Aug 30 2018

Rupee flat despite weaker dollar; rising crude a worry

Financial Market Overview

30th August, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee touched a record low of 70.81 per dollar. It has opened marginally lower at 70.63 per dollar versus previous close 70.59.On Wednesday, the rupee closed at a historic low of 70.59 after it plunged to all-time low of 70.65 on the back month-end dollar demand from importers and foreign capital outflows. after Brent crude rose past $77 per barrel, offsetting a further decline in the dollar index. The focus for the rupee remains on month-end dollar demand from corporates and on the Reserve Bank of India’s efforts to prevent the currency from rapidly declining.
  • We expect the pair to trade in the range between 70.50 to 70.90.

Indian Equities:-

  • The market has opened flat ahead of expiry of August futures & options contracts later today.
  • The 30-share BSE Sensex rose 1.83 points to 38,724.76 while the 50-share NSE Nifty fell 1.40 points to 11,690.50.
  • Foreign investors sold net $61.3 million of India debt on August 29. Month-to-date, overseas investors have bought $853.20 million worth of debt.
  • Aditya Birla Group and U.S. investment firm Varde Partners announced an exclusive joint venture partnership to invest as much as $1 billion or about 70 billion rupees in stressed assets in India.

Global Markets:-

  • Asian markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.37% while the Hang Seng is down 0.31%. And The Nikkei 225 is up 0.16%The Australian’s ASX200 is little positive today by 7.5 points and 0.10% up.
  • European markets finished mixed as of the most recent closing prices. The CAC 40 gained 0.30% and the DAX rose 0.27%. The FTSE 100 lost 0.71%
  • Wall Street extended its rally on Wednesday, with the S&P 500 and the Nasdaq hitting record highs for the fourth straight session as technology companies pushed indexes higher and promising trade negotiations stoked investor sentiment.
  • The Dow Jones Industrial Average rose 60.89 points, or 0.23 percent, to 26,124.91, the S&P 500 gained 16.52 points, or 0.57 percent, to 2,914.04 and the Nasdaq Composite added 79.65 points, or 0.99 percent, to 8,109.69.
  • U.S. economic growth was a bit stronger than initially thought in the second quarter, notching its best performance in nearly four years and putting the economy on track to hit the Trump administration’s goal of 3 percent annual growth.
  • Gross domestic product increased at a 4.2 percent annualized rate, the Commerce Department said on Wednesday in its second estimate of GDP growth for the April-June quarter. That was slightly up from the 4.1 percent pace of expansion reported in July and was the fastest rate since the third quarter of 2014.The economy grew at a 2.2 percent pace in the January-March period.
  • The upbeat U.S. August consumer confidence data and higher long-term Treasury yields added to the pressure on regional currencies.Pending Home Sales Index, based on contracts signed last month, decreased 0.7 percent to 106.2 in July. Economists polled by Reuters expected an increase of 0.3 percent.