Oct 13 2017

Rupee edges higher traking Asian cues; U.S inflation data in focus

Financial Market Overview

13th October, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee edge higher against the dollar in early trade, in line with Asian peers, while greenback steadied ahead of the key U.S. inflation data for further clues on the next interest rate hike in the world’s biggest economy; pair USDINR now at 64.89 against 65.08 previous close.
  • India’s retail inflation edged up 3.28% on-year in September, lagging expectations of acceleration to 3.6%, as prices of food items increased at a slower pace, data showed yesterday. Meanwhile, August’s print was also revised down to 3.28% against earlier estimate of 3.36%.
  • Pair to tip in range between today 64.80-65.10.

Indian Equities:-

  • Equity benchmarks extended previous day’s gains in opening, with the Nifty reclaiming 10,100 level and inching towards its record high level. The rally was driven by Reliance Industries and Bharti Airtel.
  • The 30-share BSE Sensex was up 113.08 points at 32,295.30 and the 50-share NSE Nifty rose 31.40 points to 10,127.80.

Global Markets:-

  • Asian markets are mixed today as Japanese and Australian shares show gains. The Nikkei 225 is up 0.23% while the ASX200 is up 0.30%. The Shanghai Composite is trading down 0.15% and Hong Kong Hang’s Seng is lower by 0.02%.
  • S. stocks were lower after the close on Thursday, as losses in the Telecoms, Consumer Services and Oil & Gas sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average fell 0.14%, while the S&P 500 index lost 0.17%, and the NASDAQ Composite index fell 0.18%.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.30% and the DAX rose 0.09%. The CAC 40 lost 0.03%.
  • The dollar index, which measures the greenback against a basket of six major rivals, snapped a four-day losing trend to close 0.05% higher overnight following U.S. Labor Department data that showed its producer price index for final demand rose 0.4% in September against a 0.2% increase in August.
  • The data helped take the edge off the Federal Reserve’s meeting minutes released on Oct. 11 that upheld expectations of a likely rate hike at the next meeting in December but also showed policymakers’ concerns over the inflation outlook.
  • Traders now await the September consumer price data due later today, along with September retail sales and October University of Michigan sentiment preliminary.
  • Chinese exports climbed 9.0% in September in yuan terms, while Imports rose 19.5%, leaving a trade surplus of 193 billion yuan, data showed earlier today.