Oct 24 2017

Rupee falls as importers Dollar demand offset gains

Financial Market Overview

24th October, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee fell to a near-two-week low against the dollar, as oil and other importers’ greenback demand erased early gains from higher local shares and a weaker greenback amid ongoing speculation over the next Federal Reserve chief’s selection.
  • The rupee settled at 65.0550 to a dollar, lowest since Oct. 12, from 65.02 at the previous close. It rose to 64.89, its highest since Oct. 17, before turning lower to 65.10. Most Asian currencies also rose against the dollar.
  • India expects current account deficit to be below 2% of gross domestic product in this financial year, Economic Affairs Secretary Subhash Garg said today in a much-awaited post cabinet briefing. The federal government is working to meet fiscal deficit target 3.2% in this financial year and will take a final call in December, while retail inflation is seen in 3.5%-4.0% band in this year.

Indian Equities:-

  • Indian shares rose for a second straight session on Tuesday, with Asian Paints Ltd surging on strong quarterly results, while state-owned banks rose on media reports the government could inject more capital into the sector.
  • The broader NSE index closed up 0.22 percent at 10,207.7, while the benchmark BSE index ended 0.31 percent higher at 32,607.34.
  • Asian Paints rose nearly 5 percent. Nifty PSU bank index closed up 3.8 percent, with State Bank of India rising 3.6 percent.

Global Markets:-

  • European markets are higher today. The CAC 40 is up 0.29% while the DAX gains 0.18%. The FTSE 100 is up 0.05%.
  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.50% and the Shanghai Composite rose 0.22%. The Hang Seng lost 0.53%.
  • Euro zone private sector activity continued to expand steadily in October. The preliminary reading of the Markit manufacturing purchasing managers’ index came in at 58.6 this month from 58.1 in September. Economists had expected a slight decline to 57.8.
  • The services PMI ticked down to 54.9, compared to expectations for 55.6 from 55.8 a month earlier.
  • The composite output index, which measures the combined output of both the manufacturing and service sectors slid to 55.9 from 56.7, compared to expectations for 56.5. A reading above 50.0 on the index indicates industry expansion, below indicates contraction.