Oct 16 2017

Rupee higher on narrow trade gap and weak U.S inflation

Financial Market Overview

16th October, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee edge higher against the dollar in early trade, as trade deficit narrowed at home, while slower-than-expected U.S. inflation data weighed on the greenback; pair USDINR now at 64.71 against 64.93 previous close.
  • India’s merchandise exports rose 20.1% to $28.61 billion in September from the previous month, its second consecutive monthly rise, while imports also rose 6% to $37.60 billion in September from $35.46 billion in August.  Trade deficit narrowed to $8.98 billion in September, from $11.64 billion in the previous month. The gap was at $9.07 billion in the same month a year earlier.
  • Pair to tip in range between today 64.60-64.90.

Indian Equities:-

  • Equity benchmarks started off the Diwali week at fresh record high on Monday, with the Nifty hitting 10,200 level backed by Reliance Industries and banks stocks.
  • The 30-share BSE Sensex was up 214.70 points at 32,647.39 and the 50-share NSE Nifty rose 61.10 points to 10,228.60. About five shares advanced for every share falling on the BSE.
  • ICICI Bank, Reliance Industries, Ambuja Cements, Hero Motocorp, Sun Pharma, IOC, Cipla, BPCL and HPCL were early gainers while IndusInd Bank was down.

Global Markets:-

  • Asian markets are mixed today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.63% while the Hang Seng is up 0.84% and Australian ASX200 is up by 0.4%. The Shanghai Composite is trading lower by 0.11%.
  • S. stocks were higher at the close on Friday, as gains in the Basic Materials, Technology and Consumer Services sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average rose 0.13% to hit a new all time high, while the S&P 500 index climbed 0.09%, and the NASDAQ Composite index gained 0.22%.
  • European markets finished mixed as of the most recent closing prices on Friday. The DAX gained 0.07%, while the FTSE 100 led the CAC 40 lower. They fell 0.28% and 0.17% respectively.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended little changed on Oct. 13, after falling as much as 0.3%, after data showed U.S. consumer prices rose less than expected in September, weighing on expectation of another rate hike later this year. The Labor Department said on Oct. 13, its Consumer Price Index jumped 0.5% last month after advancing 0.4% in August. Economists polled had forecast the CPI at 0.6% in September.