Money Changing
Dec 06 2017

Rupee lower as domestic equities extend losses; RBI monetary policy in focus

Financial Market Overview

06th December, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens lower at 64.45 amid further weakness in domestic equity markets. Pair USDINR now at 64.42 against 64.38 previous close.
  • Focus on MPC interest rate decision due at 2.30 pm; panel expected to maintain status quo on rates amid continued concerns over inflation.
  • Pair to tip in range between today 64.30-64.60.

Indian Equities:-

  • Equity benchmarks extended losses in opening on Wednesday, with the Nifty falling below 10,100 level, dragged by banking and financials as investors maintained cautious stance ahead of RBI policy decision.
  • The 30-share BSE Sensex was down 77.36 points at 32,725.08 and the 50-share NSE Nifty fell 31.90 points to 10,086.40. About 692 shares declined against 451 advancing shares on the BSE.
  • Eicher Motors, Hindalco Industries, Bajaj Finance, Yes Bank, Indiabulls Housing, HDFC Bank, ICICI Bank, HUL, PNB, Bank of Baroda and Coal India were early losers while Infosys, Tech Mahindra, Cipla, IndusInd Bank and Dr Reddy’s Labs were gainers.

Global Markets:-

  • Asian markets are lower today . The Hang Seng is down 1.14% . The Shanghai Composite off 0.63% and ASX200 is trading off by 0.34%.
  • Wall Street pulled back on Tuesday as a technology stock rebound lost steam and enthusiasm from a tax-cut proposal waned, while copper prices fell steeply to their lowest point in two months. The Dow Jones Industrial Average fell 109.41 points, or 0.45 percent, to 24,180.64, the S&P 500 lost 9.87 points, or 0.37 percent, to 2,629.57 and the Nasdaq Composite  dropped 13.15 points, or 0.19 percent, to 6,762.21.
  • European markets finished lower yesterday with shares in France leading the region. The CAC 40 is down 0.26% while London’s FTSE 100 is off 0.16% and Germany’s DAX is lower by 0.08%.
  • Dollar index edges lower by 0.1% after US tax optimism lifts dollar in previous two-sessions. Progress on US budget talks eyed; US government funding set to expire this Friday.
  • The pound sterling came under pressure after Sky News reported of a failed plot to assassinate the UK Prime Minister Theresa May.  Meanwhile, May failed to close a deal that could open talks on post-Brexit free trade with the European Union after a tentative pact with Dublin to keep European Union rules in Northern Ireland angered allies in Belfast, media reports said.