2. Last week at the Financial Markets!!!
• SENSEX down by 581.79 points (-2.87%) and closed to 19704.33
at end of the week
• (FIIs) were net buyers in equity segment leading to net inflow of
Rs. 6525.10 Crore
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News Impact
• US FED chairman Ben Bernanke said
that US central bank could slow down
its asset purchase program in the next
few months.
• In short term, profit booking could be seen
in “risk-on” assets.
• Inflation will reduce.
• Medium term “risk on” asset will out
perform as economic growth will recover.
• IT sector will be benefited.
• Rupee made its 8 month low to 56.02
level.
• Imports will be costlier.
• Exporters will get an advantage of rupee
depreciation.
• Current account deficit will increase.
3. Last week at the Financial Markets!!!
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Price Performance of Different Asset Class
There was a concern
that if stimulus
measures are eased in
US, the consistent
liquidity being provided
by the foreign investors
will get impacted.
4. Next Week in the Financial Markets….?
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• Q4 results of the following companies will provide the next
impact :
Coal India, Sun Pharma, Cipla, Wockhardt, Gail India,Power Grid Corp, MCX.
• January-March quarter GDP data is expected to be released on
May 31st 2013.
• Derivative contracts will expire on May 30th 2013.
5. Hot Topic of the Week
Japan’s Economy
Key Economic Parameters
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6. • Japan is one the leading export country in the world.
• This week Japan’s stock market fell more than 7% in a single day,
G-Sec Yield increased, and YEN appreciated. This triggered fall in
Indian and other world markets also because all the economies
and their financial markets co-relates with each other.
• So it becomes important to understand the economic
parameters of Japan at this point of time.
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Hot Topic of the Week
8. Money Supply by Bank of Japan
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Money supply stood
all time high at
8,44,548 JPY Billion
in April 2013
9. Knowledge Plus for Wealth +
After 34% depreciation in
YEN in the last few months,
YEN appreciated against the
dollar last week. This
resulted in sell off in equity
markets across Asia.
USD/YEN Pair
11. Export Price Index
• Currently, historical average price of export is at 140 level.
• All time high level was 207.30 in October, 1982
• A record low level was 94 in January 2012.
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12. 10 year Government Bond
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Near all time low
level, possibility of
change in yield curve
Yield increased
after FED meeting.
Long term yield chart
Short term yield chart
13. Stock Market-NIKKEI 225
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Stock market rallied 52%
in last 1 yr because of
huge money supply by
bank of Japan
14. Conclusion
• After years of deflationary scenario, export oriented Japan’s
economy may be going through a structural change and this will
be reflected in next few quarters, especially on back off increase
export prices index (following by the huge depreciation in YEN).
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15. Knowledge Plus for Wealth +
Research Desk
@
VALUE PLUS - The Family Office
Office: (0265 -2324600,6629800)
Email: crm@valueplusinv.com
Website: www.valueplusinv.com
