Oct 08 2018

Indian rupee opened lower as gains in U.S. Yields

Financial Market Overview

08Th October, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened lower by 18 paise at 73.95 per dollar versus Friday’s close 73.77. Rupee is expected to remain under pressure weighed by a further rise in long-term US Treasuries following non-farm payroll data. RBI held interest rates unchanged on Friday, condemning the rupee to a record low and surprising the street which had expected a rate rise to counter inflationary pressures arising from the weak currency and high oil prices. .
  • The Reserve Bank of India’s proposals to attract long-term foreign portfolio investors will not ease the pressure on the rupee, and the currency is likely headed to 75.
  • We Expect Pair to trade in the range between 73.55 to 74.10

Indian Equities:-

  • It’s a negative start for equity benchmarks on Monday, with the Sensex falling over 100 points. The Nifty is down around 40 points and is trading below 10,300-mark.
  • The Bank Nifty is down around quarter of a percent, while FMCG, metals and pharmaceutical sectors are trading lower. Midcaps, too, are in the red; the Nifty Midcap is down around 0.50 percent.
  • The Sensex is down 104 points or 0.3% at 34272.9, while the Nifty is lower 39.5 points or 0.3% at 10277. The market breadth is narrow as 283 shares advanced, against a decline of 296 shares, while 2,691 shares are unchanged.

Global Markets:-

  • Shares in Asia stumbled in early trade on Monday as investors waited with bated breath as China’s markets prepare to reopen following a week-long holiday and after its central bank cut banks’ reserve requirements in a bid to support growth. Today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 2.92% while The Hang Seng is down 0.77%. Australian’s ASX200 is down by 75 points and -1.21%. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3 percent, after major stock markets around the world fell for a second straight day on Friday. Markets in Japan are closed for a holiday.
  • European markets finished broadly lower on Friday with shares in London leading the region. The FTSE 100 is down 1.35% while Germany’s DAX is off 1.08% and France’s CAC 40 is lower by 0.95%
  • U.S. stocks dropped for a second straight day on Friday, weighed down by another rise in Treasury yields in the wake of a solid jobs report that capped off a week of robust data.
  • The Dow Jones Industrial Average fell 178.8 points, or 0.67 percent, to 26,448.68, the S&P 500 lost 16.04 points, or 0.55 percent, to 2,885.57 and the Nasdaq Composite dropped 91.06 points, or 1.16 percent, to 7,788.45.
  • Britain’s businesses are suffering from Brexit-related uncertainty as exports slow, recruitment difficulties mount and investment plans are scaled back, two surveys showed on Monday.
  • The British Chambers of Commerce said its survey of 5,600 companies, the largest of its kind in Britain, showed services firms were having the most trouble finding staff since the survey began in 1989, and growth in factory exports was the slowest since late 2016.
  • Dollar index almost flat at 95.68.
  • Brent crude oil contract down 1% at $83.30 per barrel, adding to Friday’s 0.5% decline.