Financial Market Overview
26th December, 2018
- The Indian rupee rose against the dollar tracking a plunge in crude oil prices to multi-month lows and as local shares rebounded in the latter half of the session.
- The rupee settled at 70.07 to a dollar against 70.14 at the previous close on Dec. 24. The currency opened at 69.88 and briefly extended gains to 69.75, before falling to day’s low of 70.16. Other Asian currencies were mixed against the dollar. Indian financial markets were shut yesterday due to Christmas holiday.
- Rupee got a boost from crash in crude oil prices, month-end dollar demand kept the gains limited in local currency for the day. The volumes were muted as holiday mood continued. However the probability for rupee appreciating in coming days is more if oil sustains at current level.
- Bulls made a roaring comeback on a day that looked like a bearish day. A sharp recovery across sectors, particularly in the broader markets, helped the indices end sharply higher. The Nifty clocked 10,700 again and ended above that mark.
- The Sensex closed up 179.79 points or 0.51% at 35649.94, while the Nifty was up 66.40 points or 0.62% at 10729.90. The market breadth was negative as 1089 shares advanced, against a decline of 1441 shares, while 155 shares were unchanged.
- Airtel, Adani Ports, and Zee were the top gainers, while Sun Pharma and Yes Bank lost the most.
- European markets are closed.
- North and South American markets finished mixed as of the most recent closing prices. The Bovespa gained 0.50%, while the S&P 500 led the IPC lower. They fell 2.71% and 0.21% respectively.
- Wall Street stocks fell sharply in volatile trading on Friday, with the Nasdaq confirming it is in a bear market, as concerns of slowing economic growth led investors to flee stocks in high-valuation sectors such as technology and communication services. The Dow Jones Industrial Average fell 416.09 points, or 1.82 percent, to 22,443.51, the S&P 500 lost 50.8 points, or 2.06 percent, to 2,416.62 and the Nasdaq Composite dropped 195.41 points, or 2.99 percent, to 6,333.00.
- U.S. President Donald Trump’s Treasury secretary called top U.S. bankers on Sunday amid an ongoing rout on Wall Street and made plans to convene a group of officials known as the “Plunge Protection Team.
- The political uncertainty has only added to the air of risk aversion, punishing equities to the benefit of bonds. Ten-year Treasury yields were near their lowest since August at 2.789 percent having fallen over 40 basis points in just six weeks. The gap between two- and 10-year yields has shrunk to only 14 basis points, a flattening of the curve that has sometimes heralded economic turning points in the past.
- Regarding the risk posed to financial markets should Britain leave the European Union without a negotiated framework, Boujnah said Euronext took the risk seriously.