Jun 10 2017

Rupee gained 0.3 pct on a weekly basis

 Weekly Synopsis

 

Date:- 10th June 2017

 

Markets from 05th June 2017 to 09th June 2017:-

 

Indian Rupee:-

 

  • On a weekly basis, the rupee rose 0.3% against the dollar. The rupee closes on Friday at 64.24 against the previous weekly close of 64.4350 on June 02nd, 2017 to a greenback. It trades in a weekly range between 64.5125 to 64.24 against the greenback.

 

  • India’s foreign exchange reserves surged to a fresh record high of $381.17 billion as of Jun. 2 from $378.76 billion in the previous week, the central bank said on Friday. The rise was driven by an increase in foreign currency assets to $357.29 billion from $354.54 billion the previous week, according to data from the Reserve Bank of India.

 

Global Market:-

 

  • The British pound fell to a seven-week low on Friday after a shock election result cast doubt on Britain’s talks to leave the European Union. The pound fell as much as 2.5 percent to $1.2635 in early European trade, its lowest level since May called the election on April 18, before recovering some ground to the Friday closing level at 1.2740.

 

  • British Prime Minister Theresa May said she would lead a minority government backed by a small Northern Irish party after she lost an election gamble days before the start of talks on Britain’s departure from the European Union. May called the snap election confident her Conservative Party would increase its majority and strengthen her hand in the Brexit talks. Instead, Thursday’s vote damaged her authority and made her negotiating position more vulnerable to criticism. With all 650 seats declared, the Conservatives had won 318 seats, the Labour Party had 262 seats, followed by the pro-independence Scottish National Party on 34.

 

  • May was driven from her official Downing Street residence to Buckingham Palace to ask Queen Elizabeth for permission to form a government – a formality under the British system.

 

  • On Thursday after the European Central Bank downgraded its inflation forecast for the next three years, but also tweaked its guidance on rates, dropping a pledge to cut rates again if needed.

 

  • The ECB cuts its forecast for inflation this year to 1.5%, down from 1.7% in March. The bank also downgraded its forecasts for 2018 and 2019 to 1.3% and 1.6% respectively. ECB chief Mario Draghi said the cuts were mainly due to lower oil prices. The central bank raised its growth forecasts for the next few years, saying it now expects gross domestic product to rise by 1.9% this year, up from 1.8% expected back in March. The euro was down 0.16 percent to $1.1194 against the dollar.

 

  • The dollar rose to a 10-day high against a basket of currencies. The dollar index, which tracks the greenback against six major rivals, was up 0.36 percent at 97.269.

 

  • S. stocks were mixed after the close on Friday, as gains in the Oil & Gas, Financials and Basic Materials sectors led shares higher while losses in the Technology, Consumer Services and Consumer Goods sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average added 0.42% to hit a new all time high, while the S&P 500 index fell 0.08%, and the NASDAQ Composite index fell 1.80%.

 

  • European shares closed higher, erasing early choppiness. Britain’s FTSE 100 index .FTSE rose 1 percent, and the pan-regional FTSEurofirst 300 index of leading European shares rose 0.37 percent to 1,534.39. Germany’s DAX is up 0.80% and France’s CAC 40 ended higher by 0.67%.

 

Local Market:-

 

  • Indian shares edged up on Friday, rebounding from losses earlier in the session as European shares showed a muted reaction to the U.K. elections that resulted in a hung parliament, but indexes still posted their first weekly fall in five.

 

  • The broader NSE index ended 0.22 percent higher at 9,668.25, falling nearly 0.15 percent for the week. The benchmark BSE index closed up 0.16 percent at 31,262.06, ending flat for the week.

 

  • Infosys Ltd ended down 0.8 percent, after falling as much as 3.5 percent earlier, despite the company denying a Times of India report that said the IT bellwether’s promoters were looking to sell their entire stake.