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Dec 14 2017

Rupee off highs on suspected RBI bids; India’s WPI inflation hits 8-month high

Financial Market Overview

14th December, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee came off the day’s highs against the dollar, as the nation’s central bank likely stepped in to curb the currency’s ascent triggered by the U.S. Federal Reserve suggesting that rates would rise only gradually in the world’s largest economy.
  • The rupee was last seen at 64.30 to a dollar , against 64.43 at close in the previous session. The currency had risen to a day’s high of 64.25, its highest since Dec. 5, before shedding some gains after at least two state-run banks bought dollars, apparently on behalf of the Reserve Bank of India.
  • India’s wholesale price inflation rose 3.93% in November from a year earlier, rising to an eight-month high, government data showed today.

Indian Equities:-

  • Benchmark indices were off the low points and trimmed some of the losses.
  • The Sensex is down 34.72 points or 0.11% at 33018.32, and the Nifty down 13.15 points or 0.13% at 10179.80. The market breadth was negative as 750 shares advanced, 1677 shares declined, while 127 shares were unchanged. Dr Reddy’s Labs, M&M and Tech Mahindra were the top gainers, while TCS, Wipro and UPL lost the most.

Global Markets:-

  • European markets are lower today with shares in Germany off the most. The DAX is down 0.21% while France’s CAC 40 is off 0.17% and London’s FTSE 100 is lower by 0.16%.
  • Asian markets finished lower today with shares in China leading the region. The Shanghai Composite is down 0.32% while Japan’s Nikkei 225 is off 0.28% and Hong Kong’s Hang Seng is lower by 0.19%.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended at a one-week low, dropping 0.7%, after a disappointing consumer inflation data raised concerns that the Federal Reserve may effect fewer rate increases next year. It was last trading flat.
  • Attention turned to Europe’s central bank meetings later on Thursday with the Bank of England and European Central Bank both expected to keep rates on hold.
  • Private sector output in Germany expanded at the fastest pace in more than six-years in December. Market research group Markit said that its Flash German Composite Output Index, which measures the combined output of both the manufacturing and service sectors rose from 57.3 in November to an 80-month high of 58.7 in December, easily beating forecasts for 57.2. The preliminary German manufacturing purchasing managers’ index climbed to a record-high of 63.3 from a final reading of 62.5 in November. Analysts had expected the index to slip to 62.2 this month.