FIIs/FPIs have sold Indian equity shares worth Rs. 330 billion in the year 2018 and shares worth Rs. 29 billion in January 2019 (till 18th January).
The Nifty Index futures witnessed marginal fall in open interest by 0.1% for the January series and rise in open interest by 110% for the February series. Implied volatility (IV) fell for put option and rose for call option in the last week. Fall in IV for put option and rise in IV for call option shows steady support for Nifty at present levels.
Industrial output in the US rose 0.3% in December, following a downwardly revised 0.4% growth in November 2018 and beating expectations of a 0.2% gain.
The annual inflation rate in the Euro Area came in at 1.6% in December 2018, unchanged from the preliminary estimate and below November’s final reading of 1.9%. It was the lowest rate since April as prices of energy and processed food, alcohol & tobacco rose at a softer pace.
Industrial production in the Euro Area went down 3.3% (Y-o-Y) in November 2018, following a 1.2% rise in October 2018 and worse than market expectations of a 2.3% drop. It is the first annual fall in industrial output since January of 2017 and the biggest since November of 2012.
Japan’s consumer price inflation eased to 0.3% (Y-o-Y) in December 2018 from 0.8% in the previous month and in line with market expectations. It was the lowest inflation rate since October 2017, amid declines in cost of food, transport and housing. On a monthly basis, consumer prices declined 0.2% in December, the same as a month earlier.
Bank Indonesia left its benchmark 7-day reverse repo rate unchanged at 6% during January policy-meeting, as widely expected. Policymakers said the decision was consistent with efforts to reduce the current account gap towards a range of 2.5% of GDP in 2019.
The number of Americans filling for unemployment benefits decreased by 3,000 to 213,000 in the week ending 12th January 2019 from the previous week’s unrevised level of 216,000. It was the second straight week of declines, bringing initial claims to the lowest level since the week ending 8th December 2018.
US crude oil stocks fell by 2.683 million barrels in the week ended 11th January 2019, following a 1.68 million decrease in the previous week.
Wall Street extended gains on Friday, after news that China would increase its annual imports of US goods by over USD 1 trillion in the next 6 years. The latest round of trade talks are set to take place in Washington on January 30th-31st. During the week, Dow Jones gained by 3%, Nasdaq rose by 2.70% and S&P 500 jumped by 3.50%.
European stock markets closed sharply in the green on Friday, amid renewed hopes that US and China will resolve their trade dispute. During he week, DAX gained 2.92% and FTSE rose by 0.72%.
Oil prices rallied during the week, after reports that China has put forward a plan to eliminate its trade surplus with the US by increasing its purchases of US goods over the next six years. On Thursday, US Treasury Secretary Mnuchin proposed lifting some tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade talks in Washington, scheduled for January 30th – 31st. During the week, Brent Crude Oil prices gained by 3.70%.
Sensex and Nifty gained by 1.04% each during last week.
Annual consumer inflation in India declined to 2.19% in December 2018 from 2.33% in November 2018, marginally below market expectations of 2.2%. It is the lowest inflation rate since June 2017 as food prices continued to decline and inflation eased for clothing, housing and fuel.
Wholesale prices in India rose by 3.8% in December 2018, slowing from a 4.64% gain in the prior month and below than market estimates of 4.42%. It was the lowest wholesale inflation since April 2018, as cost increased at a softer pace for fuel and manufactured products while prices of food declined further.
Hindustan Unilever management reported Q3Fy19 results, sales for the quarter increased by 12% (Y-o-Y) to Rs. 93 billion and domestic consumer sales were up by 13% (Y-o-Y). EBITDA for the quarter surged by 22% (Y-o-Y) to Rs. 16 billion with EBITDA margins improved of 170 bps to 21.5%. Net profit rose by 9% (Y-o-Y) to Rs. 14 billion.
Sectoral Indices Trends:
The sectoral indices mostly closed in negative territory during last week. The S&P BSE PSU, Auto and Bankex had declined by 0.75%, 0.31% and 0.19% respectively. S&P BSE Oil & Gas and IT indices gained by 2.97% and 4.43% respectively.
Reliance Industries Witnesses highest rise in turnover in Stock Derivatives
The Nifty Index futures witnessed marginal fall in open interest by 0.1% for the January series and rise in open interest by 110% for the February series. Implied volatility (IV) fell for put option and rose for call option in the last week.
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 7.86% in the last week. On consolidated basis, revenue for Reliance Industries rose 4.1% (Q-o-Q) & 56% (Y-o-Y) and net profit rose by 9% (Y-o-Y) to Rs. 102 billion. Reliance Jio reported 65% (Y-o-Y) jump in net profits and digital services reported 51% (Y-o-Y) jump in revenues during Q3Fy19. Reliance retail business profit nearly triple from that of last year because of better festive sales & aggressive store expansion and revenue surged by 89% (Y-o-Y) to Rs. 355 billion. Management expects Reliance Jio & Retail to double sales in about next 7 years and also expects these businesses to contribute as much to overall earnings as its energy and petrochemical business.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown rise in the open interest across Stock Options, Stock futures and Index options and Index futures on a week on week basis.
Indian rupee depreciated by 1.236% against USD, USD/INR pair closed at Rs. 71.255 in the last week.