FIIs/FPIs have sold Indian equity shares worth Rs. 330 billion in the year 2018 and shares worth Rs. 26 billion in January 2019 (till 11th January).
The Nifty Index futures witnessed fall in open interest by 2.8% for the January series and rise in open interest by 24% for the February series. Implied volatility (IV) fell for call option and put option in the last week. Fall in IV for call option and put option shows steady support for Nifty at present levels.
Annual inflation rate in the United States fell to 1.9% in December 2018 from 2.2% in November 2018, matching market expectations. It is the lowest inflation rate since August 2017, mainly due to a decline in gasoline cost. It is the first monthly decrease in consumer prices in nine months, due to a 7.5% slump in gasoline prices.
Federal Reserve officials revised down their assessments of the appropriate path for monetary policy amid growing concerns about volatility in financial markets, trade tensions and uncertain global growth, minutes of the Federal Reserve’s December meeting showed.
ECB officials agreed that the risks to the Euro Area outlook could still be assessed as broadly balanced, but that the balance of risks was moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial volatility, minutes of the ECB’s December meeting showed.
Japan’s current account surplus fell to JPY 757.2 billion in November 2018 from JPY 1340.7 billion a year earlier, but well above market expectations of JPY 567.6 billion.
China’s consumer price inflation slowed to a six-month low of 1.9% (Y-o-Y)in December 2018 from 2.2% in the previous month and below market consensus of 2.1%. The slowdown in inflation was mainly due to non-food prices, while food inflation remained at its lowest level in 3 months.
Russia’s consumer price inflation increased to 4.3% (Y-o-Y) in December 2018 from 3.8% in the previous month, slightly above market expectations of 4.2%. It was the highest inflation rate since June 2017 on the back of rising prices of food and services while non-food inflation eased.
The number of Americans filling for unemployment benefits decreased by 17,000 to 216,000 in the week ending 5th January 2018 from the previous week’s revised level of 233,000 and below market expectations of 225,000.
US crude stocks fell by 1.68 million barrels in the week ended 4th January 2019, following a 0.007 million increase in the previous week and compared to market expectations of a 2.4 million decline.
Wall Street edged down on Friday to end a 5-day rally, as new home sales in the US tanked, the government shutdown extended, and investors awaited earnings season. During the week, Dow Jones gained by 2.40%, Nasdaq surged by 3.44% and S&P 500 jumped by 2.38%.
The Shanghai Composite index closed on a positive note on Friday as Sino-US trade negotiations continued and Fed Chairman Jerome Powell reiterated on Thursday that the US central bank would be patient about future interest rate hikes. Still, concerns over China’s economy persist as the country plans to revise its 2019 growth target to 6% – 6.5%, compared to previous forecasts of around 6.5%. During the week, Shanghai Composite Index gained by 1.51%.
Oil prices rallied during the week, as data showed US crude oil stocks declined less than expected in the latest week and after Saudi Arabia’s Energy Minister vowed to stabilise the market in a range to encourage new supplies without harming the global economy. During the week, Brent Crude Oil prices gained by 6%.
Sensex and Nifty gained by 0.88% & 0.63% respectively during last week.
India’s industrial production growth slowed sharply to 0.5% (Y-o-Y) in November 2018 from an upwardly revised 11-month high of 8.4% in the previous month and missing market expectations of a 4.1%. Growth slowed primarily due to a high base effect along with a moderation in growth in capital goods, consumer durables and a contraction in manufacturing growth.
Bandhan Bank Ltd is set to acquire mortgage lender Gruh Finance Ltd via a share swap, a move aimed to cut bank’s promoter holding and expanding its housing finance portfolio. Shareholders of Gruh Finance, which is 57.83% owned by Housing Development Finance Corp. (HDFC) Ltd, will receive three shares of Bandhan Bank for every five shares held in Gruh Finance Ltd.
Sectoral Indices Trends:
The sectoral indices mostly closed in positive territory during last week. The S&P BSE IT, Auto and Bankex had gained by 1.11%, 0.43% and 1.19% respectively. S&P BSE Oil & Gas and PSU indices declined by 2.40% and 0.78% respectively.
TCS Witnesses highest rise in turnover in Stock Derivatives
The Nifty Index futures witnessed fall in open interest by 2.8% for the January series and rise in open interest by 24 % for the February series. Implied volatility (IV) fell for call option and put option in the last week. Fall in IV for call option and put option shows steady support for Nifty at present levels.
TCS Witnesses rise in turnover in Stock Derivatives
TCS has witnessed rise in open interest in the stock future segment in the last week. Share price of TCS declined by 2.50% in the last week. Revenue for TCS rose by 20.8% (Y-o-Y) to Rs. 373 billion and on constant currency basis revenue increased by 1.8% (Q-o-Q) & 12.1% (Y-o-Y). Net income rose by 24.1% (Y-o-Y) to Rs. 81 billion. BFSI segment witnessed at growth of 8.6% (Y-o-Y) and digital revenue rose by 53% (Y-o-Y).
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 1.237% against USD, USD/INR pair closed at Rs. 70.385 in the last week.