{LONGTERMINVESTORS} Fwd: Daily Market Report- June 28, 2016

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From: <research@icicibank.com>
Date: Tue, Jun 28, 2016 at 5:52 PM
Subject: Daily Market Report- June 28, 2016
To: stockdesai@gmail.com

Key developments today Markets will closely track the ongoing two-day European Union Leaders summit in Brussels. Domestic market developments Indian equities ended in the green today, ahead of the likely Union Cabinet meeting to consider recommendations of the seventh pay commission tomorrow. Gains were led by banking, consumer durables, and capital goods stocks. Sensex and Nifty closed higher by 0.5% and 0.4% respectively. Indian Rupee ended little changed vis-à-vis the US Dollar at 67.95 levels vs. the prior close of 67.95. The domestic currency trimmed early morning gains amid Dollar bids by importers. However, broad-based weakness in the greenback and positive finish in local indices lent support to the Rupee. Indian Government bonds ended slightly higher today. A relatively stronger Rupee aided gilts. However, rising US Treasury yields and increasing oil prices capped the upside. Gilts are likely to track further cues from Thursday's state loan auction. The 10Y benchmark yield closed at 7.45% vs. yesterday's close of 7.46%. RBI provided liquidity to the tune of INR 574.18 bn (net) under LAF (including fixed and variable rate repos and reverse repos), as of June 27th. It injected INR 21.06 bn and INR 0.4 bn under Special Refinance Facility and Marginal Standing Facility respectively. Global market snapshot Global market developments Asian equities ended mixed, in the aftermath of UK's decision to exit the European Union. A relatively weaker Yen following Japan's commitment to take necessary steps to check undue appreciation of the currency, aided Japanese stocks today. Nikkei (+0.1%), Shanghai Composite (+0.6%) and Kospi (+0.5%) closed higher. Meanwhile, Hang Seng (-0.3%) and Australia's ASX (-0.7%) posted losses. The Pound Sterling is trading firm today, though recent slump on the back of uncertainty regarding the new terms of agreement between the EU and the UK remain overarching. In other news, UK Chancellor George Osborne commented that the UK Government will be forced to cut spending and increase taxes to deal with the fallout of Brexit. The Dollar index is trading weaker at 95.874 levels today. The Japanese Yen is also trading weaker relative to the greenback, on account of comments from PM Shinzo Abe and Taro Aso indicating the readiness of the Japanese Government to intervene, if necessary, to curb sharp movements in the currency markets. Meanwhile, Euro is trading stronger today. US Treasuries are trading lower today, amid some recovery in Asian markets. The 10Y benchmark yield is currently trading at 1.47% vs. the previous close of 1.44%. Commodity market developments Crude oil is trading higher today. Threats by oil and gas field workers in Norway that could lead to strike in the region, potentially hampering the country's output supported crude prices today. WTI and Brent are currently hovering around USD 47/bbl and USD 48/bbl respectively. Gold continues to trade under pressure today. Reported profit booking amid the recent surge in prices weighed on the bullion today. However, overarching risk-off sentiment surrounding concerns regarding UK's separation from the EU bloc limited losses. The yellow metal is currently trading at USD1310/oz. Regards, ICICI Bank Contact: Sonal Surana (+91-22) 2653-1414 (extn: 7243) sonal.surana@icicibank.com Radhika Wadhwa (+91-22) 2653-1414 (extn: 7206) radhika.wadhwa@icicibank.com ​

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CA. Rajesh Desai

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