Sep 05 2018

India Rupee Higher As Emerging Currencies Rebound

Financial Market Overview

5th September, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee is opened higher against the dollar as Asian currencies staged a minor recovery, led by the Chinese yuan. The rupee is open 71.40 after closing at an all-time low of 71.58 in the previous session The rupee is being helped by the recovery in Asian currencies despite upbeat U.S. manufacturing data, which sent long-term U.S. yields to three-week highs.
  • We expect the pair to trade in the range between 71.20 to 71.70

 

Indian Equities:-

  • It’s a flat start to the market on Wednesday morning, even as tepid global cues and a strengthening dollar weighing on investors’ concerns. The Nifty is trading below 11,550 range.
  • The Sensex is down 19.23 points or 0.05% at 38138.69, while the Nifty is up 1.70 points or 0.01% at 11522.00. The market breadth is narrow as 271 shares advanced, against a decline of 245 shares, while 63 shares were unchanged.
  • Weakness in the metals space has continued, with the Nifty Metal index falling over a percent, while auto and banks are trading in the red. Pharmaceutical names are the big gainers. The Nifty Midcap index is lower, down around 0.20 percent.

 

Global Markets:-

  • Asian markets are lower today as Japanese,Chinese and Hong Kong shares fall. The Nikkei 225 is off 0.29% while the Hang Seng is down 1.56%. The Shanghai Composite is off 0.57%. The Australian’s ASX200 is down today by -54 points and -0.87% .
  • European markets closed lower yesterday with shares in France leading the region. The CAC 40 is down 1.31% while Germany’s DAX is off 1.10% and London’s FTSE 100 is lower by 0.62%.
  • U.S. stocks fell on Tuesday as trade concerns lingered and declines in Facebook and Nike shares weighed on Wall Street’s major indexes, though data showing U.S. manufacturing activity accelerated in August kept losses in check.
  • The Dow Jones Industrial Average fell 12.34 points, or 0.05 percent, to 25,952.48, the S&P 500 lost 4.79 points, or 0.17 percent, to 2,896.73 and the Nasdaq Composite dropped 18.29 points, or 0.23 percent, to 8,091.25.
  • U.S. manufacturing activity accelerated to more than a 14-year high in August, boosted by a surge in new orders, but increasing bottlenecks in the supply chain because of a robust economy and import tariffs could restrain further growth. The ISM said its index of national factory activity jumped to 61.3 last month, the best reading since May 2004, from 58.1 in July. A reading above 50 indicates growth in manufacturing, which accounts for about 12 percent of the U.S. economy.
  • The Chinese yuan advanced 0.2% against the dollar to 6.8310, recovering from its biggest decline in two weeks in the previous session. The People’s Bank of China sent the daily yuan mid-point at 6.8266, which is 9 pips firmer than what it would have been with the countercyclical factor.