The world this week 3rd august

1. The World This Week
27th July – 3rd August, 2018
Policy Rates
Policy Repo Rates 6.50%
Reverse Repo Rate 6.25%
Marginal Standing Facility Rate 6.75%
Bank Rate 6.75%
CRR 4.00%
SLR 19.50%
Indian Equity Summary
 Indian equities ended in the green for the second consecutive week. Benchmarks S&P BSE Sensex and Nifty 50 rose 0.6% and
0.7%, respectively. A rally in shares of healthcare, consumer durables, oil & gas and metal firms supported the market.
 On the macro front India’s annual infrastructure output grew 6.7% in June, YoY. Going forward we expect the market to inch
northward on the back of a good earnings season, and good monsoon though a larger part of the movement may be dictated by
the development on the global front.
Indian Debt Market Summary
 The on the run, 7.17% Gsec 2028, yield closed lower by 2bps to settle at 7.76% on August 3 as against 7.78% on July 27
 In line with market expectations, the monetary policy committee (MPC) of the Reserve Bank hiked repo rate by 25 basis points to
6.50% in its third bi-monthly monetary policy review of 2018-19.
 We feel the 10yr gsec yield around the 7.80% level have priced in the rising oil prices, higher inflation and the rupee movement.
 We expect the 10-year G-sec yield to trade in a range of 7.60%-7.70% in near term , with a downward bias.
Key announcements in the month Release Date
Index of Industrial Production (Jun 18) 10-Aug-18
Consumer Price Index (Jul 18) 13-Aug-18
Wholesale Price Index (Jul 18) 14-Aug-18
BSE Sectoral -Indices
Date Sensex Auto Bankex CD FMCG HC IT Metals O&G Power Realty
27-Jul-18 37337 24269 30743 20630 11893 14028 14517 12511 14839 1951 2068
30-Jul-18 37494 24388 31144 20693 11926 14123 14411 12600 14952 1974 2072
31-Jul-18 37607 24497 31006 20902 12013 14206 14527 12660 15024 1975 2095
01-Aug-18 37522 24308 30835 21002 12105 14363 14585 12581 15172 1972 2099
02-Aug-18 37165 24002 30577 21052 12061 14511 14497 12615 15154 1981 2069
03-Aug-18 37556 24121 31079 21372 12157 14675 14604 12803 15206 1992 2082
Change 0.59% -0.61% 1.09% 3.60% 2.23% 4.61% 0.60% 2.34% 2.47% 2.08% 0.67%
Key Indicators
GDP (Q4 FY'18) 7.70%
Manufacturing PMI June'18 53.10
Current Account Deficit (Q4 of FY18, in $ Billion) 13.00
Fiscal Deficit (FY 2018, as a % of GDP) 3.53%
Credit Growth (July 06,2018) 12.80%
Deposit Growth (July 06,2018) 8.30%
Yield CurveFBIL CD Rates
Net Investments ( INR Cr)
Date FII DII
27-Jul-18
738.05 406.12
30-Jul-18
-234.04 48.58
31-Jul-18
572.21 -290.87
01-Aug-18
-95.94 -562.33
02-Aug-18
-639.87 -340.3
03-Aug-18
-5.87 87.08
Total 334.54 -651.72
6.2
6.4
6.6
6.8
7
7.2
7.4
7.6
7.8
8
8.2
03-08-2018
27-07-2018
0
1
2
3
4
5
6
7
8
9
03-08-2018
27-07-2018

2. Domestic News
 In line with market expectations, the monetary policy committee (MPC) of the Reserve Bank hiked repo rate by 25 basis points to
6.50%
 Biocon is aiming to register a 66 per cent growth in its biologics business this fiscal, which the company hopes will help it clock
revenue of $200 million on the back of emerging markets growth.
 According to the government data, eight core sector industries register seven-month high growth of 6.7 percent in June.
 According to the Finance Ministry statement, GST collections rose to Rs 964.83 billion in July from Rs 956.1 billion mopped up in the
previous month.
International News
 Eurozone Producer prices advanced 3.6 percent annually in June, faster than the 3 percent rise in May
 President Donald Trump is weighing the idea of increasing from 10% to 25% the tariffs imposed on some $200 billion of Chinese
products, mainly consumer goods
 China tempts Britain with free trade, says door to US talks open
 U.S. consumer spending increased solidly in June as households spent more at restaurants and on accommodation, building a
strong base for the economy heading into the third quarter, while inflation rose moderately
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
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Commodities and Currency
Date USD /INR GBP /INR EURO /INR YEN/INR
Crude Gold
(USD/ BBL) (USD/ozt)
27-Jul-18 68.66 89.94 79.84 0.6184 74.29 1224.22
30-Jul-18 68.68 90.11 80.23 0.6185 74.97 1221.45
31-Jul-18 68.55 90.23 80.46 0.6154 74.25 1224.15
01-Aug-18 68.43 89.88 79.94 0.612 72.39 1215.96
02-Aug-18 68.71 89.98 79.81 0.6161 73.45 1207.83
03-Aug-18 68.62 89.44 79.59 0.6157 73.21 1214.90
Change -0.07% -0.56% -0.32% -0.44% -1.45% -0.76%