Jul 27 2018

Rupee marked its 2nd weekly rise in three weeks

Weekly Synopsis

27th July, 2018

Markets from 23rd July to 27th July 2018:-

Rupee:-

  • Indian rupee posted a second weekly rise in three weeks against the dollar, helped by likely initial public offering-related inflows and record gains in local shares. On a weekly basis, the rupee ended 0.3% higher against the dollar. The rupee closes on Friday at 68.65 against the previous weekly close of 68.84 on July 20th, 2018 to a greenback. It trades in a weekly range between 69.0825 to 68.53 against the greenback.
  • The initial public offering of HDFC Asset Management Co Ltd., which opened for subscription on Jul. 25 and closes today, was subscribed nearly 83 times. The nation’s second-largest mutual fund company by assets plans to raise about 28 billion rupees via this IPO and had raised 7.32 billion rupees from 61 anchor investors on Jul. 24.
  • India’s foreign exchange reserves fell for a fifth consecutive week to $405.08 billion as of the week ended Jul. 13, from $405.81 billion in the previous week, the central bank said yesterday. The decrease was due to a decline in foreign currency assets that fell to $380.00 billion from $380.79 billion in the previous week, the data showed.

Indian Equities:-

  • Indian shares jumped to record closing highs on Friday, driven by gains in heavyweight ITC Ltd on the back of strong quarterly results, while banks extended rally after lenders lined up to enrol for a scheme for faster bad-loan resolution.
  • The benchmark BSE index closed up 0.95 percent at 37,336.85 after hitting a record high for a fourth straight session. The broader NSE index ended 0.99 percent higher at 11,278.35 after hitting an all-time high of 11,283.40. For the week, the NSE index gained 2.44 percent, its biggest gain since the week ending March 17, 2017.
  • The Nifty Bank index climbed to its highest close at 27,634.40 while the public sector bank index gained 10.4 percent in the week.
  • Reliance Industries Ltd closed 1.73 percent higher while ICICI Bank ended 2.64 percent firmer ahead of quarterly results later in the day.

Global Markets:-

  • The dollar rose on Friday to its highest level in five days. U.S. economic growth accelerated in the second quarter, matching forecasts and underlining the case for the Federal Reserve to proceed with plans to gradually increase interest rates. In a report, the Bureau of Economic Analysis said that GDP registered a seasonally-adjusted annual rate of 4.1% growth in the three month period from April to June, nearly double the 2.2% expansion registered in the first quarter of 2018 and its fastest rate of growth since the third quarter of 2014. The reading was in line with consensus.
  • US. President Donald Trump has expressed displeasure over the dollar’s strength, ignoring a custom that U.S. leaders avoid openly interfering in financial markets. But the currency on Friday edged up towards a one-year peak scaled last week, gaining 0.2 against a basket of its peers to reach 94.910, a five-day high.
  • The euro was last seen at 1.1626 down 0.2 percent. The single currency had sunk more than 0.7 percent on Thursday after the ECB said it would end its 2.6 trillion euro stimulus programme this year and keep rates at a record low level through the summer of 2019.
  • China’s yuan was heading on Friday for its longest weekly losing streak since November 2015.The yuan has been under sustained pressure since U.S. President Donald Trump threatened to impose tariffs on all imports from China.
  • The pound was down 0.1 percent at $1.3094. It had dropped 0.6 percent overnight as a stronger dollar and growing uncertainty over Brexit negotiations offset the positive impact of bets on a Bank of England interest rate rise next week.
  • The number of Americans filing for unemployment benefits rose from a more than 48-1/2-year low last week, but continued to point to a tightening labour market. Initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 217,000 for the week ended July 21, the Labour Department said on Thursday.
  • The euro zone’s economy lost momentum again at the start of the third quarter after a brief rebound in June, according to survey data released on Tuesday. Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors, registered a reading of 54.3 this month, down from 54.9 in June.
  • Euro zone consumer confidence was unchanged in July from June, indicating economic growth may be stabilizing going into the third quarter, figures released on Monday showed. The European Commission said a flash estimate showed euro zone consumer morale was unchanged at -0.6 points in July, with the June figure being revised down to -0.6 from the -0.5 previously reported.
  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.52% while Germany’s DAX is up 0.49% and France’s CAC 40 is up 0.39%.