- The Indian equity market rose slightly over the week, aided by falling crude oil prices and recovery in the rupee. Volatility increased due to political issues in Italy and trade war fears. Telecom and oil & gas sectors saw gains while infrastructure, realty, and pharma declined. - The 10-year Indian government bond yield increased sharply by 11 basis points to 7.84% due to higher than expected GDP growth and inflation numbers. - Key economic indicators included 7.7% GDP growth in Q4, 4.58% CPI inflation in April, and 12.65% growth in credit in May. The RBI's monetary policy meeting on June 6th is expected to take a h

1. The World This Week
25th May – 1st June, 2018
Policy Rates
Policy Repo Rates 6.00%
Reverse Repo Rate 5.75%
Marginal Standing Facility Rate 6.25%
Bank Rate 6.25%
CRR 4.00%
SLR 19.50%
Indian Equity Summary
 The domestic equity market inched higher as Nifty closed with a gain of 0.90% WoW, aided by fall in crude prices and recovery in
the rupee . Volatility across the markets increased due to Italy’s political crisis and fresh fears of global trade war. Telecom, O&G
and auto Indices closed in green while the Infra , Realty and Pharma were the major sectoral losers ,WoW.
 Going ahead, 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 provide the necessary tailwinds.
Indian Debt Market Summary
 The on the run, 7.17% Gsec 2028, yiled moved sharply higher by 11 bps to close at 7.84% v/s the previous close of 7.73% .
 India's GDP grew at 7.7% in Q4, retaining the fastest growing economy tag. The CPI for April came at 4.58% above the RBI guidance
of 4% for the medium term. Going forward the market will closely watch the RBIs monetary policy meeting on 4-6 June 2018 which
will provide the necessary direction. We expect RBI to take a hawkish stance.
 We expect the 10-year G-sec yield to trade in a range of 7.50%-7.80% in near term.
Key announcements in the month Release Date
Nikkei India Services PMI (May 18) 05‐Jun‐18
MPC Second Bi‐monthly monetary policy meeting 06‐Jun‐18
Forex Reserves 08‐Jun‐18
BSE Sectoral -Indices
Date Sensex Auto Bankex CD FMCG HC IT Metals O&G Power Realty
25-May-18 34925 24192 29541 21111 11223 13044 13550 13498 13938 2109 2239
28-May-18 35165 24462 29891 21131 11286 13319 13316 13626 14283 2135 2275
29-May-18 34949 24568 29411 20968 11238 13214 13361 13638 14352 2133 2257
30-May-18 34906 24546 29444 20873 11227 13112 13352 13659 14263 2137 2254
31-May-18 35322 24472 30007 20670 11291 13003 13453 13612 14429 2129 2235
01-Jun-18 35227 24635 29781 20575 11216 12945 13326 13506 14342 2089 2211
Change 0.87% 1.83% 0.81% -2.54% -0.07% -0.76% -1.65% 0.06% 2.90% -0.93% -1.28%
Net Investments ( INR Cr)
Date FII DII
25-May-18 -768 888
28-May-18 -795 1018
29-May-18 -407 578
30-May-18 -1286 492
31-May-18 -15 -266
01-Jun-18 -203 338
Total -3475 3048
Key Indicators
GDP (Q4 FY'18) 7.70%
Manufacturing PMI (Apr'18) 51.60
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%
The MoM yield flattened , with the near end rising higher than the long end
FBIL CD Rates
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02-05-2018
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2. Domestic News
 The growth rate of eight core sectors, which also include fertilisers and steel, was 2.6 per cent in April 2017 . The Nikkei
manufacturing Purchasing Managers' Index, or PMI, fell to 51.2 in May from 51.6 in April.
 Idea Cellular completes sale of 9,900 standalone towers to ATC for Rs .4,000cr.
 Maruti Suzuki targets to sell over two lakh automatic cars in 2018-19.
 Government increases its stake in IDBI Bank by 5% by acquiring 109.7 crore shares to 85.96%.
 RCom settles Ericsson row prompting a halt on insolvency process.
International News
 The UK manufacturing Purchasing Managers' Index rose unexpectedly to 54.4 in May from a 17-month low of 53.9 in April.
 The manufacturing sector in Japan continued to expand in May with a manufacturing PMI score of 52.8, although down from 53.8 in
April
 Capital spending in Japan was up 3.4 percent in the first quarter of 2018. That exceeded expectations for 3.1 percent but slowed
from 4.3 percent in the three months prior.
 China's Caixin Purchasing Managers' Index remained unchanged at 51.1 in May.
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)
25-May-18 67.77 90.42 79.28 0.619 76.44 1302.25
28-May-18 67.43 89.78 78.46 0.616 75.30 1299.04
29-May-18 67.87 89.92 78.33 0.623 75.39 1298.77
30-May-18 67.44 89.57 78.44 0.620 77.50 1301.38
31-May-18 67.41 89.89 78.83 0.620 77.59 1298.51
01-Jun-18 67.06 89.34 78.47 0.614 76.79 1293.40
Change -1.04% -1.19% -1.02% -0.78% 0.46% -0.68%