FIIs/FPIs have bought Indian equity shares worth Rs. 59 billion in the month of November 2018 and sold shares worth Rs. 4 billion in December 2018 (till 7th December).
The Nifty Index futures witnessed rise in open interest by 2432% for the December series and 455% increase in open interest for January series. Implied volatility (IV) rose for call option and put option in the last week. Rise in IV for call option and put option shows steady support for Nifty at present levels. Markets might witness volatility due to election results of five states will be announce on 11th December 2018.
The US unemployment rate was unchanged at a 49-year low of 3.7% in November 2018, in line with market expectations. The number of unemployed decreased by 100,000 to 5.98 million and employment rose by 233,000 to 156.80 million.
Non farm payrolls in the US increased by 155,000 in November 2018, following a downwardly revised 237,000 in October 2018 and well below market expectations of 200,000.
The US trade deficit widened to USD 55.5 billion in October 2018 from an upwardly revised USD 54.6 billion in the previous month and compared with market expectations of a USD 54.9 billion gap. It is the highest deficit since October 2008 as lower soybean sales weighed down on exports and imports reached a new record high.
The Eurozone economy grew 0.2% on quarter in the three months to September 2018, unrevised from a second estimate and following a 0.4% expansion in the previous period. It was the weakest growth rate since the second quarter of 2014.
China’s consumer price inflation slowed to 4-month low of 2.2 percent year-on-year in November 2018 from 2.5 percent in the previous month and below market consensus of 2.5 percent.
China’s trade surplus widened to USD 44.74 billion in November 2018 from USD 38.43 billion in the same month a year earlier and easily beating market consensus of USD 34 billion. It was the largest trade surplus since December 2017, as exports rose at a faster 5.4% (Y-o-Y) while imports increased by 3% (Y-o-Y).
Stocks of crude oil in the US slumped by 7.323 million barrels in the week ended November 30th 2018, following a 3.577 million increase in the previous week and compared to market expectations of a 0.942 million fall.
Wall Street closed deeply in the red on Friday, after the jobs report showed the US economy added a lower-than-expected 155,000 jobs in November 2018. Also, worries about China and US trade war continued to weigh on investors’ mood and Brent crude prices rose 5%. During the week, Dow Jones declined by 4%, Nasdaq plummeted by 4.48% and S&P 500 plunged by 3.80%.
Oil prices rallied on Friday, amid news that OPEC and non-OPEC countries decided to cut oil production by 1.2 million barrels a day from 2019 after a two-day meeting. OPEC itself will cut output by 800,000 bpd while Russia agreed to reduce production by 400,000 bpd. On Friday, an OPEC delegate said Iran has been granted an exemption from the cuts as it is under sanctions from the US.
Sensex and Nifty declined by 1.44% & 1.70% respectively during last week.
India’s current account deficit widened sharply to USD 19.1 billion, or 2.9% of GDP, in July-September 2018-19 from USD 6.9 billion, or 1.1% of GDP, in the same period of the previous fiscal year.
Aurobindo Pharma expects its first biosimilar product to receive approval in the US in next 12-18 months while in Europe it hopes a green signal by 2022. Aurobindo is expanding its portfolio to eight more biosimilars ensuring a strong and diverse product pipeline.
HCL Technologies is acquiring select IBM software products for USD 1.8 billion. The products which represent a total addressable market of more than USD 50 billion.
Hindustan Unilever (HUL) management announced, HUL is merging GlaxoSmithKline (GSK) Consumer Healthcare with itself in a transaction worth Rs 317 billion, in the largest deal of the consumer goods space in the country. The development came as parent Unilever announced it was acquiring Horlicks and other health food drinks from GSK in over 20 markets for 3.1 billion Pounds.
S&P Global Ratings has downgraded the credit rating of Tata Motors and its British arm Jaguar Land Rover Automotive. Tata Motors’ issue credit rating and senior unsecured notes rating have been revised to ‘BB-/negative watch’ from the existing ‘BB’ due to weaker profitability.
Sectoral Indices Trends:
The sectoral indices mostly closed in negative territory during last week. The S&P BSE Auto, Bankex, Oil & Gas and PSU index indices had declined by 4.40%, 0.96%, 2.10% and 2% respectively. S&P BSE IT index gained by 0.77% during last week.
Kotak Mahindra Bank Witnesses highest rise in turnover in Stock Derivatives
The Nifty Index futures witnessed rise in open interest by 2432% for the December series and 455% increase in open interest for January series. Implied volatility (IV) rose for call option and put option in the last week. Rise in IV for call option and put option shows steady support for Nifty at present levels.
Kotak Mahindra Bank Witnesses rise in turnover in Stock Derivatives
Kotak Mahindra Bank has witnessed rise in open interest in the stock future segment in the last week. Share price of Kotak Mahindra Bank gained by 4% in the last week. Kotak Mahindra Bank gained by 14% during intra-day on Friday after media reports suggested that Berkshire Hathaway may buy 10% stake in the bank. However, later during the day bank’s management had clarified that it is unaware of any plans by Berkshire Hathaway to buy a stake.
Indian rupee depreciated by 0.581% against USD, USD/INR pair closed at Rs. 71.375 in the last week.