FIIs/FPIs have bought Indian equity shares worth Rs. 26 billion in June 2019 and sold shares worth Rs. 77 billion in July 2019 respectively.
The Nifty Index futures witnessed rise in open interest by 12% for the July series and fall in open interest by 37% for the August 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.
US industrial output was unchanged in June 2019, following a 0.4% growth in May 2019 and missing market forecasts of a 0.1% gain. Increases for both manufacturing and mining offset a decline for utilities.
The annual inflation rate in the Euro Area rose to 1.3% in June 2019, slightly above a preliminary and market expectations of 1.2%.
The Euro Area trade surplus widened to EUR 23 billion in May 2019 from EUR 17 billion in the corresponding month of the previous year and easily beating market forecasts of a EUR 16.3 billion surplus. Exports went up 7.1% from a year earlier and imports advanced at a slower 4.2%.
The Eurozone current account surplus widened to EUR 13.3 billion in May 2019 from EUR 9.3 billion in the corresponding month of the previous year
Japan’s consumer price inflation came in at 0.7% (Y-o-Y) in June 2019, unchanged from the previous month and matching market expectations. A faster rise in food prices and a pick-up in housing cost was offset by a steeper decline in transport and communication prices.
Japan’s trade surplus narrowed to JPY 589 billion in June 2019 from JPY 728 billion in the same month a year earlier and compared to market expectations of a JPY 420 billion surplus. Exports declined for a seventh straight month while imports fell for the second month in a row.
The Chinese economy advanced 6.2% (Y-o-Y) in the second quarter of 2019, slowing from a 6.4% expansion in the previous three-month period and matching market expectations. Ongoing trade tensions with the US, weakening global demand and alarming off-balance-sheet borrowings by local governments are slowing down economy growth.
China’s industrial output expanded 6.3% (Y-o-Y) in June 2019, accelerating from a 5% growth in the previous month and beating market consensus of 5.2%.
Industrial capacity utilization rate in China increased to 76.4% in the second quarter of 2019 from 75.9% in the previous period.
The Chinese economy grew by a seasonally adjusted 1.6% on quarter in the three months to June 2019, accelerating from a 1.4% expansion in the previous period and beating market consensus of 1.5%.
The Bank of Korea unexpectedly lowered its base rate by 25 basis points to 1.5% on 18th July 2019 policy-meeting. This was the first adjustment in benchmark rate since November last year and the bank’s first rate cut in three years, amid efforts to spur economic growth on the back of rising global uncertainties following a trade dispute with Japan and tariff war between US and China. Policymakers also revised lower 2019 GDP growth outlook to 2.2% from an earlier estimate of 2.5%.
The number of Americans filling for unemployment benefits increased by 8,000 to 216,000 in the week ended 13th July 2019 from the previous week’s revised level of 208,000 and in line with market expectations.
Stocks of crude oil in the United States decreased by 3.116 million barrels in the week ended 12th July 2019, following a 9.499 million barrels plunge in the previous week and above market expectations of a 2.694 million barrels fall, according to EIA Petroleum Status Report. It was the fifth straight weekly decline in crude oil inventories.
Wall Street closed in the red on Friday, as US President Donald Trump called the Fed to end tight monetary policy, as trade tensions with China persist. During the week, Dow Jones declined by 0.65%, Nasdaq fell by 1.2% and S&P 500 slipped by 1.4%.
Sensex and Nifty declined by 1% and 1.13% respectively during last week.
Wholesale prices in India rose by 2.02% (Y-o-Y) in June 2019, easing from a 2.45% gain in the previous month and below market expectations of 2.35%. It was the lowest wholesale inflation rate since July 2017, amid a slowdown in cost of manufactured products and a marked decline in fuel prices.
India’s trade deficit narrowed to USD 15.28 billion in June 2019 from USD 16.60 billion in the same month last year and below market expectations of USD 15.64 billion.
HDFC bank reported Q1Fy20 results, net profit rose by 21% (Y-o-Y) and net interest income increased by 23% (Y-o-Y) to Rs. 132 billion. CASA deposits grew 12.8%.
Sectoral Indices Trends:
The sectoral indices mostly closed in negative territory during last week. The S&P BSE Bankex, Oil & Gas, PSU and Auto indices had declined by -2.76%, -1.29%, -2.15% and -6% respectively. BSE S&P IT index gained by 2.35% during last week.
RBL Witnesses highest rise in turnover in Stock Derivatives
RBL has witnessed rise in open interest in the stock future segment in the last week. Share price of IndusInd Bank declined by 21% during last week. RBL reported 41% growth in net profit mainly driven by sharp rise in net interest income. Net interest Income for the quarter rose by 48% and management mentioned that there would be some challenges on company’s exposure in near term which led to steep fall in share price. Provisions during the quarter increased 51.89% to Rs. 2.13 billion, from Rs.1.40 billion in the year-ago quarter.
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 depreciated by 0.44% against USD, USD/INR pair closed at Rs. 68.86 in the last week.