India Rupee Steady As State-Run Banks’ Dollar Bids Offset Oil Impact

India Rupee Steady As State-Run Banks’ Dollar Bids Offset Oil Impact

25 Jun 2019 06:50 PM

Financial Market Overview

25th June, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee was little changed against the dollar as greenback demand from state-run lenders offset the impact of lower crude oil prices. The rupee ended at 69.34 to a dollar, against 69.35 at the previous close. The local unit opened at 69.32 and briefly rose to a day’s high of 69.23, also the highest since Jun. 7, before erasing all of its gains to decline to 69.40. Rupee is a comparatively attractive option among other emerging market currencies for carry trade, as Indian interest rate is high with a relatively stable economy. Hence hopes of more Fed rate cut has been positive for rupee.
  • Brent crude oil contract was last trading 0.6% down at $64.46 per barrel, retreating from a three-week high of $65.79 mark seen yesterday, with the threat of immediate military conflict between the U.S. and Iran easing.

Indian Equities

  • Benchmark indices ended higher but off day's high on June 25 as it gained some momentum in late trading after remained flat for the initial period of the day.At close,
  • The Sensex was up 311.98 points at 39,434.94, while Nifty was up 96.80 points 11,796.50. About 1233 shares have advanced, 1268 shares declined, and 166 shares are unchanged. JSW Steel, BPCL, Reliance Industries, Axis Bank and Tata Steel were among major gainers on the indices, while losers were Yes Bank, Bharti Infratel, Asian Paints, IndusInd Bank and L&T. All the sectoral indices ended in the green led by metal, energy, auto, PSU bank, pharma, infra and FMCG. Midcap and Smallcap indices also ended higher.

Global Markets

  • European markets are mixed to lower. Shares in France are off as the CAC 40 drops 0.10%. The DAX is down 0.06% while the FTSE 100 in London is unchanged.
  • The S&P 500 edged lower on Monday as losses by healthcare companies overshadowed gains in the technology sector, while investors awaited U.S. President Donald Trump's meeting with Chinese President Xi Jinping at the G20 summit this week. The Dow Jones Industrial Average rose 8.41 points, or 0.03%, to 26,727.54, the S&P 500 lost 5.11 points, or 0.17%, to 2,945.35 and the Nasdaq Composite dropped 26.01 points, or 0.32%, to 8,005.70. The Nasdaq slipped but tariff-sensitive industrials, headed up by Boeing Co led the blue-chip Dow Jones Industrial Average to a nominal advance.
  • U.S. companies' borrowing to spend on capital investments rose 18% in May from a year earlier, the Equipment Leasing and Finance Association (ELFA) said. Companies signed up for $9.1 billion in new loans, leases and lines of credit last month, up from $7.7 billion a year earlier. Borrowings rose 3% from the previous month. The continued low interest rate environment, coupled with solid fundamentals in the U.S. economy, provide incentive for U.S. businesses to expand and grow their operations.
  • British retail sales plunged this month at the fastest annual pace in 10 years, according to figures that reflect unusually strong sales a year ago but add to questions about the economy's momentum in the second quarter. The Confederation of British Industry's monthly retail sales balance fell to -42 from -27 in May.


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