FIIs/FPIs have bought Indian equity shares worth Rs.79 billion and Rs. 26 billion in May 2019 and in June 2019 respectively.
The Nifty Index futures witnessed fall in open interest by 311% for the July series and rise in open interest by 553% for the August 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 annual inflation rate in the Euro Area stood at 1.2% in June 2019, unchanged from the previous month and in line with market expectations, a preliminary estimate showed. It remained the lowest inflation rate since April 2018, due to a slowdown in cost of energy.
The gross domestic product in the United Kingdom grew 1.8% (Y-o-Y) in the first quarter of 2019, unrevised from the first estimate and up from 1.4% in the previous period. That was the strongest pace of expansion since the third quarter of 2017.
Industrial production in Japan jumped 2.3% (M-o-M) in May 2019, following a 0.6% rise in the previous month and beating market expectations of 0.7%, preliminary data showed.
The official Manufacturing PMI in China unexpectedly was unchanged at 49.4 levels in June 2019 and missing market expectations of 49.5 levels.
The number of Americans filling for unemployment benefits increased to 227,000 in the week ended 21st June 2019, from the previous week’s revised level of 217,000 and compared with market expectations of 220,000.
Stocks of crude oil in the United States slumped by 12.788 million barrels in the week ended 21st June 2019, following a 3.106 million decrease in the previous week and compared with market expectations of a 2.54 million decline. It was the biggest fall in crude inventories since the week ended 02nd September 2016.
Wall Street closed moderately in the green on Friday, amid expectations that the United States and China will be able to ceasefire their trade disputes during Trump and Xi meeting. During the week, Dow Jones declined by 0.50%, Nasdaq fell by 0.32% and S&P 500 slipped by 0.40%.
Sensex and Nifty declined by 0.65% and 0.84% respectively during last week.
India’s current account deficit narrowed sharply to USD 4.6 billion, or 0.7% of GDP, in January-March 2019 from USD 13 billion, or 1.8% of GDP, in the same period a year earlier. The goods deficit decreased to USD 35.2 billion from USD 41.6 billion a year ago and the primary income gap shrank to USD 7 billion from USD 7.8 billion. Meanwhile, the services surplus widened to USD 21.3 billion from USD 20.2 billion in the previous year.
India’s fiscal deficit widened to INR 3.66 trillion in April-May 2019 from INR 3.45 trillion in the same period of the previous fiscal year.
Tata Consultancy Services has won a mandate from India’s civil aviation regulator to digitise its daily operations. The project envisages online service delivery, automation of systems, processes at the backend and implementation of required IT infrastructure and service delivery framework.
CARE has downgraded the short-and long-term credit ratings of Reliance Infrastructure to ‘D’, suggesting that the Anil Ambani Group company’s debt instruments are either in default or expected to be in default on maturity.
Lemon Tree has scaled up its target inventory by 13% to 8,674 rooms by 2021, buoyed by the surging demand for branded rooms. Share price of Lemon Tree rose by 5%.
Cox & Kings has defaulted on the payment of commercial papers due to cash flow mismatch and a situation exacerbated by rating downgrade. Cox & Kings would meet its financial obligations through a combination of internal accruals and monetisation of assets. The company was required to pay Rs 2 billion, however, Cox & Kings was able to pay only Rs 0.50 billion and defaulted on Rs 1.50 billion.
Sectoral Indices Trends:
The sectoral indices closed mostly in positive territory during last week. The S&P BSE Bankex, PSU and Auto indices had gained by 1.50%, 2.21% and 0.88% respectively. S&P BSE IT and Oil & Gas indices declined by -1.69% and 0.34% 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 3.43% during last week.
Axis bank also witnessed rise in open interest in the stock future segment in the last week. Share price of Axis bank gained by 5% during last week. Axis bank management is considering raising at least USD 1.3 billion through a share sale to institutional investors. Axis bank will benefit from liquidity which will support loan growth.
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 0.91% against USD, USD/INR pair closed at Rs. 68.95 in the last week.