FIIs/FPIs have bought Indian equity shares worth Rs. 252 billion in November 2019 and bought shares worth Rs. 63 billion in December 2019 (till 27th December 2019).
The Nifty Index futures experienced a rise in open interest by 274% for the January series and 152% for the February series. Implied volatility (IV) rose for call option and for put option in the last week. Rise in IV for put option and for call option signifies unsteady support for Nifty at present levels.
Profits earned by China’s largest industrial firms dropped by 2.1% to CNY 5.61 trillion in the first 11 months of 2019, following a 2.9% fall in January-October. Profits at state-owned industrial firms slumped 11.2% while those at private firms rose 6.5%.
Industrial production in Japan declined 0.9% (M-o-M) in November 2019, compared to a 4.5% fall in the previous month and market expectations of a 1.4% decline, preliminary data showed.
The number of Americans filling for unemployment benefits decreased by 13,000 to 222,000 in the week ended 21st December 2019 from the previous week’s upwardly revised 235,000 and compared with market expectations of 224,000.
Stocks of crude oil in the United States dropped by 5.474 million barrels in the week ended 20th December 2019, following a 1.085 million decrease in the previous week and compared with market expectations of a 1.724 million fall, according to EIA Petroleum Status Report.
Wall Street closed mixed on Friday with the Dow Jones booking a fresh record, S&P closing flattish and Nasdaq fell from all-time highs. On the macro side, China’s industrial profits rebounded in November and climbed 5.4% on an annual basis after falling a sharp 9.9% in October 2019, boosting sentiment on the state of the global economy. During the week, Dow Jones rose by 0.70%, Nasdaq increased by 1% and S&P 500 gained 0.52%.
European stock markets closed slightly higher on Friday, boosted by hopes of a truce in the 17-month US-China trade war. Investor’s sentiment was also lifted after the latest data showed Chinese industrial profits rose the most in eight months. During the week, DAX increased by 0.14% and FTSE increased by 0.83%.
During the week, the price of the Brent Crude Oil declined by 6.68% to USD 61.72.
India’s benchmark BSE Sensex and Nifty rose 1% on Friday, led by financial stocks after the RBI announced a second special OMO auction. Also, trade optimism continued to support sentiment across the globe on hopes a US-China trade deal would soon be signed.
Future Retail scaled down the level of shares pledged with banks and financial institutions last week after repaying loans of about Rs 15 billion. This has brought down the total number of pledged shares as a percentage of total shares of the company from 36% to 26.8%. The money from the Amazon deal and the conversion of Future Coupons’ warrants into equity are expected to bring about Rs 20 billion into Future Retail and the funds will be used to reduce the flagship company’s debt further.
Dilip Buildcon Ltd management said it has bagged a Rs 13.62 billion road project in Uttar Pradesh. The share price of Dilip Buildcon declined by 4%.
Sectoral Indices Trends:
The sectoral indices mostly gained last week. The S&P BSE Bankex, Auto and PSU had risen by 0.28%, 1.02%, and 0.67% respectively. S&P BSE Oil and IT indices had declined by 0.46% and -0.27% in last week.
SBI continues to witness a 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 with open interest surged by 43% from the previous week. The share price of SBI rose by 1% 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.
Reliance Industries also witnessed a rise in open interest in the stock future segment in the last week. Its share price fell by 5% last week.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown a fall in the open interest across Stock Options, Stock Futures, Index Option, and Index Futures on a week on week basis.
Indian rupee depreciated by 0.324% against USD, USD/INR pair closed at Rs. 71.29 in the last week.