FIIs/FPIs have bought Indian equity shares worth Rs. 123 billion in October 2019 and shares worth Rs. 175 billion in November 2019 (till 22nd November 2019).
The Nifty Index futures witnessed fall in open interest by 15% for the November series and rose by 112% for the December series. Implied volatility (IV) rose for put option and fell for call option in the last week. Fall in IV for call option and rise in IV for pull option shows unsteady support for Nifty at present levels.
Global Economy
The Fed considers that the current fed funds rate of 1.5%-1.75% will remain appropriate, as long as incoming information about the economy did not result in a reassessment of the economic outlook, minutes from the last FOMC meeting showed, suggesting no further rate cuts should be expected in the near future.
University of Michigan’s consumer sentiment for the US was revised higher to 96.8 levels from 95.7 levels in November 2019 and compared with 95.5 levels in October 2019. It is the highest reading in four months, nearly close to the average of 97 levels since the start of 2017.
The IHS Markit US Manufacturing PMI rose to 52.2 levels in November 2019 from 51.3 levels in the previous month and beating market expectations of 51.5 levels. The latest reading pointed to the steepest expansion in the factory sector since April 2019.
The IHS Markit Eurozone Manufacturing PMI rose to 46.6 levels in November 2019 from 45.9 levels in the previous month and above market expectations of 46.4 levels. Latest reading pointed to the tenth consecutive contraction in factory activity, as output shrank albeit at a slower pace for the second straight month remaining one of the steepest since early 2013.
The Japan Manufacturing PMI increased to 48.6 levels in November 2019 from a final 48.4 levels in the previous month and compared to market expectations of 48.7 levels. The latest reading pointed to the seventh straight month of contraction in factory activity, with output, new orders and new export orders all falling.
Japan’s consumer price inflation stood at 0.2% (Y-o-Y) in October 2019, unchanged from September 2019 and below market expectations of 0.3%. It remained the lowest inflation rate since February 2019 despite a sales tax hike during the month, with fuel prices falling for the first time in 31 months and cost of transport declining for the 11th straight month.
Japan posted a trade surplus of JPY 17.3 billion in October 2019, shifting from a JPY 456 billion deficit the same month a year earlier but missing market expectations of a JPY 300 billion surplus.
The number of Americans filling for unemployment benefits was unchanged at 227,000 in the week ended 16th November 2019, the highest level since the week ended 22nd June 2019, and compared with market expectations of 219,000.
Stocks of crude oil in the United States increased by 1.379 million barrels in the week ended 15th November 15th, following a 2.219 million gain in the previous week and compared with market expectations of a 1.543 million rise, according to EIA Petroleum Status Report
Global Market
Wall Street closed modestly in the green on Friday after President Trump told Fox News that US is very close to a trade deal with China. During the week, Dow Jones declined by 0.46%, Nasdaq declined by 0.25% and S&P 500 slipped by 0.25%.
European stocks traded in the green on Friday, on the back of a better than expected PMI data for Europe. Also, official data published on Friday showed Germany avoided a recession as the economy grew 0.1% in the third quarter. During the week, DAX declined by 0.60% and FTSE gained by 0.33%.
Indian Market
Sensex gained marginally 0.08% and Nifty declined by 0.11% during last week.
The debt-ridden telecom industry, looking for financial relief from the government, has got a two-year moratorium in making payments for past spectrum auctions. The Union Cabinet onWednesday decidedto defer spectrum payments dues ofthe telco’s for 2020-21 and 2021-22, a move that will offer an estimated Rs 42 billion overall relief to Bharti Airtel, Vodafone Idea and Reliance Jio over the next two years. Vodafone Idea and Bharti Airtel lost over 4.9 million users in September 2019, while rival Reliance Jio added 6.9 million new users to its network. Vodafone Idea and Bharti Airtel, bruised by intense competition to keep prices low, will hike tariffs starting 1st December 2019, the companiessaid in a surprise announcement. The firsttelecom tariff hike in several years follows record second-quarter losses reported by the two operators.
Sectoral Indices Trends:
The sectoral indices closed mostly in negative territory last week. The S&P BSE Auto and IT had declined by 1.56%, 0.45% and 2.52% respectively. S&P BSE Bankex, Oil & Gas and PSU indices gained by 0.16%, 0.01% and 1.26% respectively.
Reliance Witnesses highest rise in turnover in Stock Derivatives
Reliance Witnesses rise in turnover in Stock Derivatives
Reliance has witnessed rise in open interest in the stock future segment in the last week. Share price of Reliance gained by 5% during last week. Shares of telecom services providers Vodafone Idea and Bharti Airtel rallied after they decided to raise tariffs starting next month, Jio also has followed their path on increasing tariffs from 1st December 2019. Also, rumors of Reliance Industries and Sony Corp are in talks to combine their entertainment business has boosted share price of Reliance Industries during last.
SBI has also witnessed rise in open interest in the stock future segment in the last week. Share price of SBI gained by 1% during last week. Supreme Court verdict on Essar Steel insolvency case stating ultimate discretion on distribution of funds is with committee of creditors which consists of banks. Earlier NCLAT mentioned funds would be distributed equally among operational and financial creditors. SC verdict has a positive impact on SBI as the bank has Rs. 130 billion exposure to Essar Steel would be reduced after completion of ArcelorMittal deal of Rs. 420 billion to acquire Essar Steel.
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.
Currency
Indian rupee depreciated by 0.26% against USD, USD/INR pair closed at Rs. 71.79 in the last week.
