India Rupee At 6-Month Low On Plunge In Stocks, Global Risk-Off

India Rupee At 6-Month Low On Plunge In Stocks, Global Risk-Off

13 Aug 2019 05:38 PM

Financial Market Overview

13th Aug, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee fell for a second day to close at a six-month low against the dollar, tracking a slump in shares amid trade concerns and political uncertainty in some regions.
  • The rupee settled at day's low of 71.40 to a dollar, its lowest since Feb. 7, against 70.80 in the previous session. The local unit opened at 71.19, and briefly rose to day’s high of 71.03 on dollar sales by a state-run lender. The pair (USD/INR) has convincingly broken many technical resistance marks in last few sessions this has led to exporters taking a bit easy when it comes to selling on the uptick, while importers have started panicking.
  • Some ease in the jittery global market can return if the market gets a good hint by the Fed over its likely rate action. until then the pair may trade in 70.50-71.70 technical band for next one week.

Indian Equities

  • After holding on the gains in the first half, the market gave up all its intraday gains in the second half and ended near day's low with Nifty finished below 10,950.
  • At close, the Sensex was down 623.75 points at 36,958.16, while Nifty was down 183.80 points at 10,925.90. About 870 shares have advanced, 1621 shares declined, and 144 shares are unchanged. 
  • Yes Bank, M&M, UPL, Bajaj Finance and Bajaj Finserv were among major losers on the Nifty, while gainers were Indiabulls Housing, Reliance Industries, Sun Pharma, GAIL and Hindalco Industries. Among sectors, except energy (up 1.9 percent), all other indices are ended in the red led by the infra (down 3.6 percent), auto (down 4 percent).

Global Markets

  • European markets are lower today with shares in Germany off the most. The DAX is down 0.71% while London's FTSE 100 is off 0.38% and France's CAC 40 is lower by 0.34%.
  • U.S. stocks dropped in a broad sell-off on Monday as simmering geopolitical tensions spooked equity investors and drove a bond market rally while the protracted U.S.-China trade war stoked fears of impending recession. All three major U.S. stock indexes closed sharply lower in light trading, with little to soothe market jitters over Hong Kong protests, Argentine President Mauricio Macri's primary election defeat, and the U.S.-China tariff dispute that has rattled markets for months. The Dow Jones Industrial Average fell 391 points, or 1.49%, to 25,896.44, the S&P 500 lost 35.96 points, or 1.23%, to 2,882.69 and the Nasdaq Composite dropped 95.73 points, or 1.2%, to 7,863.41.
  • Britain's labor market showed unexpected strength in the second quarter, in sharp contrast with figures last week that showed the economy contracted over the same period as the country gears up for Brexit. Total earnings growth including bonuses rose by an annual 3.7% in the three months to June - the highest rate since June 2008 and up from 3.5% in May.
  • The mood among German investors plummeted far more than expected in August, a survey showed on Tuesday, and the ZEW institute blamed trade disputes and higher chances of a no-deal Brexit for a worsening outlook in Europe's biggest economy. Investors sentiment fell to -44.1 from -24.5 in July, its lowest level since December 2011.
  • The benchmark Brent crude oil contract was last trading 0.4% lower at $58.34 per barrel.



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