FIIs/FPIs have sold Indian equity shares worth Rs. 330 billion in the year 2018 and shares worth Rs. 20 billion in January 2019 (till 04th January).
The Nifty Index futures witnessed rise in open interest by 12.5% for the January series. And 336 % for the February series. Implied volatility (IV) rose for call option and put option in the last week.
Global Economy
The US unemployment rate rose to 3.9% in December 2018 from a 49-year low of 3.7% in the previous month, and above market expectations of 3.7%. It was the highest jobless rate since July 2018, as the number of unemployed persons increased by 276,000 to 6.3 million.
Nonfarm payrolls in the US increased by 312,000 in December 2018, following an upwardly revised 176,000 in November 2018 and beating market expectations of 177,000. Job gains occurred in health care, food services and drinking places, construction, manufacturing, and retail trade sectors.
Annual inflation rate in the Euro Area is expected to ease to 1.6% in December 2018 from 1.9% in the previous month and below market expectations of 1.8%. It was the lowest inflation rate since April 2018, mainly due to a slowdown in cost of energy and food, alcohol & tobacco.
The Caixin China General Services PMI edged up unexpectedly to a 6-month high of 53.9 levels in December 2018 from 53.8 levels in the previous month, beating market expectations of 52.9 levels.
The number of Americans filling for unemployment benefits increased by 10,000 to 231,000 in the week ending 30th December 2018 from the previous week’s revised level of 221,000 and above market expectations of 220,000.
Stocks of crude oil in the United States rose by 0.007 million barrels in the week ended 28th December 2018, following a 0.046 million decrease in the previous week and compared to market expectations of a 3.086 million decline.
Global Market
US stocks gained on Friday after Federal Reserve Chairman Jerome Powell said the central bank will be patient in raising rates amid muted inflation readings and despite a stronger-than-expected jobs report in December 2018. During the week, Dow Jones gained by 1.61%, Nasdaq by 2.35% and S&P 500 by 1.32%.
European shares closed sharply higher on Friday, following news that the US and China agreed to hold trade talks next week and after data showed the US economy added more-than-expected jobs in December. In addition, dovish comments from Federal Reserve Chairman Jerome Powell lifted investor’s mood. During the week, FTSE gained by 1.53% and DAX gained by 2%.
The Shanghai Composite index surged by 2.1% on Friday after a private survey showed China’s services sector growth accelerated to a six-month high in December, while market expectations were pointing to a slowdown. In addition, news of a new round of trade talks between the US and China also helped to boost sentiment. During the week, Shanghai Composite Index gained by 0.84%.
Oil prices rose more than 2% on Friday after China’s commerce ministry said it would hold trade talks with the US next week and data showed the country’s service sector continued to expand at a solid pace in December 2018. In addition, a Reuters survey showed OPEC cut crude output in December, while the API (American Petroleum Institute) reported a 4.5-million-barrel decline in crude inventories.
Indian Market
Sensex and Nifty declined by 1.06% & 1.22% respectively during last week.
The Nikkei India Services PMI dropped to 53.2 levels in December 2018 from November’s 4-month high of 53.7 levels while markets had estimated 52.5 levels.
The Nikkei India Manufacturing PMI dropped to 53.2 levels in December 2018 from an 11-month high of 54 levels in the previous month. Still, the latest figure was the second-highest in 2018 and contributed to highest quarterly average since Q3 y12.
L&T bagged orders worth Rs 20 billion, which include international orders in Saudi Arabia, UAE, Oman, Qatar and Malaysia. The order is for construction of 115kV substations with associated transmission lines and cable circuits in Saudi Arabia.
Sectoral Indices Trends:
The sectoral indices mostly closed in negative territory during last week. The S&P BSE IT, Auto, Oil & Gas and PSU index indices had declined by 1.12%, 4.48%, 1.97% and 0.62% respectively. S&P BSE Bankex index gained by 0.36%.
ICICI Bank Witnesses highest rise in turnover in Stock Derivatives
The Nifty Index futures witnessed rise in open interest by 12.5% for the January series. And 336 % for the February series. Implied volatility (IV) rose for call option and put option in the last week.
ICICI Bank Witnesses rise in turnover in Stock Derivatives
ICICI Bank has witnessed rise in open interest in the stock future segment in the last week. Share price of ICICI Bank gained by 1.60% in the last week.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown fall in the open interest across Stock Options, Stock futures and Index options and Index futures on a week on week basis.
Currency
Indian rupee appreciated by 0.57% against USD, USD/INR pair closed at Rs. 69.525 in the last week.
