MORNING MARKET UPDATE

MORNING MARKET UPDATE 05 Apr 2018 11:28

CURRENCY UPDATE

Rates (Ask) USD/INR EUR/USD GBP/USD EUR/INR GBP/INR AUD/USD USD/JPY USD/CHF USD/CAD

65.0675 1.2273 1.4065 79.8630 91.5110 0.7692 106.92 0.9617 1.2775

USDINR Forwards (Ask) APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

15.50 41.00 61.75 84.50 106.50 127.00 149.50 170.00 190.00 209.50 227.50 246.50

1M 2M 3M 6M 1Y

EURO -0.4016 -0.3857 -0.3643 -0.3237 -0.2456

RUPEE -The Indian rupee was trading higher at 65.00/65.01 against 65.1450/65.1550 at close yesterday, as risk assets rebounded after comments from a U.S. Economic Advisor on possibility of trade talks with China raised hopes a trade war will be averted. MAJOR CURRENCIES- The dollar inched up against the yen on Thursday as stocks bounced back from a sell-off triggered by an escalating U.S.-China trade dispute.The greenback was 0.15 percent higher at 106.930 yen, having pulled higher from a low of 105.990 set the previous day. The dollar extended gains as equities in the region followed Wall Street's lead, with Japan's Nikkei rising nearly 2 percent.Against the Swiss currency, another perceived safe haven along with the yen, the dollar was little changed at 0.9609 franc after rising 0.2 percent overnight.The euro nudged up 0.05 percent to $1.2284, adding to the previous day's modest gains. OTHERS - The Australian dollar breached key technical level of 77 U.S. cents on Wednesday after better-than-expected data on retail sales while its New Zealand cousin climbed to one-week highs on stronger milk prices.The Aussie added 0.3 percent to $0.7710 from Tuesday's low of $0.76520. The currency has been flirting with the 77-cent mark in the past week but has been unsuccessful in sustaining gains above that level. Across the Tasman Sea, the New Zealand

Technical Strategy EUR/USD - EUR/USD is currently trading at 1.2276. The pair is currently trading above the support level of 1.2243. The RSI is suggesting steady movementc for the pair. For the day, the pair is expected to take support at 1.2243 and the resistance at 1.2302 level. USD/INR - USD/INR is currently trading at 65.03. The pair is currently trading below the resistance level of 65.2969. The RSI is suggesting downward movment for the pair. For the day the pair may take support at 64.9578 and take resistance at 65.2969 level.

LIBOR USD 1.8906 2.0166 2.3246 2.4600 2.6809

Market Commentary

JPY -0.0485 -0.0382 -0.0380 0.0181 0.1145

USD IRS (Ask) 1Y 2Y 5Y 10Y

2.4390 2.6000 2.7475 2.8440

MIFOR (Mid) / OIS (Mid) MIFOR 1Y 2Y 5Y 10Y

6.445 6.895 6.98

OIS 6.43 6.44 6.73 6.82 Source: Thomson Reuters, IDBI Bank Ltd.

Source: Thomson Reuters, IDBI Bank Ltd.

INTERNATIONAL MARKETS Equities, Commodities and Bonds

Equity Markets (% Change)

SENSEX Nifty Dow Jones Nasdaq FTSE CAC DAX Hang Seng Nikkei

33432.77 10264.70 24264.30 7042.11 7034.01 5151.80 11957.90 29518.69 21760.04

1.25 1.35 0.96 1.43 0.05 -0.20 -0.37 -2.19 -0.08

Crude/Bullion (In $)

Crude Oil(WTI)

Gold Silver

63.63 1328.75 16.315

FII/MF Cash

(In cr `) 1,823.41 11,356.20 14,805.73 1,21,202.10 0

FII Cash Flow MF Cash Flow FII CY 2018 MF CY 2018

Money Rates CALL Rate O/N Mibor LAF (cr `) 91 - T Bill 1y G Sec 5y G Sec 10y G sec

6.00 6.00 89992.00 6.15 6.558 7.208 7.288

INBMK 4Y 7Y 10Y

STOCKS(Asia) Asian shares bounced from two-month lows on Thursday as world equities recovered from a selloff triggered by escalating Sino-U.S. trade tensions, with investors hoping a full-blown trade war between the world's two biggest economies can be averted. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, a day after it hit its lowest in almost two months. Trade-dependent Singapore's Straits Times Index rose more than 2.0 percent.Japan's Nikkei gained 1.6 percent while markets in mainland China, and those in Hong Kong and Taiwan, are closed for the Tomb Sweeping Day holiday on Thursday. OIL Oil prices rose on Thursday, buoyed by the U.S. government data showing a surprise drawdown in crude stockpiles and an easing of tensions over a trade row between the United States and China.U.S. West Texas Intermediate crude for May delivery was up 27 cents, or 0.4 percent, at $63.64 a barrel by 0445 GMT after settling down 14 cents.Front-month London Brent crude for June delivery was up 30 cents, or 0.4 percent, at $68.32, having ended down 10 cents. GOLD Gold prices fell on Thursday, pulling back from one-week highs reached the session before, as risk appetite recovered after the United States expressed willingness to resolve an escalating trade fight with China.Spot gold was down 0.3 percent at $1,329.11 per ounce by 0409 GMT, after touching a one-week high of $1,348.06 on Wednesday. U.S. gold futures fell 0.6 percent to $1,332.60 an ounce.Holdings of SPDR Gold Trust the world's largest gold-backed exchange-traded fund, was largely steady at 852.03 tonnes on Wednesday from 852.31 tonnes on Tuesday. BONDS (U.S.) U.S. Treasury yields rose on Wednesday and stocks recovered much of their earlier losses, after China retaliated against the Trump administration’s plan to impose tariffs on Chinese goods.Benchmark 10-year note yields rose to 2.784 percent, after earlier falling to 2.748 percent on safety buying. The yields have been range-bound between 2.70 percent and 2.80 percent for the past week.Federal Reserve Chairman Jerome Powell is also due to speak about the economic

Indian Money Market 7.176 7.452 7.288

US Treasury 3Y 5Y 7Y 10Y

STOCKS(US & Europe) Wall Street's three major indexes staged a comeback to close around 1 percent higher on Wednesday as investors turned their focus to earnings and away from a trade conflict between the United States and China that wreaked havoc in earlier trading.The S&P opened below its 200-day moving average, a key technical level, but inched above it as the session progressed, and by afternoon was in positive territory.The Dow Jones Industrial Average rose 230.94 points, or 0.96 percent, to close at 24,264.30, the S&P 500 gained 30.24 points, or 1.16 percent, to 2,644.69 and the Nasdaq Composite added 100.83 points, or 1.45 percent, to 7,042.11.

2.4357 2.6278 2.7536 2.8118

CALL- India’s one-day call rate was trading at 5.90%/5.05% against 5.80%/5.85% at its previous close. BONDS- India’s benchmark 7.17% bond maturing in 2028 was at 99.08 rupees, yielding 7.30%, against 99.13 rupees and 7.29% yield at the previous close, as traders await the outcome of the MPC’s meeting today, even as investors await a likely increase in limit on foreign investment in Indian government bonds. IRS- India’s one-year and benchmark five-year swap rates were trading at 6.43% and 6.73%, respectively, unchanged from the previous close.

ECONOMIC INDICATORS Economic data/Indicators EUR Euro-Zone Consumer Price Index Estimate (YoY) (MAR) USD Factory Orders (FEB)

ACTUAL 1.40% 1.20%

EXPECTED

PREVIOUS

1.40% 1.70%

1.10% -1.30%

Euro zone inflation increased in line with expectations in March mainly due to more costly food and services, data showed on Wednesday, providing modest support to European Central Bank policymakers pushing to wind down its stimulus.The European Union's statistics office Eurostat estimated that inflation in the 19 countries sharing the euro was 1.4 percent year-on-year in March, up from 1.1 percent in February. The March figure was in line with market expectations. The Commerce Department said that semiconductor shipments are included in the computers and electronic products and other applicable aggregate totals. They are no longer listed separately.

Upcoming Economic Data/Events ACTUAL EUR Euro-Zone Retail Sales (YoY) (FEB) GBP Markit/CIPS UK Composite PMI (MAR)

EXPECTED

PREVIOUS

2.30% 53.90

2.30% 54.50

Currency Futures & Options Instrument* Futures Options Futures Options Futures Options Futures Options Chandan Mishra

Underlying USDINR USDINR GBPINR GBPINR EURINR EURINR JPYINR JPYINR Total

Volume 3,27,947 3,45,344 13,455 8 19,831 1,234 27,187 132 7,35,138

Value (in cr) 2,079.39 2,237.84 121.26 0.07 157.58 10.04 163.41 0.63 4,770.22

OI 19,78,561 17,34,694 87,460 2,531 1,53,452 11,220 34,274 824 40,03,016

No. of trades 10,098 6,690 1,233 3 1,816 66 2,669 14 22,589

Volume 2,94,420 18,139 12,827 25,086

Value (in cr) 1,904.44 144.45 115.46 150.51

OI 12,99,081 1,10,133 72,189 30,469

No. of trades 8,624 1,547 1,125 2,365

[email protected]

91-22-66263525

Contract* USDINR 250418 EURINR 250418 GBPINR 250418 JPYINR 250418

LTP 65.1825 80.1300 91.80 61.03

Disclaimer : This report/ material has been prepared by IDBI Bank Limited (“IDBI Bank”) and is only meant for the recipient for use as intended and not for circulation. This

Disclaimer : This report/ material has been prepared by IDBI Bank Limited (“IDBI Bank”) and is only meant for the recipient for use as intended and not for circulation. This document and its contents are strictly confidential and may not be retransmitted, distributed, published, reproduced (in whole or in part) by any medium or in any form, or disclosed or made available by recipients to any other person. The information contained herein is collected from public domain or sources believed to be reliable and IDBI Bank has not independently verified it. While reasonable care has been taken to ensure that the information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of the research, it cannot be guaranteed, warranted or represented that it is accurate or complete and it should not be relied upon. This report/material has been prepared solely for informational purposes and does not constitute or form part of, and should not be construed as, an offer to sell, or as an invitation or inducement to make, or a solicitation of, any offer to purchase or subscribe for any securities investment products or other financial product or service, or an official confirmation of any transaction. No part of this report/material should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. It is clarified that the information contained herein is preliminary, limited in nature and subject to verification, completion and amendment. No representation or warranty, express or implied, is given or made by any person in relation to the fairness, accuracy, completeness or reliability of the information or any opinions contained herein and no reliance whatsoever should be placed on such information or opinions. This report/material, should not be regarded by recipients as a substitute for the exercise of their own judgment and assessment. Any opinions expressed in this material are subject to change without notice and neither IDBI Bank nor any other person is under any obligation to update or keep current the information contained herein. Neither IDBI Bank, nor its advisors nor any of their respective affiliates, agents, directors, partners and employees shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this report/material or its contents or otherwise arising in connection with this report/material. This report/material contains certain tables and other statistical information and analyses (the “Statistical Information”). Numerous assumptions were used in preparing the Statistical Information, which may or may not be reflected herein. As such, no assurance can be given as to the Statistical Information’s accuracy, appropriateness or completeness in any particular context; nor as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or future market performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial or accounting advice. This report/material may contain statements about future events and expectations that are forward-looking statements. Any statement in this report/material that is not a statement of historical fact is a forward-looking statement that is based on various assumptions and involves unknown risks and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The recipient may have to make its own independent investigation and appraisal of the the market condition and environment and no reliance may be placed upon the information herein for such purposes. Recipients should consult with their own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that they deem it necessary, and make their own investment, hedging and trading decisions based upon their own investigation and judgment and advice from such advisers as they deem necessary and not upon any view expressed in this material. Nothing in this document constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. By reviewing this material you acknowledge and agree to be bound by the foregoing.