Oct 24 2017

Rupee edges higher as Dollar stops its overnight gain

Financial Market Overview

24th October, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee stay tad higher against the dollar in early trade, tracking gains across most Asian peers, after the greenback erased all overnight gains to trade lower as investor focus shifted to selection of the next Federal Reserve chief from potential U.S. tax reforms. Pair USDINR Now at 64.93 against 65.0175 previous close.
  • Pair to tip in range between today 64.86-65.06.

Indian Equities:-

  • Equity benchmarks extended previous day’s gains in opening on Tuesday, backed by positive Asian cues. Metals, technology, cement and select banks stocks gained strength.
  • The 30-share BSE Sensex was up 131.99 points at 32,638.71 and the 50-share NSE Nifty rose 22.00 points to 10,206.90.
  • Indiabulls Housing Finance, Ambuja Cements, BPCL, Zee Entertainment, Tata Steel and UltraTech Cement were early gainers.
  • Ahead of earnings later today, Infosys was up 0.6 percent while HDFC Bank was flat.
  • Bharti Infratel, Sun Pharma, Bajaj Finance, HCL Technologies and Mahindra & Mahindra were losers in early trade.

Global Markets:-

  • Asian markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.08% while the Hang Seng is up 0.11%. The Nikkei 225 is trading up 0.17% and Australian ASX200 is mildly higher by 0.02%.
  • S. stocks were lower at the close on Monday, as losses in the Telecoms, Oil & Gas and Consumer Services sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average declined 0.23%, while the S&P 500 index fell 0.40%, and the NASDAQ Composite index declined 0.64%.
  • European markets finished higher yesterday with shares in France leading the region. The CAC 40 is up 0.27% while Germany’s DAX is up 0.09% and London’s FTSE 100 is up 0.02%.
  • The dollar index, which measures the greenback against a basket of six major rivals, closed 0.25% higher overnight, extending a rally post the U.S. Senate’s approval of a budget outline for 2018 last week. The move cleared the way for Republicans to pursue a tax-cut package without Democratic support.
  • However, the index was last trading off 0.20% in early trade. According to reports, President Donald Trump said late yesterday he was close to naming his nominee for Fed chairman. Potential candidates in running for the position feature current Fed Chair Janet Yellen, whose term expires in February, Fed Governor Jerome Powell, Stanford University economist John Taylor, Trump’s chief economic advisor Gary Cohn, and former Fed Governor Kevin Warsh. The appointment of a hawkish candidate at the U.S. central bank will likely boost the dollar.