{LONGTERMINVESTORS} Fwd: Daily Market Report- October 25, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Tue, Oct 25, 2016 at 5:55 PM
Subject: Daily Market Report- October 25, 2016
To: stockdesai@gmail.com

Domestic market developments: Indian equities ended today's session in the red. Intraday some stock specific movement was seen amid corporate earnings results and the recent removal of Cyrus Mistry from chairmanship of Tata Group. On the global front, risk sentiment remains cautious amid upcoming key global events (FOMC policy and US elections). Nifty and Sensex slipped 0.2% and 0.3% respectively. Indian Government bonds traded in a narrow band today. While underlying sentiment has remained supported amid Government's debt buyback (yesterday) and RBI's OMO purchase (today), market participants have held off building large positions. In key news, RBI conducted OMO purchase worth INR 100 bn today, taking the cumulative OMO intervention to ~INR 1.1 tn this fiscal. The benchmark 10Y yield ended little changed at 6.77%. Indian Rupee ended largely flat today as reported Dollar purchases by state-owned banks countered the Dollar sales by foreign banks. Broad-based strength in the greenback continued to weigh on the domestic currency. USDINR pair ended at 66.82 vs. prior close of 66.85. RBI injected liquidity to the tune of INR 641.43 (net) under LAF (including fixed and variable rate repos and reverse repos), as of October 24th. It injected INR 0.15 bn and INR 16.78 bn under Marginal Standing Facility and Special Refinance Facility respectively. Global Market Snapshot *Weighted Average (WAR) over the day Global market developments: Asian equity indices ended mixed today. Nikkei and ASX 200 closed with gains to the tune of 0.8% and 0.6% respectively, with Nikkei trading at 6-month high levels. On the other hand, Hang Seng and Kospi ended lower by 0.2%-0.4%. The Japanese Yen has been the top underperformer today, testing the technical resistance of 104.60 level vis-à-vis US Dollar. The Recent bout of weakness in the Yen is attributable to recent uplift in global risk sentiment post the release of upbeat manufacturing PMI numbers from Eurozone, US and Japan. In other news, head of BoJ's financial market division said that the new policy of targeting interest rates and the slope of the yield curve is not an attempt to peg yields at a fixed rate. BoJ is prepared to allow yields to fluctuate within a range, but that range is not a firm target. In the absence of any fresh triggers, the Euro, US Dollar index and Sterling are trading mostly range-bound today. Additionally, San Francisco Fed President John Williams said that the best time to raise rates again likely will be at its policy gathering in December. On data front, German IFO in October was above expectations across the board. Business climate was 110.5 vs. consensus forecasts of 109.6, the current assessment at 115.0 vs. 114.9, and expectations at 106.1 vs.104.5. US Treasuries are trading slightly lower today amid improved risk appetite, with 10Y Treasury yield trading at 1.79% vs yesterday's close of 1.76%. Commodity market developments: Crude oil is trading higher today, nearly paring yesterday's losses in the wake of OPEC Secretary General Mohammad Barkindo's visit to Iraq to resolve conflicts after Iraq claimed exemption from OPEC's planned production cuts. WTI and Brent are currently trading at USD 50.7/barrel and USD 51.6/barrel respectively. Gold edged higher today, erasing yesterday's losses, as investors assessed demand from India, the second-largest consumer of the yellow metal, before the country's major festival of Diwali this week. Gold is currently trading at USD 1270/oz. Regards, ICICI Bank Contact: Niharika Tripathi (+91-22) 2653-1414 (extn: 6943) niharika.tripathi@icicibank.com Pradeep Goyal (+91-22) 2653-1414 (extn: 6229) goyal.pradeep@icicibank.com Sumedha Dasgupta (+91-22) 2653-1414 (extn: 7243) sumedha.dasgupta@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.