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Daily Updates
Thu,13 Dec 2018

  • Indian equity markets gained as investors cheered the appointment of the new Reserve Bank of India (RBI) governor. Also, progress on U.S.-China trade negotiations buoyed investors. The U.S. President indicated a deal with China was possible and reports suggested the latter is reducing tariffs on imports of cars made in the U.S. to 15% from the earlier 40%. Also, the withheld official of a Chinese multinational company was released on bail.

  • Key benchmark indices S&P BSE Sensex and Nifty 50 both gained 1.79% each to close at 35,779.07 and 10,737.60, respectively. S&P BSE Mid-Cap and S&P BSE Small Cap increased 2.53% and 2.46%, respectively.

  • The market breadth on BSE was strong with 1901 scrips advancing and 678 scrips declining. A total of 124 scrips remained unchanged.

  • On the BSE sectoral front, all the sectors gained. S&P BSE Realty was the major gainer, up 4.07%, followed by S&P BSE Auto and S&P BSE Telecom, up 3.58% and 2.77%, respectively. S&P BSE Industrials and S&P BSE Consumer Discretionary Goods & Services gained 2.6% and 2.57%, respectively.

Domestic Indices Performance   
  12-Dec-18 1D % Chg 1M % Chg 1Yr % Chg
Nifty 50 10,738 1.79 2.44 4.86
S&P BSE Sensex 35,779 1.79 2.78 7.68
S&P BSE Midcap 15,041 2.53 1.58 -11.18
S&P BSE Smallcap 14,404 2.46 -1.00 -20.54
S&P BSE Auto 20,675 3.58 1.53 -18.24
S&P BSE Bankex 29,806 1.97 3.30 4.74
S&P BSE CD 20,704 0.99 4.67 -5.30
S&P BSE CG 18,394 2.45 1.25 0.39
S&P BSE FMCG 11,649 1.82 4.70 10.76
S&P BSE HC 13,828 0.90 -5.21 -1.44
S&P BSE IT 14,489 1.00 1.67 33.06
S&P BSE Metal 11,719 2.53 -7.67 -14.32
S&P BSE Oil 13,093 1.93 -1.71 -18.13
S&P BSE Power 1,915 1.88 -1.34 -15.82
S&P BSE PSU 6,850 1.86 -3.28 -24.53
S&P BSE Realty 1,809 4.07 4.27 -24.24
S&P BSE Teck 7,219 1.16 1.62 17.05
VIX Index 16 -11.92 -18.38 3.60
  • Bond yield lowered on optimism regarding lowering inflation rate, which is expected to ease the monetary policy. Besides, appointment of the new governor of the central bank lifted the bond market sentiment.

  • Yield on the 10-year benchmark paper (7.17% GS 2028) plunged 12 bps to 7.41% compared with 7.53% in the previous session after trading in the range of 7.41% to 7.52%.

  • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 21,271 crore (gross) on Dec 12 compared with a borrowing of Rs. 20,137 crore (gross) on Dec 11. Sale of securities under Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 9,092 crore on Dec 11.

  • Banks borrowed Rs. 587 crore under the central bank’s Marginal Standing Facility on Dec 11 compared with borrowing of Rs. 2,730 crore on Dec 10.
Daily Rates    
Key Rates (%) 12-Dec-18 Previous Close Year Ago
10 Yr Gsec 7.41 7.53 7.19
5 Yr AAA Corp Bond 8.36 8.45 7.83
3 Yr AAA Corp Bond 8.42 8.47 7.47
1 Yr AAA Corp Bond 8.59 8.67 7.40
3 Yr AA Corp Bond 8.99 9.04 8.06
1 Yr AA Corp Bond 8.89 8.94 7.91
12 Month CD 8.25 8.37 6.72
3 Month CD 6.97 7.19 6.25
CALL 6.52 6.48 5.82
T-Repo 6.56 6.55 -

 

Institutional Flows     
(INR Cr) FII Flows MF Flows1
As on December 12,2018 Debt Equity Debt Equity
Purchases 2,064 3,757 9,915 3,789
Sales 2,181 6,654 6,978 2,294
Net -118 -2,897 2,937 1,495
MTD Net 2320 3260 28434 421

1 As on December 11,2018

  • Straits Times - The index went 1.33% up after investors turned optimistic over chances of U.S.-China striking a trade deal. The U.S. President indicated a deal with China was possible and reports suggested the latter is reducing tariffs on imports of cars made in the U.S. to 15% from the earlier 40%.
  • Nikkei - The index increased 2.15% after investors turned optimistic over chances of U.S.-China striking a trade deal. The U.S. President indicated a deal with China was possible. Also, the withheld official of a Chinese multinational company was released on bail.
  • Hang Seng - The index gained 1.61% after investors turned optimistic over chances of U.S.-China striking a trade deal. The U.S. President indicated a deal with China was possible and reports suggested the latter is reducing tariffs on imports of cars made in the U.S. to 15% from the earlier 40%.
  • FTSE - The index grew 1.08% as investors remain upbeat on the prospect of a trade deal between the U.S. and China after the U.S. President indicated optimism about a trade agreement with Chinese President.
  • Dow Jones - The index grew 0.64% following reports that the U.S. President has expressed optimism about striking a trade deal with Chinese President. Gains in consumer discretionary and technology stocks boosted the indices.
Global Indices Performance   
Global Indices 12-Dec-18 1D % Chg 1M % Chg 1Yr % Chg
Dow Jones 24,527 0.64 -3.39 0.09
Nasdaq 100 6,764 0.89 -0.95 5.96
FTSE  6,880 1.08 -2.45 -8.27
Straits Times 3,100 1.33 1.04 -10.55
Nikkei 21,603 2.15 -3.00 -5.53
Hang Seng 26,187 1.61 2.16 -9.05
Shanghai Composite 2,602 0.31 -1.08 -20.69
  • Gold prices edged higher, supported by the recent comment of the Federal Reserve Chair indicating that the central bank may consider holding the monetary tightening plan next year.

  • Brent crude prices rose with lower than anticipated production cut by OPEC and its allies and a sudden production cut in Libya due to the shutdown of an oil and gas major.
Commodity Market    
Commodity (INR) 12-Dec-18 1D % Chg 1M % Chg 1Yr % Chg
Brent (1 barrel) (in $) 59.96 0.35 -12.98 -8.67
Gold (10 gm) 31,577 -0.12 1.21 11.02
Silver (1 kg) 37,508 0.35 1.52 2.72
Aluminium (1 kg) 140.20 0.00 -0.53 8.51
Copper (1 kg) 438.75 2.58 1.93 2.68
  • The Indian rupee fell for the third straight session as the market grew cautious with the appointment of a former economic affair secretary as the new central bank governor. Increase in global crude oil prices added to the losses.

  • The euro rose against the greenback on reports that Italy may propose a budget deficit target of 2%, well below the previous target of 2.4%.
Currency Market    
Currency 12-Dec-18 1D % Chg 1M % Chg 1Yr % Chg
USD/INR 72.04 0.16 -1.19 11.72
EURO/INR 81.59 -0.17 -1.02 7.46
GBP/INR 90.04 -0.43 -4.21 4.64
100 JPY/INR 63.50 -0.11 -0.64 11.72
  • Government data showed that the consumer price index-based inflation or retail inflation came in 2.33% in Nov 2018 compared with upwardly revised 3.38% (originally reported 3.31%) in the previous month and 4.88% in the same month of the previous year. The consumer food price index-based inflation subsequently stood at -2.61% in Nov 2018 compared with -0.86% in the previous month and 4.35% in the same month of the previous year.

  • Government data showed that the Index of Industrial Production (IIP) rose to 8.1% in Oct 2018 as against growth of 4.5% in the previous month and 1.8% in the same period of the previous year. For the period from Apr to Oct of 2018, IIP grew 5.6% as against an increase of 2.5% in the same period of the previous year. On the sectoral front, the manufacturing sector grew 7.9% in Oct 2018 compared with growth of 2.0% in the same month of the previous year.
Key Economic Indicators   
Indicators Current Previous
GDP 7.10% (Q2 FY'19) 8.20% (Q1 FY'19)
IIP 8.10% (Oct'18) 4.50% (Sep'18)
WPI 5.28% (Oct'18) 5.13% (Sep'18)
CPI 2.33% (Nov'18) 3.38% (Oct'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
  • Punjab National Bank has raised approximately Rs. 500 crore after 90% of its Employee Stock Purchase Scheme (ESPS) was subscribed. The eligible employees were able to subscribe equity share at a discounted price of Rs. 53.95 per equity share.

  • NBCC (India) has received an order worth Rs. 172 crore from the Ministry of Skill Development and Entrepreneurship. As per the contract, this state-owned construction firm will construct office building in New Delhi.

  • Aurobindo Pharma announced that its arm Helix Healthcare BV has entered into a pact with Shandong Luoxin Pharmaceutical Group Stock Co. The agreement is for the establishment of a joint venture firm in China for manufacture of nebuliser inhaler and other products for China, the U.S. and the EU.
Upcoming Events
Event Date
Consumer Price Index (Nov 18) 12-Dec-18
Index of Industrial Production (Oct 18) 12-Dec-18
Wholesale Price Index (Nov 18) 14-Dec-18
Forex Reserves 14-Dec-18
Index of Eight Core Industries (Nov 18) 31-Dec-18

Source :ICRON Research

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