Nov 10 2017

Rupee logs worst week since September on crude oil spike

Financial Market Overview

10th November, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee posted its biggest weekly decline against the dollar since September, as global crude oil prices hovered near multi-year highs, denting appetite for domestic assets.
  • The rupee ended at 65.16 to a dollar, its lowest closing level since Oct. 10, marking its first loss against the greenback in three sessions. It had closed at 64.94 yesterday. On a weekly basis, the currency fell 0.95%, its biggest weekly decline since the week ended Sep. 22. Meanwhile, most Asian currencies ended higher against the greenback.
  • India’s foreign exchange reserves fell to $398.74 billion as of Nov 3, compared with $398.76 billion a week earlier, the Reserve Bank of India said on today.
  • India’s GST Council, the apex body for the goods and services tax, today decided to leave only 50 items in the highest 28% tax slab after removing most items to lower rates. The decision will have a revenue implication of 200 billion rupees ($3.07 billion) in this fiscal year, Sushil Kumar Modi, deputy chief minister of Bihar state and a GST Council member told television channels.

Indian Equities:-

  • Indian shares ended higher on Friday, as banks gained after State Bank of India said it swung to a second-quarter profit from a loss a year ago, while Larsen & Toubro Ltd gained after its unit won orders.
  • However, gains were capped as concerns around oil prices dented refiners’ stocks such as Reliance Industries Ltd, while Tata Motors Ltd fell after it said its British unit faced intensifying competition.
  • The broader NSE index closed 0.12 percent higher at 10,321.75, while the benchmark BSE index ended up 0.19 percent at 33,314.56.
  • The Nifty index ended 1.3 percent lower this week, while the BSE index lost 1.1 percent – both posting their first weekly fall in three as shares were hit by consolidation and concerns about rising crude prices.

Global Markets:-

  • European markets are mixed today with shares in London off the most. The FTSE 100 is down 0.30% while France’s CAC 40 is off 0.23% and Germany’s DAX is higher by 0.05%.
  • Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.14%, while the Nikkei 225 led the Hang Seng lower. They fell 0.82% and 0.05% respectively.
  • The dollar index, which measures the greenback against a basket of six major rivals fell 0.4% yesterday, after U.S. Senate Republicans unveiled the tax bill that indicated the corporate tax cuts may be delayed until 2019, later than House’s proposed schedule of 2018. The index was last trading up 0.03% at 94.52.