Mar 16 2018

Rupee little changed as India’s trade data offsets Dollar strength

Financial Market Overview

16th March, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee little changed as narrowing of India’s trade deficit helps balance broad dollar gains. Pair USDINR now at 64.92 against 64.93 previous close.
  • Data released after market hours yesterday showed that India’s trade deficit narrowed from a near five-year high of $16.3 billion in January to $12 billion last month. India’s merchandise exports rose 4.48% on year, while imports increased 10.4%. On a month-on-month basis, exports were up 6%, while imports declined by 7%.
  • Pair to tip in range between 64.80-65.00.

Indian Equities:-

  • Benchmark indices started off last day of the week on a negative note amid sluggish global cues and trade war concerns.
  • The 30-share BSE Sensex was down 123.61 points at 33,561.93 and the 50-share NSE Nifty fell 33.10 points to 10,327.10.

Global Markets:-

  • Asian markets are mixed today. The Hong Kong’s Hang Seng is down 0.23%, Shanghai Composite fell by 0.04% while the Australian ASX200 is trading higher by 0.52%.
  • European markets finished higher today with shares in Germany leading the region. The DAX is up 0.88% while France’s CAC 40 is up 0.65% and London’s FTSE 100 is up 0.10%.
  • The S&P 500 ended slightly lower on Thursday in choppy trade as strong jobs and manufacturing data was balanced by a report that U.S. Special Counsel Robert Mueller had issued a subpoena for documents related to U.S. President Donald Trump’s businesses. The Dow Jones Industrial Average rose 115.61 points, or 0.47 percent, to 24,873.73, the S&P 500 lost 2.15 points, or 0.08 percent, to 2,747.33 and the Nasdaq Composite dropped 15.07 points, or 0.2 percent, to 7,481.74.
  • The dollar index rose by 0.5% yesterday as investors remain focused on Fed’s meeting on March 20-21. While a 25 basis points rate hike is a near certainty, what is uncertain is whether the authority would tweak its projections for interest rates for the rest of 2018. Meanwhile, the three-month U.S. London interbank rate continued to rise ahead of the Fed decision, reaching levels last seen towards the end of 2008.