Financial Market Overview
07th February, 2019
MARKETS AT CLOSE:-
- The Indian rupee recouped early losses to end at a near-one week high against the dollar, after the nation’s rate-setting panel unexpectedly cut its key policy interest rate that lifted local assets, while announcing steps to boost dollar inflows.
- The rupee settled at 71.45 to a dollar, its highest since Feb. 1, and against 71.55 at previous close. The currency opened at 71.73 and traded in 71.54-71.76 range before the policy announcement. It fell to 71.72 post the policy, but rebounded to the day’s high of 71.29 later in the session.
- India’s Monetary Policy Committee today unexpectedly cut the key policy interest rate by 25 basis points to 6.25%.
- Benchmark indices ended flat on Thursday with Nifty ended above 11,000 level. RBI in its MPC meeting has cut repo rate by 25 bps at 6.25 percent.
- The Sensex was down 4.14 points at 36971.09, while Nifty was up 6.90 points at 11069.40. About 1377 shares have advanced, 1145 shares declined, and 164 shares are unchanged.
- Zee Entertainment, Sun Pharma, Eicher Motors, Bharti Infratel and Bajaj Auto are the top gainers on the Nifty, while losers include JSW Steel, Reliance Industries, L&T, Hindalco and Power Grid
- European markets are lower today with shares in Germany off the most. The DAX is down 0.89% while France’s CAC 40 is off 0.48% and London’s FTSE 100 is lower by 0.04%.
- U.S. stocks edged lower on Wednesday as videogame makers gave disappointing revenue forecasts and investors awaited developments on U.S.-China trade relations. The Dow Jones Industrial Average fell 21.22 points, or 0.08 percent, to 25,390.3, the S&P 500 lost 6.09 points, or 0.22 percent, to 2,731.61 and the Nasdaq Composite dropped 26.80 points, or 0.36 percent, to 7,375.28.
- German industrial output unexpectedly fell in December for the fourth consecutive month, sending another signal that growth in Europe’s biggest economy is weakening. Data from the Federal Statistics Office on Thursday showed industrial output was down by 0.4 percent.
- Germany’s DIHK Chambers of Industry and Commerce on Thursday slashed its 2019 growth forecast for the German economy to 0.9 percent from 1.7 percent, pointing to growing headwinds from abroad for Europe’s biggest economy. Companies’ outlook is getting clouded. Business expectations have significantly deteriorated in all economic sectors.
- The U.S. trade deficit fell for the first time in six months in November as cheaper oil and higher domestic petroleum production helped to curb the country’s import bill, leading economists to boost their economic growth estimates for the fourth quarter. The Commerce Department’s report on Wednesday also showed a drop in imports of consumer goods such as cell phones and other household goods. The decrease in imports followed five straight monthly increases.
- Oil prices slipped on Thursday after U.S. crude inventories rose and the country’s production held at record levels, but OPEC-led supply cuts and Washington’s sanctions against Venezuela supported markets. U.S. West Texas Intermediate (WTI) crude futures were at $53.82 per barrel, down 19 cents, or 0.4 percent, from their last settlement. International Brent crude oil futures fell 25 cents, or 0.4 percent, to $62.44 per barrel.