Oct 16 2018

Rupee Closed At 2-Week High, Eye On Fed Minutes

Financial Market Overview

16TH October, 2018

Evening Coffee:-                                                                        

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee rose to a two-week high against the dollar in volatile trade, as a reversal in increasing crude oil prices helped offset early losses. Dollar inflows into domestic markets also supported the rupee, as investors awaited minutes of the Federal Reserve’s latest meeting, due to be released tomorrow.
  • The rupee settled at 73.46 to a dollar. Its highest since Oct. 3, and against 73.83 at previous close. It opened at 73.81 and extended gains amid softer U.S. retail sales number, before falling to the day’s low of 73.96 on importers’ greenback demand and rebounded again.

Indian Equities:-

  • Bulls kept the momentum going on Dalal Street for third consecutive session on Tuesday as the Sensex gained nearly 300 points and all sectoral indices ended in the green despite mixed global cues. Stable rupee and crude oil prices, and healthy start to September quarter earnings season aided the rally. Banks & financial, auto, energy, and select FMCG and technology stocks were prominent gainers, which all pushed the frontline indices to near two-week high. The 30-share BSE
  • Sensex climbed 297.38 points to 35,162.48 and the 50-share NSE Nifty rallied 72.30 points to 10,584.80, the highest level .

Global Markets:-

  • European markets are mixed today. The SMI is up by 0.52%, the Spain’s IBEX35 up by 0.99%, the France’s CAC40 is gsin by 0.36%, the London’s FTSE100 is trading lower by -0.27% while the Germany DAX and Eurozone’s STOXX50 both are higher by 0.39% and 0.31% respectively.
  • The dollar was mired near a three-week low on Tuesday thanks to tepid U.S. data overnight, though broadly firmer U.S. Treasury yields prevented a sell-off. The data, showing U.S. retail sales barely rose in September, was a rare blemish in a run of economic indicators which this month pushed 10-year U.S. Treasury yields to their highest levels for more than seven years above 3.22 percent. U.S. industrial output data is due later today.
  • The dollar index was broadly flat at 95.11, just above last week’s three-week low of 94.92.
  • The euro remained broadly on the back foot, holding around $1.1573 against the dollar after the Italian cabinet’s sign-off on an expansionary 2019 budget that sets up a showdown with the European Union over compliance with its rules.
  • Brent crude oil contract was trading 0.7% lower at 80.19 per barrel, ahead of U.S. crude stockpiles data which has been predicted to have risen for the fourth straight week last week, while refined products inventories likely declined.