Nov 30 2018

Rupee Ends Higher As Oil Drop Boosts Inflows

Financial Market Overview

30th November, 2018

Evening Coffee                                                                        

Indian Rupee:-

  • The Indian rupee posted its biggest monthly rise in nearly seven years against the dollar, as more than 20% drop in crude oil prices this month renewed foreign portfolio investors’ interest in local assets. The rupee settled at 69.59 to a dollar, its highest since Aug. 10, and against 69.84 at previous close. The currency opened higher and traded in 69.56-69.91 band, as investors await a crucial meeting between the U.S. President Donald Trump and Chinese leader Xi Jinping at the sidelines of the G-20 Summit.
  • The rupee advanced 5.9% in November, its biggest monthly gain since January 2012. The second-best performing currency this month after the Indonesia rupiah, the rupee marked its third consecutive weekly rise, also helped by dovish comments from the U.S. Federal Reserve chairman.

 Indian Equities:-

  • Benchmark indices ended marginally higher on Friday, but the Nifty could not hold on to 10,900 level. This is fifth consecutive day gain recorded by the indices.
  • The Sensex was up 23.89 points at 36194.30, while Nifty was up 22.10 points at 10880.80. About 1278 shares have advanced, 1310 shares declined, and 146 shares are unchanged.

 Global Markets:-

  • European markets are lower today with shares in London off the most. The FTSE 100 is down 0.62% while Germany’s DAX is off 0.51% and France’s CAC 40 is lower by 0.44%.
  • Wall Street closed slightly lower on Thursday as tech and financial shares slumped, erasing earlier gains stemming from Federal Reserve minutes showing the central bank opened the debate on when to pause further interest rate hikes. The minutes showed almost all Fed members agreeing that another rate increase was “likely to be warranted fairly soon,” but also ticked off a series of issues that had begun weighing on their view of the economy. The Dow Jones Industrial Average fell 27.59 points, or 0.11 percent, to 25,338.84, the S&P 500 lost 5.99 points, or 0.22 percent, to 2,737.8 and the Nasdaq Composite dropped 18.51 points, or 0.25 percent, to 7,273.08.
  • The dollar index tracking it against a basket of six major currencies, fell 0.01 percent, with the euro up 0.22 percent to $1.1391.
  • British Prime Minister Theresa May said on Thursday she was focused on persuading lawmakers to back her Brexit deal at a vote in parliament on Dec. 11 rather than preparing a plan B.
  • A summit of the world’s top economies will open on Friday with leaders struggling over fallout from a U.S.-China trade war that has roiled global markets and bracing for the kind of divisive geopolitical drama that President Donald Trump often brings to the international stage.