FIIs/FPIs have bought Indian equity shares worth Rs. 252 billion in November 2019 and sold shares worth Rs. 14.22 billion in December 2019 (till 13th December 2019).
The Nifty Index futures witnessed a rise in open interest by 5% for the December series and 112% 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 Federal Reserve left the target range for its federal funds rate unchanged at 1.5-1.75% with indicating no plans to change rates in 2020. The decision came in line with market expectations.
The US annual inflation rate rose to 2.1% in November 2019 from 1.8% in the previous month and above market consensus of 2.0%. That was the highest rate since November 2018, as food inflation was little-changed while energy prices dropped at a much slower pace. The core inflation rate, which excludes volatile items such as food and energy, was unchanged at 2.3%.
US retail sales rose less than expected 0.2% in November 2019 as Americans cut back on discretionary spending, which could see economists dialing back economic growth forecasts for the fourth quarter.
The ECB left its key interest rates and stimulus package unchanged with the main refinancing rate remaining at 0% and the deposit rate at -0.5%. Policymakers said they expect interest rates to remain at their present or lower levels until the inflation outlook converges to their target.
Industrial production in the Eurozone contracted by 2.2% from a year earlier in October 2019, following a revised 1.8 percent fall in the previous month and compared to market expectations of a 2.3% decline.
Stocks of crude oil in the United States increased by 0.822 million barrels in the week ended December 6th, 2019, after a 4.856 million drop in the previous week and against market expectations of a 2.763 million decline, according to EIA Petroleum Status Report.
Wall Street posted a marginal gain on Friday in the eve of US and China is close to signing the first phase of the trade deal. During the week, Dow Jones rose by 0.43%, Nasdaq increased by 0.90% and S&P 500 gained 0.73%.
Asian markets experienced robust bullish rally driven by imminent development in trade talks between US and China. During the week, Nikkei 225 rose by 2.86%, Hangseng increased by 4.49%, Shangai Composite gained by 1.89% and Kospi advanced by 4.23%.
European stock markets closed on a positive note on Friday aligned with the global market. During the week, DAX increased by 0.89% and FTSE increased by 1.56%.
During the week, the price of the Brent Crude Oil gained by 1.29% to USD 64.39.
Sensex & Nifty rose by 1.39% each last week.
Consumer Price Index rose to 3- year high of 5.54% in November from 4.62% in the previous month driven by higher food prices.
Index of Industrial Production contracted by 3.8% in October 2019 from 4.3% of contraction in the previous month. October manufacturing showed output degrowth of 2.1% and mining output at (-) 8% against (-) 8.5% in September.
India’s trade deficit in November narrowed to $12.12 billion as against the deficit of $17.58 billion a year before. Oil imports at $11.06 billion were 18.17% lower compared to $13.52 billion in November 2018. Cumulatively, the trade deficit for April-November 2019 is estimated at $54.06 billion as compared to $82.47 billion in April-November 2018.
Sectoral Indices Trends:
The sectoral indices gained last week except for IT index. The S&P BSE Auto, Bankex, Oil & Gas and PSU had risen by 3.4%, 2.08%, 1.56%, and 1.73% respectively. BSE S&P IT index had declined by 1.11% in last week.
SBI continues to witness the highest rise in turnover in Stock Derivatives
SBI has continued to witness a rise in open interest in the stock future segment in the last week although open interest fell by 2% from the previous week. The share price of SBI rose by 4% last week. RBI detected bad loan divergence of Rs 119.32 billion made by SBI during FY19. Consequently, gross NPAs of SBI as detected by RBI rose to Rs 1.85 trillion for the period from Rs 1.73 trillion as reported earlier.
Axis Bank also witnessed rise in open interest in the stock future segment in the last week. Its share price rose by 5% last week.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown a rise in the open interest across Stock Options, Index Option, and Index Futures on a week on week basis. Stock Futures open interest remained flat during last week.
Indian rupee depreciated by 0.62% against USD, USD/INR pair closed at Rs. 70.78 in the last week.