India Rupee Falls On Crude Oil Uptick, Weak Local Shares

India Rupee Falls On Crude Oil Uptick, Weak Local Shares

19 Sep 2019 06:48 PM

Financial Market Overview

19th Sep, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee fell against the dollar following an uptick in crude oil prices amid reports that Saudi Arabia had sought crude supply from Iraq and on a sell-off in local equities.
  • The rupee settled at 71.3175 to a dollar, against its previous close of 71.23. The unit opened at 71.35 and rose to a one-week high of 71.06, before falling to as much as 71.38 in late trade. Heavy inflows in early trade led to stop losses getting triggered in the pair (USD/INR) that took it to a one-week low, But a turnaround in crude oil move erased most of the pair's early fall. Overall, the pair does not have any fundamental reason to fall and in near term it is expected to rise as Fed policymakers gave mixed signals on the rate outlook.

Indian Equities

  • The benchmark indices witnessed a huge selling on September 19 but minor recovery in the final hour helped the Nifty to close above 10,700 level.
  • At close, the Sensex was down 470.41 points at 36,093.47, while Nifty was down 135.90 points at 10,704.80. About 720 shares have advanced, 1763 shares declined, and 118 shares are unchanged. Yes Bank, Zee Entertainment, Tata Steel, IndusInd Bank and ICICI Bank were among major losers on the Nifty, while gainers include Tata Motors, UPL, Bharti Airtel, Coal India and HDFC Bank.

Global Markets

  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.54% while France's CAC 40 is up 0.40% and Germany's DAX is up 0.16%.
  • The S&P 500 ended marginally higher on Wednesday after Federal Reserve policymakers cut interest rates by a quarter of a percentage point, as expected, but gave mixed signals about their next move. With continued economic growth and strong hiring "the most likely outcomes," the Fed nevertheless cited "uncertainties" about the outlook and pledged to "act as appropriate" to sustain the expansion. The Dow Jones Industrial Average rose 0.13% to end at 27,147.08 points, while the S&P 500 gained 0.03% to 3,006.73. The Nasdaq Composite dropped 0.11% to 8,177.39.
  • U.S. homebuilding surged to more than a 12-year high in August as both single- and multi-family housing construction accelerated, suggesting that lower mortgage rates were finally providing a boost to the struggling housing market. The Federal Reserve cut interest rates by another 25 basis points on Wednesday to blunt the hit on the economy from the trade tensions, but offered mixed signals on the next move. The U.S. central bank said "economic activity has been rising at a moderate rate." The Fed lowered borrowing costs in July for the first time since 2008.
  • British retail sales unexpectedly fell in August after shoppers bought less online than the month before, when an annual promotion by Amazon appeared to have encouraged them to splash out, official figures showed on Thursday. Monthly retail sales volumes dipped by 0.2%, the Office for National Statistics said, compared with an average forecast for a flat reading in a Reuters poll of economists and the first fall in three months.