FIIs/FPIs have bought Indian equity shares worth Rs. 75 billion in September 2019 and shares worth Rs. 49 billion in October 2019 (till 18th October 2019).
The Nifty Index futures witnessed fall in open interest by 7% for the October series and rose by 37% 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.
US industrial output dropped 0.4% from a month earlier in September 2019, following an upwardly revised 0.8% gain in August 2019 and compared with market consensus of a 0.1% fall. That was the sharpest decline in industrial output since April 2019.
The Chinese economy advanced 6% (Y-o-Y) in the September quarter of 2019, slowing from a 6.2% expansion in the previous quarter and compared with market expectations of 6.1%. It was the weakest growth rate since the first quarter of 1992, amid persistent trade tensions with the US, weakening global demand and alarming off-balance-sheet borrowings by local governments.
China’s industrial production increased by 5.8% (Y-o-Y) in September 2019, after a 4.4% rise in the previous month and beating market consensus of 5%. Industrial capacity utilization rate in China stood at 76.4% inQ3fy19, unchanged from the previous quarter.
Japan’s consumer price inflation fell to 0.2% (Y-o-Y) in September 2019 from 0.3% in the previous month and well below market expectations of 0.4%. It was the lowest inflation rate in seven months, mainly pushed down by lower gasoline prices.
The Euro Area current account surplus narrowed to EUR 25.7 billion in August 2019 from EUR 29.6 billion in the corresponding month of the previous year and compared with market expectations of a EUR 17.6 billion surplus.
The number of Americans filling for unemployment benefits increased by 4,000 to 214,000 in the week ended 12th October 2019 from the previous week’s unrevised level of 210,000 and compared with market expectations of 215,000.
Stocks of crude oil in the United States increased by 9.281 million barrels in the week ended October 11th 2019, following a 2.927 million gain in the previous week and compared with market expectations of a 2.878 million gain.
Wall Street traded lower on Friday, as the Chinese economy grew by 6% in the third quarter to book a low since 1999, while earnings season continued with mixed results. Despite global growth concerns and declines mostly nudged by tech shares, indexes closed the week in green. During the week, Dow Jones declined by 0.20%, Nasdaq rose by 0.40% and S&P 500 increased by 0.70%.
European stock markets closed in red on Friday, amid Brexit uncertainty and global growth concerns. Investors fear that UK PM Johnson would not secure approval from British MPs in a vote on his new Brexit deal on Saturday while weaker-than-expected Chinese GDP growth brought back concerns over outlook of the global economy. During the week, Dax surged by 1% and FTSE declined by 1.34%.
The Shanghai Composite index slumped by 1.3% on Friday, its steepest daily drop in a month, after latest data showed Chinese economy slowed more than expected in the third quarter and posted its weakest pace of growth in near three decades.
Oil prices slumped on Thursday after latest EIA data showed US crude stockpiles increased more-than-expected. Prices were already under pressure due to concerns over global growth. During the week, Brent crude oil prices declined by 1.2%.
Sensex and Nifty gained by 3% each during last week.
Berger Paints India is acquiring Kolkata-based STP Ltd (STPL), makers of construction and related materials for an enterprise value of Rs 1.6 billion. Berger Paints said the acquisition will supplement its businesses relating to manufacturing, selling, and product distribution and procurement.
Blue Star said the company is putting in place new strategies to achieve 15% market share (which currently has a 12.5% market share) in the air-conditioning segment by the end of FY 2024. In order to achieve the target, company is planning to penetrate deeper across the country by doubling its outlets from the current 5,000 enhancing its share of trade in e-commerce from current 5% to 25%.
Sectoral Indices Trends:
The sectoral indices mostly closed in positive territory during last week. The S&P BSE Bankex, Oil & Gas, Auto and PSU had gained by 3.68%, 5%, 8% and 6% respectively. S&P BSE IT index declined by 0.10%.
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 5% during last week. Reliance management reported Q2Fy20 results on Friday, net profit gained by 18% (Y-o-Y) & 11.50% (Q-o-Q) and consolidated revenue rose by 3.63% (Y-o-Y) to Rs. 1.48 trillion. Increase in revenue on yearly basis is primarily on account of robust growth in retail & digital services businesses which grew by 27% and 43%, respectively. This was partially offset by decrease in refining and petrochemicals segment revenue with 17.7% due to fall in Brent crude price.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown rise in the open interest across Stock Options and Index options on a week on week basis. Index and Stock Futures witnessed slight fall in open interest.
Indian rupee depreciated by 0.234% against USD, USD/INR pair closed at Rs. 71.09 in the last week.