FIIs/FPIs have bought Indian equity shares worth Rs. 18 billion in the month of August 2018 and sold shares worth Rs. 108 billion in September 2018.
The Nifty Index futures witnessed fall in open interest by 660% for the October series. There was rise in open interest November series in the last week by 107%. Implied volatility (IV) rose for put option and fell for call option in the last week. Rise in IV for put option and fall in IV for call option shows unsteady support for Nifty at present levels.
Global Economy
The Federal Reserve raised the target range for the federal funds rate by 25bps to 2% to 2.25% during its September 2018 policy-meeting, in line with market expectations. Policymakers see one more rate hike this year, 3 increases in 2019 and 1 in 2020, in line with previous projections.
Click here to read our analysis on” Fed Rate Hike Impact on Sensex, Nifty, INR & 10 Year Gsec”.
Industrial production in Japan rose by 0.7%(M-o-M) in August 2018, recovering from a 0.2% fall in July but missing market consensus of a 1.5% gain.
The annual inflation rate in the Euro Area is expected to pick up to 2.1% in September 2018, matching July’s five-and-a-half-year high and market expectations.
Uk’s economy expanded 1.2% (Y-o-Y) in Q2Fy18, revised from a preliminary estimate of 1.3% and little-changed from a near six-year low of 1.1% in the previous period.
The current account gap in the UK widened to 20.3 billion Pounds in the Q2Fy18 from a downwardly revised 15.7 billion Pounds in the previous quarter and compared to market expectations of a 19.4 billion Pounds deficit. It was the largest current account gap since the Q2Fy17.
Bank Indonesia raised its rate by 25 bps to 5.50% during its September 2018 policy-meeting, matching expectations. It was the fifth hike in last six policy-meetings, in an attempt to support the country’s falling currency.
Mexico recorded a trade deficit of USD 2591 million in August 2018 from USD 2585 million a year earlier and compared with market expectations of USD 2204 million shortfall. Exports soared 10.1% and imports advanced at a softer 9.4%.
China’s current account surplus narrowed sharply to USD 5.3 billion in the Q2Fy18 from USD 52.6 billion in the same period of 2017 and below a preliminary estimate of USD 5.8 billion.
The number of Americans filling for unemployment benefits increased by 12,000 to 214,000 in the week ended 22nd September 2018 from the previous week’s revised level of 202,000, above market expectations of 210,000.
Stocks of crude oil in the United States rose by 1.852 million barrels in the week ended 21st September 2018, following a 2.057 million drop in the previous week and compared with market expectations of a 1.279 million decrease.
Global Market
Wall Street closed mostly flat on Friday, as the Kavanaugh confirmation drama continued. During the week, Dow Jones declined by 1%, Nasdaq gained by 0.74% and S&P 500 fell by 0.30%.
European stocks closed deeply in the red on Friday amid political concerns after the Italian populist government set a higher budget deficit of 2.4% of the GDP for 2019 and agreed on a rise in public spending. During the week, FTSE gained by 0.27% and DAX declined by 1.50%.
The Nikkei 225 surged by 1.4% on Friday, on hopes that a weaker yen could boost exports earnings. It also follows news that Japan agreed to open negotiations on a bilateral trade agreement with the US. During the week Nikkei 225 surged by 1%.
Indian Market
The Sensex and Nifty declined by 1.70% & 1.91 % respectively on weekly basis.
Blue Dart management is targeting to invest Rs 2000 million for expanding reach and upgrading technology. The expansion exercise will result in the company being able to service each of the over 19,000 pincodes across the country by December 2018. The company is witnessing a spurt in demand from the lower tier towns and cities for which it is undertaking the expansion exercise.
Tata Steel has signed agreement to acquire the steel business of Usha Martin in a deal sources put at Rs 46 billion. The acquisition is part of the overall strategy to build capability in long products and expand product offerings including high-value added products.
NMDC Limited Wednesday said it has plans to invest nearly Rs 65 billion in FY19 and FY20 towards CAPEX even as the miner is expected to start production from its upcoming 3-million tonnes per annum capacity steel plant at Nagarnar Chhattisgarh in FY20.
Sectoral Indices Trends:
The sectoral indices mostly closed in negative during last week. The S&P BSE Auto, Oil & Gas, Bankex and PSU index indices had declined by 7%, 1.28%, 2.47% and 4% respectively. S&P BSE IT index gained by 1% in last week.
Reliance Industries Witnesses highest rise in turnover in Stock Derivatives
The Nifty Index futures witnessed fall in open interest by 660% for the October series. There was rise in open interest November series in the last week by 107%. Implied volatility (IV) rose for put option and fell for call option in the last week. Rise in IV for put option and fall in IV for call option shows unsteady support for Nifty at present levels.
Reliance Industries witnesses rise in turnover in Stock Derivatives
Reliance Industries has witnessed rise in open interest in the stock future segment in the last week. Share price of Reliance Industries gained by 3% in the last week. Reliance Industries had invested USD 8 million in US based artificial intelligence firm Netradyne Inc. The investment has potential synergies with the digital services and communication initiatives of Reliance Industries and its subsidiaries. The company will use the fresh capital to make sizeable investment in artificial intelligence and deep learning within the commercial vehicle space and in new industry segments such as dynamic 3D/HD mapping, data analytics, and insurance.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown fall in the open interest across Index Options, Stock futures, Index futures and Stock Options on a week on week basis.
Currency
Indian rupee depreciated by 0.415% against USD, USD/INR pair closed at Rs. 72.515 in the last week.
