FIIs/FPIs have bought Indian equity shares worth Rs. 123 billion in October 2019 and shares worth Rs. 252 billion in November 2019 (till 22nd November 2019).
The Nifty Index futures witnessed a rise in open interest by 668% for the December series and rose by 210% 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.
The US economy grew by an annualized 2.1% in the third quarter of 2019, compared to an advance estimate of 1.9% and following a 2% expansion in the previous three-month period.
The Manufacturing PMI in China rose to 50.2 levels in November 2019 from 49.3 levels in the previous month and beating market expectations of 49.5 levels.
Industrial production in Japan plunged 4.2% (M-o-M) in October 2019 compared to a 1.7% climb in the previous month and market expectations of a 2.1% decline.
The number of Americans filling for unemployment benefits decreased by 15,000 to 213,000 in the week ended 23rd November 2019 from the previous week’s upwardly revised 228,000 and below market expectations of 221,000.
Stocks of crude oil in the United States increased by 1.572 million barrels in the week ended 22nd November 2019, following a 1.379 million gain in the previous week and against market expectations of a 0.418 million decline, according to EIA Petroleum Status Report.
Wall Street ended in the red as investors refocused on US-China trade tensions after Beijing warned Washington on Thursday that it would take countermeasures in response to US legislation supporting the Hong Kong’s protesters. During the week, Dow Jones gained by 0.63%, Nasdaq surged by 2% and S&P 500 rose by 1%.
Corporate profits in the US increased by USD 23.7 billion, or 1.3% in Q3Fy19 to USD 1,881.2 billion, easing from a 3.7% rise in the previous period, a preliminary estimate showed.
European stock markets closed in the red on Friday, tracking overseas losses amid rising US-China trade tensions. During the week, DAX gained by 0.55% and FTSE rose by 0.26%.
Oil prices continued to decline on Friday, on fresh doubts that the US and China will reach a trade deal. Also, the latest EIA report showed US crude stocks grew unexpectedly by 1.572 million barrels in the latest week while oil production jumped to a record of 12.9 million barrels per day. During the week, price of the Brent Crude Oil declined to USD 62.43/bbl
Sensex gained marginally 0.08% and Nifty declined by 0.11% during last week.
The Indian economy expanded 4.5% (Y-o-Y)in the third quarter of 2019, below 5% in the previous period and market expectations of 4.7%. Figures showed the economy eased for the fifth consecutive quarter and grew at the weakest pace since the first three months of 2013, mainly due to a fall in factory output and exports and a slowdown in investment. The government already announced several measures to boost growth including a reduction in corporate taxes, concessions on vehicle purchases, bank recapitalisation.
India’s fiscal deficit widened to INR 7.2 trillion in April-October 2019-20 from INR 6.49 trillion in the corresponding period of the previous fiscal year. That was equivalent to 102.4% of the government’s budget estimate for this financial year, compared to 103.9% in the same period last year.
India’s infrastructure output declined 5.8% (Y-o-Y) in October 2019, following a downwardly revised 5.1% drop in the previous month. It is the biggest annual fall in infrastructure output since at least 2005.
Sectoral Indices Trends:
The sectoral indices closed in positive territory during last week. The S&P BSE Auto, Bankex, Oil & Gas, PSU and IT had gained by 0.61%, 2.82%, 0.30%, 0.96% and 0.04% respectively.
Indiabulls Housing Finance Witnesses rise in turnover in Stock Derivatives
Indiabulls Housing has witnessed a rise in open interest in the stock future segment in the last week. The share price of Indiabulls Housing Finance gained by 22% during last week. Ministry of Corporate Affairs has informed the Delhi High Court that it is examining the inspection reports of Indiabulls Housing Finance and Indiabulls Venture and has not found an irregularity in loans given to the five companies as alleged by a Public Interest Litigation. This news has led to a surge in the stock price as much as 40% in 3 trading sessions. However, on Friday, management of Indiabulls Housing Finance mentioned that during pendency of the litigation, the company was not being lent money by any bank on the ground it was under scanner of the high court and, as a result, it was unable to lend to anyone leading to its business coming to a standstill. This news caused shares to crash by 15% on Friday.
Indian rupee appreciated by 0.060% against USD, USD/INR pair closed at Rs. 71.74 in the last week.