Financial Market Overview
28th August, 2018
- The Indian rupee gained in the early trade on Friday. It has opened higher by 10 paise at 72.49 per dollar versus previous close 72.59 yesterday.
- The jump in the dollar index yesterday “has not percolated much” to Asian currencies and the rupee will mostly have a quiet opening, In light of month-end flows and Brent crude trading just shy of $82 a barrel.
- We expect the pair to trade in the range between 72.75 to 72.30.
- It’s a good start to the market on Friday morning as the Nifty surpassed 11,000 in the opening trade. The Sensex is higher by over 150 points. Sectors such as banks, FMCG, and auto are gaining big, while the Nifty IT index is down over a percent. The midcap index is also moving in tandem with the benchmarks, with Nifty Midcap gaining almost half a percent.
- The Sensex is up 163 points or 0.4% at 36487.1, while the Nifty is higher by 49.5 points or 0.4% at 11027. The market breadth is narrow as 506 shares advanced, against a decline of 309 shares, while 46 shares were unchanged.
- Asian markets are higher today as Japanese, Chinese and Hong Kong shares show gains. The Nikkei 225 is up 1.70% while the Hang Seng is up 0.64%. The Shanghai Composite is up 0.69% and the Australian’s ASX200 is higher by 27 points and 0.44% up.
- European markets finished higher today with shares in France leading the region. The CAC 40 is up 0.50% while London’s FTSE 100 is up 0.45% and Germany’s DAX is up 0.40%.
- Wall Street rose on Thursday, helped by gains in Apple Alphabet and Facebook as well as the U.S. Federal Reserve’s confidence in the strength of the economy after it raised rates for the third time this year.
- The Dow Jones Industrial Average rose 55.13 points, or 0.21 percent, to 26,440.41, the S&P 500 gained 8.1 points, or 0.28 percent, to 2,914.07 and the Nasdaq Composite added 51.60 points, or 0.65 percent, to 8,041.97.
- U.S. economic data and buoyant risk appetite on Wall Street makes a December rate hike by the Fed almost a certainty. “One thing that is slightly positive for the rupee and other Asian currencies is that 10-year Treasury yields, for now at least, remain contained around the 3% levels.
- The core capital goods orders rose 1.5 percent in July. Economists polled by Reuters had forecast orders for these goods rising 0.4 percent last month. Core capital goods orders increased 7.4 percent on a year-on-year basis. Shipments of core capital goods edged up 0.1 percent last month after jumping 1.1 percent in July. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.
- Dollar index was last trading up 0.1% at 94.97 at two-week high, extending overnight gains of 0.7%. 10-year U.S. yield was at 3.0555%.