Rupee off lows as BJP set to win Gujarat elections after early jitters

Financial Market Overview

18th December, 2017

Noon Update:-                                                                                  



  • The Indian rupee recouped most of its losses against the dollar, as the trends from Gujarat state-assembly elections reversed decidedly in favour of the ruling Bharatiya Janata Party, which was initially trailing its main opposition Congress. However, dollar strength amid bets that the U.S. congress will pass the long-pending tax reform bill as early as this week weighed on the rupee.
  • The rupee was last seen at 64.1225 to a dollar, against 64.04 at close in the previous session. The local unit had opened at 64.15 per dollar, extending losses to 64.74, its lowest since Nov. 27, before at least two state-run lenders sold the greenback, likely on behalf of the Reserve Bank of India. Exporters’ dollar sales also helped. Most other Asian currencies fell against the dollar.

Indian Equities:-

  • Equity benchmarks remained strong in afternoon as latest elections results indicated that BJP will form its government in Gujarat and Himachal Pradesh.
  • The Sensex was up 242.19 points at 33,705.99 and the Nifty gained 83.10 points at 10,416.50, but were slightly off day’s high due to some profit booking in PSU banks at higher levels.

Global Markets:-

  • European markets are higher today with shares in France leading the region. The CAC is up 0.98% while Germany’s DAX is up 0.92% and London’s FTSE 100 is up 0.57%.
  • Asian markets finished broadly higher today with shares in Japan leading the region. The Nikkei 225 is up 1.55% while Hong Kong’s Hang Seng is up 0.70% and China’s Shanghai Composite is up 0.05%.
  • Japanese exports accelerated sharply in November, yet again pointing to growing momentum in the world’s third-biggest economy. There was just one catch: inflation remained stubbornly low and well off the central bank’s 2 percent target.
  • Data from the Japan Ministry of Finance showed  exports grew 16.2 percent in the year to November, beating a 14.6 percent gain expected by economists in a poll and accelerating from the prior month’s 14.0 percent increase, led by a stellar sales to China and Asia.
  • The dollar index, which measures the greenback against a basket of six major rivals, had ended 0.47% higher on Dec. 15. Top U.S. Republicans said yesterday they expect lawmakers to pass a tax code overhaul this week, with a Senate vote as early as tomorrow and President Donald Trump may sign the bill by the week’s end.