India Rupee Over 2-Week Low On State-Run Banks’ Dollar Bids

India Rupee Over 2-Week Low On State-Run Banks’ Dollar Bids

18 Jul 2019 05:31 PM

Financial Market Overview

18th July, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee fell to a more-than-two-week low against the dollar on greenback purchases by state-run lenders, likely on behalf of the Reserve Bank of India, and as local shares weakened. The rupee ended at 68.95 to a dollar, its lowest since Jul. 1, against 68.81 at previous close. The local unit opened at 68.76 and fell to the day’s low of 69, the first time since early July, in late trade on suspected purchases by the central bank at various levels.
  • The impact of weak dollar index and soft crude oil prices was very limited on the rupee as there were outflows from the domestic equities and also purchases by state-run banks outweighed all the positives in the market. Markets would be closely watching the developments regarding the trade conflict between the U.S. and China.

Indian Equities

  • Benchmark indices fell sharply in late trade as US-China trade worries dragged global peers. All sectoral indices ended in red with PSU Bank, Auto and Metal falling 2.5-3 percent.
  • The BSE Sensex was down 318.18 points at 38,897.46 and the Nifty50 fell 90.60 points to 11,596.90. More than two shares declined for every share rising on the BSE.
  • The broader markets fell more than benchmark indices as the Nifty Midcap was down 1.7 percent and Smallcap index 1 percent.Reliance Industries, RBL Bank, Dhanuka Agritech, Mahindra CIE Automotive, JM Financial, Phillips Carbon Black, Dabur India, L&T Technology Services, ICICI Lombard General Insurance Company, Bhageria Industries, Hindustan Zinc, L&T Finance Holdings.

Global Markets

  • European markets are mixed. The CAC 40 is higher by 0.17%, while the DAX is leading the FTSE 100 lower. They are down 0.39% and 0.29% respectively.
  • U.S. stock indexes fell on Wednesday as weak results from CSX Corp stoked concerns that the protracted trade war between the United States and China could hurt corporate earnings. CSX shares tumbled 10.3%, their biggest one-day drop since 2008, after the rail freight company posted lower-than-expected quarterly profit and cut its full-year revenue forecast. Ongoing trade tensions have contributed to a decline in truck and rail freight volumes in the first half of 2019. The Dow Jones Industrial Average fell 115.78 points, or 0.42%, to 27,219.85, the S&P 500. lost 19.62 points, or 0.65%, to 2,984.42 and the Nasdaq Composite dropped 37.59 points, or 0.46%, to 8,185.21.
  • U.S. mortgage applications decreased last week, led by a drop in loan requests to buy a home, as some home borrowing costs climbed to their highest level in a month. The Washington-based group's seasonally adjusted index on loan requests, both to buy a home and refinance one, fell 1.1% to 500.2 from 505.8 in the week ended July 12.
  • U.S. homebuilding fell for a second straight month in June and permits dropped to a two-year low, suggesting the housing market continued to struggle despite declining mortgage rates. The Commerce Department report on Wednesday also showed housing completions at a six-month low and a modest increase in the number of homes under construction, indications that an inventory squeeze that has haunted the market could persist for a while. Weak housing and manufacturing are holding back the economy, offsetting strong consumer spending.


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