India Rupee Rises On Likely Debt Inflows

India Rupee Rises On Likely Debt Inflows

15 Jul 2019 05:27 PM

Financial Market Overview

15th July, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee ended higher against the dollar on likely foreign fund inflows into local debt and as traders awaited the release of trade numbers for June. The rupee ended at 68.5350 to a dollar, against 68.68 at previous close.
  • However, the local unit opened at 68.54 and for the day traded in a narrow 68.51- 68.6050 paise band, tracking movement in regional assets that remained muted after an initial uptick.
  • This week, around half dozen speakers from Fed including Jerome Powell are scheduled to speak, and it is likely that they would try to tame down market expectations on rate cut more towards 25 bps rate cut instead of a 50 bps one. Any hint in speeches that can tilt market expectation more towards a quarter percentage point rate cut will push rupee towards 69 mark.

Indian Equities

  • The rally in Infosys drove benchmark indices higher but broader markets underperformed.
  • The BSE Sensex was up 160.48 points at 38,896.71 and the Nifty50 gained 35.90 points at 11,588.40. The market breadth was in favour of bears as about two shares declined for every share rising on the BSE. The Nifty Midcap and Smallcap indices slipped nearly a percent each.
  • Benchmark indices continued to trade higher, driven largely by Infosys after its Q1 earnings. The BSE Sensex rose 165.12 points to 38,901.35 and the Nifty50 gained 38.50 points at 11,591.

Global Markets

  • European markets are mixed today. The FTSE 100 is up 0.14% while the DAX gains 0.14%. The CAC 40 is off 0.10%.
  • All three major indexes posted record closing highs on Friday as firm expectations for an interest-rate cut from the Federal Reserve continued to propel shares while investors awaited next week's kickoff of the corporate earnings season. The S&P 500 closed above the 3,000 level for the first time, with the industrial consumer discretionary and materials sectors each posting gains of at least 1%. The Dow Jones Industrial Average rose 243.95 points, or 0.9%, to 27,332.03, the S&P 500 gained 13.86 points, or 0.46%, to 3,013.77 and the Nasdaq Composite added 48.10 points, or 0.59%, to 8,244.14. For the week, the S&P 500 rose 0.8%, the Dow added 1.5% and the Nasdaq gained 1%.
  • China’s second-quarter GDP growth slowed to a 27-year low, data showed on Monday, but the country’s industrial output, retail sales and fixed-asset investment all beat forecasts. The country’s GDP growth slowed to 6.2% in the April-June period from a year earlier, data from the statistics bureau showed on Monday. The figure was in line with expectations but lower than first quarter’s 6.4% year-on-year growth. Meanwhile, industrial output climbed 6.3% from 12 months earlier, compared to the expected 5.2%.
  • Sales of private homes by developers in Singapore rose 25.5% in June from a year earlier, government data showed on Monday. Data compiled by the Urban Redevelopment Authority showed developers sold 821 units last month, compared with 654 units in the same month a year earlier. However, sales fell 13.8% from the 952 units sold in May.