FIIs/FPIs have bought Indian equity shares worth Rs.79 billion and Rs. 19 billion in May 2019 and till now in June 2019 respectively.
The Nifty Index futures witnessed rise in open interest by 2% for the June series and by 55% 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 unsteady support for Nifty at present levels.
Nonfarm payrolls in the US increased by 75,000 in May 2019, following a downwardly revised 224,000 rise in April 2019 and missing market expectations of 185,000. Employment continued to trend up in professional & business services and in health care sectors. The US unemployment rate stood at 3.6% in May 2019, unchanged from the previous month’s 49-year low and matching market expectations.
The US trade deficit narrowed to USD 50.8 billion in April 2019 from a revised USD 51.9 billion in the previous month and compared to market expectations of USD 50.7 billion.
The IHS Markit US Services PMI came in at 50.9 levels in May 2019, in line with a preliminary estimate and below April’s 53 levels, final estimates showed.
The IHS Markit Eurozone Services PMI increased to 52.9 levels in May 2019 from 52.8 levels in the previous month and above preliminary estimates of 52.5 levels.
The Nikkei Japan Services PMI edged down to 51.7 levels in May 2019 from the previous month’s 51.8 levels, as the rate of job creation weakened from April’s high.
Stocks of crude oil in the United States increased by 6.771 million barrels in the week ended 31st May 2019, up from a 0.282 million drop in the previous week and against market expectations of a 0.849 million decline.
The number of Americans filling for unemployment benefits came in at 218,000 in the week ended 1st June 2019, the same as the previous week’s revised level and compared with market expectations of 215,000.
Wall Street surged on Friday, as the broad rally was boosted by hopes that the Fed will loose monetary policy in an attempt to support growth after US weak jobs report. US companies added 75,000 jobs during May 2019, fewer than an expected 185,000. During the week, Dow Jones surged by 5%, Nasdaq gained by 4% and S&P 500 rose by 4.5%.
Oil prices surged on Friday after Saudi Arabia’s Energy Minister said in a conference in Russia that the Cartel group should extend oil production cuts. Crude oil prices gained by 2% during last week.
Sensex and Nifty declined by 0.25% and 0.44% respectively during last week.
The Reserve Bank of India lowered its policy interest rate by 25bps to 5.75% during its June policy-meeting and changed its monetary policy stance to accommodative from neutral. CPI inflation is revised upwards to 3.00%-3.10% in H1 2019-20 and CPI inflation is revised downwards to 3.4%-3.7% in H2 2019-20.
Click here our read our analysis “G-secs to Shine while Credit Markets Bleed- RBI June 2019 Policy Review”.
The Nikkei India Services PMI dropped to 50.2 levels in May 2019 from 51levels in April 2019 and slightly above market forecasts of 50.1 levels. The reading pointed to the weakest expansion in services activity since May last year when the sector contracted, as disruptions arising from the elections hampered growth of new work intakes.
Hero MotoCorp reported 13.5% rise in sales to over 6.5 lakh units in May 2019 over the previous month. Share price of Hero MotoCorp gained by 2% during last week.
Sectoral Indices Trends:
The sectoral indices closed mostly in negative territory during last week. The S&P BSE PSU, IT, Bankex and Oil & Gas indices had declined by -3.24%, -0.27%, -1.13% and -3.24% respectively. S&P BSE Auto index gained by 3.22% during last week.
SBI Witness rise in turnover in Stock Derivatives
SBI has witnessed rise in open interest in the stock future segment in the last week. Share price of SBI declined by 3% during last week. Last week, SBI was planning to raise Rs. 150 billion to Rs. 180 billion through QIP route. For Q4Fy19, the bank reported a profit of Rs. 8.38 billion because of provisions to pare bad debt. However, bank’s asset quality improved during the quarter as bad loans fell sharply.
Reliance Industries also witnessed rise in open interest in the future segment in the last week. Share price of Reliance Industries declined by 2% during last week. As per the news report, Saudi Aramco has ended talks with Reliance Industries over the minority 25% stake sale in Jamnagar Refinery. Whereas, Reliance was planning to use stake sale amount to reduce its debt.
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 0.27% against USD, USD/INR pair closed at Rs. 69.39 in the last week.