May 18 2018

Rupee off lows on likely RBI intervention

Financial Market Overview

18th May, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee came off the day’s low against the dollar in afternoon trade, as state-run banks sold the greenback likely on behalf of the central bank, limiting losses triggered after higher U.S. Treasury yields and crude oil prices.
  • The rupee was last seen at 67.99 to a dollar, from 67.70 at previous close. It opened at 67.77 and fell to the day’s low of 68.04, but trimmed losses after at least two state-run banks sold greenback at multiple levels, likely on instruction from the Reserve Bank of India.

Indian Equities:-

  • Benchmark indices extended losses in afternoon, continuing fall for the fourth consecutive session amid uncertainty over the formation of government in Karnataka and likely widening of fiscal deficit due to higher crude oil prices.
  • The 30-share BSE Sensex was down 204.74 points at 34,944.38 and the 50-share NSE Nifty fell 60.35 points to 10,622.35.

Global Markets:-

  • Asian markets finished broadly higher today with shares in China leading the region. The Shanghai Composite is up 1.24% while Hong Kong’s Hang Seng is up 0.48% and Japan’s Nikkei 225 is up 0.40%.
  • European markets are lower today with shares in France off the most. The CAC 40 is down 0.23% while London’s FTSE 100 is off 0.17% and Germany’s DAX is lower by 0.10%.
  • The U.S. 10-year yield was last at 3.10%. It rose as much as to 3.1280% in early Asia trading, its highest since July 2011. The 10-year borrowing cost has climbed more than 14 basis points this week as a jump in oil prices prompted participants to revise their inflation and interest-rate expectations. The dollar index was last trading little changed, after ending 0.1% higher overnight, hovering near December high.
  • India’s supreme court ordered that a floor test be conducted at 4:00 p.m. local time tomorrow for the Bhartiya Janata Party to prove majority to retain its power in Karnataka state, where it won maximum seats but fell little short from proving majority. However, opposition Congress party and a Janata Dal (Secular) formed an alliance post poll results to prove a majority and legally challenged state Governor’s decision to swear-in the BJP candidate as chief minister.