FIIs/FPIs have bought Indian equity shares worth Rs. 252 billion in December 2019 and sold shares worth Rs. 0.43 billion in January 2020 (till 10th January 2020).
The Nifty Index futures witnessed a rise in open interest by 12% for the January series and 17% for the February series. Implied volatility (IV) fell for put option and rose for call option in the last week. Rise in IV for call option and fall in IV for put option signifies steady support for Nifty at present levels.
Nonfarm payrolls in the US increased by 145,000 in December 2019 and following a downwardly revised 256,000 rise in the previous month and below market expectations of 164,000. The US unemployment rate held steady at 3.5% in December 2019, remaining at the lowest level since 1969 and in line with market expectations.
The US trade deficit narrowed to USD 43.1 billion in November 2019 from a downwardly revised USD 46.9 billion gap in the previous month. It compares with market expectations of a USD 43.8 billion shortfall.
The ISM Non-Manufacturing PMI for the US increased to 55 levels in December 2019 from 53.9 levels in November 2019, slightly beating market forecasts of 54.5 levels.
Eurozone inflation rate is seen accelerating to 1.3% (Y-o-Y) in December 2019 from 1% in the previous month and in line with market expectation.
China’s annual inflation rate unexpectedly steadied at 4.5% in December 2019, the same as in the previous month and less than market expectations of 4.7%.
The number of Americans filing for unemployment benefits fell by 9,000 to 214,000 in the week ending 4th January 2020, compared to an upwardly revised 223,000 in the previous week and against markets expectations of 220,000 new claims.
Stocks of crude oil in the United States increased by 1.164 million barrels in the week ended 3rd January 2020, after a 11.463 million drop in the previous week and against market expectations of a 3.572 million decline, according to EIA Petroleum Status Report.
Wall Street closed in red on Friday, as macro jobs data disappointed market expectations and also ISM PMI stood at 47.2 levels in December 2019 suggest upcoming weakness in the sector. During the week, Dow Jones rose by 0.66%, Nasdaq increased by 1.75% and S&P 500 gained by 1.50%.
Oil prices edged lower on Friday, as the prospect of open war in the Gulf receded amid issues between Iran and US had cooled down and an unexpected build in US inventories pressured prices further. During the week, price of Brent crude oil fell by 5.25%.
Major markets in Asia broadly advanced on Friday, following another record highs on Wall Street, and softening fears of larger US-Iran conflict. During the week, Nikkei 225 rose by 0.82%, Hangseng gained by 0.66% and Shangai composite increased by 0.26%.
India’s benchmark BSE Sensex and Nifty gained by 0.33% and 0.25% respectively.
Industrial production in India increased 1.8% (Y-o-Y) in November 2019, following an upwardly revised 4% slump in October 2019. Figures beat market forecasts of a 0.6% decline.
HDFC bank’s advances grew by 20% (Y-o-Y) to Rs 9.34 trillion as 31st December 2019 as compared to Rs 7.81 trillion as of 31st December 2018. Share price of HDFC Bank rose by 2.23%.
Infosys reported 8% (Y-o-Y) growth in revenues and 23.7% (Y-o-Y) growth net profit and revised outlook for Fy20 revenues to 10%-10.5% in constant currency.
Avenue Supermart revenue rose by 24% (Y-o-Y), EBITDA surged by 21% (Y-o-Y) and net profit gained by 53% (Y-o-Y).
Sectoral Indices Trends:
The sectoral indices mostly gained during last week. The S&P BSE Oil & Gas, IT and PSU had rose by 0.11%, 1.02% and 1% respectively. S&P BSE Bankex and Auto indices had declined by -1.20% and -0.45% in last week.
SBI continues to witness 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.The share price of SBI gained by 2% during last week. Bharti Airtel also witnessed rise in open interest, share price of Bharti Airtel gained by 1% during last week. Airtel had launched QIP offer worth USD 2 billion at a floor price of Rs. 452 and a sperate foreign currency convertible bonds issue (FCCBs) for raising another USD 1 billion. The company proposes to utilize the net proceeds for any payments that may be required to be made arising out of the judgment of the Supreme Court of India delivered on relation to a long outstanding industry-wide case in respect of the definition of adjusted gross revenue.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown a rise in the open interest across Stock Options, Stock Futures, Index Option, and Index Futures on a week on week basis.
Indian rupee depreciated by 0.5% against USD, USD/INR pair closed at Rs. 70.96 in the last week.