Mar 13 2019

Rupee At 10-Wk High On Strong Shares

Financial Market Overview

13th March, 2019

Evening Coffee

MARKETS AT CLOSE:-                                    

Indian Rupee:-

  • The Indian rupee jumped to a 10-week high to rise for a third session against the dollar, on greenback sales by exporters amid strength in local shares that increased hopes of foreign fund inflows.
  • The rupee settled at 69.54 to a dollar, its highest since Jan. 1, and against 69.70 at previous close. The currency opened slightly lower and fell to 69.77, tracking weak Asian cues. It rose to the day’s high of 69.43 later in the session, but trimmed some gains after at least two state run banks were suspected to have bought dollars in small quantum, likely on the instructions of the Reserve Bank of India. “Rupee opened weaker, but recouped losses once the oil bids were absorbed by exporters.
  •  The 69.50 level was an immediate resistance for the local unit, which was broken as the foreign fund inflows have been strong and FIIs have been bringing funds in last few sessions..

Indian Equities:-

  • It was a terrific Tuesday for D-Street as Sensex rallied by nearly 500 points while Nifty50 reclaimed 11,300, registering a fresh 6-month closing high.
  • Fireworks were seen in the banking space as NiftyBank hit a fresh record high of 28,488 led by gains in IndusInd Bank, ICICI Bank, HDFC Bank, Kotak Bank and Axis Bank.All the other sectoral indices witnessed healthy buying and ended in green. Telecom, Realty, and Capital Goods were the top gainers in the range of 2.2-2.6 percent.

Global Markets:-

  • European markets are mixed. The CAC 40 is higher by 0.23%, while the DAX is leading the FTSE 100 lower. They are down 0.09% and 0.04% respectively.
  • A gauge of world equity markets rose and the dollar eased on Tuesday after a tame reading on U.S. inflation reinforced expectations the Federal Reserve will not raise interest rates anytime soon, while Boeing shares slid for a second day. On Wall Street, the S&P 500 gained 8.22 points, or 0.30 percent, to 2,791.52 and the Nasdaq Composite added 32.97 points, or 0.44 percent, to 7,591.03. The Dow Jones Industrial Average fell 96.22 points, or 0.38 percent, to 25,554.66, dragged lower by slumping Boeing.
  • Euro zone industrial production was stronger than expected in January, data showed on Wednesday, mainly thanks to a strong contribution from energy and despite a drop in German output. The European Union’s statistics office Eurostat said production in the 19 countries sharing the euro rose 1.4 percent month-on-month in January for a 1.1 percent year-on-year fall. It was expected a 1.0 percent monthly increase and a 2.1 percent annual decline.
  • The dollar index was last trading 0.1% lower at 96.88 and the British pound sterling was 0.6% higher today, while the single currency euro was trading little changed. Global risk sentiments remained subdued after Prime Minister Theresa May’s proposed deal of Britain leaving the European Union was defeated by lawmakers for a second time and raised concerns of volatility before the deadline of Mar. 29. British lawmakers will vote today if U.K. should exit the EU.