The document provides a weekly summary of key economic indicators and financial market performance in India for the period of 1st-8th June 2018. Some of the key highlights included: - The Indian equity market ended the week flat with the Sensex gaining 0.61% supported by expectations of a normal monsoon, rupee strengthening, and falling crude prices. - Bond yields rose as RBI raised repo and reverse repo rates by 25 bps while maintaining a neutral liquidity stance, suggesting this may be the only rate hike this fiscal year. - FII investments were positive at Rs. 1,164 crore while DII investments were higher at Rs. 2,470 crore for the week.

1. The World This Week
1st June – 8th June, 2018
Policy Rates
Policy Repo Rates 6.25%
Reverse Repo Rate 6.00%
Marginal Standing Facility Rate 6.50%
Bank Rate 6.50%
CRR 4.00%
SLR 19.50%
Indian Equity Summary
 The Indian equity market ended the week on a flat note with the benchmark Indices Sensex ending with a gain of 0.61%.
Expectations of normal monsoon, strengthening of the rupee and a fall in the crude prices supported the market. On the sectoral
front Metals, O&G and Pharma closed in green while Power , Bankex were a drag on the market. Going forward the market will
keenly watch the meeting between US President and the North Korean leader scheduled on 12th June.
 We expect the market to trade in a range ,and volatility to persist .The downward movement of crude prices, and the
strengthening of rupee will act as tailwinds.
Indian Debt Market Summary
 The on the run, 7.17% Gsec 2028, moved sharply higher by 11 bps to close at 7.95% v/s the previous close of 7.84% .
 RBI raised the repo & reverse repo rates by 25bps, it continued its stance on liquidity as neutral and the GDP growth forecast for
FY19E remained unchanged. The neutral stance maintained by RBI gave the market confidence that this may be the only hike this
fiscal year
 We expect the 10-year G-sec yield to trade in a range of 7.60%-7.80% in near term.
Key announcements in the month Release Date
Index of Industrial Production (Apr 18) 12‐Jun‐18
Consumer Price Index (May 18) 12‐Jun‐18
Wholesale Price Index (May 18) 14‐Jun‐18
BSE Sectoral -Indices
Date Sensex Auto Bankex CD FMCG HC IT Metals O&G Power Realty
01-Jun-18 35227 24635 29781 20575 11216 12945 13326 13506 14342 2089 2211
04-Jun-18 35012 24543 29358 20198 11088 12886 13382 13538 14336 2041 2139
05-Jun-18 34903 24457 29292 19920 11029 12706 13178 13485 14351 2014 2117
06-Jun-18 35179 24841 29460 20382 11152 12859 13306 13717 14387 2043 2148
07-Jun-18 35463 24991 29664 20335 11244 12956 13453 13914 14560 2068 2207
08-Jun-18 35444 24960 29593 20413 11204 13425 13556 13854 14647 2053 2216
Change 0.61% 1.32% -0.63% -0.79% -0.11% 3.70% 1.73% 2.58% 2.13% -1.74% 0.23%
Key Indicators
GDP (Q4 FY'18) 7.70%
Manufacturing PMI (Apr'18) 51.2
Current Account Deficit (Q3 of FY18, in $ Billion) 13.5
Fiscal Deficit (FY 2018, as a % of GDP) 3.50%
Credit Growth (May 11,2018) 12.65%
Deposit Growth (May 11,2018) 7.61%
Gsec Yield Curve (YoY) , shows a parallel shiftFBIL CD Rates
Net Investments ( INR Cr)
Date FII DII
01-Jun-18 -203 338
04-Jun-18 2354 -712
05-Jun-18 -158 474
06-Jun-18 -81 712
07-Jun-18 -525 1198
08-Jun-18 -223 459
Total 1164 2470
0
1
2
3
4
5
6
7
8
9
08-06-2018
08-06-2017
0
1
2
3
4
5
6
7
8
9
08-06-2018
01-06-2018

2. Domestic News
 The government is considering merging at least four state-run banks, including Bank of Baroda, IDBI Bank Ltd, Oriental Bank of
Commerce and Central Bank of India.
 RBI has conveyed its ‘No objection’ for the voluntary amalgamation of Capital First, Capital First Home Finance and Capital First
Securities with IDFC Bank.
 FDI to India declined to $40 billion in 2017 from $44 billion in 2016, said UNCTAD'S World Investment Report 2018
 HDFC in talks to raise $750 million through ECBs
International News
 Japan's gross domestic product was down 0.2 percent on quarter in the first three months of 2018.
 China has offered to buy $70 billion worth of US goods if Washington drops plans to impose tariffs in return
 US trade deficit narrowed to $46.2 billion in April from a revised $47.2 billion in March.
 The euro area Gross domestic product grew 0.4 percent sequentially in the first quarter, slower than the 0.7 percent expansion seen
a quarter ago.
Source:
Reuters, NSDL, FIMMDA, CARE,RBI, MCX SX, BSE, NSE, Bloomberg, Business Standard, Economic Times
Abbreviations:
FII (Foreign Institution Investors), PMI Purchasing Manager index WPI (Wholesale Price Index), P/E (Price/Earnings ratio), CP (Commercial Papers), G-
sec (Government Securities), MTD – Month to Date, YTD – Year to Date
Disclaimer
The information and views presented here are prepared by Karvy Private Wealth (a division of Karvy Stock Broking Limited) or other Karvy Group companies.
The information contained herein is based upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This
material is for personal information and we are not responsible for any loss incurred based upon it. Karvy Private Wealth is only a distributor of securities and
financial market products
Investment in securities market are subject to market risks, read all the related documents carefully before investing. The investments discussed or
recommended here may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and
financial position and using such independent advice, as they believe necessary. The securities quoted are exemplary and are not recommendatory While acting
upon any information or analysis mentioned here, investors may please note that neither Karvy nor any person connected with any associated companies of
Karvy accepts any liability arising from the use of this information and views mentioned here.
The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above-mentioned companies from time to time.
Every employee of Karvy and its associated companies are required to disclose their individual stock holdings and details of trades, if any, that they undertake.
The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this
recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy
Stock Broking Ltd
Representations made about the performance or activities are not indicative of future results. The information given in this video on tax is for guidance only,
and should not be construed as tax advice. Investors are advised to consult their respective tax advisers to understand the specific tax incidence applicable to
them. We also expect significant changes in the tax laws once the new Direct Tax Code is in force – this could change the applicability and incidence of tax on
investments
Karvy Private Wealth (A division of Karvy Stock Broking Limited) operates from within India and is subject to Indian regulations.
Karvy Stock Broking Ltd. is a SEBI registered stock broker, depository participant having its offices at:
702, Hallmark Business plaza, Sant Dnyaneshwar Marg, Bandra (East), off Bandra Kurla Complex, Mumbai 400 051 .
(Registered office Address: KARVY CENTRE, 8-2-609/K, AVENUE 4, STREET NO.1, BANJARA HILLS, HYDERABAD-500034)
SEBI registration No’s:”NSE(CM):INB230770138, NSE(F&O): INF230770138, BSE: INB010770130, BSE(F&O): INF010770131,NCDEX(00236,
NSE(CDS):INE230770138, MSEI: Registration number INE 260770138NSDL and CDSL – SEBI Registration No: IN-DP-175-2015PMS Registration No.:
INP000001512,
Commodities and Currency
Date USD /INR GBP /INR EURO /INR YEN/INR
Crude Gold
(USD/ BBL) (USD/ozt)
01-Jun-18 67.06 89.34 78.47 0.614 76.79 1293.40
04-Jun-18 67.11 89.82 78.74 0.613 75.29 1292.02
05-Jun-18 67.15 89.70 78.44 0.612 75.38 1296.40
06-Jun-18 66.93 89.83 78.79 0.608 75.36 1296.40
07-Jun-18 67.13 90.05 79.32 0.610 77.32 1297.18
08-Jun-18 67.51 90.45 79.28 0.620 76.46 1298.17
Change 0.67% 1.24% 1.03% 0.83% -0.43% 0.37%