Financial Market Overview
28th November, 2018
- The Indian rupee rose for a second session to a three-month high against the dollar, on likely equity-related dollar inflows and greenback sales by exporters.
- The rupee settled at 70.62 to a dollar, highest close since Aug. 29, against 70.76 at previous close. It opened lower and extended losses to 70.90, before erasing gains and rising to the day’s high of 70.57. Other Asian currencies ended mixed against the greenback.
- Indian shares closed higher for the third straight session on Wednesday, helped by IT stocks such as Tata Consultancy Services Ltd and Infosys Ltd, although investor sentiment was cautious ahead of the expiry of futures and options contracts later this week.
- The broader NSE index closed 0.4 percent higher at 10,728.85, while the benchmark BSE index ended up 0.57 percent at 35,716.95.
- The Nifty IT index gained 2.9 percent with TCS rising about 5 percent and Infosys adding 4.3 percent.
- European markets are mixed today. The CAC 40 is up 0.43% while the DAX gains 0.20%. The FTSE 100 is off 0.05%.
- The S&P 500 and the Dow Jones Industrial Average edged higher on Tuesday after White House economic adviser Larry Kudlow said a meeting between President Donald Trump and his Chinese counterpart on Saturday was an opportunity to “turn the page” on a trade war. All three of Wall Street’s major indexes reversed losses following Kudlow’s comments days ahead of the high-stakes dinner between Trump and Xi Jinping after the G20 summit in Buenos Aires.
- Profit growth at China’s industrial firms cooled for a sixth straight month in October as factory prices and the pace of sales increases softened amid mounting uncertainties stemming from the U.S.-China trade war. China and the United States have slapped tariffs on billions of dollars of each other’s goods, hurting manufacturing and casting a shadow on the outlook for global growth. Industrial profits rose 3.6 percent in October from a year earlier to 548 billion yuan ($78.92 billion), a 7-month low and a slowing from September’s 4.1 percent gain.
- European Union banks have cut bad loans and raised provisions, the European Commission said on Wednesday, before EU finance ministers decide next week when to introduce an EU deposit guarantee scheme that hinges on lower risk in banks. The European Deposit Insurance Scheme (EDIS) would guarantee that the holder of a deposit of up to 100,000 euros ($112,890) in any bank in a euro zone country would always get it back in case of a bank collapse.