Oct 31 2017

Rupee marks best month in six

Financial Market Overview

31st October, 2017

Evening Coffee:-                                                                                      

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee posted its biggest monthly gains in six against the dollar, as an increase in foreign ownership limits in local debt drew investments, while the government’s bank recapitalisation plans boosted equities to record highs.
  • The rupee settled at 64.74 to a dollar, its highest since Oct. 16, against 64.85 at yesterday’s close. Most other Asian currencies were also higher. For the month, the rupee gained 0.8%, its biggest monthly rise since April. The rupee, which was the worst-performing regional currency last month, was among the top gainers in October.
  • Data released today showed India’s fiscal deficit in the first half of the current financial year that started Apr. 1 totalled 4.98 trillion rupees, widening from 4.48 trillion rupees in the comparable year-earlier period. Fiscal deficit for the April-September period was 91.3% of the government’s estimate for this financial year. The deficit was 83.9% of budget aim in the same period last year.

Indian Equities:-

  • India’s BSE index edged lower on Tuesday as investors booked profits in recent gainers, but posted its biggest monthly gain since March 2016 after the government announced a plan last week to inject capital into state-run lenders.
  • The BSE benchmark index closed down 0.16 percent at 33,213.13, but gained 6.2 percent for the month, its biggest such gain since March 2016.
  • The broader NSE index ended 0.27 percent lower at 10,335.30. It gained 5.6 percent for the month, its biggest monthly gain in three.

Global Markets:-

  • European markets are higher today as French and British shares show gains. The CAC 40 is up 0.17% while the FTSE 100 is up 0.08%. The German DAX is closed.
  • Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.09%, while Hong Kong’s Hang Seng was off 0.32%. Shares in Japan were unchanged with the Nikkei 225 at 22,011.61.
  • Euro-stat reported that the preliminary reading of the consumer price index rose at an annual rate of 1.4% in October, down from 1.5% in September. Economists had expected an inflation to remain steady at 1.5%. The ECB targets inflation of close to, but just below, 2%.
  • The euro zone economy grew at an annual rate of 2.5% in the three months to September. The euro area economy grew 0.6% in the third quarter, while growth in the second quarter was revised higher.
  • Investors now await the Fed’s two-day policy meeting starting today, where the authority is widely expected to maintain status-quo and hint a rate hike in the December meeting.