FIIs/FPIs have bought Indian equity shares worth Rs. 252 billion in December 2019 and sold shares worth Rs. 102 billion in January 2020 (till 17th January 2020).
The Nifty Index futures witnessed a rise in open interest by 2% for the January series and 6% for the February series. Implied volatility (IV) fell for put option and call option in the last week. Fall in IV for call option and for put option signifies steady support for Nifty at present levels.
The US consumer price inflation rate climbed to 2.3% (Y-o-Y) in December 2019 from 2.1% in the previous month and in line with market consensus.
Industrial production in the US dropped 0.3% from a month earlier in December 2019, following a downwardly revised 0.8% growth in November and compared to market expectations of a smaller 0.2% decline.
Eurozone inflation rate was confirmed at 1.3% (Y-o-Y) in December 2019, the highest level since June 2019.
The Euro Area current account surplus widened to 36.6 billion Euros in November of 2019 from 31.8 billion Euros in the corresponding month of the previous year.
Industrial production in the Euro Area fell 1.5% from a year earlier in November 2019, following an upwardly revised 2.6% decline in October 2019 and compared with market expectation of 1.1% decrease.
The Chinese economy advanced 6% (Y-o-Y) in December quarter of 2019, the same as in the previous quarter and matching market expectations.
China’s industrial production rose 6.9% (Y-o-Y) in December 2019, accelerating from a 6.2% increase in the previous month and easily beating market consensus of 5.9%.
Industrial capacity utilization rate in China rose to 77.5% in Q4Fy19 the highest in two years, from 76.4% in the prior quarter.
The number of Americans filing for unemployment benefits fell by 10,000 to 204,000 in the week ending 11th January 2020 compared to 214,000 in the previous week and against markets expectations of 216,000 new claims. It was the fourth consecutive week of decreases in jobless claims.
Stocks of crude oil in the United States dropped by 2.549 million barrels in the week ended 10th January 2019, after a 1.164 million decrease in the previous week and compared with market expectations of a 0.474 million fall.
Wall Street closed in green to book fresh records on Friday, Alphabet became the fourth company to hit a trillion-dollar market cap. Meanwhile, Boeing shares fell by 2.5% after announcing the discovery of a new software issue with the 737 Max. During the week, Dow Jones rose by 1.82%, Nasdaq increased by 2.30% and S&P 500 gained by 1.77%.
Most stock markets in Asia closed in green on Friday after official data showed Chinese economy grew 6% (Y-o-Y) in Q4Fy19, matching market expectations. For full 2019, the economy advanced 6.1% (Y-o-Y), the slowest pace in 29 years but remaining within the government’s target of 6 to 6.5%. During the week, Nikkei 25 rose by 0.80%, Hangseng increased by 1.50% and Shangai Composite fell by 0.55%.
The Baltic index, which measures the cost of shipping goods around the world, slumped nearly 21% since the beginning of 2020 pressured by weaker demand for all vessel categories.
India’s benchmark BSE Sensex and Nifty gained by 0.33% and 0.25% respectively.
Retail inflation surged to an over 5 year high in December 2019 on the back of rising food prices, breaching the RBI’s limit of 6%. Consumer price index rose to 7.35% in December 2019, against 5.54% in the previous month and 2.18% in December 2018.
India’s trade deficit narrowed to USD 11.25 billion in December 2019 from USD 14.5 billion in the same month a year ago. It came below market expectations of a USD 11.8 billion gap. Imports fell 8.8% (Y-o-Y) to USD 38.61 billion, the 7th straight drop.
Vodafone Idea’s Board has approved modification of the use of the Rs 250 billion right issue funds to pay Rs 28 billion towards the adjusted gross revenue (AGR) dues besides for repayment of loans and redemption of non-convertible debentures, including interest.
Sectoral Indices Trends:
The sectoral indices closed on a mixed note during last week. The S&P BSE Oil & Gas, IT and Auto had rose by 0.88%, 2.27% and 2.50% respectively. S&P BSE Bankex and PSU indices had declined by -1.54% and -0.12% in last week.
Bharti Airtel continues to witness rise in turnover in Stock Derivatives
Bharti Airtel witnessed rise in open interest, share price of Bharti Airtel gained by 9% 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.
Reliance Industries also witnessed rise in open interest, share price of Reliance Industries gained by 2% during last week. Reliance Industries reported 13.5% (Y-o-Y) rise in net profit mainly driven by telecom & retail segments and lower tax rate. Revenue from operations in Q3Fy20 marginally increased by 2.5% (Y-o-Y), whereas, petro-chemical business witnessed 10.6% (Y-o-Y) decline in revenues.
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 0.17% against USD, USD/INR pair closed at Rs. 71.079 in the last week.