Dec 04 2017

Rupee lower on US tax bill progress

Financial Market Overview

04th December, 2017

Morning Coffee:-                                                                                  



  • Indian rupee opened lower at 64.55 as the dollar rebounded after the U.S. Senate approved a tax reforms bill over the weekend. Pair USDINR now at 64.52 against 64.46 previous close.
  • Data released Thursday showed Indian economy grew 6.3% on year in July-September, reversing a five-quarter slide and expanding at the fastest pace in three quarters, driven by higher output in the key manufacturing sector. The economy had grown by 5.7% in April-June and 7.5% in the corresponding quarter of the previous fiscal year.
  • Pair to tip in range between today 64.40-64.60.

Indian Equities:-

  • Equity benchmarks started off the week on a positive note, backed by Infosys that gained 2.5 percent after the appointment of new CEO and MD.
  • The 30-share BSE Sensex rose 89.51 points to 32,922.45 and the 50-share NSE Nifty gained 23.60 points at 10,145.40. About 980 shares advanced against 291 declining shares on the BSE.
  • Infosys, Indiabulls Housing, Tata Motors, Dr Reddy’s Labs, SBI, Aurobindo Pharma and ICICI Bank were early gainers while Tech Mahindra, Sun Pharma and Hero MotoCorp were early losers.

Global Markets:-

  • Asian markets are higher today . The Hang Seng is up 0.83% . The Shanghai Composite rose 0.12% and ASX200 gains 0.06%.
  • Wall Street fell on Friday, The Dow Jones Industrial Average fell 40.76 points, or 0.17 percent, to 24,231.59, the S&P 500 lost 5.36 points, or 0.20 percent, to 2,642.22 and the Nasdaq Composite dropped 26.39 points, or 0.38 percent, to 6,847.59.
  • European markets finished broadly lower on Friday with shares in Germany leading the region. The DAX is down 1.25% while France’s CAC 40 is off 1.04% and London’s FTSE 100 is lower by 0.36%.
  • Dollar index up 0.2% at 93.099, though greenback fell briefly on Friday after former national security adviser Michael Flynn pleaded guilty to lying to FBI about his contacts with Russia. U.S. Treasury yields also up, with 10-year benchmark Treasury yield rising about 5 basis points to 2.413% after Senate’s approval of tax bills.
  • US ISM manufacturing PMI for November cooled to 58.2 from 58.7 in October, missing expectations of a reading of 58.4, while construction spending for October rose 1.4%, well above economists’ forecast of 0.5%.
  • The Pound Sterling was last trading little changed against the greenback ahead of a scheduled meeting between British Prime Minister Theresa May, European Union Chief Executive Jean-Claude Juncker and his chief Brexit negotiator Michel Barnier later today. The meeting, if it leads to progress on three key EU conditions — a financial settlement, rights of expatriate citizens and the Irish border – could lead to trade talks among leaders at a summit on Dec. 14-15.