FIIs/FPIs have bought Indian equity shares worth Rs. 123 billion in October 2019 and shares worth Rs. 64 billion in November 2019 (till 8th November 2019).
The US trade deficit narrowed to USD 52.5 billion in September from USD 55 billion in the previous month, matching market expectations. It is the lowest trade gap since April 2019 as imports from Germany and China declined and US reported first petroleum surplus since 1978.
China’s trade surplus widened to USD 42.81 billion in October 2019 from USD 32.97 billion in the same month a year earlier and above market expectations of a surplus of USD 40.83 billion. This was the largest trade surplus since July, as exports declined 0.9% (Y-o-Y) to USD 212.93 billion, while imports dropped at a faster 6.4% to USD 170.12 billion.
China’s annual inflation rose to 3.8% in October 2019 from 3% in the previous month and above market expectations of 3.3%. This was the highest inflation rate since January 2012.
The Bank Japan Services PMI was at 49.7 levels in October 2019, lower than the flash figure of 50.3 levels and compared to a final 52.8 levels in September. This marked the first contraction in the service sector since June 2016 on the back of consumption tax rise.
The IHS Markit Eurozone Services PMI was revised higher to 52.2 levels in October 2019 from a preliminary estimate of 51.8 levels and compared to September 2019 final 51.6 levels.
The number of Americans filling for unemployment benefits decreased by 8 thousand to 211,000 in the week ended 2nd November 2019 from the previous week’s revised level of 219,000 and compared with market expectations of 215,000.
Stocks of crude oil in the United States increased by 7.929 million barrels in the week ended 01st November 2019, following a 5.702 million gain in the previous week and compared with market expectations of a 1.515 million gain.
US stocks were little changed on Friday amid fears that Washington and Beijing may not be close to signing their phase one deal after President Donald Trump said he had not agreed to roll back existing tariffs. During the week, Dow Jones gained by 1.2%, Nasdaq rose by 1.06% and S&P 500 increased by 0.50%.
European stock markets closed in red on Friday after President Donald Trump mentioned that US won’t roll back existing tariffs, raising concerns that a trade deal between the world’s largest economies might not be reached has spooked investors sentiment. During the week, DAX surged by 2.10% and FTSE rose by 0.80%.
Oil prices closed lower due to on-going trade war deal uncertainty between US & China has again caused speculations over revival in global growth and more than expected increase in US crude oil inventory has also put downward pressure on Brent crude oil prices. Prices of Brent Crude Oil gained by 1.40%.
Sensex and Nifty decreased as much as 1% on Friday, down from new record highs reached earlier in the session, after Moody’s Investors Service changed India’s sovereign credit rating outlook to negative from stable and cited growth concerns. During the week, Sensex and Nifty gained by 0.15% and 0.40% respectively.
NMDC reported a rise in cumulative sales of iron ore up in October 2019 to 17.14 metric tonne against 16.54 metric tonne in October 2018, even though the company’s monthly sales dropped in October 2019 to 2.61 metric tonne against 3.06 metric tonne in October 2018.
Suzuki Motor has revised the FY20 sales forecast of its Indian subsidiary Maruti Suzuki and said sales will plunge upto 20% on back of a dismal first half performance. The Japanese carmaker had earlier projected a 4% growth. The Japanese parent is estimating a 13.2% decline in volumes for the full year despite a mild recovery by its Indian arm in October 2019.
Sectoral Indices Trends:
The sectoral indices closed in negative territory during last week. The S&P BSE Oil & Gas, Auto, IT and PSU had declined by 2.97%, 2.37%, 0.24% and 3.01% respectively. S&P BSE Bankex index gained by 1.84%.
SBI Witnesses highest rise in turnover in Stock Derivatives
The Nifty Index futures witnessed fall in open interest by 9% for the November series and rose by 10% 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.
ICICI Bank Witnesses rise in turnover in Stock Derivatives
ICICI Bank has witnessed rise in open interest in the stock future segment in the last week. Share price of ICICI Bank gained by 5% during last week. Last week, ICICI Bank decided to shut project finance vertical which basically funds infrastructure, power, ports and mining projects. Rationale behind shutting down project finance vertical is mainly due to lower demand and higher rate of defaults in repaying interest & principal by borrowers. This move also helps balance sheet of ICICI Bank going forward in terms of reducing chunky loan exposures.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown rise in the open interest across Stock Options, Stock Futures Index Futures and Index options on a week on week basis.
Indian rupee depreciated by 0.848% against USD, USD/INR pair closed at Rs. 71.36 in the last week.