - The index slipped marginally by 0.08% after data from the Census and Statistics Department confirmed that the economy’s current account surplus snapped in the Mar 2017 quarter, owing to a growth in the goods deficit. Weak cues in the mainland Chinese markets after the initial excitement around U.S. index provider MSCI decision’s to include mainland China-listed shares to U.S. stock indexes died away, also added to the sentiment.
  • FTSE - The index fell 0.11% as decline in oil prices continued to weigh on the market sentiments. However, release of Senate Republican plan to repeal and replace Obamacare restricted the losses.
  • Dow Jones - The index fell 0.06%. Release of Senate Republican plan to repeal and replace Obamacare boosted market sentiments initially. However, most of the gains were reversed due to uncertainty about the future of the bill after four Republican Senators declined to support the plan in its current form.
Global Indices Performance   
Global Indices 22-Jun-17 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 21,397 -0.06 2.40 20.34
Nasdaq 100 5,780 -0.04 1.41 31.22
FTSE  7,439 -0.11 -0.76 18.82
Straits Times 3,216 0.43 0.06 15.41
Nikkei 20,111 -0.14 2.20 25.18
Hang Seng 25,675 -0.08 1.12 23.46
Shanghai Composite 3,147 -0.28 2.33 8.33
  • Gold prices gained as investors remained doubtful if the U.S. Federal Reserve’s would raise interest rates in the coming months owing to a recent run of disappointing U.S. economic data and indications of weak inflation. Gold prices were last seen trading at $1,250.32 per ounce, from the previous close of $1,246.05 per ounce.
  • Brent crude prices continued with the downward trend amid lingering concerns over supply glut. Oil prices were last seen trading at $43.07 per barrel, from the previous close of $43.66 per barrel.
Commodity Market    
Commodity (INR) 22-Jun-17 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 43.50 -0.37 -17.91 -9.03
Gold (10 gm) 28,702 0.47 0.10 -3.30
Silver (1 kg) 38,357 0.69 -1.71 -6.30
Aluminium (1 kg) 120.70 0.17 -3.75 10.03
Copper (1 kg) 370.60 2.08 0.19 17.73
  • The Indian rupee inched down against the U.S. dollar following greenback purchases by state-run banks. Thin trading volumes and lack of domestic cues also weighed on market sentiment. The rupee closed at 64.59 per dollar, down 0.10% from the previous close of 64.52.

  • The euro inched down against the greenback after initial jobless claims for the week ended Jun 17 came along market expectations. Euro was trading at $1.1160, down 0.05% from the previous close of $1.1166.
Currency Market    
Currency 22-Jun-17 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 64.50 -0.17 -0.11 -4.53
EURO/INR 72.07 0.18 -0.22 -5.21
GBP/INR 81.80 0.32 -2.56 -17.50
100 JPY/INR 58.05 -0.03 0.12 -10.15
  • The Securities and Exchange Board of India (SEBI) has imposed a fee of $1,000 on P-Notes, thereby tightening P-Note norms. Also, in order to keep a check on any misuse for channelizing black money, it has debarred their issuance for speculative purposes. Simultaneously, the market regulator has decided to ease the entry norms for foreign portfolio investors who are willing to invest directly in Indian markets and not through participatory notes. However, SEBI shall not completely ban these instruments as some new investors tend to use them to test the Indian markets.

  • SEBI has permitted category III alternative investment funds (AIFs) to invest in the commodity derivative markets. However, they are not permitted to invest more than 10% of their investable funds in one underlying commodity. Category III AIFs, such as hedge funds, will also be allowed to use leverage to invest into the commodity derivatives market.
Key Economic Indicators   
Indicators Current Previous
GDP 6.10% (Q4 FY'17) 7.00% (Q3 FY'17)
IIP 3.10% (Apr'17) 2.70% (Mar'17)
WPI 2.17% (May'17) 3.85% (Apr'17)
CPI 2.18% (May'17) 2.99% (Apr'17)

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 6.00 6.00
Repo 6.25 6.25
CRR 4.00 4.00
SLR 20.50 20.50
Bank Rate 6.50 6.50
  • Tata Power has approached the ministry of power and Gujarat Urja Vikas Nigam Ltd. to sell its 51% stake in the 4,000-mw Mundra Ultra Mega Power Project (UMPP). The former has offered a price of Re. 1 to write off the UMPP from its books.

  • As per media reports, Paytm has applied to the Reserve Bank of India to set up a money market fund where users can store cash and earn interest.

  • Alembic Pharmaceuticals has received approval from the U.S. Food and Drug Administration for Amantadine Hydrochloride capsules, which are used for treatment of symptoms of infection caused by influenza virus.

  • Axis Bank has sold 1,90,500 equity shares of Mswipe at Rs. 4249 per share and total amounting to Rs. 80.94 crore. The objective of the sale as per the bank is disinvestment. The bank also reported that it had earned Rs. 57.4 crore from the company in FY16.
Upcoming Events
Event Date
Index of Eight Core Industries (May) 30-Jun-17

Source :ICRON Research

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