Nov 01 2017

Rupee edges higher as local equities surge to new highs

Financial Market Overview

01st November, 2017

Morning Coffee:-                                                                                  



  • Rupee edges higher as local stocks hit record highs tracking Asian peers; pair USDINR now at 64.61 against 64.75 previous close.
  • Data yesterday showed India’s fiscal deficit in the first half of the current financial year that started Apr. 1 totalled 4.98 trillion rupees, widening from 4.48 trillion rupees in the comparable year-earlier period. Fiscal deficit for the April-September period was 91.3% of the government’s estimate for this financial year, against 83.9% in the same period last year.
  • Pair to tip in range between today 64.50-64.80.

Indian Equities:-

  • Equity benchmarks as well as Nifty Bank started off Wednesday’s trade with record highs, backed by banks, metals and telecom stocks. The rally was after the World Bank said India’s rank on ‘ease of doing business’ scale has risen from 130th to 100th this year, helped by a slew of reforms in taxation, licensing, investor protection and bankruptcy resolution.
  • The 30-share BSE Sensex was up 209.28 points or 0.63 percent at 33,422.41 and the 50-share NSE Nifty rose 61.20 points or 0.59 percent to 10,396.50. About 950 shares advanced against 202 declining shares on the BSE.
  • SBI, Bharti Airtel, Axis Bank, Yes Bank, Vedanta, Tata Steel and JSW Steel were early gainers.

Global Markets:-

  • Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 1.42% while the Hang Seng is up 0.59%. The Shanghai Composite is up 0.18% and Australian ASX200 rose 0.48%.
  • S. stocks were higher at the close on Tuesday, as gains in the Consumer Goods, Technology and Oil & Gas sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average added 0.12%, while the S&P 500 index gained 0.09%, and the NASDAQ Composite index gained 0.43%.
  • European markets finished mixed as of their recent closing prices on Tuesday. The DAX gained 0.09% while the FTSE 100 was higher by 0.07%. The CAC 40 was even.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended little changed overnight and was last trading up 0.13%, as participants await conclusion of the Fed meet. Market expectations are that the central bank will maintain status quo on interest rates but investors will watch out for commentary indicating a rate hike at the December meet.
  • Economic data yesterday certainly supported the view of a solid U.S. economy, with the Conference Board’s consumer confidence index showing a rise in reading by 5.3 points to 125.9 this month, a near-17-year high. The Chicago Purchasing Managers’ Index, that measures business activity and new orders, also rose to 66.2 last month, above September’s reading of 65.2.
  • President Donald Trump is expected to make an announcement regarding appointment of a new central bank head tomorrow, with reports still indicating he could be leaning towards nominating Fed Governor Jerome Powell. Powell is viewed as being more dovish on monetary policy compared to other candidates in running for the position, such as Stanford University economist John Taylor.