FIIs/FPIs have sold Indian equity shares worth Rs. 175 billion in August 2019 and bought shares worth Rs. 78 billion in September 2019 (till 27th September 2019).
The Nifty Index futures witnessed rise in open interest by 187% for the September series and rose by 63% for the October series. Implied volatility (IV) rose for put option and fell for call option in the last week. Rise in IV for put option and fall in IV for call option shows unsteady support for Nifty at present levels.
The US economy grew by an annualized 2% in Q2Fy19, unrevised from the second estimate and following a 3.1% expansion in the previous three-month period.
Corporate profits in the United States increased by USD 66.1 billion, or 3.7% in Q2Fy19, to USD 1,857.5 billion, rebounding from a 4.1% fall in the previous period, and below a preliminary estimate of a 5.1% gain.
The IHS Markit US Services PMI went up to 50.9 levels in September 2019 from 50.7 levels in the previous month but well below market expectations of 51.3 levels, preliminary estimates showed. It is one of the lowest readings seen over the past three-and-a-half years, as new orders rose the least since the survey began in October 2009.
Japan Manufacturing PMI declined to a seven-month low of 48.9 levels in September 2019 from a final print of 49.3 levels in August 2019, preliminary data showed. New orders declined at a weaker pace, as new export orders were dragged by international trade dynamics, with both exports and imports falling at a double-digit pace in the last month.
Profits earned by China’s largest industrial firms dropped by 1.7% (Y-o-Y) to CNY 4.01 trillion in the first eight months of 2019, the same pace as in January-July. Profits at state-owned industrial firms declined 8.6%, while those at private firms rose 6.5%.
The number of Americans filling for unemployment benefits increased by 3,000 to 213,000 in the week ended 21st September 2019 from the previous week’s revised level of 210,000 and compared with market expectations of 212,000.
Stocks of crude oil in the United States increased by 2.412 million barrels in the week ended 20th September 2019, following a 1.058 million gain in the previous week and against market expectations of a 0.249 million decline.
Wall Street closed in the red on Friday, as the White House is considering limiting investment in China and the US scheduled trade talks in Washington in October 2019. Meanwhile, US consumer spending slowed more than expected in August 2019, booking the weakest reading since February 2019. During the week, Dow Jones declined by 0.43%, Nasdaq fell by 1% and S&P 500 down by 0.72%.
European stock markets closed in the green on Friday, amid hopes that US and China will resolve their trade dispute at next month’s trade talks and expectations of looser monetary policy in the UK. During the week, Dax declined by 0.41% and FTSE gained by 1%.
Oil prices edged lower on Friday, amid concerns of slowing global demand growth and a faster than expected recovery in Saudi oil production. Also, the International Energy Agency said on Friday it might cut its growth forecasts for global oil demand for 2019 and 2020. During the week, Brent Crude Oil prices fell by 3.69%.
Sensex and Nifty gained by 2% each during last week.
Many companies have stopped expansion plans after the corporate tax for new companies has been pegged at 15%. The reason being that instead of investing directly, if a separate entity is formed for the same investment, there could be a tax arbitrage of about 10%.
Sectoral Indices Trends:
The sectoral indices mostly closed in positive territory during last week. The S&P BSE Bankex, Oil & Gas and PSU had gained by 3.54%, 5% and 0.25% respectively. S&P BSE IT and Auto indices declined by -1.71 and 1%.
Reliance Industries 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 gained by 4.60% during last week. Rumours about buying fashion and child-focused retailers abroad and partnering with global sports & beauty brands as part of its expansion into consumer markets has increased open interest in Reliance Industries.
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 0.127% against USD, USD/INR pair closed at Rs. 71.075 in the last week.