MORNING MARKET UPDATE

MORNING MARKET UPDATE 08 May 2018 11:05

CURRENCY UPDATE

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

67.2600 1.1914 1.3553 80.1420 91.1740 0.7500 109.08 1.0036 1.2910

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

257.50 16.25 38.00 60.50 82.75 102.75 126.50 148.25 170.75 192.25 212.00 232.50

1M 2M 3M 6M 1Y

EURO -0.4009 -0.3777 -0.3533 -0.3136 -0.2426

MAJOR CURRENCIES- The dollar hovered near a four-month high on Tuesday, continuing to draw support from higher Treasury yields and upbeat prospects for the U.S. economy, leaving its major rivals such as the euro struggling and others including the Argentine peso down sharply. The dollar dipped was flat at 109.090 yen after going as high as 109.400 overnight. The yen is often sought in times of political tensions and market turmoil.The dollar index against basket of six major currencies was 0.1 percent higher at 92.864 after reaching 92.974 overnight, its highest since Dec. 28. The euro was effectively flat at $1.1920 after plumbing $1.1897 the previous day, its lowest in more than four months.The New Zealand dollar was little changed at $0.7017 OTHERS The Australian dollar took a knock on Tuesday when unexpectedly weak readings on retail sales cast doubt on the strength of the domestic economy, suggesting a government budget due later in the day would do well to offer some fiscal stimulus. Australian government bond futures edged up on Tuesday, with the threeyear bond contract gaining 1 tick to 97.810. The 10-year contract rose 1.5 ticks to 97.2450.The New Zealand dollar was pinned at $0.7018 having taken a dip of its own when a survey of inflation expectations showed a pullback. The Reserve Bank of New Zealand reported inflation was expected to average 2.01 percent in two year's time, down from 2.11 percent in a February poll.

Technical Strategy EUR/USD - EUR/USD is currently trading at 1.1912. The pair is currently trading above the support level of 1.1881. The RSI is suggesting steady movementc for the pair. For the day, the pair is expected to take support at 1.1881 and the resistance at 1.1962 level. USD/INR - USD/INR is currently trading at 67.2650. The pair is currently trading below the resistance level of 67.4204. The RSI is suggesting upward movment for the pair. For the day the pair may take support at 67.0768 and take resistance at 67.4204 level.

LIBOR USD 1.9277 2.0826 2.3691 2.5202 2.7767

Market Commentary RUPEE - The Indian rupee was at a 15-month low of 67.24/67.25 per dollar, against 67.13/67.14 at previous close, as oil importers stepped up greenback purchases amid an uptrend in crude prices, while the dollar continued to strengthen against major currencies. However, dollar sales by state-run banks, likely on behalf of the central bank, limited further losses.

JPY -0.0445 -0.0463 -0.0312 0.0268 0.1190

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

2.5720 2.7580 2.9130 2.9820

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

6.57 7.06 7.15

OIS 6.62 6.69 7.05 7.14 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

35297.79 10738.45 24357.32 7265.21 7567.14 5531.42 12948.14 30367.09 22495.68

0.25 0.21 0.39 0.77 0.85 0.28 0.99 1.24 0.13

Crude/Bullion (In $)

Crude Oil(WTI)

Gold Silver

69.89 1312.01 16.466

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

6.05 6.04 -8429.00 6.24 6.927 7.669 7.59

STOCKS(US & Europe) Wall Street climbed on Monday, boosted by Apple's sixth straight day of gains and by a surge in oil prices to their highest since 2014.The Dow Jones Industrial Average rose 0.39 percent to end at 24,357.32, while the S&P 500 gained 0.35 percent to 2,672.63. Earlier, the S&P 500 was up as much as 0.75 percent. The Nasdaq Composite added 0.77 percent to 7,265.21.The S&P 500 posted 25 new 52-week highs and seven new lows; the Nasdaq Composite recorded 124 new highs and 23 new lows. STOCKS(Asia) Asian shares crept higher on Monday after a tame reading on U.S. wages lowered the risk of faster rate hikes by the Federal Reserve, although Sino-U.S. trade tensions and a looming deadline for the Iranian nuclear deal argued for caution.MSCI's broadest index of Asia-Pacific shares outside Japan put on 0.3 percent, while Chinese blue chips rose 0.7 percent..E-Mini futures for the S&P 500 also inched up 0.25 percent. Japan's Nikkei went the other way as a firmer yen trimmed 0.4 percent off the index. OIL Oil prices retreated from 3-1/2 year highs on Tuesday as investors waited on an announcement by President Donald Trump on whether the United States will reimpose sanctions on Iran.U.S. West Texas Intermediate (WTI) crude futures had dropped 73 cents, or 1 percent, to $70 a barrel by 0240 GMT. At one point they fell below $70, after settling above that level for the first time since November 2014 on Monday Brent crude futures were down 63 cents, or 0.8 percent, at $75.54, having jumped 1.7 percent to settle at $76.17 a barrel in the previous session. GOLD Gold prices rose slightly on Tuesday, after easing in the previous session, as the dollar held steady after marking a fresh 2018 peak. Spot gold rose 0.1 percent to $1,315.24 per ounce at 0051 GMT.U.S. gold futures for June delivery were up 0.1 percent at $1,315.80 per ounce. BONDS (U.S.) Trading was light and Treasury yields were little changed on Monday ahead of this week's auctions of $73 billion in U.S. government debt and Thursday's release of the Consumer Price Index inflation metric, even as U.S. oil prices reached their highest since 2014. Yields on benchmark 10-year U.S. Treasury notes were up slightly on Monday - by 0.8 basis point at 2.952 percent - from their last close. Yields on 30-year bonds were up just over 1 basis point at 3.125 percent from their last close. The two-year note was last at 2.497 percent, down modestly from Friday's close at 2.501 percent.

INBMK 4Y 7Y 10Y

Indian Money Market 7.684 7.773 7.59

US Treasury 3Y 5Y 7Y 10Y

2.6364 2.7939 2.9073 2.9554

CALL- India’s one-day call rate was unchanged at 6.00%/6.05%. BONDS- India’s benchmark 7.17% bond maturing in 2028 was at 96.77 rupees, yielding 7.65%, against 96.93 rupees and 7.62% yield at the previous close, ahead of state debt auction and as another plunge in the domestic currency weighed on mood. .

IRS- India’s one-year swap rate was down one basis point to 6.59% from 6.60% at previous close, while the benchmark five-year swap rate was up one basis point to 7.04% from 7.03% at previous close.

ECONOMIC INDICATORS Economic data/Indicators ACTUAL 0.00%

AUD Retail Sales (MoM) (MAR)

EXPECTED

PREVIOUS

0.20%

0.60%

Australian retail turnover for March, released by the Australian Bureau of Statistics on Tuesday.Retail sales in the previous month were unrevised at +0.6 pct.Forecasts centred on a rise of 0.3 percent on the month, a Reuters poll showed. For the first quarter, in volume terms, seasonally adjusted turnover rose 0.2 percent, compared with a forecast for a 0.6 percent rise.

Upcoming Economic Data/Events ACTUAL CAD Housing Starts (APR) EUR German Industrial Production n.s.a. and w.d.a. (YoY) (MAR)

EXPECTED

PREVIOUS

220.0K 3.00%

225.2K 2.60%

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 5,17,366 5,43,719 16,946 14 12,789 95 6,591 18 10,97,538

Value (in cr) 3,482.17 3,610.21 154.66 0.13 102.82 0.77 40.74 0.11 7,391.61

OI 34,65,791 23,05,664 68,003 7,872 1,19,019 11,989 29,476 2,702 60,10,516

No. of trades 13,703 12,306 1,658 4 1,117 6 811 9 29,614

Volume 4,60,628 12,410 15,499 6,194

Value (in cr) 3,099.64 99.77 141.38 38.11

OI 27,79,887 1,00,342 54,136 27,422

No. of trades 11,328 1,041 1,459 663

[email protected]

91-22-66263510

Contract* USDINR 290518 EURINR 290518 GBPINR 290518 JPYINR 290518

LTP 67.4150 80.4275 91.40 61.86

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.