{LONGTERMINVESTORS} Fwd: Daily Market Report - August 24, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Wed, Aug 24, 2016 at 5:20 PM
Subject: Daily Market Report - August 24, 2016
To: stockdesai@gmail.com

Key developments today Officials from the Indian Meteorological Department forecasted that the country is likely to receive normal, and not surplus rains this year as chances of La Nina activity seem to be diminishing. Domestic market developments Indian equities ended in the green today. Gains were primarily led by stocks of pharma companies. Markets tracked upbeat global mood as the sharp uptick in data prints from the US raised hopes of a rate hike by the US Federal Reserve this year. However, Janet Yellen's speech on Friday will remain critical. Nifty and Sensex settled 0.2% and 0.3% up respectively. Indian Rupee ended marginally weaker vis-à-vis the US Dollar at 67.11 levels vs. yesterday's close of 67.06. Gains in the greenback amid upbeat economic data from the US weighed on the domestic currency today. Further, reported Dollar purchases by oil importers added to pressure on the Rupee. Indian Government bonds ended higher with the 10Y benchmark yield at 7.14% vs. yesterday's close of 7.16%. Reportedly, markets witnessed some correction in portfolios after the recent sessions of heavy sell-offs, thereby aiding gilts today. However, some weakness in the domestic currency capped gains. RBI withdrew liquidity to the tune of INR 403.79 bn (net) under LAF (including fixed and variable rate repos and reverse repos), as of August 23rd. It injected INR 16.0 bn and INR 8.3 bn under Special Refinance Facility and Marginal Standing Facility respectively. Global Market Snapshot *Weighted Average (WAR) over the day Global market developments Asian equities ended mixed today. Caution ahead of the Fed Chair speech on Friday kept investors waiting on the sidelines. Marginal depreciation in the Japanese Yen provided some respite to stocks. Nikkei (0.6%) and Australia's ASX (0.1%) ended higher. Meanwhile, Hang Seng (-0.8%), Shanghai Composite (-0.1%) and Kospi (-0.3%) finished lower. The Dollar index is trading steady amid upbeat data releases from the US. Going ahead, the upcoming speech by Fed Chair at Jackson Hole will take centre stage. The Pound is trading stronger vis-à-vis the greenback, rising to its 1.32 threshold today. Stronger than expected data prints, released recently, continue to lend positive cues to the Sterling. Meanwhile, the Euro is trading weaker with respect to the US Dollar, having slipped to the 1.12 handle this morning. Recent comment from an ECB official on the need for further monetary easing in light of weaker pace of structural reforms in the Euro-area is weighing on the common currency. In other news, an earthquake of 6.2 magnitude struck central Italy today. The Yen is trading slightly weaker today. Japan's Government, in a report released by the Cabinet Office in Tokyo, highlighted some signs of weakness seen recently in the country, though overall, the economy is broadly on a moderate recovery path. US Treasuries are trading little changed as markets remain muted in anticipation of the speech by Fed Chair this week. The 10Y benchmark yield is currently at 1.55%, same as yesterday's close. Commodity market developments Crude is extending losses today as oversupply concerns continued to weigh. Unexpected built-up in US crude inventory further exacerbated pressure on the commodity. Gold prices are little changed today as market participants await Janet Yellen's speech later this week. Regards, ICICI Bank Contact: Sonal Surana (+91-22) 2653-1414 (extn: 7243) sonal.surana@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.