FIIs/FPIs have sold Indian equity shares worth Rs. 42 billion in January 2019and bought shares worth Rs. 54 billion in February 2019 (till 17th February).
The Nifty Index futures witnessed rise in open interest by 18% for the February series and rise in open interest by 28% for the March 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 unsteady support for Nifty at present levels.
Annual inflation rate in the US slowed for the third straight month to 1.6% (Y-o-Y) in January 2019 from 1.9% in December 2018. It is the lowest rate since June 2017, compared to market expectations of 1.5%, mainly due to a sharp fall in energy prices.
The Euro Area trade surplus narrowed to EUR 17 billion in December 2018 from EUR 24.5 billion in the same month of the previous year, as exports fell 2.5% and imports rose 1.9%.
Industrial production in Japan dropped 0.1% (M-o-M) in December 2018, unrevised from the preliminary estimate and after a decline of 1% in November 2018. On an annual basis, output fell 1.9% in December 2018, after a 1.5% rise in November 2018.
The Japanese economy advanced by 0.3% in the December quarter 2018, reversing from an upwardly revised 0.7% contraction in the previous period and compared to market expectations of a 0.4% growth.
China’s consumer price inflation slowed to 1.7% (Y-o-Y) in January 2019 from 1.9% in the previous month and below market consensus of 1.9%. It was the lowest inflation rate since January 2018, as food prices rose at a softer pace.
Wall Street closed in the green on Friday, as investors sentiment was boosted by news of progress on US-China trade dispute. Talks between the two countries are set to continue next week in Washington to achieve a trade deal before the 1st March 2019 deadline. Also, sentiment was nudged by US consumer sentiment, which rose to 95.5 in February 2019 from 91.2 in January 2019. During the week, Dow Jones gained by 3%, Nasdaq surged by 2.40% and S&P 500 rose by 2%.
European shares closed in green on Friday, as optimism over US – China trade deal improved investors sentiment. Also, recent news suggested the ECB could come up with new long-term loans to euro zone banks. During the week, DAX gained by 3.50% and FTSE rose by 2.3%.
Oil prices rose on Wednesday afternoon, despite US Energy Information Administration reporting an increase of 3.6 million barrels in the US crude oil stocks in latest week, well above market expectations of a 2.3 million rise. Recent news showed Saudi Arabia plans to cut production to about 9.8 million barrels a day in March and also added that the country can increase or reduce oil production to balance the market. On weekly basis, Brent Crude gained by 7%.
Sensex and Nifty declined by 2% each during last week.
Annual consumer inflation in India declined to 2.05% in January 2019 from a downwardly revised 2.11% in December 2018, below market expectations of 2.48%. It is the lowest inflation rate since June 2017 as food prices continued to decline.
Wholesale prices in India rose by 2.76% (Y-o-Y) in January 2019, slowing from a 3.80% rise in the prior month and well below market estimates of 3.65%. It was the lowest wholesale inflation since March 2018, mainly due to a noticeable slowdown in cost of fuel and manufactured products.
India’s industrial production growth accelerated to 2.4% (Y-o-Y) in December 2018 from a 17-month low of 0.3% in the previous month and above market expectations of 2.4%, boosted by a rebound in manufacturing output.
India trade deficit fell to USD 14.73 billion in January 2019 from a downwardly revised USD 15.67 billion a year earlier. From April to January, the country’s trade gap increased to USD 155.93 billion from USD 136.25 billion a year earlier.
Sectoral Indices Trends:
The sectoral indices closed in negative territory during last week. The S&P BSE Oil & Gas, IT, PSU, Auto and Bankex had declined by 4.22%, 1.57%, 3.63%, 3.60% and 1.88% respectively.
YES Bank 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 25% in the last week. YES Bank share price surged by 30% on 14th February 2018 after the bank received no observation on divergence report from RBI. More importantly, it reinforced investors confidence in the bank which was shaken over the past six months. 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, Index futures and Index options on a week on week basis.
Indian rupee depreciated by 0.24% against USD, USD/INR pair closed at Rs. 71.335 in the last week.