{LONGTERMINVESTORS} Fwd: Daily Market Report- November 16, 2016

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Wed, Nov 16, 2016 at 5:41 PM
Subject: Daily Market Report- November 16, 2016
To: stockdesai@gmail.com

Domestic market developments: Indian equities ended little changed today. However, intraday trade remained choppy. Going ahead, change in global risk appetite and passage of key bills (such as the GST Bill) in the Winter Session of the Parliament will remain key. Nifty and Sensex ended flat. Indian Government bonds ended higher today. Liquidity boost from the Government's demonetisation step and cooling inflation has aided gilts. However, profit booking limited the upside. The benchmark 10Y yield ended at 6.44% vs. yesterday's close of 6.53%. Indian Rupee weakened against the Dollar. Reported Dollar purchases by PSU banks for oil and defence related payments weighed on the domestic currency. USDINR pair closed at 67.94 vs. yesterday's close of 67.74. RBI withdrew liquidity to the tune of INR 1434.68 (net) under LAF (including fixed and variable rate repos and reverse repos), as of November 15th. It injected INR 32.75 bn and INR 17.62 bn under Marginal Standing Facility and Special Refinance Facility, respectively. Global Market Snapshot *Weighted Average (WAR) over the day Global market developments: Asian stocks ended largely in the green today, tracking cues from US markets. Global turmoil following Donald Trump's victory has moderated slightly and is aiding risk appetite. Gains are being led by Nikkei (+1.1%) and Kospi (+0.6%). Australia's ASX ended with a slight positive bias. Meanwhile, Chinese equities edged lower dragged down by losses in coal sector. Shanghai Composite and Hang Seng closed down 0.1% and 0.2% respectively. US Dollar index continued to strengthen today. Factoring in of substantial fiscal stimulus to the US economy under Donald Trump and rising interest rate expectations have boosted the Dollar to above 100 levels. Fed official James Bullard said that there's a chance the U.S. economy could get a medium-term boost if President-elect Donald Trump boosts infrastructure spending and tax reforms. On the data front as well prints from the US have been broadly positive (U. Mich. Sentiment index, retail sales etc.). Consequently, the Euro, Pound and Japanese Yen have weakened against the greenback. US Treasury yields continued to move higher today. Increasing expectation of a December Fed rate move and higher inflation prospects in the US (stemming from President-elect Trump's policies) has pushed yields up recently.The 10-year benchmark yield is at 2.27% vs. yesterday's close of 2.22%. Commodity market developments: Crude oil prices had surged over 5.7% yesterday amid news of informal talks between Russia and few OPEC producers on November 17th-18th. Thereafter, prices have fallen today as IEA boosted its US oil outlook in 2020 amid growth from shale oil. Gold is trading lower today. Broad based strength in the greenback is weighing on the yellow metal. Going ahead, developments in the US (specifically on the policy front) will be critical. Bullion is currently hovering at USD 1224/oz. Regards, ICICI Bank Contact: Niharika Tripathi (+91-22) 2653-1414 (extn: 6943) niharika.tripathi@icicibank.com ​

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CA. Rajesh Desai

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