Mar 05 2018

Rupee higher as ruling BJP wins state elections

Financial Market Overview

05th March, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee edge higher, as the ruling Bharatiya Janata Party won assembly elections in the North-eastern states, and as U.S. President Donald Trump’s trade tariff threats weighed on the greenback. Pair now at 64.99 against 65.17 previous close.
  • Over the weekend, the Narendra Modi-led Bhartiya Janata Party along with its allies emerged victorious in the North-eastern states of Tripura and Nagaland and consolidated its base in the Meghalaya. The historic victory for BJP – it previously had no presence in any of the three states – sets the tone for the national elections scheduled for next year and expectations of political continuity would be a positive for Indian assets in the medium to long term.
  • Pair to tip in range between 64.85-65.10.

Indian Equities:-

  • The market extended opening losses despite BJP’s landslide victory in Tripura. Weak Asian cues weighed on India.
  • The 30-share BSE Sensex was down 262.34 points or 0.77 percent at 33,784.60 and the 50-share NSE Nifty fell 91.10 points or 0.87 percent to 10,367.30.

Global Markets:-

  • Asian Shares are lower today, the Hong Kong’s Hang Seng is down 1.30%, the Shanghai Composite is trading lower by 0.16% while the Australian ASX200 fell by 0.48%
  • European markets finished sharply lower on Friday with shares in France leading the region. The CAC 40 is down 2.39% while Germany’s DAX is off 2.27% and London’s FTSE 100 is lower by 1.47%.
  • The S&P 500 ended another turbulent week on an upbeat note Friday, but major indexes posted losses for the week as U.S. President Donald Trump’s threat to impose import tariffs on steel and aluminum rattled investors. The Dow Jones Industrial Average fell 70.92 points, or 0.29 percent, to 24,538.06, the S&P 500 gained 13.58 points, or 0.51 percent, to 2,691.25 and the Nasdaq Composite added 77.31 points, or 1.08 percent, to 7,257.87
  • Growth in China’s services sector softened slightly in February but remained robust, prompting companies to hire more workers for the 18th month in a row, a private business survey showed. The Caixin/Markit services purchasing managers’ index (PMI) fell to 54.2 in February from January’s 68-month high of 54.7, but was still above recent trends and well above the 50-mark that separates growth from contraction.
  • A key gauge of U.S. consumer confidence was revised higher in February, according to a survey released on Friday. The University of Michigan’s consumer sentiment index was revised up from a preliminary reading of 95.7 to 99.7. That was its second highest level since 2004. Economists had forecast a reading of 99.5.