FIIs/FPIs have bought Indian equity shares worth Rs. 172 billion in February 2019 and bought shares worth Rs. 274 billion in March 2019 (till 22nd March 2019).
The Nifty Index futures witnessed fall in open interest by 11% for the March series and rise in open interest by 128% for the April series. Implied volatility (IV) fell for call option and rose for put option in the last week. Fall in IV for call option and rise in IV for put option shows unsteady support for Nifty at present levels.
Fed was more dovish than the market expected in its just concluded FOMC meet on the 20th March 2019. Federal Reserve policymakers expect rates to remain at current levels this year, compared to December’s projection of two hikes. The FOMC also pledged to start slowing the shrinking of its balance sheet in May and stop the drawdown altogether at the end of September. The economic-growth projections were also lowered for this year by a full percentage point to 2.1%.
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The US government budget deficit increased to USD 234 billion in February 2019 from a USD 215 billion gap a year earlier and above market expectations of a USD 227 billion shortfall.
The IHS Markit US Services PMI fell to 54.8 levels in March 2019 from 56 levels in the previous month and below market expectations of 56 levels. The IHS Markit US Manufacturing PMI fell to 52.5 levels in March 2019 from 53 levels in February 2019 and below market expectations of 53.6 levels.
Japan’s consumer price inflation stood at 0.2% (Y-o-Y) in February 2019, unchanged from the previous month’s 15-month low and below market expectations of 0.3%. Prices of both food and transportation & communication fell for a third month in a row, while housing costs were flat.
The Nikkei Japan Manufacturing PMI was unchanged at 48.9 levels in March 2019, below market expectations of 49.2 levels.
The Bank of England’s Monetary Policy Committee voted unanimously to hold the Bank Rate at 0.75% during its March 2019 policy-meeting and reaffirmed its pledge to gradual and limited rate rises over the forecast period, despite persistent concerns about Brexit.
Bank Indonesia kept its benchmark 7-day reverse repo rate unchanged at 6% on March 2019 policy-meeting, as widely expected.
The current account surplus in the Euro Area narrowed to EUR 9.3 billion in January 2019 from EUR 9.7 billion in the same month a year earlier.
The IHS Markit Eurozone Composite PMI decreased to 51.3 levels in March 2019 from the previous month’s 51.9 levels and below market expectations of 52 levels.
The number of Americans filling for unemployment benefits decreased by 9,000 to 221,000 in the week ended 16th March 2019 from the previous week’s revised level of 230,000 and compared to market expectations of 225,000.
Oil prices rebounded to the highest since 12th November 2018 on Wednesday after EIA data showed crude inventories in the US fell by 9.6 million barrels in the latest week, the biggest drop since the week ended 6th July 2018 and compared to market forecasts of a 0.074 million rise.
Wall Street tumbled on Friday amid increasing global growth concerns, with the yield on the US 10-year note falling below the 3-month tbill yield for the 1st time since 2007. On Friday, preliminary Markit PMIs for Japan, Europe and the US came weaker-than-expected, adding to an economic downgrade from the Fed earlier in the week and persistent uncertainties over the US-China trade deal. During the week, Dow Jones fell by 1.34%, Nasdaq slipped by 0.60% and S&P 500 declined by 0.90%.
Major European shares closed deep in the red on Friday, after latest data published by Markit Economics raised fears of global economic slowdown. Germany posted the steepest contraction in factory activity since August 2012. During the week, DAX declined by 3% and FTSE fell by 0.30%.
Sensex and Nifty gained by 0.40% and 0.25% during last week.
Hotel Leela Venture management said it had inked a binding agreement with a fund sponsored by Canada’s Brookfield Asset Management for a slump sale of four hotels, property in Agra and hotel management contracts, for a transaction value of Rs 39.50 billion. The promoters of the Leela brand would also be transferring the brand to Brookfield for all hospitality businesses. Share price of Hotel Leela Venture gained by 11% during last week.
Larsen & Toubro Ltd on Monday said it has entered into a definitive share purchase agreement with VG Siddhartha and his related entities, Coffee Day Trading Ltd and Coffee Day Enterprises Ltd, to acquire a 20.32% stake in Mindtree.
Sectoral Indices Trends:
The sectoral indices closed mostly in negative territory during last week. The S&P BSE Oil & Gas, PSU and Auto indices had declined by 1%, 0.60% and 4.5% respectively. S&P BSE IT and Bankex indices had gained by 0.50% & 0.72% respectively.
Reliance Industries rise in turnover in Stock Derivatives
Reliance Industries has witnessed rise in open interest in the stock future segment in the last week. Share price of Reliance Industries declined by 0.5% in the last week.
SBI has also witnessed rise in open interest in the stock future segment in the last week. Share price of SBI declined by 0.6% in the last week. SBI has signed a memorandum of understanding (MoU) with Bank of China, third-largest bank in the world by capital size and one of the major players in the Chinese banking sector, to enhance business synergies between both the banks. State Bank of India has raised Rs 12.5 billion in bonds on Friday to boost its additional tier 1 capital ratio while its board has extended the deadline to raise Rs 200 billion till March next year.
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 0.205% against USD, USD/INR pair closed at Rs. 69.13 in the last week.