Indian
Equity Summary-
·
Tracking positive cues from
global markets, domestic benchmark indices Nifty 50 and Sensex closed in green
and rose by 2.72% and 2.81% onØ a WoW basis, albeit, the concerns of rising coronavirus cases in
India and geopolitical tensions between India and China.
·
The top performing sectoral
indices on WoW basis were BSE Realty and BSE Bankex that rose by 3.70% and
3.17% WoW while the worstØ performing index was BSE FMCG that fell by 1.22% WoW.
·
Going forward, global factors
like development on the US -China relationship front , any resurgence of
Covid-19 cases globally, as economiesØ have started
opening up will continue to dictate the trend of the domestic equity market. We
expect the trading range for Nifty between 10,000-10,500 in the near term.
Indian
Debt Market-
·
Government bond prices fell as
the yield on the latest 10-year benchmark 5.79% 2030 paper settled at 5.85% on
Jun 19 compared with 5.80% onØ Jun 12.
·
State Governments have
announced the sale of their securities by way of an auction, for an aggregate
face value of ₹ 6,100 Cr.Ø
·
Fitch Ratings has revised the
Outlook on India's Long-Term Foreign-Currency Issuer Default Rating (IDR) to
Negative from Stable and affirmed theØ rating at
'BBB-‘.
·
We expect the 10 year benchmark
yield to trade between 5.80-6.05% in near termØ.
Domestic
News
·
According to a Reuters poll of
13 analysts , average house prices in India will slump 5.0% in 2020 and 3.0% in
2021 as against an expected rise ofØ 2.0% and 2.5%
in 2020 and 2021 respectively in the similar poll made in March.
·
India’s Crude oil imports fell
22.6% YoY to 14.61 million tonnes in May as per the data released by Petroleum
Planning and Analysis Cell,being theØ lowest since
2015.
·
Major port volumes in India
came in at 45.4 mnt (-23% y-o-y) in May, sequentially the lowest since February
2015.Ø
·
Foreign portfolio investors
(FPI) have infused a net Rs 17,985 crore into the Indian capital markets in
June till now amid increasing liquidity andØ higher
risk appetite.
·
The demand slump has taken its
toll on India Inc’s earnings during the January-March quarter with net profit
of a sample of 633 companiesØ (excluding banks and financials) declining by 75.22% on a
year-on-year basis.
International
News
·
The U.S. current account
deficit slipped by 0.1% to $104.2 billion, dipping to a near two-year low in
the first quarter as the COVID-19 pandemicØ
restricted the flow of goods and services.
·
The UK’s Tax revenues in May
were 43% lower than a year earlier in cash terms as a result of the
government’s deferral of value-added tax billsØ to help
companies preserve cash flow.
·
The total number of bankruptcy
filings in HongKong in the first five months stood at 3,605, 12.4% higher than
3,207 a year earlier.Ø
·
Japan’s core consumer price
index (CPI), which includes oil but excludes volatile fresh food prices, fell
0.2% in May YoY.Ø
·
U.S. Fed's balance sheet
shrinks for first time since February as the Assets ranging from U.S. Treasury
bonds and mortgage-backed securities toØ loans to
banks and state governments - fell to $7.14 trillion on June 17 from $7.22
trillion on a WoW basis.
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