Oct 25 2017

Rupee egded lower on broad Dollar strength

Financial Market Overview

25th October, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee edge lower against the dollar in early trade, tracking most Asian peers, as the greenback rallied amid speculation that hawkish Stanford University economist John Taylor was a favorite to be the next Federal Reserve head.. Pair USDINR Now at 65.12 against 65.0550 previous close.
  • Pair to tip in range between today 65.00-65.25.

Indian Equities:-

  • Equity benchmarks hit historic highs in opening trade on Wednesday, driven by banks after the government announced Rs 2.11 lakh crore recapitalisation for PSU banks on asset quality worries.
  • The 30-share BSE Sensex was up 456.55 points or 1.40 percent at 33,063.89 and the 50-share NSE Nifty rose 104.80 points or 1.03 percent to 10,312.50.

Global Markets:-

  • Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.12% while the Hang Seng is up 0.68%. The Shanghai Composite is trading up 0.13% and Australian ASX200 is higher by 0.11%.
  • S. stocks were higher at the close on Tuesday, as gains in the Basic Materials, Industrials and Financials sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average added 0.72% to hit a new all time high, while the S&P 500 index added 0.16%, and the NASDAQ Composite index added 0.18%.
  • European markets finished higher yesterday with shares in France leading the region. The CAC 40 is up 0.15% while Germany’s DAX is up 0.08% and London’s FTSE 100 is up 0.03%.
  • The dollar index, which measures the greenback against a basket of six major rivals, managed to shrug off overnight losses to trade up 0.23%, after a report that U.S. President Donald Trump lunched with Senate Republicans yesterday to discuss their choices for the next Fed chair, with several favoring economist Taylor over current Fed Governor Jerome Powell. There was also talk on possibility of re-appointing current Fed Chair Janet Yellen. Taylor, seen as even more hawkish than Yellen, had made an impression on Trump after an hour-long interview at the White House last week. He is seen as someone likely to bring about faster interest rate increases.