FIIs/FPIs have bought Indian equity shares worth Rs. 252 billion in December 2019 and have bought shares worth Rs. 133 billion in January 2020 (till 24th January 2020).
The Nifty Index futures witnessed fall in open interest by 9% for the January series and 66% for the February series. Implied volatility (IV) fell for put option and rose for call option in the last week. Fall in IV for put option and rise in IV for call option signifies unsteady support for Nifty at present levels.
The IHS Markit US Manufacturing PMI fell to 51.7 levels in January 2020 from 52.4 levels in December 2019, below market expectations of 52.5 levels. It was slowest increase in factory activity in 3 months.
The IHS Markit US Services PMI rose to 53.2 levels in January 2020 from 52.8 levels in the previous month, above market expectations of 52.9 levels.
The European Central Bank left the key interest rate on the main refinancing operations steady at 0% during its January 2020 policy-meeting, as expected. Policymakers have not proved any new information on the monetary policy, economic outlook and strategic review.
The IHS Markit Manufacturing PMI for the Euro Area rose to 47.8 levels in January 2020 from 46.3 levels in December 2019, above forecasts of 46.8 levels. The reading pointed to the 12th straight month of contraction in factory activity, although the slowest in 9 months.
The Bank of Japan (BoJ) left its key short-term interest rate unchanged at -0.1% and kept the target for the 10-year Japanese government bond yield at around 0% during its January 2020 policy-meeting. BoJ upgraded its growth estimate for Fy21, while price forecasts were held steady, showing inflation will remain under the 2% target at least until early 2022.
Japan’s consumer price inflation rose to 0.8% (Y-o-Y) in December 2019 from 0.5% in the previous month, above market consensus of 0.4%.
Japan’s trade deficit rose to JPY 152.5 billion in December 2019 from JPY 55.7 billion a year earlier and compared with market expectations of JPY 150 billion. Exports fell 6.3% to JPY 6.58 trillion, down from a 7.9% tumble in November 2019 but more than market expectation of 4.2% slump. Imports slipped 5% to JPY 6.73 trillion, after plunging 15.7% in November 2019 and compared with market forecasts of a 3.4% fall.
Stocks of crude oil in the US decreased by 0.405 million barrels in the week ended 17th January 2019, following 2.549 million fall in the previous week and against market expectations of a 1 million decline, according to EIA Petroleum Status Report.
The number of Americans filling for unemployment benefits increased by 6,000 to 211,000 in the week ended 18th January 2020 from the previous week’s revised level of 205,000 and compared with market expectations of 211,000.
Wall Street closed in red on Friday, with tourism and travel shares among worst performers as spread coronavirus could affect earnings during Chinese holiday season. On earnings front, Intel topped estimates and gave an optimistic outlook for the first quarter of 2020. During the week, Dow Jones declined by 1.22%, Nasdaq fell by 0.80% and S&P 500 decreased by 0.90%.
US crude remained at over 2-month low on Friday, on worries about the impact that the spread of coronavirus from China might have on economic growth and oil demand. Chinese authorities have imposed lockdown measures on 10 cities in a further effort to contain the outbreak of the deadly new virus ahead of the Lunar New Year. Brent Crude prices fell by 6.4% during last week.
India’s benchmark BSE Sensex and Nifty declined by 0.80% and 0.84% during last week. On Friday indices closed on a positive note as bank shares among the best performers. YES Bank stocks rallied for a third straight session after State Bank of India Chairman Rajnish Kumar told Bloomberg that the troubled lender was a significant player in the market and will not be allowed to fail.
NMDC announced hike of up to Rs 400 per tonne in the prices of lump ore and fines, marking the second increase in rates within a month .NMDC has increased the price of high-grade iron ore (lumps) by Rs 400 to Rs 3,200 per tonne.
Sectoral Indices Trends:
The sectoral indices mostly closed on negative note during last week. The S&P BSE Oil & Gas, PSU, Bankex and Auto had declined by -1.08%, -1.04%, -1.02 and -1.77% respectively. S&P BSE IT indices had gained by -1.04% in last week.
Ultratech Cement witnessed rise in turnover in Stock Derivatives
Ultratech Cement witnessed rise in open interest, share price of Ultratech Cement gained by 3% during last week. Ultratech Cement management reported 49% (Y-o-Y) rise in net profit ro Rs. 6431 million. The rise in profit was mostly aided by a 15% (Y-o-Y)fall in energy costs and tax rate cut by government. Raw material costs, however, rose 2% over last one year. Sales volume declined by 3% to 19.4 million tonnes.
Bharti Airtel also witnessed rise in open interest, share price of Bharti Airtel gained by 5% during last week. Company has received the approval from DoT for increasing the limit of FDI upto 100%. Bharti Telecom holds around 41% stake in Bharti Airtel while foreign promoter entities hold 21.46% stake in the telecom firm and public hold 37%. 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 0.353% against USD, USD/INR pair closed at Rs. 71.33 in the last week.