Dec 10 2018

Rupee At 3-Week Low Ahead Of State Poll Outcome, Reserve Bank of India Governor Urjit Patel has resigned

Financial Market Overview

10th December, 2018

Evening Coffee                                                                        

Indian Rupee:-

  • Reserve Bank of India Governor Urjit Patel has resigned, citing personal reasons.
  • The Indian rupee fell to a near three-week low against the dollar, as investors cautiously awaited results of some key state assembly elections tomorrow after an inconclusive exit poll outcome. Widening of current account deficit at home and sell-off in global shares also weighed on the local unit. The rupee settled at 71.34 to a dollar, its lowest since Nov. 20, and against 70.80 at previous close. After opening sharply lower, the local unit trimmed some losses to make an intraday high of 71.23, only to fall again to the day’s low of 71.45.
  • The Indian rupee was dragged down by variety of negative factors, including undecisive exit polls that will keep markets interested in tomorrow’s actual decision.

 Indian Equities:-

  • Bears took complete control on D-Street, as benchmark indices shed nearly 2 percent. Weak global cues, reactions to exit polls as well as weak macro data weighed big on Sensex and the Nifty.
  • At the close of market hours, the Sensex was down 713.53 points or 2.00% at 34959.72, and the Nifty down 205.20 points or 1.92% at 10488.50. The market breadth was negative as 647 shares advanced, against a decline of 1870 shares, while 134 shares were unchanged

 Global Markets:-

  • European markets are lower today with shares in Germany off the most. The DAX is down 0.39% while France’s CAC 40 is off 0.33% and London’s FTSE 100 is lower by 0.23%.
  • U.S. stocks tumbled on Friday in a broad sell-off led by declines in big internet and technology shares, and the benchmark S&P 500 index posted its biggest weekly percentage drop since March as concerns over U.S.-China trade tensions and interest rates convulsed Wall Street.
  • The Dow Jones Industrial Average fell 559.33 points, or 2.24 percent, to 24,388.34, the S&P 500 lost 62.86 points, or 2.33 percent, to 2,633.09 and the Nasdaq Composite dropped 219.01 points, or 3.05 percent, to 6,969.25.
  • Britain’s economy lost speed as expected in the three months to October, reflecting falling car sales and factory stoppages due to weaker demand, raising questions about the economy’s health ahead of Brexit. Gross domestic product growth in the three months to October slowed to 0.4 percent from an unusually robust 0.6 percent in the third quarter of 2018, in line with a Reuters poll of economists.
  • Investor morale in the euro zone slumped to a four-year low in December as fears about trade conflicts, Italy’s budget row with the European Union and Brexit led to a collapse in sentiment, a survey showed on Monday. Sentix research group said its investor sentiment index for the euro zone slid to -0.3 from 8.8 in November, the lowest level since December 2014, and the fourth consecutive monthly drop.
  • The rate of economic growth in the UK slowed over the last three months, according to figures released by the Office for National Statistics on Monday.