FIIs/FPIs have bought Indian equity shares worth Rs. 121 billion in January 2019 and sold shares worth Rs. 11 billion in February 2020.
The Nifty Index futures witnessed fall in open interest by 8% for the February series and 43% for the March 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 5call option signifies steady support for Nifty at present levels.
Global Economy
Industrial production in the US fell 0.3% from a month earlier in January 2020, following a 0.4% decline in December 2019 and compared to market expectations of a 0.2% drop.
Annual inflation rate in the US climbed to 2.5% in January of 2020 from 2.3% in December and beating market forecasts of 2.4%. It is the highest rate since October of 2018, mainly boosted by a 12.8% jump in gasoline cost.
The Eurozone annual economic expansion was revised lower to 0.9% during Q4Fy19, the weakest rate since Q4Fy13.
Industrial production in the Euro Area plunged 4.1% from a year earlier in December 2019, following a revised 1.7% contraction in the previous month and compared to market forecasts of a 2.3% decline.
The Japanese economy shrank 1.6% (Q-o-Q) in Q4 2019, compared to market consensus of a 0.9% contraction and after a downwardly revised 0.1% growth in Q3 2019.
The number of Americans filling for unemployment benefits increased by 2,000 to 205,000 in the week ended 8th February 2020 from the previous week’s revised level of 203,000 and compared with market expectations of 210,000.
Stocks of crude oil in the US increased by 3.355 million barrels in the week ended 31st January 2020, after a 3.548 million rise in the previous week and above market expectations of a 2.831 million increase, according to EIA Petroleum Status Report.
Global Market
Wall Street traded on a flat note on Friday as investors react to latest economic data released for January 2020. Industrial production shrank 0.3%, while markets were expecting a smaller 0.1% drop. On the earnings front, Nvidia results beat market expectations. During the week, Dow Jones gained by 1%, Nasdaq surged by 2.2% and S&P 500 increased by 1.86%.
Oil prices edged higher on Friday, on increased hopes that OPEC will implement deeper production curbs to offset slowing oil demand in China. The International Energy Agency on Thursday said that global oil demand in the first quarter of 2020 is likely to contract year-on-year for the first time since the financial crisis in 2009. During the week, Brent crude oil gained by 5.23%.
Indian Market
S&P BSE Sensex & Nifty gained by 0.30% & 0.12% respectively during last week.
India’s industrial production fell 0.3% from a year earlier in December 2019, following a 1.8% growth in the previous and missing forecasts of a 1.8% advance.
Consumer price inflation increased to 7.59% in January 2020 from 7.35% in December, above expectations of 7.4%. The inflation accelerated for the 6th straight month to the highest since May of 2014.
Wholesale prices in India rose 3.1% in January 2020, following a 2.59% gain in the previous month and above market expectations of 2.92%.
India’s trade deficit widened to USD 15.17 billion in January 2020 from USD 15.05 compared to a year ago. It came above market expectations of a USD 11.58 billion gap. Exports went down 1.7% (Y-o-Y) to USD 25.97 billion, the 6th straight annual fall and imports edged down 0.8% (Y-o-Y) to USD 41.14 billion.
Sectoral Indices Trends:
The sectoral indices closed mostly on positive note during last week. The S&P BSE Oil & Gas, Auto, PSU and Bankex had declined by 1.58%, 2.69%, 3.37%, and 0.89% respectively. BSE IT gained by 1.30%.
Bharti Airtel witnessed rise in turnover in Stock Derivatives
Bharti Airtel witnessed rise in open interest, share price of Bharti Airtel gained by 5% during last week. Consolidated revenues rose by 10.5% (Y-o-Y) Rs. 219 billion, EBITDA was up by 4.6% (Y-o-Y) to Rs. 92 billion and margin stood at 42.2%. ARPU for Q3Fy20 stood at Rs. 135. Supreme Court slammed mobile carriers for non-payment of billions of dollars in government dues and threatened them with contempt proceedings if they didn’t pay up by 17th March 2020.
Foreign Institutional Investors (FIIs) Derivative Statistics have shown a rise in the open interest across Stock Options and Index Option on a week on week basis. Index Futures and Stock Futures have shown a fall in the open interest.
Currency
Indian rupee marginally depreciated by 0.020% against USD, USD/INR pair closed at Rs. 71.53 in the last week.
