FIIs/FPIs have bought Indian equity shares worth Rs. 211 billion and Rs.79 billion in April 2019 and May 2019 in May 2019.
The Nifty Index futures witnessed rise in open interest by 250% for the June series and by 196% for the Juli 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.
Corporate profits in the United States declined by USD 72.8 billion, or 3.5%, in the first quarter of 2019 to USD 2,003.4 billion, after being unchanged in the previous period at USD 2,076 billion and against market expectations of a 2% gain.
The US economy advanced by an annualized 3.1% in the first quarter of 2019, slightly below earlier figures of a 3.2% expansion and in line with market expectations, the second estimate showed.
Profits earned by China’s largest industrial firms dropped by 3.4% from a year earlier to CNY 1.813 trillion in the first four months of 2019, compared to a 3.3% fall in the January to March period. Profits at state-owned enterprises declined 9.7% while those at private firms grew 4.1%.
Industrial production in Japan rebounded 0.6% month-over-month in April 2019, following a 0.6% decline in March 2019 and compared to market expectations of a 0.2% advance.
Stocks of crude oil in the United States decreased by 0.282 million barrels in the week ended 24th May 2019, following a 4.74 million rise in the previous week and compared with market expectations of a 0.857 million drop.
The number of Americans filling for unemployment benefits decreased by 1,000 to 211,000 in the week ended 18th May 2019 from the previous week’s unrevised level of 212,000 and compared with market expectations of 215,000.
Wall Street plummeted on Friday, as investors concerns over global trade escalated after President Trump threatened to impose tariffs on all Mexican imports from 10th June 2019 in attempt to reduce the flow of illegal migrants. The tariff will start at 5% and will gradually increase to 25% by October 2019 if the migration problem is not resolved. During the week, Dow Jones fell by 0.7%, Nasdaq fell by 2.3% and S&P 500 declined by 0.54%.
European equities closed sharply in red on Friday, with most sectors in negative territory and particularly autos shares, as investors concerns over global trade escalated. During the week FTSE declined by 1.60% and DAX fell by 2.36%.
Brent crude oil dropped on Friday to the lowest level since 25th February 2019, as comments from President Trump boosted trade tensions. Prices have also been under pressure amid an increase in US oil production while EIA´s latest data showed a less-than-expected decline in US stockpiles. Crude oil prices declined by 10% during last week.
Sensex and Nifty gained by 0.71% and 0.67% respectively during last week. Sensex & Nifty touched all-time highs on Friday.
The Indian economy advanced 5.8% (Y-o-Y) during Q4Fy19, slowing from a 6.6% expansion in the previous period and missing market expectations of 6.3%. It was the weakest growth rate since the first quarter of 2014, amid weaker consumer demand and fixed investment.
Infrastructure output in India increased 2.6% (Y-o-Y) in April 2019, easing from an upwardly revised 4.9% rise in the previous month.
India’s fiscal deficit widened to INR 1.57 trillion in April 2019 from INR 1.52 trillion in the same period of the previous fiscal year. Total revenues rose 36% (Y-o-Y) to INR 0.976 trillion and expenditures rose 14% (Y-o-Y) to INR 2.547 trillion.
Sectoral Indices Trends:
The sectoral indices closed mostly in positive territory during last week. The S&P BSE PSU, IT, Bankex and Oil & Gas indices had gained by 1.7%, 4.36%, 0.18% and 2.5% respectively. S&P BSE Auto index declined 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 2% during last week. SBI is planning to raise Rs. 150 billion to Rs. 180 billion through QIP route. Earlier this month, 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.
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 1.4% against USD, USD/INR pair closed at Rs. 69.373 in the last week.