FIIs/FPIs have sold Indian equity shares worth Rs. 330 billion in the year 2018 and shares worth Rs. 49 billion in January 2019 (till 25th January).
The Nifty Index futures witnessed marginal fall in open interest by 3.4% for the January series and rise in open interest by 19% for the February series. Implied volatility (IV) rose for put option and call option in the last week. Rise in IV for put option and call option shows unsteady support for Nifty at present levels.
The European Central Bank held its benchmark refinancing rate at 0% during its January policy-meeting and reiterated it expects key interest rates to remain at record low levels at least through the summer of 2019. The central bank brought to an end its Euros 2.6 trillion bond purchase scheme last month, but policy makers mentioned they will keep reinvesting cash from maturing bonds for an extended period of time.
The Bank of Korea held its base rate steady at 1.75% during its January policy-meeting, after hiking 25 bps in the previous meeting, as widely expected. Policymakers said that they will maintain its accommodative monetary policy stance as inflationary pressures on the demand side will not be high for the time being and that the domestic economy will sustain a rate of growth that does not diverge significantly from its potential level.
The Bank of Japan left its key short-term interest rate unchanged at -0.1% during its January policy-meeting and kept the target for the 10-year government bond yield at around 0%. At the same time, the central bank revised down inflation forecast for fiscal 2019 to average 1.1% from an earlier projection of 1.6%, mainly due to a decline in crude oil prices and worries over global economic outlook.
The Nikkei Japan Manufacturing PMI declined to 50 levels in January 2019 from 52.6 levels in the previous month, a preliminary estimate showed. It was the lowest reading since August 2016 and pointed to an end to the longest expansionary run for over a decade.
The South Korean economy expanded 3.1% (Y-o-Y) in the three months to December 2018, accelerating from a 2% growth in the previous quarter and beating market expectations of 2.8%.
Industrial capacity utilization rate in China decreased to 76% during Q4Fy18 from 76.5% in the previous period and reaching the lowest figure since Q1Fy17. The utilization rate of manufacturing industry declined by 2% (Y-o-Y) to 76.5% and for mining industry was down 2.2% to 70.2%.
The number of Americans filling for unemployment benefits decreased by 13,000 to 199,000 in the week ending 19th January 2019 from the previous week’s revised level of 212,000.
US crude oil stocks increased by 7.97 million barrels in the week ended 18th January 2019, following a 2.683 million decrease in the previous week and compared with market expectations of a 0.042 million decline.
US Stocks closed deeply in the green on Friday, as President Trump reached an agreement with congressional leaders to reopen the government for 3 weeks and end the longest US funding lapse ever. During the week, Dow Jones gained by 0.13%, Nasdaq rose marginally by 0.10% and S&P 500 surged by 0.50%.
Stock markets across the Asia-Pacific region closed in the green on Friday buoyed by gains in technology shares on Wall Street and despite persistent concerns over US-China trade talks and global economic outlook. During the week, Nikkei 225 gained 0.52%, Kospi was higher by 2.54% and Shanghai composite rose by 0.23%.
Oil prices dropped on Wednesday, amid reports that the EU is set to launch a mechanism that facilitate non-dollar trade with Iran bypassing US sanctions. Also, US President Trump could impose new oil sanctions on Venezuela including the total ban of oil imports if the political situation in the country deteriorates further, which weighed on sentiment. During the week, Brent Crude Oil prices declined by 2%.
Sensex and Nifty declined by 1% each during last week.
Prabhat Dairy will be selling its flagship dairy business for Rs 17 billion to French multinational Groupe Lactalis. Prabhat management said it will be sharing a substantial proportion of the sale proceeds with its shareholders and will focus on the cattle feed business after the close of the transaction. Share price of Prabhat Diary fell by 28% in last week.
Mauti Suzuki reported Q3Fy19 results on 25th January 2019, net profit for the quarter fell by 17.2% (Y-o-Y) due several factors such as retail automobile sales during the festive season hitingt a six-year low amid increases in crude prices, insurance costs and high interest rates on vehicle loans. Total revenue increased marginally by 0.71% (Y-o-Y) to Rs. 196 billion. Share price of Maruti Suzuki tanked by 8.5% post announcement of results.
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 3%, 6% and 1% respectively. S&P BSE Oil & Gas and IT indices gained by 1% and 0.80% respectively.
YES Bank Industries Witnesses highest rise in turnover in Stock Derivatives
YES Bank Witnesses rise in turnover in Stock Derivatives
YES Bank has witnessed rise in open interest in the stock future segment in the last week. Share price of YES Bank gained by 10% in the last week. YES Bank shares surged after the new CEO announcement. On the quarterly earrings front, YES Bank management reported a fall of 7% (Y-o-Y) in net profit despite rise in NII and lower provisions. The bank’s core income rose 41% (Y-o-Y) to Rs 26 billion. Gross non-performing assets rose to 2.1% of the total advances from 1.6% in the previous quarter. Net NPA ratio expanded to 1.18% from 0.84%.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown rise in the open interest across Stock Options, Stock futures and Index options on a week on week basis. Index futures witnessed fall in open interest during last week.
Indian rupee appreciated by 0.379% against USD, USD/INR pair closed at Rs. 70.985 in the last week.