FIIs/FPIs have sold Indian equity shares worth Rs. 175 billion in August 2019 and shares worth Rs. 42 billion in September 2019 (till 06th September 2019).
The Nifty Index futures witnessed fall in open interest by 2% for the September series and rose by 15% for the October 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.
Nonfarm payrolls in the US increased by 130,000 in August 2019, following a downwardly revised 159,000 in July 2019 and below market expectations of 158,000. The US unemployment rate came in at 3.7% in August 2019, unchanged from the previous two month’s figures and in line with market expectations.
The ISM Non-Manufacturing PMI for US rose to 56.4 levels in August 2019 rebounding from a three-year low of 53.7 levels in the previous month and beating market consensus of 54 levels.
The US trade deficit narrowed slightly to USD 54 billion in July 2019 from a revised USD 55.5 billion in the previous month and compared to market expectations of USD 53.5 billion. Exports rose 0.6% while imports fell 0.1%.
The IHS Markit Eurozone Services PMI rose to 53.5 levels in August 2019 from 53.2 levels in July 2019 and above a preliminary reading and market consensus of 53.4 levels.
China’s trade surplus widened to USD 34.83 billion in August 2019 from USD 26.30 billion in the same month a year earlier and compared to market expectations of a USD 43 billion surplus. Exports declined unexpectedly by 1% to USD 214.80 billion, while imports fell at a faster 5.6% to USD 179.97 billion.
The number of Americans filling for unemployment benefits increased by 1,000 to 217,000 in the week ended 31st August 2019 from the previous week’s revised level of 216,000 and compared with market expectations of 215,000.
Stocks of crude oil in the United States decreased by 4.771 million barrels in the week ended 30th August 2019, after a 10.027 million plunge in the previous week and compared with market expectations of a 2.488 million drop.
Wall Street traded mixed on Friday following two sessions of solid gains, as the US economy added 130,000 jobs in August 2019 to fall short of expectations and to leave the jobless rate steady at 3.7%, while wages grew more than expected (0.4% MoM & 3.2% YoY). During the week, Dow Jones increased by 1.49%, Nasdaq gained by 1.77% and S&P 500 rose by 1.42%.
Sensex and Nifty declined by 094% and 0.70% respectively during last week.
The IHS Markit India Services PMI dropped to 52.4 levels in August 2019 from 53.8 levels in the previous month but beating market consensus of 51.9 levels. The latest reading pointed to the second straight month of expansion in the service sector, amid sustained increases in activity, sales and employment. On the price front, input prices continued to increase, boosted by higher food, fuel and staff costs, while the rate of charge inflation quickened to a 17-month high.
Growth of eight core industries dropped to 2.1% in July 2019, a sharp fall compared to the growth rate of 7.3% in the year-ago period. This has been mainly due to a contraction in coal, crude oil, natural gas and refinery products.
Sectoral Indices Trends:
The sectoral indices mostly closed in positive territory during last week. The S&P BSE IT, Oil & Gas, PSU and Auto indices had gained by 0.65%, 1.56%, 2.06% and 1.20% respectively. S&P BSE Bankex declined by -1.01%.
Reliance Industries Witnesses rise in turnover in Stock Derivatives
Reliance Industries has witnessed rise in open interest in the stock future segment in the last week. Share price of Reliance Industries declined by 2% during last week. Company has announced new Gigafiber plans for Indian broadband users. Jio is targeting 20 million homes and 16 million enterprises across 1,600 towns and aims to complete the roll-out in 12-18 months. On the other hand, Bharti Airtel has a current subscriber base of 2.3 million and 10 million home pass. Also, Reliance Industries is planning to go through a structural change and has plans of reducing debt from balance sheet.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown rise in the open interest across Stock Options, Index options and Stock futures on a week on week basis. However, Index Futures witnessed fall in open interest.
Indian rupee depreciated by 0.26% against USD, USD/INR pair closed at Rs. 71.64 in the last week.