FIIs/FPIs have bought Indian equity shares worth Rs. 75 billion in September 2019 and sold shares worth Rs. 49 billion in October 2019 (till 12th October 2019).
The Nifty Index futures witnessed fall in open interest by 5% for the October series and rose by 17% for the November series. Implied volatility (IV) fell for put option and call option in the last week. Fall in IV for put option and call option shows steady support for Nifty at present levels.
Most Fed policymakers viewed their interest-rate cut as necessary but were increasingly divided on the next monetary policy steps, amid concerns about escalating trade wars, particularly with China, slowing global growth and other developments such as Brexit, minutes of the September 2019 policy-meeting showed.
The US annual inflation rate was unchanged at 1.7% in September 2019, slightly below market consensus of 1.8%, as a pickup in food inflation was offset by a further decline in energy prices.
Several ECB policymakers opposed the new bond purchases and a multi-tier deposit rate, even as all members reiterated the need for a highly accommodative stance of monetary policy for a prolonged period of time, minutes of the September 2019 policy-meeting showed.
The UK economy grew 0.3% on average in the three months to August 2019, following an upwardly revised 0.1% gain and above market expectations of a 0.1% increase.
The number of Americans filling for unemployment benefits decreased by 10,000 to 210,000 in the week ended 5th October 2019 from the previous week’s upwardly revised level of 220,000 and below market expectations of 15,000.
Stocks of crude oil in the United States increased by 2.927 million barrels in the week ended 04th October 2019, following a 3.1 million gain in the previous week and compared with market expectations of a 1.413 million gain, according to EIA Petroleum Status Report.
Wall Street gained on Friday, as trade negotiations between the US and China resumed and Bloomberg News reported the two sides struck a partial deal. Dow Jones gained by 1%, Nasdaq rose by 0.94% and S&P 500 increased by 0.90%.
European stock markets closed sharply in the green on Friday, the third straight session of gains, bolstered by optimism about US-China trade talks and Brexit. During the week, Dax surged by 4.15% and FTSE gained by 1.29%.
Oil prices closed higher on Friday, after an Iranian tanker near Saudi Arabia suffered damages. During the week, Brent Crude Oil prices rose by 3%.
Sensex and Nifty gained by 1% each during last week. India’s industrial production fell 1.1% (Y-o-Y) in August 2019, following an upwardly revised 4.6% gain in the previous month and missing market expectations of a 1.8% rise. It was the sharpest decline in industrial output since February 2013.
Zee Group promoter holding has been pledged over 90% in the company. In a bid to bring down debt (Rs. 70 billion), the promoter group is open to selling a majority stake in the flagship company.
Maruti Suzuki India reduced its production by 17.48% in September 2019, making it the eighth straight month when the country’s largest car maker lowered its output. The company produced a total of 1,32,199 units in September 2019 as against 1,60,219 units in the year-ago month. India’s passenger vehicle sales slumped 23.7% (Y-o-Y)in September 2019, the eleventh straight month of declines.
Bharti Airtel has raised USD 750 million via perpetual bonds from investors based in Asia, Europe and the US through a hybrid financial instrument. The proceeds shall be used for refinancing, investments in subsidiaries and general corporate purpose. Share price of Bharti Airtel surged by 12% during last week.
Tata Steel India recorded an output of 4.50 million tonne (MT) during Q2FY20 as against 4.30 MT in the corresponding quarter of the previous financial year. Its sales volumes during the quarter, however, took a hit recording 4.14 MT sales as compared to 4.32 in the year-ago quarter. Share price of Tata Steel declined by 1.1% during last week.
Sectoral Indices Trends:
The sectoral indices mostly closed in negative territory during last week. The S&P BSE IT, Oil & Gas and PSU had declined by -0.10%, -1.34% and -1.21% respectively. S&P BSE Bankex and Auto indices gained by 1.35% and 0.02%.
Infosys rise in turnover in Stock Derivatives
Infosys has witnessed rise in open interest in the stock future segment in the last week. Share price of Infosys gained by 3% during last week. Infosys management reported Q2Fy20 results on Friday, net profit declined by 2.2% (Y-o-Y) & gain of 5.8% (Q-o-Q) and in constant currency terms revenue rose by 11.4% (Y-o-Y), in rupee terms revenue rose by 9.8% (Y-o-Y). The company, however, maintained its FY20 operating margin guidance range of 21% -23%. For the quarter ended September 2019, the operating margin came in at 21.7%.
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. Index Futures witnessed slight fall in open interest.
Indian rupee depreciated by 0.140% against USD, USD/INR pair closed at Rs. 70.924 in the last week.