Mar 13 2018

Rupee edges higher as Indian economy moderated more than expected

Financial Market Overview

13th March, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee open higher against the dollar after consumer prices in Asia’s third-largest economy moderated more than expected. Pair USDINR now at 64.92 against 65.0350 at previous close.
  • Data released yesterday showed that India’s retail inflation slowed to 4.4% in February compared with 5.07% in the previous month and versus the 4.80% reading expected by economists poll. There was more positive macro news for the rupee as the nation’s industrial output in January quickened to 7.5% from 7.1% in the month before.
  • Pair to tip in range between 64.85-65.05.

Indian Equities:-

  • Benchmark indices opened mildly lower on Tuesday after the January’s industrial output and February’s CPI inflation data announced later in the day yesterday. It was a bit of profit booking after yesterday’s more than 600 points rally on the Sensex.
  • The 30-share BSE Sensex was down 25.52 points at 33,892.42 and the 50-share NSE Nifty fell 7.50 points to 10,413.90.

Global Markets:-

  • Asian markets are lower today. The Australian ASX200 is down 0.70%, Shanghai Composite fell by 0.31% and the Hong Kong’ Hang Seng is trading lower by 0.23%.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.58% and the CAC 40 rose 0.04%. The FTSE 100 lost 0.13%.
  • The Nasdaq rose on Monday as tech stocks climbed, but the S&P 500 ended lower and the Dow dragged as industrials were weighed down by tariffs signed into law last week by President Donald Trump. The Dow Jones Industrial Average fell 157.26 points, or 0.62 percent, to 25,178.48, the S&P 500 lost 3.55 points, or 0.13 percent, to 2,783.02 and the Nasdaq Composite added 27.52 points, or 0.36 percent, to 7,588.33.
  • The dollar index was little changed in early Asia trading before the release of the U.S. February consumer inflation data. The data will be closely watched by investors in light of recent concerns over higher inflation potentially prompting the Federal Reserve to raise rates more aggressively. Economists poll expect U.S. consumer prices to have risen by 2.2% in February from a year earlier. Core inflation, a more closely watched measure, is expected at 1.8%.