FIIs/FPIs have bought Indian equity shares worth Rs. 121 billion in January 2019 and bought shares worth Rs. 107 billion in February 2020.
The Nifty Index futures witnessed fall in open interest by 9% for the February series and 101% for the March series. Implied volatility (IV) fell for call option and rose for put option in the last week. Fall in IV for call option and rise in IV for put option shows unsteady support for Nifty at present levels.
Fed minutes show the current stance of policy is likely to remain appropriate for a time, if incoming economic information remains consistent with the economic outlook, minutes from the last FOMC meeting showed. Policymakers see fewer downside risks to the economy than in the previous meeting, amid the easing of trade tensions resulting from the US-China agreement. However, the threat of the coronavirus, in addition to its human toll, had emerged as a new risk to the global growth outlook.
The IHS Markit US Composite PMI fell to 49.6 levels in February 2020 from 53.3 levels in the previous month, pointing to the first month of contraction in the private sector since October 2013.
The IHS Markit US Services PMI dropped to 49.4 levels in February 2020 from 53.4 levels in the previous month and well below market expectations of 53 levels.
The inflation rate in the Euro Area was confirmed at 1.4% (Y-o-Y) in January 2020, the highest since April 2019.
The IHS Markit Eurozone Services PMI rose to 52.8 levels in February 2020 from 52.5 levels in the previous month and above market forecasts of 52.2 levels.
The Japan Services PMI declined to 46.7 levels in February 2020 from 51 levels in the previous month, pointing to the steepest contraction in the sector since April 2014.
Japan’s consumer price inflation edged down to 0.7% (Y-o-Y) in January 2020 from an eight-month high of 0.8% in the previous month.
The number of Americans filling for unemployment benefits increased by 4,000 to 210,000 in the week ended 15th February 2020 from the previous week’s revised level of 206,000 and matching market expectations.
Stocks of crude oil in the United States increased by 0.414 million barrels in the week ended 14th February 2020, following a 7.459 million gain in the previous week and compared with market expectations of a 2.494 million gain, according to EIA Petroleum Status Report.
Wall Street closed deeply in red on Friday, as fears of the coronavirus extending to other Asian countries besides China and dragging global growth weighed on sentiment. On the domestic front, PMI data revealed that US economic output contracted in January 2020 for the first time since October 2013, driven by a sharp decline in services. During the week, Dow Jones declined by 1.40%, Nasdaq fell by 1.60% and S&P 500 slipped by 1.20%.
Gold prices surged to a seven-year peak on Friday and were set to post their best week in over six months amid persistent fears about the global economic impact of corona virus outbreak.
S&P BSE Sensex & Nifty declined by 0.30% & 0.12% respectively during last week.
GMR Infrastructure on 20th February 2020 announced that France’s Groupe ADP will acquire 49% stake in its airport business for Rs.107 billion a move that will help the group reduce debt burden. The first tranche of Rs 52 billion will be received by GMR Group immediately.
Sectoral Indices Trends:
The sectoral indices closed mostly on negative note during last week. The S&P BSE Oil & Gas, Auto and PSU had declined by 1.38%, 1.27% and 0.17% respectively. BSE IT and Bankex gained by 0.08% and 0.45% respectively.
SBI witnessed rise in turnover in Stock Derivatives
SBI witnessed rise in open interest, share price of SBI gained by 3% on Friday. SBI gained momentum after government had created telecom fund in order save Vodafone Idea from bankruptcy. SBI management reported 41% (Y-o-Y) rise in net profit as the asset quality showed good improvement. Gross bad loan declined to 6.9% from 7.53% a year ago. Net Interest income increased by 22% (Y-o-Y). Net NPAs stood at 2.65% compared with 3.95% during last year.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown a fall in the open interest across Stock Options, Index Futures, Stock Futures and Index Option on a week on week basis. Index Options have shown a rise in the open interest.
Indian rupee depreciated by 0.49% against USD, USD/INR pair closed at Rs. 71.88 in the last week.