Government hikes maximum load carrying capacity of heavy vehicles by 20-25% - Daily Market Update_ July 18, 2018

Daily Market Update 18th July, 2018   Equity Market Update • Indian Equity markets closed in the green due to gains in banking stocks following reports that six public sector banks might get a capital infusion of about Rs. 80 billion from the government. Further, gains in oil & gas stocks due to fall in oil prices boosted the indices. Additionally, rise in rupee added to the gains. However, gains were restricted on subdued global markets as investors awaited clues on the outlook for U.S. interest rates from U.S. Federal Reserve Chairman. • Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.54% and 0.65% to close at 36,519.96 and 11,008.05, respectively. S&P BSE Mid-Cap and S&P BSE Small Cap grew 2.14% and 1.12%. • The overall market breadth on BSE was strong with 1,429 scrips advancing and 1,146 scrips declining. A total of 145 scrips remained unchanged. • On the BSE sectoral front, S&P BSE Oil & Gas stood as the major gainer, up 2.19% followed by S&P BSE Metal that grew 1.91%. S&P BSE Energy and S&P BSE Basic Materials grew 1.84% and 1.52%, respectively. S&P BSE FMCG stood as the major loser, down 0.80% followed by S&P BSE Information Technology that fell 0.07%. • Among the 31-stock sensitive Sensex pack, State Bank of India was the major gainer, up 2.98%, followed by Sun Pharma and Axis Bank that grew 2.97% and 2.86%, respectively. Hindustan Unilever was the major loser, down 4.00%. Debt Market Update • Bond yields declined after two straight days of increase as global crude oil prices fell and alleviated concerns of rise in domestic inflationary pressures to some extent. • Yield on the 10-year benchmark paper (7.17% GS 2028) fell 5 bps to close at 7.75% as against its previous close of 7.80%. During the session, bond yields traded in the range of 7.73% and 7.79%. • Banks’ borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 4,158 crore (gross) on Jul 17, compared with Rs. 13,468 crore (gross) borrowed on Jul 16. Sale of securities under the Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 8,579 crore on Jul 16. • Banks borrowed Rs. 925 crore under the central bank’s Marginal Standing Facility on Jul 16 compared with borrowing of Rs. 115 crore on Jul 13. Global Market Update • Straits Times â€" The index moved up 0.21% and bucked the trend of most of the regional peers. However, lower cues from overnight U.S. markets and fall in crude oil prices limited gains. • Nikkei â€" The index gained 0.44% on weaker yen. But investors remained cautious ahead of the Congressional testimony of Federal Reserve Chairman. • Hang Seng â€" The index fell by 1.25% on worries over the U.S.-China trade war and lower cues from mainland Chinese market. • FTSE â€" The index grew 0.34% following gains in basic resources stocks. However, decline in telecom stocks capped the gains. Meanwhile, investors remained focused on testimony by Fed Chair before Congress. • Dow Jones - The index grew 0.22% after Fed Chairman came in with few surprises in the semiannual monetary policy testimony. The Chairman stated that the U.S. economy has grown at a solid pace so far in 2018 and expects job market to remain strong. Gains in technology stocks boosted the indices.   Domestic Indices Performance Global Indices 17-Jul-18 1D % Chg 1M % Chg 1Yr % Chg Nifty 50 11,008 0.65 1.76 11.01 S&P BSE Sensex 36,520 0.54 2.52 13.86 S&P BSE Midcap 15,376 2.14 -3.91 1.18 S&P BSE Smallcap 15,966 1.12 -5.87 0.35 S&P BSE Auto 24,469 1.26 -1.53 0.69 S&P BSE Bankex 29,920 1.43 1.22 9.93 S&P BSE CD 19,674 1.02 -4.11 23.02 S&P BSE CG 17,692 0.91 -3.26 0.37 S&P BSE FMCG 11,368 -0.80 1.35 6.78 S&P BSE HC 13,770 1.26 -3.71 -6.53 S&P BSE IT 14,488 -0.07 3.85 42.78 S&P BSE Metal 12,239 1.91 -8.71 1.32 S&P BSE Oil 14,310 2.19 -0.61 2.59 S&P BSE Power 1,916 1.01 -4.98 -16.46 S&P BSE PSU 7,253 2.32 -6.06 -14.86 S&P BSE Realty 2,011 0.88 -7.84 -7.13 S&P BSE Teck 7,323 0.03 1.93 27.55 VIX Index 13 -0.95 6.26 11.94   Daily Rates Key Rates (%) 17-Jul-18 Previous Close Year Ago 10 Yr Gsec 7.75 7.80 6.46 5 Yr AAA Corp Bond 8.71 8.76 7.44 3 Yr AAA Corp Bond 8.57 8.61 7.14 1 Yr AAA Corp Bond 8.21 8.21 6.99 3 Yr AA Corp Bond 9.06 9.10 7.80 1 Yr AA Corp Bond 8.68 8.72 7.76 12 Month CD 7.98 7.98 6.59 3 Month CD 7.05 7.01 6.30 CALL 6.12 6.18 6.07 CBLO 6.23 6.23 6.17   Institutional Flows (INR Cr) FII Flows MF Flows1 As on July 17,2018 Debt Equity Debt Equity Purchases 289 3,974 28 68 Sales 280 4,514 15 53 Net 9 -540 12 14 MTD Net -1516 -29 25838 1395 1 As on July 9,2018 Global Indices Performance Global Indices 17-Jul-18 1D % Chg 1M % Chg 1Yr % Chg Dow Jones 25,120 0.22 0.12 16.14 Nasdaq 100 7,404 0.63 2.04 26.78 FTSE 7,626 0.34 -0.10 3.00 Straits Times 3,240 0.21 -3.49 -1.78 Nikkei 22,697 NA -0.68 12.82 Hang Seng 28,182 -1.25 -7.02 6.46 Shanghai Composite 2,798 -0.57 -7.41 -11.91     Commodity Market Update • Gold prices traded lower as greenback gained against the euro. • Brent Crude prices traded lower as worries eased over supply disruptions. According to the U.S. Energy Information Administration, production from seven major U.S. shale oil formations is expected to rise by 143,000 barrels per day (bpd) to 7.47 million bpd in Aug 2018. Currency Market Update • The rupee rose against the greenback following decline in crude oil prices. • The euro fell against the greenback as concerns over the trade dispute rose, weighing on investor sentiments. Market participants were also cautious ahead of U.S. Federal Chief’s testimony that will provide clues on the interest rates changes and U.S. economy’s momentum. Finance and Economy • The government has hiked the official maximum load carrying capacity of heavy vehicles by 20-25%. It has also scrapped the renewal of fitness certificates for freight carriers, which was compulsory annually. The changed rules apply to new vehicles. • The Central Board of Indirect Taxes and Customs (CBIC) in its effort to clear pending GST refunds of exporters will organise a fortnight drive from July 16 to 30, the third of its kind. In the first two fortnights, CBIC had cleared Rs. 5,401 crore and Rs. 7,635 crore refunds under Integrated GST (IGST) paid and input tax credit (ITC) claims, respectively. • The Directorate General of Trade Restrictions (DGTR) has decided to impose safeguard duty on solar panels and modules imported from China and Malaysia. The duty would be imposed for two years â€" 25% for the first year, 20% for the first half of the second year and 15% for the second half. This is being done to protect the interests of domestic manufacturers of solar panels. Corporate News • HDFC AMC will open its initial public offer (IPO) on Jul 25, 2018. The AMC plans to raise Rs. 945.23 crore through the IPO. The offer will remain open till Jul 27. The HDFC group has so far filed three IPOs and this one will be the fourth. • Aurobindo Pharma has entered into a definitive agreement with Apotex, a Canadian pharmaceutical company. The Hyderabad-based pharma company will take over the latter’s commercial operations in five European countries in an all-cash deal of 74 million euros. The deal will be finalised in three to six months.   Commodity Market Commodity (INR) 17-Jul-18 1D % Chg 1M % Chg 1Yr % Chg Brent (1 barrel) (in $) 70.31 0.41 -1.13 47.40 Gold (10 gm) 30,044 -0.42 -3.30 7.16 Silver (1 kg) 38,526 -0.42 -6.86 3.92 Aluminium (1 kg) 144.10 -1.23 -5.32 17.78 Copper (1 kg) 418.00 -0.14 -13.06 9.31   Currency Market Currency 17-Jul-18 1D % Chg 1M % Chg 1Yr % Chg USD/INR 68.30 -0.42 0.48 6.11 EURO/INR 80.10 -0.19 1.90 8.69 GBP/INR 90.52 -0.37 0.58 7.48 100 JPY/INR 60.78 -0.39 -0.91 6.41   Key Economic Indicators Indicators Current Previous GDP 7.70% (Q4 FY'18) 7.00% (Q3 FY'18) IIP 3.20% (May'18) 4.80% (Apr'18) WPI 5.77% (Jun'18) 4.43% (May'18) CPI 5.00% (Jun'18) 4.87% (May'18)   Policy Rates Key Rates (%) Current Previous Reverse Repo 6.00 6.00 Repo 6.25 6.25 CRR 4.00 4.00 SLR 19.50 19.50 Bank Rate 6.50 6.50   Upcoming Events Event Date Forex Reserves 20-Jul-18     Disclaimer: All information contained in this document has been obtained by ICRA Online Limited from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA Online Limited or its affiliates or group companies and its respective directors, officers, or employees in particular, makes no representation or warranty, express or implied, as to the accuracy, suitability, reliability, timelines or completeness of any such information. All information contained herein must be construed solely as statements of opinion, and ICRA Online Limited, or its affiliates or group companies and its respective directors, officers, or employees shall not be liable for any losses or injury, liability or damage of any kind incurred from and arising out of any use of this document or its contents in any manner, whatsoever. Opinions expressed in this document are not the opinions of our holding company, ICRA Limited (ICRA), and should not be construed as any indication of credit rating or grading of ICRA for any instruments that have been issued or are to be issued by any entity.

 

 

Daily Market Update 18th July, 2018   Equity Market Update • Indian Equity markets closed in the green due to gains in banking stocks following reports that six public sector banks might get a capital infusion of about Rs. 80 billion from the government. Further, gains in oil & gas stocks due to fall in oil prices boosted the indices. Additionally, rise in rupee added to the gains. However, gains were restricted on subdued global markets as investors awaited clues on the outlook for U.S. interest rates from U.S. Federal Reserve Chairman. • Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.54% and 0.65% to close at 36,519.96 and 11,008.05, respectively. S&P BSE Mid-Cap and S&P BSE Small Cap grew 2.14% and 1.12%. • The overall market breadth on BSE was strong with 1,429 scrips advancing and 1,146 scrips declining. A total of 145 scrips remained unchanged. • On the BSE sectoral front, S&P BSE Oil & Gas stood as the major gainer, up 2.19% followed by S&P BSE Metal that grew 1.91%. S&P BSE Energy and S&P BSE Basic Materials grew 1.84% and 1.52%, respectively. S&P BSE FMCG stood as the major loser, down 0.80% followed by S&P BSE Information Technology that fell 0.07%. • Among the 31-stock sensitive Sensex pack, State Bank of India was the major gainer, up 2.98%, followed by Sun Pharma and Axis Bank that grew 2.97% and 2.86%, respectively. Hindustan Unilever was the major loser, down 4.00%. Debt Market Update • Bond yields declined after two straight days of increase as global crude oil prices fell and alleviated concerns of rise in domestic inflationary pressures to some extent. • Yield on the 10-year benchmark paper (7.17% GS 2028) fell 5 bps to close at 7.75% as against its previous close of 7.80%. During the session, bond yields traded in the range of 7.73% and 7.79%. • Banks' borrowings under the repo window of the Liquidity Adjustment Facility (LAF) stood at Rs. 4,158 crore (gross) on Jul 17, compared with Rs. 13,468 crore (gross) borrowed on Jul 16. Sale of securities under the Reserve Bank of India's (RBI) reverse repo window stood at Rs. 8,579 crore on Jul 16. • Banks borrowed Rs. 925 crore under the central bank's Marginal Standing Facility on Jul 16 compared with borrowing of Rs. 115 crore on Jul 13. Global Market Update • Straits Times – The index moved up 0.21% and bucked the trend of most of the regional peers. However, lower cues from overnight U.S. markets and fall in crude oil prices limited gains. • Nikkei – The index gained 0.44% on weaker yen. But investors remained cautious ahead of the Congressional testimony of Federal Reserve Chairman. • Hang Seng – The index fell by 1.25% on worries over the U.S.-China trade war and lower cues from mainland Chinese market. • FTSE – The index grew 0.34% following gains in basic resources stocks. However, decline in telecom stocks capped the gains. Meanwhile, investors remained focused on testimony by Fed Chair before Congress. • Dow Jones - The index grew 0.22% after Fed Chairman came in with few surprises in the semiannual monetary policy testimony. The Chairman stated that the U.S. economy has grown at a solid pace so far in 2018 and expects job market to remain strong. Gains in technology stocks boosted the indices.   Domestic Indices Performance Global Indices 17-Jul-18 1D % Chg 1M % Chg 1Yr % Chg Nifty 50 11,008 0.65 1.76 11.01 S&P BSE Sensex 36,520 0.54 2.52 13.86 S&P BSE Midcap 15,376 2.14 -3.91 1.18 S&P BSE Smallcap 15,966 1.12 -5.87 0.35 S&P BSE Auto 24,469 1.26 -1.53 0.69 S&P BSE Bankex 29,920 1.43 1.22 9.93 S&P BSE CD 19,674 1.02 -4.11 23.02 S&P BSE CG 17,692 0.91 -3.26 0.37 S&P BSE FMCG 11,368 -0.80 1.35 6.78 S&P BSE HC 13,770 1.26 -3.71 -6.53 S&P BSE IT 14,488 -0.07 3.85 42.78 S&P BSE Metal 12,239 1.91 -8.71 1.32 S&P BSE Oil 14,310 2.19 -0.61 2.59 S&P BSE Power 1,916 1.01 -4.98 -16.46 S&P BSE PSU 7,253 2.32 -6.06 -14.86 S&P BSE Realty 2,011 0.88 -7.84 -7.13 S&P BSE Teck 7,323 0.03 1.93 27.55 VIX Index 13 -0.95 6.26 11.94   Daily Rates Key Rates (%) 17-Jul-18 Previous Close Year Ago 10 Yr Gsec 7.75 7.80 6.46 5 Yr AAA Corp Bond 8.71 8.76 7.44 3 Yr AAA Corp Bond 8.57 8.61 7.14 1 Yr AAA Corp Bond 8.21 8.21 6.99 3 Yr AA Corp Bond 9.06 9.10 7.80 1 Yr AA Corp Bond 8.68 8.72 7.76 12 Month CD 7.98 7.98 6.59 3 Month CD 7.05 7.01 6.30 CALL 6.12 6.18 6.07 CBLO 6.23 6.23 6.17   Institutional Flows (INR Cr) FII Flows MF Flows1 As on July 17,2018 Debt Equity Debt Equity Purchases 289 3,974 28 68 Sales 280 4,514 15 53 Net 9 -540 12 14 MTD Net -1516 -29 25838 1395 1 As on July 9,2018 Global Indices Performance Global Indices 17-Jul-18 1D % Chg 1M % Chg 1Yr % Chg Dow Jones 25,120 0.22 0.12 16.14 Nasdaq 100 7,404 0.63 2.04 26.78 FTSE 7,626 0.34 -0.10 3.00 Straits Times 3,240 0.21 -3.49 -1.78 Nikkei 22,697 NA -0.68 12.82 Hang Seng 28,182 -1.25 -7.02 6.46 Shanghai Composite 2,798 -0.57 -7.41 -11.91     Commodity Market Update • Gold prices traded lower as greenback gained against the euro. • Brent Crude prices traded lower as worries eased over supply disruptions. According to the U.S. Energy Information Administration, production from seven major U.S. shale oil formations is expected to rise by 143,000 barrels per day (bpd) to 7.47 million bpd in Aug 2018. Currency Market Update • The rupee rose against the greenback following decline in crude oil prices. • The euro fell against the greenback as concerns over the trade dispute rose, weighing on investor sentiments. Market participants were also cautious ahead of U.S. Federal Chief's testimony that will provide clues on the interest rates changes and U.S. economy's momentum. Finance and Economy • The government has hiked the official maximum load carrying capacity of heavy vehicles by 20-25%. It has also scrapped the renewal of fitness certificates for freight carriers, which was compulsory annually. The changed rules apply to new vehicles. • The Central Board of Indirect Taxes and Customs (CBIC) in its effort to clear pending GST refunds of exporters will organise a fortnight drive from July 16 to 30, the third of its kind. In the first two fortnights, CBIC had cleared Rs. 5,401 crore and Rs. 7,635 crore refunds under Integrated GST (IGST) paid and input tax credit (ITC) claims, respectively. • The Directorate General of Trade Restrictions (DGTR) has decided to impose safeguard duty on solar panels and modules imported from China and Malaysia. The duty would be imposed for two years – 25% for the first year, 20% for the first half of the second year and 15% for the second half. This is being done to protect the interests of domestic manufacturers of solar panels. Corporate News • HDFC AMC will open its initial public offer (IPO) on Jul 25, 2018. The AMC plans to raise Rs. 945.23 crore through the IPO. The offer will remain open till Jul 27. The HDFC group has so far filed three IPOs and this one will be the fourth. • Aurobindo Pharma has entered into a definitive agreement with Apotex, a Canadian pharmaceutical company. The Hyderabad-based pharma company will take over the latter's commercial operations in five European countries in an all-cash deal of 74 million euros. The deal will be finalised in three to six months.   Commodity Market Commodity (INR) 17-Jul-18 1D % Chg 1M % Chg 1Yr % Chg Brent (1 barrel) (in $) 70.31 0.41 -1.13 47.40 Gold (10 gm) 30,044 -0.42 -3.30 7.16 Silver (1 kg) 38,526 -0.42 -6.86 3.92 Aluminium (1 kg) 144.10 -1.23 -5.32 17.78 Copper (1 kg) 418.00 -0.14 -13.06 9.31   Currency Market Currency 17-Jul-18 1D % Chg 1M % Chg 1Yr % Chg USD/INR 68.30 -0.42 0.48 6.11 EURO/INR 80.10 -0.19 1.90 8.69 GBP/INR 90.52 -0.37 0.58 7.48 100 JPY/INR 60.78 -0.39 -0.91 6.41   Key Economic Indicators Indicators Current Previous GDP 7.70% (Q4 FY'18) 7.00% (Q3 FY'18) IIP 3.20% (May'18) 4.80% (Apr'18) WPI 5.77% (Jun'18) 4.43% (May'18) CPI 5.00% (Jun'18) 4.87% (May'18)   Policy Rates Key Rates (%) Current Previous Reverse Repo 6.00 6.00 Repo 6.25 6.25 CRR 4.00 4.00 SLR 19.50 19.50 Bank Rate 6.50 6.50   Upcoming Events Event Date Forex Reserves 20-Jul-18     Disclaimer: All information contained in this document has been obtained by ICRA Online Limited from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided 'as is' without any warranty of any kind, and ICRA Online Limited or its affiliates or group companies and its respective directors, officers, or employees in particular, makes no representation or warranty, express or implied, as to the accuracy, suitability, reliability, timelines or completeness of any such information. All information contained herein must be construed solely as statements of opinion, and ICRA Online Limited, or its affiliates or group companies and its respective directors, officers, or employees shall not be liable for any losses or injury, liability or damage of any kind incurred from and arising out of any use of this document or its contents in any manner, whatsoever. Opinions expressed in this document are not the opinions of our holding company, ICRA Limited (ICRA), and should not be construed as any indication of credit rating or grading of ICRA for any instruments that have been issued or are to be issued by any entity.