India Rupee Snaps 2-Day Fall As U.S. Delays Some China Tariffs

India Rupee Snaps 2-Day Fall As U.S. Delays Some China Tariffs

14 Aug 2019 05:41 PM

Financial Market Overview

14th Aug, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee rose for the first time in three sessions against the dollar, as investors’ appetite for risk assets improved after U.S. delayed implementing tariffs on some Chinese goods.
  • The rupee settled at 71.27 to a dollar, against 71.40 at previous close. The local unit opened at 71.00, and briefly rose to the day’s high of 70.86 before dropping to day’s low of 71.35 in late trade. Indian financial markets will be shut tomorrow for Independence Day.
  • Dollar bids in the market was mostly by state-run lenders for oil importers. Since risk of uptick in pair (USD/INR) lingers, importers will not want to lose on the opportunity to buy the pair on dips. The move in the local unit will remain restricted in the broad 70.50-71.50 band for the week.

Indian Equities

  • Benchmark indices ended higher but off day's high on August 14 with Nifty finished above 11,000 level helped by the metal, infra and banking stocks.
  • At close, the Sensex was up 353.37 points at 37,311.53, while Nifty was up 103.50 points at 11,029.40. About 1297 shares have advanced, 1148 shares declined, and 142 shares are unchanged.  UPL, Bajaj Finserv, Vedanta, Tata Steel and Zee Entertainment were among major gainers on the Nifty, while losers were Sun Pharma, Indiabulls Housing, Wipro, Dr Reddy’s Labs and Coal India. On the sectoral front, the buying was seen in the metal (up 2.3 percent), infra (up 1.6 percent) followed by banks, FMCG, energy and IT, while pharma stocks remained under pressure. BSE Midcap index was up 0.8 percent and smallcap index was up 0.4 percent.

Global Markets

  • European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.49% while France's CAC 40 is off 1.36% and London's FTSE 100 is lower by 0.98%.
  • U.S. stocks closed higher on Tuesday after an announced delay of planned tariffs on some Chinese imports brought buyers back to the equities market in a broad-based rally. Tech stocks, headed up by Apple Inc led all three major U.S. indexes into the black following the announcement, which calmed fears over the U.S.-China trade war and growing signs of imminent recession. The Dow Jones Industrial Average rose 372.54 points, or 1.44%, to 26,279.91, the S&P 500 gained 42.48 points, or 1.47%, to 2,926.23 and the Nasdaq Composite added 152.95 points, or 1.95%, to 8,016.36.
  • The euro zone's GDP barely grew in the second quarter of 2019, data showed on Wednesday, as economies across the bloc lost steam and the largest, Germany. European Union statistics office Eurostat said gross domestic product (GDP) growth in the 19-country euro zone was 0.2% in the second quarter versus the previous quarter, a slowdown from 0.4% percent in the first three months of 2019. The GDP flash estimates numbers, including year-on-year growth of 1.1% from the second quarter of 2019. German GDP fell 0.1% quarter-on-quarter, Germany's Federal Statistics Office said earlier on Wednesday. The annual growth rate in Europe's largest economy slowed to 0.4% in the second quarter from 0.9% in the first.
  • Britain's inflation rate unexpectedly overshot the Bank of England's 2% target on Wednesday. Annual consumer price inflation rose to a three-month high of 2.1% in July from 2.0% in June.



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