Sep 03 2018

Indian rupee opened higher due to positive domestic product growth

Financial Market Overview

3rd September, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee gained in the early trade on Monday. It has opened higher by 19 paise at 70.80 per dollar versus previous close 70.99. While India’s June quarter gross domestic product growth is a positive, the higher opening for the rupee is more a function of the pullback in NDF and “extreme overbought conditions” on the pair after last week’s jump, One-month NDF fell to near 71 in U.S. trading hours on Friday. Late Friday, data released showed that India’s GDP grew 8.2% in the April to June period, higher than the 7.7% recorded in the previous quarter and better than the 7.6%.
  • We expect the pair to trade in the range between 70.60 to 70.95

Indian Equities:-

  • It’s a good start on this Monday morning on D-Street as investors are betting on positive GDP data for the June quarter of this fiscal. The figure rose to 8.2 percent in Q1 of FY19.
  • The Sensex is up 149.60 points or 0.39% at 38794.67, while the Nifty is up 36.50 points or 0.31% at 11717.00. The market breadth is positive as 398 shares advanced, against a decline of 112 shares, while 36 shares were unchanged.
  • Banks are trading flat, while pharmaceuticals and IT are the lead gainers among other indices. Metals and infrastructure are also in the green.

Global Markets:-

  • Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.50% while the Hang Seng is down 1.08%.The Shanghai Composite is off 0.83%
  • The Australian’s ASX200 is little positive today by 3 points and 0.06%.
  • European markets finished sharply lower on Friday with shares in France leading the region. The CAC 40 is down 1.30% while London’s FTSE 100 is off 1.11% and Germany’s DAX is lower by 1.04%.
  • The S&P 500 ended flat while the Dow edged down and the Nasdaq closed higher in light trading on Friday as trade talks between Canada and the United States concluded without resolution ahead of the Labor Day weekend.
  • The Dow Jones Industrial Average fell 22.1 points, or 0.09 percent, to 25,964.82, the S&P 500 gained 0.39 points, or 0.01 percent, to 2,901.52 and the Nasdaq Composite added 21.17 points, or 0.26 percent, to 8,109.54.
  • U.S. consumer spending increased solidly in July, suggesting strong economic growth early in the third quarter, while a measure of underlying inflation hit the Federal Reserve’s 2 percent target for the third time this year. Concerns the Trump administration’s protectionist trade policy, which has led to an escalating trade war with China and tit-for-tat import tariffs with other trading partners, including the European Union, Canada and Mexico, could hurt the economy.
  • Japanese manufacturing activity expanded in August at a slightly faster pace than the previous month as new orders accelerated, but a decline in export orders may raise concerns about the impact of trade protectionism.
  • The Nikkei Japan Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 52.5 in August from a final 52.3 in July.