Rupee Falls For 3rd Day On Importers' Dollar Bids, Trade Data

Rupee Falls For 3rd Day On Importers' Dollar Bids, Trade Data

16 Apr 2019 05:29 PM

Financial Market Overview

16th April, 2019

Evening Coffee

MARKETS AT CLOSE                                   

Indian Rupee

  • The Indian rupee fell for a third consecutive session to a more-than-one-week low against the dollar, as greenback demand from importers and wider-than-expected trade deficit in March weighed on the local unit.
  • The rupee ended at 69.60 to a dollar, its lowest since Apr. 8, against 69.42 at the previous close. The local unit opened lower at 69.49 and extended losses to 69.70. Most Asian currencies ended lower against the greenback.. Importers today accumulated dollars due to a holiday-truncated week, while impact of widening of trade deficit on month also added to the rupee’s fall.
  • However, so far the equity market has seen sustained inflows that has proved positive for the local currency. Traders will eye from developments between U.S.-China trade deal for further cues.

Indian Equities

  • Benchmark indices have extended the morning gains with Nifty50 jumping over 100 points, trading at 11,792, while the Sensex rallied 391 points and is trading at 39,297.
  • Bank Nifty continues to outperform, up over 1 percent led by ICICI Bank and IndusInd Bank which gained over 3 percent each followed by RBL Bank, Axis Bank and Federal Bank. Infra stocks are also bussing led by Interglobe Aviation which spiked 7 percent followed by Bharti Infratel, Larsen & Toubro, Vodafone Idea, IRB Infra and Adani Ports.

Global Markets

  • European markets are mixed today. The DAX is up 0.58% while the FTSE 100 gains 0.39%. The CAC 40 is off 0.07%.
  • Wall Street lost ground on Monday, dragged down by financials as underwhelming bank earnings curbed investor enthusiasm. But while all three major U.S. stock indexes edged lower, the S&P 500 remained within a percent of its record high.Following a January-March rally that marked the U.S. stock market's best quarterly performance in nearly a decade, stocks had been in a holding pattern in April ahead of first quarter reporting season. The Dow Jones Industrial Average fell 27.53 points, or 0.1%, to 26,384.77, the S&P 500 lost 1.83 points, or 0.06%, to 2,905.58 and the Nasdaq Composite dropped 8.15 points, or 0.1%, to 7,976.01. Of the 11 major sectors in the S&P 500, six ended the session in the red.
  • British workers' pay grew at its joint fastest pace in over a decade as employers extended their hiring spree, adding to signs that uncertainty about Brexit is prompting firms to take on workers rather than commit to longer-term investments. Contrasting with other sluggish readings of Britain's economy, total earnings, including bonuses, rose by an annual 3.5 percent in the three months to February, official data showed.
  • The worst may be over for the German economy. A closely-watched measure of confidence turned positive for the first time in 11 months in April, suggesting that the euro zone's most important economy may be regaining momentum after nearly tipping into recession around the turn of the year. The economic sentiment index compiled by the Mannheim-based think-tank ZEW rose to 3.1 from -3.6 in March, a stronger rise than forecast by economists and the first time in 13 months that the index has been above zero.