FIIs/FPIs have sold Indian equity shares worth Rs. 124 billion in July 2019 and shares worth Rs. 111 billion in August 2019 (02nd August 2019) respectively.
The Nifty Index futures witnessed fell in open interest by 7% for the August series and by 114% for the September series. Implied volatility (IV) fell for put option and call option in the last week. Fall in IV for call option and put option shows steady support for Nifty at present levels.
The IHS Markit Eurozone Services PMI came in at 53.2 levels in July 2019, little-changed from a preliminary estimate of 53.3 levels and compared to the previous month’s final 53.6 levels. Incoming new work increased at a softer pace and employment growth was the weakest since March, while backlogs of work rose for the third successive month.
Japan’s current account surplus came in at JPY 1.21 trillion in June 2019, unchanged from the same month of the previous year and above market consensus of JPY 1.14 trillion.
The Japanese economy advanced 0.4% (Q-o-Q) in the three months to June 2019, easily beating market expectations of a 0.1% expansion and following an upwardly revised 0.7% growth in the previous period.
China’s annual inflation rate rose to 2.8% in July 2019 from 2.7% in the previous month and above market estimates of 2.7%.
Britain’s gross domestic product expanded 1.2% (Y-o-Y )in the second quarter of 2019, slowing from 1.8% in the previous period and missing market consensus of 1.4%. It has not been weaker since the start of 2018.
The number of Americans filling for unemployment benefits decreased by 8,000 to 209,000 in the week ended 3rd August 2019 from the previous week’s revised level of 217,000 and compared with market expectations of 215,000.
Stocks of crude oil in the United States increased by 2.385 million barrels in the week ended 2nd August 2019, up from an 8.496 million drop in the previous week and against market expectations of a 2.845 million decline.
Wall Street closed in the red on Friday, as trade uncertainty extended to close a volatile week. During the week, Dow Jones declined by 0.75%, Nasdaq fell by 0.56% and S&P 500 slipped by 0.45%.
Oil prices rose on Friday, amid expectations that OPEC would reduce output to support the market. The rise in oil prices comes despite a further cut in oil demand growth by the IEA, amid global signs of an economic slowdown and uncertainty over the trade deal between U.S and China. However, during the week brent crude oil prices fell by 5.43%.
Sensex and Nifty declined by 1.25% and 1.02% respectively during last week.
RBI reduced the policy repo rate by 35 bps to 5.40%. RBI decided to maintain the accommodative stance and prioritise economic growth. CPI inflation is projected at 3.1% for Q2FY20 and 3.5-3.7% for H2FY20, for Q1FY21 is projected at 3.6%, largely unchanged from June policy.
India’s industrial production growth eased to 2% (Y-o-Y) in June 2019 from an upwardly revised 4.6% in the previous month, but above market expectations of 1.5%.
The IHS Markit India Services PMI jumped to 53.8 levels in July 2019, easily beating market consensus of 50.4 levels and pointing to the quickest increase in output in one year, amid a promising government budget and strengthening demand.
IRB Infrastructure Developers Ltd on Tuesday said Singapore’s sovereign wealth fund GIC is investing Rs. 44 billion in its road platform. The investment by GIC includes funding of future construction costs, IRB said in a statement. It will be used for deleveraging the portfolio and equity funding for under-construction projects of the portfolio. Share price of IRB rose by 6%.
Sectoral Indices Trends:
The sectoral indices mostly closed in positive territory during last week. The S&P BSE Bankex, IT and Auto indices had gained by 0.66%, 2.41% and 2.73% respectively. S&P BSE Oil & Gas and PSU declined by -1.45% & -2.20%.
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 declined by 6% during last week. SBI reported net profit of Rs. 23 billion in April-June 2019 period compared with loss of Rs. 49 billion in the same quarter last year. SBI’s profit in June quarter rose on account of lower provisioning for bad loans and higher interest income. Domestic credit growth for bank came in at 11.89% (Y-o-Y) led by both retail as well as high rated corporates. State Bank of India’s asset quality remained stable in the June quarter as its gross NPAs as a percentage of total advances were sequentially unchanged at 7.53% and Net NPAs rose slightly to 3.07% from 3.01% in the previous 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 1.758% against USD, USD/INR pair closed at Rs. 68.86 in the last week.