Nov 01 2017

Rupee at 6-week high tracking record closing of Indian equities

Financial Market Overview

01st November, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee rose to a six-week high against the dollar, as record gains in shares boosted optimism about foreign fund inflows, even as caution prevailed ahead of the outcome of the U.S. Federal Reserve’s policy meeting later today. Foreign investors have been piling into debt as well, sending the rupee higher.
  • Dollar inflows related to the ongoing initial public offerings also supported the rupee, dealers said. The IPO of New India Assurance Co. Ltd. that opened for subscription today was fully subscribed, while that of Mahindra Logistics was also fully subscribed on the second day.
  • The rupee settled at 64.59 to a dollar, its highest since Sep. 20, against 64.75 at yesterday’s close. The currency had risen to a day’s high of 64.51, but pared some gains as private banks stepped up dollar purchases, dealers said. Some dealers also speculated the presence of the central bank. Most other Asian currencies also ended higher.

Indian Equities:-

  • Indian shares ended at record closing highs on Wednesday, powered by gains in financials such as ICICI Bank Ltd ICBK.NS and Housing Development Finance Corp, while a rally in broader Asia lifted the sentiment.
  • The BSE index rose 1.17 percent to 33,600.27. The broader NSE index, breaching the 10,400 level for the first time ever, ended 1.02 percent higher at 10,440.50.

Global Markets:-

  • European markets are broadly higher today with shares in Germany leading the region. The DAX is up 1.68% while France’s CAC 40 is up 0.43% and London’s FTSE 100 is up 0.22%.
  • Asian markets finished broadly higher today with shares in Japan leading the region. The Nikkei 225 is up 1.86% while Hong Kong’s Hang Seng is up 1.23% and China’s Shanghai Composite is up 0.08%.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended little changed overnight and was last trading up 0.13%, as participants await the conclusion of the Fed’s two-day meet. The central bank is widely expected to maintain status quo on interest rates, but investors will watch out for commentary indicating a rate hike at the December meet.