Oct 23 2017

Rupee opened flat to lower; U.S tax reform progress lifts Dollar

Financial Market Overview

23rd October, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opens flat-to-lower at 65.07 against the dollar, in line with Asian peers, tracking broad dollar strength after the U.S. Senate passed a budget for next year, making way for potential tax reforms.  However, gains across global equities and likelihood of bunched-up dollar inflows following a holiday-truncated last week should limit any losses in the rupee. Pair USDINR Now at 65.09 against 65.0350 previous close.
  • Pair to tip in range between today 64.95-65.20.

Indian Equities:-

  • Equity benchmarks started off the week on a positive note Monday, with the Nifty reclaiming 10,150 level on short covering after over a percent loss seen in previous week. The market opened after a long weekend.
  • The 30-share BSE Sensex was up 80.01 points at 32,469.97 and the 50-share NSE Nifty gained 30.30 points at 10,176.80.
  • Hero Motocorp, Bharti Airtel, Dr Reddy’s Labs, Infosys, HUL, Cipla, TCS and Reliance Industries gained 1-2 percent. Bajaj Auto, Axis Bank, HDFC, Indiabulls Real, UPL and HPCL were under pressure in early trade.

Global Markets:-

  • Asian markets are mixed today. The Shanghai Composite is up 0.02%, Australian index ASX200 is higher by 0.01% and Japan’s Nikkei rises 0.93% while the Hang Seng is trading lower by 0.68%.
  • S. stocks were higher at the close on Friday, as gains in the Industrials, Financials and Basic Materials sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average gained 0.71% to hit a new all time high, while the S&P 500 index gained 0.51%, and the NASDAQ Composite index climbed 0.36%.
  • European markets finished higher on Friday with shares in France leading the region. The CAC 40 is up 0.08% while Germany’s DAX rises 0.08% and FTSE 100 closed unchanged.
  • The Japanese yen was trading 0.22% lower against the greenback after reports of Prime Minister Shinzo Abe’s ruling party’s victory at Sunday’s election, with his coalition keeping its two-thirds “super majority” in the lower house. Abe’s win dispelled fears that economic steps such as Bank of Japan’s easy monetary policy, taken under Abe’s leadership, could witness disruption.
  • The dollar index, which measures the greenback against a basket of six major rivals, closed 0.58% higher on Oct. 20, its largest single-session gain in over a month. The rally was following the U.S. Senate’s approval of a budget outline for 2018 on Thursday that cleared the way for Republicans to pursue a tax-cut package without Democratic support.  The Republican-controlled Senate approved the budget measure, which will add up to $1.5 trillion to the federal deficit over the next decade so as to pay for the proposed tax cuts, reports said.