FIIs/FPIs have sold Indian equity shares worth Rs. 124 billion in July 2019 and shares worth Rs. 104 billion in August 2019 (16th August 2019) respectively.
The Nifty Index futures witnessed rise in open interest by 2% for the August series and by 38% for the September series. Implied volatility (IV) rose for put option and call option in the last week. Rise in IV for call option and put option shows unsteady support for Nifty at present levels.
US industrial output dropped 0.2% from a month earlier in July 2019, following a revised 0.2% growth in June 2019 and missing market forecasts of a 0.1% gain.
China’s industrial production increased 4.8% (Y-o-Y) in July 2019, the weakest annual gain since February 2002 and below market consensus of 5.8%, on the back of escalating trade dispute with the US and sluggish domestic demand.
Germany’s gross domestic product contracted by a seasonally adjusted 0.1% during quarter ended three months to June 2019, following a 0.4% expansion in the previous period. The U.S – China trade war hit global manufacturing supply lines and the country’s export-dependent industries.
Industrial production in the Euro Area slumped 2.6% from a year earlier in June 2019, following a 0.8% decline in the previous month and compared with market expectations of a 1.2% fall. Unexpected drop in industrial output in China, US & Europe added to concerns about ongoing manufacturing weakness.
China’s retail trade rose 7.6% (Y-o-Y) in July 2019, easing from a 9.8% growth in the previous month and missing market expectations of 8.6%.
The US annual inflation rate rose to 1.8% in July 2019 from a four-month low of 1.6% in the previous month and above market consensus of 1.7%, boosted by food prices and a range of other goods while energy deflation eased.
The number of Americans filling for unemployment benefits increased by 9,000 to 220,000 in the week ended 10th August 2019 from the previous week’s upwardly revised 211,000 and beating market expectations of 214,000.
Stocks of crude oil in the United States increased by 1.580 million barrels in the week ended 9th August 2019, following a 2.385 million jump in the previous week and against market expectations of a 2.775 million decrease.
Wall Street closed in green on Friday, retreating some losses from a massive sell-off earlier in the week, after German magazine reported that Germany is ready to suspend its balanced budget and take on debt while Treasury yields climbed from historical lows. During the week, Dow Jones declined by 1.53%, Nasdaq fell by 0.80% and S&P 500 slipped by 0.63%.
European shares closed in green on Friday, after a tumultuous week, as sentiment turned more positive on hopes of economic stimulus from economies like China and Germany. During the week, DAX declined 1.13% and FTSE fell by 1.90%.
Stocks in the Asia-Pacific region closed mostly higher on Friday, after China said it would boost disposable income and stabilize employment while Hong Kong unveiled a stimulus package to help avert a recession. During the week, Nikkei 225 declined by 1.30%, Shanghai Composite gained by 2% and Kospi fell by 0.52%.
Gold prices rose to the highest value since April of 2013 on Tuesday, as protests in Hong Kong, a crash in Argentina’s peso and persistent pessimism over the US-China trade talks increased investors appetite for the safe haven asset.
Sensex and Nifty declined by 0.61% and 0.56% respectively during last week.
Wholesale prices in India rose by 1.08% (Y-o-Y) in July 2019, slowing from a 2.02% gain in the previous month and missing market expectations of 1.93%. It was the lowest wholesale rate since June 2017, mainly due to a slowdown in manufacturing inflation and a decline in fuel prices.
India’s retail price inflation rate stood at 3.15% (Y-o-Y) in July 2019, little-changed from the previous month’s 3.18% and slightly below market expectations of 3.20%. Inflation remained below the Reserve Bank of India’s medium-term target of 4% for the twelth consecutive month, despite recent interest rate cuts.
India’s trade deficit narrowed to USD 13.43 billion in July 2019 from USD 18.63 billion in the same month last year and below market expectations of USD 15.70 billion.
Sectoral Indices Trends:
The sectoral indices mostly closed in negative territory during last week. The S&P BSE Bankex, IT, PSU and Auto indices had declined by -0.70%, -2.67%, -0.62% and -1.97% respectively. S&P BSE Oil & Gas gained by 2.31%.
Indiabulls Housing Finance Witnesses rise in turnover in Stock Derivatives
Indiabulls Housing Finance has witnessed rise in open interest in the stock future segment in the last week. Share price of Indiabulls Housing Finance declined by 10% on Friday after global rating agency Moody’s downgraded the mortgage lender’s long-term corporate family rating to Ba2 from Ba1, while changing its outlook to negative from stable. For Q1Fy20, Indiabulls Housing Finance reported 24% fall in net profit and total income fell by 4%.
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 0.324% against USD, USD/INR pair closed at Rs. 71.155 in the last week.