Jul 27 2018

Rupee edges higher as likely IPO inflows offset Dollar strength

Financial Market Overview

27th July, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens slightly higher amid dollar selling by two custodial banks, which overshadows dollar’s advance against euro and regional currencies. The rupee rose to an intraday high of 68.53 on the back of dollar sales by various private banks and foreign banks. Pair now at 68.58 against 68.66 previous close.
  • We expect the pair to trade in the range between 68.45-68.80 today.

Indian Equities:-

  • Today morning  a strong start to the market, with the Sensex and Nifty opening at a fresh record high and crossing 11,200 for the first time.
  • The Sensex is up 216.83 points or 0.59% at 37201.47, while the Nifty is up 62.00 points or 0.56% at 11229.30. The market breadth is positive as 342 shares advanced, against a decline of 87 shares, while 44 shares are unchanged.

Global Markets:-

  • Asian markets are mixed today. The Australian’s  ASX200 show gains of 0.77% while the Shanghai composite and Hong Kong’s Hang Seng .are trading mildly lower by 0.06% and 0.01% respectively.
  • European markets finished broadly higher today with shares in Germany leading the region. The DAX is up 1.83% while France’s CAC 40 is up 1.00% and London’s FTSE 100 is up 0.06%.
  • The Dow Jones Industrial Average rose 114.39 points, or 0.45 percent, to 25,528.49, the S&P 500 lost 8.6 points, or 0.30 percent, to 2,837.47, and the Nasdaq Composite dropped 80.05 points, or 1.01 percent, to 7,852.19.
  • A plunge in Facebook Inc’s shares pushed the Nasdaq down more than 1 percent on Thursday, the index’s biggest one-day drop in a month, but industrial stocks rose after the United States and the European Union said they would negotiate on trade.
  • The onshore yuan declined 0.3% to 6.81 against the dollar in Friday trading amid continuing trade tensions between the U.S. and China. Yesterday, Beijing’s envoy to the World Trade Organization reportedly said that the U.S. is demonizing China and attacking its economic model to divert attention from itself and that China would never bow down to such pressure tactics. Meanwhile, U.S. Trade Representative Robert Lighthizer, President Donald Trump’s top trade official, told lawmakers in Washington yesterday that the U.S. could not afford to capitulate to China economically.