Sep 28 2018

Indian rupee posted its biggest quarterly fall

Financial Market Overview

28th September, 2018

Evening Coffee

Rupee:-

  • Indian rupee posted its biggest quarterly fall since quarter ended June 2013, hurt by foreign fund outflows and a rout in emerging market currencies amid escalating global trade war and surging crude oil prices.

    The rupee ended higher at 72.48 a dollar against 72.59 at previous close. It swung between gains and losses intraday, as brief recovery in local shares and dollar sales by foreign banks helped offset losses tracking an overnight gain in the dollar index after upbeat U.S. data.

Indian Equities:-

  • Indian shares erased early gains and ended lower on Friday, wrapping up their worst month since February 2016, with auto stocks such as Maruti Suzuki (India) Ltd and Hero MotoCorp Ltd dragging the benchmark indexes lower. Meanwhile, investors adopted a cautious stance ahead of the Reserve Bank of India’s policy meeting next week.
  • The benchmark BSE index closed 0.27 percent lower at 36,227.14 and was down 1.67 percent on week while the broader NSE index ended 0.43 percent lower at 10,930.45.

Global Markets:-

  • European markets are mixed today. The Spain’s IBEX35 is down 1.96%, the Eurozone’s STOXX50 lost 1.70%, the Germany’s DAX is down 1.69%, the France’s CAC40 is off 1.22%, and the SMI Fell by 0.82% and the London’s FTSE is trading lower by 0.79%.
  • The benchmark Brent crude oil contract was last trading at $82.25 a barrel after rising to as much as $82.55 earlier this week, close to its highest levels since November 2014. For the quarter, the contract has posted a 3.5% gain.
  • The dollar index rallied to its largest single-session gain in seven weeks against a basket of six major currencies yesterday, on strong economic data. For the quarter, the index has posted a 0.7% gain so far, aided thus far by hopes that the Federal Reserve will continue to tighten monetary policy in spite of criticism for the same from U.S. President Donald Trump.
  • Euro zone consumer prices rose in September, according to a flash estimate released on Friday. The bloc’s statistics agency Eurostat said its consumer price index rose 2.1% in September from the same month a year earlier.