Sep 12 2018

Indian Rupee Remained Lower Tracking Overnight Rally in Oil Prices

Financial Market Overview

12th September, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee came off record-lows but remained weaker against the dollar in afternoon trade, as losses tracking an overnight rally in crude oil prices continued to overshadow any respite brought on by banks’ dollar sales, likely for the central bank.
  • The rupee was trading at 72.7750 to a dollar against 72.69 at previous close. It fell to a record low of 72.91 earlier today, but managed to recoup some losses on greenback sales by state-run and private banks, likely on behalf of the Reserve Bank of India.

 

Indian Equities:-

  • Indian shares ticked higher on Wednesday after two consecutive sessions of sharp falls, while the rupee fell to a fresh low, stoking fears of an interest rate hike by the central bank at its next meeting in October.
  • The Sensex is down 46.54 points at 37366.59, while Nifty is down 22.10 points at 11265.40. About 775 shares have advanced, 1569 shares declined, and 117 shares are unchanged.

 

Global Markets:-

  • Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 1.10%, while the Hang Seng and the Shanghai Composite lower. They fell 0.42% and 0.33% respectively.
  • European markets are trading mixed today. The France CAC40 is trading higher by 0.46% followed by the Germany’s DAX at 0.25% and the London’s FTSE100 at 0.14%. The Spian’s IBEX35 is trading lower by 0.02%.
  • Domestic traders await India’s August retail inflation, after market hours. A Reuters poll predicts inflation to ease to 3.86% on year from 4.17% in July and below the policy panel’s 4% target for the first time this year.
  • Sterling fell nearly a quarter of a percent on Wednesday after the BBC reported a group of about 50 lawmakers in British Prime Minister Theresa May’s government had met to discuss how and when they could force her out of her job.
  • The dollar index was last trading off 0.1% as the U.S. holds trade talks with Canada.
  • The benchmark Brent crude climbed more than 2% yesterday to close at its highest level in over two months as the U.S. east coast braced for a major hurricane and on reports that U.S. sanctions against Iran crude exports, due to kick in from November, have already begun to hurt supply. It was last trading 0.2% higher at $79.23 per barrel, inching closer to $80.