{LONGTERMINVESTORS} Fwd: Daily Market Report - September 2, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Fri, Sep 2, 2016 at 5:36 PM
Subject: Daily Market Report - September 2, 2016
To: stockdesai@gmail.com

Domestic market developments Indian equities ended in the green today with the Sensex touching a 16-month high. Gains were led by banking, auto and telecom stocks. Markets will track further cues from the August US nonfarm payrolls print, due later today. Nifty and Sensex ended higher by 0.4% each. Indian Rupee ended stronger vis-à-vis the US Dollar, closing at 66.82 levels vs. the previous close of 66.95. Reported Dollar sales by foreign banks aided the domestic currency, though Dollar bids by state-owned banks capped the upside. Indian Government bonds ended little changed today as the Government auctioned the new 10Y bond with a cut off yield of 6.97%, along expected lines. Market participants exercised caution ahead of the crucial US jobs data. The 10Y benchmark yield ended at 7.12%, same as the previous close. RBI withdrew liquidity to the tune of INR 872.72 bn (net) under LAF (including fixed and variable rate repos and reverse repos), as of September 1st. It injected INR 17.95 bn and INR 2.00 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 as market participants wait for US nonfarm payrolls report. Hang Seng (+0.45%), Kospi (+0.18%), Shanghai Composite (+0.14%) and Nikkei (+0.40%) ended higher. Meanwhile Japan's Nikkei ended flat. The Dollar Index is trading slightly higher today, ahead of the release of crucial nonfarm payrolls data for August, which is expected to give investors insight into the possible timing of the next rate hike. Both the Euro and Japanese Yen are trading slightly weaker vis-à-vis the US Dollar. The Pound Sterling is trading flat relative to the US Dollar. On the data front, Eurozone producer prices for July contracted by 2.8%YoY from (-) 3.1%YoY levels previously. UK Construction PMI for August came in higher at 49.2 from prior print of 45.9 levels. However, the data prints seem to have very limited impact on the currencies as investors await US employment data. Apart from this, the 11th G20 summit in Hangzhou, China on 4-5th September will also be closely tracked. US Treasuries are trading slightly lower today as market participants wait for the US employment data. The 10Y benchmark yield is currently trading at 1.59% vs. the previous close of 1.57%. Commodity market developments Crude is trading higher today as Russian President Vladimir Putin reportedly said that an output freeze agreement between key producers would be the right decision to stabilise oil prices. However, strength in the US Dollar is likely capping gains. WTI and Brent are currently trading at USD 44/bbl and USD 46/bbl respectively. Gold is trading lower today as the US Dollar gained momentum intraday. Markets remain cautious ahead of the crucial nonfarm payrolls print, due later today. The yellow metal is currently trading at USD 1312/oz. Regards, ICICI Bank Contact: Radhika Wadhwa (+91-22) 2653-1414 (extn: 7206) radhika.wadhwa@icicibank.com Pradeep Goyal (+91-22) 2653-1414 (extn: 6229) goyal.pradeep@icicibank.com ​

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CA. Rajesh Desai

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