FIIs/FPIs have bought Indian equity shares worth Rs. 252 billion in December 2019 and sold shares worth Rs. 5 billion in January 2020 (till 03rd January 2020).
The Nifty Index futures witnessed a fall in open interest by 2% for the January series and 3% for the February series. Implied volatility (IV) rose for put option and fell for call option in the last week. Rise in IV for put option and fall in IV for call option signifies unsteady support for Nifty at present levels.
Federal Reserve officials agreed that the current interest rate stance is likely to remain unchanged for a period of time, despite raising concerns that low interest rates could exacerbate imbalances in the financial sector, minutes of the December policy meeting showed.
The IHS Markit US Manufacturing PMI was revised slightly lower to 52.4 levels from 52.5 levels in December 2019. It compares with 52.6 levels in the previous month. Output and new business expanded modestly while employment growth was the second-fastest since May 2019.
The IHS Markit Eurozone Manufacturing PMI was revised higher to 46.3 levels in December 2019 from a preliminary of 45.9 levels and 46.9 levels seen in November 2019.
The number of Americans filling for unemployment benefits edged down by 2,000 to 222,000 in the week ended 28th December 2019 from the previous week’s revised level of 224,000 and compared with market expectations of 225,000.
Stocks of crude oil in the United States decreased by 11.463 million barrels in the week ended 27th December 2019, after a 5.474 million plunge in the previous week and compared with market expectations of a 3.288 million drop. It was the biggest fall in oil inventories since the week ended 21st June 2019, according to EIA Petroleum Status Report.
Wall Street closed in the red and pulled back from records on Friday after President Trump ordered an airstrike on Iraq that killed Iranian general Qassem Soleimani. Also, the ISM Manufacturing PMI came well below market expectations and was the lowest in 10 ½ years. During the week, Dow Jones declined by 0.04%, Nasdaq increased by 0.16% and S&P 500 declined 0.40%.
Oil prices soared more than 4% and hit the highest since May 2019 on Friday, right after the Pentagon confirmed an Iranian Commander was killed during an air strike at the Baghdad International Airport on Trump’s orders, raising concerns of an oil supply disruption in the Middle East. During the week, price of the Brent Crude Oil gained by 11% to USD 68.60.
Gold prices touched 4 months high on Friday as the risk aversion of the global investors had changed buoyed by recent Middle East tensions after a senior Iranian military official was killed in a US air strike. During the week, Gold prices gained by 3%.
India’s benchmark BSE Sensex and Nifty declined by 0.27% and 0.16% respectively.
The IHS Markit India Manufacturing PMI rose to a seven-month high of 52.7 levels in December 2019 from 51.2 levels in the prior month.
India’s current account deficit narrowed sharply to USD 6.3 billion in the July to September 2019 from USD 19 billion in the same period last year.
India’s fiscal deficit widened to Rs. 8.08 trillion in April-November 2019-20 from Rs. 7.17 trillion in the corresponding period of the previous fiscal year. That was equivalent to 114.8% of the government’s budget estimate for this financial year.
India’s infrastructure output dropped 1.5% from a year earlier in November 2019, following a 5.8% contraction in the previous month.
Foreign reserves in India increased to an all-time high of USD 457.468 billion in the week ended 27th December 2019. Foreign currency assets went up to USD 424.94 billion from USD 422.73 billion in the previous week and gold reserves also increased to USD 27.39 million from USD 27.13 billion.
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 with open interest surged by 43% from previous week. The share price of SBI declined by 1% during 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 rise in open interest in the stock future segment in the last week. Its share price gained by 1% during last week.
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 0.07% against USD, USD/INR pair closed at Rs. 71.34 in the last week.