FIIs/FPIs have bought Indian equity shares worth Rs.26 billion and sold shares worth Rs. 37 billion in in July 2019 (till 5th July 2019) respectively.
The Nifty Index futures witnessed fall in open interest by 2.3% for the July series and rise in open interest by 48% for the August series. Implied volatility (IV) fell for put options and call options in the last week. Fall in IV for call options and for put options shows steady support for Nifty at present levels.
Non-farm payrolls in the US increased by 224,000 in June 2019, following a downwardly revised 72,000 rise in May and beating market expectations of 160,000. Notable job gains occurred in professional and business services, in health care and in transportation and warehousing. The US unemployment rate rose to 3.7% in June 2019 from a 49-year low of 3.6% in the previous month and above market expectations of 3.6%.
The IHS Markit US Services PMI was revised higher to 51.5 levels in June 2019 from a preliminary estimate of 50.7 levels.
The US trade deficit widened to USD 55.5 billion in May 2019 from a revised USD 51.2 billion in the previous month and compared to market expectations of USD 54.0 billion. Imports surged 3.3% and exports rose at softer 2%.
The IHS Markit Eurozone Services PMI advanced to 53.6 levels in June 2019 from 52.9 in the previous month and above flash estimates of 53.4 levels.
The number of Americans filling for unemployment benefits decreased to 221,000 in the week ending 29th June 2019, from the previous week’s upwardly revised level of 229,000 and compared with market expectations of 223,000.
Stocks of crude oil in the United States decreased by 1.085 million barrels in the week ended 28th June 2019, after a 12.778 million plunge in the previous week and compared with market expectations of a 2.964 million drop.
US edged lower on Friday after data showed that US job creation rebounded firmly in June 2019 while wage gains remained subdued, raising market bets the Fed will be lowering interest rates by 25bps later this month. During the week, Dow Jones gained by 1.21%, Nasdaq rose by 2% and S&P 500 gained by 1.5%.
European shares closed deep in red on Friday, with almost all sectors in negative territory, after expectations of lower interest rates in the next Federal Reserve meeting eased and German data showed industrial orders unexpectedly plunged in May 2019. During the week, DAX gained by 1.32% and FTSE rose by 1.72%.
Sensex and Nifty gained by 0.30% and 0.19% respectively during last week.
Budget 2019-20 Highlights:
- Government expects economy will become USD 5 trillion in next 5 years.
- Bharat Mala 2.0 to focus on states to build their road networks.
- NRI portfolio investment route to be merged with foreign portfolio investment route.
- PSU banks to get Rs 700 billion boost for credit improvement.
- Rs 1050 billion targeted from disinvestment in 2019-20.
- Customs duty on gold and precious metals raised to 12%.
- FY20 fiscal deficit target cut to 3.3% from 3.4%.
- Government will bring out a policy framework for making India a global hub of aircraft financing and leasing activities.
- Government is set to consider increasing minimum public shareholding in the listed companies, raising the current threshold of 25% to 35%.
Click here to read our analysis on “Budget for the Bond Market”.
DHFL that has delayed payment on some of its obligations, plans to ask banks to lend Rs 15 billion every month to help revive the company. The financier, which has about Rs 800 billion of obligations, will submit the resolution plan on 10th July 2019 to a consortium of seven lenders led by state-run Union Bank of India. The other proposals include increasing the tenor of some loans and converting part of its debt into equity. Share price of DFHL rose by 12% in last week.
McLeod Russel has been facing liquidity issues and has been selling its tea estates to repay its financial obligations. The company has already sold 16 tea estates and has entered into MoU for selling another four estates. McLeod Russel is the promoters of Eveready Industries Ltd. Eveready share price fell by 21% during last one month.
Sectoral Indices Trends:
The sectoral indices closed mostly in negative territory during last week. The S&P BSE IT, Oil & Gas, PSU and Auto indices had declined by -2.59%, -2.13%, -0.88% and -1.18% respectively. S&P BSE Bankex indiex gained by 1.06% during last week.
SBI Witnesses highest rise in turnover in Stock Derivatives
SBI Witnesses 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 gained by 3% during last week. Nifty PSU bank index gained after the Finance Minister announced Rs. 700 billion recapitalisation plan for PSU banks. During the period from Fy15 to Fy19 government infused Rs.2.5 trillion through recapitalising bonds. PSU banks profitability is likely to increase as most of the banks have recognised NPAs.
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 0.725% against USD, USD/INR pair closed at Rs. 68.45 in the last week.