FIIs/FPIs have bought Indian equity shares worth Rs. 252 billion in November 2019 and sold shares worth Rs. 16.7 billion in December 2019 (till 06th December 2019).
The Nifty Index futures witnessed a fall in open interest by 2% for the December series and rose by 12% for the January series. Implied volatility (IV) rose for call option and fell for put option in the last week. Fall in IV for put option and rise in IV for call option implies steady support for Nifty at present levels.
Nonfarm payrolls in the US increased by 266,000 in November 2019, following an upwardly revised 156,000 rise in the previous month and easily beating market expectations of 180,000 . It was the largest advance in payrolls since January 2019. US unemployment rate decreased to 3.5% in November 2019 from 3.6% in the previous month while markets had expected it to be unchanged at 3.6% .
The US trade deficit narrowed to USD 47.2 billion in October 2019 from a downwardly revised USD 51.1 billion in the previous month, and below market expectations of a USD 48.7 billion. It is the lowest trade gap since May of 2018. Imports slumped 1.7% to the lowest value in two years amid falling purchases of pharmaceutical preparations, auto parts, vehicles and cell phones Exports edged down 0.2%.
The Eurozone quarterly economic growth was confirmed at 0.2% in the third quarter of 2019, the same as in the previous three-month period, the final estimate showed.
The number of Americans filling for unemployment benefits decreased by 10,000 to 203,000 in the week ended 30th November 2019 from the previous week’s unrevised level of 213,000 and compared with market expectations of 215,000.
Stocks of crude oil in the United States dropped by 4.856 million barrels in the week ended 29th October 2019, after a 1.572 million gain in the previous week and compared with market expectations of a 1.734 million fall, according to EIA Petroleum Status Report.
Wall Street extended gains on Friday, as US hiring strengthened in November 2019. Employment data showed the economy added 266,000 jobs, easily beating expectations of 180,000. During the week, Dow Jones fell by 0.13%, Nasdaq decreased by 0.10% and S&P 500 closed on a flat note.
Asian markets closed in green on Friday amid improvement in trade talks between US and China. Investors are expecting a trade deal before the deadline of fresh tariffs which would be coming in on from 15th December 2019. During the week, Nikkei 225 rose by 0.26%, Hangseng increased by 0.60%, Shangai Composite gained by 1.43% and Kospi declined by 0.24%.
European stock markets closed on a positive note on Friday, better than expected US job growth data had improved market sentiment. During the week, DAX declined by 0.53% and FTSE fell by 1.44%.
OPEC and allies agreed to curb oil production by an extra 500,000 barrel per day in the first quarter of 2020 to take the total to 1.7 million barrels per day. During the week, price of the Brent Crude Oil gained by 3% to USD 64.39.
Sensex & Nifty declined by 0.85% and 1.12% respectively during last week.
RBI kept the policy repo rate unchanged at 5.15% and reverse repo rate at 4.90%. RBI decided to maintain the accommodative stance. CPI inflation projection is revised upwards to 5.1-4.7% for H2FY20 and 4.0-3.8% for H1FY21, with risks broadly balanced. Real GDP growth for FY20 is revised downwards from 6.1% in the October policy to 5.0% – 4.9-5.5% in H2 and 5.9-6.3% for H1FY21.
The IHS Markit India Services PMI rose to 52.7 levels in November 2019 from 49.2 levels a month earlier, easily beating market expectations of 49.8 levels. New business growth picked up to a 4 month high, with export sales advancing for the 9 month in a row, and employment rose the most in 3 months.
YES bank announced a fundraising plan of USD 2 billion through a preferential allotment, subject to approved by regulators. Of the potential USD 2 billion investment, USD 1.8 billion is coming in from family offices, majorly coming from SPG Holding & Citax Holding and rest USD 200 million from Institutional Investors. Moody’s rating agency had downgraded bank’s long term foreign currency bonds to B2 from Baa3. During last week, share price of YES Bank declined by 18%.
Sectoral Indices Trends:
The sectoral indices closed mostly in negative territory during last week. The S&P BSE Auto, Bankex, Oil & Gas and PSU had declined by 3.35%, 1.22%, 3.33% and 4.41% respectively. BSE S&P IT index had gained by 2.02% in last week.
SBI Witnesses rise in turnover in Stock Derivatives
SBI has witnessed a rise in open interest in the stock future segment in the last week. The share price of SBI declined by 7% during last week. SBI management is planning to reduce stake in UTI AMC from 18% to 10% through an offer for sale in the coming year. Also, SBI is planning to come out with an IPO of SBI credit cards.
Reliance Industries also witnessed rise in open interest in the stock future segment in the last week. The share price of Reliance Industries declined by 3% during last week. Reliance Jio Infocomm raised its tariffs by nearly 40%, but some of its plans are almost 25% cheaper than those of rivals Bharti Airtel and Vodafone Idea.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown a rise in the open interest across Stock Options, Index Futures, and Index options on a week on week basis. Stock Futures witnessed a decline in open interest during last week.
Indian rupee appreciated by 0.72% against USD, USD/INR pair closed at Rs. 71.22 in the last week.