Jan 14 2019

Rupee Opened Flat Amid Equity, Crude Oil Fall

Financial Market Overview

14th January, 2019

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened little changed after regional equities floundered after last week’s advance, offsetting a retracement in Brent crude oil. The rupee opened at 70.48 versus its previous close of 70.49.
  • The rupee is looking at a week in which risks are poised on the downside. While the rallying Chinese yuan is supportive for the rupee in the medium term, you have oil at over $60 despite Friday’s minor pullback and the continuing global growth slowdown scare notwithstanding last week’s jump in U.S. and Asian equities. India’s December retail inflation data “will possibly have a bearing” this week on the rupee, especially if it surprises on the downside. The data is due after market hours today.
  • We expect USD/INR to trade in a range between 70.25- 70.75 today.

Indian Equities:-

  • Equity benchmarks have witnessed a negative start with the Sensex rising over 103.43 points, while the Nifty opened little negative in its opening trade and trading down 10,800.00 level.
  • The Sensex trading up by 103.43 points and 0.29% at 36113.27 while the Nifty trading down by 0.01% at 10794.40 or 0.60 point down .

Global Markets:-

  • Asian markets are lower today and Hong Kong shares down. The Nikkei 225 is up 0.97% while the Hang Seng is down by -1.62%. The Shanghai Composite is trading little down by 0.56%. Where Australian ASX 200 is down by -12 points negative and -021%.
  • European markets finished lower on Friday with shares in France leading the region. The CAC 40 is down 0.51% while London’s FTSE 100 is off 0.36% and Germany’s DAX is lower by 0.31%.
  • U.S. stocks fell at the open on Friday after rallying for the past five sessions on hopes of a resolution in the U.S.-China trade dispute and assurances from the Federal Reserve that it would be patient on interest rate hikes.
  • The Dow Jones Industrial Average fell 61.91 points, or 0.26 percent, at the open to 23,940.01. The S&P 500 opened lower by 8.53 points, or 0.33 percent, at 2,588.11. The Nasdaq Composite dropped 38.61 points, or 0.55 percent, to 6,947.46 at the opening bell.
  • U.S. consumer prices rose in line with expectations in December, underlining the case for the Federal Reserve to keep its current policy outlook stable. The consumer price index rose 1.9% from a year ago, while core inflation, that excludes volatile food and energy costs, increased 2.2%.
  • Britain’s economy grew at its weakest pace in half a year in the three months to November as factories suffered from tough global trade conditions and the approach of Brexit, official data showed on Friday. Gross domestic product was 0.3 percent higher than in the previous three-month period, down from growth of 0.4 percent in the three months.
  • Output in the UK manufacturing sector fell 0.3% in November, according to figures published on Friday by the Office for National Statistics. The consensus expectation had been for growth of 0.4%. Industrial production fell 0.4% in November, compared with the previous month, below the consensus forecast of 0.3%.
  • The dollar index edged higher on Friday amid the in-line inflation data, but that was not enough to prevent the index from posting its fourth weekly decline.Dollar index 0.1% lower at 95.56, adding to last week’s 0.5% fall amid dovish Fed comments.