FIIs/FPIs have bought Indian equity shares worth Rs. 121 billion in January 2019 and bought shares worth Rs. 18 billion in February 2020.
Covid-19 contagion spread across the globe, have taken the indices to the lowest levels in last five sessions. Investors rushed to safe-haven of fixed income and bonds rallied globally as a result. The US dollar index (DXY), which measures the strength of USD against major currencies had given up gains in the last few trading sessions. The equity stock markets are tanking on a fear that companies will have to close operations temporarily which will impact earnings.
The Nifty Index futures witnessed rise in open interest by 486% for the March series and 288% for the April series. Implied volatility (IV) rose for call option and for put option in the last week. Rise in IV for call option and for put option shows unsteady support for Nifty at present levels.Nifty VIX surged by 52% during last week.
Global Economy
Industrial production in Japan rose by 0.8% (M-o-M) in January 2020, easily beating market consensus of a 0.2% gain and following a 1.2% increase the month before.
The NBS Non-Manufacturing PMI in China tumbled to a record low of 29.6 levels in February 2020 from 54.1 levels in the prior month, amid mounting fears over the spread of COVID-19 cases.
The NBS Manufacturing PMI in China plunged to a record low of 35.7 levels in February 2020 from 50 levels in the previous month and missing market expectations of 46 levels.
The number of Americans filling for unemployment benefits increased by 8,000 to 219,000 in the week ended 22nd February 2020 from the previous week’s revised level of 211,000 and compared with market expectations of 212,000.
Stocks of crude oil in the United States increased by 0.452 million barrels in the week ended 21st February 2020, following a 0.414 million gain in the previous week and compared with market expectations of a 2.005 million gain, according to EIA Petroleum Status Report.
Global Market
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. Coronavirus continues to overshadow solid economic data. During the week, Dow Jones declined by 12.44%, Nasdaq fell by 11.13% and S&P 500 slipped by 9%.
Main stock market indexes in Europe fell further into correction territory on Friday and are set for their worst week since August 2011 amid coronavirus fears. Travel and leisure stocks were among the worst performers. During the week, FTSE declined by 11% and DAX tumbled 12.4%.
Brent crude dropped below USD 51 a barrel on Friday to its lowest since December 2018, as the spread of coronavirus to large economies including South Korea, Japan and Italy and oil-producing countries in the Middle East has deepened fears of slower fuel demand growth. Brent crude fell by 11% during last week.
Indian Market
S&P BSE Sensex & Nifty declined by 7% & 7.30% respectively during last week.
The Indian economy expanded 4.7% (Y-o-Y) during Q3Fy19, matching market expectations. It follows an upwardly revised 5.1% expansion in Q2Fy19 (4.5% earlier reported). It is the weakest growth rate since Q1Fy13 considering the upward revision for the previous quarter.
India’s fiscal deficit widened sharply to Rs. 9.85 trillion in April-January 2019-20 from Rs. 7.71 trillion in the corresponding period of the previous fiscal year. That was equivalent to 128.5% of the government’s budget estimate for this financial year.
Infrastructure output in India increased 2.20% (Y-o-Y) in January 2020, following an upwardly revised 2.1% rise in December 2020.
Sectoral Indices Trends:
The sectoral indices closed on negative note during last week. The S&P BSE IT , Bankex, Oil & Gas, Auto and PSU had declined by 8.31%, 6% , 9%, 10.35% and 9% respectively.
SBI witnessed rise in turnover in Stock Derivatives
SBI witnessed rise in open interest, share price of SBI declined by 7% on Friday. SBI Cards is coming up with an IPO in coming week, SBI bank has 70% stake in SBI Card company due to which open interest for SBI bank has risen during last week.
Last week, 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 Options, Stock Futures and Index Option on a week on week basis. Index Futures have shown a rise in the open interest.
Currency
Indian rupee depreciated by 0.917% against USD, USD/INR pair closed at Rs. 72.54 in the last week.
