Jan 16 2019

Rupee At 1-Month Low On Fiscal Worries

Financial Market Overview

16th January, 2019

Evening Coffee                                                                        

Indian Rupee:-

  • The Indian rupee fell for a fourth straight session to a month-low against the dollar, as concerns the federal government may deviate from fiscal consolidation path weighed on local bonds, increasing fears of more foreign fund outflows.
  • The rupee settled at 71.24 to a dollar, its lowest since Dec. 17, against 71.04 at previous close. The currency opened at 71.06 before rising to 70.93 in early trade. It fell to the day’s low of 71.26 but recouped some losses after at least one state-run bank and two private lenders sold the greenback, apparently on behalf of the Reserve Bank of India.

 Indian Equities:-

  • Benchmark indices ended the volatile day on flat note with Nifty closed below 10,900, while Sensex finished near day’s low point.
  • The Sensex was up 2.96 points at 36321.29, while Nifty was up 3.50 points at 10890.30. About 1208 shares have advanced, 1345 shares declined, and 144 shares are unchanged.
  • Indiabulls Housing, Yes Bank, Wipro, IndusInd Bank and BPCL are the top gainers on the Nifty, while JSW Steel, Bharti Infratel, Bajaj Finance, UPL and Vedanta are the top losers on the Nifty.

 Global Markets:-

  • European markets are mixed. The CAC 40 is higher by 0.18%, while the FTSE 100 is leading the DAX lower. They are down 0.51% and 0.04% respectively.
  • The euro slipped against the dollar and the pound on Wednesday as worries about the outlook of the euro zone economy weighed on the single currency while sterling edged higher before a no-confidence vote on Prime Minister Theresa May’s government. Prime Minister Theresa May’s government faced the vote on Wednesday after the crushing defeat of her Brexit divorce deal by parliament left Britain’s exit from the European Union in disarray just 10 weeks before it is due to leave.
  • U.S. stocks rose on Tuesday as technology and internet stocks gained on Netflix Inc’s plans to raise fees for U.S. subscribers and hopes of more stimulus for China’s slowing economy fostered a risk-on mood among investors. The Dow Jones Industrial Average rose 155.75 points, or 0.65 percent, to 24,065.59, the S&P 500 gained 27.68 points, or 1.07 percent, to 2,610.29 and the Nasdaq Composite added 117.92 points, or 1.71 percent, to 7,023.83.
  • The annual rate of change in Britain’s consumer price index dropped to 2.1% last month, its lowest level since Jan. 2017, underlining the case for the Bank of England to hold off on further policy tightening amid the political crisis surrounding the UK’s departure from the European Union.
  • U.S. producer prices dropped by the most in more than two years in December as the cost of energy products and trade services fell, adding to signs of tame inflation that may allow the Federal Reserve to be patient about raising interest rates this year.