Feb 14 2019

Rupee Falls Most In Over 1-Week As Crude Prices Jump

Financial Market Overview

14th February, 2019

Evening Coffee

MARKETS AT CLOSE:-                                    

Indian Rupee:-

  • The Indian rupee posted its biggest single-session fall in over a week against the dollar, on greenback purchases by importers amid a spike in crude prices, while faster U.S. inflation rate lifted the dollar. The rupee closed at 71.16 to a dollar, against 70.80 at previous close.
  • The currency had opened lower, but briefly rose to day’s high of 70.79 per dollar on likely dollar inflows, before declining again to day’s low of 71.19. It declined 0.5%, its biggest single-day fall since Feb. 4. Most Asian currencies also fell against the dollar.
  • After the recent appreciation in the rupee, largely on back of dollar inflows along with rate cut and expectations of higher economic growth, some retracement was seen in the local unit on import buying. Also, the crude prices have edged higher.

Indian Equities:-

  • Despite firm global cues, equity benchmarks in India closed with cuts of 0.30 percent, with the Nifty ending below 10,800-mark. The Sensex ended over 100 points lower.
  • At the close of market hours, the Sensex was down 157.89 points or 0.44% at 35876.22, and the Nifty down 47.70 points or 0.44% at 10746.00. The market breadth was negative as 1167 shares advanced, against a decline of 1344 shares, while 121 shares were unchanged.
  • Yes Bank, Tata Motors, and Zee Entertainment gained the most, while Bharti Airtel, Infosys, BPCL and IOC were the top losers.

Global Markets:-

  • European markets are higher today with shares in France leading the region. The CAC 40 is up 0.42% while London’s FTSE 100 is up 0.12% and Germany’s DAX is up 0.07%.
  • Wall Street closed higher on Wednesday as investor optimism was stoked over hopes the United States and China could iron out a trade deal, and benign inflation data suggested the Federal Reserve would hold interest rates steady in the near term.
  • All three major U.S. stock indexes gained ground, with the S&P 500 and the Nasdaq posting their fourth consecutive advances. For the second straight day, the S&P 500 closed above its 200-day moving average, a key technical level. The Dow Jones Industrial Average rose 117.51 points, or 0.46 percent, to 25,543.27, the S&P 500 gained 8.3 points, or 0.30 percent, to 2,753.03 and the Nasdaq Composite added 5.76 points, or 0.08 percent, to 7,420.38.
  • The euro zone economy grew a seasonally adjusted 0.2% in the fourth quarter, according to updated official data released on Thursday that confirmed the preliminary reading. Eurostat said GDP growth in the single currency bloc was at 1.2% in the fourth quarter, down from 1.6% in the previous quarter and the slowest rate of growth in over three years. The European Commission slashed its growth forecast for the bloc’s economy Feb. 7, predicting growth would slow to 1.3% in 2019, down from a prior forecast of 1.9%. German data released earlier Thursday showed GDP was flat in the fourth quarter of 2018.
  • Japan’s economy bounced back in the fourth quarter as business and consumer spending recovered from the impact of natural disasters but trade frictions and a proposed sales tax hike are expected to hinder growth in 2019. Real exports rose 0.9 percent in October-December from the previous quarter, the data from the Cabinet Office showed, the fastest growth in a year.