Rupee off lows on exporters Dollar sales

Posted Date:-29-Sep-2017

Financial Market Overview

14th September, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee came off lows in afternoon trade, as exporters’ dollar sales offset early losses stemming from overnight gains in the greenback, following an uptick in U.S Treasury yields and strong producer price data in the world’s largest economy.
  • The rupee was last seen at 64.07 to a dollar against 64.00 at close yesterday. The currency had opened at 64.17, lowest since Sep. 6. Most other Asian currencies were trading lower against the greenback.
  • India’s wholesale price inflation rose 3.24% in August from a year earlier, recording the fastest pace of price gain since April, driven by sharp increase in prices of food and fuel, government data showed today. The reading was faster than an annual 1.88% increase in the previous month, and topped a median forecast for a 3.00% annual increase in a poll of economists.

Indian Equities:-

  • Equity benchmarks continued to consolidate in afternoon after erasing morning gains, tracking weakness in Europe amid geopolitical tensions.
  • The 30-share BSE Sensex was up 10.06 points at 32,197.03 and the 50-share NSE Nifty fell 4.90 points to 10,074.40.

Global Markets:-

  • Asian markets finished lower today with shares in Hong Kong leading the region. The Hang Seng is down 0.42% while China's Shanghai Composite is off 0.38% and Japan's Nikkei 225 is lower by 0.29%.
  • European markets are lower today with shares in Germany off the most. The DAX is down 0.24% while France's CAC 40 is off 0.12% and London's FTSE 100 is lower by 0.05%.

Rupee opens lower as geopolitical tensions hurt risk appetite

Posted Date:-26-Sep-2017

Financial Market Overview

26th September, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opens lower at 65.24 against the dollar, in line with most other Asian peers, as demand for safe-haven assets increased amid an escalation in geopolitical tensions between North Korea and the U.S; pair USDINR now at 65.15 against 65.10 previous close.
  • Pair to tip in range between today 65.05-65.30.

Indian Equities:-

  • Equity benchmarks opened flat on Tuesday after witnessing sharp fall in previous two sessions, and ahead of expiry of September derivative contracts.
  • The 30-share BSE Sensex was down 8.55 points at 31618.08 and the 50-share NSE Nifty gained 6.90 points at 9,879.50.

Global Markets:-

  • Asian markets are mixed today as Chinese and Hong Kong shares fall. The Shanghai Composite is up 0.07% while the Hang Seng is down 0.05%. The Nikkei 225 is down 0.16 and ASX200 is lower by 0.09%.
  • U.S. stocks were lower at the close on Monday, as losses in the Technology, Healthcare and Industrials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average declined 0.24%, while the S&P 500 index fell 0.22%, and the NASDAQ Composite index fell 0.88%.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.02%, while London's FTSE 100 was off 0.13%. Shares in France were unchanged with the CAC 40 at 5,213.91.
  • The euro ended off 0.9% against the greenback overnight, following European Central Bank President Mario Draghi’s comments that the euro’s volatility was a source of uncertainty that required monitoring, according to Reuters. He also said the economy was still in need of “ample” monetary accommodation.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended up 0.5% overnight.  Meanwhile, safe-haven Japanese Yen ended up 0.2% against the dollar and was last trading 0.06% higher on increasing tensions between the U.S. and North Korea. In latest developments, North Korean Foreign Minister Ri Yong Ho said yesterday that President Donald Trump’s latest comments about North Korea were “clearly a declaration of war,” and said North Korea had a right to shoot down U.S. bombers.

Rupee ends at 6-week low on weak equities

Posted Date:-25-Sep-2017

Financial Market Overview

25th September, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee fell to its lowest in six months against the dollar, as weak shares and likely month-end dollar purchases by importers outweighed gains.
  • The rupee settled at 65.10 to a dollar, its lowest closing level since Mar. 24, against 64.79 at close on Sep. 22. The currency had risen to 64.72 intraday on foreign banks’ dollar sales and amid expectations of inflows after the central bank tweaked limit for foreign investments in corporate bonds.
  • The current masala bond investment limit of 440 billion rupees will be removed from the overall FPI investment limit in corporate bonds, while the same would be added to the overall limit over the next two quarters, the central bank said in a statement.

Indian Equities:-

  • Indian shares ended lower on Monday, tracking weakness in Asian peers, with index heavyweights ITC Ltd  and HDFC Bank Ltd dragging down the indexes.
  • The BSE index fell 0.93 percent to 31,626.63, while the broader NSE index  ended 0.92 percent lower at 9,872.60.

Global Markets:-

  • European markets are mixed. The DAX is higher by 0.14%, while the CAC 40 is leading the FTSE 100 lower. They are down 0.29% and 0.20%.
  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.50%, while the Hang Seng led the Shanghai Composite lower. They fell 1.36% and 0.33%.
  • Markets now await Trump administration’s tax plans due this week. Republicans are targeting to cut a corporate tax rate to 20% against U.S. President Donald Trump’s expectation of a cut to 15%,. Trump is expected to give a speech in Indiana on Sep. 27 addressing tax issues, the report added.
  • Markets also await comments from Federal Reserve Chair Janet Yellen, due tomorrow.

Rupee lower on importers Dollar bids and weak local equities

Posted Date:-25-Sep-2017

Financial Market Overview

25th September, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee fell against he dollar in afternoon trade, as state-run and private banks stepped up greenback purchases for their importer clients.
  • The rupee was last seen at 64.9450, against 64.79 at close on Sep. 22. The currency opened lower at 64.84 per dollar, but had eroded losses and rose to a day’s high of 64.73, on foreign banks dollar sales. Most other Asian currencies were mixed against the dollar.
  • “Month-end related demand from oil and other importers weighed on the rupee, while weak local shares also add pressure,” , touched a low of 65.01.

Indian Equities:-

  • Equity benchmarks extended losses in afternoon, with the Nifty breaking 9,850 level as likely fiscal stimulus may increase fiscal deficit.
  • The bloodbath continued at Dalal Street as the Sensex plunged 382.22 points or 1.20 percent to 31,539.48, dragged by banks, metals, auto and pharma stocks. Nifty fell by 125.45 points or 1.26% to 9838.95.

Global Markets:-

  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.48%, while the Hang Seng led the Shanghai Composite lower. They fell 1.33% and 0.33%.
  • European markets are mixed. The DAX is higher by 0.27%, while the FTSE 100 is leading the CAC 40 lower. They are down 0.19% and 0.06%.
  • The Ifo German research institute said its Business Climate Index dipped to a seasonally adjusted 115.2 this month from a reading of 115.7 in August, missing forecasts for 116.0.

Rupee logs worst week since Nov post Fed

Posted Date:-23-Sep-2017

 Weekly Synopsis

 

Date:- 23rd September 2017

 

Markets from 18th September 2017 to 22nd September 2017:-

 

Indian Rupee:-

 

  • The Indian rupee posted its steepest weekly decline in 10 months against the dollar, as the U.S. central bank prepares to raise rates further and unwind its balance sheet at a time when investors are worried about New Delhi’s fiscal consolidation path. On a weekly basis, the currency fell 1.12%, its biggest weekly decline since the week ended Nov. 18, 2016. The rupee closes on Friday at 64.79 against the previous weekly close of 64.0725 on September 15th, 2017 to a greenback. It trades in a broad weekly range between 63.9975 to 65.16 against the greenback.

 

  • India’s federal government is likely to announce a fiscal stimulus package of around 400 billion rupees to boost economic growth, television channel ET Now reported quoting sources. The government expects a revenue shortfall of 500 billion rupees this year.

 

  • India's foreign exchange reserves rose for a fourth consecutive week to another record high of $402.51 billion as of Sep.15, from $400.73 billion in the previous week, the central bank said on Friday. The increase was driven by a rise in foreign currency assets to $378.01 billion from $376.21 billion in the previous week, according to the data from the Reserve Bank of India.

 

Global Market:-

 

  • The dollar remained roughly unchanged against a basket of major currencies on Friday amid an uptick in safe-haven demand as U.S.-North Korea tensions resurfaced but sterling weakness curbed downside momentum in the greenback. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.01% to 91.98.

 

  • North Korea said on Friday it might test a hydrogen bomb over the Pacific Ocean as the ongoing war of words between President Donald Trump and his North Korean counterpart Kim Jong un continued after latter vowed to make a "mentally deranged" Trump pay dearly for an earlier threat to “totally destroy” North Korea if it threatened America or its allies. In the wake of Kim Jong un’s comments, traditional safe-haven currencies like the yen and Swiss franc made strong gains the greenback. USD/JPY fell to Y112.09, down 0.34% while USD/CHF fell to 0.9697 down 0.11%.

 

  • Losses in the greenback, however, were curbed by a slump in sterling following an update from British Prime Minister Theresa May on Brexit negotiations on Friday. In her speech, Mrs May proposed that Britain stay in the EU’s single market for a two-year “period of implementation” to smooth the Brexit process. GBPUSD fell 0.43% to $1.3523. EURUSD tacked on 0.04% to $1.1946.

 

  • The U.S. central bank kept the policy rates unchanged on Wednesday, as was widely expected, but announced that the authority would begin to reduce from October its approximately $4.2 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities that it had accumulated to ease the 2008 credit crisis. The authority also signaled one more rate hike later this year. Fed Chair Janet Yellen’s remarks on weak inflation in the world’s largest economy. The authority also slightly reduced their inflation target for 2017 and 2018, while maintain the 2% target for 2020.

 

  • The S&P 500 closed slightly higher on Friday even though Apple was a drag, as worries about Washington's latest healthcare legislation proposal eased and investors shrugged off concerns about North Korea. The Dow Jones Industrial Average fell 9.64 points, or 0.04 percent, to 22,349.59, the S&P 500 gained 1.62 points, or 0.06 percent, to 2,502.22 and the Nasdaq Composite added 4.23 points, or 0.07 percent, to 6,426.92.

 

  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.64%, while Germany's DAX was off 0.06%. Shares in France were unchanged with the CAC 40 at 5,213.91.

 

Local Market:-

 

  • Indian shares ended lower for a fourth straight session on Friday, weighed down by banking stocks, as the government's plan for $7.7 billion stimulus spending raised concerns over fiscal deficit.

 

  • The broader NSE index closed down 1.56 percent at 9,964.40, while the benchmark BSE index fell 1.38 percent to 31,922.44. Both indexes posted their biggest intraday percentage decline in 10 months.

 

  • The NSE index lost 1.22 percent this week, while the BSE index fell 1.09 percent. Both indexes posted weekly losses for a second time this month.

Rupee ends flat; Indian equities closed lower for a 4th straight session

Posted Date:-22-Sep-2017

Financial Market Overview

22nd September, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The rupee settled at 64.79 to a dollar in Mumbai, against 64.81 at close yesterday. It had slumped to 65.16 to a dollar in early trade, the lowest since Apr. 5, but recovered some losses after the Reserve Bank of India likely sold dollars in spot and currency futures market, arresting the rupee’s slide.
  • India's foreign exchange reserves rose to $402.51 billion as of Sept 15, compared with $400.73 billion a week earlier, the Reserve Bank of India said today.

Indian Equities:-

  • Indian shares ended lower for a fourth straight session, weighed down by banking stocks, as the government's plan for $7.7 billion stimulus spending raised concerns over fiscal deficit.
  • The broader NSE index closed down 1.56 percent at 9,964.40, while the benchmark BSE index fell 1.38 percent to 31,922.44. Both indexes posted their biggest intraday percentage decline in 10 months.

Global Markets:-

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.34% while Germany's DAX is up 0.24% and London's FTSE 100 is up 0.17%.
  • Asian markets finished lower today with shares in Hong Kong leading the region. The Hang Seng is down 0.82% while Japan's Nikkei 225 is off 0.25% and China's Shanghai Composite is lower by 0.16%.
  • The dollar index, which measures the greenback against a basket of six major rivals, fell 0.4%, extending its overnight decline of 0.3%. The index had risen to a two-week high on Wednesday after the Federal Reserve indicated one more rate hike later this year and announced plans to reduce its balance sheet.

USDINR races past 65.00 North Korea,Indian fiscal deficit concerns hit Rupee

Posted Date:-22-Sep-2017

Financial Market Overview

22nd September, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • USD/INR jumps to near 6-month highs as North Korea tensions hit risk sentiment; pair now at 65.12, highest since April 5, against 64.81 previous close.
  • Indian government considering plan to loosen fiscal deficit target to enable it to spend up to 500 billion rupees ($7.7 billion) more to halt an economic slowdown also weighing on rupee
  • Pair to tip in range between today 64.90-65.25.

Indian Equities:-

  • Equity benchmarks fell sharply in opening on Friday, tracking weakness in Asia post North Korea threatened it could consider testing a nuclear weapon in the Pacific.
  • The 30-share BSE Sensex was down 163.54 points at 32,206.50 and the 50-share NSE Nifty fell 58.25 points to 10,063.65.

Global Markets:-

  • Asian markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.50% while the Hang Seng is down 0.80%. The Nikkei 225 is trading lower by 0.29%.
  • U.S. stocks were lower at the close on Thursday, as losses in the Consumer Goods, Telecoms and Technology sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average fell 0.24%, while the S&P 500 index declined 0.30%, and the NASDAQ Composite index lost 0.52%.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.25%, while London's FTSE 100 was off 0.11%. Shares in France were unchanged with the CAC 40 at 5,213.91.
  • Dollar index off 0.3% at 92.018, but up 0.2% for the week. North Korean Foreign Minister Ri Yong Ho said on Friday he believes the North could consider hydrogen bomb test on Pacific Ocean of an unprecedented scale, South Korea's Yonhap news agency reported.
  • S&P Global Ratings downgraded China's long-term sovereign credit rating yesterday.

Rupee logs largest fall since May on FED rate hike hints

Posted Date:-21-Sep-2017

Financial Market Overview

21st September, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee posted the largest single-session decline against the dollar since May 18, after the U.S. Federal Reserve hinted at raising the policy interest rate once more before this year-end and said it will begin paring its massive bond portfolio next month.
  • The rupee ended at 64.8050 to a dollar, lowest since Jul. 3, against 64.26 at close yesterday. It slipped to 64.8475 to a dollar intraday, also lowest since Jul. 5, but pared some losses on dollar sales by at least two state-run banks, likely on behalf of the Reserve Bank of India.
  • India’s federal government is likely to announce a fiscal stimulus package of around 400 billion rupees to boost economic growth, television channel ET Now reported quoting sources. The government expects a revenue shortfall of 500 billion rupees this year.

Indian Equities:-

  • Indian shares ended lower for a third straight session on Thursday, weighed down by banks such as ICICI Bank, a day after the U.S. Federal Reserve signalled one more rate hike later in the year.
  • The broader NSE index closed down 0.19 percent at 10,121.90, while the benchmark BSE index ended 0.09 percent lower at 32,370.04.

Global Markets:-

  • European markets are mixed. The DAX is higher by 0.33%, while London's FTSE 100 is off 0.05%. Shares in France are higher by 0.53% with the CAC 40 at 5,269.29.
  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.18%, while the Shanghai Composite led the Hang Seng lower. They fell 0.24% and 0.06% respectively.
  • The dollar index, which measures the greenback against a basket of six major rivals, rose as much as 1% to an over two-week high of 92.70, before settling 0.8% higher at 92.51 overnight, after the meeting. It was last trading little changed at 92.52.

Rupee opens lower as FED hints December rate hike

Posted Date:-21-Sep-2017

Financial Market Overview

21st September, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opens lower at 64.50 against the dollar, after the U.S. Federal Reserve said it will begin tapering its massive bond holding next month and hinted at raising the policy interest rate in December; pair USDINR now at 64.50 against 64.26 previous close.
  • Pair to tip in range between today 64.30-64.60.

Indian Equities:-

  • Equity benchmarks opened marginally higher on Thursday after Federal Reserve monetary policy meeting.
  • The 30-share BSE Sensex was up 42.42 points at 32,442.93 and the 50-share NSE Nifty rose 10.95 points to 10,152.10.
  • Tata Steel, Dr Reddy's Labs, Sun Pharma, Lupin, Hindalco, Infosys, HCL Technologies and Reliance Industries gained up to 2 percent.
  • TCS, Bank of Baroda, ICICI Bank and Ambuja Cements were under pressure in early trade.

Global Markets:-

  • Asian markets are mixed today. Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.21% while the Hang Seng is up 0.15%. The Nikkei 225 is trading higher by 0.83% and Australian ASX200 is lower by 1.16%.
  • U.S. equities were mixed at the close on Wednesday, as gains in the Oil & Gas, Industrials and Financials sectors propelled shares higher while losses in the Utilities, Technology and Consumer Goods sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average rose 0.19% to hit a new all time high, while the S&P 500 index added 0.06%, and the NASDAQ Composite index fell 0.08%.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.06%, while London's FTSE 100 was off 0.05%. Shares in France were unchanged with the CAC 40 at 5,213.91.
  • The dollar index, which measures the greenback against a basket of six major rivals, rose to an over two-week high of 92.70, before settling 0.8% higher at 92.51 overnight, after the conclusion of Fed’s two-day monetary policy meeting.
  • The U.S. central bank kept the policy rates unchanged, as was widely expected, but announced that the authority would begin to reduce from October its approximately $4.2 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities that it had accumulated to ease the 2008 credit crisis. The authority also signaled one more rate hike later this year.
  • Gains in the dollar were capped, however, after Fed Chair Janet Yellen’s remarks on weak inflation in the world’s largest economy. The authority also slightly reduced their inflation target for 2017 and 2018, while maintain the 2% target for 2020.

Rupee snaps 2-day fall on Dollar sales; FED meet eyed

Posted Date:-20-Sep-2017

Financial Market Overview

20th September, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee swung between gains and losses to rise against the dollar, on exporters’ greenback sales and tracking dollar weakness on caution ahead of the U.S. Federal Reserve’s policy review outcome due later today.
  • The rupee ended at 64.26 to a dollar, against 64.3275 at close yesterday. It hit an intraday high of 64.24 earlier, before erasing gains to fall to 64.43, the lowest level since Jul. 26.

Indian Equities:-

  • Indian shares ended largely unchanged on Wednesday as gains in market heavyweight Reliance Industries Ltd were more than offset by profit-taking in stocks such as ICICI Bank Ltd.
  • The broader NSE index closed down 0.06 percent at 10,141.15, while the benchmark BSE index ended 0.01 percent lower at 32,400.51.

Global Markets:-

  • European markets are mixed to lower. Shares in Germany are off as the DAX drops 0.08%. The FTSE 100 is down 0.02% while the CAC 40 in France is higher by 0.12%.
  • Asian markets finished higher today with shares in China leading the region. The Shanghai Composite is up 0.27% while Hong Kong's Hang Seng is up 0.27% and Japan's Nikkei 225 is up 0.05%.
  • The dollar index, which measures the greenback against a basket of six major currencies, fell 0.3% overnight, as investors awaited the outcome of the Fed’s meeting for cues on U.S. monetary policy. The index was last trading down 0.1% at 91.70. At the end of the Federal Open Market Committee’s two-day meeting, the authority is widely expected to keep key rates on hold. However, the U.S. central bank may start paring its $4.2 trillion balance sheet. According to CME Group’s FedWatch Tool, traders are pricing in a 56% chance of a hike at a December meeting.

Rupee at 8-week low as banks Dollar bids erase gains

Posted Date:-20-Sep-2017

Financial Market Overview

20th September, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee turned lower in afternoon trade, as dollar purchases by importers and foreign banks eroded early gains stemming from broad greenback weakness and likely corporate and equity-related inflows.
  • The rupee was last seen at 64.34 to a dollar, and against 64.33 at close yesterday. The rupee hit an intraday high of 64.24 earlier today, before erasing all gains and falling to 64.43, the lowest level since Jul.26.

Indian Equities:-

  • Equity benchmarks are trading marginally higher in afternoon trade. The broader markets traded flat but continued to outperform benchmarks as breadth remained in favor of advances. About 1,214 shares advanced against 1,162 declining shares on the BSE.
  • The 30-share BSE Sensex was up 26.03 points at 32428.40 and the 50-share NSE Nifty is trading unchanged at 10,146.70.

Global Markets:-

  • Asian markets finished higher today with shares in China leading the region. The Shanghai Composite is up 0.27% while Hong Kong's Hang Seng is up 0.27% and Japan's Nikkei 225 is up 0.05%.
  • European markets are mixed. The DAX is higher by 0.05%, while London's FTSE 100 is off 0.17%. Shares in France are trading higher by 0.10 with the CAC 40 at 5,242.73.
  • The pound moved higher after the UK Office for National Statistics reported on Wednesday that retail sales blew past forecasts in August, increasing 1.0%. Year-on-year, retail sales climbed 2.4% last month, also better than expectations.

Rupee edges higher ahead of FED meeting outcome

Posted Date:-20-Sep-2017

Financial Market Overview

20th September, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee edges higher against the dollar, tracking gains in most other Asian currencies, as the greenback fell overnight ahead of the U.S. Federal Reserve monetary policy decision later today.; pair USDINR now at 64.25 against 64.3275 previous close.
  • Pair to tip in range between today 64.12-64.34.

Indian Equities:-

  • Equity benchmarks opened mildly higher on Wednesday, led by support from index heavyweight Reliance Industries.
  • The 30-share BSE Sensex was up 63.74 points at 32,466.11 and the 50-share NSE Nifty gained 11.90 points at 10,159.45.

Global Markets:-

  • Asian stocks were mostly steady to higher on Wednesday after Wall Street again rose to record highs. Japan's Nikkei  is up 0.17%. Shanghai  gains 0.22 percent while Hong Kong's Hang Seng  added 0.26 percent. Australian ASX200 is mildly trading down by 0.08%.
  • U.S. stocks were higher at the close on Tuesday, as gains in the Telecoms, Basic Materials and Financials sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average rose 0.18% to hit a new all time high, while the S&P 500 index gained 0.11%, and the NASDAQ Composite index added 0.10%.
  • European markets finished mixed as of their recent closing prices. The FTSE 100 gained 0.30% while the DAX was higher by 0.02%. The CAC 40 was even.
  • The dollar index, which measures the greenback against a basket of six major rivals, fell 0.3% overnight, as investors awaited the Fed’s decision for clues on U.S. monetary policy.
  • The outcome of the Federal Open Market Committee’s two-day meeting is due later today, where the authority is widely expected to keep key rates on hold. However, the U.S. central bank may start trimming its over $4 trillion balance sheet. According to CME Group’s FedWatch Tool, traders are pricing in a 56% chance of a hike at a December meeting.
  • Meanwhile, U.S. President Donald Trump’s comments on North Korea also hurt demand for the greenback. Speaking at United Nations General Assembly in New York yesterday, Trump vowed to “totally destroy” North Korea if the nuclear-armed nation threatened the U.S. or its allies.

Rupee at 8-week low on Importers Dollar bids

Posted Date:-19-Sep-2017

Financial Market Overview

19th September, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee fell to the lowest level in nearly eight weeks against the dollar, dragged down by greenback demand from foreign banks and importers, while investors remained cautious ahead of the U.S. Federal Reserve’s two-day monetary policy review that begins later today.
  • The rupee ended at 64.3275 to a dollar, lowest since Jul. 26, against 64.13 at close yesterday. The session also marked the rupee’s largest single-session fall against the dollar since Aug. 10. Most other Asian currencies ended flat to lower against the greenback.

Indian Equities:-

  • Indian shares ended lower on Tuesday as financial stocks such as Housing Development Finance Corp HDFC.NS dragged both indexes amid investor caution ahead of the U.S. Federal Reserve's policy statement this week.
  • The broader NSE index, which hit a record high earlier in the session, closed down 0.05 percent at 10,147.55.
  • The benchmark BSE index was 0.07 percent lower at 32,402.37.

Global Markets:-

  • European markets are mixed. The FTSE 100 is higher by 0.41%, while Germany's DAX is off 0.14%. Shares in France is higher by 0.12% with the CAC 40 at 5,235.56.
  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 1.96%, while the Hang Seng led the Shanghai Composite lower. They fell 0.38% and 0.18% respectively.
  • The outcome of the Federal Open Market Committee’s two-day meeting is due tomorrow, where the authority is widely expected to keep key rates on hold. However, the U.S. central bank may start trimming its over $4 trillion balance sheet. According to CME Group’s FedWatch Tool, traders are pricing in a 56% chance of a hike at the December meeting.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended up 0.2%, rising for the first time in three sessions, tracking a jump in U.S. Treasury Yields amid expectations of a hawkish Fed policy. The index was last trading down 0.20% at 91.85.

Rupee opens unchanged before FED's 2-day policy meeting

Posted Date:-19-Sep-2017

Financial Market Overview

19th September, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee almost flat as investors cautious before Fed's 2-day meeting that starts later today; pair USDINR now at 64.14 against 64.13 previous close.
  • Pair to tip in range between today 64.00-64.20.

Indian Equities:-

  • The NSE Nifty turned flat after opening at fresh record high on Tuesday as investors looked for cues from two-day monetary policy meeting of Federal Reserve that will begin tonight.
  • The 30-share BSE Sensex was up 8.83 points at 32,432.59 and the 50-share NSE Nifty gained 6.20 points at 10,159.30.

Global Markets:-

  • Asian shares are trading mixed on Monday. Australia's main index  added 0.5 percent while Japan's Nikkei rose 1.51%, Hang Seng lost 0.06% and Shanghai Composite is trading lower by 0.25%.
  • U.S. stocks were higher at the close on Monday, as gains in the Industrials, Basic Materials and Financials sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average added 0.28% to hit a new all time high, while the S&P 500 index climbed 0.15%, and the NASDAQ Composite index gained 0.10%.
  • European markets finished mixed as of their recent closing prices on Monday. The FTSE 100 gained 0.52% while the DAX was higher by 0.32%. The CAC 40 was even.
  • Dollar index off 0.1% at 91.944, after 0.2% gain yesterday tracking further rise in US yields; 10-year US Treasury yield rose to 1-month high of around 2.24% overnight. Fed widely expected to keep benchmark interest rate unchanged, but markets to watch for any rate increase signals later in the year and to the timing on plans to unwind stimulus efforts.

Rupee at 4-week low as likely intervention erases gains

Posted Date:-18-Sep-2017

Financial Market Overview

18th September, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee fell to a four-week low against the dollar, as state-run lenders bought the greenback likely for the central bank, outweighing early gains from equity-related inflows and overnight decline in the dollar following an unexpected fall in U.S. retail sales.
  • The rupee closed at 64.13 to a dollar, lowest since Aug. 21, against 64.07 at close on Sep. 15. It rose to 64.0075 levels intraday, highest since Sep. 13, but pared gains on dollar purchases by at least two state-run lenders, likely on behalf of the Reserve Bank of India.

Indian Equities:-

  • India's NSE index ended at a record closing high on Monday as financials and automakers gained.
  • The broader NSE index closed up 0.67 percent at 10,153.10, while the benchmark BSE index ended 0.47 percent higher at 32,423.76, its highest in more than six weeks.
  • Bharti Infratel Ltd and Bajaj Auto Ltd surged 4 percent and 3.7 percent respectively.

Global Markets:-

  • European markets are higher today. The FTSE 100 is up 0.39% while the DAX gains 0.16%. The CAC 40 is trading up by 0.16%.
  • Asian markets finished broadly higher today with shares in Hong Kong leading the region. The Hang Seng is up 1.27% while Japan's Nikkei 225 is closed for a Holiday and China's Shanghai Composite is up 0.29%.
  • The dollar index, which measures the greenback against a basket of six major rivals, was last trading 0.11% lower. It ended down 0.3% on Sep. 15.

Rupee off highs as suspected intervention offsets inflows

Posted Date:-18-Sep-2017

Financial Market Overview

18th September, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee came off highs in afternoon trade, as state-run banks’ dollar purchases, likely on behalf of the central bank, offset early gains triggered by equity-related inflows and overnight decline in the greenback following an unexpected fall in U.S. retails sales.
  • The rupee was last seen at 64.06 to a dollar, against 64.07 at close on Sep. 15. The rupee hit an intraday high of 64.0750 to a dollar today, also highest since Sep.13, but pared gains on dollar purchases by at least two state-run banks, likely on behalf of the Reserve Bank of India.

Indian Equities:-

  • Equity benchmarks maintained morning uptrend, following rally in global peers on easing on North Korea tensions. Investors looked for cues from two-day Federal Reserve meeting that will begin on Tuesday.
  • The 30-share BSE Sensex was up 219.79 points at 32492.40 and the 50-share NSE Nifty gained 85.15 points at 10,170.65. About two shares advanced for every share falling on the BSE.

Global Markets:-

  • Asian markets finished broadly higher today with shares in Hong Kong leading the region. The Hang Seng is up 1.27% while Japan's Nikkei 225 is closed on a account of Holiday and China's Shanghai Composite is up 0.29%.
  • European markets are mixed today. The DAX is up 0.59% while the FTSE 100 gains 0.43%. The CAC 40 is trading higher by 0.41%.

Rupee edges higher as U.S data weighs on Dollar

Posted Date:-18-Sep-2017

Financial Market Overview

18th September, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee edges higher as dollar broadly flat to weak after unexpected decline in US retail sales last month dimmed expectations for interest rate increase in December; pair USDINR now at 64.01 against 64.07 previous close.
  • India’s merchandise exports rose 5.7% to $23.82 billion in August from the previous month, the first rise in five months and the highest since June, while imports also rose to $35.46 billion in August from $33.99 billion in July, government data showed on Sep. 15. The nation’s trade deficit widened for the first time in three months to $11.64 billion, from $11.45 billion in the previous month. The gap was at $7.71 billion in the same month a year earlier.
  • Pair to tip in range between today 63.90-64.10.

Indian Equities:-

  • Equity benchmarks started off the week on a strong note as the Nifty50 and Midcap opened at fresh record highs while the Nifty Bank soared over 25,000 level, tracking global cues.
  • The 30-share BSE Sensex was up 175.72 points at 32,448.33 and the 50-share NSE Nifty rose 63.20 points to 10,148.60.

Global Markets:-

  • Asian shares hit decade highs on Monday. Australia's main index  added 0.5 percent while Japan's Nikkei was closed for a holiday, Hang Seng rose 1.11% and Shanghai Composite is trading higher by 0.25%.
  • U.S. stocks were higher at the close on Friday, as gains in the Telecoms, Financials and Industrials sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average gained 0.29% to hit a new all time high, while the S&P 500 index added 0.18%, and the NASDAQ Composite index gained 0.30%.
  • European markets finished mixed to lower as of the most recent closing prices. Shares in London fell as the FTSE 100 dropped 1.10%. The DAX lost 0.17% while the CAC 40 in France closed unchanged.
  • Data released on Sep. 15 showed U.S. retail sales unexpectedly fell in August to 0.2% against economists’ expectation for a 0.1% rise in a Reuters’ poll. The print had risen 0.6% in the previous month.
  • Dollar index little changed at 91.887, after closing 0.3% lower on Friday at 91.868. Trading thin in Asia today, with Japanese markets closed for public holiday. Focus this week on FOMC meeting on Tuesday and Wednesday, in which Fed expected to start reducing its balance sheet, but keep interest rate unchanged.