Rupee Gains For 2nd Day As Risk-Off Abates, Oil Retreats

Rupee Gains For 2nd Day As Risk-Off Abates, Oil Retreats

15 May 2019 05:34 PM

Financial Market Overview

15th May, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee rose for a second session against the dollar, as global risk-off abated following U.S. President Donald Trump’s optimistic comments on a trade deal with China and lower crude oil prices.
  • The rupee ended at 70.34 to a dollar, against 70.44 at previous close. It opened at 70.34 and hit an intraday high of 70.18 before erasing most of its gains to decline to 70.39 in late trade. Most Asian currencies ended lower against the dollar on weak Chinese data.
  • Rupee was the best performing emerging currency in the morning, as fear of trade war reduced aiding demand for risk assets. However, investors are still reluctant to purchase local assets in run-up to election results and amid possibility of trade talks taking a wrong turn.

Indian Equities

  • The benchmark indices ended lower in the volatile trading on May 15 with Nifty closed below 11,200 mark.
  • At close, the Sensex was down 203.65 points at 37,114.88, while Nifty was down 65 points at 11,157. About 982 shares have advanced, 1544 shares declined, and 176 shares are unchanged. Yes Bank, Tata Motors, Zee Entertainment, JSW Steel and Gail were the top losers on the Nifty, while gainers were Bajaj Finance, Eicher Motors, UPL, IOC and Indiabulls Housing. Among the sectors, metal index slipped 2 percent followed by auto, infra, pharma, FMCG and bank.

Global Markets

  • European markets are lower today with shares in Germany off the most. The DAX is down 0.51% while France's CAC 40 is off 0.40% and London's FTSE 100 is lower by 0.04%.
  • U.S. stocks on Tuesday reclaimed some of the ground lost in the prior day's steep sell-off, with tariff-sensitive technology stocks leading the S&P 500 and the Nasdaq higher as investors were heartened by a tonal shift in U.S.-China trade rhetoric. The Dow Jones Industrial Average rose 207.06 points, or 0.82%, to 25,532.05, the S&P 500 gained 22.54 points, or 0.80%, to 2,834.41, and the Nasdaq Composite added 87.47 points, or 1.14%, to 7,734.49.
  • The euro zone economy accelerated quarter-on-quarter in the first three months of the year, the EU's statistics office confirmed on Wednesday, thanks to a rebound in the biggest economy Germany and the end of a technical recession in Italy. Eurostat said the economy of the 19 countries sharing the euro expanded by 0.4% quarter-on-quarter in the January-March period, the same as its initial estimate, after 0.2% growth in the last three months of 2018.
  • China reported surprisingly weaker growth in retail sales and industrial output for April on Wednesday, adding pressure on Beijing to roll out more stimulus as the trade war with the United States escalates. Clothing sales fell for the first time since 2009, suggesting Chinese consumers were growing more worried about the economy even before a U.S. tariff hike on Friday heightened stress on the country's struggling exporters. Overall retail sales in April rose 7.2% from a year earlier, the slowest pace since May 2003, data from the National Bureau of Statistics (NBS) showed. That undershot March's 8.7% and forecasts of 8.6%.
  • The dollar index was trading flat after posting its best day in two weeks in the previous session.