FIIs/FPIs have bought Indian equity shares worth Rs. 211 billion in April 2019 and sold shares worth Rs. 3.7 billion in May 2019 (till 3rd May 2019).
The Nifty Index futures witnessed fall in open interest by 4% for the May series and by 19% for the June series. Implied volatility (IV) rose for call option and put option in the last week. Rise in IV for call option and put option shows higher volatility ahead.
The Federal Reserve kept the target range for the federal funds rate at 2.25% to 2.25% during its May policy-meeting, saying that economic activity has been rising at a solid rate and that labour market remains strong. The Committee also reaffirmed its position to be patient about further policy firming.
Nonfarm payrolls in the US increased by 263,000 in April 2019, following a downwardly revised 189,000 rise in March 2019 and easily beating market expectations of 185,000. Notable job gains occurred in professional and business services, construction, health care and social assistance fields.
The US unemployment rate fell to 3.6% in April 2019 from 3.8% in the previous month, below market expectations of 3.8%.
The ISM Non-Manufacturing PMI index for the United States fell to 55.5 levels in April 2019 from 56.1 levels in March and below market expectations of 57 levels.
The IHS Markit Eurozone Manufacturing PMI was revised higher to 47.9 levels in April 2019 from a preliminary estimate of 47.8 levels. Both new orders and export sales continued to fall at a sharp pace and output shrank for a third straight month.
The Eurozone economy grew 0.4% on quarter in the three months to March 2019, accelerating from a 0.2% expansion and beating market expectations of 0.3%, a flash estimate showed. Among countries for which data is already available, Spain’s economy advanced at a faster 0.7%, while French GDP growth was unchanged at 0.3%.
The Bank of England’s Monetary Policy Committee voted unanimously to hold the Bank Rate at 0.75% during its May policy-meeting and reaffirmed its pledge to gradual and limited rate rises over the forecast period, despite the slowdown in global growth and ongoing Brexit uncertainties.
Stocks of crude oil in the United States rose by 9.934 million barrels in the week ended 26th April 2019, after a 5.479 million increase in the previous week and well above market expectations of a 1.485 million gain. It is the biggest gain since the week ended 9th November 2018.
The number of Americans filling for unemployment benefits came in at 230,000 in the week ending 27th April 2019, the same as the week before and compared with market expectations of 215,000.
Wall Street closed deeply in green on Friday, the US jobless rate fell to its lowest level seen since December 1969, at 3.6% in April 2019 from 3.8% in the previous month, below market expectations of 3.8%. Tech stocks outperformed on Friday, nudged by Amazon getting a boost from an investment by Warren Buffett’s Berkshire Hathaway. During the week, Dow Jones fell by 0.15%, Nasdaq gained by 0.22% and S&P 500 rose by 0.16%.
The US crude oil price fell as much as 1.5% to USD 62.7 a barrel on Thursday, after data from the Energy Information Administration showed crude stocks increased well above market expectations, despite ongoing political crisis in Venezuela, US sanctions against Iran and recent OPEC supply cuts.
Sensex and Nifty declined by 0.27% and 0.36% respectively during last week.
Infrastructure output in India rose 4.7% (Y-o-Y) in March 2019, following an upwardly revised 2.2% gain.
The Nikkei India Manufacturing PMI dropped to 51.8 levels in April 2019 from 52.6 levels in the prior month and missing market expectations of 52.5 levels. However, post-election growth expectation sentiment remains strong.
Bharti Airtel and the Vodafone Group Plc are in talks with a consortium led by private equity firm KKR to slash their stakes by over half in the company that will be created by the imminent merger of Bharti Infratel and Indus Towers. This could lead to a change in management at the merged entity, which will be among the world’s largest tower companies. The combined entity is being valued at USD 12-13 billion and once Bharti Infratel and Indus Towers merge, Bharti Airtel and Vodafone Group are aiming to bring their stakes down to around 13% each.
Hindustan Unilever (HUL) reported 7% drop in volumes for the quarter ended March 2019. Revenues increased by 9% (Y-o-Y) to Rs. 99 billion and net profit rose by 13% (Y-o-) to Rs. 15 billion. Slowdown in rural consumption has affected many FMCG companies in the quarter ended March 2019. HUL share price fell by 4% during last week.
Sectoral Indices Trends:
The sectoral indices mostly closed in negative territory during last week. The S&P BSE PSU, Auto, IT and Bankex indices had declined by 0.29%, 1.38%, 2.41% and 0.88% respectively. BSE Oil & Gas gained by 0.60% during last week.
ICICI Bank Witness 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% in the last week.
HDFC Bank also witnessed rise in open interest in the stock future segment in the last week. Share price of HDFC Bank gained by 3% in the last week. HDFC Bank reported 23% (Y-o-Y) growth in net profit to Rs. 58 billion. NII surged by 25% (Y-o-Y) to Rs. 130 billion and provisions for bad loans declined by 14.5% (Q-o-Q). The board of HDFC Bank declared a final dividend of Rs.15 per share.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown fall in the open interest across Stock Options, Index futures, Index options and Stock futures on a week on week basis.
Indian rupee appreciated by 1.064% against USD, USD/INR pair closed at Rs. 69.109 in the last week.