Feb 06 2018

Rupee falls tracking Asian cues amid global equity sell-off

Financial Market Overview

06th February, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee fall against the dollar in early trade, in line with Asian peers, as demand for the greenback surged on poor risk appetite amid another global equity rout. Pair USDINR now at 64.35, against 64.06 previous close.
  • Investors now await the outcome of India’s two-day Monetary Policy Committee meet that begins today, where the rate-setting panel is widely expected to hold interest rates. However, it is expected to adopt a more hawkish tone amid upside risks on inflation in Asia’s third-largest economy.
  • Pair to tip in range between 64.25-64.55 today.

Indian Equities:-

  • At Benchmark indices crashed in opening, tracking weak lead from global peers.
  • The 30-share BSE Sensex was down 1,240.45 points or 3.57 percent at 33,516.71 and the 50-share NSE Nifty fell 369.60 points or 3.47 percent at 10296.90. Tata Motors crashed 10 percent post earnings.

Global Markets:-

  • Asian markets are lower today the Honk Kong Hang Seng is down 4.84%%, the Australian ASX200 fell by 3.11% and the Shanghai Composite is trading lower by 2.15%.
  • European markets finished broadly lower today with shares in France leading the region. The CAC 40 is down 1.48% while London’s FTSE 100 is off 1.46% and Germany’s DAX is lower by 0.76%.
  • S. stocks plunged in highly volatile trading on Monday, with both the S&P 500 and Dow Industrials indices slumping more than 4.0 percent, as the Dow notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year. The Dow Jones Industrial Average fell 1,175.21 points, or 4.6 percent, to 24,345.75, the S&P 500 lost 113.19 points, or 4.10 percent, to 2,648.94 and the Nasdaq Composite dropped 273.42 points, or 3.78 percent, to 6,967.53.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended up 0.4% overnight and was last trading 0.11% higher, as investors upped bets that the greenback will escape the rout across global equity markets.
  • S. services sector activity raced to a near 12-1/2-year high in January, buoyed by robust growth in new orders, the latest sign of strong momentum in the economy at the start of the year. The ISM said its non-manufacturing activity index jumped 3.9 points to 59.9, the highest reading since August 2005. A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of U.S. economic activity.