MARKET OUTLOOK:-

The 10yr government bond yield increased 0.91% to 6.544 from 6.485 in the previous week.US 10yr benchmark decreased approximately 5.17% to 2.054 from previous week level of 2.166.

The G-sec yields ended mixed this week. The new 10 year benchmark, 6.79% G-sec maturing in 2027, ended at 6.5427% while the old 10 year benchmark, 6.97% maturing in 2026, ended at 6.7504%

Nikkei Manufacturing PMI in India unexpectedly jumped to 51.2 in August 2017 from 47.9 in July as disruptions stemming from confusion over GST eased. The Nikkei Services PMI contracted for second straight month at 47.5 in August 2017 from 45.9 in the previous month. The country’s foreign exchange reserves increased to $398120 million on Sept1 from previous week level of $394550 million.

Rupee closed at 63.785 per dollar vs previous week close of 64.04 per dollar. Gold trades at Rs 30388/10gms, silver at Rs 41097/kg. Gold prices hit a fresh 1yr high this week as the dollar sagged on the back of weaker than expected US jobs data. Crude oil ended at $47.56 per barrel this week.US oil prices dropped by more than 3% on Friday to the lowest finish in a week as refineries saw a slow recovery from flooding due to Hurricane Harvey, which made landfall on the Texas coast two weeks ago.

FIIs stood net buyers in domestic debt market this week with net investment of Rs 5344.75cr compared to Rs 2985.6cr last week.

On the global front, no. of Americans filing for unemployment benefits jumped to a more than 2year high last week.

 

FII/FPI  IN DEBT MARKET

DATE PURCHASES SALES NET(cr)
As on 8th Sept 5344.75 2985.6 2359.15
As on 1st Sept 4073.96 2314.75 1759.21

GLOBAL INDICES

INDEX As on 8th September As on 4th September %Chg
S&P BSE SENSEX 31687.52 31702.25 -0.05%
NIFTY 50 9934.8 9912.85 0.22%
NASDAQ 6397.87 6435.33 -0.58%
FTSE 100 7367.18 7419.86 -0.71%

POLICY RATES

INSTRUMENT Rate
Policy Repo Rate 6.00%
Reverse Repo Rate 5.75%
MSFR 6.25%
Bank Rate 6.25%
CRR 4.00%
SLR 20.00%

EXCHANGE RATES

RATE As on 8th September As on 4th September %Chg
INR/$ 63.785 64.04 -0.40%
EUR/INR 76.765 76.182 0.77%
GBP/INR 84.186 82.814 1.66%
JPY/INR 0.5914 0.5832 1.41%

MACRO DATA

PARTICULARS CURRENT PREVIOUS
FOREIGN EXCHANGE RESERVES(01/SEP) $398.12B $394.55B
Nikkei Manufacturing PMI 51.2 47.9
Nikkei Services PMI 47.5 45.9

DOMESTIC INDICATORS

INSTRUMENT As on 8th September As on 1st September
10 yr bond yield 6.544 6.485
1yr bond yield 6.28 6.270
3yr bond yield 6.383 6.393
US 10 yr benchmark yield 2.054 2.166

G-SEC YIELDS

Securities Maturity 8th Sept 1st Sept
06.35 GS 2020 02/01/2020 6.3350% 6.3200%
07.68 GS 2023 15/12/2023 6.6404% 6.5857%
07.35 GS 2024 22/06/2024 6.7202% 6.6836%
07.59 GS 2026 11/01/2026 6.8463% 6.8100%
08.60 GS 2028 02/06/2028 6.915% 6.9600%

COMMODITY

INSTRUMENTS As on 8th Sept As on 1st Sept %Chg
CRUDE OIL 47.56 47.29 0.57%
GOLD 30388 29742 2.17%
SILVER 41097 39784 3.30%

Recommended Tax Free Bonds

Bond Name Maturity Coupon LTP YTM Volume Rating
NHAI NA 11 JAN 31 7.60% 1169.37 6.11% 1.705 AAA
REC 05 NOV 35 7.43% 1185 6.26% 0.021 AAA
REC N9 24 sep 28 8.71% 1274 6.12% 0.02 AAA/STABLE
IRFC N7 18 FEB 24 8.235 1150 6.04% 7 AAA/STABLE

Recommended Taxable Bonds

Bond Name Maturity Coupon LTP YTM Volume

( in 000’s)

Rating
IIHFL N2 02 APR 20 12.00% 1094 12.13% 0.605 AA-
DHFCL NC 16 AUG 26 9.30% 1046.5 10.22% 0.226 AAA
DHFCL  NN 09 SEP 21 9.15% 1003.08 11.89% 0.275 AAA

DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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