Aug 02 2018

India Rupee Higher After Federal Reserve’s policy decision

Financial Market Overview

02nd August, 2018

Morning Update:-                                                                                  



  • The Indian rupee opened higher by 6 paise at 68.37 per dollar on Thursday versus previous close 68.43. Rupee rose against the US dollar in the latter half of the session after the RBI considered raising rates by 25 bps but retained its neutral stance as it aimed to contain inflation while not choking growth.
  • The rupee has “a bit of momentum going for it” following yesterday’s MPC interest rate increase and considering that the Fed policy did not “have any major impact” on Asian currencies,
  • We expect the pair to trade in the range between 68.25-68.55 today.

Indian Equities:-

  • The benchmark indices are opened lower with Nifty slipped below 11,350 and Sensex down over 100 points. Nifty PSU banks down 1% led by SBI, Syndicate Bank, Allahabad Bank, Canara Bank, Bank of India, Andhra Bank and Bank of Baroda.
  • The Sensex is down 132.87 points at 37,388, and the Nifty down 36.20 points at 11,310. About 533 shares have advanced, 558 shares declined, and 57 shares are unchanged.
  • Nifty Bank was down 0.5 percent led by ICICI Bank, Axis Bank, Yes Bank, SBI. Hindalco are major losers.

Global Markets:-

  • Asian markets are trading down today. The Australian’s  ASX200 losse.-0.20% while the Shanghai composite is trading nagative -1.73% and Hong Kong’s Hang Seng is trading with bearish hand- 2.05%.
  • European markets finished broadly lower yesterday with shares in London leading the region. The FTSE 100 is down 1.24% while Germany’s DAX is off 0.53% and France’s CAC 40 is lower by 0.23%.
  • U.S. stocks closed broadly lower today, Negative in industrial.The S&P 500 and Dow slipped on Wednesday as gains in Apple were offset by a drop in energy and industrial shares, while the U.S. Federal Reserve remained on course for an expected hike in September.
  • The Dow Jones Industrial Average fell 79.34 points, or 0.31 percent, to 25,335.85, the S&P 500 lost 2.73 points, or 0.10 percent, to 2,813.56 and the Nasdaq Composite added 35.50 points, or 0.46 percent, to 7,707.29.
  • The rate of growth in the economy’s manufacturing sector slowed in July, according to a report released on Wednesday.The manufacturing purchasing managers’ index fell to 58.1 in July, from 60.2 the previous month. The new orders index fell to 60.2 in July from 63.5 a month earlier. The employment index unexpectedly increased to 56.5 last month from the prior 56.0. Economists had predicted no change.
  • The dollar index ended slightly higher yesterday, 10-year US yields were back to near the 3% level, and the S&P 500 index posted moderate losses.The dollar index ended slightly higher yesterday, 10-year US yields were back to near the 3% level, and the S&P 500 index posted moderate losses. Fed left interest rates unchanged as was expected. The central bank said the U.S. economy and labor market conditions remained robust, keeping it on course for raising rates once more in September, which would be its third this year.