Nov 15 2017

Rupee opens little changed as wider trade gap offset gains of weaker Dollar

Financial Market Overview

15th November, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee open little changed against the dollar, as data showing domestic trade gap widened to nearly three-year high, while exports snapped two months of growth, may offset impact of broad greenback weakness following gains in the euro; pair USDINR now at 65.35, against 65.4150 previous close.
  • India’s merchandise exports fell 19.29% to $23.09 billion in October from the previous month, the first fall in two months, government data showed yesterday. Imports fell 1.27% to $37.12 billion in October from $37.60 billion in September. On year-over-year basis, merchandise exports declined 1.12% last month, while imports rose 7.60%. Trade deficit widened to $14.02 billion in October, the highest since November 2014, from $8.98 billion in the previous month. The gap was at $11.13 billion in the same month a year earlier.
  • Pair to tip in range between today 65.25-65.45.

Indian Equities:-

  • Equity benchmarks opened mildly lower on Wednesday, tracking subdued global cues following correction in metals and crude oil prices.
  • The 30-share BSE Sensex was down 41.86 points at 32,900.01 and the 50-share NSE Nifty fell 16.70 points to 10,169.90.
  • Sun Pharma, Lupin, Vedanta, Hindalco, NALCO, Bajaj Finance, Bharti Infratel and GAIL were early losers while HPCL, BPCL, TCS, Ambuja Cements and Dr Reddy’s Labs were early gainers.

Global Markets:-

  • Asian stocks slipped on Wednesday after weaker crude oil prices took a toll on Wall Street. China’s Shanghai index was down 0.74 percent, Australian stocks dropped 0.42 percent and South Korea’s KOSPI shed 0.3 percent. Japan’s Nikkei lost 1.47 percent.
  • S. stock indexes fell on Tuesday. The Dow Jones Industrial Average fell 30.23 points, or 0.13 percent, to end at 23,409.47, the S&P 500 lost 5.97 points, or 0.23 percent, to 2,578.87 and the Nasdaq Composite dropped 19.72 points, or 0.29 percent, to 6,737.87.
  • European markets finished lower Yesterday with shares in France leading the region. The CAC 40 is down 0.49% while Germany’s DAX is off 0.31% and London’s FTSE 100 is lower by 0.01%.
  • The dollar index, which measures the greenback against a basket of six major rivals fell to over two-week low yesterday, ending down 0.7%, following a bounce in the euro on stronger-than-expected third quarter economic growth in Germany. Data released yesterday showed, Germany’s seasonally adjusted gross domestic product (GDP) rose by 0.8% on the quarter, against Reuters poll expectation of 0.6%. However, strong U.S. producer price data limited losses in the dollar. U.S. producer prices rose more than expected in October, by 0.4%, in line with September. On year-on-year basis, the increase in the PPI was 2.8%, the largest rise since February 2012, from 2.6% annual expansion in September.