India Rupee Falls On State-Run Banks’ Dollar Buy, Weak Shares

India Rupee Falls On State-Run Banks’ Dollar Buy, Weak Shares

18 Nov 2019 05:21 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee fell for the first time in three sessions against the U.S. currency on dollar purchases by state-run banks and as local equities retreated from the day’s high. The rupee settled at 71.8425 to a dollar against its previous close of 71.78.
  • The local unit opened at 71.68 and rose to the day’s high of 71.59. Amid lack of positive cues, traders who were short on the USD/INR pair in early trade squared off their positions in late session to prevent any overnight risk. Focus is now on the Fed minutes, where it is likely that the rate in the world’s largest economy will be kept on hold for the rest of the year.

Indian Equities

  • Indian shares ended mostly flat on Monday, with gains in metal stocks and public sector banks offsetting losses in IT and auto stocks. The NSE Nifty 50 index ended mostly unchanged at 11,888, while the S&P BSE Sensex closed 0.1% lower at 40,316.
  • Some people who bought at lower levels are booking profits. After gaining so much in the past one month, the market is trying to consolidate around the present levels. The Nifty main index has risen over 12% since mid August.

Global Markets

  • European markets are mixed. The FTSE 100 is higher by 0.11%, while the CAC 40 is leading the DAX lower. They are down 0.24% and 0.20% respectively.
  • Fresh optimism over U.S.-China trade talks pushed major U.S. stock indexes to record closing highs on Friday, with the Dow breaching the 28,000 level and the S&P 500 registering a sixth straight week of gains, its longest weekly winning streak in a little more than two years. With the Dow closing above 28,000 for the first time. S&P 500 futures were indicating a slight gain at Friday's open on optimism stemming from the latest comments on U.S.-China trade talks.
  • U.S. retail sales rebounded moderately in October although consumers did cut back on purchases of big-ticket household items like furniture and discretionary spending, which could temper expectations for a strong holiday shopping season.
  • U.S. manufacturing output slumped in October by the most in six months as an auto workers’ strike at General Motors curtailed vehicle production and the trade war continued to weigh on other factories. The 0.6% decline in output followed a 0.5% decrease the previous month, Federal Reserve data showed Friday. Excluding the 7.1% drop in motor vehicle output, which was the largest since January, factory production decreased a more modest 0.1% for a second month.