Oct 24 2018

Rupee Gain As Oil Price and Euro Fall

Financial Market Overview

24th October, 2018

Evening Coffee:-                                                                        

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee ended at an over three-week high of 73.15 to dollar, against 73.57 at previous close, as oil prices extended decline towards the $75-per-barrel mark, while a rebound in local shares boosted sentiment. Bonds also remained supported ahead of the Reserve Bank of India’s bond purchase worth up to 120 billion rupees under open market operations tomorrow.
  • The central bank has already bought bonds worth 740 billion rupees under OMO operations in this financial year. Indian government bonds jumped for a second session, with the benchmark note at a two-month high, as a plunge in the crude oil prices and stronger rupee boosted demand.

Indian Equities:-

  • Benchmarks ended a volatile day on a positive note, with the Nifty ending above 10,200-mark. The Sensex ended 186 points higher.
  • The Nifty Midcap index also ended a percent higher. The day began on a strong note, but indices gave up gains through the afternoon and turned negative. However, last hour saw renewed buying on the back of a fall in crude oil prices. Brent crude touched USD 75 per barrel, thereby boosting sentiment on Indian markets.
  • At the close of market hours, the Sensex was up 186.73 points or 0.55% at 34033.96, while the Nifty shut 78.00 points or 0.77% higher at 10224.80.

 Global Markets:-

  • European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.60% while France’s CAC 40 is off 1.15% and London’s FTSE 100 is lower by 0.59%.
  • Euro zone business growth lost far more momentum than expected as it entered the final quarter of 2018, dragged down by waning orders that put a big dent in confidence, a survey showed on Wednesday. October’s disappointing survey is likely to concern policymakers at the European Central Bank, who are expected to end their bond-buying program me in less than three months.
  • The euro fell and the euro zone’s government bond yields dropped on Wednesday after data showed business growth in the single currency area lost more momentum than expected, as trade tensions and worries over Italy overshadow the economy. Euro zone business growth decelerated faster than expected as the final quarter of 2018 began, dragged down by waning orders that dented confidence, according to a purchasing managers survey released on Wednesday.
  • The services PMI plummeted to a two-year low of 53.3 from September’s 54.7 In a further sign of a dimming outlook, the services employment index – a lagging indicator – fell to 54.7 from 55.5.Manufacturers suffered a similar fate with their PMI sinking to 52.1 from 53.2, missing a median prediction for 53.0, as factory orders contracted for the first time since late-2014. The sub-index fell to 49.8 from 51.5.