FIIs/FPIs have bought Indian equity shares worth Rs. 123 billion in October 2019 and shares worth Rs. 144 billion in November 2019 (till 16th November 2019).
The Nifty Index futures witnessed fall in open interest by 2% for the November series and rise by 23% for the December series. Implied volatility (IV) fell for put option and rose for call option in the last week. Fall in IV for put option and rise in IV for call option shows steady support for Nifty at present levels.
Annual inflation rate in the US increased to 1.8% in October 2019 from 1.7% in September 2019 and higher than market expectations of 1.7%.
US industrial output dropped 0.8% from a month earlier in October 2019, following a revised 0.3% fall in September 2019 and compared to market forecasts of a 0.4% decline.
The Euro Area trade surplus rose to EUR 18.7 billion in September 2019 from EUR 12.6 billion in the corresponding month of the previous year and above market expectations of EUR 17.5 billion. Exports climbed 5.2% from a year earlier to EUR 196.2 billion while imports rose at a softer 2.1% to EUR 177.6 billion.
The consumer price inflation in the Euro Area was confirmed at 0.7% in October 2019, down from 0.8% in the previous month and the lowest since November 2016.
China’s industrial production increased by 4.7% (Y-o-Y) in October of 2019, slowing from a 5.8% rise in the previous month and missing market consensus of 5.4%.
China’s annual inflation rose to 3.8% in October 2019 from 3% in the previous month and above market expectations of 3.3%.
The Japanese economy advanced 0.1% (Q-o-Q) in the three months to September 2019, missing market expectations of a 0.2% expansion and following a revised 0.4% growth.
Industrial production in Japan rose by 1.7% (M-o-M) month in September 2019, compared to the preliminary reading of a 1.4% and after a 1.2% fall in the prior month.
The number of Americans filling for unemployment benefits increased by 14,000 to 225,000 in the week ended 9th November from the previous week’s unrevised level of 211,000 and compared with market expectations of 215,000.
Stocks of crude oil in the United States increased by 2.219 million barrels in the week ended 8th November 2019, following a 7.929 million gain in the previous week and compared with market expectations of a 1.649 million gain.
Wall Street closed in green on Friday, as trade talks between US and China kept evolving favourably to nudge major indexes to fresh highs. During the week, Dow Jones gained by 1.17%, Nasdaq rose by 0.80% and S&P 500 increased by 1.30%.
European stock markets closed in green n Friday on the back of optimism over US & China partial trade deal talks. During the week, DAX gained by 0.10% and FTSE declined by 0.76%.
Sensex gained marginally 0.08% and Nifty declined by 0.11% during last week.
Wholesale prices in India rose by 0.16% (Y-o-Y) in October 2019, slowing from a 0.33% gain in the previous month and compared with market expectations of a flat reading. It was the lowest wholesale inflation rate since June 2016.
India’s retail price inflation rate climbed to 4.62% (Y-o-Y) in October 2019, the highest in over a year, from the previous month’s 3.99% and above market expectations of 4.25%. Inflation rose above the Reserve Bank of India’s medium-term target of 4% for the first time since July 2018.
Industrial output in India dropped 4.3% (Y-o-Y) in September of 2019, following an upwardly revised 1.4% decline in August and worse than market expectations of a 2% fall.
The trade deficit in India narrowed to USD 11.01 billion in October of 2019 from an upwardly revised USD 18 billion gap a year earlier. It also came below market forecasts of USD 12.05 billion. Imports slumped 16.3% (Y-o-Y) to USD 37.39 billion. Exports declined 1.1% (Y-o-Y) to USD 26.38 billion.
Sectoral Indices Trends:
The sectoral indices closed in negative territory during last week. The S&P BSE Oil & Gas, Auto and PSU had declined by 0.40%, 0.45% and 0.70% respectively. S&P BSE Bankex & IT indices gained by 0.88% and 0.12% respectively.
SBI Bank Witnesses rise in turnover in Stock Derivatives
SBI Bank has witnessed rise in open interest in the stock future segment in the last week. Share price of SBI Bank gained by 2% during last week. On Friday share price SBI surged by 5% after 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.
Indian rupee appreciated by 0.34% against USD, USD/INR pair closed at Rs. 71.602 in the last week.