Financial Market Overview
28th January, 2019
- The Indian rupee came off the day’s high against the dollar in thin afternoon trade, as losses in local shares triggered concerns of foreign fund outflows, limiting gains from broad greenback weakness ahead of the Federal Reserve’s policy review and India’s interim budget this week.
- The rupee changed hands at 71.17 to a dollar, against 71.1750 at previous close. The currency opened higher at 71.00, extending gains to 70.98, before falling to day’s low of 71.1850.
- Indian shares dropped on Monday, dented by financials such as ICICI Bank Ltd and State Bank of India as the IL&FS exposure still weighed, but losses were curbed by gains in Zee Entertainment Enterprises Ltd.
- The broader NSE index was down 0.99% at 10,673.60, while the benchmark BSE index was down 0.92% to 35,695.33.
- Asian markets finished broadly lower today. The Hang Seng is down 0.03% while Japan’s Nikkei 225 is down 0.60% and China’s Shanghai Composite is down 0.18%.
- European markets are also lower today. The CAC 40 is down 0.44%, London’s FTSE 100 is down 0.21% and Germany’s DAX is down 0.40% while Spain’s IBEX35 is down 0.46%.
- The Benchmark Brent crude oil contract fell 1.56% to $60.68 per barrel today, after rising 0.9% in the previous session, on concerns that U.S. production may rise further after a report showed U.S. energy firms added rigs for the first time this year. Fall in China’s industrial profit in December added to demand concerns.
- The dollar index was last trading little changed at 95.85, near two-week low, adding to its losses of 0.8% in the previous session as the Fed’s two-day meeting starts tomorrow, where the authority is widely expected to indicate a pause on its rate tightening cycle.