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Dec 18 2017

Rupee egdes lower as exit poll shows tight race in Gujrat elections

Financial Market Overview

18th December, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee lower as leads show tight race in Gujarat elections. Pair USDINR now at 64.50 against 64.04 previous close; pair reached high of 64.74 earlier, highest since Nov. 27.
  • Initial leads on Gujarat show Congress neck and neck with BJP; exit polls had indicated comfortable win for BJP.
  • Data released on Dec. 15 showed India’s merchandise exports jumped 30.5% on year to $26.2 billion in November, while the imports rose 19.6% on year to $40.02 billion, the highest since November 2014.  The country’s merchandise exports and imports also rose from October’s $23.10 and $37.12 billion, respectively, narrowing India’s trade deficit in November to $13.83 billion, from $14.02 billion in the previous month. The gap was at $13.40 billion in the same month a year earlier.
  • Pair to tip in range between 64.10-64.80 today.

Indian Equities:-

  • Equity benchmarks stated off the week sharply lower on Monday as latest voting counts indicated that BJP is leading in both states (Gujarat and Himachal Pradesh) but with small margin.
  • The 30-share BSE Sensex was down 740.11 points or 2.21 percent at 32,722.86 and the 50-share NSE Nifty fell 208.80 points or 2.02 percent to 10,124.50.

Global Markets:-

  • Asian markets are mixed today . The Hang Seng is up 0.45% . The Shanghai Composite fell by 0.13% and ASX200 is trading higher  0.72%.
  • Wall Street’s three major indexes climbed to record closing highs on Friday. The Dow Jones Industrial Average rose 143.08 points, or 0.58 percent, to 24,651.74, the S&P 500 gained 23.8 points, or 0.90 percent, to 2,675.81 and the Nasdaq Composite added 80.06 points, or 1.17 percent, to 6,936.58.
  • European markets finished mixed as of the most recent closing prices on Friday. The FTSE 100 gained 0.57% and the DAX rose 0.27%. The CAC 40 lost 0.15%.
  • The dollar index, which measures the greenback against a basket of six major rivals, had ended 0.47% higher on Dec. 15. Top U.S. Republicans said yesterday they expect lawmakers to pass a tax code overhaul this week, with a Senate vote as early as tomorrow and President Donald Trump may sign the bill by the week’s end, John Cornyn, the No. 2 U.S. Senate Republican and Republican Representative Kevin Brady, in separate statements said they believe Congress to pass the bill.
  • Last week, the dollar came under pressure amid reports that two Republican senators, Florida’s Marco Rubio and Mike Lee of Utah, are seeking changes to the proposed legislation to overhaul the U.S. tax code to lend their support. Republicans hold 52 seats out of 100, while no Democrat is expected to support the bill.