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Daily Updates
Fri,26 Apr 2019

  • Indian equity markets lost on account of weakness in global markets and volatility around the expiry of Apr 2019 derivative contracts. Rising oil prices and a weak rupee burdened investor sentiment. The rupee dropped to more than seven-week low as rise in oil prices led to fears over inflation and fiscal deficit.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 lost 0.83% and 0.72%, respectively, to close at 38,730.86 and 11,641.80, respectively. S&P BSE Mid-Cap and S&P BSE Small Cap lost 0.58% and 0.05%, respectively.

  • The overall market breadth on BSE was weak with 1082 scrips advancing and 1431 scrips declining. A total of 145 scrips remained unchanged.

  • On the BSE sectoral front, S&P BSE Basic Materials was the major gainer, up 0.34%, followed by S&P BSE Oil & Gas, up 0.11%, and S&P BSE Realty, up 0.1%. All the other sectors lost. S&P BSE Telecom was the major loser, down 2.26%, followed by S&P BSE Metal and S&P BSE Bankex, down 1.91% and 1.02%, respectively.

  • Among the 31-stock sensitive Sensex pack, Bharti Airtel was the major gainer, up 1.06%, followed by TCS and Bajaj Auto that grew 0.29% and 0.06%, respectively. Tata Steel was the major loser, down 2.74%, followed by Vedanta Ltd. and Maruti, down 2.29% and 1.73%, respectively.
Domestic Indices Performance   
  25-Apr-19 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 11,642 -0.72 2.53 10.13
S&P BSE Sensex 38,731 -0.83 2.44 12.26
S&P BSE Midcap 15,130 -0.58 1.43 -9.88
S&P BSE Smallcap 14,839 -0.05 1.72 -18.10
S&P BSE Auto 19,370 -0.80 4.20 -24.30
S&P BSE Bankex 33,233 -1.02 1.56 19.83
S&P BSE CD 23,884 -0.20 3.68 6.78
S&P BSE CG 18,214 -0.28 0.27 -4.59
S&P BSE FMCG 11,827 -0.66 1.99 7.60
S&P BSE HC 14,441 -0.27 2.32 3.51
S&P BSE IT 15,854 -0.36 4.93 18.66
S&P BSE Metal 11,136 -1.91 1.17 -21.18
S&P BSE Oil 14,998 0.11 -0.16 3.97
S&P BSE Power 1,999 -0.42 -0.54 -9.70
S&P BSE PSU 7,418 -0.58 0.02 -4.41
S&P BSE Realty 2,061 0.10 1.75 -14.25
S&P BSE Teck 7,821 -0.62 4.05 11.23
VIX Index 23 -2.02 39.35 87.34
  • Bond yields moved up with the steep surge in crude oil prices and depreciation in the local currency. These factors raised inflationary concerns and dampened the bond market sentiment.

  • Yield on the 10-year benchmark paper (7.26% GS 2029) rose 2 bps at 7.45% compared with the previous session’s close of 7.43% after trading in a range of 7.43% to 7.48%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 23,960 crore (gross) on Apr 25, 2019, compared with Rs. 9,953 crore (gross) as on Apr 24, 2019. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 16,526 crore on Apr 24, 2019.

  • Banks did not borrow under the central bank’s Marginal Standing Facility on Apr 24, 2019 compared with borrowings of Rs. 620 crore on Apr 23, 2019.
Daily Rates    
Key Rates (%) 25-Apr-19 Previous Close Year Ago
10 Yr Gsec 7.45 7.42 7.74
5 Yr AAA Corp Bond 8.56 8.52 8.41
3 Yr AAA Corp Bond 8.21 8.17 8.20
1 Yr AAA Corp Bond 8.23 8.14 7.95
3 Yr AA Corp Bond 8.72 8.67 8.66
1 Yr AA Corp Bond 8.85 8.82 8.28
12 Month CD 7.50 7.50 7.61
3 Month CD 7.19 7.13 6.71
CALL 6.14 6.19 5.88
T-Repo 6.03 6.01 NA

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on April 25,2019 Debt Equity Debt Equity
Purchases 1,386 5,098 8,245 2,103
Sales 1,103 4,258 6,312 2,655
Net 282 840 1,933 -552
MTD Net -3666 17177 56224 -1622

1 As on April 24,2019

 

  • Straits Times - The index dropped 0.36% tracking overnight U.S. markets that were weak because of a mixed batch of earnings.
  • Nikkei - The market gained 0.48% after Bank of Japan reviewed its forward guidance and said it could keep extremely low interest rates till 2020.
  • Hang Seng - The index fell 0.86% as Chinese shares declined on worries that the government could delay stimulus to prop the economy suffering from U.S. trade restrictions and slowing growth.
  • FTSE - The index fell 0.50% after merger talks between Germany’s top two lenders ended in failure. Further, investors remained cautious due to weak quarterly earnings results from a few European majors.
  • Dow Jones - The index fell 0.51% amid a volatile session due to steep decline in one of the major U.S. diversified manufacturer due to weak quarterly results for first quarter 2019. Also, the U.S. major lowered its full-year outlook. However, gains in couple of major information technology stocks restricted the losses.
Global Indices Performance   
Global Indices 25-Apr-19 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 26,462 -0.51 3.70 9.87
Nasdaq 100 7,817 0.42 6.83 20.00
FTSE  7,434 -0.50 3.57 0.74
Straits Times 3,350 -0.36 5.26 -6.10
Nikkei 22,308 0.48 6.34 0.42
Hang Seng 29,550 -0.86 3.60 -2.57
Shanghai Composite 3,124 -2.43 2.66 0.19
  • Gold prices moved up following feeble economic data from South Korea and Germany. While South Korea’s GDP tumbled in the first quarter of 2019, Germany’s business climate index fell for Apr 2019. However, the bullion’s upside was capped by the upbeat U.S. housing data and strong earnings expectations of U.S. corporates.

  • Brent crude prices continued to rise in anticipation of a tighter market condition following U.S.’s decision of terminating all exemptions and asking countries to halt importing Iranian oil from May 2019.
Commodity Market    
Commodity (INR) 25-Apr-19 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 74.63 2.16 9.98 0.13
Gold (10 gm) 31,794 0.93 -0.81 1.57
Silver (1 kg) 37,381 1.00 -2.07 -5.15
Aluminium (1 kg) 150.50 0.50 1.86 0.40
Copper (1 kg) 448.45 0.80 4.23 -2.45
  • The India rupee moved down after crude oil prices saw a steep surge as U.S. tightens Iran sanctions. Rise in crude prices also made importers step up greenback purchases, which further dragged the domestic currency.

  • The euro depreciated as it continued to reel under the pressure of Germany’s business climate index that fell for Apr 2019 and raised growth fears.
Currency Market    
Currency 25-Apr-19 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 69.94 0.05 1.38 4.86
EURO/INR 78.05 -0.36 0.10 -4.14
GBP/INR 90.26 -0.10 -0.68 -3.09
100 JPY/INR 62.49 -0.06 -0.43 2.24
  • As per media reports, India’s crude oil production fell 4.15% to 34.2 million tonne (MT) in FY19 as against 35.68 MT in FY18. However, natural gas production marginally rose of 0.69%. Cumulative natural gas production in FY19 stood at 32873.37 million metric standard cubic meter (MMSCM) as against 32649.31 MMSCM in FY18.

  • The Reserve Bank of India (RBI) has sold its entire stake in the National Housing Bank (NHB) and the National Bank for Agriculture & Rural Development (Nabard) to government for Rs. 1,450 crore and Rs. 20 crore, respectively. Thus, NHB and Nabard has now become a fully government-owned entity.

  • According to a report by the Reserve Bank of India, customer complaints against banks rose 25% to 1.63 lakh in FY18. Majority of the complaints were related to unfair practices. Disposal rate stood at 96.5% compared to 92% in the previous year.
Key Economic Indicators   
Indicators Current Previous
GDP 6.60% (Q3 FY'19) 7.00% (Q2 FY'19)
IIP 0.10% (Feb'19) 1.40% (Jan'19)
WPI 3.18% (Mar'19) 2.93% (Feb'19)
CPI 2.86% (Mar'19) 2.57% (Feb'19)

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 5.75 5.75
Repo 6.00 6.00
CRR 4.00 4.00
SLR 19.00 19.00
Bank Rate 6.25 6.25
  • Axis Bank reported a consolidated net profit of Rs. 1,505.1 crore during the March quarter of 2019 compared with a net loss of Rs. 2,188.74 crore during the corresponding period last year on the back of improved asset quality. On sequential basis net Non-Performing Assets (NPA) dropped 30 bps to 2.06%.

  • Maruti Suzuki India’s net profit fell 4.6% YoY to Rs. 1,795.6 crore in the March quarter of 2019. Total revenue from operations rose 1.4% to Rs. 21,459.4 crore. For the FY18-19, net profit declined 2.9% YoY to Rs. 7,500.6 crore. Maruti also announced a dividend of Rs. 80 per share for FY18-19, similar to the previous year.

  • India’s largest car maker Maruti Suzuki said it will phase out production diesel vehicles of below 1300cc once BS VI emission norms become effective from Apr 1, 2020. In small cars, the cost of upgrading diesel engines to BS VI standards will be substantial and with the price increase, these vehicles will become unviable for use by customers.
Upcoming Events
Event Date
Credit Growth 26-Apr-19
Deposit Growth 26-Apr-19
Forex Reserves 26-Apr-19
India Fsical Defciit (Apr 2018 to Mar 2019) 30-Apr-19
India-Infrastructure output (Mar 2019) 30-Apr-19

Source :ICRON Research

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