FIIs/FPIs have bought Indian equity shares worth Rs. 26 billion in June 2019 and sold shares worth Rs. 144 billion in July 2019 respectively.
The Nifty Index futures witnessed rise in open interest by 471% for the August series and by 350% for the September series. Implied volatility (IV) rose for put option and fell for call 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.
The US economy grew by an annualized 2.1% in the second quarter of 2019, beating market expectations of 1.8% and following a 3.1% expansion in the previous three-month period.
The US goods trade deficit decreased to USD 74.2 billion in June 2019 from USD 75.0 billion in the previous month. Exports of goods declined by USD 3.7 billion to USD 136.3 billion led by consumer goods, vehicles and capital goods, while imports fell at a steeper USD 4.6 billion to USD 210.5 billion as purchases fell for industrial supplies, vehicles, food, consumer and capital goods.
The IHS Markit US Services PMI fell to 52.2 levels from 51.5 levels in the previous month and above market expectations of 51.7 levels. It is the fastest pace of expansion in services sector since April 2019.
The ECB keep rates on hold on 25th July 2019 policy-meeting with the main refinancing rate remaining at 0% and the deposit rate at -0.4% but changed its forward guidance and expects rates to remain at their present or lower levels at least through the first half of 2020. The bank has also pointed that is already preparing for more quantitative easing.
The IHS Markit Eurozone Manufacturing PMI dropped to 46.4 levels in July 2019 from the previous month’s 47.6 levels and below market expectations of 47.6 levels.
The South Korean economy advanced at an annual rate of 2.1% during June quarter of 2019, following a 1.7% expansion in the previous quarter and beating market expectations of 2%.
Profits earned by China’s largest industrial firms dropped by 2.4% from a year earlier to CNY 2.98 trillion in the first six months of 2019, compared to a 2.3% fall in January-May. Profits at state-owned industrial firms tumbled 8.7%, while those at private firms rose 6%.
The number of Americans filling for unemployment benefits decreased by 10,000 to 206,000 in the week ended 20th July 2019 from the previous week’s unrevised level of 216,000 and compared with market expectations of 219,000.
Stocks of crude oil in the United States decreased by 10.835 million barrels in the week ended 19th July 2019, following a 3.116 plunge in the previous week and above market expectations of a 4.011 million fall, according to EIA Petroleum Status Report. It was the sixth straight weekly decline in crude oil inventories.
Wall Street closed in the green on Friday after data showed the US economy grew by an annualized rate of 2.1% in the second quarter, beating market expectations of 1.8%, as investors look ahead to the Fed’s monetary policy meeting next week, as well as US-China trade negotiations. In addition, stronger-than-expected quarterly results from Alphabet (stock gained by 10.5%), Twitter (stock gained by 9.7%) and Starbucks (stock gained by 8.9%) supported sentiment. During the week, Dow Jones gained by 0.14%, Nasdaq rose by 2.26% and S&P 500 rose by 1.4%.
Oil prices edged higher on Thursday, after latest EIA data showed a much larger-than-expected drop in US crude inventories. During the week, Brent Crude Oil is up by 1.6%.
Sensex and Nifty declined by 1.20% and 1.18% respectively during last week.
Tata Steel is raising USD 600 million, mainly to fund the capital expenditure of phase 2 expansion at its Kalinganagar plant and the balance for refinancing of loans. Management of Tata Steel said that the company had set a target of reducing gross debt by USD 1 billion in FY20. Share price of Tata Steel declined by 2% during last week.
Digital Communications Commission approved the recommendation of the Telecom Regulatory Authority of India (Trai) to levy a total penalty of Rs 30 billion on Bharti Airtel and Vodafone Idea for refusing to provide points of interconnection to RelianceJio.
Cox &Kings announced the resignation of its independent director Subhash Chandra Bhargava, as well as a fresh default of Rs 1.74 billion on commercial paper. Share price of Cox & Kings declined by 19% during last week.
Sectoral Indices Trends:
The sectoral indices closed in negative territory during last week. The S&P BSE Bankex, IT, Oil & Gas, PSU and Auto indices had declined by -1.03%, -0.08%, -2.73%, -2.78% and -0.50% respectively.
Bajaj Finance Witnesses highest rise in turnover in Stock Derivatives
Bajaj Finance Witnesses rise in turnover in Stock Derivatives
Bajaj Finance has witnessed rise in open interest in the stock future segment in the last week. Share price of Bajaj Finance gained by 2% during last week. Bajaj Finance reported 43% growth in net profit mainly driven by sharp rise in net interest income. Bajaj Finance to remain focused on growth, profitability & sustainability and continued to strengthen business model. New customer acquisition momentum for the quarter remained strong at 2.46 MM. Overall franchise stood at 36.94 MM, a growth of 31% YoY. Cross sell franchise stood at 21.85 MM. Strategy remains to grow wallet share of these 21.85 MM clients. Overall cost of funds remained very steady at 8.5% owing to good ALM management and strong liquidity position. Incremental borrowings are now being sourced at much lower cost.
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 depreciated by 0.029% against USD, USD/INR pair closed at Rs. 68.86 in the last week.