Nov 03 2017

Rupee marginally higher as U.S tax proposals weigh on Dollar

Financial Market Overview

03rd November, 2017

Morning Coffee:-                                                                                  



  • Indian rupee marginally higher against the dollar in early trade, as demand for the greenback damped amid disappointment over the tax bill proposed by Republicans in the U.S. House of Representatives yesterday; pair USDINR now at 64.56 against 64.6075 previous close.
  • Pair to tip in range between today 64.45-64.70.

Indian Equities:-

  • Equity benchmarks opened at fresh record high on last day of the week, backed by banks, metals and telecom stocks.
  • The 30-share BSE Sensex was up 88.97 points at 33,662.19 and the 50-share NSE Nifty rose 26.20 points to 10,450.

Global Markets:-

  • Asian markets are mixed today. The Hang Seng is up 0.27%, Australian ASX200 is up 0.49%. The Shanghai Composite fell 0.74% and Japanese stock market are closed today for a holiday.
  • S. stocks were mixed at the close on Thursday, as gains in the Financials, Industrials and Utilities sectors led shares higher while losses in the Telecoms, Consumer Goods and Basic Materials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average rose 0.35% to hit a new all time high, while the S&P 500 index climbed 0.02%, and the NASDAQ Composite index fell 0.02%.
  • European markets finished mixed as of the most recent closing prices on Thursday. The FTSE 100 gained 0.90%, while the DAX led the CAC 40 lower. They fell 0.18% and 0.07% respectively.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended 0.14% overnight after Republicans in the House of Representatives revealed a tax bill yesterday that would cost $1.51 trillion and called for cutting corporate tax rate to 20% from 35% currently. The proposal also included a 10% tax on high-profit foreign subsidiaries of U.S. companies to prevent entities from taking profits overseas.
  • The market showed little reaction to President Donald Trump’s announcement to appoint Fed Governor Jerome Powell as the new head of Federal Reserve, a choice largely anticipated. Powell has worked for five years now with current Chair Janet Yellen, whose term ends in February next year, and has shared her views regarding a cautious approach to interest rates amid weak inflation.
  • The pound sterling was last trading flat against the dollar at $1.3069, following a sharp 1.4% drop yesterday in reaction to the Bank of England’s decision to hike its benchmark Bank Rate to 0.50% against 0.25%, for the first time since 2007, even as it insisted further increases would be “very gradual”.