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Daily Updates
Wed,20 Feb 2019

  • Indian equity markets lost yet again as investors took to profit-booking before the uncertainty around elections kicks in. The start was positive as the Reserve Bank of India gave the government interim dividend. However, markets could not hold on to the gains as investors booked profit and global cues came in weak. U.S.-China relations again seemed to sour after China blamed U.S. of spreading cyber security fears and maligning its leading technology company.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 lost 0.41% and 0.34%, respectively, to close at 35,352.61 and 10,604.35, respectively. S&P BSE Mid-Cap and S&P BSE Small Cap gained 0.51% and 0.33%, respectively.

  • The overall market breadth on BSE was strong with 1356 scrips advancing and 1185 scrips declining. A total of 132 scrips remained unchanged.

  • On the BSE sectoral front, S&P BSE Realty was the major gainer, up 1.66%, followed by S&P BSE Metal and S&P BSE Basic Materials, up 1.44% and 1.01%, respectively. S&P BSE Telecom and S&P BSE Capital Goods gained 0.91% and 0.69%, respectively. S&P BSE Information Technology was the major loser, down 2.09%, followed by S&P BSE Teck and S&P BSE Power, down 1.67% and 0.57%, respectively.

  • Among the 31-stock sensitive Sensex pack, Vedanta Ltd was the major gainer, up 3.38%, followed by ICICI Bank and ONGC that grew 1.42% and 1.39%, respectively.
Domestic Indices Performance   
  19-Feb-19 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,604 -0.34 -2.77 2.18
S&P BSE Sensex 35,353 -0.41 -2.84 4.67
S&P BSE Midcap 13,866 0.51 -7.70 -15.60
S&P BSE Smallcap 13,162 0.33 -9.26 -26.29
S&P BSE Auto 18,124 0.07 -9.01 -26.02
S&P BSE Bankex 29,867 0.17 -2.84 5.78
S&P BSE CD 20,839 0.20 -0.53 -0.25
S&P BSE CG 16,439 0.69 -7.14 -13.02
S&P BSE FMCG 11,233 0.26 -5.39 7.57
S&P BSE HC 13,314 -0.14 -3.53 -5.65
S&P BSE IT 14,885 -2.09 1.46 23.67
S&P BSE Metal 10,080 1.44 -9.03 -32.27
S&P BSE Oil 13,119 0.64 -3.38 -14.75
S&P BSE Power 1,760 -0.57 -9.93 -20.23
S&P BSE PSU 6,444 0.67 -8.74 -22.79
S&P BSE Realty 1,780 1.66 -3.64 -26.97
S&P BSE Teck 7,414 -1.67 1.51 13.90
VIX Index 18 2.61 11.13 10.80
  • The debt market remained closed on account of Chatrapati Shivaji Jayanti.
Daily Rates    
Key Rates (%) 19-Feb-19 Previous Close Year Ago
10 Yr Gsec Closed 7.58 7.58
5 Yr AAA Corp Bond Closed 8.49 8.09
3 Yr AAA Corp Bond Closed 8.34 7.87
1 Yr AAA Corp Bond Closed 8.20 7.75
3 Yr AA Corp Bond Closed 8.93 8.46
1 Yr AA Corp Bond Closed 8.66 8.21
12 Month CD Closed 7.70 7.48
3 Month CD Closed 7.39 7.22
CALL Closed 6.31 5.96
T-Repo Closed 6.28 --

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on February 18,2019 Debt Equity Debt Equity
Purchases 583 3,406 8,252 3,510
Sales 1,243 6,076 8,659 2,022
Net -660 -2,670 -407 1,488
MTD Net -908 2652 13284 4696

1 As on February 15,2019

  • Straits Times – The index lost 0.19% as U.S.-China relations once again seemed to hit a rocky terrain. China blamed the U.S. of spreading cybersecurity fears.
  • Nikkei – The market increased 0.10% as investors are hopeful of the U.S.-China trade talks being held in Washington.
  • Hang Seng – The index dropped 0.42% as Chinese markets were flattish since investors awaited the outcome of the new round of talks between the U.S. and China.
  • FTSE - The index fell 0.56% after China reportedly accused U.S. of fueling cybersecurity fears, thereby aggravating tensions between the two countries. Weak earnings results from some of the major stocks also weighed on investor sentiment.
  • Dow Jones - The index rose 0.03% amid a volatile session following the long holiday weekend. Strong U.S homebuilder confidence data for Feb 2019 boosted the indices. However, uncertainty about the potential for a trade deal between the U.S. and China restricted the gains.
Global Indices Performance   
Global Indices 19-Feb-19 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 25,891 NA NA NA
Nasdaq 100 7,067 NA NA NA
FTSE  7,179 -0.56 NA -0.94
Straits Times 3,260 -0.19 NA -6.54
Nikkei 21,303 0.10 NA -3.82
Hang Seng 28,228 -0.42 NA NA
Shanghai Composite 2,756 0.05 NA NA
  • Gold prices gained against the greenback as investors are closely tracking the U.S.-China trade talks, which is expected to resume in Washington following the discussion in Beijing.

  • Brent crude prices were mixed as market participants await American Petroleum Institute’s inventory data to take further cues.
Commodity Market    
Commodity (INR) 19-Feb-19 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 66.40 -0.67 6.70 3.44
Gold (10 gm) 33,519 0.44 3.85 9.41
Silver (1 kg) 40,220 0.19 3.04 4.55
Aluminium (1 kg) 131.00 0.61 -0.49 -9.53
Copper (1 kg) 439.60 0.00 4.29 -3.95
  • The domestic currency market remained closed on account of Chatrapati Shivaji Jayanti.

  • The euro drifted lower on concerns over eurozone’s economic slowdown. The single currency was adversely impacted by the decline in the eurozone bond yields. In addition, European Central Bank is expected to trim growth and inflation projections in the upcoming meeting scheduled for Mar 2019.
Currency Market    
Currency 19-Feb-19 1D % Chg 1M % Chg 1Yr % Chg
USD/INR Closed NA NA NA
EURO/INR Closed NA NA NA
GBP/INR Closed NA NA NA
100 JPY/INR Closed NA NA NA
  • According to media reports, the proposed merger of three state run general insurance firms will take place in the next fiscal. The government is of the view that it will be able to ring down the losses by setting up a combined entity. The government has asked the three state run general insurance firms to make their operations more efficient while keeping costs low.

  • According to media reports, the government has eased angel tax norms for start up companies. The government has increased the investment limit to Rs. 25 crore for availing income tax concessions by start up entities from the present limit of Rs. 10 crore. In addition, the government has also broadened the definition of a start up entity. According to the new norm, an entity will be considered as a start up entity when has been operating for a time period of ten years from its date of incorporation or registration, instead of the current seven years. Furthermore, an entity will be treated as a start up entity if its turnover for any of the financial years since incorporation and registration has not exceeded Rs 100 crore from the present limit of Rs. 25 crore.
Key Economic Indicators   
Indicators Current Previous
GDP 7.10% (Q2 FY'19) 8.20% (Q1 FY'19)
IIP 2.40% (Dec'18) 0.30% (Nov'18)
WPI 2.76% (Jan'19) 3.80% (Dec'18)
CPI 2.05% (Jan'19) 2.11% (Dec'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 6.00 6.00
Repo 6.25 6.25
CRR 4.00 4.00
SLR 19.25 19.25
Bank Rate 6.50 6.50
  • According to media reports, Aditya Birla Group firm Grasim Industries entered into an agreement to acquire chlor-alkali business of KPR Industries for a cash consideration of Rs. 253 crore.

  • According to media reports, Mahanagar Telephone Nigam (MTNL) has come up with a plan and has submitted the same to to ensure its survival. The plan includes converting its loans into sovereign guarantee, giving up 3G spectrum, revision of employees’ pay, and introducing a voluntary retirement scheme.

  • According to media reports, Ambuja Cement witnessed a nearly threefold increase in consolidated net profit to Rs. 1,377.88 crore for the quarter ended Dec 18 compared to a consolidated net profit of Rs. 478.39 crore in the same period of the previous year.
Upcoming Events
Event Date
GDP Estimate Q3FY19 28-Feb-19
Index of Eight Core Industries (Jan 19) 28-Feb-19

Source :ICRON Research

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