Jan 15 2018

Rupee higher on weak Dollar and upbeat India’s industrial production

Financial Market Overview

15th January, 2018

Morning Coffee:-                                                                                  



  • The Indian rupee is trading higher against the dollar in opening session, in-line with most Asian currencies, tracking broad weakness in the dollar and as local industrial output rose at the fastest pace in over two years. Pair USDINR now at 63.39 against 63.63 previous close.
  • India’s industrial output rose 8.4% in November from a year earlier, the fastest pace of expansion since October 2015, and sharply higher than October’s revised expansion of 2%, government data showed on Jan. 12. The print also topped a 4.4% median estimate in a  poll of economists. Separately, India’s key retail inflation rate accelerated 5.21% in December from a year earlier, the fastest pace of annual expansion since July last year, and against November’s 4.88%.
  • Pair to tip in range between 63.30-63.55 today.

Indian Equities:-

  • Equities on Monday began the week on a strong note, opening at record highs, while the Nifty began above 10,700 for the first time.
  • The Sensex is up 176.23 points or 0.51% at 34768.62, while the Nifty is up 46.30 points or 0.43% at 10727.60. The market breadth is positive as 840 shares advanced, against a decline of 160 shares, while 243 shares are unchanged.
  • HDFC, ICICI Bank and Tata Motors gained the most on both indices, while Infosys, M&M and Bharti Infratel were the top losers.

Global Markets:-

  • Asian markets are mixed today . The Hang Seng is up 0.57% . The ASX200 rises 0.22% and Shanghai Composite is trading lower by 0.05%.
  • Wall Street continued its rally on Friday with record closing highs. The Dow Jones Industrial Average rose 228.46 points, or 0.89 percent, to 25,803.19, the S&P 500 gained 18.68 points, or 0.67 percent, to 2,786.24 and the Nasdaq Composite added 49.29 points, or 0.68 percent, to 7,261.06.
  • European markets finished higher on Friday with shares in France leading the region. The CAC 40 is up 0.52% while Germany’s DAX is up 0.32% and London’s FTSE 100 is up 0.20%.
  • The dollar index, which measures the greenback against a basket of six major rivals, fell to a three-year low of 90.90 intraday on Jan. 12, before ending at 0.96% lower at 90.97, tracking gains in the euro amid expectation that the European Central Bank will soon tighten its monetary policy.
  • The single currency advanced nearly 2% since Jan. 11, after the minutes of the European Central Bank’s December meeting showed the authority could change its guidance in 2018 if the euro-zone economy continued to expand, implying that policymakers may soon start to trim its 2.55 trillion-euro bond purchase scheme.
  • Data released on Jan. 12 showed, U.S. December retail sales rose 0.4%, in line with economists’ expectation in poll. Data for November was revised at 0.9% rise.