Oct 25 2018

Rupee ends lower as local equities fall

Financial Market Overview

25th October, 2018

Evening Coffee:-                                                                        

MARKETS AT CLOSE:-

Rupee:-

  • The rupee ended at 73.2750 to a dollar against 73.15 at close yesterday. It fell to 73.37 in early trade before rising as much as 73.26. Most Asian currencies were flat to lower against the greenback.
  • Exporters are of view that rupee may appreciate going ahead as crude oil prices’ fall continued even today. However, global cues are not in favour of riskier assets, which is weighing on shares and is restricting further gains in rupee. Most speculators have long dollar view as we near month-end that will prompt some demand for greenback from oil and other importers.

Indian Equities:-

  • The market remained under pressure throughout the session but recovered a bit at the end of October F&O expiry day.
  • The Sensex was down 343.87 points at 33690.09, while Nifty was down 99.90 points at 10124.90. About 930 shares have advanced, 1559 shares declined, and 1121 shares are unchanged.
  • Barring IT, all the other sectoral indices ended in red. Wipro, Coal India, Kotak Mahindra Bank, ITC, Asian Paints are the top gainers on the Sensex, while Bharti Airtel, Vedanta, Yes Bank, Tata Motors and Sun Pharma are the top losers on the Sensex.

Global Markets:-

  • European markets are broadly higher today with shares in France leading the region. The CAC 40 is up 1.42% while Germany’s DAX is up 0.50% and London’s FTSE 100 is up 0.12%.
  • The European Central Bank seems certain to keep policy unchanged on Thursday but it is likely to acknowledge the growth outlook is deteriorating, even if not yet by enough to derail a carefully crafted retreat from stimulus. Having exhausted much of its firepower with four years of unprecedented support, the ECB will reaffirm its asset purchases are set to end this year but also note that uncertainty is on the rise in the euro zone, giving its policy outlook a dovish undertone.
  • German business morale deteriorated slightly more than expected in October as rising trade tensions and the possibility of Britain leaving the European Union without a deal dampened confidence. The climate index fell for the second month in a row to 102.8, below a Reuters consensus forecast of 103.0.Consumption and state spending have been the main growth drivers in Germany as exports weaken. The dynamic domestic economy is expected to continue propelling an upswing seen entering its 10th year in 2019. But the risk of a no-deal Brexit, trade tensions and a lack of skilled workers are weighing on the growth outlook for Europe’s largest economy.
  • Dollar Index was last trading down 0.2%. It rose to over two-month high to 96.53 overnight, following weak manufacturing data pulled the euro down.