Nov 04 2017

Rupee logs biggest weekly gain in over 2 months on inflows

 Weekly Synopsis

 

Date:- 14th October 2017

 

Markets from 09th October 2017 to 13th October 2017:-

 

Indian Rupee:-

 

  • The Indian rupee marked its biggest weekly rise against the dollar in over two months, helped by capital inflows and amid broad greenback weakness as the U.S. tax cut proposals run into opposition and the Federal Reserve seems to be less sure about the pace of price gains in the world’s largest economy. On a weekly basis, the rupee rose 0.7%, its best weekly gain since the week ended Aug. 4. The rupee closes on Friday at 64.9275 against the previous weekly close of 65.3750 on October 06th, 2017 to a greenback. It trades in a weekly range between 65.4125 to 64.8675 against the greenback.

 

  • India’s foreign exchange reserves fell for the third consecutive week to $398.79 billion as of Oct. 6, from $399.66 billion in the previous week, the central bank said on Friday.  The decrease was driven by a fall in foreign currency assets to $373.80 billion from $375.19 billion in the previous week, according to the data from the Reserve Bank of India. Foreign exchange reserves had increased to a record high of $402.51 billion as of week ending Sep.15.

 

  • India’s services exports rose to $13.70 billion in August from $13.18 billion in the previous month, data from the central bank showed yesterday. Services imports also rose to $8.66 billion in August, compared with $7.33 billion in July, the Reserve Bank of India said.

 

  • India’s retail inflation edged up 3.28% in September from a year earlier, lagging expectations, as prices of food items increased at a slower pace, government data showed on Thursday evening after market hours.  A survey of economists had expected September inflation rate to quicken to 3.6% from August’s initial estimate of 3.36%, which however was revised down to 3.28% today.

 

  • India’s industrial output in August grew 4.3% from a year earlier, the quickest since November last year and gaining pace from the previous month, as production in mining and electricity sectors rose, government data showed on 13th October 2017.  The reading topped July’s downwardly revised 0.9% expansion, and exceeded a 2.4% median estimate of annual rate of expansion in a poll of economists.

 

Global Market:-

 

  • The dollar fell against a basket of major currencies on Friday after inflation data undershot expectations threatening the outlook for a December rate increase. The S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.14% to 92.81. The Labor Department said on Friday its Consumer Price Indexrose 0.5% last month after advancing 0.4% in August. That missed economists forecast of a 0.6% rise. Retail sales rose 1.6%, their biggest gain since 2015, the Commerce Department said on Friday. Economists had expected a 1.7% increase. GBP/USD rose 0.29% to $1.3302. EUR/USD gained 0.08% to $1.1840 while USD/JPY fell 0.34% to Y111.90.

 

  • The U.S. Department of Labor reported on Thursday that initial jobless claims fell more than expected to 243,000last week. A separate report showed that producer prices increased 4% in September, in line with expectations. Core producer prices, which exclude food and energy also rose 0.4%, beating expectations for a 0.2% uptick. The data came a day after the minutes of the Federal Reserve’s September policy meeting showed that policymakers remain divided on inflation. Several policymakers believe additional tightening will depend on upcoming inflation data. However, most Fed members said they feel another rate increase this year “was likely to be warranted,” the report showed.

 

  • On Tuesday U.S. President Donald Trump’s twitter clash with a fellow Republican Senator over the government’s tax overhaul plans.

 

  • Sterling was hit after EU chief negotiator Michel Barnier announced on Thursday that Brexit talks were at an “impasse.” Barnier added that the U.K. had told the EU that it wasn’t ready to specify how much the nation should pay in exit fees. British PM Theresa May had told parliament on Monday that there would be a two-year transition periodfollowing Britain’s exit from the European Union. May also said that preparations were underway in the case Britain and the EU were unable to reach a deal on their future trade relationship.

 

  • S. stocks rose on Friday following upbeat economic data and gains in technology shares, pushing the Dow and the S&P 500 to a fifth straight week of gains. The Dow Jones Industrial Average .DJI rose 30.71 points, or 0.13 percent, to end at 22,871.72, and the S&P 500 gained 2.24 points, or 0.09 percent, to 2,553.17. The Nasdaq Composite added 14.29 points, or 0.22 percent, to 6,605.80, a record closing high. For the week, the Dow was up 0.4 percent and the S&P 500 was up 0.2 percent. The Nasdaq rose 0.2 percent for the week, registering a third week of gains.

 

  • 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.

 

Local Market:-

 

  • The broader NSE index touched a fresh high on Friday, after data showed inflation unexpectedly held steady in September, while Bharti Airtel surged on its deal to buy the Tata conglomerate’s consumer mobile business.

 

  • The NSE index ended up 0.7 percent at 10,167.45, its highest close ever, after having hit a record high of 10,191.90 intraday. The index was up 1.81 percent for the week.

 

  • The benchmark BSE index ended 0.78 percent higher at 32,432.69. It rose 1.94 percent for the week, its biggest such gain since the week ended July 14. Bharti Airtel jumped 7.7 percent.