Oct 22 2018

Rupee Opened Flat As Fall In Foreign Reserve

Financial Market Overview

22nd October, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened flat against the dollar amid the largest fall in the country’s foreign exchange reserves in seven years and firm U.S. yields.
  • The rupee is opened at 73.30 versus the dollar compared with its previous close of 73.32. The biggest decline in India’s foreign exchange reserve in seven years suggested forceful intervention by the Reserve Bank of India and signaled that it “probably had enough” of the rupee’s recent decline.
  • Late Friday, data released by the Reserve Bank of India revealed that the country’s foreign exchange reserves fell by $5.14 billion during the week ended Oct. 12 to $394.5 billion.
  • We Expect Pair to trade in the range between 73.75 to 73.15

Indian Equities:-

  • The market is off to a good start to the week, with the Nifty trading around 10,400 mark. Possible fall in crude prices is likely to have impacted the indices.
  • The Sensex is up 342.98 points or 1% at 34658.61, while the Nifty is higher by 96.10 points or 0.93% at 10399.60. The market breadth is positive as 415 shares advanced, against a decline of 99 shares, while 3,044 shares are unchanged.
  • Among sectors, banks are trading strong, while automobiles, energy, FMCG, and metals are trading in the green. Midcaps, too, are in the green, with Nifty Midcap rising over half a percent.

Global Markets:-

  • Asian markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 3.34% while the Hang Seng is up 1.59%. The Nikkei 225 is down by -0.31%. And the australian ASX200 is down by -28 points and -0.48% down.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.32%, while the CAC 40 led the DAX lower. They fell 0.63% and 0.31% respectively.
  • The benchmark S&P 500 stock index slipped on Friday as strong earnings from Procter & Gamble Co were offset by ongoing concerns about rising interest rates and geopolitical tensions denting U.S. economic growth.
  • The Dow Jones Industrial Average rose 64.89 points, or 0.26 percent, to 25,444.34, the S&P 500 lost 1 point, or 0.04 percent, to 2,767.78 and the Nasdaq Composite dropped 36.11 points, or 0.48 percent, to 7,449.03.
  • China’s new home prices increased at a firm pace in September, supported by gains in smaller cities and showing the market remained resilient despite pressures from softer investment, a slowing economy and government curbs on the sector.
  • Average new home prices in China’s 70 major cities rose 0.9 percent in September from a month earlier, slower than the previous month’s reading of 1.4 percent, which was the fastest growth in two years.
  • Asian currencies were mostly little changed amid U.S. 10-year bond yields hovering near 3.20%, while regional equities overcame early losses, following the more than 3% surge on the Shanghai Composite. The jump in Chinese equities comes amid supportive comments by officials.