daily report
Apr 21 2018

On a weekly basis, the rupee fell 1.41%, its biggest weekly decline since week ended Jan. 15, 2016.

Indian Rupee:-

  • The Indian rupee recorded its biggest weekly fall against the dollar in 27 months, after the nation’s trade gap widened to a five-year high, while global crude oil prices surged to a more-than-three-year high. Geo-political tensions earlier this week and rise in U.S. Treasury yields also boosted the demand for the greenback, hurting the local currency. The rupee settled near the day’s low at 66.12 to a dollar, its lowest close since Mar. 10, 2017, and against 65.79 at previous close. It fell to 66.13 earlier, even as at least two state-run lenders sold the greenback, likely on instruction of the Reserve Bank of India in the spot as well in the futures. On a weekly basis, the rupee fell 1.41%, its biggest weekly decline since week ended Jan. 15, 2016.
  • India’s foreign exchange reserves rose to a record high for fourth consecutive week to $426.08 billion as of the week ended Apr. 13, beating the previous high of $424.86 billion touched last week,. India’s trade deficit in the fiscal year that ended Mar. 31 widened to $156.83 billion, as imports accelerated faster than exports. India’s annual wholesale price inflation slightly eased in March, helped by a fall in food prices, government data showed on Monday.
  • Annual wholesale price inflation last month eased to 2.47 percent from a year earlier, a shade lower than a provisional 2.48 percent rise in February, and below a 2.58 percent increase forecast by economists in a Reuters poll. Wholesale food prices in March fell 0.07 percent year-on-year, compared with a 0.07 percent rise a month earlier, data showed.
  • Indian indexes ended slightly higher on Friday, led by gains in stocks such exporter Tata Consultancy Services Ltd following U.S. china trade war is making financial market little nervous.
  • Indian shares ended flat on Friday, as gains in technology stocks offset losses in other sectors, while minutes of the central bank’s policy panel meeting stoked expectations of an interest rate hike. The broader NSE index ended little changed at 10,564.05, gaining 0.8 percent for the week.
  • The NSE IT index gained about 5 percent, with the country’s top software services exporter Tata Consultancy Services Ltd marking its record closing high.

 

Global Market:- 

  • The U.S. dollar rose to a two-week high against a basket of currencies on Friday on rising U.S. yields, while sterling extended a decline in the wake of dovish comments from the head of the Bank of England. The euro fell to a two-week low versus the dollar, for its biggest weekly drop in two months, as investors trimmed record high bets before a European Central Bank meeting next week where policymakers are largely expected to signal no change in policy. The dollar index, which tracks the greenback versus a basket of six currencies .DXY rose 0.4 percent, to 90.314, after touching a near two-week high of 90.477.
  • New applications for U.S. unemployment benefits fell last week, indicating continued job growth after a slowdown in March. Initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 232,000 for the week ended April 14, the Labor Department said on Thursday. Data for the prior week was unrevised. Economists polled by Reuters had forecast claims falling to 230,000 in the latest week. The economy created 103,000 jobs in March, the fewest in six months. The labor market is considered to be near or at full employment. The unemployment rate is at a 17-year low of 4.1 percent, not far from the Federal Reserve’s forecast of 3.8 percent by the end of this year.
  • The week, Federal Reserve officials signaled further interest rate increases in 2018 based on evidence of steady U.S. growth, while the heads of the ECB and the Bank of England seemed in no rush to push rates higher in the wake of disappointing economic data out of Britain and Europe.
  • A housing shortage, strong economy and robust demand have pushed many homes in major U.S. cities over $1 million, offsetting buyers’ concerns about the reduced benefits of owning a pricey property under President Donald Trump’s tax reform, data show. Home sales at $750,000 and above have surged by double digits annually in the past three years, U.S. homebuilding rose in March, according to data released on Tuesday. Housing starts increased 1.9% to a seasonally adjusted annual rate of 1.319 million units last month, the Commerce Department said. Economists had forecast housing starts rising to a pace of 1.27 million units last month. Building permits rose 2.5% to a rate of 1.354 million units in March. Economists had forecast building permits increasing to a pace of 1.330 million units last month.
  • BRUSSELS Inflation in the 19 countries sharing the euro currency rose in March by less than previously estimated, European statistics office Eurostat said on Wednesday, as unprocessed food prices increased by less than previously thought. The downward revision shows the difficult task the European Central Bank (ECB) faces in bringing inflation to its target of close to but below 2.0 percent. Prices rose by 1.3 percent in March, compared to the same period last year, down from Eurostat’s previous estimate of 1.4 percent. Compared to the previous month, prices were up 1.0 percent.
  • British shoppers stayed home in March as they felt the chill from the ‘Beast from the East’, leading to the biggest quarterly fall in retail sales in a year and weighing on first-quarter economic growth, official figures showed on Thursday. Unusually cold and snowy weather caused retail sales volumes to drop by 1.2 percent compared with the month before, the Office for National Statistics said, a bigger fall than most economists polled by Reuters had expected. UK retail sales slumped in March, raising concerns about the strength of the British economy. Retail sales fell 1.2% in March the Office for National Statistics said on Thursday. This was compared to 0.8% in the previous month. Economists had forecast a decline of 0.5%. Year-over year, retail sales rose 1.1% from 1.5% the previous month. Core retail sales, which exclude automobile and gasoline sales, dipped 0.5% in March, compared to a revised 0.4% the month before. Annualized, core sales grew 1.1% from 1.2%.
  • The Dow Jones Industrial Average fell 257.33 points, or 1.04 percent, to 24,407.56, the S&P 500 lost 28.86 points, or 1.07 percent, to 2,664.27 and the Nasdaq Composite dropped 106.42 points, or 1.47 percent, to 7,131.64.
  • Shares in Europe turned steady and were on track for a fourth week of gains. The pan-European FTS Euro first 300 index rose 0.05 percent and MSCI’s gauge of stocks across the globe shed 0.97 percent.

 

Local Market:- 

  • Indian indexes ended slightly higher on Friday, led by gains in stocks such exporter Tata Consultancy Services Ltd following U.S. china trade war is making financial market little nervous.
  • Indian shares ended flat on Friday, as gains in technology stocks offset losses in other sectors, while minutes of the central bank’s policy panel meeting stoked expectations of an interest rate hike. The broader NSE index ended little changed at 10,564.05, gaining 0.8 percent for the week.
  • The NSE IT index gained about 5 percent, with the country’s top software services exporter Tata Consultancy Services Ltd marking its record closing high.