Rupee higher on broad Dollar weakness post Fed policy

Posted Date:-27-Jul-2017

Financial Market Overview

27th July, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • The Indian rise against the dollar in opening trade, in line with Asian peers, as the greenback languished at 13-month lows after the Federal Reserve’s dovish post-policy statement which, among other things, hinted at softness in U.S. inflation; Pair USDINR now at 64.10 against 64.36 previous close.
  • Pair to tip in range between today 64.00-64.30.

Indian Equities:-

  • The market hit fresh record highs in early trade on Thursday, with the Nifty opening above 10,000 level on expiry day after US Federal Reserve meet and ahead of corporate earnings.
  • The 30-share BSE Sensex was up 126.76 points at 32,509.22 and the 50-share NSE Nifty rose 40.55 points to 10,061.20.

Global Markets:-

  • Asian shares gained on Thursday, with support from the U.S. as Facebook  posted solid earnings fter the bell. Japan's benchmark Nikkei 225 index reversed earlier losses and gained 0.22%. In Australia, the S&P/ASX 200 gained 0.27%. Hong Kong's Hang Seng Index was higher, edging up 0.46% and the Shanghai Composite slid 0.33%.
  • U.S. stocks were higher at the close on Wednesday, as gains in the Telecoms, Utilities and Oil & Gas sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average rose 0.45% to hit a new all time high, while the S&P 500 index climbed 0.03%, and the NASDAQ Composite index added 0.16%.
  • European markets finished higher yesterday with shares in France leading the region. The CAC 40 is up 0.56% while Germany's DAX is up 0.33% and London's FTSE 100 is up 0.24%.
  • The dollar index, which measures the greenback against six major currencies, ended 0.4% lower overnight, hitting its lowest since Jun. 23, 2016, and was last trading 0.3% lower after the Fed sounded a note of caution on inflation.
  • “Inflation on a 12-month basis is expected to remain somewhat below 2 percent in the near term but to stabilize around the Committee's 2 percent objective over the medium term,” the statement read. “Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely."
  • The Federal Open Market Committee announced no changes to monetary policy but said it would start selling its bond holdings soon, a slight change from its earlier statement that said it would begin to reduce its $4.5 trillion bond holdings "this year."

Rupee steady amid caution ahead of Fed decision

Posted Date:-26-Jul-2017

Financial Market Overview

26th July, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee was little changed against the dollar, as investors awaited the U.S. Federal Reserve’s monetary policy statement later today for indications about its future rate increases as well as its plans to reduce its bond holdings.
  • The rupee settled at 64.3575 to a dollar, against 64.38 at yesterday’s close. The currency moved in a 10-paisa band today. Most other Asian currencies were flat to slightly lower.

Indian Equities:-

  • The broader NSE index  rose 0.56 percent on Wednesday to end above 10,000 points for the first time ever, extending a recent record-setting rally after positive quarterly results lifted sentiment.
  • The NSE index ended at 10,020.65, while the benchmark BSE index closed 0.48 percent higher at an all-time closing high of 32,382.46.
  • Yes Bank was up 5.8 percent after posting higher-than-expected June-quarter results helped by lower bad loan ratio.

Global Markets:-

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.55% while London's FTSE 100 is up 0.45% and Germany's DAX is up 0.26%.
  • Asian markets finished higher today with shares in Japan leading the region. The Nikkei 225 is up 0.48% while Hong Kong's Hang Seng is up 0.33% and China's Shanghai Composite is up 0.12%.
  • The pound was slightly lower against the U.S. dollar on Wednesday after data showed that UK economic growth picked up slightly in the second quarter of the year, with the service sector driving growth. The Office for National Statistics said gross domestic product rose by 0.3% in the three months to June, from 0.2% growth in the first three months of the year, in line with forecasts. On a year-over-year basis, the economy expanded by 1.7% from 2.0% in the first quarter, also in line with forecasts.
  • The dollar index, which measures the greenback against six major currencies, ended up nearly 0.1% overnight, off its 13-month low of 93.638 hit earlier in the session, as traders awaited comments by the Fed officials after the conclusion of the two-day policy meet later today. The index was last trading up little changed at 94.12.

Rupee little changed amid thin trade ahead of FED outcome

Posted Date:-26-Jul-2017

Financial Market Overview

26th July, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee remained little changed in thin trading, as investors awaited the U.S. Federal Reserve’s monetary policy statement later today for indications about its future rate increases as well as its plans to reduce its bond holdings.
  • The rupee was last seen at 64.3925 to a dollar, against 64.38 at close yesterday. The currency has remained in a narrow six-paisa band. Most other Asian currencies were also flat to slightly lower.

Indian Equities:-

  • Benchmark indices were trading strong in the afternoon session, with the Nifty now hovering around 10,000-mark.
  • The Sensex was up 103.89 points at 32332.16, while the Nifty was up 31.80 points at 9996.35. The market breadth was narrow as 1366 shares advanced against a decline of 1169 shares, while 154 shares were unchanged.
  • Tata Steel, Sun Pharma and Vedanta gained the most on both indices, while Axis Bank and Asian Paints lost the most.

Global Markets:-

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.66% while London's FTSE100 is up 0.49% and Germany's DAX is up 0.37%.
  • Asian markets finished higher today with shares in Japan leading the region. The Nikkei 225 is up 0.48% while Hong Kong's Hang Seng is up 0.33% and China's Shanghai Composite is up 0.12%.

Rupee opened marginally lower; Dollar steadies ahead of FED decision

Posted Date:-26-Jul-2017

Financial Market Overview

26th July, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee open slightly lower against the dollar, in-line with most Asian currencies, as traders await the U.S. Federal Reserve’s monetary policy decision due later today on clues of further tightening plans; Pair USDINR now at 64.43 against 64.38 previous close.
  • Pair to tip in range between today 64.30-64.50.

Indian Equities:-

  • A day after the Nifty hit the historic figure of 10,000, benchmark indices on Wednesday opened marginally in the green.
  • The Sensex was up 28.89 points at 32257.16, while the Nifty was up 18.35 points at 9982.90. The market breadth was positive as 318 shares advanced against a decline of 110 shares, while 32 shares were unchanged.

Global Markets:-

  • Asian stocks steadied on Wednesday and the dollar held firm as investors awaited the Federal Reserve's policy decision later in the day for more clues on its tightening plans. Australian stocks gained 0.97 percent, Japan's Nikkei added 0.47 percent, Shanghai lost 0.37 percent while South Korea's KOSPI slipped 0.3 percent.
  • U.S. stocks were higher at the close on Tuesday, as gains in the Basic Materials, Oil & Gas and Financials sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average added 0.47% to hit a new all time high, while the S&P 500 index added 0.29%, and the NASDAQ Composite index added 0.02%.
  • European markets finished higher yesterday with shares in London leading the region. The FTSE 100 is up 0.77% while France's CAC 40 is up 0.65% and Germany's DAX is up 0.45%.
  • The dollar index, which measures the greenback against six major currencies, ended up nearly 0.1% overnight, off its 13-month low hit earlier in the session, ahead of comments by the Fed officials after the conclusion of two-day policy meet later today. The U.S. central bank is largely expected to maintain status quo on interest rates, but investors will look for hints as to when it will begin selling the $4.5 trillion of bonds on its balance sheets and increase rates.

Rupee ends steady in thin trade ahead of U.S Fed meet

Posted Date:-25-Jul-2017

Financial Market Overview

25th July, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee was little changed against the dollar in thin trading, as investors turned cautious ahead of the U.S. Federal Reserve’s two-day monetary policy review that concludes tomorrow.
  • The rupee settled at 64.38 to a dollar, against 64.34 at close yesterday. It had opened at an intraday low of 64.42, but recovered on dollar sales by foreign banks, likely for their custodian clients.  The rupee moved in a seven-paisa range today.

Indian Equities:-

  • India's broader NSE index inched down on Tuesday, after earlier breaching 10,000 points for the first time as hopes of better corporate results, accelerating economic growth and government reforms feed a strong markets rally this year.
  • The NSE index closed 0.02 percent lower at 9,964.55, after earlier gaining as much as 0.45 percent to a record high of 10,011.30.
  • The benchmark BSE index closed down 0.05 percent at 32,228.27, after earlier rising as much as 0.40 percent to an all-time high of 32,374.30.

Global Markets:-

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 1.26% while London's FTSE 100 is up 0.83% and Germany's DAX is up 0.73%.
  • Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.02%, while the Shanghai Composite led the Nikkei 225 lower. They fell 0.21% and 0.10% respectively.
  • The IFO economic institute Tuesday reported that German business morale unexpectedly rose in July to a new record high. The business climate index rose to 116.0 in July from 115.2 in June when it was expected to fall to 114.9.
  • Traders will next focus on the Fed’s policy meeting that starts today for further cues. The central bank is largely expected to maintain status quo on interest rates, but investors will look for hints as to when it will begin selling the $4.5 trillion of bonds on its balance sheets and increase rates.

Rupee steady as Dollar sales offset losses

Posted Date:-25-Jul-2017

Financial Market Overview

25th July, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee was little changed in afternoon trading, as foreign banks sold dollars, offsetting an overnight recovery in the greenback fuelled by strong U.S. economic data.
  • The rupee was last seen  at 64.38 to a dollar, against 64.34 at close yesterday. It had opened at 64.42, an intraday low so far, but recovered on dollar sales by foreign banks as well as a large state-run bank and a private lender. The rupee has moved in an 7-paisa range so far today.

Indian Equities:-

  • Equity benchmarks continued to trade lower amid consolidation in afternoon, dragged by FMCG, healthcare and select auto stocks.
  • The 30-share BSE Sensex was down 24.77 points at 32,221.10 and the 50-share NSE Nifty fell 13.45 points to 9,952.95. About 1,411 shares declined against 1,117 advancing shares on the BSE.

Global Markets:-

  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.74% while Germany's DAX is up 0.48% and France's CAC 40 is up 0.55%.
  • Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.02%, while the Shanghai Composite led the Nikkei 225 lower. They fell 0.21% and 0.10% respectively.

Rupee opened lower as upbeat U.S data lifts Dollar

Posted Date:-25-Jul-2017

Financial Market Overview

25th July, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens lower as upbeat US data overnight boosts dollar; pair USDINR now at 64.39 against 64.42 at open and 64.34 previous close.
  • Pair to tip in range between today 64.30-64.50.

Indian Equities:-

  • Equity benchmarks started off Tuesday at fresh record high, with the Nifty hitting historic high of 10,000-mark.
  • The 30-share BSE Sensex was up 101.98 points at 32,347.85 and the 50-share NSE Nifty rose 31.80 points to 9,998.20.

Global Markets:-

  • Asian markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.16% while the Hang Seng is down 0.06%. The Nikkei 225 is down 0.13%.
  • U.S. stocks were mixed at the close on Monday, as gains in the Technology, Financials and Healthcare sectors led shares higher while losses in the Telecoms, Utilities and Consumer Goods sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average fell 0.31%, while the S&P 500 index declined 0.11%, and the NASDAQ Composite index added 0.36%.
  • European markets finished mixed as of the most recent closing prices. The CAC 40 gained 0.20%, while the FTSE 100 led the DAX lower. They fell 1.01% and 0.25% respectively.
  • The dollar index, which measures the greenback against six major currencies, rose 0.13% overnight and was last trading up 0.05%, after U.S. July Markit Manufacturing Flash PMI climbed to a reading of 53.2, a four-month high, against 52 last month while the flash services PMI stayed at 54.2. Both readings were higher than market expectations. In other data, June Existing Home Sales declined 1.8%.
  • Traders will next focus on the Fed’s policy meeting that starts today for further cues. The central bank is largely expected to maintain status quo on interest rates but investors will look out for indicators as to when it will begin selling the $4.5 trillion of bonds on its balance sheets and increase rates.  Data on U.S. consumer confidence, the housing industry, jobless claims and second-quarter gross domestic product growth are also scheduled for this week.
  • The International Monetary Fund yesterday lowered its U.S. economic growth forecasts for 2017 and 2018 - citing less-expansionary-than-expected fiscal policy.

Rupee little changed as likely RBI bids offset inflows

Posted Date:-24-Jul-2017

Financial Market Overview

24th July, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee was little changed, as state-run lenders stepped up dollar purchases, likely for the central bank, offsetting foreign banks’ greenback sales.
  • The rupee settled at 64.34 to a dollar, against 64.32 at close on Friday. It had fallen to a day’s low of 64.4625 on importers’ dollar demand, before recouping losses on greenback sales by a UK-based bank and a few others, likely for a large corporate. However, state-run banks were suspected to have bought dollars, likely on the instructions of the Reserve Bank of India, at multiple levels. Most other Asian currencies were flat to higher against the dollar.

Indian Equities:-

  • India's NSE index ended at a record closing high on Monday, coming within striking distance of breaching the 10,000 mark for the first time ever, as Reliance Industries Ltd and HDFC Bank gained after their recent earnings.
  • The broader NSE index ended up 0.52 percent at 9,966.40, its highest close ever, while the benchmark BSE index ended 0.68 percent up at an all-time closing high of 32,245.87.
  • Reliance Industries was up 1.91 percent while HDFC Bank gained 1.88 percent.

Global Markets:-

  • European markets are mixed today with shares in London off the most. The FTSE 100 is down 0.95% while Germany's DAX is off 0.38% and France's CAC 40 is higher by 0.05%.
  • Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.53% and the Shanghai Composite rose 0.39%. The Nikkei 225 lost 0.62%.
  • The dollar index, which measures the greenback against six major currencies, was trading 0.1% higher. It fell almost half a percent overnight to its lowest in more than a year following the European Central Bank policy meet, where President Mario Draghi refrained from talking down the euro that markets took as an indication that tapering of ECB’s bond-buying stimulus was on for later this year.
  • Traders will next focus on the Federal Reserve’s two-day policy meeting that starts tomorrow for further cues. The U.S. July Markit Manufacturing Flash PMI and June Existing Home Sales are due later today.

Rupee stays lower on importers Dollar bids

Posted Date:-24-Jul-2017

Financial Market Overview

24th July, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee stayed lower against the dollar, as banks stepped up greenback purchases for their importer clients ahead of the U.S. Federal Reserve’s two-day policy meeting that begins tomorrow.
  • The rupee was last seen at 64.41 to a dollar, against 64.32 at close on Friday. The currency has traded in a narrow 64.4075-64.4550 per dollar band so far. Most other Asian currencies were flat to slightly higher.

Indian Equities:-

  • Reliance Industries, ITC, technology and banks stocks lifted the Nifty near 10,000 level in noon despite mixed trade in Asia.
  • The 30-share BSE Sensex was up 191.60 points at 32,220.49 and the 50-share NSE Nifty gained 49.85 points at 9,965.10 but the market breadth does not look strong.
  • About 1,393 shares advanced against 1,030 declining shares on the BSE. All sectoral indices barring Pharma and Metal traded in green.

Global Markets:-

  • European markets are lower today with shares in London off the most. The FTSE 100 is down 0.41% while Germany's DAX is off 0.32% and France's CAC 40 is lower by 0.10%.
  • Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.51% and the Shanghai Composite rose 0.39%. The Nikkei 225 lost 0.62%.

Rupee lower on weak Asian cues

Posted Date:-24-Jul-2017

Financial Market Overview

24th July, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens lower at 64.41 tracking dollar's gain against most Asian currencies. Pair USDINR now at 64.42 against 64.32 previous close.
  • Pair to tip in range between today 64.30-64.50.

Indian Equities:-

  • Equity benchmarks started off the week on a positive note, with the Nifty and Bank indices opening at record highs.
  • The 30-share BSE Sensex was up 51.05 points at 32,079.94 and the 50-share NSE Nifty gained 9.05 points at 9,924.30. About two shares advanced for every share falling on the BSE.
  • Lupin gained 2 percent followed by Wipro, Reliance Industries, Coal India and Adani Ports.
  • Nifty Midcap gained 0.2 percent in early trade. Divis Labs, SREI Infrastructure, MRPL and Persistent Systems lost up to 5 percent.
  • Tata Sponge, IIFL Holdings, Quess Corp, J&K Bank, GVK Power, Avenue Supermarts, Amtek Auto, Fortis Healthcare, HPCL and Vijaya Bank gained up to 8 percent.

Global Markets:-

  • Asian markets are mixed today as Japanese shares are down 0.83%, Hong Kong shares show gains of 0.45% and Australian ASX200 is trading lower by 0.73%. The Shanghai Composite is up 0.18%.
  • U.S. stocks were lower at the close on Friday, as losses in the Oil & Gas, Technology and Industrials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average fell 0.15%, while the S&P 500 index declined 0.04%, and the NASDAQ Composite index fell 0.04%.
  • European markets finished broadly lower on Friday with shares in Germany leading the region. The DAX is down 1.66% while France's CAC 40 is off 1.57% and London's FTSE 100 is lower by 0.47%.
  • Dollar index little changed at 93.880, after touching 93.823, lowest since June 2016, as resignation of White House spokesman Sean Spicer further adds to political woes for US President Donald Trump. Euro +0.1% at $1.1671 after advancing to near 2-year high of $1.1683 on Friday.
  • Traders will next focus on the Federal Reserve’s two-day policy meeting that starts tomorrow for further cues. The U.S. July Markit Manufacturing Flash PMI and June Existing Home Sales are due later today.

Rupee posts 2nd weekly gain on weak Dollar

Posted Date:-22-Jul-2017

 Weekly Synopsis

 

Date:- 22nd July 2017

 

Markets from 17th July 2017 to 21st July 2017:-

 

Indian Rupee:-

 

  • The Indian rupee rose for a second straight week. On a weekly basis, the rupee rose 0.2% against the dollar. The rupee closes on Friday at 64.3150 against the previous weekly close of 64.4450 on July 14th, 2017 to a greenback. It trades in a narrow weekly range between 64.4650 to 64.27 against the greenback.

 

  • India's foreign exchange reserves rose to record high of $389.06 billion as of Jul. 14 from $386.38 billion in the previous week, the central bank said on Friday.  The increase was driven by a rise in foreign currency assets to $364.91 billion from $362.23 billion in the previous week, according to data from the Reserve Bank of India.  The country's reserves had earlier hit a record high of $386.54 billion for week-ended Jun. 30.

 

Global Market:-

 

  • The weakening U.S. dollar fell to its lowest in more than a year against key world currencies on Friday as investors assessed comments from the European Central Bank and obstacles to U.S. President Donald Trump's domestic agenda, while a global gauge of stocks snapped a 10-session streak of gains. Gains in the yen, gold and U.S. Treasuries pointed to moves into safe-haven assets rather than stocks, which are considered riskier. Oil prices slid more than 2 percent.

 

  • The dollar dipped to a more than thirteenth-month low against a basket of global currencies on Friday, amid renewed political uncertainty in Washington after reports surfaced that special counsel Robert Mueller is looking into the business dealing of President Trump, Jared Kushner and other associates. The dollar index  fell 0.38 percent, falling to its lowest point since June 2016. The dollar index is now down 8.1 percent this year. The Japanese yen strengthened 0.68 percent versus the greenback at 111.14 per dollar.

 

  • The European Central Bank left its ultra easy monetary policy unchanged on Thursday and did not even discuss clawing back stimulus, suggesting it may delay an inevitable decision on tapering bond buys until the latest possible moment.  Maintaining a pledge to extend or even increase debt purchases if needed, ECB President Mario Draghi said the bank did not even go so far as to ask staff committees to prepare options for tweaking stimulus. Policymakers would revisit the topic only in the autumn, he said. The euro was up 0.3 percent to $1.1664.

 

  • U.S. stock indexes ended marginally lower, pulling back from record high levels reached earlier in the week. The Dow Jones Industrial Average fell 31.71 points, or 0.15 percent, to 21,580.07, the S&P 500 lost 0.91 point, or 0.04 percent, to 2,472.54 and the Nasdaq Composite dropped 2.25 points, or 0.04 percent, to 6,387.75.

 

  • European shares sank on Friday as the euro strengthened company earnings disappointed at the end of a turbulent week. The euro climbed to a two-year high on Friday, sending the exporter-heavy STOXX 600 down 1 percent to a weekly decline of 1.7 percent. Euro zone stocks fell 1.3 percent while blue chips sank 1.4 percent. Shares in Germany fell as the DAX dropped 1.66%. The FTSE 100 lost 0.47% while the CAC 40 in France closed unchanged.

 

Local Market:-

 

  • Indian shares rose on Friday to post a third consecutive weekly gain, with Reliance Industries Ltd hitting it highest in over 9-1/2 years after posting strong quarterly results and announcing the launch of a low-cost, 4G-enabled phone.

 

  • The broader NSE index closed up 0.42 percent at 9,915.25, while the benchmark BSE index finished 0.39 percent higher at 32,028.89.  The NSE index gained 0.29 percent this week, while the BSE index inched up 0.03 percent.

 

  • Reliance gained 3.7 percent, but its telecom rivals slumped, with Bharti Airtel Ltd ending down 2 percent and Idea Cellular Ltd falling 3.3 percent.

 

Rupee settled higher; Indian equities regained momentum in last hour of trade

Posted Date:-21-Jul-2017

Financial Market Overview

21st July, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The rupee settled higher at 64.3150 to a dollar in Mumbai, against 64.43 at yesterday’s close. It remained in a narrow 64.3025-64.39 band.
  • Greenback purchases near the day’s low by at least two state-run banks, likely on behalf of the Reserve Bank of India, limited the rupee’s gains.

Indian Equities:-

  • The market regained momentum in last hour of trade Friday, with the Nifty closing above 9,900-mark despite weakness in global peers. The recovery was driven by Reliance Industries, technology and select banks stocks while telecom, infra and healthcare stocks capped the upside.
  • The 30-share BSE Sensex was up 124.49 points at 32,028.89 and the 50-share NSE Nifty gained 41.95 points at 9,915.25 while the broader markets underperformed, with the BSE Midcap and Smallcap indices closing flat.

Global Markets:-

  • European markets are lower today with shares in Germany off the most. The DAX is down 0.80% while France's CAC 40 is off 0.61% and London's FTSE 100 is lower by 0.06%.
  • Asian markets finished lower today with shares in Japan leading the region. The Nikkei 225 is down 0.22% while China's Shanghai Composite is off 0.21% and Hong Kong's Hang Seng is lower by 0.13%.
  • The euro Friday held at two-year highs of above $1.16 against the dollar after comments by ECB chief Mario Draghi that were deemed hawkish. The euro was up 0.10% at $1.1641 after hitting a high for the session of $1.1677.
  • That depressed the dollar index, which at one point fell below the 94 mark at levels last seen over a year ago. The index was down 0.15% at 94.15 after a low of 93.84.

Rupee on track for 2nd weekly rise despite RBI intervention

Posted Date:-21-Jul-2017

Financial Market Overview

21st July, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The rupee was last seen at 64.34 to a dollar, against 64.43 at close yesterday. The currency had touched a day’s low of 64.3850 in early trade, before rising to 64.31 to a dollar.
  • However, greenback purchases by at least two state-run banks, likely on behalf of the Reserve Bank of India, limited the rupee’s gains. Most other Asian currencies also rose.

Indian Equities:-

  • Equity benchmarks erased morning gains, with the Sensex down 0.11% at 31,870.50 and the Nifty down 0.17% at 9,856.70. Even the Nifty Midcap index declined 0.8 percent.
  • All sectoral indices barring IT were in red. Nifty Bank lost 0.4 percent.

Global Markets:-

  • Asian markets finished lower today with shares in Japan leading the region. The Nikkei 225 is down 0.22% while China's Shanghai Composite is off 0.21% and Hong Kong's Hang Seng is lower by 0.04%.
  • European markets are mixed today. The FTSE 100 is up 0.12% while the DAX gains 0.03%. The CAC 40 is off 0.11%.
  • The dollar index, which measures the greenback against six major currencies, dropped to over one-year low at 93.99 today and was last trading down 0.3%, amid politics in Washington and hawkish comments from European Central Bank chief.

Rupee higher as Draghi comments weigh on Dollar

Posted Date:-21-Jul-2017

Financial Market Overview

21st July, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee edge higher against the dollar in opening trade, underpinned by the euro’s multi-month rally against the greenback after European Central Bank Chief Mario Draghi said it will start discussing changes to its bond-buying programme later this year. Pair USDINR now at 64.34 against 64.43 previous close.
  • Pair to tip in range between today 64.20-64.45.

Indian Equities:-

  • Equity benchmarks rebounded with moderate gains in opening on Friday, backed by Reliance Industries (up 1.8 percent) and Wipro (up 5 percent) after solid earnings performance.
  • The 30-share BSE Sensex was up 51.64 points at 31,956.04 and the 50-share NSE Nifty gained 11.80 points at 9,885.10.

Global Markets:-

  • Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.25% while the Hang Seng is down 0.15%. The Shanghai Composite is down 0.26%.
  • U.S. stocks were mixed at the close on Thursday, as gains in the Telecoms, Utilities and Healthcare sectors led shares higher while losses in the Basic Materials, Oil & Gas and Industrials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average lost 0.13%, while the S&P 500 index fell 0.02%, and the NASDAQ Composite index added 0.08%.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.77%, while the CAC 40 led the DAX lower. They fell 0.32% and 0.04% respectively.
  • The dollar index, which measures the greenback against six major currencies, dropped almost half a percent overnight to a near 11-month low on Jul. 18. Continuing to weigh on sentiment were week-long development that document Republicans’ struggle to overhaul the healthcare bill, raising doubts over President Donald Trump’s ability to deliver on promised tax reforms and infrastructure spending plans.
  • The euro rose close to a two-year high against the greenback yesterday after ECB left interest rates unchanged, while Draghi said discussions on balance sheet normalization would begin in the autumn even as no timeline for the tapering was provided.
  • The only support for the greenback was latest data by the Labour Department, which showed initial claims for state jobless benefits fell 15,000 to seasonally adjusted 233,000 in week ended Jul. 15, lowest level since February.

Rupee stays lower on banks Dollar bids; ECB awaited

Posted Date:-20-Jul-2017

Financial Market Overview

20th July, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee remained lower against the dollar, as foreign banks and a large private lender stepped up greenback purchases amid caution ahead of the European Central Bank’s monetary policy decision later today.
  • The rupee was  last seen at 64.43 to a dollar, against 64.28 at yesterday’s close. The currency had opened at 64.35 per dollar and slipped further to 64.4550, on dollar purchases by foreign banks, including two large U.K-based banks and a large European lender, on behalf of a corporate client.

Indian Equities:-

  • Benchmark indices continued to consolidate in afternoon session as investors look for more corporate earnings.
  • The 30-share BSE Sensex was down 0.10 pct at 31,923.28 and the 50-share NSE Nifty fell 0.17% to 9,882.60.
  • ABB India shares gained more than 3 percent after its profit grew by nearly 35 percent year-on-year to Rs 75 crore in April-June quarter, backed by strong operational growth. The stock already rallied 48 percent so far in the year 2017.
  • Axis Bank retained its top position in the buying list among Sensex stocks, up over 3 percent followed by ONGC, Cipla and BHEL whereas Tata Steel was top losers, down over 2 percent.

Global Markets:-

  • Asian markets finished higher today with shares in Japan leading the region. The Nikkei 225 is up 0.62% while China's Shanghai Composite is up 0.43% and Hong Kong's Hang Seng is up 0.26%.
  • European markets are higher today with shares in Germany leading the region. The DAX is up 0.75% while France's CAC 40 is up 0.58% and London's FTSE 100 is up 0.42%.
  • Japanese yen was last trading off 0.2% against the greenback. Earlier today, the Bank of Japan maintained status quo, as was widely expected, while delaying yet again the timing for achieving the 2% inflation aim to sometime during FY2019, against FY2018 as projected in April. The policy signaled that the Japanese central bank will trail behind major central banks in scaling back monetary stimulus.

Rupee steady as BOJ, ECB Policy outcomes eyed

Posted Date:-20-Jul-2017

Financial Market Overview

20th July, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee open steady at 64.35 against the dollar, as traders await outcome to monetary policies from the Bank of Japan and European Central Bank, due to conclude today, for further cues. Pair USDINR now at 64.3925 against 64.2825 previous close.
  • Pair to tip in range between today 64.25-64.50.

Indian Equities:-

  • Equity benchmarks erased early gains, with the Sensex falling below 32,000 level and the Nifty hovering around 9900.
  • Ahead of June quarter earnings, Kotak Mahindra Bank, Reliance Industries and Wipro gained up to 1.7 percent while Bajaj Auto fell 0.4 percent.
  • The 30-share BSE Sensex was down 1.26 points at 31,954.09 and the 50-share NSE Nifty fell 3.45 points to 9,896.15 whlie the broader markets were flat with a positive bias.
  • About 1,155 shares advanced against 897 declining shares on the BSE.

Global Markets:-

  • Asian shares scaled a near-decade peak on Thursday, bolstered by a surge in global stocks to new records on strong U.S. corporate earnings, while the yen eased slightly after the Bank of Japan reinforced expectations it will lag other central banks in dialing back stimulus. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.15 percent, hovering near its highest level since December 2007. Australian stocks rose 0.55 percent and South Korea's KOSPI was up 0.1 percent. Chinese blue chips advanced 0.15 percent, while the Shanghai Composite edged up 0.17 percent. Hong Kong's Hang Seng crept up 0.3 percent.
  • U.S. stocks were higher after the close on Wednesday, as gains in the Oil & Gas, Basic Materials and Healthcare sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average rose 0.31%, while the S&P 500 index gained 0.54%, and the NASDAQ Composite index gained 0.64%.
  • European markets finished higher on Wednesday with shares in France leading the region. The CAC 40 is up 0.83% while London's FTSE 100 is up 0.55% and Germany's DAX is up 0.17%.
  • The euro was last trading close to its earlier 14-month high against the greenback amid expectations the ECB may lay down its plans for a policy shift at the outcome of a two-day monetary policy review due today, after policymakers indicated scaling back the stimulus last month.

Rupee at near 6-week high on Dollar sales

Posted Date:-19-Jul-2017

Financial Market Overview

19th July, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee rose to a near six-week high against the dollar, as a large private bank stepped up greenback sales toward the session-end, and local shares strengthened.  However, persistent dollar purchases by state-run banks kept the rupee’s gains limited.
  • The rupee settled at 64.2825 to a dollar, its highest since Jun. 9, against 64.32 at yesterday’s close. It had opened at 64.35 and traded in a thin range for most part of the session. It rose to a day’s high of 64.28 in late trading on dollar sales by a large private bank. Most other Asian currencies were flat to lower against the greenback.

Indian Equities:-

  • Indian shares recovered on Wednesday as cigarette maker ITC rebounded and drugmakers gained on hopes of U.S. regulatory approvals and the launches of new drugs.
  • The broader NSE index closed 0.74 percent higher at 9,899.60, while the benchmark BSE index rose 0.77 percent to 31,955.35.
  • Shares in ITC rose 2.4 percent, while Aurobindo Pharma Ltd closed 4.3 percent higher.

Global Markets:-

  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.22% while France's CAC 40 is up 0.21% and Germany's DAX is up 0.13%.
  • Asian markets finished broadly higher today with shares in China leading the region. The Shanghai Composite is up 1.36% while Hong Kong's Hang Seng is up 0.56% and Japan's Nikkei 225 is up 0.10%.
  • Investors will track the outcome of a two-day monetary policy review of the European Central Bank tomorrow, after policymakers indicated scaling back the stimulus last month. Bank of Japan’s two-day policy meet also begins today. The euro was last trading down 0.27% against the dollar, while the Japanese yen was flat.

Rupee steady in thin trades ahead of BoJ, ECB policy meets

Posted Date:-19-Jul-2017

Financial Market Overview

19th July, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee was little changed against the dollar in thin afternoon trading, as investors remained on the sidelines ahead of the conclusion of monetary policy reviews of Bank of Japan and European Central Bank, due tomorrow.
  • The rupee was last seen at 64.33 to a dollar, against 64.3225 at close yesterday. It had opened at 64.35, but rose to a day’s high of 64.32 tracking gains in local shares and has moved in a narrow three-paisa band. Most other Asian currencies were trading flat to lower against the greenback.

Indian Equities:-

  • Equity benchmarks remained strong in afternoon due to stable June quarter earnings season so far and also backed by positive global cues.
  • The 30-share BSE Sensex was up 162.21 points at 31,873.20 and the 50-share NSE Nifty gained 46.40 points at 9,873.55 on strong breadth.

Global Markets:-

  • Asian markets finished broadly higher today with shares in China leading the region. The Shanghai Composite is up 1.36% while Hong Kong's Hang Seng is up 0.53% and Japan's Nikkei 225 is up 0.10%.
  • European markets are higher today with shares in Germany leading the region. The DAX is up 0.23% while London's FTSE 100 is up 0.17% and France's CAC 40 is up 0.16%.

Rupee steady amid overnight Dollar slide

Posted Date:-19-Jul-2017

Financial Market Overview

19th July, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee has opened at 64.35 - little changed from yesterday’s close of 64.3225. It is expected to be steady to stronger in the early trades, supported by continued dollar weakness after unsuccessful attempts to pass the U.S. healthcare bill raised concerns over President Donald Trump’s ability to push through other promised economic reforms. Pair USDINR now at 64.34 against previous close 64.3225.
  • Pair to tip in range between today 64.20-64.50.

Indian Equities:-

  • Equity benchmarks rebounded on Wednesday after yesterday's steep fall, backed by short covering in beaten down stocks.
  • The 30-share BSE Sensex was up 104.05 points at 31,815.04 and the 50-share NSE Nifty rose 33.90 points to 9,861.05.

Global Markets:-

  • Asian equities are trading mildly positive today with Chinese stocks up by 0.80% while Hong Kong stocks show 0.43% gains and Nikkei 225 gaining 0.09%.
  • Stocks in US closed mixed yesterday with technology stocks posting gains. The benchmark Dow Jones Industrials closed lower by 55 points or 0.25% while NASDAQ posted gains of 0.47% and S &P 500 closed higher by 0.06%.
  • European markets finished broadly lower on Tuesday with shares in Germany leading the region. The DAX is down 1.25% while France's CAC 40 is off 1.09% and London's FTSE 100 is lower by 0.19%.
  • The dollar index, which measures the greenback against six major currencies, fell over half a percent overnight, dragged down by concerns over the U.S. economy amid a collapse in Trump’s plan to overhaul or repeal Obamacare after at least three Republican senators -- Shelley Moore Capito of West Virginia, Susan Collins of Maine and Lisa Murkowski of Alaska, said they would not support repeal.  Given the lack of support to overhaul existing healthcare law, U.S. Senate Republican leader Mitch McConnell announced Tuesday that a vote on direct repeal of Obamacare would take place “early next week”. Trump’s latest struggle with the healthcare bill has raised fresh doubts over his ability to push through other domestic policies, including proposed tax reforms.  The index was last up 0.15%.