Aug 17 2017

Rupee logs best week in 3 months amid inflows

 Weekly Synopsis


Date:- 04th November 2017


Markets from 30th October 2017 to 03rd November 2017:-


Indian Rupee:-


  • Indian rupee posted its best weekly rise in three months against the dollar, as foreign investors piled into equities and bonds. Speculation over the next U.S. Federal Reserve chief had also kept the greenback subdued during the week. On a weekly basis, the currency rose 0.77%, its biggest weekly gain since the week ended Aug. 4. The rupee closes on Friday at 64.5450 against the previous weekly close of 65.0450 on October 27th, 2017 to a greenback. It trades in a weekly range between 64.95 to 64.47 against the greenback.


  • India’s foreign exchange reserves fell for a second week to $398.76 billion as of Oct. 27, from $399.92 billion in the previous week, the central bank said on Friday. The decrease was driven by a fall in foreign currency assets to $373.77 billion from $374.91 billion in the previous week, according to data from the Reserve Bank of India. Foreign exchange reserves had last hit a record high of $402.51 billion as of week ending Sep.15.


  • India’s dominant services industry activity expanded at its fastest pace in four months in October as demand continued to strengthen despite accelerating price pressures, a business survey showed yesterday. The Nikkei/IHS Markit Services Purchasing Managers’ Index rose to 51.7 last month – its highest since June – from 50.7 in September.


Global Market:-


  • The dollar strengthened on Friday, buoyed by a round of U.S. economic data highlighted by the monthly payrolls report. ISM nonmanufacturing data for October showed an uptick to 60.1, beating expectations of 58.5. This represents the highest reading for the service sector index since 2005. The U.S. economy added 261,000 jobs in October, the Department of Labor said Friday, that missed economists estimates for 310,000 new jobs. The jobless rate remained steady at 4.2% while average hourly earnings was sluggish with growth roughly flat for the month.


  • The pound fell sharply on Thursday after the Bank of England raised interest rates for the first time in almost a decade, but said that any further hikes would be at a gradual pace and to a limited extent. The BoE voted to raise rates to 0.5% from 0.25%, reversing the rate cut of August 2016, when it eased monetary policy to help cushion Britain’s economy in the aftermath of the Brexit vote. The monetary policy committee was split seven to two, with deputy governors Sir Jon Cunliffe and Sir Dave Ramsden both voting to leave borrowing costs unchanged.


  • The data showed yesterday purchasing managers’ index (PMI) compiled by IHS Markit/CIPS for U.K jumped to 55.6 in October from 53.6 in September, its highest level since April and its biggest one-month rise since August 2016.


  • The Dow Jones Industrial Average rose 22.96 points, or 0.1 percent, to 23,539.22, the S&P 500 gained 7.99 points, or 0.31 percent, to 2,587.84 and the Nasdaq Composite added 49.49 points, or 0.74 percent, to 6,764.44. For the week, the Dow rose 0.45 percent, the S&P gained 0.26 percent and the Nasdaq climbed 0.94 percent. The Dow and S&P have risen for eight straight weeks and the Nasdaq has climbed six weeks in a row.


  • European shares closed higher on firmer tech stocks and carmakers, though gains were limited as earnings weighed on shares of French bank Societe Generale and Dutch telecoms company Altice. The pan-European FTSEurofirst 300 index rose 0.27 percent and was up 0.7 percent for the week. MSCI’s gauge of stocks across the globe gained 0.08 percent. The DAX is up 0.28% while France’s CAC 40 is up 0.14% and London’s FTSE 100 is up 0.07%.


  • Oil prices rose on Friday, with U.S. crude touching a two-year high, strengthening after U.S. rig data suggested drilling in the United States would throttle back. The latest rig data supported the market’s view that a global supply glut is receding. Throughout the week, prices have been bolstered by rising global demand data and expectations that OPEC and other producing countries will extend a deal to cut output.


Local Market:-


  • Indian shares rose to record closing highs on Friday, with the benchmark BSE index .BSESN posting its fifth consecutive weekly gain, as lenders and blue chips extended recent gains on hopes about an improving economy and better corporate earnings.


  • The BSE index closed up 0.33 percent at 33,685.56, posting a 1.6 percent weekly gain. The broader NSE index ended 0.28 percent higher at 10,452.50, rising 1.3 percent for the week to mark its fourth weekly gain in five.