Opening Bell 19.09.2014

Your world at 9am

world.2014-09-19

Equities

Major
DAX(DEU) +1.41%
CAC(FRA) +0.75%
UKX(GBR) +0.57%
NKY(JPN) +1.45%
SPX(USA) +0.49%
MINTs
JCI(IDN) +0.46%
INMEX(MEX) +0.29%
NGSEINDX(NGA) -0.11%
XU030(TUR) -2.10%
BRICS
IBOV(BRA) -1.24%
SHCOMP(CHN) -0.32%
NIFTY(IND) +1.75%
INDEXCF(RUS) -0.05%
TOP40(ZAF) +0.90%

Commodities

Energy
Brent Crude Oil -0.02%
Ethanol +1.14%
Heating Oil +0.05%
Natural Gas -0.10%
RBOB Gasoline +0.37%
WTI Crude Oil -0.08%
Metals
Copper +0.00%
Gold 100oz +0.00%
Palladium -0.13%
Platinum -0.14%
Silver 5000oz +0.00%

Currencies

USDEUR:+0.01% USDJPY:+0.48%

MINTs
USDIDR(IDN) +0.14%
USDMXN(MEX) +0.14%
USDNGN(NGA) +0.65%
USDTRY(TUR) +0.22%
BRICS
USDBRL(BRA) +0.30%
USDCNY(CHN) -0.05%
USDINR(IND) -0.11%
USDRUB(RUS) +0.26%
USDZAR(ZAF) +0.08%
Agricultural
Cattle -0.06%
Cocoa +0.98%
Coffee (Arabica) -2.14%
Coffee (Robusta) -1.30%
Corn -0.15%
Cotton +0.00%
Feeder Cattle +0.13%
Lean Hogs +1.82%
Lumber +0.33%
Orange Juice +1.34%
Soybean Meal -0.40%
Soybeans -0.36%
Sugar #11 -1.08%
Wheat -0.51%
White Sugar -0.91%

Credit Indices

Index Change
Markit CDX EM -0.02%
Markit CDX NA HY +0.48%
Markit CDX NA IG -2.78%
Markit CDX NA IG HVOL -2.94%
Markit iTraxx Asia ex-Japan IG -0.71%
Markit iTraxx Australia +0.09%
Markit iTraxx Europe -2.01%
Markit iTraxx Europe Crossover -7.24%
Markit iTraxx Japan +0.16%
Markit iTraxx SovX Western Europe +0.05%
Markit LCDX (Loan CDS) +0.00%
Markit MCDX (Municipal CDS) +1.33%
Looks like the “NO” vote is winning in Scotland – so all quiet on the macro front. NKY up in the morning and SPX ended in the green. Looks like a nice way to end the week overall…

Must reads

.
Modi to launch ‘Make in India’ campaign next week. (FP)

Chinese jewellery fabrication demand had dropped 22% to 351 tonnes in the first half of 2014. India saw retail demand fall 18% to 296 tonnes. Overall, GFMS expects physical gold buying, which includes retail, central bank and investment demand, to fall 15.9% to 4,174 tonnes in 2014. (FT) GOLDBEES 2,480.00 -18.65 (-0.75%)

Substituting renewable energy for coal to produce electricity is feasible and increasingly economical. And America is souring on coal. (SierraClub)

Innovation always finds itself slammed by legal and bureaucratic action. (LiveMint) But the biggest lever that incumbents have against disruptors is regulation. (The Disruptor’s Dilemma)

Good luck and have a nice weekend!

Opening Bell 18.09.2014

Your world at 9am

world.2014-09-18

Equities

Major
DAX(DEU) +0.30%
CAC(FRA) +0.50%
UKX(GBR) -0.17%
NKY(JPN) +1.01%
SPX(USA) +0.13%
MINTs
JCI(IDN) +0.10%
INMEX(MEX) +0.39%
NGSEINDX(NGA) +0.20%
XU030(TUR) +0.37%
BRICS
IBOV(BRA) -0.01%
SHCOMP(CHN) +0.37%
NIFTY(IND) +0.54%
INDEXCF(RUS) -1.89%
TOP40(ZAF) -0.15%

Commodities

Energy
Brent Crude Oil -0.61%
Ethanol -0.53%
Heating Oil -0.45%
Natural Gas -0.32%
RBOB Gasoline -0.26%
WTI Crude Oil -0.65%
Metals
Copper +0.00%
Gold 100oz -1.47%
Palladium -1.42%
Platinum -0.87%
Silver 5000oz +0.00%

Currencies

USDEUR:-0.04% USDJPY:+0.18%

MINTs
USDIDR(IDN) +0.46%
USDMXN(MEX) +0.12%
USDNGN(NGA) +1.03%
USDTRY(TUR) +0.09%
BRICS
USDBRL(BRA) +1.12%
USDCNY(CHN) +0.05%
USDINR(IND) -0.24%
USDRUB(RUS) +0.26%
USDZAR(ZAF) +0.15%
Agricultural
Cattle -0.70%
Cocoa +1.74%
Coffee (Arabica) -0.42%
Coffee (Robusta) +1.58%
Corn -0.29%
Cotton +0.00%
Feeder Cattle +0.00%
Lean Hogs -1.14%
Lumber -0.21%
Orange Juice -0.28%
Soybean Meal +0.21%
Soybeans +0.33%
Sugar #11 +3.17%
Wheat -0.50%
White Sugar +0.51%

Credit Indices

Index Change
Markit CDX EM +0.22%
Markit CDX NA HY -0.22%
Markit CDX NA IG +0.14%
Markit CDX NA IG HVOL +0.71%
Markit iTraxx Asia ex-Japan IG +3.37%
Markit iTraxx Australia +1.83%
Markit iTraxx Europe +2.18%
Markit iTraxx Europe Crossover +11.59%
Markit iTraxx Japan +0.50%
Markit iTraxx SovX Western Europe +0.45%
Markit LCDX (Loan CDS) +0.00%
Markit MCDX (Municipal CDS) +0.62%
NKY up in the morning, SPX up overnight. Gold at 4-year lows. NIFTY opens in the red…

Must reads

Fed: the first rate hike in in eight years is likely to come sometime next year. The $15 billion a month QE will end at its next meeting. But don’t worry, the easy money supply is not going away. ECB, BOJ and PBOC – representing 40% of world GDP – are in easing mode. And India is set to join them. (WSJ, Cheat Sheet)

Ikea is looking to buy land parcels for constructing stores spread over 5-6 acre, to spend Rs 500 crore on each store. What real-estate glut? (DNA)

Loose lips sink ships? Just so we are clear: EPFO not considering any proposal to invest in stock markets. (LiveMint)

GM food haters can go kill themselves. Researchers have completed the second of three major steps needed to turbocharge photosynthesis in crops such as wheat and rice, something that could boost yields by around 36 to 60 percent for many plants. Because it’s more efficient, the new photosynthesis method could also cut the amount of fertilizer and water needed to grow food. (MIT)

You can now attach your iPad directly to your face to experience virtual reality. (Verge)

Good luck!

Institutional Investing Trends

A quick update to our II Trend report from last month.

Foreign Institutional Investors keep the faith

FII invested $1742.07 million in debt vs $1221.89 million in equities so far in Septmeber.

fii-investments.2012-01-01.2014-09-15

fii-investments-equities.2012-1-1.2014-09-15

Domestic Institutionals were obsessed with debt

In September, DIIs invested Rs 20,379.6 cr in debt vs. -310.5 cr in equity.

dii-investments.2012-01-01.2014-09-15

dii-investments-equity.2012-1-1.2014-09-15

dii-investments-debt.2012-1-1.2014-09-15

A trade for everyone

Not sure what I like better – debt or equity. Debt investors will benefit from the falling interest rate environment in AAA paper and shrinking defaults in sub-primes. Equity investors will benefit from improving balance-sheets and an improving demand-side equation. Stay tuned…

Opening Bell 2014.09.17

Your world at 9am

world.2014-09-17

Equities

Major
DAX(DEU) -0.28%
CAC(FRA) -0.44%
UKX(GBR) -0.18%
NKY(JPN) +0.12%
SPX(USA) +0.75%
MINTs
JCI(IDN) +0.98%
INMEX(MEX) -0.01%
NGSEINDX(NGA) -0.30%
XU030(TUR) +1.08%
BRICS
IBOV(BRA) +2.01%
SHCOMP(CHN) -0.06%
NIFTY(IND) -1.36%
INDEXCF(RUS) +1.59%
TOP40(ZAF) -0.32%

Commodities

Energy
Brent Crude Oil -0.10%
Ethanol +0.00%
Heating Oil -0.07%
Natural Gas -0.30%
RBOB Gasoline +0.28%
WTI Crude Oil -0.11%
Metals
Copper -0.66%
Gold 100oz +0.00%
Palladium -0.25%
Platinum +0.05%
Silver 5000oz +0.00%

Currencies

USDEUR:+0.04% USDJPY:+0.06%

MINTs
USDIDR(IDN) -0.42%
USDMXN(MEX) +0.09%
USDNGN(NGA) -0.16%
USDTRY(TUR) +0.09%
BRICS
USDBRL(BRA) -0.48%
USDCNY(CHN) -0.04%
USDINR(IND) -0.14%
USDRUB(RUS) -0.15%
USDZAR(ZAF) +0.08%
Agricultural
Cattle +0.85%
Cocoa -1.76%
Coffee (Arabica) +1.58%
Coffee (Robusta) -0.35%
Corn -0.07%
Cotton +0.00%
Feeder Cattle +0.26%
Lean Hogs +0.91%
Lumber -1.13%
Orange Juice -1.52%
Soybean Meal +0.27%
Soybeans +0.56%
Sugar #11 -0.37%
Wheat -0.10%
White Sugar +3.13%

Credit Indices

Index Change
Markit CDX EM -0.05%
Markit CDX NA HY -0.33%
Markit CDX NA IG +1.47%
Markit CDX NA IG HVOL +1.91%
Markit iTraxx Asia ex-Japan IG +2.89%
Markit iTraxx Australia +1.24%
Markit iTraxx Europe +1.93%
Markit iTraxx Europe Crossover +6.41%
Markit iTraxx Japan +0.00%
Markit iTraxx SovX Western Europe +0.40%
Markit LCDX (Loan CDS) +0.00%
Markit MCDX (Municipal CDS) +0.79%
SPX up overnight and NKY in the green this morning. Fed and Scotland occupy investor mindshare…

Must reads

Indian business has been on a decade-long binge, more than doubling its debt to 50% of gross domestic product last year to roughly $900bn. (FT) LiveMint’s three key takeaways from India’s debt crisis (LiveMint):

  1. The governance and management of banks in India need urgent overhaul.
  2. Rules for promoters have been far too soft for far too long, and that needs to change.
  3. We must resist the temptation for any kind of bailouts, whether it is through special packages for stressed sectors or through state owned asset reconstruction companies.

Banks are cutting deposit rates. “…abundant liquidity in the system even as credit pick-up remained slower than expected.” (TI)

Kingfisher Airlines: Wilful defaulter norms don’t apply to us. (FE)

Good luck!

Options Daily 17.09.2014

Nifty OI

nifty.puts.calls.SEP.2014-09-15.2014-09-16

Bank Nifty OI

bank-nifty.puts.calls.SEP.2014-09-15.2014-09-16

Anomalous Option Trades

A sudden increase or decrease in open interest can signify informed buying/selling that you can potentially profit from. Option traders tend to ‘lead the pack’ and their actions can be used to gain insight into the consensus opinion of traders. This scan lists option trades that were one standard deviation away from the average over the last 20-days. Note that this scan maybe too noisy around expiry.

You can download the data here.

Check out our Option Strategy Studio. One more reason to open a demat account with us.