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Jan 02 2018

Rupee little changed as surge in Oil prices offsets Dollar weakness

Financial Market Overview

02nd January, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee almost flat as rising crude prices offset overall dollar weakness. Pair USDINR now at 63.71 against 63.68 previous close.
  • India’s infrastructure output rose 6.8% on year in November, the fastest pace of growth since October 2016 and higher than last month’s annual growth print of 5%, data showed yesterday.
  • Pair to tip in range between 63.60-63.80 today.

Indian Equities:-

  • Equity benchmarks rebounded in opening on Tuesday, with the Sensex rising more than 100 points, backed by pharma, metals and technology stocks.
  • The 30-share BSE Sensex was up 147.65 points at 33,960.40 and the 50-share NSE Nifty gained 55.60 points at 10,491.10. About 1,057 shares advanced against 270 declining shares on the BSE.
  • Mahindra & Mahindra, Dr Reddy’s Labs, Cipla, Sun Pharma, GAIL, Tata Steel, Coal India, TCS, HCL Technologies and Infosys were early gainers. SBI and Eicher Motors were early losers.

Global Markets:-

  • Asian markets are mixed today . The Hang Seng is up 1.71% . The Shanghai Composite rose 1.08% and ASX200 is trading down  by 0.41%.
  • The Stock Market in US. were closed yesterday on account of New Year’s day, but on Friday the Dow Jones Industrial Average fell 118.29 points, or 0.48 percent, to 24,719.22, the S&P 500  lost 13.93 points, or 0.52 percent, to 2,673.61, and the Nasdaq Composite dropped 46.77 points, or 0.67 percent, to 6,903.39.
  • European markets were closed yesterday on account of New Year’s day. On Friday the markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.85%, while the CAC 40 led the DAX lower. They fell 0.50% and 0.48% respectively.
  • Data today showed China’s manufacturing sector unexpectedly rose to a four-month high of 51.5 in December, from 50.8 in November, and beating economists’ expectations of 50.6 in a Reuters poll. The 50-mark divides expansion from contraction. However, the Caixin survey showed business confidence in the 12-month outlook remained weak in Asia’s largest economy.
  • Crude oil advances 0.4% to $67.14, fresh two-and-year half year highs.
  • The dollar index, which measures the greenback against a basket of six major rivals, was last trading up 0.07%. The index ended half a percent on Dec. 29, closing near the day’s low of 92.12 and also at the lowest level since September, as investors continued to question the U.S. economy’s ability to pick up following the recent tax reforms.
  • Traders now await the Federal Reserve’s December meeting minutes, due tomorrow. The U.S. employment report for December is also expected this week.