Mar 01 2018

Rupee almost flat as India’s upbeat GDP growth offsets risk aversion

Financial Market Overview

01st March, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee little changed as robust India GDP data balances fears of quicker pace of US monetary tightening. Pair USDINR now at 65.17, off earlier highs of 65.24 and against 65.18 previous close.
  • Data released late yesterday showed India’s economy grew 7.2% from a year earlier in October-December, accelerating from the upwardly revised 6.5% in the prior quarter and higher than the 6.9% reading expected by economists poll.
  • Pair to tip in range between 65.10-65.30.

Indian Equities:-

  • Equities have begun the day on a flat note, with the Nifty hovering around 10,500-mark.
  • The Sensex is down 35.91 points or 0.11% at 34148.13, while the Nifty is down 5.50 points or 0.05% at 10487.40. The market breadth was positive as 301 shares advanced, against a decline of 221 shares, while 98 shares are unchanged.

Global Markets:-

  • Asian Shares are mixed today, the Hong Kong’s Hang Seng is up 0.19%, the Shanghai Composite is trading higher by 0.59% while the Australian ASX200 fell by 0.89%.
  • European markets finished lower today with shares in London leading the region. The FTSE 100 is down 0.69% while Germany’s DAX is off 0.44% and France’s CAC 40 is lower by 0.44%.
  • S. stocks sold off late to end sharply lower on Wednesday, dragged down by worries over higher interest rates, and the Dow and S&P 500 capped their worst months since January 2016. The Dow Jones Industrial Average fell 382.07 points, or 1.5 percent, to 25,027.96, the S&P 500 lost 30.48 points, or 1.11 percent, to 2,713.8 and the Nasdaq Composite dropped 57.35 points, or 0.78 percent, to 7,273.01.
  • Growth in China’s manufacturing sector unexpectedly picked up to a six-month high in February. The Caixin/Markit Manufacturing Purchasing Manager’s Index (PMI) edged up to 51.6 last month, from 51.5 in January, and countering economists’ expectations for a slight dip to 51.3. The 50-mark divides expansion from contraction on a monthly basis.
  • Dollar index up 0.1%, adding to overnight’s 0.3% rise. Fed chair Jerome Powell to appear before US Congress for second time later today, where he could repeat his optimistic remarks on US economy and inflation.
  • The U.S. GDP expanded at a 2.5% annual rate in the December quarter, instead of the previously reported 2.6%, data released by the Commerce Department showed.
  • In regional currencies, Korean won and Indonesian rupiah were among the most notable losers against the U.S. currency.