FIIs/FPIs have bought Indian equity shares worth Rs. 172 billion in February 2019 and bought shares worth Rs. 179 billion in March 2019 (till 15th March 2019).
The Nifty Index futures witnessed rise in open interest by 41% for the March series and rise in open interest by 166% for the April 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 put option shows steady support for Nifty at present levels.
The Bank of Japan left its key short-term interest rate unchanged at -0.1% at its March 2019 policy-meeting, as widely expected. Policymakers also kept the target for the 10-year Japanese government bond yield at around 0% but offered weaker views on exports and output amid rising global headwinds.
Consumer prices in the United States increased 1.5% (Y-o-Y) in February 2019, following a 1.6% rise in January 2019 and below market expectations of 1.6%. It is the lowest inflation rate since September 2016, mainly due to a fall in cost of gasoline and clothing while prices of electricity stalled.
US industrial output edged up 0.1% from a month earlier in February 2019, following a revised 0.4% fall in January 2019 and missing market expectations of a 0.4% gain.
The number of Americans filling for unemployment benefits increased by 6,000 to 229,000 in the week ending 9th March 2019 from the previous week’s unrevised level of 223,000. It compares with market expectations of 225,000.
US crude oil stocks decreased by 3.862 million barrels in the week ended 8th March 2019, following a 7.069 million rise in the previous week and missing market expectations of a 2.824 million gain.
Wall Street closed moderately in the green on Friday, amid increasing hopes China and the US could reach a trade agreement. During the week, Dow Jones gained by 1.56%, Nasdaq surged by 4% and S&P 500 rose by 2.73%.
Stock markets across the Asia-Pacific region closed mostly in the green on Friday, amid optimism surrounding US-China trade negotiations. During the week, Nikkei 225 index gained by 2.70%, Hangseng index rose by 3% and Shangai Composite index gained by 1.80%.
Oil prices rose more than 2% during last week as the US crude oil stocks decreased by 3.862 million barrels which is more than market expectation of 2.8 million gain.
Sensex and Nifty gained by 3.70% and 3.55% during last week.
Click here to read our analysis on “2019 Can be a Bumper Year for Equities and Bond Markets – Economic Data Analysis March 2019 “.
Consumer prices in India rose 2.57% (Y-o-Y) in February 2019, following a downwardly revised 1.97% rise in January 2019 and above market expectations of 2.43%. It is the highest inflation rate in four months as food prices fell less. In its February 2019 policy-meeting, the Reserve Bank of India lowered its inflation forecasts to 2.8% for January-March 2019, mentioning a deflation in food items and a sharp fall in fuel inflation.
Industrial production in India increased 1.7% (Y-o-Y) in January 2019, following an upwardly revised 2.6% rise in the previous month and below market expectations of 2%.
India trade gap narrowed to USD 9.6 billion in February of 2019 from USD 12.3 billion a year earlier and below market expectations of USD 14.3 billion. It is the lowest trade deficit since September 2017. Exports increased 2.4% (Y-o-Y) to USD 26.7 billion. In contrast, imports declined 5.4% (Y-o-Y) to USD 36.3 billion.
Wholesale prices in India rose by 2.93% (Y-o-Y) in February 2019, accelerating from a 2.76% rise in the prior month. The latest reading was above market estimates of 2.88%, mainly driven by a faster rise in cost of food and fuel.
Tech Mahindra will acquire Japan-based mobile network solution firm K-Vision for USD 1.5 million in an all-cash deal to support 4G and 5G telecom network roll out in Japan. K-Vision provides network services for mobile communications to telecom operators in Japan. The company earned revenue of USD 4.8 million during 12-month period ended 31st January 2019.
A Bharti Group company, Indo Teleports, has approached the Telecom Department for in-flight connectivity licence, that allows service providers to offer connectivity and data services to Indian and foreign airlines. This move will help Bharti Airtel to have an extra advantage in the current on-going high intense competitive Indian telecom market.
Sectoral Indices Trends:
The sectoral indices closed in positive territory during last week. The S&P BSE Oil & Gas, IT, PSU, Auto and Bankex had gained by 4.51%, 0.84%, 4.30%, 2% and 6% respectively.
Kotak Mahindra Bank rise in turnover in Stock Derivatives
Kotak Mahindra Bank has witnessed rise in open interest in the stock future segment in the last week. Share price of SBI Bank surged by 8% in the last week. The board of directors of Kotak Mahindra Bank has undergone a revamp with the appointment of two Independent Directors and two Additional Directors. The board also approved the payment of dividend on Non-Convertible Perpetual Non-Cumulative Preference Shares (PNCPS) for the period from 2nd August 2018, till 31st March 2019.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown rise in the open interest across Stock Options, Index futures, Index options and Stock futures on a week on week basis.
Indian rupee appreciated by 1.070% against USD, USD/INR pair closed at Rs. 69.27 in the last week.