The World This Week 8th June – 15th June, 2018 From Karvy Wealth

1. The World This Week
8th June – 15th 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 benchmark equity indices Sensex , closed with a marginal gain of 0.50% on WoW basis. The market remained volatile with key
events like , de-nuclearisation of the Korean peninsula, U.S. Fed. hiking rates by 0.25% and ECB announcing end of quantitative
easing. The Pharma Indices was a clear winner gaining by 6.53% on a WoW basis followed by the IT indices , though Metals and
O&G were a drag on the indices.
 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, yield eased by 6bps to close at 7.89% v/s the previous close of 7.95% .
 A rebound in food inflation and a jump in fuel prices in May led to wholesale inflation in the country rising to 4.43 per cent, from
3.18 per cent in April, its fastest uptick in 14 months , which subsequently pushed the yields higher. IIP for the month of April
expanded to 4.9% yoy, higher than the 4.6% when compared to previous month.
 We expect the 10-year G-sec yield to trade in a range of 7.60%-7.90% in near term.
Key announcements in the month Release Date
Foreign Exchange Reserves16/JUN 22 June 2018
Government Budget Value MAY 29 June 2018
External Debt Q1 29 June 2018
BSE Sectoral -Indices
Date Sensex Auto Bankex CD FMCG HC IT Metals O&G Power Realty
08-Jun-18
35444 24960 29593 20413 11204 13425 13556 13854 14647 2053 2216
11-Jun-18
35483 24989 29609 20624 11245 13493 13583 13806 14616 2053 2200
12-Jun-18
35693 25000 29813 20697 11328 13756 13663 13729 14657 2057 2207
13-Jun-18
35739 24995 29895 20814 11280 13835 13839 13676 14656 2052 2212
14-Jun-18
35600 25007 29751 20628 11260 14038 13645 13615 14555 2039 2208
15-Jun-18
35622 24850 29558 20518 11217 14301 13951 13406 14397 2017 2183
Change 0.50% -0.44% -0.12% 0.51% 0.12% 6.53% 2.91% -3.23% -1.71% -1.76% -1.50%
Net Investments ( INR Cr)
Date FII DII
08-Jun-18 -223
459
11-Jun-18 -1157
1063
12-Jun-18 -1169
1327
13-Jun-18 -71
487
14-Jun-18 -1373
576
15-Jun-18 -1525
561
Total -5517 4474
Key Indicators
GDP (Q4 FY'18) 7.70%
Manufacturing PMI (Apr'18) 51.20
Current Account Deficit (Q3 of FY18, in $ Billion) 13
Fiscal Deficit (FY 2018, as a % of GDP) 3.53%
Credit Growth (May 11,2018) 13.10%
Deposit Growth (May 11,2018) 8.50%
Parrallel Shift of the yield curve YoY
FBIL CD Rates
0
1
2
3
4
5
6
7
8
9
15-06-2018
15-06-2017
0
1
2
3
4
5
6
7
8
9
15-06-2018
08-06-2018

2. Domestic News
 20 states have signed memorandums of understanding with the Centre to implement the National Health Protection Scheme
 TCS board approves proposal to buy back up to 76 mn shares worth Rs 160 bn
 Dr Reddy’s Lab has received USFDA's final approval and has launched buprenorphine and naloxone sublingual film in US market.
 ICICI Bank has filed a case against Punj Lloyd in NCLT, New Delhi for insolvency and bankruptcy proceedings for recovery of
outstanding dues of Rs852 crore but was opposed by State Bank of India
 Taiwan co, Adani may join hands to set up INR400 bn petrochemical project
International News
 The Federal Reserve raised its key interest rate by a quarter point to 2%, as expected.
 Industrial production in China was up 6.8 percent on year in May. That was shy of expectations for 7.0 percent,
 Trump-Kim summit marked the de-nuclearisation of the Korean peninsula
 The European Central Bank plans to start exiting its massive quantitative easing by the end of this year, despite strong headwinds
clouding the outlook for the single currency economy
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)
08-Jun-18 67.51 90.45 79.28 0.620 76.46 1298.17
11-Jun-18 67.43 90.02 79.46 0.613 76.46 1300.49
12-Jun-18 67.49 90.32 79.51 0.612 75.88 1295.97
13-Jun-18 67.64 90.16 79.52 0.612 76.74 1299.31
14-Jun-18 67.63 90.80 79.97 0.615 75.94 1302.25
15-Jun-18 68.02 90.34 78.84 0.615 73.44 1278.94
Change 0.75% -0.12% -0.56% -0.71% -3.95% -1.48%