MORNING MARKET UPDATE

MORNING MARKET UPDATE 09 May 2018 11:09

CURRENCY UPDATE

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

67.3500 1.1849 1.3530 79.8060 91.1280 0.7437 109.54 1.0038 1.2954

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

258.50 15.50 37.50 60.25 82.50 102.75 126.75 148.50 171.00 192.50 212.50 233.25

1M 2M 3M 6M 1Y

EURO -0.4009 -0.3770 -0.3533 -0.3136 -0.2426

MAJOR CURRENCIES- The dollar rose to a six-day high against the yen on Wednesday as crude oil prices rallied and pushed Treasury yields higher after U.S. President Donald Trump pulled out from an international nuclear deal with IranThe greenback also gained on the euro as concerns about Italian political turmoil hurt the common currency.The dollar was 0.3 percent higher at 109.480 yen after touching 109.640, its highest since May 3.The dollar index against a basket of major currencies was marginally higher at 93.206. OTHERS The Australian and New Zealand dollars hit fresh multi-month lows on Wednesday as the relative outperformance of the U.S. economy sent its currency higher across the board. The Aussie dollar was huddled at $0.7435, having touched its lowest since last June at $0.7424. It has now shed almost four U.S. cents in less than three weeks.The kiwi dollar was near its lowest since December at $0.6967, having again lost four cents since mid-April.

Technical Strategy EUR/USD - EUR/USD is currently trading at 1.1850. The pair is currently trading above the support level of 1.1800. The RSI is suggesting downwardc movement for the pair. For the day, the pair is expected to take support at 1.1800 and the resistance at 1.1962 level. USD/INR - USD/INR is currently trading at 67.3150. The pair is currently trading below the resistance level of 67.5055. The RSI is suggesting upward movment for the pair. For the day the pair may take support at 66.50 and take resistance at 67.5055 level.

LIBOR USD 1.9285 2.0819 2.3525 2.5238 2.7709

Market Commentary RUPEE - The Indian rupee fell to a 15-month low of 67.37/67.38 per dollar, against 67.08/67.09 at previous close, as crude prices surged to a multi-year high after the U.S. withdrew from the Iran nuclear deal, while dollar hit the highest levels this year.

JPY -0.0495 -0.0447 -0.0370 0.0261 0.1148

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

2.5610 2.7597 2.9400 3.0130

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

6.615 7.105 7.20

OIS 6.62 6.70 7.08 7.17 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

35253.62 10724.50 24360.21 7266.90 7565.75 5521.93 12912.21 30515.64 22398.34

0.11 0.06 0.01 0.02 -0.02 -0.17 -0.28 0.37 -0.49

Crude/Bullion (In $)

Crude Oil(WTI)

Gold Silver

70.65 1310.71 16.47

FII/MF Cash

(In cr `) -18,336.20 31,458.28 1,13,492.25 5,94,565.14 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

STOCKS(US & Europe) Wall Street cut losses to end little changed on Tuesday while energy stocks rallied after U.S. President Donald Trump said the United States would quit the Iran nuclear deal, confirming what many investors had expected.The Dow Jones Industrial Average ended 0.01 percent higher at 24,360.21, while the S&P 500 ended down 0.03 percent to 2,671.92.The Nasdaq Composite added 0.02 percent to 7,266.90. STOCKS(Asia) Asian shares ticked down as renewed U.S. sanctions on Tehran were seen as disruptive for many companies that have deals with Iran. Trump's move is also seen as risking worsening already-tense relations between Iran and U.S. allies in the region. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent while Japan's Nikkei fell 0.4 percent. OIL Oil prices rose more than 2 percent on Wednesday, with Brent hitting a 3-1/2-year high, after U.S. President Donald Trump abandoned a nuclear deal with Iran, likely curbing the OPEC member's crude exports in an already tight market.Brent crude oil futures rose to a session high of $76.75 per barrel, their highest since November 2014. They were still at $76.73 per barrel at 0344 GMT, up $1.88, or 2.5 percent, from their last close. GOLD Gold prices fell in Asian trading on Wednesday, as the dollar regained ground after U.S. President Donald Trump's decision to pull the United states out of the Iran nuclear deal boosted oil prices and pushed Treasury yields higher. Spot gold had fallen 0.2 percent to $1,311.44 per ounce by 0346 GMT. BONDS (U.S.) U.S. government bond yields across maturities fell on Tuesday as demand for the safe-haven investment increased following President Donald Trump's announcement that the country would withdraw from its nuclear deal with Iran.But the moves were relatively muted, with the 10-year Treasury yield reaching a weekly high of 2.987 percent, before falling to 2.974 percent, just 2 basis points above Monday's close. That suggested markets had already priced in the possibility of U.S. withdrawal.

6.05 6.05 -7989.00 6.28 6.926 7.727 7.66

INBMK 4Y 7Y 10Y

Indian Money Market 7.727 7.811 7.66

US Treasury 3Y 5Y 7Y 10Y

2.6686 2.8244 2.9423 2.9873

CALL- India’s one-day call rate was at 6.00%/6.05% against 5.85%/5.90% at previous close. BONDS- India’s benchmark 7.17% bond maturing in 2028 was down to 96.76 rupees, yielding 7.65%, from 97.21 rupees and 7.58% yield at the previous close, tracking gains in crude oil prices and U.S. Treasury yields, after the U.S. withdrew from the Iran nuclear deal and President Donald Trump called for imposition of economic sanctions on the oil exporting nation. .

IRS- India’s one-year swap rate was down one basis point to 6.60% from 6.61% at previous close, while the benchmark five-year was up three basis points to 7.06% from 7.03% yesterday

ECONOMIC INDICATORS Economic data/Indicators CAD Housing Starts (APR) EUR German Industrial Production n.s.a. and w.d.a. (YoY) (MAR)

ACTUAL 214.4K 3.20%

EXPECTED

PREVIOUS

220.0K 3.00%

225.2K 2.60%

According to Canada Mortgage and Housing Corporation (CMHC), the standalone monthly seasonally adjusted annual rate (SAAR) for all areas in Canada was 214.4k units (exp 220.0k) in April, down 2.6% from the slightly revised reading of 225.5k (prev 252.2k) units in March. The SAAR of urban starts decreased to 198.1k units in April, down 4.7%. Single-detached urban starts fell to 57.1k units from 62.9k, with all other urban starts fell to 141.0k from 144.9k in March.

Upcoming Economic Data/Events ACTUAL CNY Consumer Price Index (YoY) (APR)

EXPECTED

PREVIOUS

1.90%

2.10%

Currency Futures & Options Instrument* Futures Options Futures Options Futures Options Futures Options Abhijit Mishra

Underlying USDINR USDINR GBPINR GBPINR EURINR EURINR JPYINR JPYINR Total

Volume 6,16,355 7,56,727 22,468 64 13,603 137 6,491 240 14,16,085

Value (in cr) 4,032.31 5,043.60 205.28 0.58 108.63 1.11 40.01 1.48 9,433.00

OI 33,18,763 24,61,999 66,481 8,421 1,16,681 12,849 29,980 3,288 60,18,462

No. of trades 16,749 14,202 2,602 5 1,531 12 661 18 35,780

Volume 5,23,522 12,285 20,103 6,237

Value (in cr) 3,415.22 98.34 183.72 38.46

OI 25,71,106 97,691 50,379 27,742

No. of trades 13,916 1,334 2,141 575

[email protected]

91-22-66263510

Contract* USDINR 290518 EURINR 290518 GBPINR 290518 JPYINR 290518

LTP 67.5025 80.0900 91.38 61.68

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.