Rupee At 2nd Week Low As Oil Climbs To 6th Month High

Rupee At 2nd Week Low As Oil Climbs To 6th Month High

22 Apr 2019 05:35 PM

Financial Market Overview

22nd April, 2019

Evening Coffee

MARKETS AT CLOSE                                   

Indian Rupee

  • The Indian rupee fell to a two-week low against the dollar, as a surge in benchmark Brent crude oil prices sparked fears of outflows from local assets. However, bunched-up dollar inflows after a long weekend kept the rupee’s depreciation under check.
  • The rupee ended at 69.67 to a dollar, its lowest since Apr.8, against 69.36 at close on Apr. 18. The currency opened lower at 69.75 and extended losses to 69.87. Most Asian currencies ended mixed against the greenback.
  • Uptick in crude prices weighed on rupee today but since market opened after a long weekend, some bunched-up inflows capped larger fall in the local unit.

Indian Equities

  • Indian indices ended at day's low as selling pressure dragged Nifty below 11,600, while Sensex also fell nearly 500 points.  
  • At close, the Sensex was down 495.10 points at 38,645.18, while Nifty was down 158.30 points at 11,594.50. About 747 shares have advanced, 1751 shares declined, and 166 shares are unchanged.
  • Among the sectors except IT all other indices ended in red led by energy, bank, auto, metal, pharma, infra and FMCG.

Global Markets

  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.57% and the CAC 40 rose 0.31%. The FTSE 100 lost 0.15%.
  • S&P 500 companies are due to report first-quarter results, according to IBES the busiest week of the earnings season. Major U.S. stock index futures were edging higher in premarket trading on Thursday. Investors stand at the ready for the long-awaited. While all sectors will be represented, industrials have the most companies reporting, 29, followed by 22 financial companies, 20 healthcare companies and 18 for both technology and consumer discretionary, according to IBES.
  • U.S. homebuilding dropped to a near two-year low in March, pulled down by persistent weakness in the single-family unit segment, suggesting the housing market continued to struggle despite falling mortgage rates. The second straight monthly decline in homebuilding reported by the Commerce Department on Friday probably reflected in part massive flooding in the Midwest, with housing starts in the region plunging to levels last seen in early 2015.
  • Brent crude oil prices rose to a near six-month high of $74.31 per barrel, on reports that Washington is set to announce that all imports of Iranian oil must end or be subject to U.S. sanctions.
  • Dollar index was trading little changed today, after shedding 0.1% in the previous session.
  • The one-year dollar-rupee forward premium was last at 2.99 rupees, from its previous close of 2.84 rupees.