{LONGTERMINVESTORS} Fwd: Daily Market Report - August 4, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Thu, Aug 4, 2016 at 5:47 PM
Subject: Daily Market Report - August 4, 2016
To: stockdesai@gmail.com

Key developments today The Bank of England (BoE) cut interest rates for the first time since 2009 from 0.50% to 0.25% in its policy decision today. The size of its asset purchase scheme was increased from GBP 375 bn to GBP 435 bn. In addition, BoE will also purchase corporate bonds up to GBP 10 bn. Domestic market developments Indian equities ended marginally in the green today, in line with their Asian peers. The passage of the GST Constitutional Amendment Bill in the Rajya Sabha yesterday anchored market sentiment today. Upbeat Q1 FY2017 earnings report aided the indices further today. Nifty and Sensex closed higher by 0.1% each. Indian Rupee ended stronger vis-à-vis the US Dollar at 66.91 levels vs. yesterday's close of 66.99. Slightly higher finish in local bourses aided the domestic currency. Reported Dollar sales by exporters and PSUs provided further support. However, Dollar bids by foreign banks capped the upside. Indian Government bonds ended higher today. Upbeat domestic sentiment and reported value buying in the bond market anchored the domestic bonds today. However, traders refrained from making significant position ahead of the auction of Government bonds worth INR 150 bn tomorrow. The 10Y benchmark yield ended at 7.17% vs. yesterday's close of 7.20%. RBI withdrew liquidity to the tune of INR 555.52 bn (net) under LAF (including fixed and variable rate repos and reverse repos), as of August 3rd. It injected INR 19.06 bn under Special Refinance Facility. Global Market Snapshot *Weighted Average (WAR) over the day Global market developments Asian equities ended in the green today, in line with US equities. Gains in the region were led by Nikkei (+1.1%) and Hang Seng (+0.4%). Following suit, Shanghai Composite, Kospi and Australia's ASX rose 0.1%, 0.3% and 0.2% respectively. Going ahead, a slew of data from China (trade, inflation, retail sales and aggregate financing) due next week will be closely watched. The Pound Sterling plunged over 1% vis-à-vis the US Dollar post the Bank of England policy decision. The currency depreciated to ~1.31 levels as against yesterday's close of 1.3325. The Euro is trading weaker against the greenback as Eurozone's retail sales in June came in flat. The Dollar Index is trading stronger on the back of a higher than expected ADP employment change data. The reserve currency is likely to track cues from July's nonfarm payrolls (NFP) print, due tomorrow. Meanwhile, the Japanese Yen is trading little changed relative to the US Dollar. US Treasuries are trading higher today ahead of the crucial US NFP print due tomorrow. The 10Y benchmark yield is presently at 1.51% vs. the prior close of 1.54%. Commodity market developments Crude oil is trading lower, as oversupply concerns gripped markets. US Energy Information Administration (EIA) data indicated that US crude oil stockpiles rose by 1.4 million barrels last week. WTI and Brent are currently trading at USD 41/bbl and USD 43/bbl respectively.   Gold is trading higher today as the Bank of England cut interest rates in its policy decision today. However, Dollar strength is likely to cap the gains. The yellow metal is trading at USD 1361/oz. Regards, ICICI Bank Contact: Niharika Tripathi (+91-22) 2653-1414 (extn: 6943) niharika.tripathi@icicibank.com Sonal Surana (+91-22) 2653-1414 (extn: 7243) sonal.surana@icicibank.com Radhika Wadhwa (+91-22) 2653-1414 (extn: 7206) radhika.wadhwa@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.