FIIs/FPIs have bought Indian equity shares worth Rs. 339 billion and Rs. 133 billion in March 2019 and April 2019 (till 13th April ) respectively.
The Nifty Index futures witnessed fall in open interest by 5% for the April series and by 23% for the May 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.
The US annual inflation rate rose to 1.9% in March 2019 from a two-and-a-half-year low of 1.5% in the previous month, slightly above market consensus of 1.8%. Food prices rose at faster pace while energy deflation eased.
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 2019 and stop the drawdown altogether at the end of September 2019. The economic-growth projections were also lowered for this year by a full percentage point to 2.1% as per the FOMC minutes.
The US government budget deficit narrowed to USD 147 billion in March 2019 from USD 209 billion in the same month last year and compared to market expectations of a USD 180 billion gap. Federal spending dropped 10% on the year while receipts were up 9%.
The University of Michigan’s consumer sentiment for the US fell to 96.9 levels in April 2019 from 98.4 levels in the previous month and below market consensus of 98. There was a sharp decline in households’ expectations.
The European Central Bank held its benchmark refinancing rate at 0% during its April 2019 meeting and reiterated it expects key interest rates to remain at record low levels at least through the end of 2019, amid global growth concerns. The central bank also pledged to keep reinvesting cash from maturing bonds for an extended period.
Industrial production in the Euro Area went down 0.3% from a year earlier in February 2019, following a downwardly revised 0.7% decrease in the previous month and compared with market expectations of a 1% fall.
China’s trade balance shifted to a USD 32.64 billion surplus in March 2019 from a USD 5.77 billion deficit in the same month a year earlier and easily beating market estimates of a USD 7.05 billion surplus. Exports soared 14.2% (Y-o-Y) to USD 198.7 billion, while imports declined by 7.6% to USD 166 billion.
China’s consumer price inflation rose 2.3% (Y-o-Y) in March 2019 from 1.5% in the previous month, in line with market consensus.
The number of Americans filling for unemployment benefits decreased by 8,000 to 196,000 in the week ended 6th April 2019 from the previous week’s revised level of 204,000 and compared with market expectations of 211,000.
Stocks of crude oil in the United States rose by 7.029 million barrels in the week ended 5th April 2019, following a 7.238 million gain in the previous week and compared with market expectations of a 2.294 million increase.
Wall Street closed in the green on Friday, due to stronger than expected US corporate earnings from J.P. Morgan, Wells Fargo and First Republic Bank. During the week, Dow Jones marginally fell by 0.05%, Nasdaq gained by 0.55% and S&P 500 rose by 0.60%.
Major European stock markets closed in green on Friday following stronger-than-expected US corporate earnings. During the week, FTSE declined by 0.13% and DAX declined by 0.09%.
The price of US crude oil dropped nearly 2% to USD 63.5 a barrel on Thursday, after hitting the highest level this year on Monday. Latest data from EIA showed the US crude inventories increased more than expected, while the OPEC supply cuts and US sanctions on oil exports from Iran and Venezuela supported prices from a further decline.
Sensex and Nifty declined by 0.24% and 0.20% during last week.
Industrial production in India rose 0.1% (Y-o-Y) in February 2019, following a downwardly revised 1.4% increase in the previous month and below market expectations of a 2% gain.
India’s retail price inflation rate rose to a five-month high of 2.86% (Y-o-Y) in March 2019 from 2.57% in the previous month, slightly above market expectations of 2.8%. Food prices rose for the first time in six months.
TCS management had reported Q4Fy19 earnings on Friday, net profit increased by 18% (Y-o-Y) to Rs. 81 billion. Revenues for the quarter increased by 18.5% (Y-o-Y) to Rs. 380 billion and growth was witnessed in almost all the business verticals. Company declared a final dividend of Rs. 18 per share for Fy19.
Sectoral Indices Trends:
The sectoral indices mostly closed in negative territory during last week. The S&P BSE Oil & Gas, IT and Bankex indices had declined by 0.10%, 0.53% and 0.22% respectively. BSE Auto and PSU indices gained by 2.37% and 0.11% respectively.
Reliance Industries Witness rise in turnover in Stock Derivatives
Reliance has witnessed rise in open interest in the stock future segment in the last week. Share price of Reliance Ind declined by 1% in the last week. Last week, Reliance Jio acquired 87% stake in AI chatbot firm Haptik Infotech for Rs. 7 billion.
Infosys also witnessed rise in open interest in the stock future segment in the last week. Share price of Infosys declined by 3%. Infosys reported Q4Fy19 earnings on Friday, revenue grew by 0.6% (Q-o-Q) and 19.1% (Y-o-Y) to Rs. 215 billion. Net profit increased by 10% (Y-o-Y) to Rs. 40 billion and company’s management has guided Fy20 revenue growth would be in between 7.5%-9.5% in constant currency terms.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown marginal 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 0.10% against USD, USD/INR pair closed at Rs. 69.16 in the last week.