Nov 14 2017

Rupee closed unchanged; India’s WPI touches 6-month high in October

Financial Market Overview

14th November, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee swung between gains and losses before ending unchanged against the dollar, as likely greenback sales by lenders on behalf of the central bank offset losses amid foreign fund outflow fears tracking a sharp uptick in government bond yields. Greenback demand from importers and weak local shares also weighed on the rupee.
  • The rupee ended at 65.4150 to a dollar, unchanged against the previous close. It opened at 65.33 and then fell to an intraday low of 65.5425. However, greenback sales by at least one large state-run bank, likely for the Reserve Bank of India, limited further losses in the rupee.
  • India’s annual wholesale price inflation picked up in October to a six-month high, driven by faster rises in prices of food and fuel products, government data showed on Tuesday. India’s wholesale price inflation rose 3.59% in October on-year, recording the fastest pace of gain since April, driven by costlier food items, including a sharp surge in onion prices.

Indian Equities:-

  • Indian shares ended lower on Tuesday as accelerating inflation reduced the possibility of the central bank cutting interest rates at its next policy meeting.
  • The broader NSE index closed 0.38 percent lower at 10,186.60, while the benchmark BSE index dropped 0.28 percent to 32,941.87.
  • Larsen & Toubro was the biggest drag with a decline of 2.45 percent.

Global Markets:-

  • European markets are mixed today. The FTSE 100 is up 0.13% while the DAX lost 0.04% and the CAC 40 is off 0.22%.
  • Asian markets finished mixed to lower as of the most recent closing prices. Shares in China fell as the Shanghai Composite dropped 0.53%. The Hang Seng lost 0.10% while the Nikkei 225 in Japan closed unchanged.
  • British inflation held at its highest level in five-and-a-half years in October, and wrong-footed expectations from the Bank of England and other economists that it would hit a new peak.
  • Consumer price inflation held at an annual rate of 3.0 percent in October, the Office for National Statistics said, below economists’ average expectation in a poll for a 3.1 percent annual rise.
  • The BoE said this month, after it raised interest rates for the first time in a decade, that inflation would probably peak at 3.2 percent in October and then fall slowly to just above its 2 percent target in three years’ time.
  • The European Union’s statistics office Eurostat confirmed its estimate from Oct. 31 that the gross domestic product (GDP)of the 19 countries using the euro grew by 0.6 percent in July-September from the previous three months and was 2.5 percent higher than in the same period of 2016.
  • In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment rose to 18.7 this month from October’s reading of 17.6. Analysts had expected the index to increase to 20.0 in November. On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.