{LONGTERMINVESTORS} Fwd: Daily Market Report - January 18, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Mon, Jan 18, 2016 at 6:53 PM
Subject: Daily Market Report - January 18, 2016
To: stockdesai@gmail.com

Domestic markets wrap-up India's trade deficit widened to USD 11.7 bn in December vs. prior of USD 9.8 bn. Exports contracted 14.8% YoY (prior :(-) 24.4% YoY), while imports contracted 3.9% YoY (prior: 30.3% YoY). Indian indices closed steeply in the red today, following downbeat global cues. Oil price slump weighed on market sentiment, in addition to pessimistic trade data for December 2015. Nifty and Sensex plummeted 1.1% and 1.2% lower respectively. Rupee ended weaker relative to the US Dollar, at 67.68 levels vs. Friday's close of 67.60. Reported Dollar purchases by financial institutions and importers are weighing on the domestic currency, coupled with strength in the greenback. Losses in domestic equities accentuated the Rupee's depreciation. Indian government bonds are trading little changed today. Gilt prices received some support on account of value buying and softness in crude prices. Meanwhile, weakness in the Rupee capped the upside. The old 10Y benchmark yield closed unchanged at 7.81% and the new 10Y benchmark ended at 7.67% (Friday's close: 7.66%). RBI provided liquidity to the tune of INR 1395.1 bn (net) under LAF (including fixed and variable rate repos and reverse repos), as of January 16th. It injected INR 23.18 bn and INR 0.55 bn under Special Refinance Facility and Marginal Standing Facility respectively. * US market holiday **Weighted Average (WAR) over the day Global market developments Asian equities ended mixed today, tracking a rout in US indices on Friday. Crucial Q4 2015 GDP data from China, slated to be released tomorrow, is expected to provide directional cues. Nikkei (-1.1%), Hang Seng (-1.5%) and Australia's ASX (-0.7%) posted sizeable losses. Meanwhile, Kospi ended flat and Shanghai Composite edged up 0.4% amid significant volatility. Dollar index is trading higher at 99.08 levels, though gains remained capped on account of US market holiday. EURUSD cross is trading at 1.0890 levels, lower than Friday's close of 1.0916. Japanese Yen, also retraced from 116 levels seen on Friday and is currently trading at 117 levels on the back of slight correction in the markets. The British Pound is trading stronger vs. the greenback and is trading at 1.4300 levels, though broadly the Sterling remains under pressure. US Treasury markets were closed today on account of a holiday. Commodity market developments Oil is trading below the USD 30/bbl threshold, falling more than 5% since the lifting of sanctions on Iran. Crude prices have plunged to over 12-year lows as markets prepare for an increase in crude supplies from Iran. WTI and Brent are trading at ~USD 29/bbl each. Gold is trading higher today, extending Friday's gains. Increased levels of risk aversion in the markets owing to downbeat performance of global equities and the persistent plunge in oil prices is raising the safe haven demand for the yellow metal. Regards, ICICI Bank Contact: Sagrika Gogia (+91-22) 4008-1414 (ext:2180) sagrika.gogia@icicibank.com

--

CA. Rajesh Desai

--
You received this message because you are subscribed to the Google Groups "LONGTERMINVESTORSRESEARCH" group.
To unsubscribe from this group and stop receiving emails from it, send an email to longterminvestorsresearch+unsubscribe@googlegroups.com.
Visit this group at https://groups.google.com/group/longterminvestorsresearch.
For more options, visit https://groups.google.com/d/optout.