FIIs/FPIs have bought Indian equity shares worth Rs.79 billion and Rs. 9 billion in May 2019 and till now in June 2019 respectively.
The Nifty Index futures witnessed marginal fall in open interest by 0.4% for the June series and rise in open interest by 72% for the July series. Implied volatility (IV) fell for put option and call option in the last week. Fall in IV for put option and call option shows steady support for Nifty at present levels.
Fed kept target interest rate unchanged at 2.25%-2.50% in its latest FOMC policy-meeting but signalled willingness to act on fragile economic conditions globally, which could mean rate cuts as early as July 2019.
Click here to read our analysis on “Fed Rate Cut Expectations and Impact on Sensex & Nifty”.
The US current account deficit narrowed to USD 130.4 billion or 2.5% of the GDP in the first quarter of 2019 from an upwardly revised USD 144 billion gap or 2.8% of the GDP in the last three months of 2018, above market consensus of USD 125 billion.
The IHS Markit US Services PMI dropped to 50.7 levels in June 2019 from 50.9 levels May and slightly below market expectations of 51 levels.
The Bank of Japan left its key short-term interest rate unchanged at -0.1% at its June policy- meeting, as widely expected, hours after the Federal Reserve signalled possible interest rate cuts later this year. Policymakers also kept the target for the 10-year Japanese government bond yield at around 0% but warned that downside risks regarding overseas economies were likely to be significant.
Japan’s consumer price inflation fell to 0.7 percent year-on-year in May 2019 from a six month-high of 0.9 percent in the prior month and in line with market consensus.
The Bank of England’s Monetary Policy Committee voted unanimously to hold the Bank Rate at 0.75% during its June policy meeting and reaffirmed its pledge to gradual and limited rate rise over the forecast period, despite ongoing Brexit concerns and global trade tensions.
The Eurozone current account surplus narrowed sharply to EUR 19.2 billion in April 2019 from EUR 31.4 billion in the same month last year, but still above market expectations of EUR 10.6 billion.
The IHS Markit Eurozone Services PMI advanced to 53.4 levels in June 2019 from 52.9 levels pointing to the steepest expansion in seven months.
Japan posted a trade deficit of JPY 967 billion in May 2019 compared with a JPY 577 billion shortfall in the same month a year earlier and market expectations of a JPY 979 billion gap. Exports declined for a sixth straight month while imports edged down after climbing in April 2019.
The number of Americans filling for unemployment benefits decreased to 216,000 in the week ended 15th June 2019, from the previous week’s unrevised level of 222,000 and compared with market expectations of 220,000.
Stocks of crude oil in the United States decreased by 3.106 million barrels in the week ended 14th June 2019, down from a 2.206 million rise in the previous week and above market expectations of a 1.077 million decline.
Wall Street closed in the red on Friday despite news that Vice President Pence would postpone his speech on China policy next week amid positive signs on trade and ahead of President Trump meeting with Chinese President Xi at G20 summit in Japan. During the week, Dow Jones gained by 2%, Nasdaq surged by 3% and S&P 500 rose by 2.10%.
European shares traded in the green on Friday, with energy stocks among the best performers on the back of higher oil prices. Also, better-than-expected flash Markit PMIs for all sectors in Germany and France lifted market sentiment. During the week, FTSE gained by 0.83% and DAX rose by 2%.
Oil prices extended gains on Friday, on increased Middle East tensions after President Trump mentioned that he had cancelled missile strikes on Tehran after a US drone was shot down on Thursday. Tensions have been rising as US sanctions on Iran have dramatically reduced oil exports from OPEC’s third largest producer.
Sensex and Nifty declined by 0.65% and 0.84% respectively during last week.
Biocon has received the European drug regulatory agency’s approval for its facilities in Bengaluru, enabling it to continue and enhance its biosimilar production for the European markets. Company said that it has received the Certificate of GMP (Good Manufacturing Practice) compliance from European Medicines Agency (EMA) for its Biologics Drug Product (DP) and Drug Substance (DS) facilities at Biocon Park, Bengaluru. Share price of Biocon gained by 2% during last week.
PSP Projects has received new work orders worth Rs. 6 billion for institutional and residential projects from various clients.
Sectoral Indices Trends:
The sectoral indices closed mostly in positive territory during last week. The S&P BSE PSU, Bankex and IT indices had gained by 0.43%, 0.31% and 0.10% respectively. S&P BSE Oil & Gas and Auto indices declined by -1.30% and -2.02% during last week.
Indiabulls Housing Finance Witnesses highest rise in turnover in Stock Derivatives
The Nifty Index futures witnessed fall in open interest by 9% for the June series and rise in open interest by 186% for the July 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 steady support for Nifty at present levels.
Indiabulls Housing Finance Witness rise in turnover in Stock Derivatives
Indiabulls Housing Finance has witnessed rise in open interest in the stock future segment in the last week. Share price of Indiabulls Housing Finance declined by 10% during last week. Media reports indicated that company is planning to buy-back all NCDs maturing in July and August, total worth of Rs.22 billion. CCI has approved merger of Indiabulls Housing Finance & Laxmi Vilas Bank and share swap ratio for this deal is for every 100 shares of Laxmi Vilas Bank shareholders will get 14 shares of Indiabulls Housing Finance.
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 0.29% against USD, USD/INR pair closed at Rs. 69.58 in the last week.